Tobacco Settlement Money

Tobacco Settlement Money

Tobacco Settlement Money

Debt settlement is a common form of debt relief. As a consumer, you may have heard of the program, but you may not be familiar with the details. If you find that you are drowning in credit card debt (or any other unsecured debt), you need to make sure that you understand the mechanics of debt settlement before you decide to join a program.

Debt Settlement Basics

Debt settlement companies offer your creditors a lump-sum payment for less than the balanced owed in order to settle your debt. When one of your creditors agrees to settle, the payment has to be made immediately. (Sometimes the negotiated balance can be paid in installments.)

For example, let’s say you owe a credit card debt of $15,000. Through debt negotiation, if a debt settlement company negotiated a settlement of $7,000, the money will have to be paid immediately.