Debt settlement is great for someone who’s struggling with excessive credit card debt. But why sign up for the Gateway Debt Relief program if you don’t know how the service works? At Gateway Debt Relief, our first goal is to educate our customers on how debt settlement works and walk them through the process of settling their debt and rebuilding their credit profile. Here’s a great breakdown of how our program works, and hopefully, you can determine if a debt relief program is exactly what you need!
Debt settlement is a process where a debt negotiating company or debt settlement agency negotiates a business or an individual debt with his or her creditor to settle an amount lesser than the original debt owed.
In carrying out the debt settlement process, the debt company will ask the debtor to contribute a percentage of the debt, which will be paid to the creditor as a lump sum if settlement is agreed. Some settlement companies can help save up to 40% of the total debt owed. Once you become a client of Gateway Debt Relief, we’ll work to get you the best settlement percentage of any company in the business!
For a creditor to agree to any settlement terms, they must be convinced that a debtor cannot repay the debt they owe. The best way they can confirm this is if the debtor is behind in payment. This can be very bad for the debtor because it will appear on his credit file that he is not meeting up with his payment.
Is A Debt Settlement Service Right For Me?
People keep wondering if debt settlement is right for them. The fact is, debt settlement is right for people based on their circumstances. You want to carefully consider your financial circumstances and any future financial commitments before you go for a debt settlement program.
For your creditors to accept settlement terms with your agency, you must be behind in your payment and be able to prove to your creditors that you are in financial difficulties and can’t meet up with your payment.
If your creditors are convinced, they will agree to a settlement term with your agent. You may be able to save up to 40% of your total debt. You can pay off a significant amount of credit card debt and start fixing your FICO score!
The problem with a debt settlement program is that when you are behind in your payment, it will appear in your credit record as a missed payment. Not only that, but you’ll default on your credit card payments and your lenders can attempt to collect on the debt. That means they can threaten to garnish your wages and try to collect your debt in other ways you may not want to deal with. When a settlement term is agreed upon, and payment is made, it will appear in your credit record as settled as agreed.
The fact that you defaulted and settled your debt will remain on your credit record for a long time. In the future, it can discourage creditors from giving you credit facilities.
This does not mean that a debt settlement program is a poor option. As mentioned earlier, it depends on your situation, as a debt relief program can be a great option for anyone who’s already behind on their bills, as there’s no real difference from that with a debt negotiation. If you are heavily indebted and looking at the option of bankruptcy, then it would be better to avoid it through a debt settlement program.
Will A Debt Settlement Program Help Me Become Debt Free?
If you work with a debt relief program such as Gateway Debt Relief, Yes you can get out of debt quickly. This depends on whether you meet their requirements, follow the program instructions, and pay off your debt according to the quoted terms. Debt settlement is not for everyone, and it can be a tenuous program if you’re not behind on your payments or are having no trouble making the required payments. In this case, it’s probably best to continue making your payments and consult a credit counseling company to see if they can lower your interest rates.
Note that debt settlement is not total debt cancellation. You still have to pay a percentage of your debt. In most cases, we can settle your debt for at least 20% of the amount owed, and sometimes those settlement amounts can be much higher. Gateway Debt Relief is here to help our customers become debt free in the fastest timeframe possible. Call us at 888-560-0132 to see how much you can save with our debt reduction program!