Negotiating Debt Settlement: Common Pitfalls You Should Avoid

walletDebt settlement is all too common: many of us have dealt with financial hardships at one point or another, and it’s easy to become overwhelmed. Plenty of individuals have had to deal with negotiating debt settlement, but despite its commonality, there are still plenty of mistakes that people can make when going through the process. Many of these mistakes simply come from not knowing enough about the process, which is completely understandable. A few simple pointers, however, can help you avoid some of the most common pitfalls that come with debt settlement negotiation.

Know What Type of Debt You’re Dealing With

Credit Card StatementThere are a lot of financial details that go into the process of negotiating debt settlement, and often creditors or debt collectors will rely on the fact that many individuals aren’t aware of all these details to get more money. One of the most important details associated with debt collection is whether or not the debt is secured or unsecured. The distinction is easy to understand: a “secured” debt is one whose security comes from interest in some type of expensive asset. Essentially, if the debt is not repaid, the lender can repossess this asset (typically a boat, piece of land, or car).

On the other hand, an unsecured debt doesn’t come with this same attachment. Typically, large retail chains trade in unsecured debt—they’ll often allow individuals to purchase items on credit, but this merchandise can also be repossessed if the debt is not paid back in time. Whatever the case may be, Financial Solutions of America is one of the best options for debt settlement in Las Vegas, and can help just about anyone settle debts quickly and efficiently.

Devil in the Details

Negotiating debt settlement involves a lot of fine details, and losing track of them can cost a debtor dearly. At Financial Solutions of America, we’ll make sure to help you keep track of the most important details during the debt settlement process so that you can be sure to walk away with as much money in your pocket as possible. Small details like making sure to use the right type of money to settle debts can be very important. For example, it’s strongly recommended that retirement funds are never used to settle debts. Most retirement funds will require that the debtor pays a tax on his withdrawal, while many others will require that the entire amount is repaid, just like a loan.

writeSimilarly it’s important to avoid using equity from secured property to pay back an unsecured debt. This is essentially “borrowing from Peter to pay Paul,” and has a tendency to only worsen and prolong the debt settlement process.

Of the many available options for debt settlement in Las Vegas, Financial Solutions of America is certainly among the most committed to resolving debts in the most expedient and efficient way possible. In most cases, we can reduce debts by up to 60%, and by advising our clients about points just like those above, we are able to not only settle debts but educate our clients at the very same time.