If you’re starting to feel the pinch of your climbing debts, it may be time to consider taking advantage of debt settlement options. This is often the best way to regain control of your finances before creditors take legal action. Learn more about some other ways you could benefit from this step below.

How Can Debt Settlement Help You?

1. Prevent Bankruptcy

While bankruptcy is a debt relief solution that'll allow you to recover financially, it should be reserved as a last resort. Your bankruptcy will remain on your credit report for 10 years and, even after a decade, potential employers, property owners, and lenders will still ask if you've filed for bankruptcy. Seeking a settlement with your creditors will help you avoid that stigma, and the agreement you reach won't show up on your credit report.

2. Get Relief

Creditors often agree to debt settlements that allow debtors to repay less than the total amount owed. This type of agreement can help you avoid a repayment plan that would otherwise take years to complete. With this option, you'll save on what you owe and become debt-free sooner.

3. Avoid Interest Rate Charges

The interest rate you pay on your debts will be based on the amount you owe and the time it takes for you to repay it. When you settle your debts for less and repay that sum sooner, you can avoid much of the interest you would otherwise have to pay. In many cases, interest charges keep people from repaying their debts, so this can be a very helpful advantage.

4. Rebuild Your Credit

Even with the help of an attorney, there's not much you can do to shorten the amount of time a bankruptcy affects your credit profile. However, settling won't carry that stigma, allowing you to qualify for credit rebuilding resources sooner. This means you can see your credit score rise in just a few months, and you may even be able to begin rebuilding your credit score while you're repaying your debts.

If you’re looking for help with debt settlement options, consult Brian R. Cahn & Associates, LLC in Cartersville, GA. Even if your intention is not to file bankruptcy, their legal team can help you explore the best debt relief options for your situation. They’re backed by 25 years of practice and highly rated by both clients and peers, so you can trust that they’ll provide quality legal representation. To schedule a consultation, visit their website or call (770) 382-8900.