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Pay Off Debt with Debt Settlement in Michigan

Statistics show that people in Michigan have much lower debt compared to the average American. Debt in Michigan is estimated at just over $36,000 per capita. That’s 24% less than the national average. While that may sound like great news, that lower number is due to a high number of bankruptcies. This high amount of bankruptcies erases or decreases the outstanding debt, which lowers the state average amounts. If you are facing a large amount of debt and want to avoid bankruptcy, seeking debt settlement in Michigan may help. Let’s take a look at what debt settlement is, how it works, and why you may want to consider it.

What is Debt Settlement in Michigan?

Debt settlement aims to reduce the overall debt balances rather than just reducing the interest rate or payments to creditors. For people facing a large amount of debt, this may be the most affordable debt relief option because debts can be settled for about half of what a person owes in some cases. Many people struggle with making the required monthly payment, only paying the interest and very little of the principal amount owed which is sometimes the reason debts get out of control.

What Types of Debt are Covered Under Debt Settlement?

Debt settlement will not take care of all of your debt. Only unsecured debt can be included in debt settlement arrangements. Credit cards, personal loans, medical bills, and collection accounts are among the types of unsecured debt you can attempt to reduce with a debt settlement program. Secured Debt, including mortgages, car loans, IRS tax debts, payday loans, and student loans are not qualified to be included.

How Does Debt Settlement Work?

When you decide that debt settlement may be an option for you to improve your financial health and regain your financial freedom, you can meet with a debt relief company. Debt relief companies have established relationships with many credit card companies and can often negotiate a better settlement on your behalf than if you were to try on your own.

When you begin a debt settlement plan, you’ll begin making payments into a dedicated savings account instead of paying your creditor directly. When the debt settlement company feels as though there is enough money at one time to make a reduced balance offer, they will negotiate. The agreed-upon amount can be paid in full or in monthly installments.

What are the Advantages of Debt Settlement?

The U.S. consumer debt is estimated at more than 13 trillion dollars, with each American household carrying nearly $8,500 in credit card debt. Considering these statistics, many credit card and collection companies would much rather settle a debt for a lower amount than write off more bad debt as uncollectible. Debt settlement can help people pay off debt and avoid bankruptcy. Filing for bankruptcy can significantly damage your credit report as bankruptcy-related accounts can stay on your credit report for up to 7 to 10 years in some cases.

Typically, debt settlement negotiations can be reached for around 50% of the existing balance on many collection accounts. Once the debt is paid off, clients can work to reestablish and acquire new credit.

It’s important to note that the shorter-term debt settlement programs at 1-2 years are often more successful than longer programs at 3-4 years.

Let UmbrellaDEBT Relief Help with Debt Settlement in Michigan

If you are struggling with debt and want to become financially independent, let UmbrellaDEBT Relief help. Our experienced debt negotiators can look at your specific situation and let you know if debt settlement is a viable option for you. Call UmbrellaDEBT Relief today to find out about the programs we offer and how they can help you achieve the financial freedom you deserve.

 

 

Umbrella Debt Relief 1-844-389-6745
200 W. Palmetto Park Road Suite 200 Boca Raton FL 33432