Westlake Village, CA, August 19, 2009 --(PR.com
)-- “A debt settlement company can have a consumer out from under even large card debt in just three years,” said Tom Brainerd, VP of Marketing for Greenlight Debt Relief, a leading credit counseling and debt settlement company. “Yet consumers remain unaware that are other debt settlement options beside bankruptcy.”
Here’s the process the consumer typically follow with a debt settlement company:
Step 1: Call a debt relief company for a free consultation. A professional consultant will assess the consumer’s financial situation to determine his/her potential for debt reduction.
Step 2: The consumer works with the debt consultant to determine the monthly dollar amount that can be saved towards a negotiated settlement. The amount is typically less than the current minimum payments but needs to be an amount the consumer can afford each month. This money will be put aside in a new account the consumer sets up and controls to go toward paying off the debt (not simply paying credit card interest charges).
Step 3: After the consumer enrolls in a debt settlement program, the creditors will be contacted in an attempt to handle future creditor communications.
Step 4: After the consumer has saved enough money in his/her account to make a reasonable offer, individual negotiating begins with the creditors. The debt settlement company will typically attempt to reduce debts by at least 50% of the current balance.
Step 5: Once the debt settlement company has secured a settlement with a creditor, they notify the consumer via email and/or a phone call to explain what has been negotiated.
Step 6: Once an account has been paid the creditor will make a report to the credit bureaus. This may take a few weeks to a few months depending on the company. On the consumer’s credit report they may see that their account is "settled in full," "settled," "paid," "paid by settlement," or "settled for less than the full amount." No matter how they report it, the consumer no longer owes on this account and the balance is zero.
Greenlight Debt Relief is a company dedicated to helping consumers achieve debt relief through credit counseling and debt settlement programs.
If you would like more information on this topic or to schedule an interview with Tom Brainerd, please call 877-290-9065 or email email@example.com.