fbpx

What Types of Debt Can Be Negotiated?

Almost everyone finds themself in debt at some point in their lives. Sometimes that debt can grow to be unmanageable before we even know it. The first question many of us ask is, “how did this happen?” If you find yourself in this situation, your second question should be, “how can I get out of this?” Fortunately, companies like ACCS can help. But the first thing to understand is that not all debts are equal. 

Types of Debt

 Most debts fall into one of two categories: secured debt or unsecured debt. Secured creditors issue secured debt. This type of debt has an asset or collateral tied to the debt and its repayment. For example, think of a mortgage or an auto loan—secured creditors loan people money to help purchase these items on the condition that if the debt is not repaid, the creditor can repossess those assets. Often, terms such as the interest rate and the loan length can be discussed and even negotiated before you take out the loan and purchase the asset. However, if you can’t keep up with the payments for these assets, you can count on them being repossessed.  

The second type, unsecured debt, is money lent to you by unsecured creditors. Examples of unsecured creditors include credit card companies and stores that offer credit or layaway for purchases. If you receive credit from unsecured creditors, you do not have to use the purchase as collateral. These types of creditors can not physically take the purchase bought on unsecured credit should you fail to repay the debt. 

Understanding this difference is critical because some unsecured creditors will claim they are secured if you begin to miss your payments. While unsecured creditors can not force you to return any items you purchased with their credit, it is still wise to have as little of either secured or unsecured debt as possible.  

But what if you are struggling to make even your minimum monthly payments? Unsecured debt is often lent at higher interest rates which can cause your debt to spiral out of control, making paying it even more out of reach. Sometimes debt can be so overwhelming that you simply can no longer afford to meet the terms of your loan. 

Negotiating Unsecured Debt

While unsecured lenders want to continue making a profit by charging you interest and compounding your debt, they may be open to negotiating a settlement if you can no longer pay all of it off. Still, creditors would like to get some of what was borrowed, even if it might not be the entire amount owed. You can certainly discuss this type of debt settlement with your creditor directly. However, keep in mind that you’ll often be going up against a large company with a lot more experience with lending than you may have.  

Bringing a Trusted Partner to the Table

Lending companies have the people and the resources to devote to negotiating the best debt settlement deal they can for themselves. Shouldn’t you have those same resources? Luckily, you can. Companies like ACCS have a long history of helping people negotiate a debt settlement price that works for them and is often at a lower cost than they would have been able to negotiate themselves. 

Just look at our reviews on Trustpilot to see how our customers feel. We have gone to the negotiating table with hundreds of people like you and negotiated debt settlement deals that both you and the creditor can live with. 

How Does The ACCS Debt Relief Program Work?

After meeting with our experts, we will help you determine a monthly payment plan that works for you. These payments are typically much lower than what you are currently paying your creditor. As the money in that account grows, our team will begin negotiating with the creditor on your behalf. They will explain your situation and that you will not be able to pay off the debt entirely. 

Instead, our negotiators will work with the creditor to determine a one-time settlement payment that is often much lower than the total amount owed. Be prepared that your credit score will be affected after the settlement; however, you’ll be well on your way to improving your financial situation. With that debt no longer weighing you down, your credit score will recover and rise over time. 

Let the experts at ACCS help you reach financial freedom. Call (877) 820-2954 or click here to request your Custom Debt Relief Plan today!

 

Trending Solutions
https://americancreditcardsolutions.com/blog/cuales-tipos-de-deuda-se-pueden-negociar
Menu