With our economy hitting all-time lows, consumers are struggling to find ways to keep their heads above water to stay debt free. When debt is piling up, it’s hard to ignore phone calls from angry creditors and aggressive collection agencies. Most people get in debt due to a job loss, medical reasons, or catastrophic events.
What is the difference between bankruptcy and debt settlement?
People who’ve accumulated excessive debt and are unable to make their minimum payments have one of two options: debt settlement program or filing for bankruptcy. But what is the difference and how is it going to impact my credit? When comparing debt relief options it is important that you’re aware of the possible impact of each potential option. Trying to decide between the two options can be overwhelming; hence, it’s important to take into account your long-term financial objectives.
Debt settlement is a debt relief program where a majority of debtor’s debts are enrolled into a one reduced payment program to pay off the existing lenders. This program can be long or short-term. Depending on the financial circumstances, a debtor can decide whether to pursue a long-term (12-48 months) or short-term (1-12 months) program. Obviously, the quicker you pay off your lenders, the quicker you’ll become financially free. This is a better alternative to bankruptcy in terms of damaging your credit. Bankruptcy is going to have a long-term impact on your credit. For example, Chapter 7 and Chapter 11 bankruptcy will put a dent on your credit for about 10 years. Chapter 13 bankruptcy will remain on your report for 7 years from the filing date.
How We Can Help
At Strategic Debt Relief , we analyze your financial capabilities and the types of debt you have to figure out the best debt relief program. We look all your credit statements, lender names, interest rate, spending habits, account balances, minimum payments and other relevant information. As we work on your plan, we make all necessary adjustments to your budget to ensure that you can successfully stay on our reduced payment program to pay off your lenders and remain on target for your household spending. We also provide advice on a separate emergency fund for savings. Usually, it takes one to three days to devise a custom payment program which will work for you. Our goal is to ensure that you’re successful to becoming debt free. In fact, many of the consumers who’ve joined our program have been able to put away money saved into their savings or retirement account. Not only are they able to pay off their debts, but also plan for their future. This is a truly start fresh program, and it has changed the lives of many people who survived living paycheck to paycheck. We pride ourselves in brightening the lives of thousands of peoples every day.
You can count on Strategic Debt Relief to if you are falling behind on your payments and need an advice we’re glad to help. Our advisers are standing by, so don’t hesitate to call us 877-297-4477 for a free consultation.