Debt Settlement Counseling - Does Debt Settlement Make Sense? Why is Financial Planning Essential?
Why is financial planning very important? There are numerous instances where things that benefit us in the short term may be harmful for us in the long run.
In the same way, a disciplined approach towards finances today may yield benefits many years from now.
In such a scenario, it is but obvious that you should ask whether debt settlement offers real financial benefits.
Just as gorging on chocolates today may feel very nice but will leave you overweight in a long run, relying on the wrong solution to overcome your financial problems in the short term may leave you with a disastrous consequences in a long run.
Bankruptcy is a perfect example of such a solution.
If it helps you overcome your debt problems and it helps you start with a clean slate.
However, the long term consequences of bankruptcy are so bad that the entire effort seems worthless.
To determine whether settlement makes financial sense, you will have to analyze the benefits as well as the disadvantages.
As far as benefits are concerned, your debt comes down by fifty to seventy percent.
That is definitely a good thing.
Secondly, you get an installment facility to repay the balance.
Thirdly, you avoid bankruptcy and retain all your assets.
Fourthly, you get an opportunity to prove your credibility by repaying the balance amount in full.
This will help you reestablish good relations even before the debt is repaid.
Finally, all the transactions remain private and there is no question of any third party coming to know about the problems that you are facing.
As far as the disadvantages are concerned, your credit score will take a massive hit.
It would not be incorrect to say that the initial impact on credit score will be the same as that of bankruptcy.
However, repairing the credit score and overcoming the problem caused by the negative report will be very easy.
This is because you will automatically be repaying a part of the debt and this will help you overcome whatever problems that may arise because of the settlement remark on your report.
Hence, there is absolutely no doubt that you are perfectly positioned to improve your finances if you make use of debt settlement.
The next time you are ask to compare and choose between settlement and bankruptcy, always keep in mind that settlement offers fantastic benefits that bankruptcy does not and cannot.
In the same way, a disciplined approach towards finances today may yield benefits many years from now.
In such a scenario, it is but obvious that you should ask whether debt settlement offers real financial benefits.
Just as gorging on chocolates today may feel very nice but will leave you overweight in a long run, relying on the wrong solution to overcome your financial problems in the short term may leave you with a disastrous consequences in a long run.
Bankruptcy is a perfect example of such a solution.
If it helps you overcome your debt problems and it helps you start with a clean slate.
However, the long term consequences of bankruptcy are so bad that the entire effort seems worthless.
To determine whether settlement makes financial sense, you will have to analyze the benefits as well as the disadvantages.
As far as benefits are concerned, your debt comes down by fifty to seventy percent.
That is definitely a good thing.
Secondly, you get an installment facility to repay the balance.
Thirdly, you avoid bankruptcy and retain all your assets.
Fourthly, you get an opportunity to prove your credibility by repaying the balance amount in full.
This will help you reestablish good relations even before the debt is repaid.
Finally, all the transactions remain private and there is no question of any third party coming to know about the problems that you are facing.
As far as the disadvantages are concerned, your credit score will take a massive hit.
It would not be incorrect to say that the initial impact on credit score will be the same as that of bankruptcy.
However, repairing the credit score and overcoming the problem caused by the negative report will be very easy.
This is because you will automatically be repaying a part of the debt and this will help you overcome whatever problems that may arise because of the settlement remark on your report.
Hence, there is absolutely no doubt that you are perfectly positioned to improve your finances if you make use of debt settlement.
The next time you are ask to compare and choose between settlement and bankruptcy, always keep in mind that settlement offers fantastic benefits that bankruptcy does not and cannot.
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