Overwhelming debt is a reality for millions of Americans. Whether it’s due to the loss of income, poor decision making, or simply out of necessity such as paying for medical treatment, the stress caused by financial shortfalls can be overwhelming. Many people find that their options are limited when they reach a point where they can no longer pay their monthly financial obligations. They can either find more work or file for bankruptcy, neither of which are very appealing options. However, this is simply not the case. Many people have found the solution they need to address their financial obligations through a process known as debt settlement. So, what are the benefits of going through debt settlement as opposed to going it alone or filing for bankruptcy?
In most cases, trying to pay back your monthly debt obligations without some sort of assistance after you have reached a point of no return is extremely difficult. Interest rates rise and late or missed payment fees and over the limit fees begin to stack up. The debt begins to snowball and grow at a rate that is greater than your ability to repay, making it almost impossible to address your obligations on your own. With bankruptcy, you can eliminate most forms of debt, however not all of it. And the process is extremely long and arduous, not to mention humiliating and devastating to your credit history.
However, debt settlement offers you a way to repay your debts without filing for bankruptcy and much faster than trying to go it alone.
Eliminating debt through bankruptcy is a viable option for those who simply have no resources with which to pay back their debt. However, it will haunt your credit for a minimum of ten years. Filing for bankruptcy itself can be costly and the process is simply humiliating and time consuming. Having a bankruptcy on your credit report will not only prevent you from being able to get a loan for quite some time, it can also prevent you from getting a good job.
Debt settlement does have an impact to your credit report, but only for 7 years. Plus, most employers don’t place as large of an emphasis on debt settlement as it does bankruptcy as debt settlement indicates that you are taking care of your responsibilities rather than just looking for the easy way out.
Repay Debts Faster
The goal of debt settlement is to allow you to lower your monthly payments and repay your creditors over time. How is this different than regular monthly repayment? The truth is that most creditors know when you are in over your head. They don’t want to you file for bankruptcy because it means that they usually wind up getting nothing. With debt settlement, they can forgive portions of your debt as well as reduce or eliminate interest and fees in an attempt to encourage you to pay for your debts voluntarily.
So, if you are faced with overwhelming debt and are looking for debt settlement services, consider talking to a specialist today. For more information regarding the debt settlement services offered by Debt Relief XYZ, or how to get started with a debt settlement plan to address your debt, please visit http://www.slate.com/articles/business/the_united_states_of_debt/2016/05/the_rise_of_household_debt_in_the_u_s_in_five_charts.html
Are you looking for a better way to get out of debt? Repay your debt faster and avoid bankruptcy with the help of Debt Relief XYZ. Visit debtrelief.xyz today to learn more.