Debt Settlement
Debt settlement, also known as debt settlement or debt relief, is an important financial tool that enables individuals and families to address their over-indebtedness and get back on the road to financial stability. This process provides a structured approach to paying off debt and preventing further financial problems.
What is a debt settlement?
A debt settlement is a formal agreement between a debtor and his creditors to reduce and pay off debt over a period of time. It usually begins with a request for help from a licensed debt relief agency. These organizations assess the debtor's financial situation, establish a budget and negotiate with creditors on their behalf to obtain favorable repayment terms.
The debtor pays a set amount each month, which is then divided equally among creditors. Upon completion of the repayment plan, the remaining debt is usually forgiven. Debt settlement offers an organized and equitable approach to help people achieve a debt-free future and restore their financial well-being.
