As most companies pay-out bonuses to their employees at the end of February, which marks the end of the financial year, if you find yourself falling behind with your debt repayments it would be wise to use your bonus to settle some of your debt.
31 May 2019
If you are in debt, you may have heard the term “debt settlement” being proposed as an option to help you clear your debt quicker and avoid the ongoing interest and fee charges. If you are unfamiliar with the debt settlement process, you may be unsure as to how this works and how it can benefit you on your journey towards becoming debt-free.
Let us walk you through a few of the advantages.
What is debt settlement?
This is a process offered by DebtBusters, who negotiates a settlement discount on the consumer’s behalf when this consumer comes into a lump sum of money and wishes to settle all or part of their outstanding debt. This is also beneficial for the creditor, who is guaranteed a settlement amount on the debt owed.
What are the advantages?
Opting for debt settlement has the following benefits:
- Reduces your debt: This process can help you pay less than the original amount owed. If you are already struggling to afford payments, this could be a financial game changer. The percentage of debt forgiven is often between 15-20 percent, but can be much higher based on circumstances and the amount owed.
- Preserves your credit score: Debt settlement is a far better option than having to declare bankruptcy, especially when it comes to your credit score. Missing payments will damage your score, but bankruptcy will completely obliterate it. Through debt settlement you will be able to repair your credit score sooner.
- Lowers the interest: If the amount owed is reduced, it will result in you paying less on interest and therefore you will save money. What’s important to note is that the interest that’s cut is often based on the amount owed, your payment history, and your financial circumstances.
- Eliminates creditor harassment: If you have ever been in arrears with your debt, you may be familiar with incessant calls and even emails from your creditors – which often occurs at the most inopportune times.
Settling your debt, however, means you are paid up and do not have to answer to creditors any longer. This will be a big weight lifted off your shoulders and will release you from enormous financial stress.
If you come into a lump sum of money and are interested in settling all or part of your accrued debt, contact DebtBusters today on 086 999 0606 or fill in the free call-back form on the DebtBusters website.