Debt Settlement, Debt Settlement Program, Credit Card Debt Settlement - Debt settlement FAQs

How does debt settlement work?

Debt negotiation includes reducing the amount of your total unsecured personal debts through creditor negotiations. Debt Settlement is a process which fundamentally caters to reducing your interest rates. If you reduce your actual debt balance, debt settlement provides a much faster means of becoming debt-free.

How long does the debt settlement process take?

It depends. Sometimes debt settlements are negotiated in as little as a few days. It depends on how behind you are in you’re payments and what kind of money you have set aside to fund any settlements.

Will debt settlement affect my credit score (FICO)?

Yes, most definitely. Usually when in debt, your credit accounts already have, or are, in the process of being reported in a negative manner to all major credit reporting agencies. Depending on how long you have been missing out in your payments, negotiating and settling these debts for good will have a positive effect on your credit score. Settled accounts and or zero balances are seen as "positive" when compared to unresolved debts or a bankruptcy.

Will I be able to get credit in the future?

You can avail further credit in the future, again depending upon your credit ratings existing at that time. It’s recommended to plan ahead for your credit needs and take care of your finances today.

Can I really negotiate my debt with my creditors myself?

Yes, you can negotiate personally if feel confident enough. Most people are skeptical when they hear about "do-it-yourself" debt settlement program. The truth is it’s possible to settle your debt with your creditors once you understand how the process works.

Will I still be able to use my existing credit cards?

No. The banks won’t allow you to use the cards that you intend to settle.

Are your debt settlement products guaranteed?

Yes. A guarantee does exist for debt settlement programs depending upon the company you choose. Some companies offer their guarantee in”writing” while some credit card companies offer it on “indicative” basis. In both the cases some guarantee is available.

Is my personal information kept private?

Yes, your personal information is always “privileged” and kept confidential. In a case involving negotiating settlements for you, however, you would be required to provide Consumer Recovery Network with written, and sometimes verbal, authorization that allows giving and receiving information on your behalf when negotiating your credit accounts with each individual creditor.

Debt settlement programs can work for you. Availing the correct debt settlement facility is the key in organizing your future.