Debt Settlement BusinessesWritten by Jill Morrison
According to the U.S. Census Bureau, average debt amounts have nearly doubled in the last decade. Debt is a continually increasing problem in America, with credit card debt as the most common type. In fact, credit card debt now averages at about $8,500 per household and the average family is paying about $1,100 a year in credit card interest charges. Debt settlement businesses provide great solutions for those who are overwhelmed by bad debt problems.
Benefits of Debt Settlement Businesses
Debt settlements are a very aggressive method for eliminating large amounts of debt. Some debt settlement companies will require that clients have at least $2,500 worth of unsecured debt before they can use the settlement services. Those who have more mild cases of debt may want to consider other options. For instance, in mild cases of credit card debt, transferring balances to zero or low balance credit cards can be helpful for avoiding treacherous interest charges.
Debt settlement clients will typically become debt free in a period of 18 to 24 months. This is after debt totals have been negotiated by 40 to 60 percent. Depending on individual situations, debt can sometimes be paid off much sooner. Fees and reductions for debt amounts are often determined according to individual circumstances, such as income and the amount of debts that have been accumulated.
Debt settlement is very beneficial for debt sufferers because it will not ruin credit ratings. Because debt settlement can help to pay off debts quickly, credit scores can be rebuilt quickly as well. Debt settlement can reduce monthly payments by as much as 60 percent and pay-off times by as much as 70 percent. They can also be used to eliminate fees or charges that have been accumulated and to drastically reduce interest charges.