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 card companies are assholes mainly because that are only interested in making money off of you.  They don’t care if you get sick or lose your job, they just want your money.  Credit card companies are not your friends.  I looked in my wallet the other day to see what I was carrying around in there.  Visa, master card, discover, chase, bank of america, I have them all.  They don’t do anything for me except charge me money.

You are better off to live on a cash system or use a debit card.  You will be a lot happier not having bills to worry about paying each month.  There is no price on peace of mind.  Don’t be a slave to your creditors, don’t go into debt.  I don’t care how much you want something.

Debt Free is the way to be.

People in this country are in debt.  I get asked questions all the time about negotiating credit card debt.  Now I am getting questions about negotiating on a car loan.  For starters you can negotiate with credit card companies once your are behind on the bill.  Credit card debt is unsecured debt.  Car loans are different.  A car loan is secured by the asset, the car.  If you quit paying on your car loan, the repo man will come and get it.  My suspicions are that they are getting more car repossessions now more than ever. Continue Reading »

This Christmas season use cash to pay for your holiday gift purchases.  Using credit cards to buy your holiday gifts can be a trap.  There is a lot of social pressure to buy gifts for people.  My motto if you want to stay debt free over the holidays give up worrying about what people are thinking.  They are not going to help you pay your credit card bills when they come.  Buying gifts for people is not worth it if you cannot afford to.  Going into debt to buy gifts just because you think you should is not a good enough reason to do so.  Suffering over money is a terrible thing.  It is not worth it, so do not worry about what people are think.

If you do not have the money do not buy it.  Try using a debit card this holiday season or just carry cash with you.

What debt guru has a better method for getting out of debt?  If you were to match Suze Orman up against Dave Ramsey and their debt free plans, who would win?

How does Suze Orman tell you to get out of debt? Continue Reading »