Debt is probably everyone’s least favourite four-letter word. Although it can be easier to avoid than to deal with it, you likely know that, unless you do deal with it, things could get much worse than they are now. Thankfully, there are more options out there than you might think. Debt settlement is a promising avenue for consumers to explore.
Who Is Debt Settlement For?
Who can use debt settlement? It is an ideal option for those who are unable to fit their current debt payments into their budget. If for some reason filing for bankruptcy is not a viable option, seeking out debt settlement through debt relief companies may be a workable solution.
What is Debt Settlement?
What is debt settlement? It is a process by which the amount of a debt is negotiated with creditors with the goal of reducing the overall amount of money owed. In many instances, creditors will agree to collect a reduced amount of money if they can be certain the payments will be made.
From their perspective, receiving a smaller amount of money may more beneficial than putting time and effort into collecting a larger amount years later. And yes, if you file bankruptcy, they won’t get much – if anything. They realize this.
How do you know if debt settlement is right for you? According to the experts from FreedomDebtRelief.com, the first step to making such a decision is to take stock of current debts and their interest rates. Understanding the situation will help you better plan. A loan interest rate calculator is a great place to start. Using the tools available here will show you your overall debt amounts and additional costs in interest over time.
The type of debt you have is important to consider. In general, debt settlement is a good approach for debts that are considered unsecured. This means debts that are not associated with a particular tangible asset as collateral. Examples of debt that are appropriate for debt settlement are medical debts, personal loans, credit card balances, and some types of private student loans.
Freedom Debt Relief
Once you have a good picture of your finances, debt amounts and type of debt, it will be important to research companies that can handle these negotiations on your behalf. Freedom Debt Relief is one of the best debt relief companies on the market. Within the United States, they are the largest company that handles these debt settlements. Since their inception in 2002, they have helped more than 750,000 clients successfully settle debt amounts in the billions of dollars. They will work hard on your behalf to negotiate terms you find agreeable.
This is a great option for many people to help them take control of their finances and begin to emerge from the shadow of overwhelming debt. As with any financial decision though, it is important to do your research and understand both the pros and the cons of debt settlement. One of the most relevant factors is the fact that this method only works for certain types of debt. If you have a significant amount of debt related to a mortgage, a vehicle loan, taxes owed to the IRS or payments on utility bills, your debt may not qualify for this option.
If your type of debt does qualify for debt settlement and you hire one of the reputable debt relief companies, it is a great way to reduce your overall balances owed. This saves you money in the short term and long term, as you can avoid predatory interest rates for debts that could take years to pay off. You also avoid the hassle and stigma associated with filing for bankruptcy.
When it comes to resolving your debts, it is important to remember that you have options. Doing some research is a great way to begin taking control of your finances. Who can use debt settlement? The answer is that many people can benefit from this valuable method of resolving debts. If this sounds beneficial to you, don’t hesitate to reach out to one of the debt relief companies to explore your options. You’ll be glad that you did.