Pennsylvania Debt Settlement: How Can I Settle My Debt in PA?
Debt settlements in Pennsylvania have become more common as a result of the recession. Many people have lost their jobs and suffered large declines in home values. This has saddled everyday consumers with large debts from credit cards and other loan optionsin an effort to stay afloat. But for some, the debt load has become unmanageable. A debt settlement could help some of these individuals alleviate the burden.
Pennsylvania debt settlements work similarly to debt settlements in other states with the following exceptions:
If you are considering a debt settlement, here is a basic overview of the steps going forward.
Step 1: Determine if a Debt Settlement is a Viable Option
The first thing for the consumer to do is determine if a PA debt settlement is the right debt relief option. Below are the common financial symptoms of someone that may benefit from a debt settlement:
• $7,500 or more in unsecured debt (like a credit card)
• Can’t make minimum payments
• Outstanding balance still growing
• No relief in sight
➢ If this sounds similar to your current situation, call 877-236-7657 for assistance in determining if a debt settlement is right for you.
Step 2: Choose a Pennsylvania Debt Settlement Company
Once a debt settlement is established as a potential avenue for helping a consumer settle an unmanageable debt, it’s time to choose a top debt settlement company.
Note that many companies operate nationwide even though they may not be located in Pennsylvania.
Step 3: Negotiate the Settlement
Whether you are settling on your own or with the help of a PA debt settlement company, the next step is negotiating the settlement with creditors. The benefit to hiring a reputable debt settlement company for the negotiation is as follows:
• They are experienced negotiators
• They know and understand the debt settlement process
• They have existing contacts in the industry
• It’s their job
This means they have a very good idea of who to contact and what to offer as a starting point in the negotiation. The consumer can continue with his/her daily life while the debt settlement company maintains the negotiations over an extended period of time.
Step 4: Get It in Writing
At every step of the process, get the communication, agreement or terms in writing. For example, take notes from the calls with your debt settlement company representative. Try to exchange e-mails as well so that you have an electronic paper trail of the conversation. Ask for copies of the documentation from the actual creditors as well. There is no such thing as “too much information” in the Pennsylvania debt settlement process.
Step 5: Make the Payment
Once an agreement on an amount has been reached, it’s time to make the payment. Sometimes the agreement will require a one-time lump sum that may take some time for the consumer to save up. Other situations may allow the individual to pay down the debt in installments over a period of time.
Step 6: Receive the Write-Off
Once the required amount has been paid, the credit card company or other creditor will call the debt settled. This does affect your credit rating, because a “settled” debt is still damaging. However, the payment burden of that particular debt will be gone and the consumer has the opportunity to regain control of their financial situation. Be extra sure to get copies of the settlement documentation from creditors and call the credit reporting agencies to alert them of the settled status.