Debt settlement has recently become a very popular way to eliminate debt. For some people, it may be a viable option for them to get out of debt quickly. Still, is debt settlement really the most affordable way to get out of debt? Let us take a deeper look into this question. Click here to contact the best debt relief specialist in all of Louisiana.
First of all, it is important to understand that you will be charged for these services. In some cases, these fees can amount to hundreds of thousands of dollars. This fee will be required by the company that you are going to negotiate with, whether it is a traditional negotiation service or a debt settlement agency. In addition to these fees, you will also be required to negotiate with your creditor and write a payment plan to pay off your debts over the next few years.
Is debt settlement really the most affordable way to get out of debt when compared with filing bankruptcy? The answer is no. When you file bankruptcy, you are actually telling the federal government that you will not be able to pay any of your debts. This gives the creditors a very easy opportunity to increase the amount that you owe by charging you new fees. By charging you fees, they will gain a new revenue stream that they do not need. This increases their ability to gain more interest from your debts in the future.
How do debt settlement programs work? One of the ways in which they work is that you will make one payment to the company that you are using. After the company deducts their fee, you will then make another payment to them. This is typically done monthly. This is how you are able to settle your credit card debts in a very affordable way.
What if I cannot afford a settlement agreement? Well, if you can’t afford a settlement agreement, you do not have to worry about that at all. Most of the creditors that you deal with will allow you to go ahead and file for bankruptcy without having to worry about these things. You may even find some companies may offer to negotiate directly with the credit card companies for you instead of you going through a settlement agency. There are even some companies that you can go through on your own.
There are pros and cons to both options. Before you decide on what you want to do, it is important that you consult a professional debt settlement attorney. They can help you weigh the pros and cons of what each option can do for you. They can tell you which is better for your financial situation.