subject: When Debt Settlement Makes Sense [print this page] Settling your debt can be a good way to get back on the road to improved financial health. Negotiating a new payment plan can stop the collection calls and harassment. Having the ability to make timely payments could help you finally overcome your debt issues. What are some times when debt settlement makes sense?
You Lost Your Job and Are Now Employed
Unemployment can throw a wrench into your finances. Losing a job usually is a sudden and unexpected event. You never know when you are going to get another job, or when you might have a steady income again. This is a good time to look into hiring a debt settlement company to work with your creditors to negotiate a debt settlement. It is better to work with your creditors through debt settlement as opposed to struggling to make monthly payments. Many creditors and debt collectors would rather get some of the balance as opposed to possibly getting nothing from you.
Your Debt is Massive
Massive debts can be hard to pay off in a timely fashion. Most of your payments are going toward the interest as opposed to the original balance. If you are struggling to pay off any of your balance, it might be time to hire a debt settlement attorney to determine what your options are. Debts over $10,000 are usually prime candidates for settlements though smaller amounts can be negotiated as well. Always try to avoid going to into bankruptcy if at all possible. You may still have to make payments to creditors and collectors.
You Are Sick of Throwing Money Away
Anyone who is sick of stressing out over monthly payments that have spiraled out of control should look into the possibility of debt settlement. If you do not feel comfortable contacting your creditors, hiring a debt settlement attorney to contact them for you could work in your favor. Your creditors can no longer contact you if you have a designated third party handling your debt and lawyers have familiarity with consumer protection laws that provide for damages if a collector or creditor is violating your rights.
Settling your debt through a debt settlement plan is one way to resolve your debt problems. Filing for bankruptcy is another that can be an act of desperation. Hiring a debt settlement law firm to negotiate a settlement can put you on the path to eliminating your debt issues and gain greater peace of mind.
