The goal of passive income is to earn money while you sleep. This is how to get your assets working for you. You invest time in building something upfront that will generate income down the road with little effort on your part. Building a business that requires time upfront but allows you to work less as the business gets going is a great way to generate passive income. Investing in financial products that produce dividend income or interest income and appreciate in value over time is ideal.
A debt settlement is entered into by a borrower when they lack the capacity to pay the outstanding amount of debt to their creditors. Instead of declaring bankruptcy, the borrower may attempt to reach a debt settlement with their creditors.
In a debt settlement, the borrower may engage with a debt settlement company, who would act on the borrower’s behalf. The typical process for a debt settlement is as follows:
The borrower explains their financial situation to a debt settlement company.
During the process, the debt settlement company would advise the borrower to stop making payments to their creditors and instead make payments to the debt settlement company (albeit at a lower payment rate).
The debt settlement company would put the payments made by the borrower into a savings account.
Once the savings account’s reached a certain threshold, the debt settlement company would engage with the borrower’s creditors to negotiate a debt settlement.
If negotiations are successful, the debt settlement company would retain a portion of the money in the savings account (it is collected as fees by the debt settlement company) and distribute the remainder to the borrower’s creditors.
Need more information?
Please email us and our support staff will contact you back