The debt settlement loan system is a very different method of lending. Many people confuse it with bankruptcy, but really the two methods are quite different. There are some significant advantages and disadvantages to both these systems, but for this article, we will explore how to get a debt settlement loan.
This blog post will provide you with five simple steps on how to get a debt settlement loan in order to avoid bankruptcy and deal with your debts in a more manageable and organized fashion. There are various debt settlement lenders out there, but most of these lenders will work with individuals who are struggling on how they will be able to repay the money they owe on their debts.
You can find many debt settlement loan companies online, but finding the right one is your first step in the process. There are some key elements that you need to look for in a debt settlement lender that you can check online.
- The first thing you will want to do is check their BBB record. The Better Business Bureau evaluates companies based on customer complaints and research findings. They examine how well the business responds to customer complaints and gives them an A through F grade based on their overall performance. Some companies have received good marks with the Better Business Bureau, but there are some that have received below expectations.
- Another thing you will want to look for is their BBB rating. This rating is also referred to as the financial health rating. It provides you with insight into how well your lender handles money, how long they have been in business, and if they are experienced or not. If the company has a strong reputation with BBB, you can be confident that it is a solid company that can provide you with the best results possible when paying off your debts.
You will also want to look at the company’s website. This will provide you with a direct line of communication with your lender. You can get a feeling for how well they present themselves and how their website is laid out and organized. Experienced and professional companies will show all the details in an easy-to-understand format on their website. If it takes a while just to figure out what they do, maybe it is not the best business for you to go with.
- Now that you have checked everything online, it is time to contact them directly over the phone or in person. You want to make sure that you are getting to the actual person who will help you with your debt settlement needs rather than an answering service. You may even want to meet with them in person for a better feel for their company. The more you are able to see their face, the more you can feel confident that they are being honest with you about how this process will work out in the long run, and it will be worth it when dealing with your debts.
- Once you have spoken with them on the phone or in person, they should have answered all your questions and concerns about what they do. This is the time that you will want to ask them for a free consultation or quote on how much they can help you. A lot of companies will provide the initial consultation with the company for free.
Once you have obtained all of this information, it is time to decide what is right for your needs. A debt settlement loans is often chosen over bankruptcy because it gives people the chance to keep some of their assets and protect their credit score but still find themselves debt free in due time. If you are truly struggling financially though, bankruptcy may be your best option after all. Either way, make sure to do your research and find out what each method has to offer before making your final decision.
FAQs on Debt Settlement Loan
What happens when I get a settlement or debt reduction?
Many payments will be made to the creditor whenever possible so the funds do not go to their pocket. The payments will go towards paying down any real debt you have to afford items such as groceries, car repairs, bills, etc. Typically 80% of these settlements will include all or part of your mortgage payment, car payment, or other monthly expense. Oftentimes these kinds of settlements are also referred to as ancillary relief due to the fact that payments are often granted for many different kinds of items like student loans, credit cards, and even furniture or home repair.
How do I qualify for a debt settlement loan?
To qualify, you will need to be over your limit on credit with reasonable credit. You will also need to be willing and able to make the payments on the settlement amount after it has been paid back in full. Many lenders will invite you to their office and perform an exam to confirm all of this information and then allow you to see how much money is left over in your account once they have all of your necessary paperwork done with your creditors and government agencies. Once they have performed this exam, they will provide you with an amount based on what they can afford for a settlement and how much you can afford too.
The above list is a basic overview of what to expect when getting this type of loan, but in reality, the process is very different based on how each creditor handles their settlement negotiation or payment procedures. Some creditors will be more understanding than others. Therefore, the above information may not apply to all lenders. If you are looking to find information on a debt settlement loan, then you can consider getting help from Canadian Cash Solutions and get the best help from them for the same.