What goes on during the credit card and debt settlement process?
First, you need to understand that debt settlement is only for those who are experiencing financial hardship. Hardships include unemployment, reduction is earnings, medical debt, divorce, being a victim of a crime or possibly a hike in interest rates causing your debt to become unmanageable. If you are experiencing a legitimate hardship, debt settlement is a reasonable alternative to bankruptcy. It is less intrusive and does not stain your credit record for ten years. Debt settlement is the term used when we come to terms or agree to pay a portion of a specific debt with a creditor. Before achieving a settlement a negotiation process must take place. Debt settlement and negotiation go hand in hand, a settlement cannot be achieved without the proper negotiation process. Many assume a settlement is the same thing as a negotiation, it is not, it is just simply the result of negotiation. Therefore when we speak of a debt settlement program, we are simply speaking of a negotiation process.
