Credit Repair & Debt Relief Issues

Why is Debt Settlement such a great option?

Over the past few years, debt settlement has become a hugely recognized method of getting out from under a large amount of debt ($10,000 or more). Keep in mind that this program is strictly for those who are in financial distress only. If you find yourself in a position where you can no longer make your minimum payments, a debt settlement program can set you up with a new structured monthly payment of about 1/2 of your current minimums. That payment goes into a trust account managed by a debt settlement firm and continues to build a balance over time. As the trust funds accrue, those funds are used to settle your accounts one at a time for significantly less than what is owed.

The most common question that people have is why would a creditor settle for less than what is owed. First of all, yes they do and they do it every day. The reason is because if you are truly in financial distress and the debt settlement attorney has done a good job of getting that information across, the creditors understand that taking a fraction of what is owed is better than getting nothing at all. It is also more financially sound for creditors to take some money and call it good, than spend more money trying to pursue you when you may not have the means to pay.  There are also some more intricate details at play here when your accounts are sold to collections for about 15-30% of the balance owed on the account. Now the collection company is pursuing you for the entire balance, but even if they settle the account with you for 20-50%, they make a nice profit. Yes, you read that right… you settle the account for less than you owe and the collection company makes a profit! 

If you are interested in getting a quote for a debt settlement program, here is a link to the company we recommend. They have been in the industry for a long time and have a spotless record with hundreds of happy clients. Recommended Debt Settlement Company.

In summary, a debt settlement program can be your best option if you find yourself falling behind on your bills unable to catch up. A good debt settlement program can get you out of debt in about 2-4 years.