As a consumer, you must have a clear understanding of the program you are selecting.  Do not let any lender give you answers to questions that are not clear or you do not understand.  It is the consumer’s responsibility to understand exactly what their monthly mortgage payment will be and if this payment includes property taxes.  The consumer needs to select a program what meets their financial requirements.

When meeting with the lender, the consumer must be do the following:

• Always be truthful to the lender
• Have complete copies of last two (2) federal tax returns including all W-2’s on all borrowers
• Have copy of most recent paystub for all borrowers on the transaction
• Have a copy of last two (2) months bank statements on all accounts and any stock/investment accounts
• If refinancing, have a copy of most recent mortgage statement
• If refinancing, bring copies of original documents in regard to mortgage
• Prepare a list of all assets, including names of banks, average balances along with a list of all liabilities, i.e., auto loans, credit cards, 2^nd home mortgages.  Note the lender can receive this information via a copy of your credit report.  But having the information available at the meeting is important.

At this meeting, the lender will be able to approximate, what your debt to income ratio. The final ratio is determined by credit underwriting. 

By having this information available, the lender should be able to discuss with the consumer various types of loan programs, which will meet the consumer’s financial position.  If you are a new home buyer, it is important that you have money available for a down payment. 

So what is the debt settlement option? Debt settlement is a method by which a third party negotiations on behalf of the consumer with their lenders to reduce their outstanding balances. Typically, this program works only for unsecured credit cards but may include any other types of unsecured debt like medical bills.

Today’s consumer is asking themselves, “How am I going to get out of debt?” The answer to that question is to consider a debt settlement program as a method to resolve their current financial situation. Consumers have not faced this type of financial climate since the Great Depression and in that situation; they were not overburden by unsecured credit card debt. Consumers are riding a roller coaster of emotions because of their financial situation. This along with the fact they are facing financial hardships because of a lost of job, reduced salary, divorce, death or medical emergency.

The consumer needs to select an experienced debt settlement company.  This company should be able to provide answers to all the consumer’s questions in a way that the consumer clearly understands how the program works.  The consumer should ask for the following:

• Upfront copy of all documents along with fee and cost schedules
• A company profile
• List of accreditations or afflictions, i.e., Better Business Bureau and associations

With any program, there are pros and cons when considering a course of action.  It is the consumers responsible to ask questions and do their research on the debt settlement company they select.

 The con’s are:

·         Tax ramifications – consumer will need to report any amount of forgiven debt that exceeds $600. This means an increase to your tax bill.

·         Credit score will drop

Some of the pro’s are:

• One single monthly payment
• Avoiding bankruptcy as an option. Always consult with an attorney about this step.
• Stopping collection calls
• Possible elimination of lawsuits and other legal action
• Stop any extra charges to the credit card

 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.

The biggest problem facing today’s consumer is unsecure debt.  When facing this financial challenge the consumer may want to consider a debt settlement program. They want to paid off their credit cards but have been struggling because of possible job loss or reduced salary or a medical emergency.

Let’s take a quick review of what it’s costing the consumer on their unsecured credit cards.  For example:

·         Credit Card debt of $30,000

·         3 years of interest at 19% is $17,100

·         5 years of interest at 19% is $28,500

The above interest figures do not calculate any principal reduction on the $30,000 outstanding. So you can see that you are not making any headway on reducing your debt only adding to your financial situation.

If you have faced a financial hardship, then consider using the debt settlement method.  Under a debt settlement program, a third party will negotiate with the lenders to reduce you debt possible up 50%.  This would mean you would cut your outstanding balances in half and would save up to $17,100 or $28,500 over the next three to five years.

Debt settlement may not be the right program for everyone.  However as a consumer, you need to call a consultant today to discuss a program that is right 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.

Adversity comes upon us when we least expect.  Were asked to take a reduction in pay or perhaps we experience a job loss. As a consumer who is unable to meet the  monthly minimum credit card payments you need to find a way out of this financial situation!

