When a taxpayer reaches this point when he has fallen behind on payments, tax debt settlement is perhaps the only way he can satisfy the Internal Revenue Service. In this article, we will emphasize on one of the most sought after tax debt settlement options – Offer in Compromise.
To bring a control over unscrupulous practices, the Federal Trade Commission (FTC) has passed a new set of rules that will safeguard the consumers from being a victim of the scam debt settlement companies and help them differentiate between the good ones and the bad ones.
There are various ways in which you can get relief from the debt that you are grappling with; but how do you choose what is the right method for you? Here is a comparative analysis on two of the most common methods – debt settlement and debt consolidation.
Credit card debt settlement companies negotiate with credit card companies get into an agreement where a certain percentage of your credit card debt is waived off or the interest rate on the debt is lowered.
Debt negotiation and settlement simply means a reduction in your debt payments, provided you pay a monthly minimum, pre-settled amount. Instead of worrying about the full amount, you just have to make monthly payments, and your debts can be reduced to as much as 50%!
Troubled by mounting debts? Thinking of filing for bankruptcy as your absolute last resort? At the same time considering debt settlement options? But unable to decide on which one will be better for you? Here is how you should go about it.
Debt settlement companies, gather details about your outstanding debt details with different creditors, and then negotiate with these creditors and arrive at a consolidated settlement amount, which in most cases is lesser than the actual amount owed by you.