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Platinum Rapid Funding Group Business Debt Settlement

For a business to thrive, you will find that the owner is willing to do everything at all cost to remain active on the market and beat other prospective competitors. Most enterprises survive by loans, but to some extent, some have been overwhelmed by numerous debts whenever they turn left or right. The first thing that may come into your mind is to turn to a debt settlement company to help lessen the burden of the money you owe. Here are the highlights of what this article will answer.


1. What is a Business Debt Settlement?
2. How does Debt Settlement work?
3. What are the pros and cons of debt settlement?
4. What are the alternatives to debt settlement?


What is a debt settlement?


A debt settlement is a program mainly offered by third-party companies to help you negotiate to pay a less amount of money that is typically less amount of money you owe your creditors.


How Debt Settlement Works


Debt Settlement companies act as financial mediators between you and your creditor. They negotiate the debts you owe your creditors on your behalf, with the primary goal focusing on help you pay a lesser amount of interest. The debt settlement company and your creditor(s) may reach an understanding. For this, the prompt action you must take is to comply with the terms and conditions. You are supposed to pay the creditor or the debt collector for the agreed amount they reached as per the previous agreement. The deposits you make go to an account under your custody but are administered by an independent third-party. However, the debt collection company may hold you from making payment further until a debt settlement action is in place.


If you are unable to settle your pending debts at all, the agency is allowed to access the borrower’s monthly income and list of expenses to calculate the option of how you’ll pay the money. Throughout this process, you are supposed to bring along proofs to back up everything.


After the contract is reached, you can begin making one or two payments to the creditor without forgetting to settle the fees you owe the debt settlement company. You should also not cast all your hopes up, as the chances of your creditor refusing to negotiate with the debt settlement company are high.


Pros and cons of a debt settlement


Before engaging a debt settlement company, it is vital to familiarize yourself with the benefits and burdens of debt settlement. It will allow you to make an informed decision that is not bound to regrets later. It also helps you avoid falling victim to debt relief scams.




1. It is simple to settle, and it helps lower your debt amount.
2. It will help you escape bankruptcy and its consequences
3. Debt settlement will help you from dealing with harassment from your creditors and collectors.




Debt settlement isn’t a walk in the park, as you might have thought. It comes with a lot of downsides than the benefits.


1. Your creditors may not agree to negotiate


Creditors are human beings, and by nature, they may have they may wake up on the wrong side of the bed. If they are out to collect their money, nothing may hold them back or convince them regardless of the third-party.


2. It may impact your credit score


There’s always a penalty involve when you fail to settle your debts in time. You may face probation, and within a stipulated time of, let’s say a minimum of seven years, you will be refrained from borrowing a loan, mortgage, etc.


3. You could end up in more debt


The repercussions of debt settlement are that you may end up saving a small amount of money. If the debt settlement company manages to convince your creditor or creditors if they are more than two, then you will have to settle all of them at once.


To avoid all these, you can choose to get professional counseling by engaging with certified professional credit Counselors. They may help you get out of debt in a nutshell. In turn, you may get enough knowledge on how to manage debt and stock your predicaments by exploring the available options.


Alternatives to Debt Settlement


1. Negotiate your settlement


If you want to save yourself from many financial debts, consider talking to the creditors yourself. After all, it’s a matter of dialing the phone call, and anybody can do that correctly without a struggle. It may not settle a lump sum, but at least you are guaranteed that they might lower their interest rates to enable you to pay them as fast as you can.


2. Seek Nonprofit Credit Counseling


Most businesses may fail to earn enough to cover existing loans. What they may lack is ways of managing their finances appropriately. Nonprofit credit counseling options might do them good. It will help you learn ways of managing your business finances by weighing the options available to avoid future risks.


3. Consider signing for Debt Management Plan


After your counseling sessions, it is possible to get convinced that a debt management plan will work for you. If this is so, signing up for it would open doors to greater rewards. The debt management plan will help you settle your loans in a shorter duration of years at lower interest rates. The counseling agency would allow you to make payments in their account for once and all engagement instead of paying monthly to your creditors.


4. Cultivate a strict Budget


Managing debts on your own should be the first forward step you need to take. You need to create a strict budget that would work for you. Reduce certain expenses, do away with luxuries as they are not a priority. If you find it hard to plan your budget, you can opt for many free budgeting tools and calculations to help you start. Budgeting tools will help you monitor your spending habit and compare it with your income and residential area.