Debt settlement is just one of the multiple ways to climb out of debt. It is always advisable that one should go for debt settlement when all the other options are exhausted. In other words, debt settlement should be best considered when you’re on the verge of filing bankruptcy. Since bankruptcy hurts your credit score for the next seven years, you can go in for settling your debts through a Credit Repair Company. Read on to know how you would avoid bankruptcy with credit card debt settlement.
Top 5 Tips For avoid bankruptcy with credit card debt settlement
1. Single and convenient monthly payment:
Debt settlement can come as a respite for those who have become tired making multiple payments towards multiple credit card accounts. It is a process in which the debt consultant of the debt settlement company will negotiate with your creditors and reduce your debt amount. In exchange of their services, you’re required to make single monthly payments to the debt settlement company that will be distributed among your creditors with due time.
2. Drastically reduces debt:
Among all the debt relief options, debt settlement is the only option that drastically reduces your debt amount. Though after FTC has passed a new set of rules where debt consultants cannot make grandiose promises of reducing your debt burden to its half, yet your debt amount reduces to a certain extent. This may not be possible with the other debt relief options as you may extend the term of repayment, but it will cost you more than what you owed.
3. You become debt free sooner:
By settling your debts with a debt settlement company you can get rid of your debt burden within 36 months. As your debt amount is drastically reduced, it becomes easier for you to repay the amount in single affordable monthly payments. As you start making your payments to the debt settlement company, you start reducing your debts and ultimately become debt-free and avoid filing for bankruptcy.
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