Debt Settlement Companies – How to Qualify For a Top Performing Debt Settlement Company
When a person is seeking debt settlement, there are three considerable factors that define the eligibility of the person for such an option. These include the consumer’s location, the debt amount and the debt type. Some useful details to help you understand the process in this regard are discussed below.
Qualified debt types
In order to avail debt settlement option, you need to make sure your debt type qualifies for this privilege. In most of the scenarios, financial companies offer debt settlements against unsecured debts that may include judgments, personal loans, medical debts, tax debts, credit card debts, etc. Credit card debts are usually one of the most commonly settled debts since credit card companies have recently upped their consumer fees and interest rates as a result of recession. Secured loans on the other hand don’t usually qualify for debt settlements. These include car loans, home mortgages, etc. This is due to the fact that the loan providing company has the ability to possess the underlying asset such as the house or the car.
Amount required for settlement
Speaking in general terms, one needs to have an amount of $7500 at the very least in debts to become eligible for different types of debt settlement options. In case you are owed an amount any lesser than $7500, there is a good chance that the debt settlement company might try out their negotiations with the creditor in order to get you a lower interest rate or a personal savings plan, etc. This is done against some asset that you own and your monthly payments are eventually reduced.
Qualified states for debt settlements
If a consumer meets the eligibility criteria defined in the above sections, they are good to file for a debt settlement in almost every American state. If you want to make sure, you can always check out the financial laws of your state or find that out by contacting any financial consultant.