What is Debt Settlement? Can it Work?

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So if you are reading this article there is a real good chance that your current financial situation does not look very well. The title in itself will only entice people to click and read this article if they are looking for a solution to their current debt problem and feel that debt settlement may be the right option but are not truly sure as to what exactly debt settlement is.

For starters I would like you to know that debt settlement is not the magic bullet and has its respective pro's and con's, however for many this is the only solution to what otherwise is a nightmare of a debt problem.

So what is debt settlement? Well debt settlement is truly just the result of a successful debt negotiation.  Simply put in this process there are negotiations being made on the amount of debt you the debtor owe with the intent being you the debtor having to pay back a much lesser amount that what is currently owed.  The benefits being that you will save a substantial amount of money on what you owe and also save a great amount of time too. 

You see the longest you will be in a debt settlement program for will be no more than three years preferably less than two but three also works.  Once it is all said in done it is very realistic to expect a savings on your debt of anywhere from 40-50% of what you owed when you began the debt settlement process.

Now when you compare these numbers to those that you will experience if you just make your monthly minimum payments forever its pretty frightening.  The average debt will take over thirty years to pay off via monthly minimum payments, and you will pay back over four times the original balance in interest alone and that's with a moderate interest rate, once the rate goes to the default rate these numbers once again drastically increase. 

So just to throw some numbers at you and give you a true sense of the situation realize this.  Lets say you owe $10,000 now with debt settlement you may end up paying back $6,000.  Now right off the top you saved $4,000.  Let's also assume you accomplished this within two years. Now compare that to what you would have paid through the creditor's monthly minimum payment scheme.  After thirty years of minimum payments you would have paid out around $50,000.  So the true savings by doing the debt settlement process are $44,000 you saved $4,000 off of your original balance, and you spared yourself losing the other $40,000 through interest and minimum payments.

For many this would seem like a no brainer I mean who really wants to be stuck in debt for thirty or more years and pay back loads more than they have too. However there is one big issue most people do not understand when it comes to debt settlement and that is you must fall into default for these creditors to be willing to negotiate a settlement at all.  After falling behind on your payments they will begin to talk in terms of negotiating on your debt. 

That one fact of falling behind for many will be the thing that holds them back from doing debt settlement and that is a shame.  There is damage that will be incurred against the debtor's credit, but this damage is temporary and can be reversed once the settlements begin coming through.  But unfortunately many people will be scared of their credit score being lowered and in turn will pay the creditors outrageous amounts of interest and be a slave to debt fore decades.   This is what the creditors bank on, you the debtor being more concerned with how to accrue future debt than being concerned with how to get out of the debt situation your in now. 

But there are many wise people out there who realize the great damage on their financial future's that these credit card bills are having, and many are logical people who understand that using debt settlement as a means to an end will mean having a brighter future.

If you are interested in seeing if the debt settlement process can work for you then click the link and fill out a request information application on the following website, I or one or my associates will call you back to see if we can help you get on the path to financial freedom.

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