A ideal debt settlement solution is for someone who has overwhelming debt and wants to avoid bankruptcy, but is unable to fully repay their debts due to a legitimate financial hardship. If you can read, you can settle your debts yourself.
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What is debt settlement? A debt settlement is an agreement between you and your creditor to settle a debt for less than you owe. This is typically done in consideration of a legitimate financial hardship, such as loss of income, illness or death in the family, divorce, medical bills or other unexpected expenses.
Will the kit help me with XYZ debt and what types of debt can be settled? The kit will help you negotiate settlements for unsecured debts only. Unsecured debts are those that do not have an asset attached to it. Examples of unsecured debts include credit card debt, medical debt and utility bills. Typically, you cannot negotiate settlements for secured debts, such as home loans, car loans, student loans and title loans because the lender might simply repossess the item purchased with that loan.
Do creditors really settle? Why would they settle for less? Creditors often agree to a settlement when their customer is experiencing financial hardships because it is better to receive a partial payoff rather than losing the account to bankruptcy.
What comes in the kit? Your kit comes with a five-hour audio seminar on five audio CDs, a 26-page workbook that illustrates the concepts explained in the audio seminar and a bonus data CD with helpful resources such as form letters. The CD/Workbook version of the kit is packaged in a convenient and sturdy binder. The digital versions of the kit are available for download in MP3 audio and PDF document formats. See What you get with your kit for more information.
Is this debt consolidation? No. Debt consolidation simply reorganizes your debts from multiple debts into one single debt account, often times through a second mortgage or mortgage refinance. This turns your unsecured, negotiable debt into secured, nonnegotiable debt. So, if you are unable to repay the consolidated debt, you may risk the bank foreclosing on your home. Debt settlement, on the other hand, is simply you negotiating with your creditors for a reduction in the amount it would take to settle your debt. This kit will explain what is required for you to be able to do this successfully and be out of debt quicker than most other debt relief options.
How soon can I be out of debt? This depends a lot on how much debt you have, how much you are able to save and several other factors, like the types and statuses of debts you are trying to settle. Typically, someone trying to negotiate settlements can be out of debt in 36 months or less.
How much money can debt settlement save me? The results we've seen vary, but a typical debt settlement is usually for about half of the outstanding balance of the debt. Of course, this depends on a lot of factors, such as the type of debt, status of the debt and your ability to negotiate effectively, just to name a few. This kit is designed to help you through the debt negotiation process so you can settle your debts once and for all. Plus, if you negotiate your own settlements without hiring a debt settlement company, you won't be paying debt settlement service fees.
How do I know debt settlement is right for me? Typically, debt settlement is ideal for someone who has overwhelming debt and wants to avoid bankruptcy, but is unable to fully repay their debts due to a legitimate financial hardship. A legitimate financial hardship may be a loss of income, illness or death in the family, an expensive medical emergency or condition, divorce, emergency home or automobile repairs and many other situations that create unexpected expenses.
Should I consider bankruptcy? Bankruptcy is a legitimate source of debt relief, and it can really help some consumers get a fresh start in life. However, many consumers want to avoid bankruptcy because of the stigma associated with bankruptcy. If you feel that your financial situation is severe enough to consider bankruptcy, you should speak with an attorney who is licensed to practice law in your state and has experience in bankruptcy law.
I heard that cancelled debt is taxable income. Is this true? Cancelled debt may be considered taxable income unless you were insolvent at the time of the settlement. However, even if you're not insolvent at the time you settled your debt the taxes you would owe amount to only a fraction of the money you will save with the settlement. Tax code changes from year-to-year, so you might want to consult a tax professional or call the IRS if you have concerns or questions about this issue.
Will this help my credit? No. Debt settlement typically has a negative impact on credit. However, this impact is temporary and you can rebuild your credit once you've settled your debts.
Will the kit help me with lawsuits or judgments? The kit does not provide legal advice. The kit is designed to help you negotiate and settle your debts out of court. However, some lenders may be willing to negotiate a settlement even after they start legal action or even are awarded a judgment.
Disclaimer Legal Information Is Not Legal Advice This site provides information about the law designed to help users safely cope with their own legal needs. But legal information is not the same as legal advice -- the application of law to an individual's specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation.
Consumer Credit Counseling Information, Debt Management Plan Information, Debt Settlement Plan information, Credit Counseling, Credit Score, Consumer Credit Counseling Service, CCCS, Bill Consolidation, Credit Repair, and Debt Consolidation is not advice, and we recommend you consult a licensed credit counseling agency, debt settlement attorney, and/or licensed debt management plan administrator in your state if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation.
