A lot of unexpected events can create a negative impact on our financial standing. Having a lot of debts can result in us being no longer able to pay it off, or even make just the minimum required payment monthly. Having a lot of debts can be stressful. Not being able to pay them can keep you up at night, trying to figure out what else can you do in order to get out of this situation. You may already have two or three jobs, but it still seems like you are not getting ahead in paying off your debts.
Paying only the minimum required by the credit card companies is like digging a hole that you will not be able to get out of. With an interest rate of 19.99% to 29.99%, you will see your debt double every 28 to 42 months, depending on the interest rate you are being charged. How can you ever get out of that?
If you reach a point where bankruptcy is the only option to get out of your debts, think again. There are a lot of debt management companies that can help evaluate your situation and offer you different solutions in order to get rid of your debt and avoid filing for bankruptcy.
Your other options include debt settlement, debt negotiation, debt consolidation, debt forgiveness, and even tax debt relief. Just talk to a debt management company to find out which path to take.
Curadebt is a financial crisis assistance company that was formed in 2000 and has been helping individuals and small businesses for almost 20 years, making it one of the oldest and most experienced in the debt relief industry.
Their talented team of representatives specializes in providing help to both individuals and small businesses who need immediate financial support.
Curadebt’s initial consultation is free. This initial phone call is for the representatives to better understand your financial situation and to provide the right recommendations.
If you are considering the services of a debt settlement company, Curadebt can help you. They offer a debt relief program for unsecured debts such as your credit cards, personal loans and lines of credit, and some student loans. They can also help with your tax debt issues with a team of over 100 years of combined experience in solving tax debt issues with a focus on tax resolutions, audit defense, complex resolutions, offers in compromise, partial payment plans, and currently non-collectible resolutions.
Here is the highlight of Curadebt’s standing within the industry:
- Top 2 by TopConsumerRevies.com
- Over 200 5-star ratings on ShopperApproved.com
- 5-star rating with over 900 reviews on CustomerLobby.com
Although Curadebt has been in business for almost 20 years, it does not operate in all 50 states. Debt Relief Services are not available to residents of CT, DE, GA, KS, MT, ND, OR, PA, PR, SC, VT, WA, WV, and WY. Tax Services are not available in IL, PA, PR, and WY.
People often think of bankruptcy when they hear of debt settlement. Bankruptcy may sometimes be your only option, but if you avail of the debt management services early enough, there could be other options available to you.
Debt settlement is also known as debt negotiation, arbitration or debt forgiveness and is a program that is designed to help you save as much money as possible, as quickly as possible based on your unique financial situation.
In a simplified definition, debt forgiveness or debt relief is when a lender forgives some or all of the debt you owe, at a lower or no interest, with fixed monthly payment, for a fixed term.
Pros & Cons of Debt Settlement
Debt settlement can offer benefits when done right. It will help you pay off your loans faster and make the monthly payments more affordable. Here are some benefits of having a professional do the debt negotiation for you:
- avoid bankruptcy – filing for bankruptcy will be in your record for 10 years and will follow you for the rest of your life
- negotiate with all your creditors on your behalf by providing them with a solid repayment plan
- get relief from overwhelming debts
- pay off your debts in less time
- stop collection calls from creditors
- helps in improving your credit score during and after the debts are settled
As much as we like to reap the benefits of having our debts settled, there are also consequences to this process. Here are some drawbacks of applying for debt settlement:
- creditors may not agree to your settlement offers
- there are a lot of debt settlement companies that are scams, so be careful when choosing who you deal with
- you could end up with more debt if you miss or stop making payments, as creditors can have the repayment contract void thus having all the forgiven credit back with interest
- you will pay debt settlement companies and other third parties involved a service fee
- you will be charged fees even when your whole debt is not settled
- negatively impacts your credit – this will be on your record for 7 years. Although there is no public record for debt settlement, this can still affect your credit score while in the repayment process
Curadebt offers you a glimpse of real settlement letters they have received for their clients throughout the years of being in service. As a disclaimer, these past successes do not guarantee future results. Their goal of saving you money still relies on your ability to stick to their debt settlement program. You can also request for a copy of previous debt settlement letters related to your creditor from your Curadebt credit counselor.
Here is some examples of successful debt negotiation based on the settlement letters found on their website:
- 80% savings for a client by paying back $1,267 of the balance owed of $6,332.61
- 45% savings for a client owing $30,607.86 and only paid back $16,840.00
- 59% saved by a client with $13,710.54 owing and paid back only $5,700.00
These settlement letters are all from the creditors, specifying the initial payment and the subsequent payment required for a defined schedule.
Is debt settlement for you? Do you think it can help you with a repayment program? I suggest you do your diligence in reviewing the debt settlement company that you will work with. This decision will have a huge impact on your finances and should not be taken lightly. I wish you success in being debt-free.