Debt settlement usually takes place when a creditor consents to accept a sum that is less than what one owes in full. Once the creditor accepts that settlement, they can no longer harass one for the money.
Also one does not need to worry about being sued for that specific debt. However, debt settlement may seem like a nice deal, but it might be risky.
This is because credit may be destroyed because of it or it can take a long time to reach a settlement. On the other hand, it can be costly as well unless you choose to rely on an affordable debt collection agency like CreditQ.
How Does Debt Settlement Work?
Only after you have numerous missed or late payments, then the debt settlement become an option for the CIMSME in India.
If there is reason to think that one could pay the entire amount they initially agreed to – a creditor or collector might not accept less than they owe.
One will feel completely behind schedule, the credit scores will be destroyed, and the salary will not be sufficient to pay off the debts.
This is when debt settlement platforms in India like CreditQ can help as they specialise in the same task and assist to lower the debt.
What are the Risks Involved in Debt Settlement?
There are certainly risk involved which you must keep in mind before hiring the These risks include as follows
● Credit Might Take A Hit
When there is a direct debt payment to the settlement account is made, you will become in default on your accounts.
The credit reports contain delinquent accounts and debt that lenders have written off for a period of seven years.
● Encounter Penalties and Interests
There are great chances of the CIMSME in India being assessed with late fees and penalty costs. The chances of the debt continuing to accrue interest will also be higher.
● Pay Fees
Based on the balance of the debt when you registered it in the programme, the majority of the businesses might charge a percentage of each debt they settle.
On the other hand, additional fees might need to be paid in order to maintain the dedicated account set up.
● Other Risks
There are chances of other risks as well including the forgiven debts becoming taxable or having no such guarantee to encounter success.
The Leading Debt Settlement Service Provider
As there are a plethora of options available, you may find it overwhelming to choose the right debt settlement services provider.
In this case, you can choose to depend on CreditQ which is a renowned and reliable platform. They make sure to eliminate all types of risk and assist you in every way possible.
Being the top debt settlement platform in India, they ensure your CIR is generated and you are given up to date information about your credit reports. Also they make sure you are left with no defaulters and experience smooth cashflow.