Lump Sum v. Payment Plan
Debt settlement is a common means of eliminating debt that some people are very familiar with, and others are not. Debt settlement is an alternative to bankruptcy that some consumers and businesses pursue in order to eliminate debt quickly and without resorting to the bankruptcy courts. Debt settlement is a good option if a consumer or business is able to pay off the debt within a certain period of time.
Unlike bankruptcy, debt settlement allows you to work directly with your creditors to reach an agreement on what you will pay in order to satisfy the debt in full. A common question that many individuals and businesses have is whether or not debt settlement can be resolved by paying a lump sum, or agreeing to pay the agreed-upon amount in monthly installment payments.
Paying a Lump Sum Can Help You Eliminate Debt Quickly
When settling debt with a creditor, paying a lump sum amount is always a good idea if at all possible. This may work where a consumer or business has a certain amount of money set aside to satisfy the debt. If there is a substantial amount of debt, it may not be feasible to have money set aside to handle a particular debt. When this is the case, an installment payment plan may be agreed-upon by the creditor, although, this may be very difficult to achieve. Creditors may agree that you can make installment payments so long as you pay the agreed-upon balance within a certain period of time, such as one fiscal year.
What If I Can’t Pay a Lump Sum or Installment Payments?
If you are unable to come up with the money to settle debt by paying a lump sum or installment payments, you may need to consider other debt-elimination tools, as there are many available to both consumers and businesses. Given that there are so many “do it yourself” financial kits offered online, many people are seeking debt relief on their own through credit counseling agencies or enrolling in debt-management programs, among others. Although such options can be helpful, you want to make sure you are making the right choices for your particular financial situation. By speaking with an attorney, you will know whether or not debt settlement is possible, or if another method of debt-elimination may better suit your needs.
Contact the National Debt Settlement Attorneys of Ariano & Associates, PLLC Today
Each client’s financial situation will be unique from the next client. While some individuals and businesses are able to settle debt with one negotiated lump sum payment, others may need to utilize a payment plan in order to eliminate the debt over time, or seek other alternatives. If you are facing debt that has been difficult for you to manage or eliminate, it may be time to consider speaking with a Debt Settlement Attorney. Even if you cannot settle your debt by making a lump sum payment, you may still have the option of settling debt through a payment plan. The Debt Settlement Attorneys of Ariano & Associates, PLLC truly understand that each client’s financial situation will require individualized and thorough legal representation. Our law firm has received a number of positive online reviews. Providing debt-related legal services to individuals and businesses from all across the United States, the Debt Settlement Attorneys of Ariano & Associates, PLLC have the experience and skill you need in a true advocate to stand by your side.