Whether you decide to enroll in a professional debt settlement program or negotiate settlements with your creditors on your own, the process is the same. The settlement company will require you to sign a limited power of attorney, so it can negotiate on your behalf. You’ll then need to set aside money to build up a settlement fund. Once you’ve saved enough to make a reasonable settlement offer, you or the professional debt negotiator will negotiate with the creditor for a reduced payoff amount, typically between 25% and 50% of the outstanding balance.
Once the creditor agrees to the settlement amount, you make payment and the account is paid off. (typically listed as settled-in-full, as opposed to paid-in-full, but is determined by the creditor). You then continue putting money into the settlement fund to accrue enough money for negotiating the next settlement. Basically, the process is a cycle of saving up and setting aside money, negotiating a settlement and paying the settlement.
Since people do not pay proper attention to their debts and due bills, they feel stressed as their banks and financial service providers start sending them legal notices. In fact, no one likes to be a defaulter, as it badly affects his or her financial as well social reputation. Since timely payment of you bills and debts is the key to develop a good credit history, showing a slipshod attitude towards you debt and due bills can restrict you from attaining available financial services. It is quite true that not only the defaulter but his or her family members also suffers from a mental trauma, as with debts they cannot live a normal and contended life. There are various non profit organizations that help such people and and their families in living a debt free life and provide them with every possible help to consolidate their multiple debts at once. For Christians getting this help is quite easier, as there are many debt consolidation companies that offer this help to Christians only. Such organizations provide every defaulter with personalized consolidation services and arrange Christian debt consolidation loan for them, so that they may settle their debts at ease.
With the help of a Christian debt consolidation loan, a borrower can pay off his or her multiple debts including routine personal bills, credit card bills, personal loans and any other due debt. In order to help such borrowers in getting complete financial freedom, these debt consolidation companies evaluate the financial condition of the borrower. It gives them an clear idea about the required loan amount and helps them in availing a suitable debt consolidation loan. In fact this entire process is carried out in an highly professional environment so that perfect financial statement can be submitted for debt consolidation.