How to Achieve Financial Happiness After Incurring Debt
Debt Settlement
Debt is a fact of life for nearly everyone in the modern era.
If you have racked up thousands, tens of thousands, or even hundreds of thousands of dollars in debt, you should know that you are not alone and financial happiness is still possible.
Consider the merits of debt settlement as detailed below and you’ll wipe your financial slate clean for a fresh start.
The Basics of Debt Settlement
Debt settlement occurs when a debt is settled for less than owed, providing the debtor with the opportunity to transition to a new financial beginning.
Though debt settlement does not fully rectify the debtor’s credit rating, it will remove the debt in question from the report.
Be sure to choose a debt settlement attorney who pushes the creditor to remove all references to the debt after the settlement is completed.
Your settlement can be for the entire amount owed or part of the amount.
Most people who settle debt pay a percentage of the money owed, ultimately presenting a golden opportunity to transition to a new financial start without the black cloud of debt hanging overhead.
Why Settling Debt is Becoming More Normative
It is no secret that the middle class of the United States is rapidly declining in size. The cost of living including the cost of higher education is skyrocketing yet wages are not increasing at the same pace.
As a result, more and more people are mired in debt, some of which simply cannot be paid.
Instead of attempting to battle the creditor in a court of law, the better approach might be settling the debt for part of the balance.
It is best to leave the debt settlement negotiations to a debt settlement attorney rather than attempting to do it on your own.
Debt settlement specialists know exactly how to negotiate settlements on behalf of those who owe money to creditors.
Though no one wants to default on a line of credit and end up paying only a percentage of it, doing so ultimately proves mutually beneficial for both parties.
Debt settlement provides the creditor with some of the money owed.
This arrangement also empowers the debtor to preserve his or her credit rating, close out the account and move without worrying about collections calls and letters.
Debt Settlement is Worth the Time and Effort
Though a debt settlement negotiation period might take some time to culminate in a financial arrangement that both parties find beneficial, it is worth the effort.
In particular, those who owe several thousand dollars or more find debt settlement’s merits outweigh the comparably insignificant downsides.
Most creditors are willing to consider accepting half the money owed or even less. Some creditors will accept one-third of the balance owed.
Perhaps most important is settling the debt helps you avoid bankruptcy.
Keep in mind, if you were to declare bankruptcy, your credit rating would be ruined for 7 to 10 years, making it difficult or even impossible to buy a home, automobile, or other items of considerable value that require a loan.
Furthermore, once the debt settlement arrangement is fulfilled through payments, you won’t spend a single second thinking about collections efforts.
This peace of mind and financial happiness is truly invaluable.
Rectify Your Financial Situation With a Lump Sum Payment or Payment Plan
You can eliminate your past-due debt with a debt settlement through a payment plan or a lump sum payment.
Most debtors opt for a payment plan as they lack the financial capital necessary to pay a large chunk of the balance in a single lump-sum payment.
However, the lump sum payment is more likely to entice the creditor into accepting less money as it ensures money is paid.
Most creditors will consider a payment plan yet there might be a caveat in that the payments are to be made in a short period.
Lean on your debt settlement attorney to negotiate the right payment terms on your behalf and it won’t take long to wipe your financial slate clean, empowering you to start a new chapter of your life that proves that much more enjoyable than those gone by.
Do Not Attempt a DIY Debt Settlement
There is a common misconception that a debtor can reach a settlement with the creditor on his or her own.
This DIY (do it yourself) approach is appealing on the surface yet it is bound to backfire in a big way.
Creditors prey on individuals who do not rely on an attorney for debt settlement discussions.
If you were to attempt to negotiate a payment plan or a lump-sum payment that eliminates your debt for good, you would likely end up with arguably punitive terms that make it difficult for you to achieve financial happiness in the near future.
Ask anyone who has taken such an approach to pay off debt and you will be inundated with negativity and regrets.
Sadly, plenty of people who settle debts on their own make promises that they can’t keep, ultimately sacrificing their financial future and credit score in the process.
The moral of this story is it is in your interest to ask for help.
Obtain guidance from a debt settlement attorney and it won’t be long until you enjoy true financial happiness.
AUTHOR BIO:
Lyle Solomon has extensive legal experience as well as in-depth knowledge and experience in consumer finance and writing. He has been a member of the California State Bar since 2003. He graduated from the University of the Pacific’s McGeorge School of Law in Sacramento, California, in 1998, and currently works for the Oak View Law Group in California as a principal attorney.
Category: Debt
