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.
Showing posts with label living debt free. Show all posts
Showing posts with label living debt free. Show all posts
Thursday, October 15, 2009
Tuesday, October 13, 2009
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.
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.
Wednesday, September 30, 2009
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.
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.
Wednesday, September 23, 2009
Is Debt Settlement an Alternative for you
Today's consumer is facing overwhelming unsecured credit card debt. This debt continues to mount each month even if the consumer has started to tighten their financial belt. In some cases, it may be too little too late.
Debt settlement may be an alternative to trying to work your way out of debt yourself. Depending on the amount of you debt, you could reduce your debt in half between 12 and 48 months. This figure considers the amount of your debt, the number of credit cards and the amount the consumer is willing to put into an "trust/escrow" account each month. This method does have some drawbacks dealing with credit score, available to borrow and possible taxes on unpaid balances. Under a debt settlement program the consumer needs to be willing and committed to working themselves out of debt.
A recent article on MSNBC.com, tells how one family eliminated $106,000 in outstanding debt over a five (5) year period of time. This family used a consumer redit counseling service. The article indicated the counseling service was taking approximately $2,000 from the couple to distribute to their credits. This dollar amount was about half of the consumer's monthly take-home pay. This caused the consumer to take on a second job.
This is an example of paying off the entire balance including interest and all fees. Based upon information provided, this means the couple paid approximately $120,000 over five years. ($2,000 @ month times 60 months = $120,000).
This method may have been the best solution for this couple. You want to congratulate this couple on taking on this task and paying off their bills in full. However, if you compare this situation verse debt settlement. The debt settlement company may have been able to reduce the couple's debt in half from $106,000 to $60,000 and may have been able to do it in less time.
Every consumer needs to decide for themselves which is the best approach for them and their family. However debt settlement should be investigated as an alternative to debt counseling. Even with debt settlement a consumer should learn to control their spending and annually review their financial situation. Some of the debt incurred may have been caused by financial hardship, loss of a job or medical emergency.
Debt settlement may be an alternative to trying to work your way out of debt yourself. Depending on the amount of you debt, you could reduce your debt in half between 12 and 48 months. This figure considers the amount of your debt, the number of credit cards and the amount the consumer is willing to put into an "trust/escrow" account each month. This method does have some drawbacks dealing with credit score, available to borrow and possible taxes on unpaid balances. Under a debt settlement program the consumer needs to be willing and committed to working themselves out of debt.
A recent article on MSNBC.com, tells how one family eliminated $106,000 in outstanding debt over a five (5) year period of time. This family used a consumer redit counseling service. The article indicated the counseling service was taking approximately $2,000 from the couple to distribute to their credits. This dollar amount was about half of the consumer's monthly take-home pay. This caused the consumer to take on a second job.
This is an example of paying off the entire balance including interest and all fees. Based upon information provided, this means the couple paid approximately $120,000 over five years. ($2,000 @ month times 60 months = $120,000).
This method may have been the best solution for this couple. You want to congratulate this couple on taking on this task and paying off their bills in full. However, if you compare this situation verse debt settlement. The debt settlement company may have been able to reduce the couple's debt in half from $106,000 to $60,000 and may have been able to do it in less time.
Every consumer needs to decide for themselves which is the best approach for them and their family. However debt settlement should be investigated as an alternative to debt counseling. Even with debt settlement a consumer should learn to control their spending and annually review their financial situation. Some of the debt incurred may have been caused by financial hardship, loss of a job or medical emergency.
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