A personal loan settlement is a way to pay back a small percentage of what you owe on a personal loan. Since banks and other institutions generally don’t offer this option easily, many people turn to third-party services like Loansettlement.com for assistance with settling their debts.
Why is it possible to settle your personal loans?
Personal loan settlement is possible because they aren’t secured collateral so it’s possible to stop making payments and accrue debt. Unlike some other loans, say student loans which are guaranteed by someone, usually a family member, personal loans don’t have that guarantee also; so it is feasible to negotiate and settle with the lender.
When you make an agreement to settle your debt for less than the full amount owed (the “settlement” amount), this will be reported on your credit report as a “settled” account. A settled-for-less account is better than having an unpaid account, so it can help improve your credit score in the long run. However, settling for less than the full amount will still lower your credit score.
How to negotiate a personal loan settlement with your lender
Once you’ve made up your mind to settle for less, there are a few steps you need to take in order to make it happen. You’ll start by getting in touch with the bank or lender who gave you the personal loan. Let them know that you’re interested in settling for less than what is owed. While the lender may not easily agree to such negotiations, you may sometimes succeed if loan amounts are small.
If negotiations fail, you can turn to a professional settlement service for help. Settlement services will negotiate with the lender on your behalf and then charge a percentage of what is saved as their fee.
The benefits of settling a personal loan debt
If your lender does agree to settle for less than what’s owed, you may be able to save a substantial amount of money on your personal loan. Even if you owe Rs.500,000, you may be able to negotiate a settlement for as little as Rs.250,000.
The process of settling is much cheaper than if you were to default. You can also make monthly payments on what you can actually afford in order to show your lender that you’re creditworthy and responsible, which may increase the chances of getting a loan offer in the future.
Personal loans are easy to get but hard to pay off when you don’t have the necessary funds. Settling your debts is a smart way to make monthly payments more manageable and reduce long-term costs by avoiding added interest and penalties.
What to do if you can’t pay your personal loan debt?
If you can’t afford to pay the full amount of your personal loan, then you may want to consider a settlement. For secured loans like car loans, if you still owe money on your car or other property that is used as collateral for the loan, these items may end up being repossessed. This means that they will be sold at auction in order to pay off the balance of your loan. However, for personal loan, you can consider loan settlement as there is no risk of repossession of any asset.
If you are considering getting help with settling a personal loan, consider Loansettlement.com! We are an organization that helps people get rid of their debt by settling for less than what is owed. Our company will negotiate on your behalf with your bank or lending institution to make sure that you can afford to pay for your personal loan.
Conclusion
While some lenders don’t make it easy to negotiate personal loan settlements, it is doable in most cases. While it will still be reported on your credit report, loan settlement is far better than not paying back the the loan and becoming a willful defaulter. Not only will it save you money, but it will improve your overall credit score over time.
If you are not able to repay your personal loan and want to settle it,we can help you to settle your loan at 50% or less.
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