Debt settlement is used when you have unsecured loans with no collateral (like credit card debt), and the only alternative is not paying the monthly installments at all. This means that mortgages and car loans cannot be included in your debt settlement negotiations, as these loans have collateral (your home or car) that your creditor can take to settle your debt.
If you’d like to utilize a debt settlement solution, you’d want to connect with a debt settlement professional to help you negotiate the settlement terms with your creditors. Usually, this means your debt will be reduced to a satisfactory amount for both you and your creditors. You can also opt to enter these negotiations by yourself. However, a professional with vast experience in debt settlement will be more equipped to negotiate better terms for you.
While debt settlement negatively affects your credit score, you’ll be able to rebuild it over time with financial discipline. However, it still has a much lower negative effect than declaring bankruptcy, which should be your last resort.
If you decide to pursue debt settlement, we can help you connect with an experienced and reputable debt settlement professional.
