Debt Relief

Debt Settlement – Bankruptcy vs. Debt Negotiation

Debt Settlement handwritten on loan documents.

When dealing with debt, one of your possible solutions to solve your financial predicament is to work with an Arizona debt settlement firm. These firms generally work on your behalf with your creditors to negotiate a lower monthly payment or a longer repayment period. They will usually require a monthly payment, which will go directly to their account and they will disburse it to your creditors at the end of your debt repayment term.

Although this process can be very effective, there are some disadvantages. You may not be able to save money on interest because the creditors will get a portion of your debt eliminated. Furthermore, you will not be able to eliminate the outstanding balance until the full amount of your debts have been settled. This means that you will probably have to continue making payments into your debt settlement program to continuously save money. A better alternative may be to file for bankruptcy and immediately stop paying your creditors.

If you are trying to resolve your current finances but find that you still owe more than the minimum amount of debt allowed by your lender, you may want to consider debt settlement instead of bankruptcy. There are a few reasons why debt settlement may be the better choice. For one thing, when you do so, you usually only have to make one payment rather than paying multiple payments towards all of your accounts. This means that your monthly payment will be significantly lower than if you had opted for bankruptcy, thereby saving money in the long run.

There are several debt settlement companies operating in Arizona, but the best ones are usually associated with the Better Business Bureau or the Arizona Department of Financial Services. Before hiring a debt settlement firm in Arizona, you should ensure that it is accredited with the Better Business Bureau and can prove this certification. You may also want to consult your state attorney general or your local consumer protection agency to see if any complaints have been lodged against the debt relief service you plan to use. These agencies will also be able to provide you with helpful information on debt settlement companies and other debt relief options.

Once you have found a debt settlement company that is accredited with both the Better Business Bureau and your state’s attorney general, you will need to select a reputable Chandler debt relief negotiator to help get you to a more affordable payment plan. Although you will have to pay for the service of the negotiator, this does not have to be a high cost. You will be able to find many debt settlement companies that offer free consultation services to assess your financial distress and to negotiate with your creditors for a lower payoff. The company will even act as your advocate while negotiating with your creditors, allowing you to avoid court proceedings and unwanted publicity. You will simply pay the negotiator a fee for their work.

There are also debt settlement processes that will allow you to pay your creditor at once and in full, rather than having to make multiple payments. This is a great option for those who can afford to make one payment per month, but would prefer to avoid the hassles of having to make multiple payments. In addition, if you have several credit cards and would like to transfer your balances to one card, a debt settlement program may be just the solution that you are looking for. A creditor cannot pursue a debt settlement against you once you have chosen to file for bankruptcy, so you will have to decide if the benefits of this option outweigh the disadvantages.