|
|
|
|
|
|
| |
|
Debt Settlement for
Car Repossessions |
|
|
|
|
|
Call Today: (877) 274-1260 |
|
If you
successfully complete our program, it’s possible
that you’ll enjoy these benefits: |
|
Settle your debts for less than you owe |
|
|
(read here for full details about how much you can expect to save) |
|
Resolve your unsecured debts in 18 to 60 months |
|
|
(read here for full details on how
long our program lasts) |
|
No Up Front Fees - Don't Pay Till You See Results! |
|
|
|
|
| |
 |
| |
| Debt Negotiation and Car Repossessions |
|
|
|
|
There are a number of consumers who aren’t aware of the differences
between a secured and unsecured debt. While this may not be a
problem for someone without credit, the average consumer seeking a
debt relief solution certainly needs to be able to discriminate between the two.
A secured debt means that a consumer has attached collateral, or a
valuable asset, down on the loan or line of credit they have taken
out to provide the lender with security in the case it cannot be
paid off. For example, a car loan is a secured debt. If you fail to
make your car payments, the lender has the right to repossess the
vehicle, sell it, and collect the proceeds of the sale to account
for the money you still owe them. On the other hand, an unsecured
debt has no collateral of value attached to it. For example, credit
card debt is considered to be unsecured. With that being said, many
consumers who are struggling to make their car payments are facing
the possibility of a repossession of the vehicle. Debt settlement
companies, while they cannot enroll secured debt into their
programs, can still be of assistance to any consumer who has in fact
had a car repossessed by the lender.
As previously mentioned, when the lender repossesses the vehicle,
the car is then sold and the proceeds are collected to make up for
the debt owed by the consumer. However, the vehicle rarely sells for
the same amount that the consumer purchased the car for. As a
result, the lender does not receive the necessary amount of money
owed to them. Therefore, the repossession is not the end of the line
for the consumer in terms of making up for their debt. At that
point, the lender will send the consumer what is known as a
deficiency balance. In simple terms, the deficiency balance is what
the consumer still owes the lender. To understand more specifically
how the deficiency balance is calculated consider this example:
Consumer A purchased a vehicle for $20,000 dollars and that vehicle
was repossessed by the lender after several payments were not made.
The lender sold the car for a total of $10,000 dollars. As a result,
the deficiency balance is what is left over and still owed, in this
case $10,000 dollars.
At this stage of the game, the deficiency balance is now considered
to be an unsecured debt, because the vehicle has already been
repossessed and there is no collateral attached anymore. Now a debt
settlement company is able to work on your behalf to negotiate the
balance of that deficiency down for you, assuming funds are
available and the creditor is willing of course. Unfortunately,
often the vehicle is worth more than what it is sold for, and the
deficiency balance is realistically higher than it should be.
|
|
|
|
|
|
|
|
|
| |
| |
|
|
