What to Do After Collecting Money from a Full and Final Settlement
When you’re trying different methods, or have decided on at least one solid method, to help you get out of debt and put you on a stable financial track once again, you’re already setting yourself up for success.
It doesn’t matter what option you’ve chosen to come up with the money to repay your debt. If you have, however, chosen the full and final settlement, the following steps as per what you should do next are quite simple.
When we examine our household’s belongings, as well as all our personal items, we generally get a rough idea of what everything with a proper value, has in our lives. By accumulating your household costs, you’ll easily be able to establish which assets you can sell to generate more money.
In the case of having more expenses than you have income, you’ll be able to keep the money and add to your income, to ensure you have enough to cover your monthly expenses, all while repaying your creditors.
You have options to repay your debt
There are a few ways you can go about repaying your debt. You can either pay your debt in full, should you have as much money available after selling your possessions and valuables.
You can also choose to repay it by offering a single lump sum to each of your creditors and present it as your full and final settlement.
Apart from the options above, you can also offer your creditors a lump sum, that will form apart of your payments towards your debt while continuing paying a reduced amount.
Now, of course, it’s much better to pay off all your debt with a lump sum, all at once, as your creditor might offer you a discount for offering to pay your debt in full. This option also supports reduced interest rates.
If your assets don’t fully cover your debt, you may offer your creditors a percentage of the amount you owe to all of them. It means you’ll divide the amount you’ve accumulated, evenly amongst creditors. If the amount leans more towards the amount you owe, they’ll be far more likely to accept it.
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