I Have Debt – Settlement Pros And Cons

The Pros and Cons of Debt Settlement

Debt settlement can rather quickly and less expensively get you of debt. Sounds great, right? Well, not so fast! Slow down and read all you can about the differences between debt consolidation, bankruptcy, or consumer credit counseling. If debt settlement seems to be best for you, go through this list of pros and cons to make sure you understand all that is involved in the process and what you can expect.

Pros for settlement:

* Debt is quickly eliminated; time is dependent on the amount owed.
* Working with a debt settlement counselor, you can be debt free in two to three years, paying $25,000 off with a $600 payment over 24 months, or $400 over 36 months, typically.
* It can be a great feeling to pay off each of your debts.
* Settlement saves you a large percentage of what you owe.
* Payment times and terms are open to negotiation.
* Settlement agencies can work with creditors for you and quickly get them off your back.
* You will be paying off multiple accounts at most times.
* Some debts can be settled on the spot if you have a larger sum of money to work with.
* You will save thousands of dollars by settling your debts.
* You have control over the settlement terms and payments.
* Having a good grasp of the law will often tame down a zealous debt collector.

Cons for settlement:

* Creditors can be inflexible and frustrating.
* Original creditors are much less likely to deal than collection agencies.
* The process can be very emotional if you go it alone.
* Collectors can continue collection activities, even lawsuits, until you meet the agreed upon terms of your negotiated settlement.
* Some debts are smaller and will be paid off more quickly; others will take a lot longer.
* There is a charge for debt settlement counselor’s work, based upon the amount saved.

Though collection agencies can be aggressive, annoying, and sometimes insulting; there are laws that they must follow. These laws can be very helpful in negotiating good settlement terms on your debts, so be sure that you know the laws in your state and how they affect your debt and settlement procedures. You may decide to settle your debts on your own, but if the process is too much for you, you should probably consult a professional debt settlement agency. There are many reputable debt settlement agencies online as there are debt scams. The best place to begin your research would be a debt relief review.