The Benefits of Debt Settlement
Here are some of the main benefits of debt settlement:
1. It Allows you to Avoid Bankruptcy
Bankruptcy not only ruins your credit for up to ten years, it can also affect a company’s decision to hire you. The reason that companies look at your credit is that they want to make sure they are hiring someone trustworthy, especially if you are dealing with money or anything of a sensitive nature. Bad credit, as a result of bankruptcy, could also prevent you from being able to rent an apartment, obtain a mortgage, or get a loan for a car.
2. It Drastically Reduces Your Debt
Debt Settlement eliminates approximately 50% of your debt, so you may only have to pay a portion of the original debt. That’s a huge amount of savings! This provides you with the opportunity to pay off your creditors quickly and efficiently. Your creditors will likely settle because they would rather work with you than have you declare bankruptcy.
3. Reduces Escalating Interest
This is part of the reason you are so badly in debt, isn’t it? Every time you miss a payment or are late, your creditor can raise your interest rates and charge you outrageous fees. If you already owe a lot of money, then the interest and fees can amount to hundreds of dollars. Debt settlement eliminates the interest and reduces the amount owed by approximately 50%.
4. You Can be Out of Debt with 6-48 Months
Other debt management programs will decrease the interest rates you owe; however, they actually extend your payment plans. As a result, you actually pay more in interest and fees than you would have before. Yes. They temporarily help relieve the crushing burden of huge payments each month, but they are not a viable way to end the cycle of debt because you could be paying these debts off for 30 years. With debt settlement, your debts are drastically reduced, allowing you to pay them off in an extremely short amount of time. That brings us too. . .
5. You Can Get Out of Debt on Your Own Terms
Debt settlement is the only debt management plan that allows you to determine how much you want to pay each month and how quickly you can pay it all off. Debt consolidation and debt counseling both create set payments and schedules that you must abide by. When you file Chapter 13 Bankruptcy, the court often enforces a strict budget for you, and all your disposable income must go towards your debt. Debt settlement is the only plan that allows any flexibility.