Debt Settlement with Midwest Regional Funding
When you find yourself burdened with debt, it can be really hard to get out from underneath it. This is usually because the more debt you have, the more interest you’ll have to pay on it and the more interest you need to pay the more debt you have. It’s a self-defeating process and can make the entire situation seem completely overwhelming and hopeless.
If you find yourself in a situation like this, odds are that you’ve already tried all of the traditional routes. You’ve tried to cut your spending, increase your income, and maybe even restructure your debt or open a new credit card. None of these solutions have worked and now you need something more permanent. Something that can hopefully eliminate the debt entirely.
Luckily, we’ve helped quite a few people who were in a very, very similar position to what you’re in now. The method that some of these people choose to take (once they’re done with the common methods) is something called debt settlement.
Debt settlement is a method of renegotiating your current debt so that you can reach an agreement with your lender and pay them one final lump sum. Essentially, you both know that you'll never be able to pay off the debt as it currently stands BUT you agree to pay them as much as you can. For your lender, this is better than you declaring bankruptcy because they'll at least be getting part of what they're owed instead of $0. For you, it's a good solution because you'll finally get a clean start when it comes to your finances.
Let’s take a deeper look at what’s involved with debt settlement.
What is debt settlement?
At first glance, debt settlement might sound a little too good to be true. Essentially, you can just agree to pay back your lender less than you owe them? Why did nobody tell me that was an option! Now I won’t have to deal with people hounding me on the phones trying to get my money.
Well, there are a few reasons why this may not be the most ideal strategy. That’s because there will be a few negative side effects to settling on your debt. We just want to make sure that you fully understand what these side effects are before launching down a debt settlement path. We’ve listed the three main things that will occur when you agree to settle on any outstanding debt that you have.
Expect a lower credit score
Debt settlement is a little bit like dropping a class when you know you’re going to fail. Technically you won’t have an F on your report card but dropping a class late in the semester will still hurt your GPA. Luckily, just like your GPA, you have a lot of time to improve your credit score and build it back up. For the next few years when lenders view your credit history, they will see that you settled your debt and view this as a sign that you’re an untrustworthy borrower.
It may cause some short-term inconvenience but it won’t be the end of the world.
Expect a long process
Once you decide to settle your debt you shouldn’t expect to call your bank tomorrow and be debt-free by lunch. The process can take about 2 years from beginning to end.
Debt settlement isn’t free
You’ll have to pay for a debt settlement company to negotiate on your behalf with your bank. This will cost you money even if the negotiations aren’t successful.
Now that you’ve got a good idea of what debt settlement is let’s take a look at what the process looks like from beginning to end.
What is the debt settlement process?
Debt settlement is actually a super simple process. The entire process from beginning to end looks like this:
Find a company to negotiate with your lender(s) for you.
This company will do most of the dirty work for you. What we mean is that they will handle actually calling the lender and negotiating some type of agreement.
When all the negotiations are complete, you will most likely have to pay a lump sum to the bank. Additionally, you will have to pay the debt settlement company for their work.
Is debt settlement for me?
Just like most things in the financial world, this is a personal question. Anyone who pressures you into making a decision most likely has something to gain from it. What we’d recommend is speaking with an expert (in person or over the phone) and fully discussing your personal situation before making any decisions.
If you are interested in learning more, a member of our team will always be free to speak and answer any additional questions you may have.
How can I get started?
Even if you haven’t made your final decision yet, our team is more than happy to speak with you and help guide you on the correct path. If you end up deciding that debt settlement is the way that you want to go then we will be with you every step of the way!
To get started just click this button to speak with a representative and start down the road to escaping your debt!
Different ways your debt is hurting you
The main thing that we want people to understand is all the different ways that their debt is hurting them. Living life with debt is like running up a hill with a weight vest and wondering why other people are beating you. Once you have a good understanding of how your debt is weighing you down, you will be eager to get rid of it.
Since you have to spend money each month repaying your debt, you have less income to save and invest.
Let’s say you pay $200 per month on debt payments. That’s $2,400 for the entire year! If you didn’t have to pay this debt you’re essentially adding $2,400 to your income.
Not only is it difficult to make the monthly payments on your debt but it also hurts your ability to borrow more money. This could be a problem if you’re looking to buy a house or start a business in the next 5-10 years.
Okay - we’re done being negative! Now it’s time to talk about solutions.
Let’s talk about
Having debt is usually something that most people don’t like to talk about. Granted, it’s probably not something you should bring up on a first date but that doesn’t mean you shouldn’t talk about it! In fact, talking about your debt is a really good step in the right direction. That’s because everyone’s financial situation is different. The best way to make a decision is to speak with a professional about your specific needs.
Have you ever heard the phrase “the best way to make sure you understand a concept is to explain it to others”? By talking with us about your debt you’ll have to vocalize exactly what your personal situation looks like (don’t worry, we don’t judge).
Having lots of debt can easily feel like a hopeless situation and we all know that hopeless situations are the easiest to ignore. However, ignoring it won’t make the problem go away. Instead, understand your debt and let us help you attack it.
We have seen every different situation in the book, trust us. There isn’t much that surprises us anymore. The good news is that we are always able to help point people in the right direction! Even if you just want to get some advice we are happy to help.
We are ready to help.
Call us and let's talk!
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your plans to life.
You work hard, and we know it. Nothing takes the wind out of your sails than a financial set-back or other unexpected problem. When you fall on hard times you don't have to go it alone. Whether you're re-organizing or starting over, Midwest Regional has a compassionate team of experienced debt settlement agents standing by to help.
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Imagine life after paying off your credit cards.