Debt Settlement as a Possible Strategy for Reducing Debt

Debt Settlement pic
Debt Settlement
Image: investopedia.com

With more than two decades in the mortgage industry, Harry Hedaya has leveraged his vast experience to make Tampa, Florida, based National Settlement Services a first-rate national, debt-reduction company. Harry Hedaya was also the owner and founder of the Loan Corporation, which, under his management, employed 200 individuals and achieved $18.8 million in annual sales. His achievements were recognized in Entrepreneur magazine.

Debt settlement is a debt-reduction option available to consumers experiencing strong financial hardship. Often, these debts prevent consumers from paying bills and cause them to fall behind in payments. Also known as debt negotiation, this debt management option facilitates lower monthly payments than those of the credit-counseling option.

The typical duration of a debt-settlement program is about three years. During this time, payments are not being made to creditors. As such, this option, as with others, does hurt your credit score, at least until repayment is complete.

Nonetheless, in comparison to other debt-reduction strategies, this most often aids in relieving one of debt sooner and for the least amount of money without filing of bankruptcy.

Consulting with a professional in debt-reduction and management to determine the best option for the situation is advised.