You may be tearing your hair out every time you sit down to pay bills. If you are like many Americans, you are deeply in debt and are beginning to feel hopeless about digging your way out of the financial mire on your own. Take heart, with dedication and commitment and a little bit of assistance, you too can get out of debt.
Debt Negotiation
For many people, the hardest part to get out of debt is admitting that they have a problem and they need help. Debt negotiation is the process of working out an agreement with your creditors to find a solution that you can reasonably repay. Very often, our clients tell us that they have reached a roadblock when they have talked directly to their creditors and tried to get help from on them on their own. Unfortunately, many creditors do not like to negotiate with account holders directly and may only offer temporary hardship programs, which do not really offer any tangible relief for your credit problems.
Our trained and experienced credit counselors work with creditors every day. We are able to get access to decision-makers who can make real agreements and change the landscape of your financial woes. On average, we are able to help our clients reduce their qualified debts by up to 50 percent, saving them a significant amount of money in the long run.
Negotiated debt settlements are usually a combination of solutions for our clients. By working on your behalf, we are often able to realize a reduction in the amount of interest you are charged on your account or able to negotiate for it to be eliminated. Additionally, we are often able to reach agreements with creditors that include elimination of accumulated fees and lump sum payments.
Debt Consolidation
Debt consolidation is another step you can take, and it requires commitment and dedication on your part. This is where your real work begins. With a lowered interest rate, you can set up an account for you to make regularly scheduled monthly payments for all of your credit accounts. This single payment combines all of your qualified accounts and usually helps make your monthly budget much easier to manage. You have to manage your finances by making monthly payments to your creditors on time. This is not the preferred get out of debt plan because it does not work on the principal balance, only the interest rate.
Impact on Your Credit Rate
If you are already struggling with making all of your monthly payments, your credit score has probably already taken a hit. The good thing about using our credit services is that you likely will soon begin to see an improvement in your credit scores. For many people, difficult financial problems translate into late or missed payments, which are quickly reflected on their credit report.
On average, our clients are able to complete their entire debt relief program within 24 to 48 months. In the process, they become debt free by the end and their credit has been repaired shortly thereafter. Contrast this with filing bankruptcy, which can damage your credit for up to a decade and can impact your ability to gain credit, raise your insurance rates and prevent you from getting a job.
Qualified Debts
Not all debts qualify for debt relief programs. Most unsecured personal and business debts qualify for debt settlement and consolidation. By law, debt settlement can only be applied to the following types of debts:
Payday Loans
Cash Advance Loans
Credit Cards
Medical Bills
Collection Accounts
Medical Bills
Business Debts
Reposessions
By law, secured loans do not qualify for debt settlement agreements. Examples of debts not allowed for these programs include:
IRS Debts
Back Taxes (State or Federal)
Student Loans
Government Loans of Any Type
Utility Bills
Home Loans
Mortgages
Lawsuits
Auto Loans
Choosing a Debt Relief Service Company
There are literally thousands of debt relief companies in business today. With the downturn in the economy, the service industry for individuals has expanded tremendously. Before choosing a credit counseling organization, find out about their industry affiliations and if they belong to any reputable debt relief associations. We belong to the American Fair Credit Council and the International Association of Debt Arbitrators.
Also, avoid companies that demand up-front fees for services. This is illegal according to Federal Trade Commission regulations. We charge no up-front fees and you owe us payment for our services only after we can demonstrate results from our efforts on your behalf.
If you are looking for debt solutions that work and are committed tobeing able to get out of debt, contact us or fill out the form for a free debt analysis and let us work on your behalf.
