Settle your debt even if it hurts! Here’s why

Date Posted: August 5, 2022
By: Maggie Marques

Do you want to settle your debt? Who doesn’t, right? It can be a daunting task especially if you don’t know how or if you don’t have time to do it on your own.

The easiest way to settle your debt is to hire a debt settlement company to do the dirty work for you. It may sound contradicting that you have to hire a debt settlement company when you can’t even pay your monthly obligations but this is an option that you would definitely want to consider.

How does debt settlement work?

Before you think that debt settlement means that all your debt will be forgiven, it does not work out that way. A chunk of your debt will be forgiven, yes,  but you need to offer a lump-sum payment for it.

Debt settlement can go as low as 10% of your debt to as high as 50%. Remember, though, that creditors are in no obligation to agree to the settlement that you are offering but there is a big chance they will because they’d want to get even a fraction of their money than none at all if you choose to apply for bankruptcy.

Why desire to settle debt?

The longer you allow your debt to hound you, the bigger your problems will be. It is imperative that you start working on debt settlement as soon as possible.  Debt settlement will also be considered as a taxable income by the IRS. Be aware that applying for a debt settlement will  lower your credit score and it will have a negative effect in your financial history.

There are other ways to settle your debt, you can do it on your own but factor in the time that you will spend to DIY, and it may cost you more money in the long run as you there may be insider benefits that comes with debt settlement’s long standing relationship with creditors.

You can also talk to your creditors and tell them of your desire to settle your debt and if they can help you with manageable terms that you can afford. Filing for bankruptcy is another option but this should be the last resort when you want to be clear and settle your debt.

 

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