Which Debt Can Be Settled? How You Can Improve Your Credit Score Here ph
We receive many questions regarding debt settlement and specially inquiries as to whether certain debts can be settled or not. This is an important issue as not all debts can be settled with regular debt repair agencies. And thus, prior to hiring the services of such agencies you need to make sure that your particular debts are suitable for settlement or else you would be just wasting money. Under the right circumstances all debt can be settled, but debt repair agencies deal only with certain types of debt. Following is a short description of the different types of debt that qualify for a debt elimination process through an agency and those debt types that do not qualify for regular debt elimination processes and need different solutions in order to be cancelled or erased. Debt Types That Qualify For Debt Settlement The first type of debt that we will briefly explain is credit card debt. Credit card debt is in most cases unsecured debt that features high interest rates compared to other form of debts. Thus, it is extremely important to include this kind of debt in any debt settlement program. Credit card debt certainly qualifies for this type of debt aid due to its unsecured nature and the repayment flexibility it presents.
The same goes to store card debt. Just like credit card debt, store card debt is unsecured debt and usually charges higher interest rates than credit card debt and personal loans. Thus, it should also be included into a debt aid program. Personal loans, if unsecured can also qualify for debt settlement. This is due to the fact that if the lender refuses to negotiate, he would have to undertake long legal processes to recover the money and he would also be forced to negotiate prior and during the process with costly legal fees. Of course, this applies to unsecured personal loans only and not secured loans. Different bills, like hospital bills and other services’ bills can also be included in a debt elimination program. They are usually included because the debt is unsecured and because the creditor has less negotiating power than banks and other big companies. Thus, it is easier for a negotiator to convince the creditor that he should accept the deal or he might lose the chances of getting any money back at all. Debt Types That Do Not Qualify For Debt Settlement There are other debt types that cannot be settled. These debts include: student loans which can
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