Debt settlement company 10-K is what is required by most debt negotiation companies for enrollment. If you do not have $10,000 in unsecured debt, you have a few other options for debt relief. Considering that debt settlement is considered a last resort before bankruptcy, you should not use it unless it is absolutely necessary.
If you have less than $10,000 debt and it is more than 3 months past due, you may want to consider negotiating the debt settlement with the lender on your own. Many of them will settle the debt with the account holder, but the lenders are becoming less willing to work with debt settlement companies. The worst thing they can do is say “no” and you are no worse off than they were before. Unfortunately, with the current economy more lenders are taking legal action against account holders that are not making payment arrangements to resolve outstanding debts.
Credit counseling is a better option if your accounts are not seriously past due. Lenders are more accepting of credit counseling. While they are not getting their ridiculously high interest payments, they are getting a reasonable interest payment and the principle amount in full. Most companies that offer debt management offer both debt settlement and credit counseling. You can get a free consultation with these services and they will help you decide which debt relief option will work best for you.
The secret here is to seek debt help early. Whether you opt for a plan that you will do on your own or choose to use a debt relief service, the sooner you make your decision and stick with it, the better off you are going to be. Unfortunately, many people make the mistake of thinking they can get caught up and that their financial difficulties are only temporary. By the time they realize that major intervention is needed, their choices are limited due to their delay in making changes.
