Are you struggling with consumer debt, and you find it difficult to dig your way out of this? You are not alone; you are one of the millions of Americans dealing with consumer debt. Creditors/debt collectors call consumers to follow up on their debts more than one billion times per year, which is about 15 calls made per day per account.
While some consumers can figure out a way to pay off the debt on their own, there are programs that can expedite the process. There are several ways to pay your debt, and one of which is through debt negotiation.
How does debt negotiation work?
Debt negotiation is considered an alternative to filing for bankruptcy; the process involves relieving your debt through negotiation. The aim is to come to an agreement with your creditors to pay a part of the debt you own and have the rest forgiven. Generally, debt negotiations are used for unsecured personal loans, credit card debt, and collection accounts.
Though you can try to negotiate on your own, you will likely need the assistance of a debt negotiation company for large debts. There are two general types of debt negotiation - a term or lump sum settlement.
Type of consumer that may consider a debt settlement plan:
While any consumer can apply for a debt negotiation plan, this process is meant for those with a significant financial hardship that prevents the consumer from paying off on his or her own.
Types of accounts that qualify for debt settlement?
Generally, unsecured debts qualify for this plan. This can include credit card debts, personal loans, collections accounts, medical bills, and other unsecured debts. On the other hand, debts that don’t qualify for debt settlement usually include secure debts. Some of these include mortgage loans, car loans, federal student loans and overdue taxes.
Debt negotiation may be your best option, if you have accumulated considerable debt, and are dealing with a financial hardship. If you are looking for a company to help you with debt relief NY, including debt negotiation, contact UmbrellaDEBT!Debt Relief NY