Debt Reduction: Is It Possible?

By: Michael Millington

When dealing with massive amounts of debt, it is not uncommon to wonder how to pay off everything you owe. It might seem as though there is no way to garner any relief from your financial obligations. However, there is a way to achieve debt reduction and help save you some money on your unsecured debt. This can be achieved through the service of debt settlement, a form of debt relief that can actually reduce the amount of money you owe in order to settle your debt with your creditor.

 

How Can You Achieve Debt Reduction?

 

Debt reduction can only be achieved through debt settlement. It is through debt settlement that your debts have the ability to be lessened with negotiation. This can happen one of two ways: you can settle your debts yourself or you can utilize a debt settlement company to negotiate for you. While both are viable ways to settle your debt, they also have varying levels of effectiveness. Take into account the level of success you can achieve with each method of debt settlement.

Trying to settle debt on your own is difficult, but not impossible. Creditors want to know that they will receive as much money as they can get from those who owe them. If there is adequate reason for a creditor to believe they won’t get the total amount that is owed, they will be more inclined to reach a settlement with you.  Remember: the main goal of a creditor is to get paid. If they can avoid costly methods of debt collection to settle a debt, it works out for them as well.

The main difference between achieving debt reduction yourself and using a debt settlement company is the method of making payments. Regardless of the method of debt reduction you use, creditors are going to want a full payment to settle the debt in question. If you use a debt settlement company, you make monthly payments to the company that are then used to pay off you creditor once it reaches a certain amount. This way, you can gradually increase your settlement payment without having to pay it all at once.

 

Are There Detriments to Debt Reduction?

 

Having the ability to reduce your debt before you pay it sounds like a wonderful thing. There are some things that you might need to look out for if you decide to go down this path. One universal issue is the debt amount that gets settled. In certain instances, you might have to claim the amount that you did not pay from the original debt on your taxes. The leftover amount can get counted as income, so be sure to check to see if you will need to include it on your upcoming taxes.

Aside from your taxes, there are other detriments you may run into during your debt reduction process. If you decide to use a debt settlement company you might run into issues with debt collectors. While you make deposits towards your debt settlement program, debt collectors might try to collect on the amount you owe. If this happens, know that you have rights to protect yourself from such actions (especially if they are illegal). The Fair Debt Collection Practices Act (FDCPA) helps to enforce rules against unfair and illegal actions that debt collectors may take.

Staying dedicated to the process of debt reduction can also pose a problem. For many, the process of debt settlement feels just like paying another bill. The best way to circumvent that thought is to remember that you’ll end up paying less than what you owe in the end. Keeping up with your monthly payments in a debt settlement program is imperative. The worst thing that can happen is to enroll in a settlement program and not make payments. This is a detriment that you can overcome with some dedication and a clear view of the goal you want to achieve through debt reduction: debt elimination.

 

Debt Reduction Can Help You

 

While many debt relief options exist that can help you to eliminate your debt, not all are readily accessible to you. Some require you to have great credit or the ability to make a large payment immediately. Without the proper resources available, debt elimination may seem impossible (let alone debt reduction). However, you can achieve your goals of debt elimination through debt reduction.

Guardian Debt Relief offers the ability to have your unsecured debts reduced through debt settlement. Our debt relief specialists can help you to further understand the debt settlement process and can even help get you started. With an obligation-free conversation with our experts guaranteed, you have nothing to lose and everything to gain. Take the first step towards debt reduction and contact Guardian Debt Relief today.