5 Ways You May Qualify for a Debt Settlement Reduction
For many people, debt settlement is a great option that releases them from their debt burden and provides a second chance at financial freedom. Debt settlement allows for a considerable amount of flexibility. However, it’s important to keep in mind that debt settlement is not a one-size-fits-all solution, nor is it the best choice for everyone.
If you’re not eligible for debt settlement, there are other options available to you. It’s important to weigh all your options before making a final decision so that once you’ve decided, you’re going in clear eyed and with reasonable expectations. If you have a considerable financial hardship and little income, for instance, bankruptcy might be the more realistic option. On the other hand, if you’re committed to maintaining a monthly budget, and you meet all of the qualifications, debt settlement is a great alternative to bankruptcy.
- You are faced with a significant financial hardship. Very commonly, debt problems arise as a result of sudden, unexpected financial burdens. For example, you might have recently lost your primary source of income, gotten divorced, or been faced with large medical bills. If this is the case, debt settlement is a practical option for you.
If your financial hardship comes as a result of circumstances outside of your control, you deserve assistance managing your debt.
- You are up to the challenge. Debt settlement is a relatively quick alternative to other types of debt relief. In spite of this, it isn’t always easy. If you’re the type of person to dig in your heels and commit to overcoming obstacles, you will likely find success with debt settlement.
If you are willing to go the distance, debt settlement is worth the struggle. It has provided tremendous financial relief to many of our clients by reducing their balance.
- You have accumulated the majority of your debt from credit cards. In today’s world, it is common for people to be reliant on credit cards. If you are like many Americans, you have acquired a lot of debt from credit cards.
The good news is that when it comes to debt settlement, credit cards are among those who are the most likely to negotiate deep discounts for our clients. If the majority of your debt is from credit cards, debt settlement is a good fit for you.
- Your budget is in line with our expectations. If you would like to successfully settle your debt, you should be able to consistently set aside a reasonable amount of money each month. The more you are able to build up, the faster you can move through the debt settlement program. Those who do not set aside enough money each month can easily become frustrated by the apparent lack of progress.
Most people set aside around 1.5% of their debt level on a monthly basis, which is low enough that it’s realistic for those with seasonal or commission-based income, but still high enough that it allows you to see a significant amount of progress.
- You can pull from other resources. Additional funds are not necessary if you wish to participate in a debt settlement program, but they are helpful when and if times get tough.
Examples of bonuses that you could use in the program include inheritance money, settlements from your insurance company, and gifts from family and friends. If you can afford to set aside more each month, large debt reductions will start coming your way even sooner.