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DEBT SETTLEMENT VERSUS DEBT INVALIDATION

THE GOOD THE BAD AND THE UGLY


THE GOOD

Debt Settlement is a form of debt relief which helps consumers eliminate their unsecured debt. Trained credit counselors, like the ones on staff here at High Level Debt Solutions, will contact your creditors and negotiate to lower the outstanding balance of the debt for about 60% of the original amount owed. Debt settlement is an option we offer here at High Level Debt Solutions to lower your outstanding balance and get your finances in order. 


Invalidation can get rid of your debt for 35-40%.



THE BAD

The cost with all the fees included usually ends up being over 60% and is based on the amount that can be negotiated with the creditors. Additionally you will incur a tax consequence on any money saved. That means if you save 40%, the IRS will consider that amount as income which is subject to taxation. This has the result of having driving up the total cost of the program which can add another 12% depending on your tax bracket.


Invalidation had no tax consequence



The impact on your credit can last from 5-7 years! This means that it will be hard for you to obtain a loan or additional credit cards during this time. Debt invalidation will only impact your credit


Invalidation only impacts your credit for 24 months and has credit restoration in that time that removes any negative remarks from third party creditors. This makes you lendable in 24 months!


     
THE UGLY

Many companies only offer one type of program and often do not inform their clients of different options available. Clients we speak with that are in a settlement are often unaware of the cost difference and are almost always not aware of the tax consequence. Companies are not going to inform you of other options that they do not offer. This would mean sending you to a competitor. Please get informed about all the options available before you make any decisions. Call us now to see what your options are and get a free quote!