How Can We Settle Credit Debt

September 3,2018 by  
Filed under , Living Debt & Credit Free

How can we settle credit debt so we can stop day dreaming about the future without all the collection calls? Having dinner without someone calling right in the middle of it to ask you for money? Can it be possible to settle your credit debt? The answer is yes.You will find though, collectors never discuss this option with you. You can settle any type of credit debt that you have if it has not been paid on for a while or as long as you have not set up payment arrangements with that collector already. In most cases we can settle credit debt without the need of a lawyer to help you. Having different types of credit can mean different types of collections to deal with. There are closed-end loans and revolving loans when it comes to types of credit that can be settled out of court. An installment loan, or closed-end loan, is one that you usually get from a bank or other lender for things like cars or homes. A revolving loan is usually a credit card or an account from a store that offers things like furniture or clothing. For either type of credit, you can settle credit debt directly with them to clear your account and restore your good name.

In order to settle credit debt with a company, you must first make sure that you have not offered, verbally or otherwise, another method of payment. If you have agreed to pay the balance in another method by extension or setting up payments, you cannot settle with them. They have got proof that you gave your word and then will sue you in court for the remaining balance. The only way a settlement is offered is when they lose contact with you and you make no sign of repaying them. Bill collectors are hired by companies that offer revolving loans because they tend to lose the most if not paid. Most revolving loans are made with nothing put down for it. With no collateral backing that loan, they will lose the money that is loaned. When an unpaid loan is old enough and after seeing that it will not be paid for, the revolving loan company may sell this debt to a collection company. Some will hire their own collectors to take care of it, but many sell their debt. If it is sold, it is sold cheaper than the actual amount owed. Then this cost is collected from you with a nice profit for them. You can simply eliminate the middleman, or collector, and pay only the settlement when the original company offers it. This will save you time and money in the long run. Other companies that offer installment loans are easier to deal with. You will notice that they only call you a few times and will only send you late notices in the mail. It is because you have already given them something to use if you don’t pay for it. Most generally, the house or car that you bought will stand for itself. So all they have to do is repossess whatever you bought or what you put up for collateral and auction it off. This will pay off the loan and if it doesn’t, you will be responsible for the rest.

Waiting on a settlement can be good and bad for you at the same time. It can be a way of getting rid of that unwanted debt at a fraction of the cost. Most companies will offer to settle with you just to be able to write your account off. Sometimes you can settle credit debt for less than half of what is owed. But it can also be bad because by waiting them out, you have made your credit history worse.

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