If you are overrun with debt, you may want to just shut off your phone and throw out the bills without looking. Unfortunately, ignoring the problem tends to multiply your troubles over time. Ignored debt amounts continue to grow due to interest, fees and other charges added to your accounts. Eventually, you will find yourself without the tools needed to achieve debt relief and start over on your financial journey. To save yourself from this situation, immediately respond to the constant barrage of bills by seeking out debt settlement assistance.
When your accounts go delinquent, the original creditors prepare to hand them off to a collection company. When the creditors go ahead with this process, they tend to sell the accounts for pennies on the dollar. If you seek debt settlement assistance before this happens, your credit counselor can negotiate a similar rate on your behalf. If the creditor and credit counselor reach an agreement, you may be able to pay a portion of the owed amount in exchange for a paid in full designation on your credit report.
As your debts remain delinquent, your credit score steadily drops toward the poor rating. If you elect to file bankruptcy, rather than negotiate and pay off your debts, your credit score will drop even further. Unpaid debts and bankruptcy continue to impact your credit score until the reports drop off in about seven years. By choosing debt settlement services, you can protect your credit score from dropping to an all-time low. With the negotiated repayment plan, you will make mutually acceptable, timely payments that keep your debts from reducing your credit scores.
Peace of Mind
Facing high debt amounts can have a negative impact on your peace of mind and mental health status. In fact, studies show that even low credit card debt can weigh heavy on the mind and increase the risk of developing depression. The main reason for high stress is that credit card bills and other unsecured debts lack the benefits of long term financial investments, such as mortgages and business loans. To reduce your stress levels, you can leave the debt management to credit counseling professionals. With every dollar you dedicate to your repayment plan, you will experience a stress reduction due to your focus on building a healthy financial future.
Debt settlement professionals will strive to impart the knowledge you need to regain control of your finances for good. You can learn more about budget creation, debt resolution and saving strategies during the debt settlement process. Your credit counselors look at your unique financial situation to help you develop a plan that will work for your income level and debt requirements. Although the initial counseling session may provide you with the framework you need to succeed, you can also attend follow up appointments to gain advanced knowledge on the finer nuances of financial management.
Obtaining Settlement Assistance
Debt settlement professionals can lead you through the resolution process for all of your delinquent accounts. The credit counselors negotiate with the creditors on your behalf to find a suitable repayment plan or payoff amount for each debt on the list. These professionals utilize inside market information to net you the best results every time. As a result, you will likely end up saving money, preserving your credit, reducing stress and gaining knowledge by choosing debt settlement services. With the credit counseling knowledge gained from the process, you can fine tune your finances in an attempt to remain debt free well into the future.