<h2>Debt Settlement Basics</h2>
<p>Let’s start with the basics! A debt settlement service is for a person that has an extreme financial hardship.</p>
<p>Let’s face it; if you don’t have a serious financial hardship, you don’t belong on a debt settlement program.</p>
<p>Remember the best option that you can choose if it is affordable is to pay more than minimum payments on your accounts,</p>
<p>to pay off your balances quickly.</p>
<p style="text-align: center;"><img class="aligncenter" title="Warren Buffett &; Charlie Rose" alt="" src="http://farm4.staticflickr.com/3640/3329290048_75bcc75d30.jpg" width="320px" height="300" /></p>
<p>Debt settlement programs when administered correctly can cut a person’s debt down to around half of what they owe,</p>
<p>and that should also include fees.</p>
<h2><strong>Debt Settlement Services &#8211; When does this type of program make sense?</strong></h2>
<h3><strong>1. </strong><strong> Can you afford a Debt Settlement Service?</strong></h3>
<p>On top of considering debt settlement when you are in a serious financial bind,</p>
<p>there are still other factors that one must consider.</p>
<p>Do you have a solid job and can you see yourself keeping up with the debt settlement program payment for around 3 years?</p>
<p>A typical debt settlement program payment would be equal to a person’s total debt times 1.8%.</p>
<p><strong>Example</strong></p>
<p><strong>$40,000 total unsecured debt * 1.8% = $720 (about a 36 month or 3 year plan)</strong></p>
<p>A debt settlement program would not be right If a person that has $40,000 in total unsecured debt could only afford to pay $250 per month at the most.</p>
<p>Realistically make sure that you can really afford the payment before officially signing up on a debt settlement program.</p>
<p>Hopefully you can afford the payment because often the only other alternative would be bankruptcy and you don’t want to go that route if you can avoid it.</p>
<p>On the other side of the coin, if a person could afford to pay $1,850 per month towards their $40,000 in unsecured debt, they should avoid debt settlement.</p>
<p>This person would be better off paying more than the minimum payments to pay off their debt fast. Here is a debt calculator that CNN provides consumers.</p>
<h3><strong>2. </strong><strong>Fully Understand a Debt Settlement Program Before Joining.</strong></h3>
<p>Can you take the creditor phone calls in the beginning of the program?</p>
<p>A person must understand how debt settlement could affect their credit score,</p>
<p>and a person must also be educated on how to rebuild their credit score following graduation on a debt settlement plan.</p>
<p>Gaining this knowledge will mentally prepare a person for debt settlement before they start their journey.</p>
<p>Just like a running race, it is better to train your body before the race starts right?</p>
<p><strong>A reputable debt settlement company will:</strong></p>
<p>&#8211; Educate their clients in the beginning of the program on the Fair Debt Collection Practices Act and debt collection rules.</p>
<p>&#8211; Provide extensive credit education.</p>
<p>If a consumer understands the negative consequences that debt settlement can put on their credit,</p>
<p>and they know how to rebuild their credit score, then debt settlement could be right for that person.</p>
<p>The best debt settlement companies will strive to get their clients out of debt in the fastest time-frame and lead them to being financially fit by the time they graduate the program.</p>
<h3><strong>3. </strong><strong>A Debt Settlement Program that doesn’t include Attorney Protection could Lead to Disastrous Results.</strong></h3>
<p>If you are being represented by an attorney, the Fair Debt Collection Practices Act requires debt collectors to direct all their communication to your attorney.</p>
<p>If you don’t have an attorney representing you a debt collector has the legal right to call and harass you.</p>
<p style="text-align: center;"><img class="aligncenter" title="FDCPA - Protects Consumers from Abusive Debt Collectors" alt="The FDCPA protects you from abusive debt collectors." src="http://myblogguest.com/forum/uploads/articles/2013/5/consumer_rights-fdcpa-fcra-golden_financial_services-_1.jpg" width="600" height="383" /></p>
<p>Therefore to avoid having constant creditor harassment, it is best to join on a debt settlement program where they include attorney protection.</p>
<p>On top of that if a lawsuit occurs while you are on the program,</p>
<p>having attorney representation and having your lawsuit responded to properly, will most likely lead to that lawsuit likely getting dismissed.</p>
<p>The best debt settlement companies will provide their clients with creditor harassment protection, lawsuit defense and lots of financial education.</p>
<h5>Featured images:</h5>
<p><span class="license">License: Image author owned</span></p>
<p><span class="license">License: Creative Commons</span> <span class="source">image source</span></p>
<p>Paul Paquin is a christian, family oriented CEO who Created Golden Financial Services in 2004.</p>
<p>Golden Financial Services is a debt relief and small business loans company. Follow Paul on Twitter.</p>

Debt Settlement – 3 Points You Must Understand Before Joining
