You must have heard the sentence – “Money can not buy happiness”. Though I do not know who said this, but I am sure they must never have faced a debt. Money may not buy happiness but it can buy things and can create an environment that we need to be happy. Lack of money affects our everyday life. There are times when we need more money than we earn. Borrowing that money leads to debt. Debt affects our life in many ways. Once you are in debt, you find ways to repay that debt. Debt settlement is one way out of all this. There are too many misconceptions and doubts around debt settlement. It is necessary to overcome this irrational fear. Below are a few debt settlement facts to comfort your fear.
What are Personal Debt Settlement Services?
Debt settlement is a debt repayment method in which you negotiate with your creditor to accept a partial payment instead of the original balance that you owe them. If negotiation works then you pay only a percentage of the original amount and the rest of the debt is canceled. How much will you pay depends upon many things – your overall balance, financial situation, bank history, the reputation of the company you hired, and its negotiating powers. Nowadays, many companies provide personal debt settlement services.
Facts about debt settlement –
No overwhelming debt
You may have thought that one day you will pay all the amount that you owe but if you think rationally then it may occur to you that this is nearly impossible unless you win a lottery. Meanwhile, your debt will keep piling up. It is not only unwise but foolish to let the bills pile up while you can settle the debt. Debt settlement saves you from overwhelming debt. Once you are debt-free, you can start building your life again.
Though debt settlement is not an overnight process it is much faster than other methods of clearing your debt. Normally two to three years is the maximum time that debt settlement takes which is very good contrary to other methods which normally take a decade to clear your debt.
Apart from being a fast process, debt settlement is also a cost-effective process. If you get a partner with a good reputation, they may negotiate with the creditor to pay only 60% or even less than that. A reputed debt settlement company can provide you a better financial future which you may not even have imagined.
Many people find or at least make it sound like bankruptcy is better. But the truth is while there are few advantages to filing for bankruptcy, there are more disadvantages to choosing this extreme method to clear your debt. Bankruptcy follows you for your life. It not only remains in your credit score for ten years but also affects your chances in the future.
Debt settlement helps you avoid bankruptcy. Contrary to bankruptcy, once debt settlement is done, it remains on your credit report only for seven years. After that, there is no public record of your debt settlement, and your financial record is as good as new.
One of the best features of debt settlement is that you do not need to run here and there to file various papers. Companies that provide personal debt settlement services provide you with everything in one place. You can settle all your debts in one go. A debt settlement company can clear all your debts including credit card debts, finance debts, etc.
A track record of success
Debt settlement has helped thousands if not millions of people. It has a very successful track record. Though you can choose to go for debt settlement independently that means without hiring any company but you must be extra careful. There is a high chance of fraud or scams because of a lack of knowledge and less negotiation power.
Though there are also some drawbacks associated with debt settlement but then which process does not have one? Debt settlement is simple, fast, cost-effective, saves you time and hustle, and most of all – one of the most trust-worthy processes trusted by millions to clear off their debts. Although most people hire some debt settlement company for the task, it is not impossible to do it on your own. If you have good knowledge about finances and the process, you are good to go.