debt settlement payments

[very big girl]

ok so ive established that i don't necessarily need a loan to get a debt settlement, or do I? even the reduced amounts are more than I can afford. Do I have to pay it all once or is there anyway to negotiate a payment schedule? If I pay them what I can now and pay the rest later ( in payments) will they apply what i gove them to the negotiated amount or no? need answers quick!

[mycreditgroup]

Hello,

You can work out payment plans when negotiating a with creditors however, the longer you take to pay it off, the more it's going to cost you.

A typical settlement agreement is made anywhere from 1 to 4 payments spread out over 6 months +/-. If you go beyond that (6 months to a year) you're going to pay a couple points in fees. Below is and example using a random number of $20,000 of negotiated debt.

1 to 3 month payment plan: $2000.00 for 3 months totalling $6000.00 saving you $14,000

6 to 12 month payment plan: $834.00 for 12 months saving you $10,000

As you can see the monthly payment can be a lot less (per month) but in the long run you're paying an additional $4000.00 (and delaying the closure of these accounts) Obviously, if you have the resources get that debt off your back as soon as you can.