Nothing stresses people more than the thought of having overwhelming debt. And we’re not talking about a few hundred, but thousands of dollars in credit card debt! Is there really a way out? Although it can be stressful to even think of your own debt, debt settlement offers a glimmer of hope.
In this blog post, we go into the definition of debt settlement and its potential to alleviate your financial burdens. Discover how Mediator Law Group can guide you through the process and provide a path towards debt relief!
Debt Settlement Definition: A Beginners Guide
Debt settlement is a way to resolve debts by agreeing with creditors to pay a reduced amount, typically between 50% to 80% of what you owe, in one payment, also called lump-sum. It’s a helpful option for those struggling financially or unable to make minimum payments.
This process allows individuals to negotiate with creditors, easing the burden of overwhelming debt and providing a clear path to regain financial stability. With debt settlement, borrowers can find relief and move towards a brighter financial future. Is debt settlement a better way of paying off debts than by making minimum monthly payments? 100 percent yes!
The Downside Of Making Minimum Monthly Payments
When talking about credit card debt, one of the worst and most common types of debt, paying it off can seem like an uphill struggle. But by making the minimum monthly payments, that uphill struggle just gets harder and harder – it may seem like the hike never stops! Why is that?
Credit card companies want you to pay the minimum because it keeps you in debt longer and they make more money from interest charges. Imagine you owe $3,000 on a card with an 18% interest rate. If you only pay the minimum of $90 each month, it will take you nearly 14 years to pay it off! During that time, you’ll end up paying around $2,700 in interest alone — almost as much as your original debt!
As you can see, only making the minimum payment can become part of a vicious cycle and you can never end up paying back your full debt! That’s when debt settlement comes in. Once you enter the debt settlement program, we will work on your behalf to lower your overall debt, often resulting in reduced monthly payments. It’s a smart option if you have more debt than you can handle in the next few years or if you’re facing financial challenges. Mediator Law Group helps make the process straightforward, aiming to provide relief and ease your financial burden.
Debt Settlement With MLG
At Mediator Law Group, we are accredited members of the BBB with a positive rating, making us adhere to the latest FTC regulations, offering you peace of mind throughout the debt settlement process.
We will always advocate for you by negotiating directly with creditors, ensuring your needs are prioritized. Our commitment to excellence drives us to settle your accounts effectively. Trust MLG to navigate you through the debt settlement process and bring you financial relief.
