Debt Settlement - Texas
If you need relief from high-interest credit card debts but are seemingly running out of viable options, you may be interested in finding out your debt relief options, including debt settlement. Today, many individuals and families in Texas, and elsewhere, have found relief from credit card debts by enrolling in debt settlement programs that allow them to settle, or negotiate, with their creditors for significantly less than what they originally owe.
Depending on your financial situation, debt settlement has the potential to give you savings and for you to successfully pay off your debts sooner than if you continued to pay your credit cards at high-interest rates, along with late fees and other penalties. However, you may have the type of debt that may qualify for debt consolidation through credit counseling. What debt consolidation allows is for you to combine multiple credit card and unsecured debts into one, easier-to-manage and more structured payment made to a credit counseling agency.
With a free debt relief analysis and savings estimate, you can find out how debt relief can help take the pressure off your current debt crisis and get you on the path to becoming debt-free. Answer a few, simple questions to begin.
Debt Settlement: Pros and Cons
For many consumers who are falling several months behind in their credit card payments, debt settlement can be a viable and proven debt relief option. As noted earlier, debt settlement allows consumers to settle with their creditors for a reduced amount of their original debts, giving them the potential to save a substantial amount in the process. Another benefit to settling your debts is, the impact to your personal credit is not nearly as damaging or long lasting as a personal bankruptcy - which can be an important consideration for consumers who had good or excellent credit ratings prior to settling their debts.
However, like other debt relief options, debt settlement comes with risks: As the term suggests, credit card companies are certainly not legally required to accept or "settle" with you. In many cases, you will be advised to set aside funds over time and then later use those funds to make a reasonable settlement offer or a "lump sum" amount. Many consumers, while saving up money for the settlement, forego paying their credit cards. In an effort to recover their losses, creditors might threaten to sue if you default on the terms of your credit card agreements.
In addition, if you default on the terms of your credit card agreement, your credit score will typically go down. However, despite the potential impact to your credit score, debt settlement remains a popular alternative to bankruptcy - which can have a more serious and longer-lasting effect on your personal credit.
Can I Also Benefit With Debt Consolidation?
Debt consolidation through credit counseling, or what is also referred to as a debt management plan (DMP), is another proven and legal way for many consumers to get relief from credit card debts and other types of unsecured debts. Here is a typical debt consolidation scenario:
Facilitated by credit counselors, debt consolidation generally begins with a thorough assessment of your financial situation - taking into account your income, financial obligations, and other assets. After credit counselors determine how much of your income you can allocate to paying down your debts, they will typically develop a strategy to help you pay off your debts sooner than if you only continued to make the minimum payments at higher interest rates. They will generally submit proposals to credit card companies, on your behalf, requesting lower interest rates and the waiving of late fees and penalties. Creditors that accept the proposals are added to the debt management plan.
When you enroll in a debt management plan, one of the benefits is that you will have, ideally, a more simplified and more affordable payment plan. For many consumers who have trouble managing their finances, having a single and more structured payment plan is preferable to having to deal with multiple payments.
How To Choose A Debt Relief Company
If you are truly overwhelmed with credit card and unsecured debts, now may be the time to get help from debt specialists. Keep in mind that because every individual's debt situation is different, it is generally a smart move to compare and contrast all your debt relief options, and do your due diligence when selecting a company to work with.
The bottom line is, there is help available for you if you want to take the next step in regaining control of your finances and getting a new lease in life. Find out now about your debt relief options. Request a free debt relief estimate along with a savings estimate - at no cost to you!