Does paying off $25,000 dollars of debt in two years with a $600 payment sound good? How about a $400 payment over three years? If you have any unsecured debt that you want to get rid of one option is a debt settlement. This option has many pros and cons to it. So before making a final decision make sure you do some of the research. Here is a list created to help you with the pros and cons that we find with dent settlement programs.
Pros for Debt Settlement
- Your debt can be eliminated very quickly.
- Paying off your debt can be a freeing and exhilarating.
- You are able to be in control of the settlement terms and payments made while using a debt settlement.
- The amount you will save could be into the thousands when using a debt settlement.
- The length of time in are in a debt program depends on amount of debt owed.
- You have the ability to be debt free in a few years when using a debt negotiator.
- Debt settlements can remove a large portion of amount you owed.
- you have the ability to pay off some of the debts immediately exists depending on the amount of money you have at the time.
- Many things are open to negotiation with a debt settlement like payment terms and due dates.
- With one payment you are able to pay off several of your accounts in debt.
- Settlement professionals work with the creditor instead of the creditor hassling you anymore.
Cons for Debt Settlement
- The inability to compromise as well as being frustrating can be the definition of handling a creditor.
- Reducing your balance is more difficult when working with the original creditors and not a collection agencies.
- You can become emotional without help during the debt repayment process.
- Without a debt settlement creditors can continue to use collection agencies as well as file lawsuits against you until the balance of the is paid.
- Larger debts will take longer to pay off than smaller debts.
- There is a charge for a debt settlement counselor.
Having a good understanding of the law will help you when you are talking to creditors or collection agencies. These laws are useful when negotiating settlement terms. A debt settlement professional (agency or lawyer) will be able to know the laws in your state, how they will affect you, and your financial situations. This can be of great benefit to any individual.
Don’t forget that a debt settlement isn’t the only way to reduce or eliminate your debt. There are other programs like debt consolidation, consumer credit counseling, and bankruptcy.
After reviewing all the programs and options out there you many still want to do it yourself. However, if you get overwhelmed, frustrated, or just confused consult a debt settlement agency. As there are many agency out there for this purpose, review some so you can pick the right one for you. Watch out for scams.