The question of the day is? “How am I going to get out of debt?” I am barely able to maintain my monthly mortgage and car payments along my other monthly obligations.
People are faced with every increasing pressure to get out of debt and is now more willing to consider a debt settlement program. The average consumer wants to pay off their credit card obligations, but the lenders are not willing to work with the consumer.
Therefore, the consumer is let with no choice but to consider either bankruptcy or a debt settlement program. Yes, there are other options available, a home equity loan or a debt consolidation loan from a lender. However, because of consumer’s financial situation these options are usually not available to them.
The debt settlement program is a better option than bankruptcy for most consumers. If a consumer is considering bankruptcy they should consult an attorney before taking this step. Whereas a debt settlement program will allow a third party to negotiate on behalf of the consumer for a settlement of up to 50 percent off their current outstanding balances.
This is not a quick fix or easy step for the consumer. This program can take been 12 to 48 months depending on the consumer’s obligations. Basically, the program requires the consumer to place a set dollar amount aside each month into a “trust/escrow” account. Once there is at least half of your lowest credit card balance, then the debt settlement expert will start to negotiate with your lender. The key to this program is that the lenders are more likely to accept some monies from the consumer than receiving nothing from the consumer if they file bankruptcy. Under bankruptcy, normally the secured lenders receive their monies first and in most cases the unsecured lenders receive up to little or nothing. By receiving nothing, the lenders have to write this off as a loss or bad debt on their financial statements.
So call today and learn more about Debt Settlement.
In the beginning, the consumer used the card judiciously and paid off the balance in full monthly. However over time, the consumer started paying only the monthly minimum payment. From time to time because the economic climate was on the upswing, the consumer had equity in their homes. Because of the equity, the consumer would refinance their homes at a lower rate and take monies out to pay off their unsecured debt. This way of handling finances was alright as long as the economic was in a positive position.
Due to today’s economy – consumers are facing financial hardships, lost of job, reduced salaries, and divorce or faced a medical emergency along with the adjusted interest rate on their mortgages and increased unsecured credit card debt.
The consumers are faced with the reality of how to get out of debt. In most cases, this is the first time many consumers were faced with these uncertain financial times. So the consumer start looking for ways to pay off their financial obligations.
One of the options the consumer is selecting is a debt settlement program. Debt settlement is a method by which a third party negotiates with the lenders to reduce your obligation by up to 50% of the outstanding debt. The consumer puts aside a set amount of monies each month into a “trust/escrow” account over a period of 12 to 48 months depending upon the amount of their credit card debt. The debt settlement company starts to negotiate when at least half of the lowest balance is in the account. This proceed is repeated until all debts are settled.
This is not an easy fix. However, the amount of monies placed into the trust/escrow” account is normally less than the combined monthly minimum payments. By entering into this program, it will show the lender you want to repay your obligations but need help because of the consumer’s most recent financial hardship. The majority of lenders are willing to accept a settlement of half because if the consumer files bankruptcy the odds are the lenders will receive nothing. By receiving nothing this affects the lenders bottom line and is reflects as loan losses on their financial statements. So call your debt settlement expert today to discuss
The majority of consumers want to payoff their obligation either monthly or in full. However they are having a hard time of making ends meet in today economic climate. The consumer is on an emotional roller coaster and is seeking ways to make ends meet.
Today’s consumers are overwhelmed with unsecured credit card debt. They are unable to maintain making the monthly minimum payments on their credit cards. The reason why the consumer is seeking some type of debt relief is because they have incurred a recent financial hardship.
One of the options that consumers are considering is using a debt settlement company. A debt settlement company is a third party which will negotiate with the lenders on behalf of the consumer. In most cases, a debt settlement company is able to reduce the consumer’s outstanding balances by up to 40% to 50%. So considering that a consumer may have more than $10,000 in unsecured credit cards this debt might be cut in half. The savings to the consumer is monthly interest on their cards and the debt reduced from $10,000 to $5,000.
