People who are swamped with debt are faced with lots of tough decisions. It’s likely you’ll have to make certain sacrifices in your life in order to get your finances back on track if you find yourself completely buried in debt. When it comes to choosing between wants, this isn’t such a big deal. Having to decide between necessities, however, is an entirely different scenario.
Of course, no one wants to deal with overwhelming debt. But this is unfortunately a reality for so many people in the United States. Once you start accumulating debt, it becomes increasingly difficult to stop as interest payments keep piling up. Today, many people are introduced to having debt early, as over 40 million U.S. adults have student loan debt, with an average amount of $40,000.
Clearly, many people are in a situation where they need to be decisive in terms of how to get their debt under control. Often, this will require working with an organization that specializes in some form of debt relief, such as debt settlement. Here’s a look at the concept of debt settlement, and why Freedom Debt Relief is one of the best choices out there for individuals who need to go this route.
What Is Debt Settlement?
Of all the forms of debt relief, debt settlement is one of the most intense. This means it should probably only be undertaken if other options are unlikely to work for you. For instance, if credit counseling, debt management plans, and debt consolidation are either unlikely to be successful, or have already been attempted, debt settlement is probably the next course of action.
In essence, debt settlement is where you work with a debt relief company to negotiate a lump-sum payment for your outstanding unsecured balances. There are a few things that need to be considered when it comes to debt settlement, just so you’re not getting into something that gets you even more over your head:
- Debt settlement involves stopping your payments to your creditors, and instead sending money to a debt relief company, which holds it in a dedicated account. This money is then used to negotiate a lump-sum payout for less than what you owe. While this can be great when it works, it can also damage your credit in the near term, as you’re not paying your debts.
- Not all lenders are willing to work with debt relief companies, especially for settlement, as it means they’re not going to get paid back in full. Make sure a debt settlement agency can actually help you before you agree to any services.
- There are many people who are unable to afford bankruptcy. Individuals in this situation are some of the most likely to require the assistance of debt settlement. It’s wise to understand the similarities and differences between these two processes before deciding on one or the other.
- You might have to pay taxes on your settled debt. Even though this is drastically better than having to repay the debt, it can still come as a surprise for those who don’t expect it.
Why Freedom Debt Relief Is Better Than Other Debt Settlement Companies
If debt settlement is your best option, it’s essential you work with a company that’s going to help you, not just see you as a source of income. People in dire straights are typically desperate for aid—and predatory actors know this. You need to be aware that not all organizations advertising themselves as debt relief agencies really want to get you out of debt, or are even legitimate.
Parsing through what people say online about an organization is one of the best ways to learn its true colors. Reading Freedom Debt Relief reviews makes it clear that it’s not only focused on profit, but does want to help people beat their debt. Over the course of their existence, Freedom Debt Relief has helped well over half a million people settle nearly $10 billion in debt. Furthermore, people who work with Freedom Debt Relief on average save between 15 and 35 percent from their original owed amount. While not everyone is going to be able to get out of debt this way, it can be a lifeline for those who need it.
For anyone struggling with debt, speaking with a credit counselor is the best first step. If from that it’s determined debt settlement is your best path forward, Freedom Debt Relief is likely the company to call.
