Has it been a constant struggle with you to get your debt under control? Or perhaps, you are concerned about making payments timely or you have fallen slightly behind. Maybe it’s time to think about debt relief as a means of resolving your debt issues. Much has been written about the strategy and yet, there remain several hidden benefits to debt relief, let’s take a look at some of them…
One of the perks of establishing a debt relief plan is the money you will save on interest. When creditors agree to accept settlement proposals, one of the key concessions is usually an interest rate reduction.
Others include fee waivers and sometimes even forgiveness of a portion of the principal loan amount. Done well, a debt relief program can save you money.
For many people, debt can be an overwhelming issue. Ironically, we live in a society largely driven by consumerism, and we are told borrowing to get things is OK, as long as you make sure you pay back what you owe. Tremendous stigma is attached to being unable to pay your debts, even as we are encouraged to borrow more and more.
Now, we’re not saying it’s OK to borrow with no intention of making good on your promises, but it is ironic that we are often manipulated onto borrowing more than we can afford, then labeled losers when the inevitable comes to pass. Within that, getting debt under control holds the potential to improve your mental health and give you a positive attitude about the future.
Debt negotiation companies like Freedom Debt Relief have found their clients always feel better about themselves when the settlement program is complete.
According to the New York Post, Chris Cataldo of Staten Island, NY saw this firsthand. “It was a big surprise to me in the beginning,” Cataldo told The Post. “Between me and ex-wife, we had made a pretty good salary together, so I could not understand why there wasn’t enough money to cover the credit-card bills.”
Brad Stroh, one of the founders of Freedom Debt Relief says, “Compound interest and fees had pushed his debt out of his reach, almost without him realizing it was happening.”
In debt over his head to the tune of $60,000, Cataldo’s life was quite stressful. Ultimately, Freedom Debt Relief helped him settle that debt for $8,000 and yes, he’s breathing much easier these days.
Long Term Credit Benefits
Now with that said, yes the process of conducting a debt settlement program will cause your credit score to fall in the short term. Part of debt settlement entails diverting the money you use to pay your creditors into a fund you can employ to support your settlement agreements with one-time payments in full of the agreed-upon settlement amount. And yes, this will have an adverse affect on your credit history.
However, if you’re in a situation in which debt settlement is an advisable maneuver, your credit score has already fallen. It can be to your strategic advantage to let it fall a bit more, then work on improving it once your settlement program is complete.
The hidden benefits of debt relief go far beyond the few we’ve listed here. However, one must commit to the program and be certain they can follow through with it to get a result like Cataldo’s. Otherwise, you could end up in an even worse spot. You must also be careful to align yourself with an experienced firm like Freedom Debt Relief to get the best possible result.