Debt Settlement - Debt settlement, which is also known as debt arbitration or debt negotiation, is the process of reaching a settlement with a creditor to reduce a balance and will be regarded as payment made in full. Although consumers may arrange settlements on their own, most will utilize attorneys and or debt settlement companies to maximize the results. In most cases consumers that continue to make minimum monthly payments to their creditor are unable to negotiate a reduced balance.

Bankruptcy - Bankruptcy is the process where a person or company is legally declared unable to pay its creditors. Even in bankruptcy creditors may still file a bankruptcy petition to attempt and recoup a portion of what they are owed. In most cases bankruptcy is initiated by the debtor by claiming that they are insolvent.

Debt Management - Debt management is a process used to restructure debt. In most cases this is a third party that analyzes all a consumers’ debts, income and budget. This third party then renegotiates the interest rates and payments with the creditors.

Minimum Payments - The minimum payment for a credit or charge card is the smallest required payment that a debtor must make every month. In most cases this payment is just enough to cover the interest that the creditor is charging.

 

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If you would like to find out if a debt settlement program would help you please call us at 1-800-880-5156. Our debt advisers are standing by.