The consumer is asking, “Why would a lender accept half of the obligation due to them.” The answer is simple. If the consumer files for bankruptcy, historically there is no money available for the unsecured lenders. In other words, the lenders are willing to take something rather than receive nothing on the obligation. If a consumer does file bankruptcy then the lender has to write-off as a bad debt this obligation which affects their bottom line.
Using a debt settlement program is not a quick fix or an overnight solution to the consumer’s situation. However what it does is allow the consumer to save monies into a “trust/escrow” account over a period of time. Normally, this amount is less than what their combined monthly minimum payments are on the debt. The debt settlement company begins negotiation with the lender when at least half the monies are saved against the lowest outstanding debt.
Debt settlement is an option for many consumers today. Therefore, call your debt settlement expert today to discuss how they can help you.
The definition of debt settlement is a third party who negotiates with lenders on behalf of the consumer. Debt settlement is a method of getting out of debt for the consumer’s who have fallen on hard times.
Debt settlement is one of the methods used by consumers when they fall behind on their unsecured debt obligations. A debt settlement company may be able to reduce the consumer’s outstanding balances. The consumer may be asking why use a debt settlement company instead of trying to negotiate with the lenders themselves. As a consumer you can take this approach, however one of the drawbacks is you will be working with multiple lenders. These lenders would want the agreed amount money upfront in order to settle your account.
By using a debt settlement program, they will negotiate on your behalf and notice the lenders of your indications of using a settlement program. The debt settlement program will set up a “trust/escrow account” for the consumer. Each month the consumer is deposit an agreed to amount in order to start saving. Once the account has reach at least half of the lowest outstanding balance of one your credit cards, the company will begin negotiations with the lender.
The consumer will now be making only one monthly payment instead of multiple payments over a set period of time. It may take between 12 to 48 months to complete the cycle of reducing the consumer’s unsecured debt.
So start today and contact a representative so they can answer all your questions so you can start living debt free!!
One of the ways to get relief is to use a debt settlement program. This program is not an easy fix or an overnight miracle for the consumer, this program can take between 12 to 48 months depending on the size of your debt. Basically the debt settlement program works with the consumer to establish a payment plan by which monies are placed monthly into a “trust/escrow account.” When a less half of the monies owed to a lender on your lowest balance credit card, then the debt settlement expert will begin to negotiate on the consumer’s behalf. The monthly payments into the account are normally much less than the current minimum monthly credit card payments. The debt settlement company is usually able to negotiate a 40 to 50 percent reduction of the consumer’s debt.
As a consumer you are asking why, would a lender expect this type of negotiation? The underlying answer is the lenders are more willing to take something against the outstanding debt than to have the consumer file bankruptcy. Normally, when a consumer files bankruptcy, the secured creditors are pay first from the consumer’s assets and the unsecured creditors receive little to nothing from the consumer. It is a win-win for everyone, the consumer and the lender.
Before entering into any program, the consumer needs to understand how the program works and its affect on them. Debt settlement may not work for everyone. It is not a quick fix or overnight miracle for the consumer. So if anyone tells you they can wipe way your debt instantly or in less than one month. You need to seek out another company, since the process can take between 12 months to 48 months.
When you sign up with a debt settlement company, the consumer should ask the following questions:
- How long has they been in business
- Is the staff trained and certified
- What are the exact fees for this service
- What is the name of the bank and officer responsible for the trust account
- Are they listed with the Better Business Bureau
- Who will exactly be handling my account
- Ask for a contact list for the company
A legitimate business should able and willing to answer any questions you might have about their services. Also how your account will be handled on either a day to day bases or monthly bases once you have established the parameters.
As a consumer, you need to also know the drawbacks of a debt settlement program. However, these drawbacks are less serious than filing bankruptcy or doing nothing about your situation:
· Credit Score may be hurt – but your score has already dropped because of late payments or non-payments. You score will improve as your payoff the debt.
