Thursday, December 16, 2010

Debt Settlement Basics

Debt Settlement

Debt settlement can be defined as resolving distressed loans and debt through a pay off agreement between both creditor and borrower. Typically the debt to be payed is drastically reduced and the new reduced amount is paid immediately in one large payment.

Settling debt and financial obligations is a great way to get rid of unsecured debt that has accumulated from credit cards and or other high interest unsecured debt that one may have.

Who Performs or Negotiates a Debt Settlement Agreement?

A debt settlement agreement must be approved by both the lender and the borrower. As this would imply all that is needed for a person overwhelmed with credit card debt is a means to contact the lender as well as a lender willing to settle.

However many consumers have been known to hire debt settlement firms and or debt settlement lawyers or debt settlement counseling agencies or even a friend better suited to to do so. Having said this there is no reason what so ever that you should not partake on this task on your own if you feel you are able to so adequately enough.

You can successfully obtain a debt settlement arrangement all by yourself if you are willing to put in the time and effort. Prior to this post I posted a DIY article outlining how to settle credit card debt. If you are interested in getting rid of credit card debt than that may be a helpful resource and worth taking a look at.

I also wanted to make sure that everyone realizes that negotiating with credit card lenders is no easy task and should be given considerable consideration and effort.

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