Have been working in the debt negotiation industry for nearly ten years now and have quite extensive knowledge concerning how it works. Before we begin I wish to say this is going to be a rather long post and if you are not serious about finding a solution to your debt problem then stop reading now. The objective of this report is to describe to you how debt settlement works and what the method involves; both the good and the bad. Next I will explain the differences between the way the debt settlement law firm works and how it compares to a normal debt settlement company. There are a number of differences between how this procedure is handled by them both. Due to this debtors should learn these differences before registering into any program. Lots of people may already know how a debt settlement firm works but have no clue about how a law firm works and this report will explain that.

First of all, did like to say that debt settlement as a way of credit card debt relief is not for everyone; some individuals simply do not have the perfect frame of mind, while others might gain more The Stephens Law Firm from bankruptcy. To begin with did like to cover the purpose of credit card debt settlement and how the method works. The objective of debt settlement is for the debtor to get out of debt fast without needing to file bankruptcy and save a whole lot of money in the procedure. The target of the debt snowball is to negotiate a onetime lump sum payment on the debtors’ behalf at a much reduced amount than that which the debtor currently owes. These benefits are tremendous. The debtor could save close to half of what they currently owe and be out of debt in a couple of years. But as with most things in life there are downsides to this procedure and there is absolutely not any way to prevent them.

In order for any Creditor to be ready to negotiate a debt settlement on a debt that the accounts must fall into default there are no creditors in the world ready to negotiate when you are current and current on your monthly payments. If they believe you can maintain your monthly minimums than this is where the creditors want to keep you. This is where their profit is created, by simply paying the minimum monthly you will be in debt for more than thirty years, even if the rate of interest is not all that high. If your rate is over 20, you will be stuck in debt for well beyond thirty decades and payback the creditors well over ten times the initial equilibrium alone in interest. That is precisely where they need you so understandably they would not negotiate with you whenever you are present and they believe they can still bank on your minimum payments for many years to come. So the only way to negotiate would be to fall behind on monthly payments.