· Tax ramifications – The IRS requires you to report as taxable income any amount of debt settlement in exceed of $600. This means an increase to your income.
· Collections – The consumer may continue to receive calls from the lenders until they are informed you are using a debt settlement program. However the call may continue since it up to the individual lenders.
· Fraud – As a consumer you might select the wrong debt settlement company.
The key to a successful resolution to your financial situation is to understand the progress and know the debt settlement company you are working with.
Again, this is no easy progress, but with determination and a willingness to solve the problem. A debt settlement program can and will work for you and your family.
Today consumers are facing a hardship that has been caused by not only the economic climate of losing their jobs or reduced hours to part-time but also by a medical emergency. Perhaps only making the monthly minimum payments on their credit cards but they were able to meet their monthly mortgage and car payments on time.
So during these trying economic times, the consumer is not only stressed out because of their job lost but their inability to meet their obligations. The consumer must decide what is best for them and their family. Because of the emotional toll it is taking on them.
After the consumer, has reviewed the various options such as, debt consolidation, debt consulting, bankruptcy, do nothing or debt settlement. They will see that a debt settlement option may be their best method to unburden themselves.
As what is debt settlement? Debt settlement is a managed approach used by a third party company. This company will negotiate on behalf of the consumer to reduce their debt by up to 50% of the outstanding current balance. Basically, the consumer places a set amount of money each month into a “trust account” until approximately half of what is owe on their lowest credit card balance. It is when the debt settlement company will start to negotiate with the lenders. The lenders are more willing to take something on the balances than have the consumer file bankruptcy on them. In a bankruptcy case, depending on the assets of the consumer, normally secured lenders get repaid first then the unsecured lenders. In most cases, the unsecured lenders receive no money from the consumer.
The consumer wants to do the right thing not only for themselves but their families. A debt settlement program can take from 12 months to 48 months to complete based upon the outstanding credit card balances. This program may cost the consumer less than their current monthly minimum payments. It is not a quick fix program but a program that will allow the consumer the ability to repay their debt and repair their credit score.
Debt settlement is an alternative approach to the other methods that maybe available to the consumer. A debt settlement company is a method to use by the consumer to get out of debt. This debt is typically the consumer’s unsecured credit cards and medical bills.
The other methods which the consumer may consider are:
- Trying to manage their current debt themselves
- Debt consolidation loan
- Home Equity Loan
- Credit consulting
Due to certain financial hardships, the consumer is not longer able to meet their monthly obligations. This hardship has been caused by loss of job, medical emergency or death in the family. No consumer wants to file bankruptcy since that is the last course of action for the individual and their families.
Debt settlement is an easier way to resolve the consumer’s obligations. It is a method by which the unsecured debt is negotiated by a third party with the various credit card lenders. In most cases, the lenders are willing to negotiate a settlement of approximately 50% of what you owe on the obligations. This is not a quick fix or an overnight process in reducing the consumer debt. A debt settlement program can take between 12 to 48 months depending on the number of credit cards and the dollar amount outstanding.
If the consumer is willing to work the program, then debt settlement is a way to proceed to reduce their debt.
Credit card debt is almost a way of life in today’s economical time’s. It’s so very easy to take out our credit cards and purchase everything from groceries to our utility bills on plastic. Some of the time people can pay these off the next month and they do not carry a balance moving forward . However, for others – this is just a way of life.
Which leads us to the question of what if the unthinkable happens? I’ve been living paycheck to paycheck and living beyond my means. Of course this will lead to a degree of worry, anxiety, fear and perhaps to denial of the severity of your financial situation. Because you don’t have a reserve or back up plans. So, y ou have become obsessed with your money problems of missed payments, bill collectors calling and possible litigation.
Needless to say, it’s common for the consumer to avoid the collection calls which further adds fuel to the fire because the collectors just become more aggressive in their tactics. You begin to experience depression but you need to get back to reality and deal with the situation head on!!!
