4 Questions You Need to Ask Yourself before Pursuing Debt Settlement

In our world today, everyone is looking for instant gratification. You borrow money carelessly because you don’t want to save long-term to afford the life you want to live and then you go for a debt settlement program because you want all your debts to disappear suddenly. Before you make a call to that debt settlement company, here are nine questions that newcityfinancial.com encourages you to first ask yourself.

Are you able to repay all your debts in full given more time and patience?

Debt settlement only began in the late 1980’s and early 1990s due to the increase in the number of delinquent borrowers who are not keen on keeping their word. If you think you can be financially disciplined, then you can learn how to be consistent and patient with your payments. Some creditors will trust you after seeing your efforts in paying back and you won’t have to resort to debt settlement.

Is Your Main Goal To Avoid Bankruptcy?

Many people think that debt settlement is a less drastic solution to their problem-bankruptcy. This is actually true, except that if debt settlement will not just be a way to keep you from a bankruptcy due to your swindling financial capability and that you are completely devoid of money then perhaps you should consider going straight to declaring bankruptcy instead of going in circles.

Are you able to function on a budget?

For you to be able to set aside some funds to pay off settlements, it is important for you to be able to work within a tight budget. Unless you are able to emotionally separate yourself from your debt, the debt settlement option might not work for you.

Can you save up and set aside some cash every month?

While it may not be possible to clear off your debts all at once, you should be able to pay back at least a small portion of the debts on a regular basis. Unless you are able to do this, you may find that debt settlement only gets your account on the more negative side and this will adversely affect your credit score.