Debt Settlement Options
Debt Settlement Plan
A debt settlement plan establishes an agreement with your creditors about how much you will pay on your debt. Each company has different rules for debt settlement and what they will accept, and under what conditions. There is no set amount you can expect to be taken off your debt balance.
Some debt settlement companies require participants to shred their credit cards, give permission for the debt settlement company to negotiate on their behalf, and to stop all communication with credit card companies.
Personal Debt Plan
In addition to the above, one couple added a few conditions of their own:
- No more annual trips to Disneyland or San Diego.
- No more eating out, unless it involved deep discount coupons.
- No more season tickets to anything.
- No more traveling across the country for family gatherings.
- No more impulse buys when shopping.
- No more memberships at gyms and tennis clubs.
- Carefully consider money available before agreeing to car and home repairs.
- Budget for everything. If it’s not in the budget, don’t spend the money.