Sometimes in life that people can not pay their bills, so they look to debt settlement. In the United States alone, there is $800 billion dollars in consumer debt since the pandemic started. If you are one of those consumers asking yourself “Will debt settlement work for me”, then it is time to consider the options available to you. Read on to see if a debt settlement is right for you.
Number of Creditors
If you have a debt with a single creditor, then yes, it’s often worth getting a debt settlement. That’s assuming if you have a lump sum you can offer to this creditor as well. Even if you have multiple creditors that you owe money to, it’s still worth considering a debt settlement because some or all of them could agree to the settlement and will take what you can offer them. If you take a debt settlement from FreedomDebtRelief.com, you will get your debt settled with the creditors that you owe money to.
Getting out of debt quicker
It’s a good idea to consider a debt settlement if you want to avoid bankruptcy. As you know, bankruptcy lasts at least 7 years, and it’ll be impossible to get any sort of credit. However, you can settle the debt quicker with a debt settlement company so that you don’t have to worry about bankruptcy.
Creditors would stop harassing you
If you are with a debt settlement company and the creditors agreed to the terms, they have to stop harassing you. This can be good if you don’t want the daily phone calls.
Downsides of Debt Settlements
A debt settlement can be a good idea for some people, but for many people, it’s not. Here are the reasons it’s not a good idea to get one:
If you end up getting a debt settlement, you should be aware that it will show up on your credit report. It could stay on the report for as long as 6 years. However, if you have paid off all your debts quickly because of a debt settlement, you may be able to recover your credit score and regain financial health & debt settlement process.
In order to help you with your debts, every debt settlement company charges a fee. The costs vary between other debt settlement companies.
Some creditors may not accept the terms
This is an unfortunate reality with negotiating terms with creditors. Some won’t accept the lower amount that is negotiated by a third party. Remember to keep this in mind when it comes to settling your debts.
Is a debt settlement a good idea?
Deciding if a debt settlement is a good idea is based on several circumstances. If you’re looking to get out of debt quickly with a lower payment, it could work for you. You will need to find the right company that has the experience to help you, especially if you have debt that’s overwhelming. If you have a small debt and from a single creditor, you can probably handle it by yourself.
Ultimately, it is up to you how soon you want to be out of debt. It will take a lot of courage to take on the responsibility of restoring your financial health. Do you want to get out of debt quicker and just need a little help? Contact one of the debt consultants at Freedom Debt Relief and get a free consultation. The next time that you ask yourself “Will debt settlement work for me”, know that there are options you can consider that will be beneficial for your financial future.