Reasons Why You Should Go For Debt Settlement
Posted by Marcus Smith on March 4th, 2020
Nobody likes to be in debt. It is a situation where you’re not able to live freely as the pressure of debt looms large over your life. Debt settlement in Texas is a strategy in which you hold talks with your creditors and request them to accept partial payment as your whole debt payment. If your creditor accepts the request, in that case you only have to pay a percentage of your whole debt amount; the rest of the debt amount is canceled.
A debt settlement company can help you reach such a favorable scenario as they have years of experience in settling debt for their costumers. Below are some of the advantages of using debt settlement.
- Bankruptcy is something that will appear useful at the time of filing, but it will continue to haunt you for years to come. One big disadvantage of bankruptcy as a solution for debt is that for the next 10 years, it will continue to appear on your credit report. This becomes problematic when you apply for loans, job applications, credit cards as they can inquire if you ever applied for bankruptcy. If you say no and the institute finds out late that you actually have, a case of fraud can be filed against you. You can avoid bankruptcy by opting debt settlement. Debt settlement stays only for 7 years on your credit report and there isn’t any public record of this.
- Debt settlement is meant to be used in situations where the debt is overwhelming and makes it difficult for you to pay it off due to certain restrictions. But you should not at all accumulate a large sum of debt, expecting to settle it through debt settlement. Debt settlement program in Texas is to be used only if you are genuinely struggling to pay off your debt. The reason why you should choose debt settlement is that even creditors know that they may not get much from you filing for bankruptcy. But your case must be genuinely serious for them to accept your request.
- Another advantage of debt settlement is that it takes less time for you to pay off your debt, about 2 to 4 years. Other options such as credit counseling and debt consolidation will take about 3 to 5 years of time. You could be paying debt for decades if you choose to stay with the original repayment process.
That is why it is best that you opt for debt settlement to deal with your high debt. A debt settlement company in Texas can negotiate with your creditors on your behalf and provide a solution that will prove extremely helpful and settle your debt in less time.