Once you’ve made the decision to take part in a debt settlement program, there are a few things you can do to optimize and improve the experience. If you are making monthly payments, make sure you stay on top of them. If you miss a payment the entire process is delayed, increasing the chances that creditors will sue you for lack of payment. Also, if you can, try to pay more than you are required. This will speed up the process of debt settlement because the firm will have more money to negotiate with, and will be able to negotiate with your creditors sooner.

Communicate with your Debt Reduction Attorney or company on a regular basis so that you know what’s going on with your case, and to catch any possible problems before they enlarge. If you make communication a habit, it will be much easier to maintain in the face of a problem. Most importantly, make a serious commitment to financial change and discipline. Without this key component, a debt settlement may be a temporary solution rather than a long term one.

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Debt Settlement Debt Reduction Eliminate Debt

Because debt settlement will not work for everyone, here are a few qualities that make someone a good candidate.

• You owe $10,000 or more

• You have a lump sum of money available to settle your debts (from a friend or family member, a loan, savings, etc.), or the ability to pay a large amount into a trust account on a monthly basis to be used to settle your debts once enough is saved.

• Your debt is mostly unsecured debt, meaning there is no collateral involved. This kind of debt – credit cards, medical bills, bounced checks, etc. – work better for debt negotiation.

• You have an explanation for high debt that you cannot pay. Maybe you lost your job, faced a family emergency or death. Or maybe your interest rate was raised, or other fees were added to your debt.

• Most importantly, you have a strong long-term commitment to becoming debt free. Debt settlement is not usually a quick process, and if you are not willing to commit to financial discipline during and after your debt settlement, you may find yourself in a situation far worse than when you started.

The truth is in most cases it is better to use the services of a professional debt reduction attorney to help you settle your debts for much less than you owe. Steve Craig is a colorado debt reduction attorney who can assist you in getting a favorable settlement of your debts.

When seeking a solution to debt relief, you have many different options. Consumer Credit Counseling Services, debt consolidation loans, bankruptcy, and debt settlement are the most common. Of course each one has its own unique pros and cons, and each one will benefit some individuals more than others; there is no single debt solution.

Some of the disadvantages of debt settlement are:

• Unlike in declaring Bankruptcy, you have to legal protection, meaning you can be sued by a creditor for failing to make payments. If this happens while you are in a debt settlement program and you do not have enough funds in your trust account to immediately settle the debt, you may have to file for bankruptcy.

• Also, debt settlement has an unavoidable negative impact on your credit score. This is due to the fact that while in a debt settlement program, you stop paying your creditors.

Some of the advantages of debt settlement:

• Unlike in Consumer Credit Counseling or a debt consolidation loan, both of which require you to pay back your debts in full, including interest, in a debt settlement, you only pay a percentage, usually around 50% to 70% of your debt, including fees.

• Debt settlement, while negatively affecting your credit during the process, leaves no permanent scar on your credit history like filing for bankruptcy does.

• Also unlike in bankruptcy, in which your credit history is paraded about in a courtroom, debt settlement is private.

• Finally, debt settlement is a more rapid way to achieve debt relief than your other options. It can take as few as 4 months, but definitely less than 2 years. Credit counseling, and bankruptcy take 3-5 years on average to get you out of debt.

Not everyone will benefit from or even qualify for a debt settlement program, but checking with a debt settlement firm is the first step to finding answers.

Debt Settlement Debt Reduction Eliminate Debt