Posted on March 3, 2009 at 7:15 pm Debt Settlement is a very simple process in which you reduce the principle of your balance.You can settle your debts yourself, or you can pay a company to help do this for you, however, it should only be used as your last option before Bankruptcy. If you cannot afford your payments, even through settlement, it should be advised that you file for bankruptcy. When a company settles your debt, you will be paying into their program on a monthly basis. Typically, a settlement does not occur until an agreement is reached, and funds are available to pay off the settlement. While you are paying into the program, as each month passes, your credit will be affected negatively. The while process will take about 3 years or less, depending on how much you can afford to pay into the program. The more you pay, the less time it will take as you will be accumulating funds much faster. It is a grueling process but will get easier and easier with each passing month. Calls from collectors drop dramatically about 45 days into the program. If you stick with the program, you will be completely debt free and will now have the ability to start fresh and rebuild your credit with much more knowledge than before. A good debt settlement company will have years of experience, be highly rated in customer service, will take over communications with your creditor, try to reduce the penalties on your credit report, give you advice on your options, have one contact rep that you will always speak with concerning your account, set up an FDIC insured account in your name in which your monthly payments will be deposited in, and be able to cancel your account anytime hassle free.If your Debt settlement company cannot offer at least one of these, then something is horribly wrong. -Sam

Posted on March 21, 2009 at 9:47 pm I think of debt settlement as a last resort. I would only use it if I have huge loans outstanding and debtors hounding me. So far, I have been able to pay off my debts.

Posted on March 23, 2009 at 8:26 am You have to make sure to select a good, reputable debt settlement company so as to avoid any unnecessary hassle in the future. Don't settle for a dubious or lesser-known one even if it offers more attractive rates.

Posted on March 29, 2009 at 8:39 pm I might check into this process. Very informative article; lays out everything nicely. I like knowing that creditor phone calls will be cut down. Noone likes dealing with creditors by phone.

Posted on March 30, 2009 at 5:30 am it is a hard thing to understand so i will have to concentrate while going through this, it is also very important to me

Posted on March 30, 2009 at 6:23 pm Debt setttlement is a way better answer then bk or consildation or consumer credit counceling. With these you will payback 100% plus interest and it will take you 5 to 7 years. Plus it looks like a third party intervention. This is the worst thing you can have on your credit. So befor you go jumping over board look at the way of settlement because it is faster and less damageing and cost affective..