While it’s completely possible to clear your debts off on your own, there are situations in which enlisting the help of a professional debt relief service can be significantly more beneficial. Companies that offer debt settlement — also known as debt relief or debt adjustment — are professional entities that reduce the amount of financial pressure you may be under. They do this by negotiating with creditors on your behalf to lower the amount of debt that you owe. Below are some of the benefits of getting them in your corner:
- Allows You to Avoid Bankruptcy
- Helps You Repay Your Debts Faster
- Reduces the Amount You Owe
- Simplifies the Debt Payment Process
- Be Free From Stress and Anxiety
Filing for bankruptcy is a debt solution that will stay with you for the rest of your life. Once a bankruptcy entry appears on your credit report, it will remain there for a period of ten years and may have a significant impact on your finances. For instance, many applications will ask you if you’ve ever filed bankruptcy, such as loan applications, credit cards, and even employment applications. The repercussions for lying about it are severe: you may be charged with fraud if your bank comes into the truth, or you may lose your job. Enlisting the help of a professional debt relief service to clear your debts instead is a far more attractive option that doesn’t carry as many dangers.
Collaborating with a great debt relief service on a good debt settlement program can allow you to repay what you owe your creditors in about 24 to 36 months. With a professional debt relief expert, you receive counseling, which enables you to plan a more efficient strategy that saves you money and time. This is a markedly shorter amount of time than paying down your debt without professional assistance.
If you owe a large amount of money in unsecured debt – say, about $7,500 or more – partnering with a debt relief service can be in your best interest. You may be able to get the amount of debt you are under reduced by utilizing a company who will negotiate with your debtors on your behalf. This is generally done by having the company negotiate with your creditors to take a reduced amount of money while being guaranteed that they will be able to receive almost half of what you owe them. Finally, creditors view debt settlement as a more attractive option as opposed to having you file for bankruptcy. They may not get as much money from you if you file for Chapter 13 bankruptcy, for instance, or anything at all, if you are forced to file for Chapter 7 bankruptcy. As a result, they are more willing to accept settlement offers.
A good debt relief service will work with you to determine the best way of paying down your debts. They will also have a diverse list of these options that will be made available to you, their client. Most commonly, debt relief service companies will streamline your debts so that you only have to make a single monthly payment that you can afford, as opposed to having to divide your income to pay off several credit cards, for instance.
Being under a large amount of debt is a stressful situation for anyone, compounded only by having collections agencies hounding you over email, phone, or other forms of communication. With a debt relief professional on your side, you’ll be able to pay your debts off much faster, and debt collectors will worry you less. Your relationships may even see improvement after you’ve cleared your debt – it has been shown that personal relationships between spouses and families can become strained during times of financial difficulty.
To learn more about debt relief solutions and how to start living with financial freedom, contact CreditAssociates for a free consultation or use our Savings Estimator to see how much you could save.