What is debt settlement? A look at the history of debt settlement.
A recession hit the United States in the 1980s, causing financial hardship for many Americans. Borrowing and lending practices increased into the early 90s, as it had become difficult for many people to cover their expenses. This has led to an even more serious situation, though, as people were finding themselves in a position with debt that they were unable to pay back. As a result, banks started to create their internal debt settlement departments to avoid big losses. The goal of these departments was to collect at least part of the debt, which was usually less than the balance owed at the time.
The idea of Debt Settlement is this: based on different criteria such as consumers’ situation and funds available, an offer is submitted to the creditor, and the negotiation continues until both parties are satisfied with the outcome. Once both parties agree to the terms, the creditor will provide a settlement offer letter, which outlines and details the terms of the offer.
What is debt relief?
Debt relief, also known as debt cancellation or debt settlement, is the partial or total forgiveness of a debt owed by an individual or a business. Debt relief can involve canceling out the debt completely by filing for bankruptcy, getting changes to your interest rate or payment schedule to lower your payments, or persuading creditors to agree to accept less than the full amount owed. If your business is in need of debt relief, CuraDebt is the solution you are looking for.
In many cases, business owners have found themselves in a financial crisis due to the expenses of their business exceeding the businesses profits. To avoid bankruptcy, turning to a business debt relief company is a business owner’s best option. Business debt relief can reduce debts, pay the creditors, help avoid bankruptcy and ensure that a business is still profitable.
To better understand why choosing a debt settlement company is a better option than filing for bankruptcy please take a look at: Bankruptcy vs. Debt Relief: What’s Right For You and How We May Be Able To Help
How can CuraDebt help you?
At CuraDebt we work directly with the creditors to negotiate your debt for 40-60% less than what you owe. Instead of making individual payments each month to your creditors, we tailor a plan for you to set aside a smaller portion of those funds to be placed in an account to save money over time so that we can negotiate settlements on your behalf with your creditors in an effort to eliminate your debt much faster than simply making minimum payments.
The monthly payment is all inclusive, so the monthly set aside is used to pay the future settlements with your creditors as well as us. And we don’t earn our fee until we negotiate a settlement that you approve and at least one payment is made by you towards that settlement.
Business owners who are looking for business debt relief can find it through CuraDebt. Our business debt relief plan is a feasible alternative to bankruptcy and all the stresses that come with it. We have the right business debt relief plan to get your business back
In most cases even unsecured debts are eligible for debt settlement. Although this process resembles restructuring, it may have less of an impact on your credit score. Like restructuring plans, debt settlement plans involve negotiating with unsecured creditors to reduce debt balances. It may be possible to reduce your unsecured debts by a significant amount using this method. At CuraDebt, we negotiate with your creditors on your behalf, and will save you the stress of having to deal with the creditors on your own.
A benefit of choosing the option of a debt settlement program rather than a debt consolidation lending plan is that debt settlement programs take less time to work through than debt consolidation lending plans.
Debt settlement vs. debt consolidation: why debt settlement is a better approach
Both of these strategies may reduce the cost of your debt, but they do so in different ways. Debt consolidation is when you pay off existing debt with a loan or credit card, and debt settlement involves negotiating to pay off debt for less than you owe.
With debt settlement, you will be reducing or canceling out debt completely with your creditors while paying a lower amount than what was originally owed.
At CuraDebt, We will negotiate with your creditors so that you can pay a lower amount than what you owe, in a lump-sum settlement or a series of installments.
Contact us today for your free consultation. 1-877-850-3328