Today’s consumers are overwhelmed with unsecured credit card debt.  They are unable to maintain making the monthly minimum payments on their credit cards.  The reason why the consumer is seeking some type of debt relief is because they have incurred a recent financial hardship.  This hardship has taken the form of either losing their job, reduced hours, divorce, death or a medical emergency.

The majority of consumers want to payoff their obligation either monthly or in full. However they are having a hard time of making ends meet in today economic climate.  The consumer is on an emotional roller coaster and is seeking ways to make ends meet. 

One of the options that consumers are considering is using a debt settlement company.  A debt settlement company is a third party which will negotiate with the lenders on behalf of the consumer.  In most cases, a debt settlement company is able to reduce the consumer’s outstanding balances by up to 40% to 50%.  So considering that a consumer may have more than $10,000 in unsecured credit cards this debt might be cut in half.  The savings to the consumer is monthly interest on their cards and the debt reduced from $10,000 to $5,000.  

The consumer is asking, “Why would a lender accept half of the obligation due to them.”  The answer is simple. If the consumer files for bankruptcy, historically there is no money available for the unsecured lenders. In other words, the lenders are willing to take something rather than receive nothing on the obligation.  If a consumer does file bankruptcy then the lender has to write-off as a bad debt this obligation which affects their bottom line.  

Using a debt settlement program is not a quick fix or an overnight solution to the consumer’s situation. However what it does is allow the consumer to save monies into a “trust/escrow” account over a period of time.  Normally, this amount is less than what their combined monthly minimum payments are on the debt.  The debt settlement company begins negotiation with the lender when at least half the monies are saved against the lowest outstanding debt.  An example is if you owe $30,000 on five credit cards and the lowest balance is $5,000, when you have approximately $2,500 in the “trust/escrow” account the company will start to settle with the lender.  

Yes, there are drawbacks to using any type of program.  However the benefits of using a debt settlement company out weight those drawbacks.  Remember if you file for bankruptcy, it will be harder in the future to receive any loans while if the consumer makes the effort to repay their debt.  The ability to borrow in the future is brighter.  Because the consumer did not walk way from their obligations the lenders are more willing to lend.  

Therefore, call your debt settlement expert today to discuss how they can help you.

A debt settlement company is a method to use by the consumer to get out of debt.  This debt is typically the consumer’s unsecured credit cards and medical bills. Debt settlement is an alternative approach to the other methods that maybe available to the consumer.  

The other methods which the consumer may consider are: 

• Trying to manage their current debt themselves
• Debt consolidation loan
• Home Equity Loan
• Credit consulting
• Bankruptcy
• Debt Settlement 

Basically, if the consumer had enough cash flow to meet their current financial obligations they would not necessarily need the above programs. However, due to certain financial hardships, the consumer is not longer able to meet their monthly obligations.  This hardship has been caused by loss of job, medical emergency or death in the family. 

No consumer wants to file bankruptcy since that is the last course of action for the individual and their families.  If you do consider bankruptcy, then consult an attorney for all the facts about this process. 

Debt settlement is an easier way to resolve the consumer’s obligations.  It is a method by which the unsecured debt is negotiated by a third party with the various credit card lenders. In most cases, the lenders are willing to negotiate a settlement of approximately 50% of what you owe on the obligations.  This is not a quick fix or an overnight process in reducing the consumer debt.  A debt settlement program can take between 12 to 48 months depending on the number of credit cards and the dollar amount outstanding.  

If the consumer is willing to work the program, then debt settlement is a way to proceed to reduce their debt.  The consumer is not only trying to negotiate reducing their debt but they are always reducing the amount of their monthly expenses.  An example: 

• If you have $30,000 in debt, your minimum monthly payment is approximately, $2,500 a month on 4 credit cards
• Using a debt settlement program at $750 a month, it would take approximately 24 months to paid off the negotiate debt at 50% 

So why not call today, your debt settlement expert to discuss your options with us.

