As we come to the end of the year, it’s a good time to reevaluate finances. Dealing with debt is no fun and people tend to put it off if they can. Sometimes that works, but most of the time it doesn’t. In the meantime, you might be losing out in ways you didn’t think about. So here are 3 reasons to consider settling and resolving your debt problem in 2017.
1. The Future Looks Better
Even if you’re struggling financially at the moment, you probably believe things will improve in the future. You might even be working on something that could pay off big in the future. You might be thinking, maybe I’ll wait till things improve and then deal with the debt. But this is usually a bad idea for two reasons.
First, what if they don’t improve? The creditor is just going to keep tacking on interest and penalties and you may have a bigger problem in the future.
Second, and perhaps more importantly, dealing with your debt while you’re struggling is often the best timing. For many creditors, your ability to pay, income level, asset level, etc., is a factor in their decision of how much to settle for. So if you wait until you’re back to making six figures and just bought a boat, it could actually make your settlement amount much higher.
2. Time Value of Money
It’s always important to save for retirement. But it’s hard to do that if you’re constantly paying high interest credit cards and other debts, just kicking the can down the road. Dealing with your debt now, whether it’s by paying it off, settling, or even filing bankruptcy can pave the way for healthier savings. Each year that you allow to go by without adequately saving for retirement can have an exponentially negative effect on your finances down the road.
3. Peace of Mind
Debt is like the proverbial elephant in the room. It’s enormous, takes up a lot of space in your life and seems impossible to deal with. How many years do you want to live like that? Resolving your debt can bring peace of mind and reduce stress.
But the first step is acknowledging the elephant in the room. The second step is developing a plan to tackle it. We can help with step 2. Call for a free consultation.