Should You Settle With Your Creditors?

By: Michael Millington

Handling debt relief is a tricky business. Making sure you are doing the right thing with you financial situation is not always the easiest thing to do. There are many options to consider when it comes to achieving debt relief. All of them have the same goal in mind: reaching debt elimination. However, debt settlement is an option that allows for a faster and more complete form of debt resolution. Here are some of the things to keep in mind when considering choosing debt settlement.

 

What Kind of Debt Do You Have?

Knowing whether you can have your debts settled is important when considering debt settlement. There are two kinds of debts that exist in the world: secured debt and unsecured debt. It is important to know what kind of debt you possess so you can know whether you are able to apply a debt settlement program to it. Unsecured debt is the type of debt you will be able to settle, while you normally are not able to settle secured debt.

Secured debt is debt that has collateral behind it. You normally find loans for property (cars, houses, land…) secured by the property itself. If you fall behind on payments for the property, the creditor reserves the right to repossess the property. This type of debt is not able to be settled through debt settlement programs.

Unsecured debt is exactly as it sounds: debt that has no collateral backing it. Credit cards, most bills and some types of loans generally fall under this category of debt. These types of debt rely solely on the debt holder being able to pay the balance off. With no collateral, the creditor takes much of the risk onto themselves. If you have this kind of debt, settling can be a positive solution to help get you on the road to debt elimination.

 

Having Professional Help

The next thing to consider is whether you should negotiate with your creditors by yourself or if you should seek professional representation. Both methods offer distinct advantages in that they can allow you to lower the overall amount of debt you have to pay back. This is the epitome of debt settlement: settling your debts for less than what was originally owed. But dealing with creditors and collectors yourself is a very different process than enlisting a professional debt settlement company.

Trying to handle debt settlement on your own is not impossible, but can be significantly more difficult than through a company that specializes in debt settlement. Appealing to creditors can be harder to do when you are negotiating for yourself. Without a professional background to draw from, some creditors may try to indirectly force you to pay the entire amount that you owe with no regard to what you can handle financially. These are the types of issues that can be alleviated with the use of a debt settlement company.

Enlisting the assistance of a debt settlement company takes the hard part of creditor negotiation out of your hands. The advantage a debt settlement professional has over a regular debt owner is that they constantly deal with creditors on a daily basis. Creditors are more likely to negotiate with a professional than with a regular individual. A professional can approach the situation in a calm and experienced manor. This can be optimal for creditors to deal with and might even lead to quicker settlement decisions.

 

What More Should You Know?

One aspect of debt settlement that creditors might try to take advantage of is your potential lack of knowledge of the situation. Without proper awareness, there are instances where you might be taken advantage of by a creditor. Knowing what type of debt you have can reduce the amount of unreliable information a creditor can give. There is a lot of information that creditors (and debt settlement professionals) have available to them that isn’t readily available to regular individuals.

There is a certain level of protection you’re entitled to if you deal with debt collectors. There are specific rules debt collectors are supposed to follow when looking to collect on a debt. These rules are laid out under the Fair Debt Collection Practices Act (FDCPA). This act strictly forbids any unlawful or extreme collection tactics from being used. This is the type of protection extends in some ways to creditors as well.

This is the type of information you can be provided by working with a debt settlement agency as opposed to working directly with creditors. A debt settlement professional knows everything the creditors know and can negotiate with your best interests in mind. In a perfect world, there would be no need for protection against creditor collection tactics. But having a professional act as your liaison can save you needless aggravation and a lot of money.

 

Nobody wants to deal with their creditors. The experience can be a negative one if you have no idea how to best negotiate your interests. That’s where Guardian Debt Relief comes into the picture. We have the right debt settlement specialists for your specific situation. The first step in regaining control over your finances is putting the right professional in your corner. Give Guardian Debt Relief a call today and receive a free consultation. We can provide all of the information you need to better understand your options. Take the first step and contact Guardian Debt Relief now.