Debt Settlement vs Other Relief Options

Each debt relief option has the same goal: assist families and individuals to get rid of debt. While their goals are similar, they may affect your long-term and short-term financial health. Comparison of the benefits of debt settlement vs. other options for relief such as debt consolidation loans, filing for bankruptcy and having the minimum payments can help you decide the most appropriate option for your specific needs, such as cutting down on your monthly payments check out here.

Debt Settlement Vs. Consolidation of Debt Loans

Debt settlement lets you settle your debt at a lower rate than what you owe, while simultaneously combining and reducing your monthly payments obligation by as much as 50 percent.

The debt consolidation loans consolidates your monthly payments for several debts, but it doesn’t reduce the amount that you are obligated to. The consolidation loan might offer a lower rate of interest than what you had to pay prior to it, which could make it easier to save money.

Debt Settlement vs. Making Minimum Payments

Through lowering the amount you owe it helps you fight the issue of compounding interest. You’ll pay back a set amount within 12 to 48 months according to the conditions that you have agreed to in your settlement plan that stops interest from prolonging the time frame for repayment.

Paying minimum amounts is one of the slowest and most costly method in order to repay debt. A majority of minimum payments are small to cover the interest that is accruing that means only a small portion of your monthly income pays down the principal balance, and your debt will continue to increase!

Debt Settlement is different from. Bankruptcy

Both bankruptcy and debt settlement can help you settle your obligations for less than what you owe. But, they affect your financial health in the long run and creditworthiness in a different way.

Both bankruptcy and debt settlement can affect the credit rating of your client. However, the impact is less dramatic in the case of debt settlement. A recent study of clients who graduated by Accredited Debt Relief, 100 percent of those who signed up with an acceptable rating (580 from 669) finished their program in a way that increased or maintained the same.

A bankruptcy filing can have a negative impact on your financial standing for up 10 to seven years based the type of bankruptcy you make. Even when your debts are completely cleared, the true price of bankruptcy is as legal costs as well as damage in your creditworthiness. The process of borrowing money, renting or buying a home and obtaining a job and many more are affected by bankruptcy.

Debt Settlement can significantly reduce Your Monthly payment

If you’re facing financial difficulties and have debt that you’re able to pay it off over between two and four years time, debt settlement could assist in paying off your debts lower and quicker than you could on your own.

Settlement of debt with Accredited Debt Relief could reduce your monthly payments by as much as 50 percent. It can also lower the amount of debt you have and could save thousands of dollars when in comparison to the debt consolidation loan or making only minimum payments.
If you’re having trouble paying your debts, call an expert in debt to receive an no-cost quote.

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