Debt Settlement – When Does Debt Settlement Make Financial Sense For Me?
Debt settlement benefits can be so tough to find nowadays
. And in these very tough economic times, it's tempting to bury your head in the sand and hope that your debt problems will go away. Believe me, I have done that many times but ultimately I had to deal with my debts head on. How I managed it will be covered in this brief article so please read on.
I had tried several different options before I found a debt relief system that really worked for me. And the system that has worked extraordinarily well for me is debt settlement.
In a nutshell debt settlement involves renegotiating the sum of what you owe, often times to a lower amount to be repaid. Debt settlement is usually not accessible through the original creditor direct, but through a third party debt collection agency. Whoever you find yourself dealing with though, it is important to understand what is involved in terms of benefits and disadvantages.
Debt Settlement - The Advantages
One of the main advantages of having a debt settlement is savings inherent in having your debt reduce. It's not uncommon to see reduction of the total amount owed by more than 50%. With such huge potential savings it's very wise to seek debt settlement as an option.
Another advantage is the dramatic improvement you can see in your credit score. As your delinquent loans are removed from the system, your score will be restored to more favorable levels. You also get the added benefit of not having to deal with the debt collectors. Which as they say in that commercial is 'priceless'.
Debt Settlement - The Disadvantages
When dealing with debt collection agencies, there are a few pitfalls which you must try to avoid at all costs. The biggest one is having a part of your debt repackaged and sold on to another collecting agency. To avoid this make sure that the terms of any agreement are clearly laid out in writing.
Another pitfall to look out for is under reporting by the creditors. This happens where the creditor doesn't report the debt as being paid in full but as a settled debt. The obvious danger to this is that on recorded you could potentially owe the creditor if your payment is not adequately recorded as a payment in full.
There are potential more benefits and pitfalls which can be outlined here but no two debt situations are ever the same, as I am sure you can imagine. My advice would be to seek out detailed professional advice from competent debt management professionals. Most good and reputable debt consultancies will be able to give you a consultation in order to assess your specific needs. My advice is to try a few and see which one best suit your needs.
Final Note: Believe it or not, you can legally eliminate 50% or more of what you owe with debt settlement. However, the process can be overwhelming and frustrating. Having a specialist on your side can greatly reduce the stress, as they do all the negotiating and paperwork on your behalf. I highly recommend that you first start off with a
free debt evaluation in order determine the best course of action based on your financial situation.
Debt Settlement When Does Debt Settlement Make Financial Sense For Me?
By: adamcouch
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