How Long Does Debt Settlement Take?

The final cost and impact on your credit score can be vary based on the type of debt relief that you have. The one that can get you out of debt the fastest is not always the best option that there is.

When you are working to get out of debt, one of the goals that you have should be to balance any priorities with remembering:

  • How long it will take to get yourself out of debt
  • How much it will cost you in penalties, fees and interest
  • Your credit score once you are free from debt

When you consider these 3 points, you can see how much time that you spend in debt settlement is not as important if you save money and are able to borrow in the future.

Debt Solutions to Get You Out of Debt Faster

Debt settlement programs are not the fastest way to get you out of debt. The fastest is bankruptcy, which allows a person to be debt free in 9 months. Yet, if you look deeper into that, getting out of debt in 9 months is not the best way. Bankruptcy will make you surrender assets like cars, personal property, and even your home. You may get out of debt faster, but you will be left with exemptions that your area allows. You will also have to start all over to rebuild your life.

Debt settlement may take much longer than 9 months, but if you are able to fulfil the terms of your agreement, you don’t have to lose any assets which leaves you ahead of someone who filed for bankruptcy.

How Long Does It Take for Debt Settlement?

There isn’t a set time for debt settlement that works for every person. One the average people get out of debt within a year to three years, but the amount of debt that you have and how much you can pay every month will be how to determine just how long it takes you to get out of debt.

Other Programs Compared to Debt Settlement

One of the best ways to find out if debt settlement is best for you or another option like debt consolidation or credit counseling would be best and then compare the total cost of each program.

For instance, let’s say a woman who is $30,000 in debt and is paying 20% interest. If the debt is paid over the next 10 years, the woman will pay almost $70,000 with a consolidation loan, if the minimum payment is met every month. That means that almost $40,000 will be paid in interest.

The woman then wants to save money and she decides to go with debt consolidation loan which lowers the interested to 15% over the next 3 years. At the end of this loan, she would have spent only $37,500 to pay off the debt, which includes the interest payment of $7,500.

If the same person decides to go through with credit counseling and the interest can be reduced to 4% and is paid over the next 2 years. Then the total will be $31,300. The interest being $1,300. Although, the person is still going to be paying the $30,000 just as she would in debt consolidation.

However, if that woman can go through debt settlement and the debt settlement company settles the debt for just $15,000 over the next 3 years, but there is not a reduction in the interest rate. The original rate was 20% and so she would be paying a total of $20,000 to pay the debt in full, which includes $5,000 in interest. However, if the person makes the payment in a single lump sum, she would only pay the $15,000.

Total savings are more considerable under debt settlement than other options. Take a look for yourself in the chart below:

Debt Program

Original Principal Amount

Interest Rate

Term Length in Years

Total Interest

Total Paid on Loan

% saved from original Terms

Debt Settlement with Interest







Debt Settlement without Interest







Debt Counseling







Debt Consolidation







Original Loan







Is Debt Settlement Right for You?

It has been shown that a debt settlement program can save you the most money, even if it takes longer for you to finish than other relief options out there, but that doesn’t always mean that it is the best option. To find out what is best for you, fill out the debt relief form and get a free custom consultation.

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