Several friends and family have told me  what to do in situations like: "I can not pay my credit card", "the interests are eating me", "I can not stand the offices of collection "

And, once I've heard his whole story, we always get to the same question "how can I get a debt forgiveness?

If you have not heard the term before, I'll explain what it is:

What is a debt forgiveness?

Legally speaking, it is the forgiveness of a debt. It sounds like something many expect, in fact, several make the mistake of waiting for many years without paying with the idea that their debt will be eliminated. Obviously that never happens.

 

There are different reasons why a creditor could forgive a debt:

 

Volunteer Both parties reach an agreement and the creditor decides for his own pleasure to waive the collection of the amount owed.

 

Forced. When some legal process is filed against.

 

Partial. It is achieved through discounts that are negotiated between the creditor and the creditor.

 

Mortis cause. It occurs in case of death of the debtor.

 

Which is the best option?

 

To begin with, no bank or collection office would give up the total amount of money owed to you. As for the other alternatives, if your record is in good condition, no type of debt cancellation is eligible for you, in that case you better choose to consolidate your debt.

 

If you find yourself in an opposite situation, where you have stopped paying and are looking for a cancellation, you should:

 

Partial payment of the debt.

 

If you find yourself stuck in the "I can not pay my credit card", using this resource will allow you to cut the total debt and pay less than what you had as a total balance. This partial payment is very variable, since everything depends on the negotiation that is reached with the party involved.

 

One of the consequences of getting a discount.

 

When you make the payment of a debt through a negotiation, it is certain that in your credit history you will find a brand that says code 97 or removes. This means that the total payment of the debt was not made, but that it has already been settled.

 

Will you be denied credits if you pay with removes?

 

Yes, it is one of the disadvantages. However, if you pay your debt with the help of Solve your Debt, there is an opportunity to rebuild the credit history. How? It offers the best customers a credit to suit you, this means that you can pay without problems and help you get better grades on your credit report.

 

How to negotiate a settlement: on my own or with help?

 

Normally when the debt is not paid or the arrears begin, the bank or the collection office, they get in touch with the person who owes them. It is true that you can negotiate with the financial institution, but the objective is not always achieved.

 

As a tip, if you decide to negotiate on your own:

 

Pay attention to everything you are listening to.

 

Read each one of the proposals that you make.

 

Make numbers, get the accounts before signing.

 

Be clear and ask them to be transparent with you.

 

I have known customer stories where for some reason the instructions received were not clear or charged more than they should, so they do not manage to close their accounts correctly. This causes the debt to continue generating interest.

 

When you go with a credit repair, the road is safer and you will have as a guarantee that while you make your sections in time, a group of specialized negotiators will contact the necessary people so that the best discount is achieved without problems.

 

Do not forget the debt settlement letter.

 

When a credit card account is closed, it must be in zeros. In addition to seeing your account statement that is already completely clean, it is important that you notify the bank. You can do it by phone or by attending the corresponding bank.

 

Once it is clear why you want to close that account, you can ask the institution to provide you with a document (settlement letter) stating that the debt you had has already been settled.

 

All banks are required to make the termination letter, after you have been notified that your debt has been settled, you must request it. The approximate time you should wait is 40 business days.

In case you do not get your settlement letter:

 

It does not usually happen, but if this is the case and the corresponding institution does not grant the termination letter, you must receive another document that also indicates that your account is already paid.

 

If this does not happen, you can approach the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF), which is the government institution that regulates the performance of financial institutions. Same that can guide you in any doubt you have.