Skip to content
United Settlement
  • Manage Your Debt
    • get-startedGet Started
    • settlementDebt Settlement
    • consolidationDebt Consolidation
    • debt-managmentDebt Management
    • bankruptcyBankruptcy
    • credit-cardCredit Card Debt
    • businessBusiness Debt
    • car-loanAuto Loan Debt
    • student-debtStudent Loan
  • Understand Your Debt
    • credit-cardCredit Card
    • business-2Small Business Debt
    • medicalMedical
    • loansLoans
    • umbrellaCredit Card Relief
    • interest-ratesInterest Rates
    • student-debtStudent Debt
  • Tools & Resources
    • faqFAQs
    • credit-cardCredit Guidance
    • calculatorCalculator
    • call-usContact Us
    • contact-usAbout Us
  • More
    • Debt Settlement
    • Debt Consolidation
    • Reviews
    • FAQs
    • About Us
    • Contact Us
    • Blog
    • Sitemap
    • Debt Relief by State
Professional Debt Relief Programs
Logo
United Settlement
phone icon 888-574-5454
client icon Client Log In
  • More
    • About Us
    • Reviews
    • Contact Us
    • Debt Settlement
    • Debt Consolidation
    • Debt Management
    • Business Debt Relief
    • Credit Card Debt Relief
    • Debt Relief by State
    • FAQs
    • Blog
    • Sitemap
Qualify For Debt Relief
Professional Debt Relief Programs
  • Manage Your Debt
    • get-startedGet Started
    • settlementDebt Settlement
    • consolidationDebt Consolidation
    • debt-managmentDebt Management
    • bankruptcyBankruptcy
    • credit-cardCredit Card Debt
    • businessBusiness Debt
    • car-loanAuto Loan Debt
    • student-debtStudent Loan
  • Understand Your Debt
    • credit-cardCredit Card
    • business-2Small Business Debt
    • medicalMedical
    • loansLoans
    • umbrellaCredit Card Relief
    • interest-ratesInterest Rates
    • student-debtStudent Debt
  • Tools & Resources
    • faqFAQs
    • credit-cardCredit Guidance
    • calculatorCalculator
    • call-usContact Us
    • contact-usAbout Us
  • More
    • Debt Settlement
    • Debt Consolidation
    • Reviews
    • FAQs
    • About Us
    • Contact Us
    • Blog
    • Sitemap
    • Debt Relief by State
United Settlement » Blog » Can You Eliminate Debt Without Paying?

Can You Eliminate Debt Without Paying?

October 14, 2020

In a perfect world, there would be lots of nice things for everyone and hardly any problems anywhere. Anyone old enough to be reading this article certainly knows that the tooth fairy doesn’t exist – but can’t many of us remember a time when we believed it did? Same goes for Santa Claus, right?

Some of us believed for a little while, didn’t we? Some of us may have wished for a pony when we were kids, but never really did end up with one. A few of us may have wanted to grow up to play centerfield for the New York Yankees. We know how that one worked out.

So, to this list of statistically improbable fantasies, we now add this question – can you eliminate debt without paying? However, in this instance, while it may appear far-fetched, there are some ways you can get rid of debt without paying it. Here are some tips to eliminate debt without paying.

Can You Eliminate Debt Without Paying?

Believe it or not, in some instances it actually is possible to get rid of debt without paying. Because there are many different types of debt, this opportunity won’t be available across the board. However, when it comes to student loan debt, there are some ways to get out of debt without paying.

For example, income-driven repayment plans reduce monthly payments down toward 10-20% of income levels before eventually forgiving the remainder of the loan balance – but not until after the borrower has made at least twenty years of monthly payments.

Things are a little better for public service employees at the federal, state and local level who work for a qualifying employer. Following ten years of monthly payments, the balance on Federal Direct student loans is forgiven. Meantime, for those teachers who work five years or more at a low-income elementary or secondary school, there is teacher loan forgiveness of up to $17,500 on Direct Loans and Stafford Loans.

There also are Perkins loan cancellations for eligible teachers, firefighters and police officers who make timely monthly payments for at least five years. Obviously none of these solutions are instantaneous – but they do offer debt relief to those who qualify and are patient.

How To Eliminate Credit Card Debt Without Paying

When we shine the light on how to eliminate credit card debt without paying, things look a bit different. For starters, for those individuals who are contemplating simply not paying their credit card bills, you should know that there are consequences that begin brewing almost immediately after you miss a payment.

