Settling For Less Than What You Owe – Tips To Help You Get Out Of Debt

If you owe money to creditors, you owe them less than what you are able to settle for” is the message of a new guide to debt settlement, released by Arizona State University’s College of Business. The publication, “The New Debt Relief Guide,” provides consumers with the information they need to negotiate settlements with creditors. In an era of runaway debt, it is no wonder that consumers are turning to professionals for help. The solutions presented in this publication may just be the solution that puts the power back in their hands.

The first step that this guide recommends is the first step toward negotiating lower payments and settlements: educate yourself. The authors explain that consumers must understand the federal debt collection laws and what constitutes “duplicate” or “fault” debt. Additionally, they state that consumers must know their rights under the law and how to assert those rights in negotiations with debt collectors. The final step in the process described in the book is for the individual to seek assistance from a third-party company that specializes in negotiating debt. The purpose of this is to eliminate debt collectors as much as possible.

One of the primary solutions offered in this guide to debt settlement, according to the book, is debt consolidation. The authors recommend using a debt settlement company to combine multiple bills into one manageable monthly payment. They also suggest utilizing a professional credit counselor to help the consumer identify and overcome spending habits that lead to debt. Finally, it is important to follow the recommendations of the book and gather as many helpful and relevant tips as possible.

Another of the solutions the authors offer is the idea of a do it yourself debt relief effort. According to the book, this option should be seriously considered only after speaking with a debt relief expert. The reason for this is that there are many elements involved in debt negotiation. Each creditor has his or her own rules and regulations governing debt negotiation. A do it yourself attempt could result in serious complications and legal action. For this reason, it is always better to consult a debt negotiation service.

However, the debt settlement process described in the book is not the only way to achieve debt relief. The book also suggests several other strategies including the establishment of a debt elimination saving account (a self-directed savings account). This account could be used to pay off high interest debt and other debt without accumulating additional debt. Additionally, a section of the book encourages consumers to use available tax laws to their advantage in debt settlement negotiations.

It is important to remember that consumers cannot simply decide to settle for less than what you owe on their own. When debt is not repaid, it often remains listed on a credit report for up to ten years. Even after being removed from a credit report, debt remains for another seven years. Additionally, creditors often report debt even after a settlement has been reached. As a result, consumers may remain stuck paying money owed to a company who may not have agreed to settle for less than what you owe. For more details on debt settlement visit

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