Debt settlement is a great way to reduce the amount of money you owe to creditors. Settling your debt for less than you owe can also reduce the impact of high interest rates you pay while seeing other fees disappear. This can be a great way to guide you out of the debt mess you have created. How will you find the money to pay for debt settlement offers?
Understand Your Debt Settlement Options
Not all debt settlement offers are created equal. Some offers will require you to make a lump sum payment to settle the debt. Other settlements can be paid over time. The current financial situation you find yourself in will determine how we proceed with the settlement. If you plan to make a lump sum payment, it is a good idea to start saving for this before negotiating a settlement offer. Our debt relief advisers will be able to help you make a sound decision after negotiating with creditors.
Get A Part-Time Job To Make Extra Money
Getting another job is the easiest way to save money for a settlement. This job can be anything that will give you extra money that can be put in the bank to pay your debt. Finding work as a cashier in the grocery store, babysitting kids on the weekend or writing web content for paying clients are all ways you can make extra money. All of these options presented can provide you with steady work with a convenient schedule.
Consider finding a job that also creates a passive revenue stream. Writing web content allows you to make money upfront while also receiving revenue share over time. Some employers will allow part-time employees to take an extra paycheck in lieu of vacation time. Any extra money earned as a fringe benefit makes it easier to save up money to pay off the debt.
Find An Interest Bearing Account
Putting money into a savings account that offers a decent interest rate is a good plan. Some online savings accounts will pay over 1 percent as an interest rate. Placing your money in the stock market is another option to build up savings in preparation for a debt negotiation offer. CD’s are another good option to help earn some quick interest on any money invested. Most CD’s mature in 6-12 months. This means you can put money into the CD in January if you anticipate settlement payments starting in June.
Rent Out A Room In The House
Renting space in your home can be a great way to save money for a debt settlement. Having a tenant sign a one-year lease ensures that there will be at least 12 months of extra revenue coming in. This could mean an extra $500 or more a month coming in. At the very least, this rental revenue can help pay for some of the mortgage bill. The money saved on the mortgage can then be used to fund the settlement account.
Finding a roommate to share costs with could be effective as well. Splitting the cost of the mortgage, utilities, food and everything else can help save even more money. You might even be able to get free childcare out of the deal as well. Take advantage of any way to save money on monthly bills.
Pursuing debt settlement for debt relief is a great way to climb out of debt. Paying off debts with one lump sum payment clears that debt for good. All you have to do is work on adding to a savings account from now on. Keep in mind that creditors may temporarily downgrade your credit score. This will ultimately be offset by getting rid of the debts. All the hard work and sacrifice will be rewarded by less debt and more financial security in the future. To get immediate help, fill out the form or give us a call today.