Why is the figure of $7500 very important when you are talking about a debt settlement? In theory, you can obtain a settlement for debts ranging aroun...
Why is the figure of $7500 very important when you are talking about a debt settlement? In theory, you can obtain a settlement for debts ranging around $3000 or even $2000. However, you should not make the mistake of opting for settlement for such a low amount. The last thing you want is to suffer a negative credit score without any consequential benefit.
For starters, lenders will not be interested in dealing with individual who owes such a small amount. That is not to say that they will not be bothered if you do not repay the same. However, they certainly will not be interested in discussing settlement and waivers for such a small amount.
They will advise you to go in for consolidation or even an interest payment holiday to help you overcome your financial trouble. On the other hand, if you are finding it difficult to make even the small payment and are facing the problem of bankruptcy as a result of this amount, then lenders will see very little benefit in helping you out.
So debt settlement companies may be prepared to help you out to earn their fees. However, the overall savings and the costs that you will have to bear is certainly not worth the effort. In such a scenario, it is advisable to opt for settlement only if you owe debts in excess of $7000.
Even if your credit score does come down, the waiver will help you overcome your debt problems and will help you get your finances back on track. If you have a dozen debts ranging around $2000 to $3000, you should opt for consolidation loan to reduce the same and then go in for a settlement. Or, you should get in touch with each and every individual lender and seek a reduction.
Of course, this figure is not holy writ. There have been instances where smaller amounts have been settled with minimum expenses. However, you should make sure that the technicalities and complexities involved are maintained at the minimum.
To know more about whether you should opt for settlement or not, just log on to the World Wide Web and benefit from the free debt relief resources. You do not have to be an expert in computers to get the information you need. You can allot different tasks to different sources of information. Use debt relief networks to get in touch with reputed service providers. Use TASC and BBB to know which companies are genuine.
If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:
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