Has your monthly spending continued to outgrow your earnings? Have you suffered an medical emergency or lost your job? This is very typical of our economics in today’s reality and if this is your situation then a debt settlement company may be the solution.

Debt settlement is a method by which a third party negotiates with your lenders to reduce your unsecured credit card debt. With that said – it’s important for the consumer to have an understanding of their options and various alternative that may solve their finances.

The alternatives available to the consumer are: debt consolidation, debt counseling, equity loan on home, bankruptcy or debt settlement.

So a quick review of these alternatives:

·         Home equity loan – This allows the consumer to borrow against their personal residence.  There may or may not be enough equity in their residence to qualify for this loan.

·         Bankruptcy – This is a major step for the consumer.  The consumer needs to discuss with their attorney.

·         Debt consolidation – This approach allows the consumer to pick and choose which debts to consolidation into a term loan with a lender.  A term loan is normally secured by collateral from your lender and can try up to 5 years to repay.

·         Debt counseling – The consumer meets with a counselor to determine an set budget to pay off your debt to the lenders. The consumer is still required to pay off their entire balances.

·         Debt settlement – The debt settlement company establishes a monthly repayment plan. After at least half of your lowest outstanding unsecured credit card balance is achieved. The third party will negotiate with your lender to reduce your debt.  This negotiation can be from 40 to 50% of the balance. This process can take between 12 to 48 months depending upon your debt burden.

When compared against the other alternatives it appears to be a better method in changing your financial situation.  If is important for the consumer to understand all the step involved in a debt settlement.  Call today to speak with a representative!

As the new school year begins it’s time for the consumer’s to take hold of their unsecured debt.  This debt will only grow over the next several months as the holidays approach and will continue to add pressure to the family situation.

So how does the consumer stop this pressure and get out of debt?  One of the ways to put the brakes on this situation is to consider a debt settlement program. A debt settlement program is designed to reduce the overall unsecured debt of the consumer.

The debt settlement program will have some possible drawbacks for the consumer which need to be considered.  The consumer’s credit report will take a hit in the beginning of this process however the consumer’s credit may already been hurt by:

·         Too high of outstanding balances

·         Late Payments

·         Too much credit

·         Tax liens, judgment’s, repossessions, etc

The program establishes a “trust account” into which monthly payments are make until there is enough money to begin to negotiate with the lender. In most cases, the debt settlement company can reduce your debt up to 50% or more. This may be a better  alternative than to file bankruptcy or doing nothing about the situation. If you are considering bankruptcy please consult with an attorney before taking that step or at least call a debt settlement company to understand your option.

Other consideration that the unpaid balance maybe considered income and is therefore taxable under your normal tax rate.

If the consumer does consider the debt settlement option.  They then had started the journey of getting out of debt.  One of the positives to possible come out of this unfortunate situation is the consumer is now motivated to learn how to handle their expenses and money in the future. 

There is no easy fix to large amounts of unsecured debt. But the consumer needs to face the situation head-on a deal with it in a responsible manner.  So call Debt Negotiation Zone  today to discuss the complete ins and outs of the program.  Give you and your family a new peace of mind and start anew.

Getting out of debt is something that as a consumer needs to be done for you and your family. This can be accomplished through a variety of plans and programs. However, every consumer needs to explore their options before selecting a plan or program.  Here are some of your options……

• Debt Consolidation
• Bankruptcy either Chapter 7 or 11
• Debt Settlement
• Do nothing approach

Before selecting a plan, the consumer needs to understand how and why they are in this current financial situation. This debt was caused by:

• Unable to payoff full balances on credit cards
• Making minimum monthly payments , charging more expenses which increased limits along with the growing interest payments
• Used credit cards to purchase goods and services
• Take on more credit cards to payoff old credit cards

A debt settlement program is a better alternative to the above referenced programs.  The reason for using a debt settlement company is they will negotiate on your behalf.  They will deal with the credit card companies and work to achieve a settlement of up to half of your current balance.  This is not any easy program for the consumer. It requires financial discipline and an understanding of the program.  It may take anywhere from 12 to 48 months to be complete free of the consumer debt burden under a structured debt settlement program.

Here are a few items which you will need to address when entering into a debt settlement program: 1) be aware that your credit score will take a hit but it probably already is low due to high balances, minimum monthly payments or late payments, 2) as debt is be negotiated your credit score can begin to rise, and 3) there maybe tax ramifications upon final negotiations with the credit card company.

Debt settlement companies work because creditors often except settlements because if they don’t the consumer most likely will file for bankruptcy.  In most cases, this eliminates the any funds to the unsecured creditors.

Contact us today to discuss a debt settlement program that is right for you and your family.

“Everyday do something that will inch you closer to a better tomorrow”..Doug Freibaugh

The consumer needs to explore all their options when considering a way to get out from underneath their unsecured debt.

There are several ways to approach this financial situation which has been created.  Some of the options are:

• Bankruptcy – Chapter 7 and 13
• Debt Consulting
• Debt Consolidation
• Debt Settlement

The above options may or may not work for a consumer’s individual needs.  We will explore process for each of the above options.

1.                  Bankruptcy – This is a step you need to discuss with an attorney.  Filing either Chapter 7 or 13 is a big step and involves more than just your unsecured debt.

2.                  Debt Consulting – You entry into a debt consulting program and they design a budget for you and your family.  They may or may not contact your creditors and inform them you have entered into a program. Using this program the debts are still owed and continue to grow.

3.                  Debt Consolidation – The consumer goes to their bank to request a loan to consulate their unsecured debt.  The bank may require collateral like a 2^nd on your home. However you might not have enough equity in your home to qualify for this loan.

4.                  Debt Settlement – This program allows you to start saving money toward paying off your debt in some cases less than 50% that the current outstanding balances.  This process can take anywhere from 12 to 48 months, but at the end of the program you’re debt free and your credit standing will be restored.

Debt settlement maybe the best approach for you and your family. Compared to the other options, you need to discuss a debt settlement program with one of our representatives. So take that first step today for a better tomorrow.

Do you have more than $5,000 in debt on more than 3 credit cards? One of your options is to consider debt settlement negotiations.
There are basically two types of debt – unsecured  and secured.  The debt which causes us the most problem is the unsecured debt on your credit cards.
Understanding how we got into this problem and finding ways to resolve the problem is the first step in giving you  a piece of mind.
The credit cards were flexible and easy to use for everyday expenses. But something happened along the way, I started just paying the monthly minimum and my balances continued to grow.  The interest rate  and fees increased on your credit card. That is no longer acceptable because you are drowning in debt.
It may be tough in the beginning to made concessions and accept the fact you have a problem.  But once you understand the problem and the solution to your credit card problem the easier your life will be for you and your family. This allows you to  get started placing the money into a saving on a monthly basis. You will begin to build up the monies needed to pave the way for the debt negotiations settlement process to work for you and your family.
An experienced debt settlement company has the resources and the ability to negotiation on your behalf.  They will work with you to structure a plan that fits your current financial situation.  The way for debt negotiation to be successfully is the consumer faithfully following the plan.  The financial plan may take as little as 12 months or more than 48 months depending on your outstanding unsecured debt position.

How do you do a fraud alert?  If you think you have been the victim of identity theft, you can inform the credit bureaus.  There is no penalty on your credit if you do so.  In fact you can do a fraud alert even if you have not been a victim of identity theft.  This would be another layer of security.  Once you have a fraud alert on your credit, you must personally authorize any new credit. Continue Reading »