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.

Living Debt Free

Credit card debt is almost a way of life in today's economical time's. It's so very easy to take out our credit cards and purchase everything from groceries to our utility bills on plastic. Some of the time people can pay these off the next month and they do not carry a balance moving forward . However, for others - this is just a way of life.

Which leads us to the question of what if the unthinkable happens? I've been living paycheck to paycheck and living beyond my means. I've been laid off and I have no reserves or back up plans. Of course this will lead to a degree of worry, anxiety, fear and perhaps to denial of the severity of your financial situation. You have become obsessed with your money problems of missed payments, bill collectors calling and possible litigation.

Needless to say, it's common for the consumer to avoid the collection calls which further adds fuel to the fire because the collectors just become more aggressive in their tactics. You might even experience depression but you need to get back to reality and deal with the situation head on!!!

In visiting Dave Ramsey's website I came upon this comment...."Laziness is a character flaw. You need to be willing to work and sacrifice in order to fix the situations that you created with your own irresponsibility. If you are not willing, then you cannot be helped." I agree with this statement 100 percent.

The consumer needs to toll up his sleeves and get ready to work hard. You need to rip up the credit cards and start by being honest with yourself and your creditors. It's time to get proactive and deal with your situation now.

Debt Settlement is an option

Do you have more than $5000 in debt on more than 3 credit cards? Understanding how you got into this problem and finding ways to resolve the problem is the first step in giving you - your start to financial freedom.

The credit cards were flexible and easy to use for your everyday expenses. However, over the course of time your rates and fess started to gradually increase. Needless to say , due to circumstances beyond your control you find yourself drowning in debt.

I read a quote by Pat Robertson and his advice was this " The law of compound interest coupled with the law of use will lead to amazing things. Meaning if you save it and compound it - sooner or later you will come out with something better" I happen to agree with his observations and comment.

You first want to consider your options carefully to dig yourself out of debt. A debt settlement company is a variable option. An experienced debt settlement company has the resources and the ability to negotiate on your behalf. The consumer needs to faithfully follow the plan that the settlement company has placed into action. The financial plan may take as little as 12 months or more than 48 months on your outstanding unsecured debt.

It may be tough in the beginning to make those sacrifices but once you follow and complete the debt settlement program you can begin your journey to financial independence and starting letting your money work for you.

Getting out of Debt

As the new school year begins it is time for the consumer's to take hold of their unsecured debt. This debt will only grow over the next several months as the holidays approach and will continue to add pressure to the family situation.

So how does the consumer stop this pressure and get out of debt? One of the ways to put the brakes on this situation is to consider a debt settlement program. A debt settlement program is designed to reduce the overall unsecured debt of the consumer.

The program establishes a "trust account" into which monthly payments are make until there is enough money to begin to negotiate with the lender. In most cases, the debt settlement company can reduce your debt up to 50% or more. This may be a better alternative than to file bankruptcy or doing nothing about the situation. If you are considering bankruptcy please consult with an attorney before taking that step or at least call a debt settlement company to understand your option.

The debt settlement program will have some possible drawbacks for the consumer which need to be considered. The consumer's credit report will take a hit in the beginning of this process however the consumer's credit may already been hurt by:

· Too high of outstanding balances
· Late Payments
· Too much credit
· Tax liens, judgment's, repossessions, etc

If the consumer does consider the debt settlement option. They then had started the journey of getting out of debt. One of the positives to possible come out of this unfortunate situation is the consumer is now motivated to learn how to handle their expenses and money in the future.
Other consideration that the unpaid balance maybe considered income and is therefore taxable under your normal tax rate.

There is no easy fix to large amounts of unsecured debt. But the consumer needs to face the situation head-on a deal with it in a responsible manner. So call a debt settlement company today to discuss the complete ins and outs of the program. Give you and your family a new peace of mind and start anew.