In visiting Dave Ramsey’s website I came upon this comment….”Laziness is a character flaw. You need to be willing to work and sacrifice in order to fix the situations that you created with your own irresponsibility. If you are not willing, then you cannot be helped.” I agree with this statement 100 percent.
The consumer needs to toll up his sleeves and get ready to work hard. You need to rip up the credit cards and start by being honest with yourself and your creditors. It’s time to get proactive and deal with your situation today.
Contact a consultant who can answer your questions and put you on a path of financial freedom!
Today the consumers are asking themselves the following questions:
· Is there are way off this financial treadmill?
· How do I get rid of the emotional baggage I’m carrying because of my debt?
· I’m I ready to face the hard decisions about a solution?
As a consumer, you can’t feel like you’re the only survivor on the lost island. According to the American Bankers Association, “ delinquencies on consumer debt has hit a record 3.23%.” The percentage of borrowers at least 30 days late have hit its highest level in 35 years. In additional, consumer bankruptcy has increased by 22% from 2008 according to the American Bankruptcy Institute.
Consumers when faced this issue are reviewing their options. One of the options is debt settlement. Most consumer favor this program over bankruptcy. Bankruptcy should always be the last resort for the consumer.
Consumer are making decisions everyday that they need to get out of debt. The majority of consumers want to pay their financial obligations in full. This approach is currently not possible for some consumers. The reason being the current economic climate along with the new financial hardship faced by consumer.
When you discuss, debt settlement as an option. You will be told it will affect your credit score. This credit score is important to the consumer because its affects your ability to borrow money. David Leuthold, of The Association of Settlement Companies, indicates that many consumers seeking relief have already seen their scores plummet. “Basically, what they’re deciding by coming on to a debt-settlement program it more important than their credit score.”
If the consumer decides to use a debt settlement program. The consumer needs to know that if their financial situation improves then they can opt out of the program and get back on track with meeting their financial obligations.
As a consumer, we need to understand the meaning of the word credit. Credit is considered as either secured or unsecured monies loaned to you by a lender, in return for future payment. Lenders or creditors who have advanced to you monies to purchase your home or credit card companies/retail stores which allow you to charge purchases with the understanding you will pay them principal and interest over a period of time.
A good credit score means you are a low risk consumer while a lower credit score means you are a riskier borrower. Credit scores from the three major credit bureau’s (Equifax, Experian or TranUnion) range from 300 to 850.
However, according to a recent article in “USA TODAY”, lenders are clamping down on credit and credit scores are taking a hit. The lenders are reviewing all of their consumer credit cards and making determinations about who is using their credit cards. Lenders are closing credit card accounts and lowering credit limits for millions of consumers who have never paid late. When a card is closed by a lender this effects your credit score.
However, maybe as a consumer you had a fair to good credit score. But do to the recent economic environment you are not able to keep up with your financial obligations. This is going to affect your credit score since late payments, mortgage modifications and high balances are now taking a bigger toll on your scores.
So when you are looking at debt settlement program and you are informed that your credit score will take a hit. You credit score may had already taken a hit because of your late payments and too much credit with high balances prior to entering into a debt settlement program.
As a consumer, do you feel like the title of the 1961 Broadway play, “Stop The World – I Want to Get Off.” The consumer is not sure where to turn or how to get off the treadmill which is causing emotional and financial stress to them and their family. This is how many consumers are feeling with their mounting debt based upon financial hardship.
One of the alternatives to this situation is to consider a debt settlement company. The consumer is wondering how these companies know of their financial situation. Basically, these companies have established credit parameters with the various credit companies and receiving list of names and addresses such as, debt over $10,000 or high balances whether you are current or not on your payments.
The consumer should ask the debt settlement company the following:
· What are your proven strategies?
· What is your success rate?
· Are you listed with the Better Business Bureau?
· How long have you been in business?
