Debt Settlement Pros and Cons

Deciding to pursue debt settlement can be tough, particularly if you’ve been trying to stay financially afloat on your own. There is freedom in finding a reputable and knowledgeable debt settlement specialist. Your advisers within the company can assess overall debt to income ratios, lower your balances, and even develop a payment plan that fits your tight budget. Before signing up for a debt settlement program, though, identify all the debt settlement pros and cons.

Advantages of Debt Settlement

1. Since creditors generally feel that it’s better to be paid a portion of your balance rather than nothing, they’re often amenable to lowering balances. Your debt settlement program may reduce your balance as much as 50 percent.

2. While it can affect your credit for a short time, debt settlement is much easier to recover from than bankruptcy. When you work with a trustworthy company, you may even be able to pay off your debt in two years or less.

3. Your debt settlement service works directly for you rather than your creditors, so they have your best interests in mind.

4. Your Adviser can find a payment plan that fits your budget and reduce your monthly obligations.

Disadvantages of Debt Settlement

As you consider debt settlement pros and cons, you’ll discover that settlement is often a freeing solution. It’s not for everyone, however. If you’re only a month or two behind on your payments and foresee a financial turnaround, it’s better to work with your creditors directly.

Our affiliate, RAM Financial Services, will supply you with a confidential, quality financial consultation before developing your debt management program. In addition, RAM Financial can answer your questions about debt settlement pros and cons when you call 866.572.4310 today for a free financial analysis, or fill out the Get Out of Debt Form to get more information from one of their friendly Consumer Advocates.

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