The Benefit of a Debt Settlement Program
Posted on Dec 13 2007 | Tagged as: Finance
More Americans today are falling deeper and deeper into debt with their credit cards. As a result many are searching out methods to reduce credit card debt. Debt settlement has become a very popular form of debt reduction due to the two major benefits of a settlement program. Which are the benefits of saving a lot of money and time.
In a debt settlement negotiation one can expect to reduce their debt up to 50% of what is owed.Unlike a credit counseling program where only the interest rate can be reduced. In a debt settlement program the actual balance owed will be lowered. Thus resulting in a major saving of money.
By lowering the amount owed by so much the amount of time until one is debt free will be decreased significantly. Most debtors will find themselves out of debt in 36 months. Which is way less than it would take someone to be out of debt by making only minimum payments.
Those that have found themselves starring down the barrel at bankruptcy, may find debt settlement to be their knight in shining armor.Making minimum payments at 100% of the balance owed averages around 38 years to pay off. Besides the fact that over four times of what a debtor owes will be paid in interest alone over the course of the time it takes to pay the debt down. Through debt settlement people can become free of debt much quicker than they would have while savings in most cases thousands of dollars. While settlement is a great avenue to become debt free it is not for everyone. Debtors must be in a legitimate hard financial time to qualify for most debt settlement services. The fastest way to see if you would qualify for a debt settlement program is to contact a reputable BBB registered debt settlement company.
Steve Martin is a debt analyst with the US Consumer Advocate, which practices debt settlement.
- Steve Martin