Whois & Analysis for freedomfinancialnetwork.com

Debt settlement, also known as debt arbitration, debt negotiation or credit settlement, is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full.

During a negotiation period, all payments by the debtor are made to the debt settlement company, which typically withholds payments to the creditors, even if the debtor has paid a lump sum or made payments.

Once all the debtor's accounts are in default due to this non-payment, the debt settlement company has leverage to force the debtor to accept a reduced lump sum payment as settlement.

The debtor's credit rating goes down significantly due to the default, especially if the debtor was not behind on payments before the negotiation period commenced.

Even though the accounts are "settled," the default appears on the debtor's credit record for seven years.

Nevertheless, some debtors prefer this method of debt reduction over bankruptcy.

In finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment.

A mortgage loan, also referred to as a mortgage, is used either by purchasers of real property to raise funds to buy real estate; or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged.

The loan is "secured" on the borrower's property.

This means that a legal mechanism is put in place which allows the lender to take possession and sell the secured property ("foreclosure" or "repossession") to pay off the loan in the event that the borrower defaults on the loan or otherwise fails to abide by its terms.

The word mortgage is derived from a "Law French" term used by English lawyers in the Middle Ages meaning "death pledge", and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure.

Financial independence is the state of having sufficient personal wealth to live, without having to work actively for basic necessities.

For financially independent people, their assets generate income and/or cash flow from dipping into the assets that is at least as great as their expenses.

For example, a person's quarterly expenses may total $4,000.

They receive dividends from stocks they have previously purchased totaling $5,000 quarterly, while also having more money in other assets.

Under these circumstances, a person is financially independent.

A person's assets and liabilities are an important factor in determining if they have achieved financial independence.

An asset is anything of value that can be liquidated if a person has debt, whereas a liability is related to debt, in that it is the responsibility of one possessing it to provide compensation.

(Homes and automobiles with no liens or mortgages are common assets).