Is This a Fair Trade - Eliminate Unsecured Debt by 60% But Receive a Lower Credit Score - We have heard a lot about settlement firms. Is this a fair trade? This is a debatable aspect. Loan takers have a very different opinion than loan giving companies. The simply do not have to pay through relief options. Hence according to them, settlement options are very fair and unbiased. Loan giving companies do not benefit from relief alternatives. They lose a lot of money.
Is This a Fair Trade - Eliminate Unsecured Debt by 60% But Receive a Lower Credit Score
By Erik Stump
Jan 22, 2010 - 7:46:48 PM
We
have heard a lot about settlement firms. Is this a fair trade? This is
a debatable aspect. Loan takers have a very different opinion than loan
giving companies. The simply do not have to pay through relief options.
Hence according to them, settlement options are very fair and unbiased.
Loan giving companies do not benefit from relief alternatives. They
lose a lot of money. For them, is this a fair trade? The answer to this
question requires a proper explanation. Hence, let's have a look at
some important points.
1.
How are loan giving companies suffering?
A
settlement process operates in a very simple manner. The process starts
with searching. A client starts looking for suitable firms. He looks at
multiple organizations and compares their services. Then he finalizes a
firm and communicates with management. After that, the management
communicates with the credit card company. Every application is not
accepted by bank. They look at the records of the customer in a
detailed manner. The credit score plays the role of a decisive factor.
If the banks are losing money, is this is a fair trade for them?
The
next step involves the negotiation process. If you need to wave off a
large section of your credit card bill, try and get an upper hand in
the negotiation process. Mostly customers who complain of not getting
good elimination rates are not successful in the negotiation process.
Under all conditions, credit card companies are not able to get their
original payments. If a client has spent ten thousand dollars, he will
never return the same amount. With the application of interest, the
payable amount would be more than ten thousand dollars.
Hence
for credit card companies, is this a fair trade? They are not even
getting their principal sum. Thus, this solution is biased towards loan
takers. Recession is a different situation. According to the present
conditions, is this fair trade loan giving companies. Settlement
options provide a lot of advantages to credit card companies according
to the scenario. If they agree to negotiate with the customers, they
can prevent a bankrupt situation.
2.
How do financial companies approach bankruptcy?
What
happens when a client declares bankruptcy? A credit card company will
not be able to claim anything from the credit card customer. This is a
huge loss. In this case, is this a fair trade for loan givers? It is
better for credit card organizations to shift its focus. It should not
concentrate on the amount that it will be able to claim. If settlement
options are preventing bankruptcy for loan giving companies, is this a
fair trade for them or not?
Getting
out of debt through a debt settlement process is currently very popular
but you need to know where to locate the best performing programs in
order to get the best deals. To compare debt settlement companies it
would be wise to visit a free debt relief network which will locate the
best performing companies in your area for free.
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