Debt Settlement and How it Could Help You.
If you are suffering under a debt burden and can’t get out on your own, it is time to consider applying for a debt settlement. With a debt settlement, a debt specialist negotiates with your creditor for debt repayment or a reduced debt amount that enables you to pay the (reduced) amount to clear the debt. You may pay the amount from your regular wages or from sale of assets; you may also be eligible for a debt consolidation loan. Here are the 3 major benefits of debt settlement.
Benefit #1 – Relieve the stress of being in debt
Just having that first free consultation with a debt specialist will start to relieve the burden of stress you have been living under while being in debt. The hardest part about debt is that it can make you feel like you have no control and no power. Being proactive in starting to figure out what type of debt settlement is available to you can relieve your stress and make you feel better than you have felt in years. Once you have put the settlement in place, you will not believe how much better life will seem.
Benefit #2 – Start to repair your credit report
Using a debt settlement to recover your finances is also going to help rebuild your credit rating. This is another reason why choosing a debt settlement over filing for bankruptcy is a good idea. With bankruptcy, the debt is cleared off your report but the bankruptcy remains listed for several years. While future creditors cannot see the original source of the debt, they can very easily see that you declared bankruptcy and getting approved for any credit will be hard. With a debt settlement, your credit report will reflect that while you may have paid your amounts late, you did pay them off. The debt settlement loan payments can be reported as timely payments on the report to increase your rating.
Benefit #3 – Increase your available cash
What can be surprising to people is how reaching a debt settlement can quickly begin to put money back into your pocket. You are probably not as aware of how much a daily financial strain trying to keep up with all of your debt bills has been. To reduce your payments to one bill only will significantly increase the amount of cash on hand you will have. You will still have to budget adequately to meet the debt settlement loan payment, but it will be easier than paying to ten companies or several debt collectors. Another bonus is one payment is easier to keep track of and there is less chance of a payment bouncing against your account. Sometimes, the worse part of trying to pay a bill is not being able to know when that payment will be cashed. If money is tight already, one wrong move can really upset the apple cart. Debt settlement makes it easier to protect the money in your bank so it is used for the right thing.
As you can see, the benefits of debt settlement make the practice worth while. Talk to our debt management experts about what we can do for you.