Debt Settlement a Solution!

The consumer needed a way out of their current financial situation. The average consumer does not want to totally walk away from their obligations but just needs a method by which to handle their situation. In some cases, the loss of a job will be corrected and the consumer will be able to get back on track. It is during this time, that the consumer is seeking some type of financial relief from their lenders.

One of the ways to get relief is to use a debt settlement program. This program is not an easy fix or an overnight miracle for the consumer, this program can take between 12 to 48 months depending on the size of your debt. Basically the debt settlement program works with the consumer to establish a payment plan by which monies are placed monthly into a “trust/escrow account.” When a less half of the monies owed to a lender on your lowest balance credit card, then the debt settlement expert will begin to negotiate on the consumer’s behalf. The monthly payments into the account are normally much less than the current minimum monthly credit card payments. The debt settlement company is usually able to negotiate a 40 to 50 percent reduction of the consumer’s debt.

Debt Settlement Cost

Today’s consumer’s largest problem is their unsecured credit card debt. This debt can be reduced by considering a debt settlement program. The consumer might consider this program because they want to paid off their credit cards but have been struggling because of possible job loss or reduced salary or a medical emergency.

The consumer is asking themselves how can get out from this burden. If we take a quick review of what it is costing the consumer on their unsecured credit cards. For example:

· Credit Card debt of $30,000
· 3 years of interest at 19% is $17,100
· 5 years of interest at 19% is $28,500

The above interest figures do not calculate any principal reduction on the $30,000 outstanding. So you can see that you are not making any headway on reducing your debt only adding to your financial situation.

If you have faced a financial hardship, then consider using the debt settlement method. Under a debt settlement program, a third party will negotiate with the lenders to reduce you debt possible up 50%. This would mean you would cut your outstanding balances in half and would save up to $17,100 or $28,500 over the next three to five years.

Here is an example of a possible monthly program:

Credit card debt reduced from $30,000 to $15,000
Minimum monthly payments of $700.00 for 24 months*
Minimum monthly payments of $500.00 for 36 months*
*This figures are an estimate only

So isn’t time do something about your financial situation. Debt settlement may not be the right program for everyone. However as a consumer, you need to call an expert today to discuss a program that is right for you and your family.

What is consumer debt?

What is consumer debt? Consumer debt can take many different forms. It is typically understood to be any debt that has to do with the acquisitions of goods that are consumable. A car is a consumable good because they don't last forever. Typically a consumable good will depreciate in value over time. It is very common now for people to buy consumer goods with their credit cards. Any balance that is carried on a credit card is considered to be consumer debt.

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