Debt Negotiation Settlement - Moving Forward After Settling Your Debt
Debt Negotiation Settlement - Moving Forward After Settling Your Debt
If you are in debt you have probably heard about bankruptcy and about debt settlement. These are the most two common options which consumers use to clear debt. Although the two options are both used for debt relief they differ very much from the costs implied to the final result.
Let us take bankruptcy first and talk a bit about it. Bankruptcy will require quite a lot of money now and will take almost a year in most cases. The reason that I say that bankruptcy will cost a lot is that you will have to pay for a lawyer so that you are legally represent and you will also have to pay for all the court and document fees; the lawyer fees alone can set you back financially quite a lot. Although the normal period of bankruptcy is a year, it can take up to ten in same cases and the tress level will be unbearable. After the process is complete you will still have to make do without any loan for decades to come because a low credit score is the result of bankruptcy and it will take a long time for it to rise to an acceptable level.
Debt settlement will reduce 50% of your debt but you should keep in mind that you will have to pay in maximum 3 years so that you avoid ending up in debt once again. After settling your debt you have to move forward and pay back the amount that remains after the negotiations. Although it still is a big amount to pay, it is obviously more affordable than the original debt and you don't have to pay the creditor directly each month, that means you won't have to pay interest or penalties if you are late on month. Actually you can deposit as much as you can afford during a period of 2-3 years. Once you have all the money you need you can pay off the creditor and enjoy a debt free life with a good credit score and a good financial future. This can be very important when you need some urgent money or are thinking about an important achizition.
Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options.