I want you readers to get a pretty good idea of the value in debt settlement! So first you must understand how long it takes to get out of debt and how much money will be lost through the creditor’s monthly minimum payment scheme.
On average it will take over 30 years to get out of debt by just paying the minimum, and you will end up paying back over four times the original balance in interest alone. Take into consideration these numbers are with moderate interest rates as well, not the default which millions get slammed with.
The numbers with debt settlement are a lot different. You can typically save 40% of what you owe, and will take no longer than three years to get out of debt.
So for example say you have $10,000 in debt. Paying only minimums will take you over three decades and you will end up paying back over $50,000 when it’s all said and done.
With debt settlement the most you will be paying back is around $6,000 and take no more than three years. Right off the top you are saving $4,000 on what you currently owe today. Now if you were to just ride out the credit treadmill for 30 years you would have paid over $50,000. So an overall savings is now $44,000!!
This is true stuff if you do not believe me click here to check out bankrate.coms minimum payment calculator it will open your eyes to how bad your financial situation can be and just how beneficial going through debt settlement can be.
I think a lot of people will turn to debt settlement for help. Especially know, when their income goes down and the credit card interest rates doesn’t seem to get any lower.
By: Magdalena on December 10, 2008
at 7:59 pm
Having just managed to climb out of debt after many years of very hard struggle I can certainly agree with this post. If I had known just how deep I was getting into debt, and just how quickly, I would never have allowed things to go on for so long.
By: William on December 14, 2008
at 12:37 pm
Your words are so true. Just paying the minimum on a couple of small credit cards of mine are taking forever to payoff. Not until I found a way to supplement my income and pay more than the minimum payment could the balance come down.
By: jeffwend on January 9, 2009
at 4:56 am