Late fees, damage to a credit score and profile, penalty APR after two missed payments, higher finance charges – things can get expensive in a hurry. And that’s before your account winds up getting written off and sold to a collections agency that makes it their business to chase after you for the money you owe. Don’t go down this road, unless you don’t mind inviting extra stress into your life.

Ultimately, each state has a statute of limitations for how much time creditors and collections agencies have to sue you for credit card debt, (an “open-ended account”). This is usually between three and six years – but it can be for as long as ten years.

When a debtor gets sued after deciding not to pay credit card debt and prior to the statute of limitations lapsing, the debtor usually loses. A court ordered judgement follows for the amount owed with interest expense, along with possibly attorney fees for the other side, court costs…in other words, a multi-faceted nightmare. Thankfully, there are better options than flat-out skipping out on your credit card bills.

Debt Settlement

Debt settlement takes place when a debtor successfully negotiates a payoff amount for less than the total balance owed. This is one way to eliminate some debt without paying. The lower amount is agreed to by the creditor or collection agency and is fully documented in writing.

Debt settlement focuses primarily on unsecured debt, such as credit card debt, personal installment loans, medical debt and student loans – and if you are in the situation of having already fallen delinquent on some credit card accounts, it can be an opportune time to pursue debt settlement.

This is because creditors become more likely to settle for less than what is owed when a debtor has already demonstrated an inability to pay.

When accounts move closer to charge-off status, creditors are well aware that they are less likely to recover anything significant from the account again and recognize that a smaller piece of the pie is better than no piece of the pie at all. Contact the debt settlement specialists at United Settlement today to discuss debt settlement and find out whether you can get out of debt with no extra money coming out of your pocket.

Bankruptcy

If you’re looking to get rid of debt without paying, bankruptcy should be looked upon only as a last resort – as it causes significant damage to a credit score and profile.

Bankruptcy is a legal procedure that allows individuals to discharge debts when they have become insurmountably high, thereby providing those deep in debt with the opportunity of a fresh financial start. Bankruptcy is an extreme answer to the question of how to get rid of debt collectors.

This is because debt collectors are prohibited from pursuing collection activity while a bankruptcy case is pending, and cannot collect on a debt after it has been discharged. Furthermore, the emotional relief that results from removing the stress of massive debt is often worth the consequences.

What are the consequences of bankruptcy? Bankruptcy will remain on a credit report for at least seven years from the filing date, impeding an ability to obtain new lines of credit while also potentially harming your reputation to potential employers and landlords who may view your credit report. However, with careful planning and subsequent responsible debt repayment behavior, it is possible to work toward rebuilding a healthy credit score and profile over a period of several years.

Contact United Debt Settlement to learn more about how to eliminate your debt. Give us a call at (888-574-5454) or fill out our online contact form. 

About the Author: Steven Brachman

Steven Brachman is the lead content provider for UnitedSettlement.com. A graduate of the University of Michigan with a B.A. in Economics, Steven spent several years as a registered representative in the securities industry before moving on to equity research and trading. He is also an experienced test-prep professional and admissions consultant to aspiring graduate business school students. In his spare time, Steven enjoys writing, reading, travel, music and fantasy sports.

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)

Related

Search Blog

Are you in debt? we can help

  • Amount
  • Contact

How much do you owe?

Excellent

Based on 356 reviews.
Overall 4.4 out of 5 stars

View All Reviews

Buddy Ewing

December 28

Time and again, I did not know how to handle my debt

Time and again, I did not know how to handle my debt. Even when I paid my credit cards off, a few months later I was back in the same situation. But this year is different. I contacted United Settlement...

Lianne Finnegan

December 27

Business debt relief is what I needed when I contacted the United Settlement crew

Business debt relief is what I needed when I contacted the United Settlement crew. They are committed to helping people like me who requires more help with business debt problems. I had several loans out...

Wren Herrera

December 26

Student loan debt was the reason that I reached out to United Settlement

Student loan debt was the reason that I reached out to United Settlement. I had about 200K plus in student loan debt for my business degree. I recognized that I had to do something when I struggled to make...

Jardel Shah

December 20

There is nothing worse than falling ill and then having to deal with super expensive medical bills

There is nothing worse than falling ill and then having to deal with super expensive medical bills that you really do not have the patience or experience to handle. I was pleased with my experience with...

Iain Holt

December 14

I took out a few personal credit cards to open my boutique

I took out a few personal credit cards to open my boutique. When than money ran out, I went on to take out more loans for my business. However, this quickly turned into a disaster. Today, I now have a mountain...

