Settling your debts may seem painful when you start seeing the numbers on your bills, but putting off paying your debts can be even worse. It’s a good thing that there are debt settlement companies out there willing to help you settle your debts. Many of these debt settlement companies are online, with hotlines available around the clock.
Often, the reasons for large debts are due to unforeseeable circumstances: family emergencies, loss of an income-generating family member, or simply job loss. Under these kinds of situations, debt settlement can be your friend.
If done right, debt settlement can reduce unsecured debt by at least 50%. When you apply for a debt settlement program, your disposable income will be saved in a “special purpose” account. When the money you put into it accumulates, your debt settlement company will negotiate with your creditors (one at a time) so you can you pay off an amount less than your original debt. This is then is repeated with each of your creditors.
But you must be thinking, why would my creditors take only my partial payment? The answer is that your lenders don’t want you to go bankrupt. They’d rather receive partial payment than nothing at all.
