subject: Credit Card Debt Consolidation Advice - Does Debt Settlement Make More Sense For You? [print this page] Credit Card Debt Consolidation Advice - Does Debt Settlement Make More Sense For You?
Do you want to know whether debt settlement makes sense for you? Well stay tuned and keep reading. You will find whether settlement makes sense for you or not. Settlement requires the consumers to have a minimum of $10k of unsecured debts. Below that amount, it is better to go for other relief methods. So, here is the first thing that you need to know. Settlement will make sense if you have $10k of unsecured debt.
Next, if you have an average monthly income below the minimum monthly expenditure define by law, you must definitely go for bankruptcy provided that you are ready to deal with the future financial troubles which are associated with the method of bankruptcy. If the income level is above that level of expenditure, it is better you go for debt settlement. This is because the option of bankruptcy is locked by the law for those who have an income level greater than the expenditure level defined by law. Here going for other relief methods will be foolish because of the fact that these methods except for settlement will require you to pay the debt in full. This is absolutely not required because you can actually get away by paying less with the settlement.
Next, if you want to save your credit score and still eliminate a portion of the debt that you have, settlement makes sense. This is because of the fact with bankruptcy, you will eliminate all your debt but your credit score will be lost and with other relief methods, you will save your credit score but you will have to pay the debt in full. So, if you are in $10k of unsecured debts, settlement makes sense for you.
With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle.
