A couple of years ago, I had to deal with a friend who needed to pay a debt of $10,000 to her sister-in-law, who was in a car accident.
The debt owed by the sister- in-law was a direct result of her own actions.
The sister- and her sister’s mother had agreed on a debt settlement, but the sister in- law was not able to pay it off.
The sister in law needed help to cover the difference between her loan and the $10k debt.
When I heard about this situation, I thought, “How do I help my sister- in- lama?”
I was inspired to write a blog post about debt settlement.
My sister-lama had made a bad decision, but she didn’t need to pay.
What is Debt Settlement?
Debt settlement is a debt collection process that helps people avoid debt default.
It can help you: Make payments on your debt, even if you are not able or willing to pay the balance.
Pay your bills in full.
Provide your sister- lame- in for the cost of the settlement.
Receive a copy of the agreement, or, if you cannot pay, pay a $5 debt to a debt collector.
You can also: Pay the debt in a lump sum, with the option to pay over time.
Give up your car, home, or other assets to the debt collector if you want to avoid a default.
Income-Based Debt SettlementThe income-based debt settlement program has been used by thousands of people to pay off debts.
You can receive up to $10 per debt payment in a 12-month period.
Debt Settlement PaymentsA debt settlement payment is a payment from one party to another.
It is typically a payment by check, debit card, credit card, or wire transfer.
It will be made directly from the person paying the debt to the person receiving the settlement payment.
To make a debt payment, the creditor or debt collector must:1.
Make a request to the debtor to make the payment.2.
Provide the debtor with a copy or other documentation proving that the debtor can make the debt payment.3.
Send a certified letter from the creditor/debtor to the creditor to make a request for the debt settlement payments.4.
Send the debtor a payment for the amount of the debt that is owed.5.
Pay the debt or pay the debt and interest on the balance within 90 days of receiving the request for payment.6.
Keep a copy, or make copies, of the letter, letterhead, or invoice that you sent to the borrower.
The debt settlement process can be difficult for people who don’t have the financial means to make an initial payment, but if you follow the steps outlined in this guide, it should be fairly straightforward.
For more information about debt payment options, including how to set up a debt resolution account, contact your financial institution.
Learn how to get started with debt settlement:How to Make a Debt Settlement PaymentUsing a Direct DepositDebt Settlement is one of the fastest ways to make money off your debt.
Here are some steps to follow to make your own debt settlement a success:1) Send the letter.
Send an email or text message to the account that you want the debt resolution to go to, such as your personal bank account.
You may also want to include the contact information of your bank, credit union, or financial institution, such an account number.2) Mail the letter to the following address:[email protected]) Send a check for the payment to:Bank of America, 2521 East State Road, Suite 200, Sioux Falls, SD 57107.
Bank of Americans may also direct deposit your checks directly into a debit card or credit card account.4) Check the balance on your account.
Check the payment you have received and mail the check to the address specified on the letter and the check must be received within the next seven business days.5) Wait for the money to clear.
Once the money clears, the bank will send the money back to you, or they will deduct a fee from the amount.
If the check is not returned to you within 14 days, the money will be returned to the bank and the credit card will be charged interest on your balance until you send it back.
The process can take anywhere from two to four weeks to clear, depending on the bank.
How to Start Debt SettlementWith debt settlement agreements, there are several steps you need to follow before you can start the process of making a payment.1) Fill out the form.
The form is a legal document, so it must be filled out and signed by the creditor.2).
Make the payment through the Direct Deposit method.
If you are using a debit or credit account, you will need to use the Direct De