Debt Settlements - Eliminate Unsecured Debt by 60% But Receive a Lower Credit Score
The meaning of eliminating unsecured debt by 60% is to remove a portion of your debt by negotiating with the creditors so that you can easily pay it off.
This sounds appealing to a lot of people as they are hit by the worst recession in history, causing them to lose their jobs or receive low wages, but like everything else in this world it also has a bad side.
The bad side is that as soon as your debt is settled with a reduced amount, your lenders will get their pound of flesh by specifying that you have resolved that debt and have not repaid in full.
This is enough to bring your credit score down by a huge margin.
Now the question is, is debt settlement a fair deal? Debt settlement is certainly not worse than filing for bankruptcy.
Bankruptcy has a lot of disadvantages, it reduces your credit scores to a great degree and the stain remains there for at least ten years.
It totally destroys your financial future as you cannot acquire loans any further, you cannot get a rental apartment or car and you cannot get a proper job.
Even if you get rich, that mark of bankruptcy will always be taken into account by everyone.
On contrary to this the effects of debt settlement program are less, the lowering of credit score is less and the stain doesn't stay for that long, moreover with healthy financial practices you can increase your credit score within a couple of months.
This is because in debt settlement you pay some amount to your lenders instead of nothing at all, which happens in bankruptcy.
In addition to that, there are more advantages of debt settlement, when you hire a professional debt reliever, they will also guide you how to manage your income and expenses, how you can prevent a debt from occurring again and what are the ways through which you can stabilize your credit scores.
The chances increase when you get a professional to arbitrate with lenders on your behalf.
He knows all the tactics and techniques to convince the creditors.
So if you feel hesitant in attempting debt settlement program, think about what filing for bankruptcy can cost you and then I am sure you would like to attempt debt settlement first.
Also there are other methods available like debt consolidation which should also be taken in consideration before choosing bankruptcy.
This sounds appealing to a lot of people as they are hit by the worst recession in history, causing them to lose their jobs or receive low wages, but like everything else in this world it also has a bad side.
The bad side is that as soon as your debt is settled with a reduced amount, your lenders will get their pound of flesh by specifying that you have resolved that debt and have not repaid in full.
This is enough to bring your credit score down by a huge margin.
Now the question is, is debt settlement a fair deal? Debt settlement is certainly not worse than filing for bankruptcy.
Bankruptcy has a lot of disadvantages, it reduces your credit scores to a great degree and the stain remains there for at least ten years.
It totally destroys your financial future as you cannot acquire loans any further, you cannot get a rental apartment or car and you cannot get a proper job.
Even if you get rich, that mark of bankruptcy will always be taken into account by everyone.
On contrary to this the effects of debt settlement program are less, the lowering of credit score is less and the stain doesn't stay for that long, moreover with healthy financial practices you can increase your credit score within a couple of months.
This is because in debt settlement you pay some amount to your lenders instead of nothing at all, which happens in bankruptcy.
In addition to that, there are more advantages of debt settlement, when you hire a professional debt reliever, they will also guide you how to manage your income and expenses, how you can prevent a debt from occurring again and what are the ways through which you can stabilize your credit scores.
The chances increase when you get a professional to arbitrate with lenders on your behalf.
He knows all the tactics and techniques to convince the creditors.
So if you feel hesitant in attempting debt settlement program, think about what filing for bankruptcy can cost you and then I am sure you would like to attempt debt settlement first.
Also there are other methods available like debt consolidation which should also be taken in consideration before choosing bankruptcy.