Are you a self-confessed shopaholic who buys anything and everything that you get your shopping dependence of the hands of these thoughtless and impulsive buying will most likely result in an accumulation of a pile of junk that will simply gather dust. Can you even remember that silk scarf you just had to have, and it was a virtual steal at 50 percent of you just have to buy it where it is now and how many times have you actually used it, it is still in vogue.
If you are like most people, chances are you have to rummage through bins and containers of collected shopping litter that you have accumulated through the years, just to see that once precious scarf. You may still be in a state of denial by saying fashion goes round and round and that scarf will have its shining moment once again.
Unfortunately many people fall into this mode of impulsive buying that they really can not afford and before they know what they are saddled with debt. If you fall into this category, you will soon have to learn a thing or two about debt settlement which can help you to extract themselves out of that, although introduced in the financial trauma and begin to start rebuilding your life bit by little. And time to start now, you obviously have to be honest with yourself, admit that you have a serious problem, debt and so humble yourself enough to seek the help you need to pull yourself out of this devastating ordeal.
First things first, a lot of people may actually think they only have a few choices when it comes to solving their debt problems. The two most common options for those who are burdened with huge amounts of debt are either to consider declaring bankruptcy or debt consolidation. Unfortunately, if you take the easy way out by declaring bankruptcy, it will leave an embarrassing and indelible mark on your credit report up to 7 years, which will result in higher interest rates, less credit and if you try qualifying for a mortgage Some lenders do not give loans immediately after bankruptcy, you will most likely not be able to get a loan to cover 100 percent of the funding you need. Normally a 80 percent first mortgage, and if you can get a new loan, it will be much higher rate, and probably only 10 percent of loan value totaling 90 percent of the loan to value, and you'll have to come up with 10 percent down.
It is clear that it will all come with a higher price for a period but you will need to balance it with a straight debt consolidation solution, where you pay your debts. But in many cases you can negotiate with debt collection and it is realistic to get 25 percent, 50 percent of the forgiven debt if you can prove that you will continue to make monthly payments until the remainder is paid.
Many debt relief debt consolidation company was actually established by credit card companies themselves. Why, you ask. because it only makes sense for credit card companies to help you pay your debt because they can either forgive some debt or lower interest rates, lower monthly minimum payment requirements or a combination and receive a portion of their claims or receive any if you declare bankruptcy. What would you do if you were in their shoes, the answer is obvious. This is why a lot of people who have been saddled with debt, is now being offered debt settlement. Clearly, not all debt consolidation service companies, owned by credit card companies, but many are.
Some groups offer debt settlement programs through arbitration. The selling point when it comes to this kind of solutions is that debt settlement will actually help end your debt problems without having to go through bankruptcy, without having to pay overcharged debt consolidation program fees as well as help you avoid being caught in the debt consolidation trap that a lot of people have fallen victim to.
In many cases, the organizations, what does that offer debt settlement services is negotiate your debt down with debt collection agencies who have received your case. I would urge you to contact several companies to ensure you feel comfortable and that you are working with a quality company that does not charge a fee for their services.
On the other hand, if you really want to save money, which only makes sense since you are already heavily in debt ... then negotiate with the collection itself. It is not difficult, rather than getting upset, when you get called night after night simply tell the collection rep that you want to pay your debts, but you can only do it if you can get it reduced and then ask them that you want to get the debt you owe reduced by 50 percent, 60 percent, even 75 percent, and ask them to see what they can do. Ask for a lot up front because as in any negotiation there is always a give and take. Believe me, they will go to work for you and your offer will be seriously considered because they only get paid when they collect, and it is better to get their share of a smaller amount than lethal squat on the full amount.
Of course you will have to decide which path you will take bankruptcy versus debt settlement but shop around and realize that you have options. The Internet is full of companies offering their bankruptcy or debt settlement services, but be careful and do not let them push you around and never work with someone you do not feel 100 percent comfortable with.
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