What is debt settlement?

Debt settlement is the process in which a customer negotiates with his/her creditor or lender and tries to lower down the debts in lieu of some compromises or payments.

It is a way to clear off your debts in one go and improve your credit score. So how can debt settlement help you and what is the process? We have made a detailed note on how debt settlement can be helpful and what are the steps involved in it, you can check our analysis below.

What is a debt settlement?

A debt settlement is a process in which you clear your whole debt in one go by offering the credit a one-time payment for which the creditor erases your remaining debt. But why would a creditor erase the remaining debt? This is because this process is usually used by individuals who cannot make the full payment and the creditors are worried that they won’t get any payment since there were none.

But why would a creditor erase the remaining debt?

This is because this process is usually used by individuals who cannot make the full payment and the creditors are worried that they won’t get any payment since there was no collateral on the credit.

In such situations, creditors prefer to take the half money than losing the full amount. For example: If you owe a creditor some $6000 and you offer to pay half the money in lieu of erasing the other half, then the creditor might agree and you would only need to pay half the debt and have your debt cleared off.

This process is a fairly simple one but, don’t get your hopes up because not all lenders advertise it but if you are truly spiraling into bankruptcy, then your lender would prefer to take what you can give. Although it has many advantages, it has a fair number of disadvantages too.

Since it requires you to pay a large sum of money in one go, you would need to consider where would you arrange this money for and if it would affect you in the upcoming months.

Another major drawback is that debt settlements show up on your credit report for 2-4 years and seriously lower your credit score and the chances of you getting a loan for the next few years.

Although it has many advantages, it has a fair number of disadvantages too. Since it requires you to pay a large sum of money in one go, you would need to consider where would you arrange this money for and if it would affect you in the upcoming months.

Another major drawback is that debt settlements show up on your credit report for 2-4 years and seriously lower your credit score and the chances of you getting a loan for the next few years.

The process of debt settlement

  1. This process is only valid for people who have no money to pay off their full debt and so in lieu of a large one-time payment, they try to erase their remaining monthly payments.
  2. When the negotiation starts, the creditor will consider how much it can get out of the customer for wiping away the whole debt.
  3. Once the creditor accepts a large lump-sum payment to erase the remaining debt, it will collect the payment on a debt instead of what might have been uncollectible otherwise.
  4. This settlement clears the customer of the full debt in exchange of a great lump-sum of money and a lot of consumers have found success with this method.

So if you feel that you are not able to pay that debt off from your account, then you can go ahead and negotiate with your creditor and try to close off your debt in some other way.

AFSCME Endorses Baricevic

Belleville, IL (September 27, 2016)—In another sign of growing support for his campaign against Congressman Mike Bost, Democratic congressional candidate CJ Baricevic has been endorsed by the American Federation of State, County, and Municipal Employees Council 31.

AFSCME Council 31 represents over 70,000 public sector workers in the State of Illinois.

As a labor attorney, Baricevic has represented Illinois labor in its battle against Governor Bruce Rauner’s budget cuts to education, health care, and social services.

In endorsing Baricevic, Eddie Caumiant, Regional Director of AFSCME Council 31, issued the following statement:

“The American Federation of State, County, and Municipal Employees strongly endorse CJ Baricevic for Congress. For hard-working families, there is a clear choice in this race. As a labor attorney, CJ has fought against Governor Bruce Rauner’s devastating budget cuts. In contrast, Mike Bost supports Bruce Rauner.

In Congress, CJ will fight for good paying jobs, a higher minimum wage, equal pay for women, and will protect the organizing rights of working men and women. In contrast, Mike Bost supports tax breaks for corporations who ship our jobs overseas, opposes raising the minimum wage, opposes equal pay legislation, and has opposed the organizing rights of working men and women.

The hard-working families of the 12th District will have no stronger champion in Congress than CJ Baricevic.”

Baricevic Calls on Bost to Stand up for Southern Illinois

Baricevic Calls on Bost to Stand up for Southern Illinois Against Rauner’s Veto of the MAP Grant Bill.

Belleville, IL (February 22, 2016) —CJ Baricevic (Bar-civic), Democratic candidate for the 12th congressional district, today called on incumbent Mike Bost to join him in opposing Governor Bruce Rauner’s veto of the MAP grant bill that would provide needed financial assistance to thousands of college students in Southern Illinois.

“Bruce Rauner’s veto of the MAP grant bill endangers the ability of thousands of Southern Illinois students to attend college. The governor’s unwillingness to compromise on the budget is placing higher education in Southern Illinois at risk for hard working families. I am calling on Congressman Mike Bost, who is a political ally of the governor, to stand up for Illinois students and urge Governor Rauner to stop harming Southern Illinois,” said Baricevic.

“So far, Bost has refused to stand up for the universities, colleges, and college students in the 12th Congressional District. We have students in this district who cannot afford to pay for their education and continue to leave this state to pursue that education elsewhere; this is unacceptable.  Republican Governor Bruce Rauner is withholding vital funding to colleges and universities and their students. He is using both the institutions and their students as pawns in his war against the unions. Mike Bost is refusing to stand up for his constituents in this fight.” Baricevic said. “I support the unions, the students, and every higher education institution in Southern Illinois against Bruce Rauner’s agenda that destroys working families. It is a shame that Mike Bost is allowing his Republican leader to harm Southern Illinois by remaining silent.  This continued failure of leadership at our state and federal level serves no one but Rauner’s political agenda – and Mike Bost is playing a key role on behalf of Rauner in Southern Illinois.”

