3 Benefits of Debt Settlement for Credit Card Debt
When someone is deep in credit card debt, they may often feel hopeless, ashamed and have fears of never being able to get out of debt.
It’s a scary scenario. However, credit card debt among Americans is more common than you may think. If you are among the millions of Americans in credit card debt, debt settlement might be a good option for you.
While you can take on the task of settling credit card debt on your own, using a debt settlement attorney who understands how creditors work, will most likely bring you the best settlement results and savings in the negotiating process. When considering debt settlement programs from other entities that may not understand the legalities of debt settlement, it is important to be vigilant in doing your research to avoid debt relief scams.
Here are three benefits to credit card debt settlement which makes it something worth considering.
Bankruptcy tends to be a last-ditch effort regarding credit card debt settlement. With so much misinformation about bankruptcy, people may believe that bankruptcy is their only option for resolving debt. While it may be right for some, it’s always wise to do your homework before resorting to bankruptcy as it can remain on your credit report for up to ten years. Bankruptcy can have a detrimental effect on getting a job or obtaining a mortgage or any other type of loan. If your debt settlement goes as planned and is handled properly, bankruptcy can be avoided. Debt settlement is a more private solution as there is no public record of the matter. If your credit has suffered because of credit card debt, you can recover from bad credit quicker than if you had gone the route of bankruptcy.
Repay Debts in Less Time
Depending on the magnitude of debt and other personal financial factors, It can take anywhere between 1 and 4 years for a person to repay their debts on a properly managed debt settlement program. Other methods for settling credit card debt such as credit counseling and debt consolidation have repayment periods from 3 to 5 years or more. If you continue to manage your credit card debt by just paying the minimum payments or skipping payments, it could take decades to pay down your credit card debt. People struggle to pay off their debt for all kinds of reasons. However, the burden that comes with credit card debt can become too much for one to bear. The quicker you can pay off credit card debt; the better can pave the way towards a financially sound future.
Relief from Drowning in Debt
Debt settlement programs are for people who are seriously struggling and often the debt prevents people from making serious changes to their spending habits. It is truly a vicious cycle which can lead people to believe there is no way out. Getting a successful debt settlement tends to be the fresh start which many people may need and helps them get their life back on track. Once you have the relief of debt, it’s extremely important to take the necessary steps to stay out of debt. Creating a budget, cutting back on discretionary expenses and understanding your spending habits are all key to creating a positive and healthy financial future.
While debt settlement may not be for everyone, it is definitely an option that is worth looking into. If you are considering a debt settlement program, Tayne Law Group is here to help! Feel free to call us or leave a comment below; we’d love to hear your story and help you figure out what option would be in your best interest.