Benefits of Debt Settlement

A debt settlement program can benefit many. Debt settlement is a method of debt reduction that will offer lower monthly payments that are more manageable. There are several benefits to debt settlement.

Debt Settlement Reduces Debt and Have Lower Monthly Payments

Expect your debt reduction to be from 20% to 75%. This saves you thousands of dollars from the initial amount owing, which means you can pay your debt off much quicker. You will also usually enjoy a significantly lower interest rate. This means your lower monthly payments are going to principle so you are paying down your debt and not just paying interest. Depending on the size of your debt, expect to have it paid off in 5 to 36 months.

Begin to Rebuild Your Credit

If you have been late on payments or unable to make your payments your credit score could already be suffering. Perhaps you're already dealing with collection agencies harassing you for money you don't have. Debt settlement can stop the harassing phone calls and it can help you begin to slowly rebuild your credit, while making lower monthly payments. You need to start somewhere and debt settlement is a good place to do just that.

Debt Settlement Allows You to Avoid Bankruptcy

Many mistakenly believe that the only option is bankruptcy. That's not true. Debt settlement results in debt reduction and lower monthly payments. Personal bankruptcy is usually a Chapter 13, which means you have to pay back 25% of your debt as well as all attorney and court costs, and it will stay with you for as long as 10 years.

Debt settlement allows you to establish a debt reduction plan with the help of credit counseling and in 36 months or less, you'll be out of debt, and have your credit health already improving. A much better solution for many.

Reduce Your Stress

No one goes into debt planning not to be able to make their payments, and so when they find themselves in this precarious situation it can be very stressful. Even without the collections harassing a person, the stress about who will get paid, and how to juggle your debt is very real, and what's really frightening is that it can have a detrimental affect on ones health. Debt settlement leaves you with a substantial reduction in what you owe, a much lower interest rate, and lower monthly payments.

Debt settlement is the least expensive and the quickest method of debt relief next to bankruptcy. Debt reduction can be achieved by most. Perhaps it's time to talk to a credit counseling service today.

Improve Your Credit Score - Free Consultation

Need debt consolidation relief? Click here!