The Illinois Student Assistance Commission estimates the bill would help fund MAP (Monetary Award Program) by providing grant assistance for 125,000 to 130,000 eligible students, with the average award around $2,700.

Durbin Endorses Baricevic for Congress

Durbin Endorses Baricevic for Congress

Belleville, IL—March 7th, 2016–Illinois Senator Dick Durbin today endorsed Democrat C.J. Baricevic (Bar-civic) for the 12th congressional  district seat currently held by Congressman Mike Bost stating that Baricevic would be a “champion for middle-class families who deserve a Congressman who fights for them.”

Durbin has represented Illinois in the U.S. Senate since 1997.

In endorsing Baricevic, Durbin said, 

“With strong blue collar roots in the District, C.J. Baricevic knows families are struggling. C.J. shares my belief we need to improve the lives of hard working families, starting with making college more affordable, reducing the cost of prescription drugs, raising the minimum wage, and insuring equal pay for women. C.J. also agrees we need to strengthen the mission at Scott Air Force base and improve the care of our veterans. The people of the 12th District will have no stronger advocate in Congress than C.J. Baricevic and I enthusiastically support his candidacy.”

In receiving Durbin’s endorsement, Baricevic said:

“I am honored to receive the support of Senator Durbin. For over 18 years, Senator Durbin has been a champion for the middle-class and our veterans. From opposing the war in Iraq to working to reduce the federal budget deficit, Senator Durbin has been a strong voice for reason in Washington. Senator Durbin has never forgotten where he comes from or who he represents—the people of Illinois. I look forward to working with him to build a stronger America that works for everyone.”

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Paid for by Friends of C.J. for Congress

Bost: No Friend of Hard Working Families

Bost:  No Friend of Hard Working Families
Supports Trade Deal That Will Cost Jobs & Lower Wages
Opposes Increased College Aid; Current Medicare System

Belleville—Upon winning today’s Democratic congressional primary, CJ Baricevic said Congressman Mike Bost (Ill-12th CD) was “no friend of hard working families” and that
Bost’s support of unfair trade deals, like the Trans-Pacific Partnership (TPP), would cost the District thousands of jobs and lower wages.

Bost voted for TPP fast-track authority on June 16, 2015, which passed 218 to 208.

“While the top 1% has gotten richer, too many families are struggling. I will be a Congressman who puts the interests of hard working families first—not Washington special interests,” said Baricevic, who was born in the District, worked at Granite Steel, and is a labor attorney.

“Unlike Mike Bost, I will oppose trade deals that are good for Wall Street and big corporations—but are bad for working families. Our district lost 4000 jobs to unfair trade in 2015, yet Mike Bost voted for the Trans–Pacific Partnership—which will ship even more jobs abroad and lower wages here at home,” said Baricevic.

A March 3rd report by the Economic Policy Institute, a non-profit independent think tank, showed that due to currency manipulation and unfair trade practices by 11 Pacific Rim TPP countries, Illinois 12th congressional district lost 4000 jobs in 2015. www.epi.org/publication/trans-pacific-partnership-currency-manipulation-…

Baricevic said college affordability and protecting Medicare would also be major issues in the race against Bost.

“Unlike Mike Bost, I support expanding Pell Grants and lowering interest on college loans because too many families and students are going into massive debt to pay for college. And I oppose Mike Bost’s effort to turn Medicare into a voucher system, which would place seniors healthcare at risk and end Medicare as we know it,” said Baricevic.

Costello Endorses Baricevic for Congress Belleville

Costello Endorses Baricevic for Congress

Belleville, IL—Feb. 28th, 2016–Saying that “CJ Baricevic will fight for working families, good paying jobs, and support the mission at Scott Air Force Base,” thirteen-term former area Congressman Jerry Costello today strongly endorsed Democrat CJ Baricevic (Bar-civic) for the 12th congressional district seat currently held by Congressman Mike Bost.

In endorsing Baricevic, Costello said, “CJ Baricevic shares my belief that we need to end the partisan bickering in Washington and put the interests of working families, not politicians and special interests, first. CJ is also committed—as I was—with creating jobs and rebuilding our roads, bridges, and infrastructure to build a strong America for the 21st century. With strong roots in this District, CJ will bring energy, fresh ideas, and an unwavering dedication to improve the lives of working families. I enthusiastically support CJ Baricevic for Congress.”

Congressman Costello represented this region in Congress from 1988-2013.

“It is an honor to receive the endorsement of Congressman Costello,” said Baricevic in receiving Costello’s endorsement. For over two decades, Congressman Costello worked tirelessly in a bi-partisan manner to improve the lives of the people of this District. His accomplishments were many. Thanks to Congressman Costello, tens of thousands of area jobs were created, many of the roads, bridges, and mass transit we travel on today were built, Scott Air Force Base was strengthened, and airline safety was improved. We are a stronger and safer country because of the work of Congressman Costello and I am most thankful for his support.”