The consumer should be aware that if they try to negotiate with a lender on their own. The lender in some cases will not talk to the consumer unless they are already 60 to 90 days delinquent. If you are already delinquent this is going to hurt your credit score and can not be blamed on a debt settlement company.
One of the key’s in using a debt settlement company is establishing:
- The consumer has some ability to pay a set amount each month
- That the debt settlement program is sound
- That a debt settlement is better than a charge off on their credit report
- The consumer needs to be upfront with the debt settlement company about their financial situation
- The consumer needs to stay in involved in the process.
- The consumer needs to document all contact with the settlement company and have a clear understanding of the program.
The consumer needs to remember it is their responsible. There is no quick fix for solving the consumer’s debt issues. However, there is a way out of this situation. Contact our debt settlement expert today to discuss your options and get started on your pre-approval.
There are several questions a consumer must ask themselves when faced with overwhelming unsecured credit card debt. One of these questions is “why use a debt settlement company?” Or why not seek out other methods?.
The answer to the first two questions are a debt settlement company has the means and the experience to negotiate with your lender on your behalf to reduce your outstanding unsecured balances. The other methods are doing nothing and working with a credit counseling company which pays the bills for you on a monthly basis. They do not reduce your debt nor do they normally get the interest rate lower.
The debt settlement company will establish the dollar amount which needs to be placed in a “trust/escrow” account and will determine how long it will take to reach the first plateau of your goals. This plateau is normally half of your lowest outstanding credit card balance. At that point in time, the debt settlement company will start to negotiate on your behalf. Here is an example:
· Estimate new monthly payments of $750 (less monthly fees)
· Under new debt settlement plan it will take between 12 to 36 months to payoff
· Owe $19,000 on 4 credit cards ($3,000,$7,000,1,500, 7.500)
· Currently monthly minimum payments of $2,300
· Divide your debt by 40% for a new outstanding balance of $7,600
Yes, a debt settlement company does have some drawbacks. However, your financial situation requires some type of action. The consumer needs to investigate all the in’s and out’s of a debt settlement program and how it will work for them.
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 a consumer you have been bombarded with ways to get out of debt. If you have unsecured debt of more than $10,000 and you have been receiving letters from various companies or attorney’s for debt settlement companies. But as a consumer you need to determine if debt settlement will work for you and your family.
As a consumer you need to know the steps involved in this process and if it is the solution for you and your family. Debt settlement is a way to approach your outstanding unsecured credit card debt. The debt settlement company is a third party company who on your behalf will negotiate with your various lenders.
Here are a few of the steps of that process:
· Consumer stop using their credit cards
· Consumer stops making monthly payment to the lenders
· Consumer starts making a set dollar amount each month into a “trust account”
· When this account reaches approximately half of the outstanding balance of your lowest balance debt ( owe $4,000 and $2,000 in account)
· Debt settlement company starts to negotiate with lender
· This process is repeat until all of your debts are settled
· Establish a financial budget for the future
You must ask the questions of your debt settlement company and understand their answers. You need to be clear on what the steps are and how this process will affect you and your family during this financial crisis.
Debt settlement is an alternative to the other options available to the consumer. If the following options like debt consolidation, debt counseling or bankruptcy do not appear to be the right approach for you. Then consider a good debt settlement company as a way out of your current financial situation.
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.
In today’s society many Americans are addicted to buying almost everything on credit. The retailers make it possible for us to thrive on this concept with buying everything on credit. Perhaps out of convenience – to simplify their life or maybe out of personal or economical hardship.
However, it doesn’t take long before your wallet is filled up with bank cards and department store cards. Most people think that it is easy to pay them off at the end of the month. Easier said than done. Many people start to justify reasons to use the cards. It’s easier than to part with cash. Then it’s the Holidays, presents to buy, short trips, dinner out with friends, the reasons are endless.
The debt builds up slowly with no major purchases to show for. And before you know it – you can be thousands of dollars in debt with no end in sight. This type of consumer debt is considered unsecured debt verses secured debt. The difference between the two types of debt is at secured debt is backed by some type of collateral with fixed payments to reduce the debt while unsecured has high interest rates, no tax advantages and is not collateralized.
