The goal of any debt-relief strategy is ultimately to eliminate debt.
While the circumstances of one’s debt make some options better suited than others, it’s paramount for any plan to offer more advantages than merely a financial resolution.
Living a financially secure existence is only possible when we have a foundation for healthy behavior, which involves a lot more than owing or not owing a balance.
Let’s examine this concept further by discussing one type of debt solution—debt settlement—and the benefits it offers beyond settling a debt.
Reduce Emotional Suffering
Being cash-strapped is one thing. Being cash-strapped and owing money is downright panic-inducing. Living with this feeling every day can sow discontent in even the most stable minds. Debt affects everyone slightly differently. Whether you’re stressed, anxious, depressed, angry or a bit of each, committing to a plan will improve your mental state.
Debt settlement is one type of plan that can be beneficial to a debtor’s mental state in that it allows debtors to unload some of the weight they’ve been carrying. Instead of sitting hopelessly in a difficult economic situation, debtors get peace of mind that a team of professional negotiators is working to lower their debt. People that opt for debt settlement also see their morale improve during the process as they gradually save more money to make a lump-sum offer on their balance.
Teach Sustainable Financial Habits
We’re taught all sorts of stuff in our 12 years of pre-college education, yet personal finance doesn’t usually make the cut over defunct topics like algebra. What’s more, many parents don’t instill any financial wisdom in their kids, either through example or explanation.
Financial institutions are well aware of the average consumer’s savviness. According to financial entrepreneurs like Andrew Housser, loan issuers, especially credit card companies, prey on consumers, knowing that a substantial percentage of their sign-ups will eventually become income via interest and late fees.
Given the lack of foundational knowledge and how easy it is to secure a credit card, it’s no wonder why so many Americans end up in financial trouble. Spending on plastic is tempting. We can have good intentions, but aside from our willpower and card limit, nothing is keeping us from falling into the deep end.
Once high-interest debt takes hold, it becomes a struggle to pay for our life needs and still make progress on our monthly balance. So, what do we do? We pay the minimum, cementing our position in debt. Debtors that undergo debt settlement receive financial education along the way. Since the settlement process takes anywhere from two to four years to resolve, people leave the process with a whole new financial perspective.
Clarify Our Intentions in Life, Which Improves Our Self-Esteem
Money is often associated with negative emotional states and greedy aspirations over happiness. However, getting a handle on how we earn and spend can bring us closer to how we truly desire to live. When we’re living how we intend, we’re filled with joy and satisfaction.
We all buy things we don’t need. We all have habits that aren’t good for our wallets or ourselves. Many of us are so immersed in our consumerist society that we don’t realize how far astray we’ve gone. Debt settlement provides that catalyst and rejuvenated spirit debtors need to decide how money will serve their lives.
The debt settlement process provides time to think and decide how we want to live going forward. Which buying behaviors are influenced by society? Which serve our happiness and fulfillment? It seems like a simple dichotomy, but most of the people with sizeable revolving credit card debt can’t remember half of the things that landed them in debt.
The number one benefit of debt settlement is potentially lowering a balance and getting out of debt. But it’s the side effects like reduced mental strife, more financial savvy, and a clarified life vision that changes someone’s long-term trajectory.