I am in a debt negotiation plan for the past 3 to 4 months. They have not really made any progress in this matter. Do I need to get out of this plan?
A debt negotiation program takes an average of 24-48 months to complete.
Debt settlement involves efforts you and the firm you hire make. You use personal financial discipline and budgeting to build up money to use for the settlements and the debt settlement firm negotiates with your creditors.
The length of time a debt negotiation plan takes is directly dependent on the amount of savings that you can afford to set aside on a monthly basis. The more you can save, the sooner you will finish the program.
Most credit card companies will not settle with debtors until the account is around six months delinquent. This means that you must stop paying your creditors each month in order for the settlement company to obtain a settlement.
During that time, the payments that you make will accumulate in a holding account that stays under your control. Once you build up enough money to settle a debt, a settlement can be finalized.
It often takes past the 6-month mark to finalized a settlement, though it depends on the size of your individual debts and the monthly payment you are making.
It is crucial that you only work with a firm that charges no advance fees. Your settlements will happen faster when nothing is taking out of payment you make until after a settlement is reached. Also, when a firm doesn't charge any fees until after it reaches a settlement you can be confident that they will work harder for you, as their compensation is tied to producing results.
Remember that the creditors will first try to evade any settlement offer and continue their collection efforts with you, the debtor. You cannot let them intimidate you. Since it is still the beginning of your program, I would suggest that you wait for a few more months.
I also hope that you checked the credentials for the firm that you have signed up with. Be sure to check them on the Better Business Bureau.
Stay in touch with the customer service department for your program and keep records of all communication with the creditors.
I wish you the best in the success of your debt negotiation program!
I hope that the information provided helps you Find. Learn. Save.