Debt Settlement Facts You Should Know About

Author: Dan Delgado

Article:
There are basic facts that should be kept in mind before pursuing settlement on delinquent credit card accounts. Here is a small list of items to analyze before deciding to settle on any accounts.

Reason or reasons as to why account or accounts have become delinquent. The most valid are loss of income or physical disability due to job loss or a medical situation. This is called a hardship, and they are probably the only two valid reasons creditors, collectors, and lawyers will keep in mind when offering any type of settlement or payment plan on any one account. Any other reason different to the two given above will most likely not hold any water when it comes to negotiating on any account or accounts.

Current income. If you are working and have a weekly income coming in be prepared to share this information with your creditors, collectors or lawyers. Many times the company or agency collecting on any delinquent accounts will ask for pay stubs or a financial statement before settling or coming to terms on any account or accounts. If by any chance you are making a decent living, be prepared to be offered relatively low settlement offers or none at all. In the worst case scenario be prepared to have wages garnished.

Money in the bank, pension plans, etc... If there is money under your name in bank accounts, pension plans, etc.. be prepared to have this information disclosed. Lawyers are specially good at finding out such information and attaching or freezing those hard earned dollars.

Assets such as property are specially looked at. If there is equity on property that may be owned, collectors, creditors and lawyers will push hard for some of this equity to be cashed in in order to repay the debt. In the worst case scenario be prepared to have a lien placed on any property owned.

The above information is essential when it comes time to even thinking about joining a debt relief agency and negotiating on delinquent credit card debt. Everything is looked at before a settlement is offered on any account. My advise is if you meet any or some of the points listed above, do not negotiate on your debt unless you absolutely have to. Make sure there is a valid hardship, with out one chances are the savings most expect will not be reached. If you contact relief agencies and they tell you the points above do not matter and say they can still help you out, BEWARE, they are lying to you. Do your homework before deciding to go the debt settlement route, it is not always as sweet or easy as promised by debt relief companies that are only looking to take a bite out of your hard earned dollars.

The above information is intended for educational purposes for those looking to seek debt relief.

About the author:
Dan Delgado is currently a debt settlement negotiator, he has over five years experience negotiating personal as well as business debt. For more information please visit www.pemperandgartle.com

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