Debt settlement negotiation is something most consumers would do if they need help with their credit card debt. However, there are some important differences between debt settlement negotiation and debt settlement services provided by a debt settlement service. For starters, when you hire a debt settlement service, you are typically entering into a contract. This contract requires that you pay a fee to the debt settlement service in order to use their services. At the same time, you will be required to repay them in a certain amount of time. The big difference between DIY debt settlement negotiation and professional debt settlement services is the length of time the process will likely take. Working directly with a debt settlement company may take 3-5 days to negotiate your debts down to an affordable amount. If you do not get the results you want, then you will be required to hire another company to help you get your creditors to stop paying you. On the other hand, if you use a debt settlement company, the negotiations can occur as quickly as you like. You do not have to wait for weeks or months in order to have your creditors stop paying you. Another difference between debt settlement negotiation and a collection agency is how you will be notified of what is owed. If you work directly with a debt settlement company, you will receive a letter from them informing you that you owe money to them. The letter does not tell the collection agency to come and collect the money; it tells the collector that you are seeking legal action against the individual who owes the debt. With a debt settlement, you will be required to pay a lump sum payment. This lump sum payment is based on the total amount owed. This lump sum payment is made to the collection agency so that they can pay the individual who owes the debt. The amount will be held in an account until you have a settlement. At that time, the account holder will send you a check for the full amount owed. A good thing about debt settlement companies is that they do not require you to make monthly payments. You are not required to wait for several months to settle the debts that are owed to you. Rather, once you have reached a settlement, you simply send a one time payment to the debt settlement company. If the individual still refuses to settle the debt, you can continue to send the lump-sum payment. This keeps both you and the collection agency on good terms. For these reasons, view here for more info on how to negotiate with debt collectors. If you find yourself in this situation where you are unable to pay off a debt, it may be worth speaking with an attorney to see if you can get more involved in negotiations. Most debt settlement companies will be able to work out some kind of agreement that will help you settle the debts that you owe much money to. Of course, this all depends on how much money is actually owed. You may end up paying hundreds of thousands of dollars or even millions of dollars. For this reason, you need to be very careful about choosing a debt settlement company that will negotiate the debt. Here is an alternative post for more info on the topic: https://en.wikipedia.org/wiki/Debt_consolidation.
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