Do I Qualify for Debt Settlement?

While you are taking some moments to look at debt relief options, there are various factors that need to be kept in mind. Ask yourself:

  • How much of a negative effect on my credit score will I deal with to get out of debt?
  • How much am I willing to pay for program fees?
  • How long do I plan to be in a debt relief program until the debt is paid in full?

Asking these questions can go a long way when it comes to choosing the best debt solution for you.

The most important question that you should be asking is if you will meet the qualifications that are needed for certain debt relief options. Let’s start with seeing if you qualify for debt settlement.

Understanding Debt Settlement

Debt settlement is one of several relief options. Others are consumer proposal, credit counseling, and debt consolidation. A debt settlement program was made for those who are in a lot of debt but are not a good fit for credit counseling or debt consolidation, but are not in enough of a situation to declare bankruptcy or consumer proposal. Debt settlement is best for those who have around $10,000 in unsecured debt.

Factors that Qualify for Debt Settlement

Just like you may expect, your debt level isn’t the only thing that you have to factor in when assessing if you are a good fit for debt settlement. Other factors are:

Income: If you can make payments on existing debts can be important. If you don’t make enough to meet the minimum monthly payment on a single debt, then you may need to file for bankruptcy. However, each situation is different, and you may qualify even if you can’t make the minimum payments now.

Specific Creditors: The creditors that you owe money to can even affect your situation. If your debt settlement provider has worked on your behalf with the institution before, then the odds are they will negotiate successfully.

Existing Savings: This is because many creditors will settle for a lump sum, and the amount that you have in liquid assets or savings can help to determine if this is the best option for you. If you have thousands in an account that is a retirement fund, then debt settlement may be a great option.

Only One Way To Know

There is only a single way that you can find out if you qualify for debt settlement and that is to contact a professional and get a consultation. For more information, fill out the form below.

get your free savings Estimate