Debt Consolidation

How To Obtain A Debt Settlement Quote?

There is a specific procedure that you need to follow when it comes to obtaining a debt settlement quote from a debt consolidator. The first thing that is very important for you to keep in mind is that consolidation and settlement of debts are two different processes, but you can avail both types of programs from the same agency – that’s possible. In fact, it is also possible that you contact an agency for a settlement offer and the agency instead suggests you to go for a consolidation program. Such things happen when the agency reviews your debt and financial information and finds that you do not meet the qualifying criteria required for a settlement program. Therefore, you will have to be very careful while you are applying for quotes from different debt settlement companies. Following are some of the important things that you need to keep in mind in this regard.

Understand The Process

Before you apply for a debt settlement quote, you must first have a thorough understanding of what the process is and whether it makes the best debt relief solution for your specific case. In this method, the agency talks to your creditors on your behalf and convinces them to accept a lesser amount of money than the actual outstanding balance on your debt accounts in full and final settlement of the entire debt. Now, the question is why any creditor would be willing to accept a lower amount and write off the remaining balance. Such things are possible only if the creditors get convinced that the debtors are going through extreme financial hardship and it is almost impossible for them to pay off 100% debts. For example, a debtor who is suffering from injuries or some kind of physical disability and has also lost his or her jobs and that there is very little hope for him or her to return to work in near future can easily qualify for a debt settlement offer. But, other debtors may also qualify for such programs provided the circumstances are in their favor.

Statute Of Limitations

You are also advised to have a thorough understanding of the statute of limitations regarding the debts you owe before you go ahead and apply for a debt settlement quote. Even if the financial hardship you are going through is not an extreme one, if there is very little time left for the statute of limitations to expire, you have a great chance to qualify for a settlement program. The statute of limitations refers to the time period after which the lenders and debt collectors lose their legal right to collect debts. This time period varies from one state to another and also depends on the type of debt you owe. In some states it is as small as just one year; in other states, it can be 2, 3, 4, or in some cases even much longer. The statute of limitations is calculated from the date when the last payment was made by you.

Provide Accurate Information About Everything In The Quote Application

Now, when you are filling out the application for a debt settlement quote, you will have to be very careful about the information you are providing out there. Make sure that the details of your debts and finances that you are providing out there are complete and accurate in all sense. The more accurate information you provide, the more accurate quote you will get. Explain each and everything, such as when the statute of limitations is going to expire, how much debts you owe, what your current employment status is, and what kind of personal and financial hardship you are going through.

Last, but not the least, you are also recommended to do a thorough background check of the company before you apply for a debt settlement quote. Make sure that the companies you are contacting are legitimate and reputable ones.

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