But what about secured debt settlement for things like mortgages, cars, student loans, etc.? Can the debt settlement strategy help a person burdened with these debts as well? You may be surprised to find the answer to that question is a resounding...YES...but not in the way you may think.
The secured debt can't be formally included into any sort of debt settlement program because the loan is secured with collateral. Your mortgage is secured by the house. If you don't pay your mortgage as agreed, the lender can simply foreclose. In the case of an auto loan, the lender can repossess the car and sell it at auction, leaving you owing any deficiency balance.
This is why most people see debt settlement as being limited to only unsecured debt. Unfortunately, those who see debt settlement in a limited way includes the consultants in the debt settlement industry. Their training has been limited to focusing on just unsecured debt, as opposed to a more holistic approach.
You may have heard of a concept known as "power payments." This is sometimes referred to as the snowball strategy, which works like a snowball rolling down hill. As the ball continues to roll it gains speed and momentum.
The concept is simple, you focus your energy and resources to pay off one debt at a time, while paying just the minimum on all the others. When that first debt is retired, you add the resources you had been paying on it to the next one in line until it is paid off. Then you keep repeating the process until all your debts are gone.
Here is how you can use this strategy with debt settlement.
Let's assume you are paying $400 each month into a settlement account. The plan shows that all your unsecured debt will be paid off in 36 months. At the end of the 36 months you will have $400 to do with as you wish. Now let's say you add that $400 a month to your car payment. If your current car payment is around $400 you are in essence doubling up on payments (the $400 you were already paying on the car, combined with the $400 you are now adding to the payment equals a new monthly payment of $800). This means your car loan will be paid off twice as fast (the snowball is gaining momentum).
Once the car loan is paid off, take the $800 and add it to the next debt you want to focus on. This might be your second car, studentloans, your mortgage or any other debt you select. Continue to repeat this process until all of your debts are gone and you are totally debt free!
By following this process you can use your debt settlement program as a springboard to a totally debt free and prosperous future. You may be amazed to find that the average person using this process can be totally debt free (including theirmortgage) in just a few short years as opposed to the decades it will take using conventional repayment plans.
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