Thanks to debt settlement programs, there is a way out of the maze that is called debt. With this blog post, I’ll take you on a quick tour about what makes debt settlement programs your one-stop solution to all your financial problems. Soon enough, you’ll be worry-free!
So, what is a Debt Settlement Program and is it worth to try?
The answer is YES. It will also prove to be a very humbling experience. Since the debt settlement company will be putting a magnifying glass on your personal circumstance, this will be a very valuable learning experience for you when it comes to dealing with your financial concerns.
Nowadays, you will notice that debt settlement is gaining much popularity and acceptance, coming on top as the most preferred debt relief route to people around the world. If you’re still in doubt, here are three reasons why you should consider debt settlement programs to be the answer to all your debt problems.
1) You don’t have to file for bankruptcy, get credit counseling, or resort to debt consolidation just yet, therefore giving you more options along the way.
2) Not only is it cost-effective, but also a fast and secure process.
3) What’s even better is that debt settlement companies will not require your valuable assets as collateral.
What happens in the Debt Settlement Process?
Considering that the debt settlement process is foreign to some, I will take you on a quick journey about how everything falls into place. You’ll notice that it’s a step-by-step and meticulous process that required the participation of both debtor and the debt settlement company. Pay attention to all the details listed below.
Everything begins after an agreement is met between the client and the attorney assigned to the consultation. You will encounter 3 vital lists that will start the intricate process of wiping out your debt:
The Three Lists
1) The complete list of all the creditors and the corresponding amount which they are owed. This includes both secure and unsecured loans.
2) The complete list of monthly expenses or living items such as rent, budget for groceries, gas allowance, laundry services, miscellaneous expenses like going to the movies or eating out, and other utility bills.
3) The complete list of all your monthly income and where it comes from, whether these are from consultancy fees, salaries and wages, bonuses, and the like. All revenue streams, whether formal or otherwise, shall be included in this list.
What’s next is the most interesting and seemingly easy part.
After compiling the list, the next step would be to apply the simple formula below:
Subtract the total cost of living from the total monthly income, less the amount of secured loan monthly payments.
The remaining amount will be the money available to service your debt.
Of course, it doesn’t have to end there. As a debtor, you have a few things to keep in mind after the formula has been applied to your expenses.
- You should be at ease with this amount, in the sense that you are going to be capable of shelling out the money on a monthly basis.
- You should feel at ease with the amount without having to sacrifice your human dignity. Although this a debt settlement program is a hardship plan, the objective is to remedy the situation slowly but surely without making the debtor client suffer.
After that, what happens now?
The amount approved by the client will now be in the debt settlement company’s hands. Then they will present the debtor’s financial statement to the creditors – along with a debt settlement plan that will be executed in a certain period of time.
a) 40-46% reduction in the total amount of debt owed.
b) A comfortable amount of monthly payments.
c) No interest rates.
d) No late fees.
However, for the plan to be absolutely effective, the creditors needs to approve it, and give notice to the debtor that said plan has been approved. Now that you know that the debt settlement company will take care of you, the debtor, what are your responsibilities?
A vital partnership
Surely, the debt settlement program would fail if the debtor is not serious about paying off his or her debt. Hence, the following should be observed at all times:
1) Deposit your monthly payments to your secure account.
2) Keep track of all your payments to the debt settlement company as specified in the debt settlement plan.
3) Ensure all your monthly payments tally with regular reports submitted by the debt settlement company—as well as the running balance of the debt is still outstanding.
If you do your part, you should worry no longer because the debt settlement company would be in charge of the following responsibilities:
1) Remit payments made by the debtor to the creditor, regardless if this is a one-time lump sum payment to completely settle a debt. This could also be a series of monthly payments over a period of time.
2) Act as liason between debtor and all his creditors.
3) Provide regular reports to the debtor containing the dates and amount of payments made to creditors, which should also include the outstanding debt balance.
Don’t let the stress and difficulties of paying your debt hamper you from living your life to the fullest and let Financial Rescue LLC help you deminish your debt! You know that once the target has been achieved, a newly found friend awaits you and your family! Call 1-877-97-DEBTS now!