If you’re struggling with debt and considering debt settlement, you may have come across Beyond Finance. They offer a program to negotiate with your creditors and settle your debts for less than you owe. Sounds appealing, right? Well, as someone who has analyzed many debt relief options, I want to give you an objective overview of how their process works, what it costs, and the risks involved. Let’s dive in.
The typical process for Beyond Finance’s debt settlement program
1. You enroll your unsecured debts like credit cards, personal loans, and medical bills into their program. They won’t settle secured debts like mortgages or car loans.
2. You stop paying your creditors directly. Instead, you make monthly deposits into a special purpose account that Beyond Finance controls. Those funds will eventually be used to pay settlement offers.
3. As you fall behind on payments, Beyond Finance negotiates with your creditors to try to get them to accept less than the full balance owed to consider the debt settled. This process can take 2-4 years.
4. If a creditor agrees to a settlement, Beyond Finance will present it to you for approval. If you accept, they pay the creditor from your special account and the debt is considered resolved.
5. You continue this process until all debts are settled, while still making your monthly deposits.
Now let’s talk about the costs. Beyond Finance’s fee is typically 15-25% of your enrolled debt balance. So if you enroll $20,000 in debt, their fee could be $3,000-$5,000. This fee is in addition to the actual settlement amounts you pay the creditors. And you usually don’t pay it until each debt is settled.
The risks of taking a Beyond Finance Debt Settlement
First, there’s no guarantee your creditors will actually settle. They may instead escalate collection efforts or even sue you. Your credit score will also tank as you fall months behind on payments. You may still owe taxes on forgiven debt too.
Additionally, if an account doesn’t settle, you’ll have racked up months of late fees, interest, and penalties – potentially owing far more than when you started. And even settlement isn’t cheap. For a $5,000 debt settled for $3,000, you could owe Beyond Finance $1,250 in fees on top of the $3,000 settlement. Meaning you’d pay $4,250 total on a $5,000 balance – only a 15% reduction. And, when it’s time to do your taxes, you will be taxed on the forgiven $2,000 even though $1,250 of that went to Beyond Finance. Sure, you settled for a 40% reduction in your debt, but you might end up only saving 10%. And even that isn’t guaranteed.
I’m not saying debt settlement is never an option to consider. For some people, it might be better than bankruptcy. But you need to be really clear on the costs and risks going in. Make sure to discuss your whole financial situation with an unbiased expert before signing up, and don’t let any company pressure you into their program.
Beyond Finance seems to offer a fairly standard debt settlement service. Just go in with your eyes wide open to the realities of the process. You may be able to save some money, but it won’t be pain-free – financially or emotionally. Carefully weigh it against other debt relief options before making any decisions.
I hope this overview has helped you better understand the realities of debt settlement with Beyond Finance!
