Becoming Debt Free can be a Reality
An Alternative to Bankruptcy
For the debtor, this makes obvious sense, they avoid the stigma and intrusive court-mandated controls of bankruptcy while still lowering, sometimes by more than 50%, their debt balances; whereas, for the creditor, they regain trust that the borrower intends to pay back what he can of the loans and not file bankruptcy. If you are experiencing genuine financial hardship and have a sufficient amount of qualifying unsecured debt, then debt settlement may be a practical, legal solution for you.
How is Debt Settlement different from a Debt Management Plan?
Debt Settlement is a legal solution designed to negotiate settlements based on what you can afford to pay your creditors. The amount of time required to complete a Debt Settlement Program can depend on several factors, including how quickly you are able to accumulate settlement funds. Typically a legal Debt Settlement Program allows a consumer to become debt free in 2 – 3 years.
With Debt Consolidation, also known as a Debt Management Program, payments are based on creditor guidelines. It can take quite a bit longer to become debt free as the consumer pays back the entire debt amount, although creditors are often willing to waive late fees and lower interest rates during the repayment period.
Can all of my debt be negotiated?
Any type of unsecured can be successfully and legally negotiated. An unsecured debt is one that is not attached to a specific tangible item that could be repossessed by the creditor. For example, a car loan or a home mortgage cannot be included in a Debt Settlement Program because the creditor could legally repossess your car or foreclose on your home. Credit card debt, medical bills that have been turned over to collection agencies, store cards, signature loans, any unsecured lines of credit and revolving charge accounts are all types of unsecured debts that can be included in our Debt Settlement Program. Federal Student Loans are government backed and cannot be discharged even in a bankruptcy proceeding. Private student loans that are not government backed may be eligible for a Debt Settlement Program.
Is a Debt Settlement Program for you?
While a Debt Settlement Program is not suitable for everyone, its flexible nature makes it applicable to a wide range of financial circumstances. Debtors should be certain that they can make the monthly payments and then carefully consider the pros and cons of Debt Settlement before making a decision.
As you face the difficult challenge of paying down excessive debt, you will be making many important decisions. Before you determine which approach is best for you, talk to Christian Debt Services first. Our certified counselors can assist you during this difficult time. They can help you with a complete analysis of your financial situation and formulate a strategy that best suits your needs.
Contact us today to speak with a certified counselor to help you determine if a Debt Settlement Program is right for you.