There is no such thing as the best ever financial option. There always are pros and cons involved. Whether the pros outweigh the cons or whether the disadvantages are more - that is the moot question.
You will have to carry out this analysis when you are contemplating relying on a debt negotiation program to overcome your financial problems. The biggest advantages of a debt negotiation are that your debt comes down by more than fifty percent in a single negotiation deal.
On the other hand, this advantage does not come cheap. You will have to bear the various disadvantages of a debt negotiation deal as well. For starters, your credit score will take a huge hit. Let not any professional con you into believing that the debt negotiation deal comes without any disadvantages.
Your credit score will take a hit as bad as it would have taken had you opted for bankruptcy. The only difference here is that the negative impact is close to permanent in case of bankruptcy. The mention becomes a part of the public record of the credit history and will be witnessed by each and every individual who checks your credit report.
On the other hand, the debt settlement deal will be indicated on that particular debt and will be removed ones the debt has been repaid in full. Or, you can get in touch with your lender and request him or her to remain silent on that point. Hence, it will be easier to recover and improve your credit score when you have used a debt negotiation deal.
The second disadvantage, one which very few people bother about, is the tax implications. If you save more than six hundred to eight hundred dollars in a debt settlement deal, you will have to pay tax on the balance amount.
If you do not pay tax, the tax collector will impose penalty and you will have to bear liability on the amount saved. Nine out of ten instances, fraudulent service providers hide this fact and even professional service providers do not mention this as an important point.
The end result is that the person who opt for the negotiation deal finds that his or her savings come down drastically. You should consider this point when you are determining the fees of the professional service provider. Twenty percent of sixty percent saving does not make sense if you are going to pay another thirty percent on the money saved as tax.
If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:
Free Debt Advice
contact us for free debt advice = 8886916918
You will have to carry out this analysis when you are contemplating relying on a debt negotiation program to overcome your financial problems. The biggest advantages of a debt negotiation are that your debt comes down by more than fifty percent in a single negotiation deal.
On the other hand, this advantage does not come cheap. You will have to bear the various disadvantages of a debt negotiation deal as well. For starters, your credit score will take a huge hit. Let not any professional con you into believing that the debt negotiation deal comes without any disadvantages.
Your credit score will take a hit as bad as it would have taken had you opted for bankruptcy. The only difference here is that the negative impact is close to permanent in case of bankruptcy. The mention becomes a part of the public record of the credit history and will be witnessed by each and every individual who checks your credit report.
On the other hand, the debt settlement deal will be indicated on that particular debt and will be removed ones the debt has been repaid in full. Or, you can get in touch with your lender and request him or her to remain silent on that point. Hence, it will be easier to recover and improve your credit score when you have used a debt negotiation deal.
The second disadvantage, one which very few people bother about, is the tax implications. If you save more than six hundred to eight hundred dollars in a debt settlement deal, you will have to pay tax on the balance amount.
If you do not pay tax, the tax collector will impose penalty and you will have to bear liability on the amount saved. Nine out of ten instances, fraudulent service providers hide this fact and even professional service providers do not mention this as an important point.
The end result is that the person who opt for the negotiation deal finds that his or her savings come down drastically. You should consider this point when you are determining the fees of the professional service provider. Twenty percent of sixty percent saving does not make sense if you are going to pay another thirty percent on the money saved as tax.
If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:
Free Debt Advice
contact us for free debt advice = 8886916918