What types of debts qualify for debt settlement?
In most cases, only unsecured debts qualify for debt settlement. Unsecured debt is debt that is not secured by collateral, such as your home or automobile. They most common type of unsecured debts is credit cards. If you have at least $10,000 or more in unsecured debt, you are experiencing a financial hardship and would like to avoid bankruptcy, them debt settlement just may be the best option available. Examples of unsecured debts that typically qualify for debt settlement are credit card debt, medical bills, personal loans, store cards, unsecured bank loans, etc.
Typically, only “unsecured” debts qualify for a debt settlement program. Unsecured debt is debt that is not “secured” by collateral, such as a home or automobile. Credit card debt is the most common type of unsecured debt. The amount of debt you owe may also play a significant factor in qualifying for debt settlement. If you have $10,000 or more of unsecured debt (such as credit card debt), you are experiencing a financial hardship and you want to avoid bankruptcy, then you might qualify for debt settlement.
