One of the biggest complaints that individuals have against debt settlement companies is that they often force the individual to go in for this solution even if it does not make financial sense.
Well, you cannot rely on third party for your financial benefit.
It is your duty to focus on the benefits and disadvantages of personal debt settlement and find out whether it makes financial sense are not.
Generally speaking, it is rational to expect the debt settlement deal to offer the following benefits -Reduction in the total amount owed.
-The ability to make monthly repayments very easily.
-Reduction in the stress and pressure put by credit card companies.
-Better planning and preparation for a financial emergency.
If the debt settlement deal does not offer these benefits, then you should not go in for the same.
Instead, you should rely on some other debt relief option.
Specifically speaking, if you have debts worth $10,000 and if you have skipped repayments for the past few months, you should go in for debt settlement.
The idea is that you should rely on this relief option when the current of the problem will lead you into bankruptcy.
If your debt has increased more than $10,000, it does not take a rocket scientist to conclude that you will have to put in a lot of effort to bring down the same.
Even if you spend $500 per month that is the $6000 in a year, you will still spend 2 years repaying the entire amount.
When you earn an annual income of $30,000, spending 20% of your income towards unsecured debt can be a very difficult task.
When you combine this with the fact that you are the only working member and your spouse has lost his or her job and that the expenses are always increasing, the idea of quick and simple bankruptcy to overcome your financial problems seems very beneficial.
If we take the same situation described above but we have increase the total annual income to $100,000, it is obvious that you do not need a debt settlement.
Even if you have defaulted on debt, you can always go in for other debt relief options like consolidation or even an interest holiday to overcome your short term problem.
Settlement always works in tandem with other debt relief options.
You can even go in for a bankruptcy after you have finalized this option.
Well, you cannot rely on third party for your financial benefit.
It is your duty to focus on the benefits and disadvantages of personal debt settlement and find out whether it makes financial sense are not.
Generally speaking, it is rational to expect the debt settlement deal to offer the following benefits -Reduction in the total amount owed.
-The ability to make monthly repayments very easily.
-Reduction in the stress and pressure put by credit card companies.
-Better planning and preparation for a financial emergency.
If the debt settlement deal does not offer these benefits, then you should not go in for the same.
Instead, you should rely on some other debt relief option.
Specifically speaking, if you have debts worth $10,000 and if you have skipped repayments for the past few months, you should go in for debt settlement.
The idea is that you should rely on this relief option when the current of the problem will lead you into bankruptcy.
If your debt has increased more than $10,000, it does not take a rocket scientist to conclude that you will have to put in a lot of effort to bring down the same.
Even if you spend $500 per month that is the $6000 in a year, you will still spend 2 years repaying the entire amount.
When you earn an annual income of $30,000, spending 20% of your income towards unsecured debt can be a very difficult task.
When you combine this with the fact that you are the only working member and your spouse has lost his or her job and that the expenses are always increasing, the idea of quick and simple bankruptcy to overcome your financial problems seems very beneficial.
If we take the same situation described above but we have increase the total annual income to $100,000, it is obvious that you do not need a debt settlement.
Even if you have defaulted on debt, you can always go in for other debt relief options like consolidation or even an interest holiday to overcome your short term problem.
Settlement always works in tandem with other debt relief options.
You can even go in for a bankruptcy after you have finalized this option.
SHARE
