Can Debt Settlement Fix Your Money Problems?
Debt settlement has been called the quickest and least expensive way out of debt for anyone seeking urgent debt relief.
As the term “settlement” implies, reducing the amount of money you owe to your creditors entails negotiating, either by you or your appointed representative.
It takes patience and persistence to reach an agreeable reduction amount. But if you’re confronting the need for urgent debt relief, and can still afford to make at least 60%-70% of your minimum monthly payments, the results can be life-changing.
How Much Can Debt Settlement Save You?
A good debt settlement company can reduce what you owe by 30%. Sometimes up to 50%.
While there are never any guarantees (including whether a credit card company will even negotiate with you), as a debtor you have one important advantage: Creditors know they are likely to recover more money through debt settlement than by referring your debt to a collection agency or law firm.
This gives you a solid foundation on which to open discussions with a creditor.
Should You Hire A Debt Settlement Company?
The next step is deciding whether to hire a debt settlement company, or to go it alone against your creditors.
It’s certainly possible to negotiate on your own. But be prepared to wait; negotiation can be a frustrating process. Just remember that perseverance can make the waiting worthwhile, and ultimately save you thousands of dollars while also eliminating your credit card debt at the same time.
But be aware that credit card companies play rough. Whether or not you are forced to file for bankruptcy is not their concern. If you don’t have the time, or are unsure about the strength of your negotiating skills, you might look to an experienced professional accustomed to the hardball negotiating tactics of creditors.
An experienced debt settlement company does not get intimidated. It also has the time it takes – up to two years sometimes – to make repeated calls to your banks and creditors to negotiate your debt down to sometimes 50% of what you owe.
Such a time commitment, combined with the experience of expert negotiators, enables them to strike the best settlement deal possible on your behalf.
Will Debt Settlement Affect Your Credit?
One of the misconceptions about the debt settlement process is that it accelerates the decline in your credit score.
This is not typically true. Although your score may initially go down, once your debt has been settled your score should start to increase quickly. In six months your credit score will likely be equal to, or even higher than, what it was before the settlement process began.
Although debt settlement isn’t a one-size-fits-all solution, it carries distinct advantages.
It’s not only a legal and ethical means of securing debt relief, it’s also a indispensable solution for those who otherwise can’t afford a credit counseling program, or who wish to avoid bankruptcy. Whether it’s right for you depends on your credit history, and the urgency of your financial circumstances.
If you’re still able to make at least 60%-70% of your minimum monthly credit card payments, a debt just might change your life.
In addition to its ability to make you debt-free within 24-48 months – faster than any other debt-relief option available – debt settlement can help you shed your burden of debt and regain control of your finances.
Level Financing’s credit counseling team invites you to develop a customized plan of attack for wiping out your entire credit card debt and lowering your monthly payments to a fraction of what they were – in a fraction of the time it might take for you to do so on your own.