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Credit Counseling: Debt Settlement Services

A debt settlement service is something that you’ll want to think about if you find yourself with a high amount of debt that you are having trouble paying back each month. There are many ways that you can successfully manage your debt so that you can rebuild your credit rating. One way that you can start to manage your debt is to first make a list of all your debts. For each separate debt entry that you have, divide the entire amount by the monthly payment that you’ve been paying. This total is the AC (Accelerator Margin). For the debt with the lowest number give it the number “one”. Work your way up the list, assigning debt in order for lowest to highest. Your goal each month should be to make the minimum monthly payments to all your debt except for the debt that you have that is in the “one” position. For the debt in the “one” position you’ll pay the minimum amount plus the total AC. Continue with this type of payment plan until the first debt is paid off, working your way up through your debts until they are all paid off.

When you finally have all your debt paid off you should think about using the money that you have used in the past to make bill payments and start putting it into savings of some kind, such as a mutual fund. This way you’ll be accumulating interest on the money that you save each month rather than paying interest towards your debt. When you use a debt elimination plan you’ll find that you are taking concrete steps to reducing and eliminating your debt. But what do you do if your debt is simply too high and you need help? A debt settlement service can help you deal with your creditors and negotiate lower interest rates and payback terms so that you can still pay off all, or a portion, of your debt without reaching the point of filing for bankruptcy.

Debt settlement companies will help you settle the following types of debt: (1) credit cards, (2) medical bills, (3) store credit cards, (4) any checks that you’ve bounced, (5) personal loans, and (6) student loans. These are called “unsecured debts”. This means that there is no collateral attached to the money that is loaned and therefore the creditor may be willing to settle since they don’t have any other guarantee for the lending of the money. Take your time finding just the right debt settlement company for your needs. Don’t sign a contract with the first company that you talk to since it will be to your benefit to shop around for the lowest rates. The one thing that you’ll want to be certain of is that the debt settlement service is licensed and experienced.

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  • Hi, I would like to let you know that bounced checks cannot be settled, banks will not budge on those they do have a security which is the blacklist they can put you on so you cannot get another checking account until that charge has been paid. And student loans cannot be settled, most of them are federdal student loans and they do not budge on settlements ,