Many people are struggling with surmounting debt. Some cannot afford the required minimum monthly payments, or they are unable to make payments at all, resulting in delinquency. In this situation, you may have considered filing bankruptcy. While bankruptcy is one way to resolve your debt problems, you should know there are other options available for you. It is important to explore and consider all of your debt relief options before filing for bankruptcy.
One option is debt settlement. In a debt settlement program, a debt settlement company negotiates with your creditors and to settle your accounts for a percentage of the full balance owed. You make a single monthly program payment that accumulates in a custodial account and pays the fees to the debt settlement company. Once sufficient funds are saved in you custodial account, the debt settlement company begins negotiations with your creditors.
When one files for bankruptcy, it may appear on your credit report for up to ten years. This will impact the ability to obtain new lines of credit and loans. It can also affect your employment as many companies rely on credit information for both new hires and promotions. With debt settlement, you can settle your debt in a few years or less. Reputable debt settlement companies will set up savings plans that allow you to achieve your objective in no more than four years. While accounts are going delinquent debt settlement clients' credit scores will be adversely affected. Many times a client already has gone delinquent and their credit scores have already suffered. In most cases the majority of the credit damage will occur in the first six months of delinquency. As debts are settled many clients see their credit score begin to improve. During the program clients are discouraged from using any available lines of credit. This means the client learns to budget and live frugally, making do with what is left from their paycheck after making their program payment.
When calculating a debt settlement program payment, the debt settlement company will consider all income and expenses. The goal is to achieve a manageable cash flow situation for the client allowing the client to live with no additional need to borrow.
Many people choose bankruptcy as a last resort. Bankruptcy carries long term credit and employment implications that many people view as unfavorable. Debt settlement is a process that negotiates a settlement of unsecured debt typically for a fraction of the balance owed. Debt settlement is an attractive alternative to bankruptcy whereby you are paying an agreed upon settlement that is a significantly less percentage of the amount owed and your credit report will not bear a dreaded bankruptcy, thereby helping you restore your credit in a shorter amount of time. Our settlement programs are normally completed within 36 months helping you to relieve the tremendous amount of stress commonly associated with unmanageable debt and move forward with your life.
To learn more about bankruptcy alternatives and Debt Settlement One programs, please contact our Debt Counselors at 866-245-3073.
**Individual results may vary and are based on the ability to save funds and successful completion of the program terms. Debt Settlement programs do not assume or pay any consumer debts, and does not provide tax or legal advice. Programs are not available in all states. Read and understand all contract terms prior to enrollment.
About the Author: Chris Markt is one of the founders of DebtSettlementOne.com which is a professional debt settlement company offering debt settlement programs to consumers that require financial help.
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