Debt relief will help you to get out of debt but at a cost that is somewhat less than the amount that you owe but it may seem costly later. The process of debt settlement Is – you are required to stop making payment to your creditor for a particular period of time it, may be six months or more and once you account will be overdue then you creditors will ask you to pay the sum of money and at last will you can offer debt settlement in that you are required to pay small sum of money that is less than the owed amount and if creditor will accept you offer then it will be the best option but if declined then you may face some legal action from collection agencies.
Pros and cons of debt relief offered
Each and everything has some pros and cons similarly in debt in relief-
The pros of debt relief are more than it cons: –
- Help you to lower the amount of debt
most of the time debtor has not that much amount of money to pay for such condition it is best option.
- Very helpful in avoiding bankruptcy
become bankrupt may ruin your reputation and in that case you are not required to pay any of the money for debt but with the help of such offer you can pay your debt without ruining your image.
- Get rid of all creditor and collector
if all your debts clear then no one going to ask you to pay any penny of the money.
- It is possible that your creditor will not agree to your offer to negotiate
- May be your debt will be increased
- Impact your credit negatively
Hence choosing debt relief is a good option if you not have enough amount of money to pay the debt.