Debt settlement is one of the debt relief options that will get you out of debt fast. It will take between 24 - 48 months to complete a program and after that, you will find yourself free from debt - or at least have a significant amount of that closed.

Everyone going through any form of debt relief would always look towards their debt free goal. It gives them the motivation and encouragement as the debts are paid off one by one. But what happens after you complete the program? What will you do once you finish a successful debt settlement program?

Before anything else, give yourself a pat on the back. You have successfully removed the troublesome debts from your life and your path is clear. However, there are a couple of things that you need to take care of. Just like in the aftermath of the storm, there are pieces of debris that you have to pick up to completely achieve financial freedom.

So here’s the first thing that you should do: get a written proof that your debt is completely paid off. In case a collector suddenly calls you to collect this debt, you have this signed and authenticated document that proves you and the creditor/collector had an agreement and you have fulfilled your part.

You should also check your credit report to make sure the debt had been marked as “settled”. Since you just completed a debt settlement program, your credit score is sure to have be hit quite hard. Rebuilding your credit is another thing that you need to take care of.

Increasing your credit score can be done in various ways. You can start using an active credit card account - but make sure you display discipline in paying off what you owe when the statement comes. The idea is, if you have the cash to pay for something, use your card but keep the money so when the bill arrives, you can pay it in full.

Debt settlement can only accommodate certain debts so if you have mortgages or student loans, you should continue paying them off on time. Since you have gotten rid of your credit card debts through settlement, it is time to shift your complete focus on the rest of your debts.

Another thing that you should do after completing this debt relief program is to grow your emergency fund. Even while paying the remainder of your debts, there is extra money freed by the settlement program. Use this to build up this fund so you don’t have to resort to using your credit card when an emergency strikes. An ideal amount should be your average monthly income multiplied by 6 months or a year. That means you can survive that long despite compromising your current income.

A savings account is also a good idea. This should be different from your emergency fund. This account will hold the money that will allow you to make big purchases without having to use your credit cards. If you want an annual trip, this is where you save up for it. This is one of the best ways to show in your credit report that you are financially reformed now.

Author's Bio: 

Click Here to use our free debt settlement calculator and see how low your monthly payments can be. Learn about the benefits of debt negotiation here: