There are several methods available to the consumer to consider when trying to get out of debt.  These methods are:

·         Try and manage their current debt themselves – in other words tighten their belt and spending habits.

·         Debt consolidation loan – this would combine all outstanding unsecured debt into a single payment loan. The problem is can the consumer qualify for a new loan with no job or financial hardship issue.

·         Refinance or Home Equity loan – This might work, if the consumer has enough equity in their home, however the repayment may be an issue.

·         Credit counseling service – This program acts like a debt consolidation loan. The consumer pays a third party company who in turns pays a small or set percent each month to the lenders until all the balances are pay off. In addition, there is credit counseling for the debtor and this will also have an affect on your credit score.

·         Bankruptcy – This is the most serious and the final step that a consumer should consider.  The consumer needs to discuss with an attorney all facets of bankruptcy since it will cover all debts, both secured and unsecured.

·         Debt settlement – This is a program by which a third party negotiates with the lender in order to reduce the outstanding balances on unsecured credit cards.

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.

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. 

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.

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, 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.

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

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!

“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.

With the onset of the credit crunch in 2007, millions of people saw their mortgage rates and their mortgage payments skyrocket.  Home foreclosures have hit new records across the country.  The credit crunch caused other impacts in the financial markets as well.  As the economy began to slow, consumers began to run into problems paying their unsecured and credit card debts.  Defaults on credit cards have reached an all time high according to MBNA.  Unfortunately, once you are in financial hardship there are not too many great choices in terms of getting out of debt.
How Does Debt Consolidation Work?

One option is debt consolidation, which will put all of your bills into one payment and possibly get your interest payments down.  Often times the payments are not much different than they were before the problem started.  Many people would like to take this option but they just can not afford it.

Facts About Bankruptcy
Another option would be to file for a Bankruptcy.  This would give you two options, one would be a Chapter 13 and the other would be a Chapter 7 bankruptcy.  A Chapter 7 is total liquidation which means that the debt is completely wiped out.  This can be very hard to get in light of the new bankruptcy laws.  The other option is to file a Chapter 13 bankruptcy.  A Chapter 13 does not wipe the debt away; you are basically just doing a debt restructure.  You will have to pay some of what you owe back.  This is up to the U.S. Bankruptcy Court to decide however.  Both bankruptcy options will have long lasting negative effects on your credit report and impact your FICO score for up to ten years.
What Is Debt Negotiation?

The other option is to do debt negotiation, or otherwise known as debt settlement.  You should only consider doing a debt settlement if you are unable to keep up on your bills (already behind on them) and you have determined that debt consolidation, Consumer Credit Counseling, or debt management programs are out of your budget.  A debt settlement program can have you out of debt in less than 36 months with no negative long term effects to your credit. You can also save yourself a lot of money.  The average debt negotiation program can save you 40-60 percent of what you owe your creditors.

I would like to point out that debt negotiation is not a free pass to dismiss paying your bills.  If you think that you are going to go out and charge up a storm to only put yourself in a program, you may be setting yourself up for fraud.  A reputable debt settlement firm would not take you on if the majority of your credit card debt is new.  Most people who enter a debt negotiation program have either lost jobs or had catastrophic medical issues to deal with.  People that do register for a debt reduction program do have integrity in that they want to avoid a bankruptcy.  They really do want to pay their bills.  If they did not want to, they would just do nothing.  To most consumers a bankruptcy is not an honorable solution.  People know that they borrowed the money and most feel an obligation to make some kind of amends with their creditors. Use Credit Wisely

My best advice is to do real planning when it comes to taking on new debt.  When you are going to make a purchase with credit you must be very clear as to what the impact of the new debt will be on your life.  It is an obligation and it is something that once you make it, there is no turning back.  What may seem like a good idea now may be a disaster in the future.  Make a budget and know what you can afford to do.  I know that we all want things but from my own experience I would rather have piece of mind than a bunch of junk in my house that I have to worry about paying for.  Debt Free is the way for me.  That is my mantra.  Try it out, it might help you sleep at night.  My goal is that you are happy and prosperous in your life.
Written by Debt Free Dave who has been in the mortgage and consumer finance business for over 10 years. He has a Finance and Real Estate degree from the University of Arizona. This Article is designed to be of general interest and should not be considered legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.

Is There A Difference Between Debt Settlement Companies and Debt Negotiation?  I am often asked questions about the debt settlment industry.  One of the most asked questions is the difference between debt settlement and debt negotiation companies.  The truth is that they are basically the same thing.

What Is A Debt Settlement Company? Continue Reading »

What do I do If I can’t pay my Christmas credit card bills?  Is Credit Debt Settlement a good option.  Many American feel an obligation to provide gifts at Christmas.  It seems that the media is pushing the sense that we should be providing a gift for everyone at holiday.  The truth is that many Americans are still trying to pay off last Christmas while piling on more debt for this one.  The truth is that is just doesn’t work.  It is more like short term pleasure and long term pain.  Once the holiday is over you are left with the credit card bills to pay.  It usually ends up being more like worry and fear.  You mind will become occupied with strategies about how you are going to pay for everything.  Millions wont be able to keep and and will fall behind on their credit card payments.

What Are My Options If I Can’t Pay My Credit Card Bills? Continue Reading »

Credit Debt Settlement Is Better Than Bankruptcy For Settlement Of Debt?  Millions of Americans are facing a mountain of debt and unsure about how to pay for it.  What are the options of getting out of debt when you have your back against the wall?  You can consider credit settlement, debt management, debt settlement program or debt consolidation.  Continue Reading »

New client testimonials that debt settlement does work:

“I just wanted to thank you for going above and beyond in helping us settle our debt. You have always responded to my questions promptly and courteously… Without your guidance and assurance, I would have been much more anxious and nervous about our financial situation. Thanks again for everyone’s contributions, especially yours!” – D.R.

“Thank you for your frank talk and compassion. I was at my wits end and you definitely helped me see it is just the next phase of our re-grouping. We are on the way to recovery, some stages are going to be rough, but with support like what we received from you, it will be bearable.” – C.W.

“Thank you!!! Working with your company has been mostly stress-free. It is a wonderful feeling to now be out of that much debt. Thank you once again.” – R.A.

“You have made my day! I’m so glad to hear the news that I am graduating – graduation is always a positive thing. I am going to thank you again for all your help, the hours you have spent e-mailing, calling, and doing the leg work to make this happen. I am very grateful for your help and for getting back on track.” – M.H. Continue Reading »