When you have a difficult situation with your debt, it is extremely important that you DO something about it now!
You know how much stress you have from the debt.
You know how it has effected your life, your relationships with friends and family, your overall well being. Sleepless nights, upsetting phone calls from your creditors trying to get their payment, all of it can be difficult to live with.
The truth is, you need to do something about it now. The longer you wait, the more potential problems will be created.
Doing something about it really demands action, not thoughts!
If you are ready to take care of this problem and explore your options, you need to get into action! Take that step!
Honestly, when you take that step, you will begin to handle the problem. The right option is there, you can actually get out of this problem, get rid of the stress and all the other things that make it difficult.
We might be able to help you! If not us, then we can direct you to the right solution. Not everyone is qualified to do Debt Settlement. But, rather than just leave you alone, we will help direct you to what could be the right solution for you. Exploring that solution is up to you, but it’s good to know that one exists.
5 Debt Solutions
It is vital that you understand what your options are to getting out of debt. This is you becoming educated on the routes out of debt.
Here are your options:
1) MAKE MINIMUM PAYMENTS
This is just paying your creditors each month the minimum amount you owe them. There’s a new law that makes your credit card companies put on your monthly statement how much you would end up paying if you were to just make minimum payments. Often, this is 3 to 4 times the amount you originally borrowed and takes between 20 and 30 years to pay off.
If you can only make minimum payments to your creditors, you should continue to explore your options by reading further. There may be a better way out!
2) DO IT YOURSELF
This option is to try to take on your creditors yourself. Lets say you are having trouble making your minimum monthly payments and you want to work it out with your creditors to get a break so you can regroup.
You can call them and talk to them. They can help for about 6 months by lowering your payments each month. Then, the whole problem reappears as the mininum payments go back up. It’s a gamble that you will be able to recover your income in the next 6 months, but if you feel you can win, this might be a way to go. If not, you are just wasting your time and money.
One thing to say about Doing It Yourself, you may have your emotions entering into the problem, meaning, you can get upset with the creditors as you try to make a deal with them. This can cloud your ability to see if you really do have a deal. This is why people get Lawyers for legal situations – they need someone that can work for you and is not emotionally involved in the problem.
3) USE THE NON-PROFIT CONSUMER CREDIT COUNSELING SERVICES
These services are good if you don’t have that much debt – $8,000 to about $15,000. These non-profit companies work with the banks to lower the interest rates that you pay. Traditionally, you will end up paying 9 to 10% instead of what you are currently paying.
You give the non-profit company a single check that they distribute to your creditors, along with a check that pays your fees to the non-profit company.
While you pay your monthly fee of, say, $35 or $40, the non-profit company actually gets money back from your banks and creditors when they make your payment. The return is around 8% or higher of what you pay that month. For example, if you give the non-profit company $600 to distribute to your creditors that month, the non-profit company will receive back 8% from your creditors, or $48.
So, for the service, you pay $35 and for paying your creditors for you, the non-profit company would get back $48 (based on $600).
The question becomes this, who does the non-profit company work for, you or the Banks and Credit Card Companies? Well, where do they get most of their money? That’ll be the answer!
To better understand this route, you should consult an attorney.
5) DEBT SETTLEMENT
This is having your debt negotiated down and you now paying the new balance. For example, you owe $10,000 and it’s negotiated down to $4000. That new amount becomes the amount you pay.
There are several things to understand about Debt Negotiation:
A. How do you pay the new negotiated bill?
B. What are the consequences of doing Debt Settlement (Negotiation, same thing)?
C. How does Debt Settlement impact your credit score?
D. Could you be sued and if so, what are the chances and consequences of this?
I would suggest getting a FREE consultation so that your particular situation can be looked over by a professional. It may be that Debt Settlement is not the right route for you. If so, our professionals will help direct you so that you can get your financial freedom.