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Debt
Settlement – Our Website www.takethiscardandshoveit.com
Debt Settlement is an aggressive
approach to debt reduction which is appropriate for clients with a
serious amount of debt relative to their ability to repay it and who
cannot or do not wish to refinance their debt into their home and
may be considering filing bankruptcy.
Anyone with greater than
$7,500 in unsecured debt qualifies for
our professional debt
negotiation and affirmation services.
There are no income
requirements in the application to this program and is not based on
your credit score, credit history, job history or your house or
other assets.
If you're knee deep in debt, cannot pay
your bills and wish to avoid collection calls, you may consider debt
settlement (also known as debt negotiation). This is when you
negotiate and reduce the outstanding debt by 40-60% of the amount
you owe. The creditor forgives the remaining debt thereby helping
you to get out of debt faster.
5 Benefits of debt settlement (or credit card debt
settlement)
Whether you go for credit
card debt settlement program, or settlement on personal loans,
payday loans etc, you get the 5 benefits as given
below.
1.
Avoid
bankruptcy: With debt settlements, you can reduce your debt burden
and pay off bills comfortably. You can negotiate with the creditors
or collection agency (CA) and settle your debts for as much as you
can afford to pay. Thus, you don't need to file
Chapter 7
bankruptcy. There
are chances of losing your home or car in bankruptcy wherein your
assets are sold off to pay your
creditors.
2.
Single
payment: Instead of paying multiple bills each month, you'll have to
make a single monthly payment to the settlement company. The monthly
payments are accumulated in a trust account in order to be paid off
to your creditors after negotiation. So, you can avoid the stress of
paying debts at different rates and dealing with several creditors
at a time.
3.
Avoid
unfair collection practices: You can avoid unfair collection
practices and harassment by debt collectors if you negotiate a
settlement.
4.
Eliminate
extra charges: The settlement company can try and eliminate late
payment fees, if any. Any over-the-limit fees on credit cards can
also be minimized or eliminated by way of
settlement.
5.
Avoid
lawsuit & other legal actions: Creditors can file a lawsuit, get
a judgment order and garnish your wages or place lien on your
property depending which state you reside in.. You may be able to
avoid such legal actions if you're in a settlement
program.
How settlement (or credit card debt settlement)
works
Debt settlement companies
offer a settlement program wherein they negotiate with your
creditors in order to settle the debt for less than what you owe.
The companies charge a fee for their services that are included in
your monthly payment to the trustee. Given below is an example of
how debt settlement or credit card debt settlement
works.
How credit card debt settlement
works - An exampleLet's say Joe owes a total debt of $100,000 on 5
credit cards. He is finding it difficult to keep up with the minimum
payments. He has earlier consulted a credit counseling agency but
the monthly payments they negotiated with his creditors were too
high for him to pay. Joe doesn't want to file bankruptcy as he does
not want to involve the court. So, finally Joe ends up working with
a credit card debt settlement company XYZ. Here are the 4 steps on
how Joe could settle credit cards and pay off her
dues.
1.
Stop
payment to creditors: The representative at the credit card debt
settlement company asks Joe to stop paying his creditors and deposit
a certain amount monthly into a savings account (i.e. a trust
account that XYZ creates for
Joe).
2.
No more
handling of collection calls: While Joe starts falling behind on his
payments, he may receive collection calls, which are effectively
handled by the representative. Joe doesn't have to handle such
harassing calls on his own.
3.
Debt is
reduced by 40-60%: Finding that Joe won't be able to pay enough, his
creditors agree to accept a reduced amount, say around 40-60% of his
outstanding bills.
Debts you can settleCredit card debt
settlement is quite common. Other than unsecured credit cards,
medical bills, gas/store cards, personal loans etc can also be
settled. But tax debts, alimony, child support, mortgages, car loans
and federally insured student loans are excluded from a settlement
program.
How long it takes to settle debtsIt
usually takes 2-4 years to complete a credit card settlement program
or settle personal loans, medical bills and other dues. The period
of completion depends upon your total debt amount.Creditors may not
sue after settlement
Once you negotiate debt settlements with
your creditors, they may not come after you for the balance. It is
illegal in many states such as Arkansas, Texas, Georgia, Michigan,
Washington etc. However, in other states such as Alabama, Delaware
etc, the creditor retains his right to sue you under certain
conditions.You may owe taxes
Once you go for credit
card settlement or settle other debts, creditors will forgive a
percentage of what you owe. This forgiven debt, known as
cancellation-of-debt (COD) income, is taxable as per IRS
guidelines.
How to choose the right debt settlement company for
you.
In order to find out who
you can Trust, you need to be sure they are at least an Accredited
Member of the Better Business Bureau. This means they have a
business history and are subscribers to the BBB code of Trust which
means they have no outstanding complaints or in many cases have
never had a complaint. Also the background of the person you are
dealing with should be made available to you upon your
request.
Goto0urWebsite:
www.takethiscardandshoveit.com
this site has an
informational video that will answer many of your questions and a
calculator to compute how much you could save using our debt settlement program. Please call us
with any other questions at
1-866-404-6121. |
