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Debt Settlement Reduces Your Balance – Not Just Your Interest Rate

Debt settlement is really nothing more than good old-fashioned haggling. Through the process of negotiation, debt owners or their debt settlement company arrange to pay back a portion of the debt. The creditor forgives the balance in a transaction called a "settlement."

Unlike debt consolidation or credit counseling where you pay back the full balance on your debts, debt negotiation requires that you pay back only a portion of the balance. This can make a huge difference in how quickly you pay off your balance.

Instead of 5-9 years as with Credit Counseling, with a good Debt Settlement Program, you can settle your debt in 3 years or less, depending on the pace at which you fund the program. Also, you'll save thousands of dollars through Debt Settlement versus other debt reduction options.

Here are some of the major advantages of Debt Settlement:

Better than bankruptcy. Provides an ethical and honorable alternative for those who face bankruptcy.
Privacy. Debt settlement allows you to maintain privacy over your financial affairs (unlike bankruptcy, where everything becomes a matter of public record).
Control. Lets you take charge of the program and control your own destiny (unlike bankruptcy, where the courts decide everything).
Speed. Gets you debt free faster. Typical debt settlement programs have a duration of only 2-3 years versus 5-9 years or more for Debt Consolidation or Credit Counseling.
Lower overall cost. Debt settlement ultimately requires the lowest total payout versus debt consolidation or credit counseling.
Flexibility. Provides the most flexibility of any program in terms of monthly budgeting. If you have to miss a month your only penalty is that the program may take longer to complete. You can also "make it up" down the road by funding over and above your basic level.

Debt settlement is not for everyone. However, for those in the right circumstances, debt settlement can be a powerful path to financial freedom. Follow this link to find out if you qualify for debt settlement.