Your credit score will be worse off and you’ll still be in high debt. At least using a settlement as a debt relief option, you can pay down what you owe, for less than what you owe, and through wise decision-making and restraint, your credit can heal. So is reducing 60% of your debt worth the lower credit score? Consider:
1. With debt settlement you’ll be out of debt. Financial relief may simply not be possible if you continue to ignore the rising cost and mental stress of your debt. Getting your finances settled, for less than you owe, up to 60% of what you owe, seems like a no-brainer. Your credit score will suffer initially, but in a couple years, it can be repaired and back on the rise. So you’ll be have debt relief and can begin to fix your credit score for your long term future.
2. You can avoid bankruptcy – There’s another advantage to debt settlement in that it is not connected or related to having gone bankrupt. When future loans or credit is applied for, your record will state that you paid down your debt, but not for the full amount. Declaring bankruptcy, on the other hand, will state that you never paid off your debts, you basically abandoned them. Most creditors will hold the bankrupt card against you for years and years to come. By opting for debt settlement and by reducing 60% of your loans, it would be worth the lower credit score in the long run.
Debt settlement is a legitimate way to make a deal with your creditors and walk away only having to pay half of what you actually owe. If you have over $10,000 in unsecured debt and realistically can’t pay it back then you might want to consider debt settlement.
To locate legitimate and reputable debt settlement companies in your state check out the following link:
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