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How Long Does a Debt Reduction Negotiation Process Take to Be Debt Free?

That depends…Your options for debt reduction varies depending on your situation. If you have significant equity in your home, you may be able to refinance and pay off your credit card debts avoiding the debt reduction negotiation process altogether. However, that is not really true debt reduction since you are just transfering the debt balance from one source to another (your home mortgage). Regardless, it is the preferred method due to the fact that your credit score will remain basically unharmed and you will be trading high interest rate debt with low interest rate debt, thereby lowering your overall monthly payments.

Debt management and debt settlement programs both can take years to complete. Why? Because it is a process by which you go on a scheduled plan to reduce your debt little by little. The speed at which you become debt free is based 100% on your ability to generate income. Assuming your income is relatively fixed as it is for most people, these companies will customize a payment plan for you that you can afford.

Debt reduction using a negotiation company will typically last 18-36 month while a debt management company program can last from 12 months to 5 years. It all depends on you, the amount of debt you have, who your creditors are, and your ability to stick with the payment plans they set up for you.