You may have thought that you needed to pursue debt settlement, but on further investigation debt settlement was not right for you. There are several alternatives which are worth looking at.
Debt settlement is for those whose debts are with collection agencies and no longer with the original creditors. If your debts are still with the original creditors, even if you are falling behind, you will better benefit from an alternative to debt settlement.
The first alternative is to pay off your debt on your own. This requires discipline as you must pay off significantly more than the minimum payment in order to make headway on your debt. If you have only a small amount of debt or if it's at a low interest rate this is probably the right route for you.
If you have recently suffered a hardship like losing a job or incurring high amounts of medical bills, you might be able to convince your creditor to let you pay smaller amounts for a six month period or so. In order for them to agree to this, you'll have to prove the hardship as well as your ability to resume normal payments after the six month time period. You will have to talk to each of your individual creditors about this, and they will all have different rules on it.
A third option that is applicable to more situations is a debt management plan with a credit counselor. This type of plan will allow you to receive lower interest rates and fees so that your monthly payments are more productive. Creditors vary in the amount they are willing to reduce your interest rate, but most credit cards qualify for at least some benefit. Most clients on debt management plans see that they can pay off their debts in full in three to five years.
Regardless of what option you are considering, talking to a credit counselor can give you good information on these alternatives to debt settlement to help you make a more informed decision.
