Today, debt settlement is a common practice followed by the banks to recover unpaid debts. Despite debt settlement is not a profitable deal for the banks still it provide some relief to both bank and the debtor.
Going for the debt settlement is always a great opportunity for the debtor to peacefully and politelyget rid of the burden of excessive debt and live a stress free life. But there are few important things to be taken care before going for the debt settlement.
First thing is that a debtor must not disclose their additional sources of income to the bank. A bank agrees for a debt settlement because if they find that the debtor has no substantial source of income through which he could repay the debt. If you discover your additional sources if income then bank would probably ask you to provide complete details and if bank finds that you are capable enough to pay off your loan then they would not probably initiate debt settlement process rather they will force you to repay loan with full interest.
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