Life After Debt Settlement

Life After Debt Settlement: What To Expect

Perhaps you are considering a debt settlement program or could be in the process of completing one. You might be wondering what life will be like after you finally pay off all your enrolled debts. 

Life after debt settlement, like life in general, will be unique for everyone. Fortunately, when you enroll in a program like ours, your path will be mapped out for you by a Certified Debt Specialist. 

People who complete our program can look forward to benefits that may include more control over their finances, good financial habits, a lower debt-to-income ratio and greater confidence with money. 

Completing Your Debt Settlement Program

Most debt settlement programs take 12 to 48 to complete—our average client completes the program in 21 months and settles an average of $28,000  in unsecured debt. Your time in the program is an opportunity for you to slow down, regroup and establish good habits that will serve you in your life after debt settlement. 

Most people like to focus on the freedom they will have once they complete the program. It’s natural to want to get through the program as fast as possible because the promise of financial freedom waits for you on the other side. However, your program length is designed to set you up for success with a monthly deposit amount that works with your budget. 

The Benefits and Challenges of Completing a Debt Settlement Journey

More Control Over Your Finances

Enrolling in debt settlement can help you take control of your finances right away by making your monthly payments more manageable and budget-friendly. Lower monthly payments alleviate short-term money concerns and can help reduce debt-related stress. Further, you get to watch your money grow in your dedicated account and power your program as each settlement is approved and paid.

  • In a recent survey of our graduated clients, 98% of respondents said that the monthly deposit amount positively impacted their experience.*  

Lower Debt-to-income Ratio

Completing a debt settlement program lowers your debt-to-income ratio. 

The debt-to-income ratio (DTI) is the percentage of your gross monthly income you use to pay off debt. Improving your DTI can make you eligible for better interest rates on mortgages, car loans, or high-reward credit cards. As you pay off your settlements, your DTI will go down.

Did you know that 43% is the highest debt-to-income ratio (DTI) you can have and still get approved for a mortgage? The ideal DTI is between 28% and 36%. 

Good Habits That Will Help You Manage New Debt

Enrolling in a debt relief program allows you to shift your focus. Instead of worrying about paying your bills, you can develop good financial habits that lay a foundation for your future. This includes budgeting, financial planning, building your credit score and the ability to take on new debt.

Debt settlement can have an impact on your credit score. Sometimes, people worry that this will prevent them from taking on new debt. 

In our experience, clients who complete a debt settlement program and focus on good financial habits can recover or improve their credit scores over time and do not have trouble taking on new debt. They also report that their habits are more responsible. 

  • Within three months of graduating, 75.6% of those we surveyed reported a recovered or improved credit score after graduating from the program compared to their score when they enrolled.*
  • On a scale of 1 to 10 (10 being “very responsible”), they rated themselves 8.6/10 after completing debt settlement vs. 5.6/10 before.* 

Increased Confidence And Satisfaction

Completing a program through consistent, manageable monthly deposits will build your confidence. Once you’ve proven to yourself that you can conquer your debt, it helps you establish new goals, like saving and investing, feel within reach. Most people report better financial habits after completing a debt settlement program.

  • 87.7% of clients in our survey said they are very confident in managing and paying off new debt.*

Time and Money To Focus On The Future

Paying off your debt faster and for less money sounds great because it is great. However, the true impact of a successful debt settlement program is what you get to do with your time and money once your debt is resolved. 

When we compared the cost of debt settlement vs. making minimum payments, the savings are staggering. 

  • For example, if you had $25,000 debt, making minimum payments would take more than 30 years and cost $72,262 due to accumulated interest. On the other hand, debt settlement could resolve your debt in around four years and would cost $18,750. What could an extra $53,512 do for your future?

Completing a Debt Settlement Program is An Accomplishment

The many benefits set you up for success in your life after debt settlement. If you are searching for debt relief, consider speaking with a Certified Debt Specialist to determine if our program is right for you.

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