The top five benefits of debt relief

March 9, 2020 By: Oleg Yavorovskiy

By Oleg Yavorovskiy, Founder and CEO, Guardian Debt Relief
Image credit: Kelly Sikkema

In February 2020, US credit card debt hit $ 930 billion more than ever, along with an increase in defaults, especially for younger borrowers, according to the the Wall Street newspaper. Even though unemployment and inflation have remained low, consumers continue to spend more than ever and are taking on debt at an all time high.

If the debt is due to medical bills, since most bankruptcies are the result of medical bills; credit card; private student loans or personal loans, being in debt has a negative effect on life, costing them much more in the long run with fees, interest and financial charges not to mention the mental anguish it can cause. Debt settlement is the fastest, most cost-effective option for relieving and eliminating debt, especially for today’s struggling consumers who are ready for a new financial start. Here are the top five reasons to consider debt settlement:

1. Debt settlement is simple.

Debt settlement is an extremely simple process: the consumer has a debt crisis, he signs up with a partner, the consumer pays an affordable monthly amount, and the debts are negotiated, settled and eliminated one by one. . Now that the person has signed up for debt relief, all letters and phone calls will be directed to your debt relief partner, and in many cases litigation is now avoided. The money in the escrow account is applied to their debts as they are settled, one by one. Most of today’s consumers work multiple jobs, take care of their families, and even deal with medical issues. Most consumers don’t have the time to get involved in the debt relief process, making it a simple fix for those who don’t have the time but want a better financial future.

2. Debt settlement is faster than other methods.

Other methods of debt reduction could keep the consumer in debt for life. For example, debt consolidation will force the consumer to take out a loan to pay off their existing debt so that they only have one “loan”. But the main balance has not changed. Without debt relief or a major financial windfall, those with debilitating debt can be in debt forever. Debt settlement is a two to three year process, after which the consumer can go out debt free. It is not an overnight process, but it is quick compared to other debt relief options.

3. Debt settlement is profitable.

A reputable debt settlement partner will reduce consumer debts by 25%, 30% and even 40% or more of the original amounts owed including fees. Suppliers will not charge fees until debts are paid. Fees represent the time spent negotiating on behalf of the consumer to settle debts for the lowest possible amounts, which can take weeks or months to get the best deals with creditors who often take a hardline approach. Drawing on substantial experience and long-standing relationships with creditors, attorneys, and collection agencies, a debt relief provider may perform better than a consumer who does not know the terrain and how much it can expect to save.

4. Debt settlement has a track record of success.

Debt settlement has helped thousands of consumers eliminate their debt, but what about other tactics? A large association for debt counseling do not disclose key data on the results of customers in their programs, a red flag for any potential consumer. Debt consolidation, another tactic of taking out a new loan to pay off other loans, with no guarantee of a better interest rate, has no supporting data on its effectiveness. The reality is that most consumers have large debts and, in most cases, will only be able to eliminate their debts if the principal amounts are reduced.

5. Stick to the program and it will work.

Unlike other programs, debt settlement will truly eliminate debt if the consumer sticks to the program. This means making the monthly payments as agreed and communicating with the debt relief provider throughout the program. Most people have an average of 6-8 unsecured accounts – from credit cards and medical bills to personal loans and private student loans – and in just two to three years, a reliable partner in debt relief. will aggressively negotiate these accounts on behalf of the consumer. For the program to work, the consumer must do their part and stick to the program.

In recent years, the Federal Trade Commission has created new rules for the debt relief space to protect consumers. Consumers should be aware of these rules when selecting a debt relief provider in order to find a reputable partner. First, debt relief providers may not charge an upfront fee. Second, debt relief providers must now disclose vital information before enrolling people, including how long it will take to get results as well as the fees they charge. Finally, providers should be honest about their services and not make any false claims. Look for a supplier who follows these guidelines and truly operates in the best interests of the consumer.

The right partner has the ability to help consumers improve their financial lives, so choosing the right one is important. Take a look at reviews and find highly rated companies in places like Better Business Bureau and affiliated with trade associations like American Fair Credit Council. Consumers should always do their due diligence before choosing a partner for debt relief. Select a business with a long history of success in helping people eliminate debt so that they can have a bright financial future.

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