There are many persons who are of the opinion that it is incorrect to earn a profit out of a debt relief transaction. Let me make it very clear at the very beginning that there is no such thing as a right or wrong in the world of finances. If the transaction is profitable, you should go ahead with the same.
If the transaction is not profitable, you should avoid the same. It is best to keep morality away from this entire process. You may be a very moral person but the fact that your unsecured lender has absolutely no qualms for moral issues and extracting maximum profits from you means that you too should follow the same approach.
If you make use of the debt settlement transactions, you can actually get money in your pocket by the time the deal ends. How? Well, you all know that settlement deal involves getting a discount from the lender and repaying the balance amount in a time bound manner.
Now, do you think you are going to face financial problems continuously for the next eighteen months? Soon or later, you are going to find a job or your spouse is going to get his or her job back. You may end up repaying a particular debt and that will leave extra cash in your hand.
Or, you may bring a secured debt down to zero and this will put you in a position where you can dispose an asset of very quickly. The point I am making here is that chances of improving your income or the cash in hand is very high when you look eighteen months into the future.
This means that the debt settlement transaction will stop being a debt relief option and quickly become an income alert option the moment the change occurs. The moment your salary doubles or the monthly income of your family doubles, you will discover that the half repayment that you are making to your credit card issuer is leaving a lot of cash in your hands.
You just have to make use of this income to either repay your debt faster or to invest the same. You can plan your finances in such a manner that eighty months investment yields the same amount of money that you have been forced to pay to your credit card issuer.
You would be using the settlement deal to earn an income which in turn would be used to finance the credit card repayment. If you take a look at your monthly finances, you will discover that the net effect is zero.
In short, you would have reduced your credit card debt down to zero and you would still have money invested that would have yielded in return on a regular basis. This is what debt settlement can do to your finances.