Why Do You Need Debt Settlement Companies? 8 Good Reasons To Support

Written by admin on December 5th, 2010

Many financial experts say that it is always easy to manage debt settlement on our own. However, the failure rate is high. In actual fact, settling debt on our own is a challenging task and many of us tend to give up half way. Due to this reason, a settlement company has played more important role in assisting people in debt to overcome debt problems.

Here are 8 good reasons why people in debt need the professional service provider:

#1 Many people in debt don’t know how to determine the settlement amount. Although they intend to reduce their debt, they have no idea how much debt can be forgiven.

#2 Many debtors are not sure what types of fees can be waived by their creditors. They dare not send request. In true fact, many creditors can waive the late charges and annual fees.

#3 Most of the debtors are unaware of their rights as a consumer. They even don’t know what a Fair Debt Collection Practices Act is.

#4 The debtors do not have good negotiation skills. They don’t know what to bargain and how to bargain. Moreover, many people find it hard to deal with their creditors when there are counter offers involved.

#5 In common, the whole settlement process takes about 2 years. Ask yourself carefully, do you have sufficient time to undergo the whole process?

#6 A hot tempered person is not the right candidate to negotiate with creditors. If you don’t have patience to deal with people, you had better assign this task to professional consultant.

#7 Debt negotiation affects your credit score. Hence, for people who don’t have legal background, it is not a wise step to manage your debt on your own as you may miss out some important documents. Without proper documentation, you may put yourself in financial risk.

#8 If your original creditors have sold your accounts to debt collection agencies, the debt negotiation process will become more difficult. Are you psychologically ready to attend to harassing calls?

To sum up, although you need to pay service fee to a debt settlement company, it is still worthwhile to do so as you will have a peaceful mind in life.

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