First thoughts are to just do nothing and walk away from the debt.  But that is not the right solution. So you need to start investigating different  methods to correct your financial situation.

The most often methods discussed for consumers in trouble are:

• Consolidation Loan
• Home Equity Loan
• Consumer Consulting Services
• Bankruptcy
• Debt Settlement

In a prefect world, the first three programs would help rearrange the financial situation.  Since you would have money or equity in your residence to qualify for a loan or need assistance in understanding how to better manage my money.

Bankruptcy should always be the last step when considering how to get out of debt.  As a consumer,  do not want to walk away from my debt but somehow pay them back to the lenders. Bankruptcy needs to be discussed with an attorney, who can explain the legal process and its affect on the consumer.

Therefore, debt settlement was a more managed approach to resolving my financial situation.  The one lesson learned during this financial downturn was to tighten my belt and save for the future.  I should use my credit cards only when I can actually repay each month what I spend on the card.  I have learned my lesson. 

So now as a consumer, struggling with credit card debt over $10,000 now is the time to call your debt settlement expert.

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
• Bankruptcy

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 cards are flexible and easy to use for your everyday expenses.  However, over the course of time your rates and fess started to gradually increase.  Needless to say , due to circumstances beyond your control you find yourself drowning in debt.

Do you have more than $5000 in debt on more than 3 credit cards?  Understanding how you got into this problem and finding ways to resolve the problem is the first step in giving you – your start to financial freedom.

I read a quote by Pat Robertson and his advice was this ” The law of compound interest coupled with the law of use will lead to amazing things. Meaning if you save it and compound it – sooner or later you will come out with something better” I happen to agree with his observations and comment.

You first want to consider your options and carefully   dig yourself out of debt.  A debt settlement company  is a variable option.  An experienced debt settlement company has the resources and the ability to negotiate on your behalf.  The consumer needs to faithfully follow the plan that the settlement company has placed into action.  The financial plan may take as little as 12 months or more than 48 months on your outstanding unsecured debt.

It may be tough in the beginning to make those sacrifices but once you follow and complete the debt settlement program you can begin your journey to financial independence and starting letting your money work for you.

Call today and speak to a consultant with will be able  to answer all of your questions.

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!

The consumer needs to explore a debt settlement program as an alternative to their financial hardship. Debt settlement is a method by which a third party negotiates on behalf of the consumer to reduce and sometime cut in half their credit card debt.  This is not a quick fix or an easy process.  The consumer needs to understand how this program works and how it will affect their credit score.

Any consumer who decides to enter into a debt settlement program needs to be aware of the positive to the program and pitfalls.

What are the positives to this program:

·         The consumer now has a plan to climb out of debt.

·         The consumer has a timetable for getting out of debt.

·         The consumers credit will improve overtime as the debt is negotiated.

·         The consumer may not continue to face the harassing collection calls.

·         The consumer feels better about trying to resolve their debt by not filing bankruptcy.

 What are the pitfalls:

·         Consumer credit score will drop.

·         Consumer may face a tax bill on the forgiven debt over $600.00.

Every consumer worries about their credit score.  This credit score is key for allowing the consumer to borrow whether to purchase a home, car or apply for a new credit card. So once the consumer starts on the debt settlement program, one of the key steps to helping you’re current score is to continue making all other payments on time,  This means making your monthly mortgage, auto and equity line payments.  It is important to continue meeting your secured debt obligations.

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. 

What is debt settlement? The consumer has been bombard with unsolicited mailers and advertisements on television about debt settlement.  So, with that being said what do I need to know before moving forward?

