Is Debt Settlement Worth it?

So, is debt settlement worth it?

The answer really depends in your financial situation.

If you are in a financial hardship because of a job loss, an unexpected medical bill, maybe you’ve overextended yourself financially, or something that’s similar, then debt settlement may be worth it to you.

It all depends on your financial situation and where you are at.

In Debt Settlement

What happens is, is you enroll your debts into a debt settlement program as long as they qualify.

And then, the debt settlement program will use their top negotiators to talk with your creditors to negotiate down your debts on your behalf so that way you can pay less than what you owe.

For example, let’s say if you owe $10,000 in credit card debt and you cannot pay that anymore.

Let’s say you had a job loss that happened.

But, you have $5,000 in your savings account.

You can simply call up your creditor and offer them $5,000 to settle your $10,000 outstanding balance.

And then, you’re completely settled with that debt.

It’s better to pay your creditor something than nothing at all.

And, if you are truly in financial hardship, then debt settlement is a way to where you actually can get back on your feet financially and start off debt-free.

If you do settle your debt with your creditors, then your credit score may take a negative impact.

However, once your debt is settled, then you can start rebuilding your credit.

And then, get to a place, hopefully, that’s better than when you were before and stay out of debt.

And, if you would like more information about debt settlement or debt relief,  check out our services and know your options.

How Debt Relief and Debt Settlement Work?

Debt Relief and Debt Settlement is a negotiated agreement by which a creditor accepts less than the total amount owed to legally satisfy a debt.

Settlement programs typically last 24-48 months and are highly dependent on factors such as delinquency, creditor policies, the number of accounts, and the total dollar amount of the debt.

Debt settlement services have existed in some form since the advent of debt itself.

The modern industry has seen significant growth in the 21st century, largely due to the easing of lending requirements by financial institutions.

In addition, today’s borrowers are taking on significantly more debt than their parents had at a similar stage in life and are subsequently paying off that debt at a slower rate.

[ECONOMIC INQUIRY, 2013]

These large debt loads and slower payoffs, coupled with today’s high-interest rates, mean that without intervention many borrowers could be paying off these loans for decades.

While there are a multitude of interwoven causes for these trends, industry experts point to increased access to larger amounts of credit coupled with a reduction in the social stigma of being in debt.

Schedule Your Free Debt Analysis

Potential clients speak with a certified debt specialist regarding their financial situation.

The debt specialist evaluates the caller’s financial situation and suggests the optimal debt relief strategy.

Clients choosing to enroll in our debt relief program are then guided through the enrollment process.

Enroll into Our Debt Relief Program

Signed enrollment documents are processed and the new client receives a call from our team of dedicated account managers to welcome them to the program.

Account managers are available 24/7 and remain in active communication with clients throughout the program.

Negotiations & Settlement

Our talented negotiations team begins working on client accounts immediately.

When settlement offers are received they are first reviewed for accuracy and then presented to clients for approval.

This process repeats until all client accounts have been settled.

Debts Resolved!

Your debts will be resolved in a few short years or even months so you can have a new beginning financially.