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Debt Settlement Options to Consider

By: Michael Millington

When considering debt settlement, there are two options that are available to you. The more popular option involves the recruitment of a debt settlement company to negotiate your debt down for you. The less popular option requires a more upfront approach, seeing you approach your lenders and deal with them on a one-on-one basis. Here we will discuss the differences in the two debt settlement options and how they benefit you.

Debt Settlement Options with Third Parties

If you’re looking to settle your unsecured debt, you have the ability to give the duty to a third party. A debt settlement company can act as a middleman with your credit providers. The benefit of having a debt settlement company as one of your debt settlement options is that you can settle multiple debts at one time with the same company. Employing a debt settlement company will take the negative aspects of having debt away from you. Many companies become the contact for creditors and debt collectors, taking away the phone calls from you.

Debt Settlement Options without Third Parties

Settling unsecured debt can be achieved without the help of an outside party. If you hold on to debt for long periods of time, many lenders will try to settle debts with you. The main detriment in this option is that you have to do the negotiation yourself. Many people have little idea as to what they should negotiate for. While you wouldn’t have to make any payments towards a third party company, you would also need to be highly involved with your settlement efforts. However, dealing with the debt personally can result in a heightened relationship between debtor and creditor.

The difference between the two debt settlement options is clear. There is a big difference between professional debt relief and nonprofessional debt relief. As with any form of debt relief, doing your research can help with your decision.