Is Debt Settlement a good alternative to get out of debt?  Debt settlement is when a third party company negotiates on the behalf of the consumer to reduce outstanding unsecured debts.  The consumer needs to be aware of all the steps involved in using a debt settlement company. Before deciding on a debt settlement company, the consumer needs to ask themselves the following questions:

• Does the consumer understand have their credit score will be effected
• What has caused my financial situation, i.e. lost job, medical emergency
• What are my alternatives, debt consolidation, debt counseling, bankruptcy
• Is the consumer ready to work their way out of debt

When selecting a debt settlement company, the most important issue is having a clear understanding of how debt settlement program works. Here are a few steps to determine if a debt settlement program will work for the consumer:

• List all of your unsecured debt. Is it more than $10,000?
• What is the total of your current monthly minimum payments.
• What can you afford to pay monthly?
• Are you currently late on your unsecured credit cards?
• Are you committed to establishing a budget and living within you current means?

If you have answered yes to any of the above questions then you are a candidate for debt settlement.  The key to completing a debt settlement program is knowing 1) you can make the new established programs monthly minimum payment, 2) know that the debt settlement company will start to negotiate with the lenders when you have approximately half of your lowest balances in an trust account, 3) know your credit score will be effected in the beginning, and 4) know you maybe subject to taxes on the unpaid balances.

It’s time for you to move forward and speak with a representative today!

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.

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.

That is a question that people are asking themselves every day.  Our backgrounds are different but the circumstances are very similar in our behavior.  A spouse’s lack of financial maturity and cooperation left one family falling further and further behind.  A  young couple trying to fix their financial failures and live well beyond their means suddenly are meant with the unexpected.  And finally  a single parent taking out thousands of dollars in credit card advances to pay for medical bills. Thus developing symptoms that become common in all of us – procrastination, inertia, helplessness and cluelessness in all things being financial.

We then try to place blame for our financial picture however the following is of our misgivings:

• Most people lie about the severity of their debt while others live in denial
• Anxiety or fear
• Not having enough money
• Lacking sufficient time to pay off our credit cards
• Uncooperative spouse
• Laziness

So, with that being said  – there are options to these  financial circumstances.  In order to work with a debt settlement company, a consumer needs a lump sum or build up enough funds over a pre-determined time.  Once enough funds are built up the negotiation process can begin.  The debt settlement company negotiates on the borrows behalf with creditors to reduce the overall debts in exchanged for an agreement upon regular payments to be made.  Only credit cards debts can be handled, not student loans, auto financing or mortgages.

Researching and comparing debt settlement companies will allow you to determine the company that meets your specific situation.

Debt settlement is a way to manage your debt burden caused by extreme financial hardships due to loss of job, medical emergencies and out of control unsecured credit card debt. Debt settlement is one of the better ways to solve financial issued instead of filing for bankruptcy.  Bankruptcy is a very serious situation and has serious financial consequences.

Though the consumer can try to work with creditors to negotiate on they own most consumer use a third party, debt settlement companies. Most creditors will work with a debt settlement company to ensure receiving at least some monies from the consumer verses the consumer filing bankruptcy and not receiving any monies. 

When selecting a debt settlement company, the consumer should confirm information about the company:

·         Ask for a copy of the contract in advance to review

·         Length of time in business

·         Who is handling my account

·         History of the company

Remember, any debt settlement company that tells the consumer it can reduce its debts within weeks or wipe away the credit instantly. The consumer should avoid this type of company.  It may take a minimum of 12 months to negotiate that first settlement and up to 48 months based upon the outstanding balances owed by the consumer to the creditors.

A debt settlement company should explain to the satisfaction of the consumer all the steps involved in the program.  Here are a few of the steps:

• Start to deposit an agreed upon dollar amount into a established “trust account” each month for a certain period of time
• Once enough funds are in the account, the settlement company will negotiate with the creditors on your behalf.  Normally working on the lowest outstanding balance first and working they way up to the larger creditors.
• This negotiation agreement with the creditors can be from 50 to 60% of the outstanding balances and any additional fees
• Discuss fully with experienced staff on the extend of your debt

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