Debt Settlement - Michigan
If you have high credit card debts that you can no longer afford to pay, there may be a debt relief solution such as "debt settlement" that could allow you to negotiate with your creditors for substantially less than what you currently owe. This debt settlement approach is also known as debt negotiation. Today, many individuals and families in Michigan, and other states across the country, have found relief from credit card debts by enrolling in debt settlement programs that allow them to settle, or negotiate, with credit card companies for significantly less than their original debts.
Depending on your financial situation, debt settlement could lead to substantial savings and help you pay off your high credit card debts. However, debt settlement is not the only debt relief option that is available to consumers struggling with credit card debt. One other option is debt consolidation through credit counseling - which allows you to combine multiple credit card and unsecured debts into one, easier-to-manage and more structured payment made to a credit counseling agency.
To find out how debt relief could help take the pressure off of high credit card debts and help you breathe easier, get a free debt relief analysis and savings estimate - from MichiganDebtRelief.org today.
What are the Pros and Cons of Credit Card Settlement?
For many consumers who are falling several months behind in their credit card payments, debt settlement could certainly be a viable and proven debt relief option. As noted earlier, debt settlement allows consumers to settle with their creditors for a reduced amount of their original debts, giving them the potential to save a substantial amount in the process. Another benefit to settling your debts is - the impact to your personal credit is not nearly as damaging or long lasting as a personal bankruptcy - which can be an important consideration for consumers who had good or excellent credit ratings prior to settling their debts.
However, like other debt relief options, debt settlement is also associated with potential risks: As the term suggests, credit card companies are certainly not legally required to accept or "settle" with you. In many cases, you will be advised to set aside funds over time and then later use those funds to make a reasonable settlement offer or a "lump sum" amount. Many consumers, while saving up money for the settlement, forego paying their credit cards. In an effort to recover their losses, creditors might threaten to sue if you default on the terms of your credit card agreements.
In addition, if you default on the terms of your credit card agreement, your credit score will typically go down. However, despite the potential impact to your credit score, debt settlement remains a popular alternative to bankruptcy - which can have a more serious and longer-lasting effect on your personal credit.
Can I Also Benefit with Debt Consolidation?
Debt consolidation through credit counseling, or what some consumers also know as a debt management plan (DMP), is another proven and legal way for many consumers to get relief from credit card debts and other types of unsecured debts. Facilitated by credit counselors, debt consolidation generally begins with a thorough assessment of your financial situation - taking into account your income, financial obligations, and other assets.
After credit counselors determine how much money you can allocate to paying down your debts, they will typically develop a strategy to help you pay off your debts sooner than if you only continued to make the minimum payments at higher interest rates. They will generally submit proposals to credit card companies, on your behalf, requesting lower interest rates and the waiving of late fees and penalties. Creditors that accept the proposals are added to the debt management plan.
When you enroll in a debt management plan, one of the benefits is that you will have, ideally, a more simplified and more affordable payment plan. For many consumers who have trouble managing their finances, having a single and more structured payment plan is preferable than having to deal with multiple payments.
Choosing a Debt Relief Company
If you are truly overwhelmed with credit card and unsecured debts, there is no better time than the present to get help from debt relief specialists. Keep in mind that because every individual's debt situation is unique, it is generally a smart move to compare and contrast all your debt relief options, such as debt settlement and debt consolidation. Do your due diligence when selecting a company to work with.
The bottom line is, if you are truly overwhelmed with credit card debts, there is help available to you if you want to take the next step in regaining control of your finances and getting a fresh start in life. Find out now about your debt relief options. Request a free debt relief estimate along with a savings estimate - at no cost to you!