5 Reasons to Choose a Debt Settlement Program

Stressing over credit card debt? You are not alone; it has become a worry for so many. There are debt solutions, and none of them are easy to live with. They all require commitment and still have some downfalls. I've heard from so many people that did get into some kind of credit counseling, but as soon as they made some progress after making the needed sacrifices, they still ended up deeper in the hole due to some emergency or just plain frustration over the whole process. From reviewing all types of debt relief programs, I am convinced that a good Debt Settlement Program with a trustworthy company has actually helped the most people in their struggles to get debt free. If you have more than 10k in unsecured debt, you should really look into this.

1. You can reduce the debt owed by 40% to possibly 89% with reputable debt relief company. The reason for this is that they should be able to take your debt and add it to all of their client's debts, and then negotiate the entire amount. So instead of negotiating your 10k debt, they are negotiating 500k debt or more. Those that have been in business for a while have sound relationships with creditors and extraordinary contacts. Also, if you choose a good company, their pay scale should be set by how much they save you, so it would be in their best interest to get you the very best deal they can.

2. You don't need to risk your home as security. If you opt for a debt consolidation program, it will usually require that you get a loan, using your equity (if you still have any) and to place your home as security, thereby making an unsecured debt a secured debt. Risking your home is just scary. Besides that, you will still owe all the money and be required to pay everything back in full, the only negotiable item is possibly the amount of interest, or how long it will take. I've heard in many cases it takes way too long. In the interim, you are not to use any credit cards, which can be very hard to do over a number of years.

3. You can lose those collection calls. A good debt relief company will give you a personal counselor that will take over those calls for you. Now, this may not be "sure proof", because there are some creditors out there that just do not abide by the laws. But your counselor can tell you how to proceed if that is the case too.

4. Most debt settlement programs only take 2 or maybe 3 years to complete. This is not usually the case with debt consolidation, (which can go on for 5+ years). In the debt settlement program your debt gets greatly reduced, making it easier for you to cope with an agreed on plan you can set up with your counselor that will work for you in your own personal situation.

5. Sleep well, stop stressing over bills and know that you have a plan and help to stop being a slave to debt.

The Cons

· Yes, of there are cons. One is that your credit rating will be affected. However, if you are in this much debt, it most likely will be anyway, if it is not already. Under a debt settlement program this should only be temporary. Once your plan is in effect, it will not take so long to undo that damage, especially since you opted to follow a program to deal with your debt. It's not nearly as bad as bankruptcy or even a consolidation loan that some lending institutions look at as the same a bankruptcy.

· You may need to look at your tax situation. When you debts get reduced you could be held accountable for "money earned or gifted" to you. However, there are hardship laws in effect so that, thankfully, this has not been a problem for too many. Ask your counselor about this also.

· You may still get calls from those slimy creditors that refuse to believe you are debt free. Your counselor can also tell you how to deal with them, and if necessary, sue them.