Can Debt Settlement Really Allow Me to Pay Back Less Than I Owe?

Many people are struggling to pay off credit card debt, medical bills or other unsecured debt and they’re wondering if the debt settlement advertisements on TV, radio or the Internet are for real?

Every day I speak with good people across the US who are financially overwhelmed. Many are unable to make the minimum payments on the credit cards, or on other unsecured debt. Maybe they can’t borrow against their home as property values have plummeted. Maybe they can’t make the payment suggested by credit card counseling agencies, or they simply want to avoid bankruptcy.

People struggling with serious credit card debt often ask:

• Can I really get out of debt for a fraction of the cost and pennies on the dollar?
• Can debt settlement help me get out of debt quickly, legally and safely?
• And what are the effects on my credit rating or my taxes?

As you may imagine, I’m also often asked, “Am I a good candidate for debt settlement?”

For many years helping people all over the US to get out of debt, in general, if you can comfortably pay back your debts on your own by paying more than the minimum payment every month without hardship, then you should continue to do so. It may not impact your credit score and it may be relatively trouble-free. If this is your situation, I recommend an accelerated pay off strategy.

But if you owe over $10,000.00 in unsecured debt and you’re having a financial hardship; maybe you’ve lost your job, your income has been cut, you’re already delinquent on your payments, or maybe you’ve gone through a divorce, have a medical illness or medical expenses and don’t want to or can’t file bankruptcy, then debt settlement from a trusted and time-tested organization is usually the best option.

When is debt settlement NOT an option?

If you’re unsecured debt balances are under $10,000, you can settle your own debts but will not qualify for most settlement programs.

Consumer credit counseling may also be an option. Your payment can be consolidated into just one, and typically interest rates are reduced on your accounts. However, many credit card counseling programs have a very high dropout rate, can last up to 5-7 years and you end up paying back 100% of the debt you owe plus any new interest. Again, that’s why so many find that debt settlement is usually the best option.

If you are unable to pay your minimums or even afford the minimum savings requirements for a legitimate debt settlement program, then you should speak with a bankruptcy attorney.

However, as long as you can afford to save the money needed for settlements, then debt settlement really can allow you to pay back much less than you owe, typically less than half of your balances at the time of settlement.

What’s the final answer?

YES, debt settlement can really allow you to pay off your debt for less than what you owe, typically for 50% or less, allowing you to get out of debt FAST.

Debt settlement is the fastest way to get out of debt for the least amount of money while avoiding bankruptcy.