Debt settlement, also called debt negotiation, is a method of debt management in which an agreement is reached with a creditor to accept an amount less than the full balance as payment in full on a debt . It is often used to eliminate unsecured debt, a debt that is not related to a property.
The most common type of unsecured debt is revolving debt credit card. Credit cards allow the person named on the card to load (now financially responsible) for goods and services. With revolving credit, you can make the cost up to a pre-established credit? Limit.? As money is repaid, it can be borrowed again.
debts that are related to the property as a golf car, a refrigerator, a home or vacant, are secured debts. When you default on a secured debt, the loan company may take possession of your property and sell it. Money from sales is used to pay the loan balance.
The most common form of secured debt in real estate is the privilege. A Lean is an action that gives the creditor the right to take and hold or sell the debtor? S well. Links are removed when the debt is settled.Procedures for other types of debt are personal property contained in the Uniform Commercial Code (UCC). This statue includes forms and documents public deposits that can be used to establish the creditor? Interest in the property.
secured debtreduce the financial risk of the creditor (the person or company who extended credit and who is owed money). This is why secured loans tend to have lower interest rates and financing terms that best unsecured debt.
Peopleundergoing long-term loss of income for whatever reason, are good candidates for debt settlement of unsecured debt and revolving credit card. It can be a very advantageous solution for resolving debt problems.
___________________________________________________________Chris Scully is a consumer advocate for ethical debt settlement and credit repair practices, personal finance expert and blogger (http:// www.mymoneymess.com), and author of “The Survival Kit debt.” You can contact Chris at cscully@mymoneymess.com.For ~ ~ = HEAD NNS more than two decades, Chris has used his extensive training of managers to successfully manage small businesses and nonprofit organizations. It is also a licensed real estate agent selling with people of firsthand experience in helping families qualify for mortgages and home financing. A debt settlement and self credit repair expert, Chris has spent hundreds of hours scrutinizing both industries, and conduct extensive legal research to find the most effective ways to deal with debt problems and credit . Chris has also developed relationships with dozens of bank executives, collection agencies and law firms across the country on his personal mission to help people not only survive but thrive during tough economic times. Chris is a consumer advocate for ethical debt settlement and credit repair practices, and author of “The Survival Kit debt.” You can read his blog personal finance and money management to http://www.mymoneymess.com.
