The Cost of Debt Settlement Program
The expenses at stake are one of the primary anxiety for someone who’s attempting to qualify for any debt relief options. This is because most people who consider getting a debt relief program are those who are struggling with their debt payments; thus, adding another obligation in their plate may just add up to their loads. This is even though each program aims to get them out of debt.
Furthermore, before getting into the program, certain measures allow you to look into the possible cost of each debt relief program such as debt settlement. In terms of outcome, though debt settlement has more of its advantages, you must still consider that all debt relief options bear consequences. So, regardless if you’re seeking to qualify for debt consolidation, or any debt relief approach such as consumer proposals and the others, certain costs are at stake.
Moreover, some of the debt settlement programs are less expensive than others. As compared to consumer proposal and bankruptcy, it is basically less costly along the course. This is one of the reasons why people favor a debt settlement in dealing with what they owe from their creditors.
What are the Cost of Enrolling and NOT enrolling in a Debt Settlement Program?
To get the estimated cost of a debt settlement. It is best to weigh in the situation on how much will it cost you when enrolling into the debt settlement program, and the cost for not enrolling. This way you can get a clear view of what will transpire if you consider a debt settlement.
The Cost of Enrolling a Debt Settlement Program
Getting yourself to deal with your piles of debt each month is emotionally disturbing. Your case will get worsed as you deal with debt collectors calls to collect debts. The fact is if you will not act on your situation right away and settle your debt through a debt settlement program, you might not have any choice later on but to file for a consumer proposal. In case you do so, there’s a big possibility that your creditors may not even accept your proposal, which leaves you with the last option to file for bankruptcy.
Late Fees and Interest
as you fall behind your debt payments, your late fees and interest charges will stack up, making it hard for you to catch up. This would leave you with interests gaining in interest. In this case, you are increasing your debt and will end up accumulating bigger debt to pay when choosing debt settlement.
High-Interest Rates on New Debt
Late fees and high outstanding debt sums give you a lower credit prospect for potential creditors. Ditching your obligation without any settlement will make you pay a bounty on your interest in your new loans.
The Cost of NOT Enrolling a Debt Settlement Program
For you to enroll in a debt settlement program, you will normally acquire certain fees. These charges are associated with how much debt you need to settle, your province or territory, and the time frame you needed to be in the program.
Basically, when you compare the cost that you’ll be obliged in credit counseling, you can save money in debt settlement since it aims to lower both your debt principal and interest rates. Unlike in consumer proposal, wherein your principal remains the same and only your interest will be reduced. This will explain the fact that you will have to compensate more in a debt settlement program since you’ll be paying less than what you owe. However, in some cases, debt settlement may often get you lesser fees than in reducing your interest in credit counselling. Also, it is much cheaper than the bankruptcy will cost you.
Credit Score Issues
With debt settlement, you will not worry too much about its effect on your credit rating. A debt settlement company that exercises expertise in negotiating with your creditors can compel your creditors to write off a certain portion of your debt while ensuring the lesser impact on your credit rating
Discover More About Debt Solutions
If you want to be certain which debt relief program suits you, it is ideal to get advice from the expert. It is wise to understand each debt relief option and your situation before you decide. To find out more, simply fill out the debt relief form on this page.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.