As a consumer, you owe it to yourself and your family to get out of debt. This can be accomplished through a variety of plans and programs.  However, every consumer needs to explore their options before selecting a plan or program.  Here is a list of ways to get out of debt:

• Debt Consolidation
• Bankruptcy either Chapter 7 or 11
• Debt Settlement
• Do nothing approach

Before selecting a plan, the consumer needs to understand how and why they are in this current financial situation. This debt was caused by:

• Unable to payoff full balances on credit cards
• Making minimum monthly payments , charging more expenses which increased limits along with the growing interest payments
• Used credit cards to purchase goods and services, ie, food, gas, medical bills,
• Take on more credit cards to payoff old credit cards, ie. balance transfers are lower interest rates

A debt settlement program is a better alternative to the above referenced programs.  The reason for using a debt settlement company is they will negotiate on your behalf.  They will deal with the credit card companies and work to achieve a settlement of up to half of your current balance.  This is not any easy program for the consumer. It requires financial discipline and an understanding of the program.  It may take anywhere from 12 to 48 months to be complete free of the consumer debt burden under a structured debt settlement program.

Here are a few items which you will need to address when entering into a debt settlement program: 1) be aware that your credit score will take a hit but it probably already is low due to high balances, minimum monthly payments or late payments, 2) as debt is be negotiated your credit score can begin to rise, and 3) there maybe tax ramifications upon final negotiations with the credit card company.

Debt settlement companies work because creditors often except settlements because if they don’t the consumer most likely will file for bankruptcy.  In most cases, this eliminates the any funds to the unsecured creditors.

Contact us today to discuss the in’s and out’s of a debt settlement program that is right for you and your family.

In today’s economical climate, there are a lot of people who are looking for debt relief on their credit card debt. So, where do you start? In order to successfully tackle your financial situation you need to get organized and understand your situation.

There are two types of debt secured and unsecured. In a secured loan, the debtors personal assets are guaranteed as collateral for the loan. In some cases, if the debtor is unable to repay the loan on time, then the lending agency can assume the assets as collateral.

 Credit card debt is considered “unsecured ” debt. In unsecured debt there is no collateral to collect if you default therefore the credit card company has the right to sharply increase your interest rate which can make it nearly impossible to payoff particularly if you are making the monthly minimum payments.

Debt settlement is a process which debtors can turn to. The debt settlement company negotiates on your behalf with creditors to reduce the overall debts in exchange for an agreement upon settlement. The consumer makes payments on a monthly basis and over a period of time enough funds are built up allowing the settlement negotiations to begin. The debt settlement companies typically have built up relationships with the credit card companies and can reach an agreement rather quickly.

Living in debt can be very scary and sometimes it just takes patience and doing your homework and understanding your own financial situation. Once you make the decision – debt settlement can put you on the path of living debt free.

Start today by calling 1.866.963.9988

“Never let life’s hardships disturb you..no one can avoid problems, not even saints or sages”  Nichiren Dasihonen

The above quote rings true for the consumer who is struggling with their unsecured credit card debt. The consumer no longer can avoid the problem, the unwanted telephone collection calls and letters from the credit card companies or collection companies. The time is now for the consumer to take action.

Once the consumer decides to take that first step they will start to feel better about their situation. The consumer needs to know that they are not alone when facing issues in regard to mounting unsecured credit card debt.

One of the fastest ways to find debt relief is using the debt settlement option program. When compared against other options, bankruptcy, debt counseling or do nothing approach. 

A  good debt settlement plan combines all the outstanding unsecured credit card debt and establishes a budget for monthly savings which is in the best interest of the consumer. This plan establishes the timeline for the exact amount of the monthly savings which might be less than the combined monthly minimum payments on all debt. Then estimates how long it will take before negotiations begin with the credit card companies. The key to how long is based upon monthly savings and outstanding balances. This process can take been 12 to 48 months. The consumer needs to remember that if their financial situation changes, they can opted out early and payoff their debt themselves.

As with any debt settlement program there are drawbacks. These negative issues might include, the forgiven balance is considered taxable income by the IRS and the settlement will be noted on your credit report.

