Debt settlement is a financial strategy that has gained attention in recent years. This form of debt relief offers individuals who are overwhelmed by debt an alternative approach to regain control of their finances. Debt settlement involves negotiating with creditors to reach a mutually agreeable settlement, usually for a significantly reduced amount than what is originally owed. The allure of debt settlement stems from its potential to provide individuals with a way to alleviate their financial burden. This approach can be useful to those who are facing financial hardship and are unable to make minimum payments.
1. A Bankruptcy Alternative
The main reason that people choose debt settlement is to potentially avoid bankruptcy. Bankruptcy is a debt solution that will follow you for the rest of your life. The bankruptcy entry is a public record and remains on your credit report for 10 years. Many loans, credit cards, and job applications ask whether you’ve ever filed bankruptcy. You should never lie about having filed bankruptcy to any of these entities. If they find out that you lied you could be found guilty of fraud. In the case of employment, you could lose your job. Settling debts with your creditors, when it’s done right, can help you potentially avoid filing for bankruptcy and dealing with the consequences of bankruptcy.
2. Get Relief From Overwhelming Debts
If you’re facing hardship and having trouble paying back what you owe to your creditors, debt settlement is an option worth exploring. Once your settlement has been negotiated and paid, you will essentially be debt-free in less time and at a lower cost than if you tried to pay off your debts on a typical repayment schedule.
3. Repay Your Debts in Less Time
On a good debt settlement program, you will repay your debts in about two to four years. This is much less time than you’d spend paying back your debts normally. Even debt consolidation, Chapter 13 bankruptcy, and credit counseling have debt repayment periods that are higher. It might take decades to pay off debt if you stuck to the original repayment schedule.
Conclusion
The option of settling your debt for less than what you owe is something worth exploring. CuraDebt has been helping individuals and small businesses for over 22 years nationwide. As of May 2023 CuraDebt received a score of 5 out of 5 on CustomerLobby for a total of 1179 customer views. CuraDebt is an Accredited Member of the American Fair Credit Council. Contact us for a free consultation. 1-877-850-3328.
Explore the pros and cons of debt settlement.
