“The debt settlement company will direct you to stop paying your creditor and instead send the money directly to them each month. The company's goal is to demonstrate to your creditor that you don't have the money to pay up - that's your leverage. After a few months, the company will typically go to the creditor and say, "I'm holding X dollars on behalf of your customer. He doesn't have the money to pay you, so you should take this amount as a settlement or you'll end up with nothing." If the creditor wants to get paid badly enough, it will take the money.” IfsWantShouldEndsEnoughGoalPayCompanyMonthsAmountDirectPaidDollarsDebtCustomersBehalfSettlementCreditorsEach MonthDebt Settlement Author:Jean Chatzky
“No company can promise an end date, but if you have multiple debts, the first one should be settled within a year.” IfsShouldYearsFirstsEndsCompanyPromiseDebtMultiple Author:Jean Chatzky
“You fall a bit behind on a credit card bill, your interest rate soars, your minimum payment rises, and you start falling more and more behind every month. You don't see an end. But you don't want to file bankruptcy either. What you can do - and should do - is negotiate.” WantShouldEndsFallBitsInterestCan DoBehindsMonthsBillsRateCreditCardsMinimumSoarFilesPaymentCredit CardBankruptcyInterest Rate Author:Jean Chatzky
“After explaining why you're in trouble, ask the creditor if the company would be willing to accept a smaller amount. Start negotiations at about 30% of the total amount due, with the end goal of paying 50%.” IfsEndsWould BeAsksGoalCompanyAcceptingTroubleWillingAmountDuesNegotiationExplainingCreditors Author:Jean Chatzky
