Debt settlement is a kind of agreement that is signed between a debtor and a creditor for settling a debt for lower than the pending balance. It is managed by negotiators who are trained specially and who can offer a lower amount for pay-off for the complete settlement of an account that is overdue. These are a few questions that you need to ask before hiring a debt settlement in Ontario agency.
Can I pay back my debts?
In case you are fully able to pay all your debts back, you should do so. Debt settlement is meant only for those who are not financially capable of paying back their debts, but might be capable of debt repayment in case of reduction of the outstanding balances.
Which types of debts do I have to settle?
Debt settlement is practical for only unsecured debt, like medical debts, credit card accounts and possibly a few other personal debts or department store cards. Historically, creditors never settle or negotiate secured debts, like loans that are secured with collateral, student loans, automobile loans, home loans etc.
Will I be able to save some money every month?
Although you might not be able to pay back all your debts, you need to be financially capable of paying back at least a part of your debts in case you are able to save some money every month and set it aside. The amount needs to be lower than the minimum payment that is needed by your creditors every month.
For more information on debt counselling services, visit the website https://www.reynoldshelp.ca