If you’ve finally come to the conclusion that a debt settlement plan is what you need to get back on solid financial ground, you’ll want to be sure that your debt settlement plan includes everything that it needs to be successful.
At this point you’re either having problems making your monthly credit card payments, or you’ve already given up, and your accounts are delinquent. If your situation is the latter, you’ll want to get going on your debt settlement plan as soon as possible. Below are the steps you’ll need to take to put into place a good and solid debt settlement plan:
1. Figure out what funds can be made available to offer your creditors for settlement. If you’re setting aside funds each month in a separate savings account (settlement fund), it’s important to be realistic as far as what amount of money can realistically be held in reserve to offer your creditors as settlement. If your debt totals $50,000.00, and you believe you can set aside $1,000.00 per month in your settlement fund, please know that it’s important to keep this goal. If you believe you’ll owe taxes, or money will be needed for emergencies, you may want to reduce your settlement fund goal down to $800.00 per month. It can be frustrating when you’re on track to settle your accounts, but you end up hitting brick walls during your savings progress due to unforeseen circumstances. This is why you’ll want to be realistic when figuring out what you’ll be saving each month for your debt settlement plan.
2. Set up a separate savings or checking account for your settlement fund. Many debt settlement companies require that their clients set up an escrow or trust account, to which they deposit funds each month. We at Donaldson Williams, however, do not have this requirement in place; therefore, we request that you set up a separate account, and stick to your goals each month. Of course, we will check in with you every four weeks to get an update on your progress, and be sure that you’re on track to reach your goals.
3. Gather all of your monthly credit card statements. We’ll ask you to forward your most recently received copies of your credit card statements to our office so that we know the exact balances owed to each of your creditors at the time that you enroll in our program.
4. As questions arise about your debt settlement plan, add them to a list so that you’re prepared the next time you speak with us. Entering into a debt settlement program can be intimidating and scary, and you really don’t know exactly what you’re getting into. While we make every effort to fill you in on every possible scenario that can occur with a debt settlement plan, sometimes you’ll still have questions. It is our intention to honestly answer all of your questions, so as you’re going about your day, simply jot down your questions, and have this list available for the next time we talk. We’ll take whatever amount of time necessary make sure that you’re fully informed about the process of credit card debt settlement.
Now that you have a debt settlement plan in place, what can you expect from this point forward? Well, if you haven’t already talked with at least five different debt settlement companies, I suggest that you do so. You see, most people will get a “feel” for which companies are honest and ethical, and which companies are really there to just sell you a product. Obviously, you’ll want to thoroughly investigate the debt settlement companies you’re considering, and make sure that they are BBB Accredited, with zero to few complaints.
After you’ve hired an honest debt settlement company, they will provide you with regular updates regarding your accounts, and the progress of their debt negotiations with your creditors. After a settlement agreement has been reached, the debt settlement company will contact you to provide the details, and confirm that the debt settlement agreement that has been reached is one that you’d like to accept.
Upon your acceptance of the debt settlement agreement, your representative will require written confirmation of this agreement from your creditor. After written confirmation is received, the debt settlement company will take the necessary steps to forward funds to your creditor to complete the settlement agreement.
After completion of any settlement agreement reached with your creditors, part of your debt settlement plan includes the debt settlement company forwarding all copies of the settlement documentation to you for your records. Of course, the debt settlement company will keep permanent copies of these records, but we highly recommend that you keep them, as well.
For more information regarding Donaldson Williams’ Debt Settlement Plan, please schedule a free consultation so that we may fully evaluate your situation to determine if debt settlement is the right option for you.