While most people believe that debt settlement is just as bad if not worse that filing for bankruptcy, the truth is that there are a lot of benefits to using a debt settlement company, especially if you have several large debts that need to be paid. If you have considered bankruptcy due to having overwhelming debt, you may be surprised to learn that debt settlement can offer you a viable alternative to doing so.
First and foremost, debt settlement allows you the opportunity to address your financial responsibilities and avoid both costly civil litigation as well as having to file for bankruptcy. Yes, bankruptcy provides protection against creditors and can provide you with relief from your overwhelming debt. However, filing for bankruptcy is considered the last option and reserved only for those who have no other options. Bankruptcy remains on your credit report for 10 years after the bankruptcy has been discharged, assuming that you are granted the ability to discharge your debts under the law. This can affect your ability to obtain credit or even get a job for many years into the future.
And, while settling your debts with your creditors will also have a negative impact to your credit, when it is done correctly, it will help you avoid filing for bankruptcy and will not harm your credit as badly nor for as long. Debt settlement will only appear on your credit report for 7 years after the debt has been paid.
Relief From Overwhelming Debts
The goal for consumers who enter into debt settlement is to pay their obligations back to their creditors over time, not to pay less that you owe. However, many creditors are willing to help you lower your balances and get you out of debt faster, which can help you tremendously. Many creditors understand the benefits of working with consumers who are willing to pay voluntarily and will work hard to try to arrange terms that are mutually beneficial for both parties.
Repay Your Debts in Less Time
With debt settlement, because many companies offer a reduction on the amount due and reduce or eliminate interest and fees, and because you are making one large lump sum payment, your debts will be repaid much faster than if you had tried to go it on your own. This will help you get on the road to financial stability much faster than other debt repayment options.
So, if you are faced with overwhelming debt and are looking for viable options to filing for bankruptcy, consider talking to a debt management Irvine specialist today. Taking the first step and talking to someone who is experienced in debt settlement can help relieve some of your stress and help you get on your way to repaying your debts and making a brighter financial future for you and your family.