Debt settlement is a process that allows you to pay off debt faster by negotiating an amount that is lower than the total amount you owe. Settlements are achieved through negotiation between lenders and consumers or a third-party debt settlement company.
Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Many people face a financial crisis at some point in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming.
Most debt problems are caused by loss of income, medical issues, or divorce / separation. These are legitimate financial hardships that can happen to anyone through no fault of their own, and any one of these situations can wreak havoc on a household budget.
If you are over your head due to a hardship circumstance, and you’d prefer to work things out with your creditors rather than declare bankruptcy, then Debt Settlement can provide an honest and ethical debt relief alternative.
Most types of unsecured debt can be negotiated, including lines of credit, signature loans, repossession deficiencies, financing contracts, department store cards, miscellaneous bills and more. The deepest discounts, however, are usually obtained with credit card debts; so if the majority of your debt load is comprised of credit card debt, you can anticipate good results from the Debt Settlement strategy.
With a Debt Settlement program, you must be able to build up funds for settlement at a reasonable pace. A good rule of thumb is that you should be able to set aside roughly 1.5% of your debt level on a monthly basis. So, for example, if you owe $30,000 in unsecured debt, you should be able to consistently set aside $450 per month. This would allow for a program of approximately three years’ duration.
Budgets vary from month to month, so it’s possible to set aside 1% one month, and make up for it by setting aside 2.0% the following month, so long as the average over time is around 1.5%. This makes the program ideal for people whose income varies up and down because of overtime pay, seasonal cycles, or commission-based income. But if you’re funding the program consistently below the 1.5% monthly level, the duration will stretch out to the point where you may become frustrated with the lack of progress.
Additional financial resources are a bonus with any Debt Settlement programs. Small inheritances, insurance settlements, cash-value life insurance policies, even borrowing from friends and family are a few of the alternate sources of funding that clients have used to take advantage of extra large debt reductions.
Such resources are not necessary for debt settlement success. They’re just nice to have.
National Financial Relief is one of the most dependable debt settlement companies in the nation. We are made up of smart, compassionate and energetic people who genuinely want to help you get out of debt.
Clients who are able to stay with the program and get all their debt settled realize approximate savings of 50% before fees, or 30% including our fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.
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See how much you can save every month — with your personalized plan from National Financial Relief.
See how much you can save every month — with your personalized plan from National Financial Relief.
