Dealing with large amounts of debt is never easy. It often feels like running a race, but with no end in sight. Not only does this drain our motivation, but it can quickly leave us feeling stressed and anxious about our financial future.
Fortunately, there is a proven solution that can help get you to that debt-free finish line: debt settlement. If you’re unfamiliar with what exactly debt settlement is (and whether or not you qualify), don’t worry. We’ll help shed some light on the subject so you can determine if it’s the best option for your financial situation.
Let’s start with the basic definition:
What is Debt Settlement?
Debt settlement is a debt relief strategy that helps you pay off your debts in a manner that fits your financial situation. When you enroll in a debt settlement program, your current creditors are informed that you are experiencing financial hardship. From there, a representative working on your behalf spends time negotiating with your creditors to settle your debt for less than you owe.
Below are some of the benefits of working with a trusted debt settlement company like ACCS are:
- Get financial counseling and guidance from professionals
- Collaborate on a budget plan that addresses negative spending
- Establish a lower monthly payment that will better fit your current budget
- Have a significant portion of your debt forgiven
- Focus on one, affordable monthly program payment used to settle your debts
- Pay off your debts without compromising your other financial obligations
- Get peace of mind to ease financial worries and be free from harassing creditors
Now that we have a better understanding of what debt settlement is let’s talk about how you would qualify for a program like ACCS offers.
What Do I Need To Qualify for Debt Settlement?
You Have a Significant Amount of Unsecured Debt
You currently have an overwhelming amount—typically amounting to $10k or more—of unsecured debt, which can consist of credit card, personal loan, medical and or utility bills.
You Are Facing Financial Hardship
You’ve recently experienced one or more major life events, such as the loss of a job, divorce, or unforeseen medical expenses, which have resulted in a significant loss of income. When dealing with financial hardship, it can become nearly impossible to keep up with your current expenses, which includes paying back all of your creditors.
You Are Considering Bankruptcy
You’ve exhausted every financial resource and feel completely overwhelmed to the point that you are thinking about declaring bankruptcy.
You Have the Ability to Contribute Financially
One of the most critical factors to qualify for debt settlement is the ability to contribute financially toward your debt. When you enroll in a debt settlement program, you work with a debt specialist to determine how much you are able to financially contribute each month towards paying off your debt based on your current income level. Once your monthly debt payment amount is established, you’ll stop making direct payments to your creditors. Instead, your new monthly program payment is deposited into an FDIC-insured savings account.
As your savings account balance continues to grow, your debt specialist will be able to use those funds to negotiate with creditors on lump-sum settlement agreements. But remember, in order to make those negotiations successful, you’ll need to have a steady stream of funds going into your account.
You Are Ready to Achieve Financial Freedom
The most important qualifying factor is that you are mentally ready to take control of your debt! When you decide to enroll in a debt settlement program, you take the first steps towards achieving financial freedom. Depending on your current financial situation, it’s possible you could reach that freedom as soon as 24 months when enrolled in the ACCS debt relief program as opposed to years longer if paying off debt on your own.
If you’re currently struggling with debt and find that one or more of these cases applies to your financial situation, then debt settlement may be the right choice. Remember—when it comes to overcoming your debt, you don’t have to face it alone. At ACCS, our debt specialists are here to guide you every step of the way.
Reach out today to request your Custom Debt Relief Plan at no cost or obligation. Together, we can help get you to that finish line!