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This is a very interesting question and why we at Nationwide Debt Reduction like to cover it in detail. Basically there are two types of debt that people carry. There is secured debt and unsecured debt.
Secured debts include things like your home or the vehicles that you drive. These debts are "secured" by the bank that is doing the lending. Therefore, if you miss payments on your house, the bank can come in and foreclose on your property and take it away from you. The same can be said about your vehicles. If you still owe money on them, the bank is still the "lien holder." Until such time that you pay off the note on your vehicle, if you fail to make payments on the note, the bank could (and probably will) come in and repossess your vehicle.
Nationwide Debt Reduction cannot negotiate with banks when it comes to secured debt. They have your house or cars as collateral for the loan they made to you, and will come and "take away" whatever you fail to make payments on.
Here is why we are the Preferred Debt Relief and Debt Reduction service in America
- You can become free of credit card debt once and for all.
- You can receive immediate debt relief and no more creditor phone calls.
- We negotiate and settle your debt on your behalf.
- 15 years of helping hundreds and hundreds of clients across America.
Please call us toll free at 800-890-6658 for a Free Debt Relief-Debt Reduction Consultation.
Or use our Debt Relief Getting Started form.
Unsecured debt is just the opposite of secured debt. With unsecured debt, if you cannot make the payment on the "loan" the bank cannot come and take anything away from you. Therefore, credit cards, medical bills, personal loans, notes from reposed vehicles are all considered unsecured.
These are the loans that give the debt settlement companies the leverage to come in and negotiate a settlement for a fraction of what you owe.
Why would a bank do this? To begin with, they do not want you to file for bankruptcy. If you filed for bankruptcy, the bank would get nothing. They would much rather get "something" rather than "nothing." In addition, most banks know that they have already made a lot of money from you already. Every time you used your credit card, the retailer has to pay the credit card company a fee (usually 2.5%). In addition, with all the interest that have charged you over the years, they know that not all of what you owe them in principal. Finally, banks will negotiate because from bookkeeping prospective, it is better to able to "account for something than nothing."
Therefore, any debt that is unsecured is debt that our debt relief company can help you negotiate and settle for a lower amount.
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