How to Know If Debt Settlement is Right for You

Updated July 11th, 2022

Struggling with considerable debt can often feel like going to the gym and hiking up a stair climber: no matter how hard you work, there always seems to be more steps to climb. Just like the gym, you have options when it comes to your workout. Managing your debt is no different. Some people sign up for a debt repayment plan while others choose to consolidate their debts into a new loan. Consumers in debt have also opted to negotiate their debts down through a process known as debt settlement. So how do you know if debt settlement is the best choice for you? While there is never a one-size-fits-all solution, debt settlement may be right for you if…

…You Have Significant, Unsecured Debts

As a rule of thumb, the average debt settlement customer has debts totaling around $27,000 (InCharge). Common examples of unsecured debts include auto repossessions, cell phone/utility bills from previous providers, private student loan debt, credit card debts, medical bills, and unsecured personal loans. Secured debts, such as car and mortgage loans, do not qualify for debt settlement.

…You Can’t Repay the Full Amount You Owe

If you’re experiencing difficulty in paying back what you owe, or extenuating circumstances are preventing you from keeping up with full payments, debt settlement may be a good option for you. Once negotiations are complete and you’ve paid your settlement, you are debt-free faster and at a lower cost than if you eliminated your debts through a typical repayment schedule.

…You Don’t Want to Declare Bankruptcy

While bankruptcy is sometimes the best option for an individual, it is a debt solution that can have future implications, including a significant reduction in your credit score. Pursuing debt settlement can help you avoid the consequences of a bankruptcy. Bankruptcy will stay on your credit report for ten years, while debt settlement is only on the report for seven. Additionally, debt settlement doesn’t result in a public record like bankruptcy does, so after the seven years are over, you can breathe even easier knowing your financial hardships are behind you.

…You Want to Repay Your Debt in Less Time

When you’re in debt, it can sometimes be hard to see the light at the end of the tunnel. However, debt settlement can help you get to that light a little bit faster: On average, you will see initial account settlements within 4-6 months of starting a debt settlement program—much less time than you’d typically spend paying back your debts (American Fair Credit Council). By working with a debt settlement company, you’ll be able to achieve the debt-free life you’ve dreamed of without the stress of a long, drawn-out process. 

…You’re Having a Hard Time Juggling Multiple Payments

Utility bills, credit card payments, student loan debt …it’s easy to take on multiple payments and increasingly challenging to manage them all! Debt settlement helps you stay organized by turning numerous payments into one manageable payment: a deposit into a bank account that will be used to settle your remaining debts. Not only does this help you stay in control of your payments, but it also gives you the money to pay off your debt immediately once a settlement has been reached!

Debt Settlement With ACCS

At ACCS, we have certified debt specialists on staff who are here to assist you with your unique debt settlement needs. If you’re not sure if debt settlement is right for you, reach out to one of our representatives today to discuss your options!

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