Avaya Adkins

December 12

Who knew that auto loans were so negative for your credit lines

Who knew that auto loans were so negative for your credit lines? Especially, if they are not paid off right away. As a married couple, we had vowed to keep auto loan debt at bay. But, we found ourselves...

Lucien Rojas

December 07

I didn’t have a ton of debt when I contacted United Settlement

I didn’t have a ton of debt when I contacted United Settlement, but what I wanted from them was some information about how to handle my debt management. I knew that I needed some more information to get...

Madiha Matthams

December 04

Federal student loans were the reason I ended up at United Settlement

Federal student loans were the reason I ended up at United Settlement. I had about $200K to pay back and I was not quite sure where to tackle that debt once I got out of school. But I reached out to that...

Asim Horner

December 03

Everyone knows how horrible student loans are

Everyone knows how horrible student loans are. For me and my family, they had become more than just an annoying monthly bill. They had taken over our lives. That’s why I decided to take action and find...

Frankie Mckee

December 03

I wanted to be more informed about my own personal and business debt

The number one reason I chose to contact United Settlement was I wanted to be more informed about my own personal and business debt. When you have credit card debt, it can be extremely frustrating. Especially...

Justine O'Ryan

November 29

I cannot believe I was finally able to find a company to actually help me pay off my debt

I cannot believe I was finally able to find a company to actually help me pay off my debt! I thought I would forever be chained to debt. But United Settlement offered me multiple solutions for paying off...

Jerry Conley

November 21

What your money can do for you.

The great reviews that you have thanks.

Cathal Brett

November 19

Dealing with high interest auto loan debt was difficult for me and my wife

Dealing with high interest auto loan debt was difficult for me and my wife. We thought we got a good deal, but it actually was a horrible loan. So, we reached out to United Settlement, and they got to work...

Aliesha Ward

November 12

No one really wants to go bankrupt, and neither did my family

No one really wants to go bankrupt, and neither did my family. But fortunately, we did not have to go that route. It was our last resort, but United Settlement helped us figure out a way around bankruptcy...

Filip Rosas

November 08

I had been through about 5 different credit counseling agencies before I found United Settlement

I had been through about 5 different credit counseling agencies before I found United Settlement. I had read through their reviews and made the decision to move forward with them. I also was so impressed...

Susanna Fasenmyer

November 07

Save time and money

Just what I needed, already had a company I was working with and I switched because I was able to same some money. Brian and Alfred were really nice and helpful

Warren Hutchinson

November 07

As a business facing some unwanted financial difficulties

As a business facing some unwanted financial difficulties, we were at a loss for what to do next when our debt started to soar. We took a closer look at our financial situation by contacting United Settlement....

Bobbi O'Quinn

November 02

I had no clue how to create a debt management plan

I had no clue how to create a debt management plan and in fact, I didn't even know what a debt management plan was. Fortunately, I reached out to United Settlement before I had too much debt to tackle....

Dawn Mercer

October 31

Being burdened by debt is one of the biggest struggles we faced as a family

Being burdened by debt is one of the biggest struggles we faced as a family. But these people at United Settlement were very helpful in deciphering the different debts we had and then coming up with a debt...

Forrest Guest

October 29

Student loan debt was my worst enemy before I ran into United Settlement

Student loan debt was my worst enemy before I ran into United Settlement. I really thought I would just have terrible credit for the rest of my life because I will never get out from underneath it. It was...

  • Contact Us
  • 241 West 30th Street
    3rd Floor
    New York, NY 10001
  • (888)-574-5454
  • [email protected]
  • Privacy Policy
  • Terms & Conditions
  • Debt Relief Services
  • Debt Settlement
  • Business Debt Relief
  • Credit Card Help
  • Debt Consolidation
  • Debt Management
  • Student Loan Help
Learn more about debt relief


    • facebook
    • Google Plus
    • Twitter
    • YouTube
    • Instagram
    • Linkedin
    • facebook
    • Tools & Resources
    • Contact Us
    • About Us
    • Blog
    • Debt Calculator
    • Frequently Asked Questions
    • Sitemap
    • Reviews
    • Client Login
    Free Savings Estimate
    Apply Here
    Clients who stay according to debt relief program can realize approximate savings of 50% before fees, or 30% including fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for reasons such as: their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period. We do not assume consumer and/or business debt, provide tax, bankruptcy, accounting, legal or credit repair services/ advice. Our program is not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. If you have any additional questions please contact us.
    Copyright 2020. United Debt Settlement, LLC