Where To Start with Funds and More
November 20, 2017
Debt settlement is a strategy in which a debtor successfully negotiates to pay part of the amount owed to a creditor as a 100% clearance of their entire debt. As long as the creditor is satisfied, you only repay a percentage of what’s owed, with the rest of the debt being offset entirely. Many debtors find this approach advantageous in many ways depending on their specific financial circumstances.
Below are examples of merits of debt settlement to overwhelmed debt consumers:
Bankruptcy May be Avoided
You may prefer debt settlements with a view to avoiding bankruptcy. Bankruptcy is capable of solving your financial woes depending on your situation, but it forms an indelible dot for as long as you live. Your credit report will have the bankruptcy filing for 10 years, but many of the times you apply for a loan or job, you may be asked whether you ever filed for bankruptcy. If you lie, and the lender finds out you were once bankrupt, you may be accused of fraud. You could also be fired for not telling the truth.
If executed well, debt settlement is a reliable way for evading bankruptcy or having to face its consequences, which can be dire. After seven years, your credit report will stop revealing your debt settlement. Still , no public database reveals your debt settling history, so once the credit report time bracket for the specific debt accounts has expired, you’ll never face the matter again.
Break From Too Much Debt
Settling your debts with creditors is a practical solution especially if you have valid explanation for not paying back your debts. Once the settlement is paid as negotiated with your creditors, you become free of debt within a shorter duration and at lower costs compared to trying to pay off as per the initially agreed plan.
Another issue is that there many creditors who will prefer this approach to bankruptcy. There’s a high possibility that a creditor what recover as much of the amount owed as would be possible with debt settling, no matter if this is a Chapter 13 bankruptcy scenario. In case you’re filing Chapter 7 bankruptcy, the creditors have little hope of salvaging anything. The majority of such creditors will want to avoid this in case there’s a more viable way out, so they may accept your offer.
When your debt settlement plan is great, you may clear the amount owed within 2-4 years. That means you’re able to start reorganizing your finances sooner without the burden of paying out any amounts on a pre-agreed schedule.
Settling your debts could be the trigger of your financial liberty. Engage your creditors with a view to settling in a way that resolves your financial circumstances today and tomorrow.
