Tuesday, January 06, 2009  
 

Life Events can be expected or unexpected, joyful or stressful.  But the expenses mount up fast !
weddingFirst baby

familycollege expenses

new homemedical expenses

vacationspaying the bills

Please be advised that before you enter another debt settlement program, check with the BBB, and also see if the company is licensed, bonded and insured.

Before making this important decision, please contact one of our highly trained debt specialists who can explain our program. Our program will get you out of debt within a 15-36 month time period while settling 40-60%* of your debt. 

Request a confidential, free consultation to see if your situation will benefit from debt negotiation and settlement.

*Settlement estimates of 40 - 60% are examples of past performance of settled accounts. Individual results may vary and are dependant on successful completion of program and ability to save funds.

 

What are your options?

Choosing a good debt negotiation and settlement program is the best solution for most people, with debt negotiated down to 40-60%* of current credit card balance and paid off in just 15-36 months, depending on cash availability.   Based on the other options shown here, we think you'll agree. 


1. Hope for the best and do nothing.

  • Ignoring the issue and hoping it will go away just delays the inevitable and makes the end result worse.Interest rates usually average over 18% and creditors can raise rates at any time, especially if they see you’re only making monthly payments.
  • You'll pay nearly 50% of your original balance in interest alone over the first 3 years. You are not making a dent on your principal balance.
  • If your rates are 25% or higher, it is physically impossible to pay off your debt by making minimum payments.

  • You will take 20 to 40 years before becoming debt free with little room for obtaining additional credit. If you've already stopped making payments, you are destroying your credit and what’s worse, you're not eliminating any of your debt in the process.

2. File Bankruptcy

  • This represents a severe negative impact on your credit rating for 7-10 years. bankruptcy trades one type of stress and worry for another.
  • Can cost up to $2,500 just to file.
  • May have a negative impact on your employment status.
  • In a Chapter 13, you may end up paying 75 - 100% of your debts back anyway.
  • Will eliminate all of your unsecured debt in a Chapter 7, but it is much more difficult to qualify for under the current bankruptcy laws.
  • May result in higher interest rates on future loans.
  • Carries a negative stigma, mental stress, and other burdens.
  • Truly a 'last resort'. Bankruptcy should be avoided if at all possible.

  • Chapter 13 completion rates average only 32%.

3. Use Consumer Credit Counseling  

  • Worried that Credit Counseling will take too long and cost too muchThese companies are generally funded by the credit card companies themselves.
  • They are just another form of 'collection agency' to take your money.
  • They will consolidate your bills into one monthly payment and lower interest rates.
  • Your balance will often take 3-7 years to pay down.
  • Pay over 25% of principal balance in interest fees over the first three years.
  • You'll end up paying back your full balance plus interest.
  • These companies still charge a monthly 'donation', typically $20-$50
  • You’ll be paying fees charged by the average credit counseling program greater than those of our debt settlement program.
  • Negative marks remain on your credit report for 7 years.
  • This is also viewed by lending institutions as Chapter 13 Bankruptcy.

  • The average completion rate of consumer credit counseling is approximately 26%.

 4. Consolidation loans

  • Trading unsecured debt for secured debt - you could lose your collateralYou’ll need to qualify first. 
  • Requires ownership of real estate property or a pledge of collateral. 
  • Home Equity loan reduces future equity available in your property. 
  • Eliminates your credit card balances.
  • Missing payments could cause you to lose your home or the collateral you pledged. 
  • A transaction fee is usually required upon closing or is built into the interest rates. 
  • Payback can be 10-20 years depending on debt balance and ability to pay back loan. 
  • You will pay back the full amount of credit card balances. 
  • Bottom line: You are exchanging your unsecured debts for a secured debt - a big risk in today’s market.

 5.  Choose a good debt negotiation and settlement program

  • Key to Your Success!Rapidly becoming the top method for consumers to get rid of problem debt.
  • Negotiations based on your principal balance, irrespective of the interest and finance charges your creditors are trying to add on to your account.
  • Independent companies not affiliated with your creditors and are working for your best interests.
  • Charges a fee to get started but offers multitude of financing options.
  • Client's debt is paid off in 15- 36 months depending on cash availability.
  • Will receive an 'open delinquency' on your credit until debts are settled.
  • Affects credit much like debt consolidation firms except the settlement is ultimately paid by the consumer directly to the creditor, unlike with a consolidation company.
  • Lowers your debt to income ratio more quickly than Consumer Credit Counseling, which represents a significant factor in your ability to quality for a loan.

  • You may typically end up paying only 40-60%* of your current credit card balance.

    For an example of what it would cost with each option, see the debt estimator page.
Home  |  Debt Estimator  |  Compare Your Options  |  Free Consultation Request   |  Other Debt information  |   About Us  |  Contact Us  |  Site Map
Copyright 2008 by americaschoicedebtsettlement.com  | Terms Of Use | Privacy Statement