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The Pros And Cons Of Debt Settlement

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Many people may find themselves in the financial position of having more debt than they can realistically pay with their income. There are several reasons people get in over their heads in debt and some of these reasons are good for getting debt settlement. The best way to start reducing the amount they have to pay is to send a debt settlement agreement letter to their creditors. The letter needs to clearly state the hardships that have caused the debtor to be unable to pay his or her debt. The person will not be successful in reducing his or her debt if they say they made too many purchases and now they can’t pay for them. There are several legitimate hardships for getting behind on debt payments including:

• Illness or injury that precludes …show more content…

Most creditors are happy to receive some payment rather than no payment. If there is no debt settlement offered, they creditor will have to hire a collection agency or even go to court, both of which they would like to avoid.

If the letter is courteous and polite, and offers a good reason for settling the debt, there is a good chance it will succeed. Some debts are past the statute of limitations and the creditor will be happy to get anything.

Here are some tips for writing the debt settlement letter:

• The letter should on one page. Any longer and the creditor may not read it all. If the letter contains the debtor’s hardships that caused them to stop paying their debt, the hardships should be briefly stated

• The debtor should give their financial information. This means the exact amount of unsecured debt, the amount of income and the amount the debtor is willing to

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