Question of the Day…..
Oct 27th, 2009The 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.