Among several debt options, debt settlement programs have proven to help many consumers get out of debt.
Although debt negotiation doesn't work for everyone, for the right consumer, it could help him pay off his debt for less than what he owes.
Just like any other financial option to put your finances back on track, debt negotiation requires consumers to follow certain steps so as to begin their journey to financial freedom.
Read the following six stages consumers typically go through in order to enroll in a debt settlement program.
STEP 1: Qualifying Like I mentioned earlier, while debt negotiation works for some consumers, it doesn't help others.
This is because, just like any other financial option to get out of debt, depending on the type and amount of debt you have, debt negotiation may or may not be a viable option to put your finances back on track.
For instance, student loans aren't typically settled by a negotiation company, whereas credit card debt is.
As a result, make sure to contact a legitimate debt settlement company that, instead of automatically enrolling you in their program, will first evaluate your case.
A quick 10-minute consultation over the phone should do the trick.
After asking a few questions, the Debt Consultant will likely be able to tell if, depending on your case, debt settlement is a good debt option for you or not.
STEP 2: Designing a Plan That Fits Your Budget The Debt Consultant will discuss with you how much you can afford to pay in order to eliminate your debt.
Be honest and tell the Consultant your true financial situation so he can help you find the best plan to fit your needs and your budget.
STEP 3: Sending In Your Financial Paperwork A reliable debt negotiation company will require double-checking your financial information to make sure debt settlement is the right option for you.
As a result, a Debt Consultant will typically ask you to send over some of your monthly credit card statements to evaluate your case better.
Thus, have your statements at hand before calling the debt negotiation company.
STEP 4: Pre-approval The Debt Consultant will examine your paperwork and consider your enrollment in the program.
He'll generally verify your type of debt and how much you owe.
Also, the Debt Consultant will make sure the company currently settles unsecured debt with your creditors.
Otherwise it would be a waste of your time and money to enroll you in the program.
STEP 5: Filling Out Some Forms After being pre-approved by the Debt Consultant, you'll be asked to fill out some forms.
Ask any questions that pop up in your head and make sure the Debt Consultant addresses all your concerns.
Among some of the forms you'll need to fill out will be a Power of Attorney to allow the debt negotiation company to negotiate your debt with your creditors.
STEP 6: Compliance Call The Debt Consultant will agree with you on a day and time a Compliance Officer can call you to finally enroll you in the company's debt settlement program.
The Compliance Officer will verify all the paperwork regarding your case and go over the different steps involved in debt settlement to make sure you understand how the process works.
Step 7: Enrollment In the Program If the Compliance Call goes well and all your financial paperwork is in order, you'll be enrolled in the program! Don't Pick A Company That Automatically Enrolls You If a settlement company automatically enrolls you in the program, don't trust your business to them.
Just like any other legitimate debt option to alleviate your dire financial straits, enrolling in debt settlement programs requires to following different steps to verify debt negotiation is a viable alternative to pay off your debt.
A reliable debt settlement company will make sure you can benefit from debt settlement before enrolling you.