Is Debt Settlement The Best Way to Get Out of Debt?
You’re shoulder deep in debt, overwhelmed, and unable to pay off lenders. Now what? Doing nothing will only exacerbate the problem. There truly is no better time than the present to get out of debt. You have options, let’s explore them: Bankruptcy, Debt Consolidation, and Debt Settlement.
Bankruptcy is a sure way to get out of debt. However this comes with a cost; attorney fees, and a steep penalty. Bankruptcy results in a public record (chapter 7 and 13). This public record is viewable by anyone looking to get a picture of your credit history. This includes employers (both current employers and potential employers). This will demonstrate a lack of financial stability and a poor regard towards your financial agreements. Bankruptcy is a major deterrent to lenders. Additionally, the derogatory mark on your credit report remains for 7 years after your discharged debt (date your filed bankruptcy was approved).
Debt Consolidation is a way to get out of debt for those struggling to make monthly payments on time. Debt Consolidation will keep you in limbo – often years- as you pay back your full balances. If you are not in a hurry to have improved credit this may be a suitable option for you. However, you will pay a premium to borrow the time it takes to get debt free. Consolidation loans come with high interest rates. Debt consolidation does appeal to those wanting to relieve the stress of juggling many creditors however you are going to pay a premium to “stress relieving companies” in the form of interest, often much higher than the already high interest rates your credit card companies were charging.
Debt Settlement is a way to get out of debt fast (6-36 months an average) and save a significant amount of money. Depending on the amount you can afford to put towards your program you can expect a time frame anywhere from 6-36 months to be debt free. With that in mind PCS puts careful consideration into any client seeking to enter into a debt settlement program. Therefore, PCS will only agree to help you if we believe it is the best option for your specific needs. We can not guarantee a percentage of savings, but based on our experience we give you an estimate of your total out of pocket costs to resolve all accounts. Typically a client will save 40% of their balance owed often times more. Unlike Bankruptcy, debt settlement does not result in a public record. You will be in and out of the program without notice to any employers, nosey neighbors, or in-laws.
Once clients complete their debt settlement program we strongly recommend credit restoration. Credit restoration programs help to jump start consumers credit health. Just as your credit didn’t get bad over night it will not improve overnight. However, you will be able to work your way up to your credit score goals in a matter of months with discipline and a commitment to your credit health. We will be happy to guide your way to a fresh start and a path of financial security. To get advice and determine your best option; call PCS Debt Relief at 636-209-4481.
Disclaimer: The information contained in this document is general in nature and provided as reference material only. This information is not specific legal advice about the application of the law to a particular fact scenario, nor does it replace (or purport to replace) any requirement to obtain specific legal advice. If you require specific legal advice about your own, your consumers’ or your organization’s position in relation to anything covered in this document, that advice should always be obtained from a qualified legal practitioner.
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