The Benefits of Debt Settlement
The biggest benefit to debt settlement: a much lower, single monthly payment that YOU determine and that YOU can afford. When settlements are achieved, you will pay much less than you initially owed to your creditors. This amount can be less than 50% of the original debt, which can end up saving you quite a lot of money in the long run.
Avoid Bankruptcy
Bankruptcy is a debt solution that will follow you for the rest of your life. The bankruptcy entry remains on your credit report for 10 years, but many loan, credit card, and job applications ask if you’ve ever filed bankruptcy. Settling debts with your creditors, can help you avoid filing bankruptcy and dealing with the consequences of a bankruptcy.
Relief From Overwhelming Debts
The goal of debt settlement isn’t to get over on your creditors by paying them only a portion of the debt you accumulated. So it’s unwise to rack up a large amount of credit card debt with the expectation of settling it all. Debt settlement is a hardship based program, so not everyone qualifies.
If you’re legitimately having trouble paying back what you owe, debt settlement can work in your favor. Once your debts are settled and paid, you are debt free. This can be achieved much faster.
Repay Your Debts in Less Time
Typically, debt are repaid in 24-60 months, however everyone’s situation is unique and different. This is much less time than you’d spend paying back your debts normally. It might take decades to pay off debt if you stuck to the original repayment schedule.