Debt Of Debt And Debt Essay

1535 Words Jul 11th, 2016 7 Pages
The average American household has over $15,000 of credit card debt. Many of these families are struggling to make the minimum monthly payments, and some are using plastic to cover daily living expenses such as groceries, transportation costs, and medical co-pays. Despite improving economic conditions, more and more credit card users are receiving phone calls and letters from creditors that their payments are past due.

If you have too much debt and stress, now is the time to stop this destructive cycle and get the help you need from a debt reduction program. This article teaches you the principles of debt settlement, one of the most popular forms of debt relief.

What is debt settlement?

Debt settlement--also known as debt arbitration, debt negotiation, or credit settlement--is a debt relief approach where negotiators communicate with creditors on your behalf to settle your debts to reduced and agreed-to amounts. Only unsecured debt-credit cards, medical bills, and personal loans-can be negotiated. You cannot settle mortgages, rent, utility bills, cell phone and cable charges, insurance premiums, car loans, student loans, alimony, child support, taxes, or criminal fines.

Once you enroll in a debt settlement program, your negotiation team opens a trust account for you. You must deposit up to 50% of your unsecured debt into the account over a period of 24-60 months. This money is used to settle your debts with creditors. Because the average debt settlement firm is…

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