The consumer continues to build up debt because they are paying only the bear bone minimum. The credit card companies only require you to make a minimum monthly payment of between 2 to 3 percent of your balance in order to continue using your card while continuing to add a monthly finance charge to your balance along with late fees and over limit fees in some cases.
In the beginning, the consumer feels it’s alright about repaying only the monthly minimum payment because they believe the next month they will be able to paid more on their account. This gives the consumer a feeling of confidence to continue to spend more freely and leads them down the path of spending more than they earn each month. However this spiraling debt only continues to grow and the consumer is now facing added pressure to met their financial obligations.
Because of this spiraling debt, the consumer needs to consider how to get out of debt. One of the options for the consumer is debt settlement. Debt settlement is a method by which a third party works on the consumer’s behalf to negotiate with the credit card companies. This process requires the consumer to stop using their credit cards, budget their finances and start saving a certain amount of money each month. This money is placed in a “trust” account and until it achieves at least half of your lowest balance credit card before the third party company can start negotiating. This process may take between 12 months to 48 months to clear all of your unsecured debt.
Now is the time to explore how our debt settlement company can help you out of the depths of financial problems.
You receive an offer in the mail for a credit card. You send in back and within weeks you have a credit card at your disposal. It becomes the perfect recipe for a financial disaster. It seems as though many people are living beyond their means. While convenience is wonderful with regards to your credit card it also comes with a price.
Even fast food retailers know that consumers will be more likely to spend more on plastic than with cash. Needless to say, they are racing to make it easy that every outlet is now card friendly. The last thing you would want to do is purchase that hamburger on a credit card. Especially, if you’re buying it on credit, paying it off slowly or worse, finding out that your credit card company has increased its interest rates.
You need to read those little booklets that often come in the mail. Do not discard the material – if you have questions call your credit card company.
Finally, if you find yourself in doubt – pay the minimum payment on time. Big payments do not impress lenders: timely payments do. For example – if you make a late payment your lender may waive the late fee however your other credit card company’s can raise the interest rate even if you made no late payments to them. How can they do this? It’s called “universal default”. The basics of universal default are simple – if you’re more than 30 days late on a payment to anyone the interest rate on any card with a universal default clause can increase your interest rate.
With that being said – don’t take anything for granted. read the small print and if you have any questions – give your card carrier a call. Be proactive not reactive to the situation at hand.
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.
In today’s economical climate, there are a lot of people who are looking for debt relief on their credit card debt. In order to successfully tackle your financial situation you need to get organized and understand your situation. So, understanding the type of debt you have is a good place to start.
There are two types of debt secured and unsecured. In a secured loan, the debtors personal assets are guaranteed as collateral for the loan. In some cases, if the debtor is unable to repay the loan on time, then the lending agency can assume the assets as collateral.
Credit card debt is considered “unsecured ” debt and the most common of the two. In unsecured debt there is no collateral to collect if you default therefore the credit card company has the right to sharply increase your interest rate which can make it nearly impossible to payoff particularly if you are making the monthly minimum payments. Needless to say, you can start sinking further into debt.
Debt settlement is a process which debtors can turn to. The debt settlement company negotiates on your behalf with creditors to reduce the overall debts in exchange for an agreement upon settlement. The consumer makes payments on a monthly basis and over a period of time enough funds are built up allowing the settlement negotiations to begin. The debt settlement companies typically have built up relationships with the credit card companies and can reach an agreement rather quickly.
Living in debt can be very scary and sometimes it just takes patience and doing your homework and understanding your own financial situation. Once you make the decision – debt settlement can put you on the path of living debt free.
Start today by calling 1.866.963.9988
A historical look at a debt settlement program is nothing new for the consumer or for the lenders in regard to unsecured debt. Some type of settlement practice has been in place for over 100 years. The plan may not have been called debt settlement it might have been know as debt relief or debt forgiveness depending on the amount of the settlement.
