If you’re one of those people who owe more on a monthly basis than you can afford to pay, you will find yourself in the difficult position of having debt that increases rather than decreases. The more you fall behind, the higher the interest on your repayments. This starts to become a negative downward spiral from which you may feel you’ll never escape. Debt can be a crushing weight psychologically, particularly when debt collectors are constantly in contact with you. You might even find that you’re scared to answer the phone because you’ve run out of excuses to make, and feel entirely guilty that you’re not able to meet your promises.
Just when you think you’ll never have peace of mind again, you may be told about debt settlement companies in New York City, and will be urged to contact one. You’ll be assured that these are companies that are familiar with your situation, and who are expert at handling cases like yours. Where would you find such a company, and what does debt settlement mean?
The rationale behind debt settlement
Firstly, you need to be careful to choose a reputable financial concern. Some companies will charge you immediately to give you financial advice, and it may not even be the business you’d like to work with. A reputable company will provide you with a debt negotiator who will offer you a free consultation to discuss your situation in detail, and who will be able to advise you best according to your particular circumstances. The first thing a debt negotiator will do is to evaluate your financial situation and the amount and type of debt that you have.
What the debt negotiator may advise is that you negotiate paying back a lump sum to your creditors. Obviously you will need to be able to raise this money, but the advantage is that you will be able to negotiate that the total amount is reduced. The debt negotiators will be able to conduct these negotiations on your behalf and, because this is something they’re experienced at, they have been able to reduce the amount owing by between 10% and 50%, which will make a huge difference to you as a debtor. Before providing you with this solution, you should be assured that the debt negotiator is fully aware of your financial situation and truly believes that this is the best solution for you.
