How Debt Settlement Can Help You

How Debt Settlement Can Help You

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Debt settlement is a great option for many individuals and families that would otherwise have to go through bankruptcy. When it comes to debt settlement vs bankruptcy, most people would certainly choose a settlement option. Below are just a few of the advantages of debt settlement, especially when compared to the more "serious" solutions.

1 – Debt Settlement Allows You to Work with Creditors More Closely

Because part of debt settlement involves the help of a professional with connections, an individual will be able to talk to creditors much more closely. There will be a greater amount of flexibility once a creditor knows that you have a professional on your side who speaks the language of finance.

2 – Debt Settlement Allows You to Avoid the Court System

Although many people consider the court system their salvation in the bankruptcy process, the truth is that bankruptcy is much less friendly to debtors than some people might have you believe. The court system also tends to dictate solutions based on generalities rather than individual scenarios, so basically a debtor is rolling the dice when taking the bankruptcy route.

Bankruptcy is also quite expensive, much more so expensive than debt settlement. Because bankruptcy requires a lawyer, there is overhead that is simply not necessary in the private debt settlement market.

3 – Debt Settlement Spares Your Long Term Credit Score

Contrary to popular belief, debt settlement does not have to affect your long term credit score. Because bankruptcy is done completely within the court system, negatively affecting your long-term credit score is unavoidable. If you want to maintain your financial leverage while paying back your debt, debt settlement is leagues beyond bankruptcy. You can learn more specifics of debt settlement, also known as a consumer proposal, from bankruptcy trustees like Paddon & Yorke in Toronto or others in your area.

4 – Debt Settlement Can be over Much More Quickly than Bankruptcy.

If you are looking to move on to your next business, then you will definitely want to consider debt settlement rather than bankruptcy. Bankruptcy tends to take a much longer period of time, not only because of the bureaucracy involved, but also because it is much more expensive. By taking on the overhead of bankruptcy, you will be extending your debt for many years.

5 – Get Counseling Before Debt Settlement

Before you make a decision, consider financial counseling to investigate all your options. You can find legal and government-approved agencies that will look over your financial circumstance to learn what approach will work best for you. There are private debt settlement companies that may actually hurt your situation rather than help it, so make sure you research the company beforehand and consider places that will give you evaluations either for free or for around $20. If a company is asking for huge upfront costs, you may want to avoid them.

Because of the increased resources that are easily available to the average person thanks to the Internet, there is much more opportunity for a better settlement without involving the law. Most savvy individuals are eager to take advantage of these new opportunities because of the advantages listing above along with many others.

About the author: A recent college graduate from University of San Francisco, Anica loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote. Also, cartwheels are her specialty.

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