What is Debt Settlement? It is what we do best!
Debt settlement is now widely considered as a middle ground, halfway between the lengthy process of credit counseling and the radical, final option that is bankruptcy.
It has gained popularity and acceptance as the most preferred debt relief route grounded on the following reasons:
- It is a better alternative to bankruptcy, credit counseling, or debt consolidation.
- It is fast, secure and cost-effective.
- It does not require valuable asset as collateral.
Debt settlement can help clear up your debt much more quickly than paying it off on your own. The debt negotiation process makes it possible to eliminate your debt rather than just ignore it and hope that it will go away.
A decision to seek professional help in managing your debt is not an easy one. That decision, when reached, should be supported by the best, most effective and affordable debt settlement plan available.
Why Seek Professional Debt Settlement Service?
The decision to seek professional debt settlement service involves a comprehensive process that would focus on the personal circumstances of a debtor client.
The potential result of a debt-free life far outweighs whatever inconveniences experienced along the way toward financial recovery.
Undoubtedly, it would be a valuable learning experience for the person involved.
How a Debt Settlement Program Works
Debt Settlement is the contracting of a third party to consolidate your unsecured debt like credit cards and medical bills, and to negotiate with your creditors to potentially reduce your debt by as much as 45-60% on average.
Unlike credit counseling agencies that aim only for a downward adjustment of interest rates, debt settlement companies can negotiate with creditors that all interest charges be waived.
In addition, debt settlement can potentially free you from debt in just 2-3 years, depending on the amount of your debt.
It is a faster and more efficient way to get out of debt compared to other debt relief options.
From this, we can glean that debt settlement is way ahead from other debt relief options in terms of value and benefits to consumers.
The Advantages of Getting Into a Debt Settlement Program
A great advantage of enrolling in a debt settlement program lies in debt settlement companies’ practice of consolidating all the debts owed by its clients and then negotiating a bulk settlement.
By doing this, an individual debtor’s total liability ceases to be the creditor’s only concern.
Creditors would rather take a settlement amount than collect absolutely nothing from a debtor. The settlement offer from a debt settlement company therefore becomes an attractive incentive to conclude a debt settlement agreement.
Debt settlement companies may also negotiate the removal of a debtor’s credit derogatory remarks even during the early period of the debt settlement program — not after the agreed plan has been totally paid, which is usually the creditor’s requirement.
Of course, this depends on the professional relationship of your debt settlement company with your creditor. Nonetheless, it is definitely possible.
Finally, as the debt settlement program progresses, debtors will begin to see an improvement in their debt-to-income ratio or the balance between their income and expenses.
This could have a positive psychological impact on the debtor and strengthens his resolve to be debt-free once and for all.