A.Dear Client,
Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own if your pocket permits to repay entire outstanding at a time for one time settlement(OTS) of dues, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with chargeable fees/service charges. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Finally, when you settle a debt with a credit card company, your account is closed once the settlement is complete. So you could potentially have no credit facility to use a credit card further owing to your poor credit score. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own if your pocket permits to repay entire outstanding at a time for one time settlement(OTS) of dues, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with chargeable fees/service charges. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Finally, when you settle a debt with a credit card company, your account is closed once the settlement is complete. So you could potentially have no credit facility to use a credit card further owing to your poor credit score. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
Helpful
Helpful
Share
A.Dear Client
Initiate contact with the lender or the bank that provided you with the credit card or personal loan. Discuss your financial situation and express your intent to settle the outstanding debt. Negotiate with the lender to reach an agreement on a reduced lump-sum payment to settle the debt. This often involves offering a lower amount than the total outstanding balance. Ensure that the settlement terms are clearly outlined and agreed upon by both parties. Once you have reached a settlement, make sure to obtain a written agreement from the lender detailing the terms of the settlement, the agreed-upon amount, and the date by which the payment should be made. Fulfill your part of the settlement by making the agreed-upon payment within the specified timeframe. Ensure that the payment is made through a secure and traceable method to maintain a record of the transaction.
Initiate contact with the lender or the bank that provided you with the credit card or personal loan. Discuss your financial situation and express your intent to settle the outstanding debt. Negotiate with the lender to reach an agreement on a reduced lump-sum payment to settle the debt. This often involves offering a lower amount than the total outstanding balance. Ensure that the settlement terms are clearly outlined and agreed upon by both parties. Once you have reached a settlement, make sure to obtain a written agreement from the lender detailing the terms of the settlement, the agreed-upon amount, and the date by which the payment should be made. Fulfill your part of the settlement by making the agreed-upon payment within the specified timeframe. Ensure that the payment is made through a secure and traceable method to maintain a record of the transaction.
Helpful
Helpful
Share
A.Hi client,
Jaha se liye hai unse baat karke, app settlement kar sakte hai. Agar bank hai toh usi k branch k manager se bat kar sakte hai.
Kuch kuch mamlo mein aap ek advocate ko niyukt kar sakte hai.
Thanks and Regards
Jaha se liye hai unse baat karke, app settlement kar sakte hai. Agar bank hai toh usi k branch k manager se bat kar sakte hai.
Kuch kuch mamlo mein aap ek advocate ko niyukt kar sakte hai.
Thanks and Regards
Helpful
Helpful
Share
Read Related Answers
Online job fraud
Dear Client,
Please register a complaint with cyber security for online fraud and scam. Complaints can be reported through helpline number 1930 or on National Cybercrime Reporting Portal. Or you can a...
Loan
Dear Client,
A co-applicant/borrower is equally liable for repayment of the debt if the principal Borrower fails to repay it and if after exercising all the steps for recovery of debt against the Bor...
Compassionate appointment
Dear Client,
The SBI rules can not be breached. it could be the policy of the bank to not hire anyone. Please check with the rules and guidelines for heiring employees
Education Loan OTS
Dear Client,
Try to go to the online portal of the said bank and complaint about grievance through the same. it is advisable to repay the loan amount within the stipulated time or you may face seizur...
Sbi account put on stop by cyber security
Dear Sir/Madam,
Under the following provisions the Hon’ble Magistrate Court having ample powers to unfreeze the Bank accounts. Further, the Hon’ble Court has vast powers to hand over the properties/v...
Read Blogs on Banking
Banking Lawyers
Find Lawyers by Location
