123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Debt Settlement - Benefits And Effects

Profile Picture
By Author: Kartz Kenar
Total Articles: 79
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

"Debt settlement is one of the most effective forms of debt relief in America today. It has helped millions of consumers in credit card debt, medical debt, loan debt, and other forms of unsecured debt. Most importantly, it helps prevent consumers from filing for bankruptcy and consequently devastating their credit worthiness for seven years.

Debt settlement helps consumers with unsecured debts by reducing the total balance owed by a substantial percentage and eliminating the interest rate. Debt settlement programs are meant to help people who are overwhelmed by debt due to being over-extended as a result of financial or medical hardship. The best settlement rates are achieved when an account has not been in good standing for at least four months, meaning that those who are about to fall behind or have been behind on their payments are in luck. The average settlement rate in debt settlement is roughly between 40-60% of the balance. In debt settlement, it is important to remember that credit scores may decline in the beginning because the accounts enrolled will fall behind, but after four months they will begin to be negotiated. ...
... This will stay on a consumer's credit report as paid as agreed or settled, which are standard marks. When enrolled in debt consolidation or credit counseling, it states that the consumer is currently enrolled in a debt management program which is like a huge stop sign to new creditors when applying for any kind of credit.

One of the largest gains from a debt settlement program is the savings. When a company negotiates a debt down to 40%, the consumer doesn't only save 60% but much more. This is due to the interest rate being completely eliminated. Over a period of three to five years with an interest rate even as low as 5%, the consumer would be paying a lot more than the initial balance.

Debt settlement programs are also the shortest lasting programs out of all debt relief programs available today. Usually a debt settlement program lasts between 12-36 months. Debt consolidation and credit counseling programs have a standard of a 60 month term. Due to the speediness of debt settlement programs, consumers are able to be debt free much sooner and begin rebuilding their credit scores immediately. It usually takes two years of steady building to regain a credit score of approximately 750 from a score as low as 500."


To learn more about programs and how they can help you, you can receive a free consultation from on Debt Free Counselor's page. Visit: http://debtfreecounselor.com

Total Views: 209Word Count: 423See All articles From Author

Add Comment

Business Articles

1. Finding A Trusted Sustainability Consultant In Abu Dhabi
Author: Agile Advisors

2. Iso Certification In Dubai – Advantages For Business
Author: Agile Advisors

3. Best Forex Brokers List | Best Broker For Forex Trading 2024
Author: Top Forex Brokers Review

4. Celebrate Achievements With Customized, High-quality Awards From Trophy Deals
Author: Trophy Deals

5. Is 100% Company Ownership Possible For Expats In Saudi Arabia?
Author: jodonjo

6. We Are Hiring: Senior Executive - Indirect Taxation In Gurgaon!
Author: tanvir Khan

7. Ceratec Tower 1o8: The Eventual Fate Of Business Greatness In Balewadi, Pune
Author: Tarun

8. Enrofloxacin Manufacturer: Swisschemie
Author: Swisschemie

9. Ultimate Guide To Hotels In Mussoorie: Discover The Best Places To Stay, Including Hr Hotels And Resorts
Author: Hr Hotels and Resort

10. How Quickly Do Fast Cash Loans Online Pay Out Cash On The Same Day?
Author: Lucy Lloyd

11. Leading Digital Marketing Agency In Hyderabad And Unlock Your Brand’s Potential With Sanbrains Agency
Author: Sanbrains Seo

12. Celebrate Success With Customized Awards From Trophy Deals
Author: Trophy Deals

13. Title: Choosing The Right Humidity Stability Chamber Supplier For Your Manufacturing Needs
Author: bio gene

14. Complete Guide To Studying Mbbs In Poland
Author: Mbbs Blog

15. What Is The Process For Locating The Best Lender For Short Term Loans Online?
Author: Robert Miller

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: