When considering ways to reduce or eliminate your unsecured debt, one of the solutions to achieve debt reduction is through a process called debt settlement. Debt settlement is accomplished with a mutual agreement between the debtor and creditor, and is typically facilitated by an authorized third party. If you live in the San Diego area, we at Debt Support Center, Inc. can assist you with your debt settlement needs in one of our local offices or over the phone. After a brief consultation, we can start exploring the best course of action for your debt relief needs.
How Does Debt Settlement in San Diego Work?
While it can be a new concept to consumers, the debt settlement process is rather straight forward once you understand how it works. Essentially, an authorized third party approaches your creditor with an offer to settle your debt. The two most common ways the offers are accepted are through a lump sum payment for a discounted amount of the original debt amount, or by establishing a monthly payment for an agreed upon amount and term. In most cases, these payments or “set-aside” amounts are safely preserved in an escrow-like account until a sufficient amount has accumulated. Your creditors are then approached by the San Diego debt settlement company and a reduced “settlement” is secured on your behalf. The amount is dictated by a variety of factors, and your debt counselor will explain this in detail during your consultation.
Since the recession hit the San Diego area, some people are finding it increasingly difficult to pay credit card payments, bank loans, and personal loans on time. In most cases, it is possible to reduce your debt and achieve significant savings through debt settlement services. Debt settlement companies like ours can help you navigate the negotiation and settlement process to avoid unnecessary challenges and mistakes that less experienced companies often make. If you’re considering your debt relief options, we’d be glad to speak to you today.
Advantage & Disadvantages of Debt Settlement in San Diego
As mentioned before, the process of debt settlement is to ensure both the creditor and debtor come to a mutual agreement on settling the debt as quickly as possible. When this is achieved, both parties enjoy a favorable resolution which is documented to ensure that you can move on with your future. Using a qualified and experienced debt settlement company in San Diego, you may be able to reduce your debt quickly, and finally experience freedom from the debts that have followed you for years.
Before you choose to start the debt settlement process, it is important you understand the advantages and disadvantages of hiring debt settlement companies in San Diego:
- You do not need to file bankruptcy to resolve your debts
- You do not need a large up-front payment to begin your program
- Your debt settlement company in San Diego will guide you through the steps
- You may be able to reduce your unsecured debts be a large percentage
Debt Settlement can be a viable option for the right situation, however, choosing an inexperienced company to facilitate your program can cause you a lot of difficulty and frustration. some of these disadvantages are:
- Prolonged credit damage can result
- Future problems may persist if resolved debts aren’t documented properly
- Insufficient funds to reach negotiated amounts due to improper planning
- Poor customer service that leaves you without answers when you need them most
- Inexperience in responding to creditor demands that are inevitably part of the settlement process
Debt Support Center stands out as the leader among debt settlement companies in San Diego. We work relentlessly to achieve the best possible settlement options and payment amounts for each and every one of our clients. If you need a debt settlement company in San Diego, please give us the opportunity to earn your business by speaking with us about your debt settlement needs today!