A historical look at a debt settlement program is nothing new for the consumer or for the lenders in regard to unsecured debt.  Some type of settlement practice has been in place for over 100 years.  The plan may not have been called debt settlement it might have been know as debt relief or debt forgiveness depending on the amount of the settlement.

Debt settlement became an option for some consumer’s during the last recession in late 1980’s and early 1980’s. The only form of relief for a consumer was bankruptcy, debt counseling or debt consolidation. Debt settlement was a little known way for consumer’s to find a way out from unsecured credit card debt. 

One question that every consumer asks is, why would a credit card company, be willing to work with a debt settlement company instead of with me the consumer directly?  The answer to that question is simply. The debt settlement company has a better understanding of the consumer laws and has experience dealing with the credit card companies.

If you call your credit card company to work out a deal, they typical will work out a payment plan for the whole outstanding balance.  Therefore, the consumer is not gaining any ground is trying to get out of debt. Plus the consumer might simply walk away from the debt altogether, by filing bankruptcy then the credit card companies received almost nothing on the outstanding debt.  This  hurts the financial bottom line of the credit card companies.  Therefore, they are more willing to work with a debt settlement company and receive at least 50% or less on the outstanding debt than maybe nothing at all from the consumer. 

The phrase, “a bird in hand is better than nothing” can apply to why credit card companies are willing to negotiate with a debt settlement company. It’s a process which requires discipline by the consumer, but it is a better way to handle your outstanding debts, without having to file bankruptcy or doing nothing about your debt. 

So take at first step and talk to an experience debt settlement person.

There are various kinds of options that consumers are given to get rid of their debts.  In today’s economy you are probably reeling from the weight of your credit card bills.  In your credit  card debt payments have spiraled to 25 percent to 50 percent of your take home pay, you probably need some help with getting that problem corrected.  As painful as the situation is – you can fix your financial situation with Debt Settlement.

The process of Debt Settlement can be completed in a matter of months, depending on your ability to  pay the reduced settlement balances to your creditors.  You see, debt settlement consist of long term payment agreements which can last from 12 -48 months.  If you are considering a Chapter 13 Bankruptcy that involves a long term repayment schedule from 5-7 years.  If your anxious to put your debt behind you sooner rather than later, you’ll be pleased with your decision to choose debt settlement to resolve your current financial situation.

The debt settlement company negotiates on the borrowers’ behalf with creditors to reduce the overall debts in exchanged for an agreement upon regular payments.  The debt settlement companies typically have relationships during their normal business practices with the credit card companies and can come to a settlement agreement quickly.

Making the decision to commit to a debt settlement program can be difficult but the majority of individuals who choose debt settlement find that they feel a great sense of relief once the process begins and an even greater sense of relief once their credit cards have been paid in full.

As a consumer, you need to know the definitions and differences between debt settlement and debt consolidation.

Debt consolidation is described as taking out a loan to pay off other unsecured financial obligations. However, a consolidation loan normally involves securing this new loan against an asset which serves as collateral for this obligation. When the economic climate was better, a consumer would go to their bank and apply for a home equity loan as a method of consolidating debt.  A home equity loan was cheaper than the combined interest rates on the consumers outstanding unsecured credit card debt. The interest rate was normally a floating rate associated with prime rate plus a specific percentage above prime. But this does not solve the problem for the consumer, since they only added new debt to their current situation and repeated the cycle of using their credit cards.  So in fact their debt never when away it only grew. 

So with todays economic environment, the consumer’s primary asset is their home.  But as we know, the equity positions in the home’s are not holding their value. The majority of banks in today’s market are not lending unsecured monies to consumers for consolidation loans with some type of collateral.

A debt settlement program, is a process to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full. The process involves you putting aside a certain amount of money each month to accumulate monies for the negotiations to begin on your behalf.   By using a debt settlement program, in some cases the outstanding debt by can be reduced by more than 50%.

Debt settlement when compared to debt consolidation is a better option.  Because as a consumer you are taking charge of your repayment plan.  You are reducing debt not adding more debt using a debt settlement company.