Has your monthly spending continued to outgrow your earnings? Have you suffered an medical emergency or lost your job? This is very typical of our economics in today’s reality and if this is your situation then a debt settlement company may be the solution.

Debt settlement is a method by which a third party negotiates with your lenders to reduce your unsecured credit card debt. With that said – it’s important for the consumer to have an understanding of their options and various alternative that may solve their finances.

The alternatives available to the consumer are: debt consolidation, debt counseling, equity loan on home, bankruptcy or debt settlement.

So a quick review of these alternatives:

·         Home equity loan – This allows the consumer to borrow against their personal residence.  There may or may not be enough equity in their residence to qualify for this loan.

·         Bankruptcy – This is a major step for the consumer.  The consumer needs to discuss with their attorney.

·         Debt consolidation – This approach allows the consumer to pick and choose which debts to consolidation into a term loan with a lender.  A term loan is normally secured by collateral from your lender and can try up to 5 years to repay.

·         Debt counseling – The consumer meets with a counselor to determine an set budget to pay off your debt to the lenders. The consumer is still required to pay off their entire balances.

·         Debt settlement – The debt settlement company establishes a monthly repayment plan. After at least half of your lowest outstanding unsecured credit card balance is achieved. The third party will negotiate with your lender to reduce your debt.  This negotiation can be from 40 to 50% of the balance. This process can take between 12 to 48 months depending upon your debt burden.

When compared against the other alternatives it appears to be a better method in changing your financial situation.  If is important for the consumer to understand all the step involved in a debt settlement.  Call today to speak with a representative!

Contrary to common thinking, you are not what you eat. Rather you are what you think. What got you into debt was not a lack of money but what thoughts you where indulging in in you head. All of the fantasies and stories that you told yourself that were not real about why you needed to buy things that you did. I’ll pay it back at the end of the month, this is what you tell yourself only to make the minimum payment. But next month I’ll pay it back in full.

The More You Think About Debt, The More Debt You Will Attract Continue Reading »

Just because you are in debt does not make you a bad person. You are only human. If you were perfect you would be a perfect being and not a human being. You can learn from your mistakes and become a better person for it. I promise that you will come out of your financial circumstances better than when you went into them. Continue Reading »