When people are in debt they are often very stressed out, confused and unsure of what to do.
They are very uncertain about what they can do and this can create a lot of personal hardship.
As people get in debt they look for ways to get out of debt or at least address it to some party.
They usually consider talking to the creditors directly, using debt consolidation services, credit counseling and debt settlement services.
Debt settlement service companies offer a few ways to reduce and eliminate your debt.
They offer benefits such as lowering interest rates, lowering monthly payments and reducing the total amount owed.
This can be very helpful and enticing to someone in debt and who is desperate to get out of it.
These companies offer a few very appealing options in the process.
First debt settlement service companies offer the option of lowering the interest rate.
During this process the company negotiates with your creditors and gets them to significantly lower the rate from say 18% to 9%.
This helps a person in debt very much as it lowers their monthly payment and allows them to pay off their debt sooner and more easily.
The second option is lowering monthly payments.
Lower monthly payments are usually tied in with lowered interest rates and lower balances.
With the monthly payment lowered, the person in debt can have a more manageable payment amount and thus less strain on their finances.
The third and final option is to have the overall balance lowered by a good 30%.
When this occurs an individual's overall debt burden is lowered significantly and they are able to make lower and more manageable payments towards their debt.
The whole program enables an individual to have their payments and overall balance reduced by enrolling in a program that lasts about 3 years.
Once the person is done they become debt free.