The only form of relief for a consumer was bankruptcy, debt counseling or debt consolidation. Debt settlement was a little known way for consumer’s to find a way out from unsecured credit card debt.
If you call your credit card company to work out a deal, they typical will work out a payment plan for the whole outstanding balance. Therefore, the consumer is not gaining any ground is trying to get out of debt. Plus the consumer might simply walk away from the debt altogether, by filing bankruptcy then the credit card companies received almost nothing on the outstanding debt. This hurts the financial bottom line of the credit card companies. Therefore, they are more willing to work with a debt settlement company and receive at least 50% or less on the outstanding debt than maybe nothing at all from the consumer.
The phrase, “a bird in hand is better than nothing” can apply to why credit card companies are willing to negotiate with a debt settlement company. It’s a process which requires discipline by the consumer, but it is a better way to handle your outstanding debts, without having to file bankruptcy or doing nothing about your debt.
One question that every consumer asks is, why would a credit card company, be willing to work with a debt settlement company instead of with me the consumer directly? The answer to that question is simply. The debt settlement company has a better understanding of the consumer laws and has experience dealing with the credit card companies.
So take at first step and talk to an experienced debt settlement representative today!
In today’s economical climate – debt can make life difficult to enjoy. It’s part of our reality. Two possible solutions to resolving this burden can include bankruptcy or debt settlement. Let’s examine these possibilities.
You first need to determine if you can pay down your debts with your present income. If your current expenses exceeds your basic living expenses debt settlement may help you resolve your financial situation. If your income does not exceed your expenses such as mortgage, utilities, car payment and insurance and your basic household needs then debt settlement is not a solution for you. Examine the pros and cons of committing to a debt settlement company You want to work with a reputable debt settlement company. Look for companies with a sound history and proven track record. Also, ask how a debt settlement program will impact your credit in the future and what the long term effect on your credit as well.
If you have no other option for resolving your financial situation begin to do your research on bankruptcy. You need to determine if you even qualify for bankruptcy by reading the most current U.S. Bankruptcy Code’s. Depending on the types and amounts of your debts, a bankruptcy will not necessarily rid you of your obligations to pay some of your bills even though you filed bankruptcy. Make an appointment to discuss your financial situation with an attorney who specializes in bankruptcies. It is important to have the attorney give you a written quote for their services to represent you in court.
Finally, consider whether filing bankruptcy will resolve your financial situation. Keep in mind that a bankruptcy filing remains on your credit report for ten years and can have a significant impact on your future and your ability to re establish yourself.
“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 2nd 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.
As a consumer, you need to know the definitions and differences between debt settlement and debt consolidation.
Debt consolidation is described as taking out a loan to pay off other unsecured financial obligations. When the economic climate was better, a consumer would go to their bank and apply for a home equity loan as a method of consolidating debt. However, a consolidation loan normally involves securing this new loan against an asset which serves as collateral for this obligation. A home equity loan was cheaper than the combined interest rates on the consumers outstanding unsecured credit card debt. The interest rate was normally a floating rate associated with prime rate plus a specific percentage above prime. But this does not solve the problem for the consumer, since they only added new debt to their current situation and repeated the cycle of using their credit cards.
So in today, economic environment, the consumer’s primary asset is their home. But as we know, the equity positions in the home’s are not holding their value. The majority of banks in today’s market are not lending unsecured monies to consumers for consolidation loans with some type of collateral.
A debt settlement program, is a process to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full. By using a debt settlement program, in some cases the outstanding debt by can be reduced by more than 50%. The process involves you putting aside a certain amount of money each month to accumulate monies for the negotiations to begin on your behalf.
Debt settlement when compared to debt consolidation is a better option. Because as a consumer you are taking charge of your repayment plan. You are reducing debt not adding more debt by using a debt settlement company.
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.