I want to be debt free

I want to be debt free. If you want to be debt free, you will need some discipline. Stop spending money, have more coming in than going out. Sounds simple right? Do you feel a sense of entitlement that you should have nice things? If you do, you may be in trouble. Bad habits are bad habits, the sooner you can recognize this, the sooner you can gain healthy spending habits. Having a lot of stuff wont make you happy. In fact spending too much money can actually make you miserable. Once you are in debt, the mechanism of worry and fear will probably kick in. Now your life will be about working to pay for all your new stuff. If you are lucky, mommy and daddy can bail you out. If so you will probably end up in the same place again, in debt and broke.

Attorney Debt Negotiation

debt reduction

Feeling like you are starting to get piled on by your mounting bills? You may want to look at where the money is going. It may not be fun to get it debt but doing nothing about it can make a problem even worse. You may not want to hear this but it may be time to start living by your needs and not your wants. That's right, do you really need the premium channels on your cable tv? I don't think so, I don't know anyone that died without having cable tv. Instead of your Starbucks runs, you can make coffee at home. Don't go to the movies, check out movies from the library, they are free. Do you really need a cellphone? There was a time when people actually didn't have a phone with them all the time. It wont kill you. What will kill you is being in debt. Do yourself a favor and get started on something now. Anything would be good.


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Debt Consolidation As An Alternative To Bankruptcy

There it is again, the phone. You know that it is a bill collector, you just know it. It is dinner and they always call during dinner. You are at your wits end. You think that your next step is filing for Bankruptcy. Before you do, consider debt consolidation.

Get me out of Debt

An Overview of Student Loan Debt Consolidation

Student Loan Debt Consolidation is one method for reducing your monthly debt which could help you qualify for a mortgage, or a refinance. Debt consolidation will also reduce the number of monthly payments you have to remember to pay each month.

Get me out of Debt

Consumer Credit Counseling for Good Credit, Debt Settlement for Bad Credit

With many alternatives for getting out of debt, you need to do your homework before you choose a method. Typically, consumer credit counseling or CCCS is a great alternative for someone with great credit. But, debt negotiation is probably better suited for paying off bad credit accounts.

I need help with my debt

I don't want to file bankruptcy, what else can I do? Debt Negotiation

It has gotten harder to file bankruptcy. Given the changes to the bankruptcy laws in 2005, it is more difficult to file and discharge a bankruptcy. Debt negotiation is a possible alternative to explore instead of bankruptcy.

Alternatives to Bankruptcy

How do debt negotiation companies make money?

The dumb answer is debt negotiation companies make money by settling debts. A good firm will make a percentage of what they save you rather than a flat fee. The savings rate percentage can be anywhere from 15-25 percent of what they save you. I like that they have an incentive like this. The more they save you, the more money they make. This way you know that they will do their best to negotiate a good deal for you. Most firms charge you an up front fee which can be paid over a period of a few months. Most companies realize that you are having a hardship, this is the business that they are in. Typically you can be in a program up to 36 months that will have you totally out of debt.

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Buy Now Pay and Pay Later

Credit Card companies are not your friend. They are in business to make money off of you. If you can't pay cash don't use them. Emergencies can be the exception. Buying expensive cars that you have to devote a huge amount of your time to pay back doesn't make much sense. Do you really need it or do you want it? I would rather be debt free and not have to go to bed every night and worry about how I can pay for all of the things that I owe. As a former loan officer I don't know how many people that I met with that could not buy a home because they were driving big expensive cars. It just is not worth it to drive a fancy BMW and not own a home.

It's sad but I remember talking to one couple that made less than $4000 a month and had a truck payment of nearly $1000. This didn't take into account gas and insurance. They couldn't figure out why they were broke every month. I couldn't figure out why they thought they could buy a home when they were barely making it as it was. I drive a 10 year old car with 95000 miles on it. It's paid for and runs. I'm happy. New cars are fun when you drive them off the lot, the first payment letter will cure you of that.

Alternatives to bankruptcy

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