3 Reasons to Choose Debt Settlement in Bedford Texas

Several debt relief programs can turn your financial situation around. One such option is settling your debt. Here’s a look at some of the benefits you can expect when using this financial strategy.

It Lowers Your Debts

Enrolling in a program for debt settlement in Bedford reduces your debt. You can get the lender or company to accept a payment that’s much less than what you owe. That’s a lot of cost savings if you combine the principal savings plus the future interest, you will not have to pay once you settle the debt. If paying back the total amount of the debt is nearly impossible, a debt settlement option might be the best course of action. With a debt settlement program, you can put an end to those threatening calls from your creditor once an agreement is in place with your creditor. However, the creditors may continue their collection tactics until an agreement is in place. In Texas, you can enforce the Texas Finance Code which prevents illegal harassment from both first-party creditors and third-party debt collectors.

Pay Your Debt Faster

Debt settlement allows you to pay off the debt in a shorter time frame. Debt settlement programs are usually completed in about 24 to 48 months. That helps you resolve your debt faster. However, keep in mind that you must keep up with your monthly payment. Even if you aren’t sending them to the lender, you’re collecting the funds so you can use them to settle your debt, so don’t dip into those funds. The quicker the balance grows, the sooner you can reach a settlement with your creditors.

Prevent Bankruptcy

The most drastic way to deal with debt problems is to file for bankruptcy. The move compromises your finances and credit history the most. It’s regarded by most people as the last resort. By talking to a credit counseling service, though, you’ll learn other forms of debt relief in Bedford, including debt settlement. By giving those options a try, you can prevent possibly bankruptcy. Filing for a Chapter 13 bankruptcy leaves a black mark on your record for seven years, while filing for a Chapter 7 bankruptcy will mean a 10-year stain on your record. If they sound less than ideal, consider other ways to deal with your debts. Keep in mind that a credit counseling debt management program reduces interest, not the debt balances. Debt settlement negotiates the debt balance and Chapter 7 is a creditor repayment plan using the federal court system. Sometimes Chapter 13 is more expensive than debt settlement, and sometimes it is less expensive. You will need to speak to a Texas Bankruptcy attorney if you are considering Bankruptcy as an option.