If you’re thinking about signing a new debt settlement, you might want to take some time to think through all the pros and cons before you sign.
It’s important to understand the potential consequences of a settlement before you commit.
Debt settlements aren’t a panacea for all debt problems, and they can help if you’re unsure about the situation and don’t have any other options.
Here are some things to consider before you decide whether a debt payment is right for you: Does it qualify as a hardship?
If you owe money and you need to pay it, it might be OK to have a debt-collection agency collect the debt, but it’s not the same as having a personal bankruptcy.
In a personal-bankruptcy case, you may have a right to collect on your debts in bankruptcy court.
However, you must show that you’ve been paying the debt or are otherwise unable to pay the debts due to a personal injury or other health condition, even if the debt was made during a personal relationship.
So if you have a medical condition or injury that limits your ability to work or attend school, you won’t qualify to have your debt waived under this type of case.
Is there an interest-free or debt-free repayment option?
If the amount of the debt you owe is lower than the amount you owe, there are certain types of debt forgiveness that can qualify as hardship.
These include, for example, a payment plan that allows you to refinance your debt if the interest rate drops.
The terms of your debt forgiveness are set by the debtor.
They may not cover all your debts, but they may help.
You may qualify if: You can pay your debts using a credit card or other alternative payment method.