The 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.

Today’s consumer is overwhelmed with both secured and unsecured debt. This debt burden is causing not only a financial crisis but an emotional crisis within the consumer’s family.  When a family is overloaded with debt and trying to keep their head above water several things need to occur to assist with this situation.

The consumer needs to step off the financial and emotional treadmill they have built for themselves. There are several ways to approach the problem.  The consumer need to investigate the solutions that are currently available for them and their particular financial situation. 

The most common methods are:

·         Bankruptcy – This is the most serious of solutions to your problems.  Please consult an attorney.

·         Debt management/debt counseling – Basically, this program works to get the interest rate lower but the balance is not reduced.  These type of programs are reflected on your credit report.

·         Debt settlement – A third party works on your behalf to negotiate with your lenders to cut your balance from 40 to 50%.

·         Home  equity loan – This is 2nd mortgage against your home if you have any equity in the property.  This is normally an interest only loan with the rate floating at prime rate plus some percentage above prime.

·         Do nothing – This is not a good way to fix the problem.

This is not an overnight solution for the consumer.  If you select debt settlement, you will need to understand all the steps involved in the process. However, it is a method  to reclaim your finances and relieve yourselves from the pressure of the mounting debt burden.  

According to debt expert Gerri Detweiler, author of “The Ultimate Credit Handbook”, “It’s a little-know fact that when you fall further and further behind on your payments, creditors would much rather agree to settle your debts than have you file bankruptcy and not get paid at all.”

So call an expert today to find a solid solution for your problem.