- Free Consultation
- Debt Relief Options
- About Us
It is common for people to find themselves faced with debt burden because the world’s economy is in recession and the cost of living is rising day by day. The problem is that it may be easy for people to rack up a little debt, but paying it back can prove to be downright difficult. However, no one wants to stay in debt so they usually seek the help of debt relief companies that are constantly advertising these days. These advertisements usually promise to help people in reducing or even eliminating their debt completely. This claim is true for the most part as legitimate companies will aid people with their management services.
In the long run, these companies will help people in saving money by enrolling in their programs rather than dealing with the debt without their expert assistance. However, it is not always easy and straightforward to achieve these results as promised by the television commercials. The first thing that individuals need to keep in mind is that all businesses and organizations, even non-profit ones, tend to collect revenue in order to survive. These companies are no different. While these firms use a debt management program to help people in effectively saving money, they don’t offer their services for free.
When people enroll in such programs, they should expect to have to pay program and administrative fees and even asked to make voluntary contributions as well. Certainly, it is reasonable for taking fees for rendering services. Nonetheless, individuals should consider that they have to pay the cost of the program and also service their outstanding debt at the same time. A common misconception of individuals is that they will be able to fix their debt problems overnight when they choose to seek the services of a reliable debt relief. But, the reality is that it can take even months or years for people to pay off the debt.
Even after enrolling in the program, it can take several weeks for people to see any progress. Individuals will have trouble completing the program if they aren’t committed, patient and disciplined. Individuals will also have to make lifestyle adjustments because it is usually poor financial management that leads people to rack up high credit card bills. If people wish to complete their debt management program, they will have to make some adjustments to their lifestyle and spending. Individuals should be prepared to make a budget, reduce their living expenses and also downgrade their living situation for reducing their monthly expenditure.
Some surprising tactics are used by debt programs for functioning and operating effectively. Such techniques are used by debt settlement groups, which prove to be highly effective in negotiating with the creditors for reducing the balances. However, they might cause a little bit discomfort for the people. They will offer creditors a settlement that will be lower than the amount to be paid, but it will have to be paid immediately. There are also credit counseling agencies that are able to obtain lower interest rates on the behalf of people from their creditors. This is a better option as compared to debt settlement because the latter has a negative impact on one’s credit card report, which means that getting any loans in the future will be difficult while lowering interest rates will provide quicker debt relief.
When you are in debt or have a bad credit score, you really need someone to be upfront and honest with you about what your options are and how you can get back to where you used to be. You will find a lot of websites and advisers out there who aren’t necessarily giving you the best advice and the advice you need to rely on if you are to get out of debt. The honest truth is if you go to a financial adviser and you ask ‘how will debt settlement affect your credit’, the answer you should receive is that it will have a negative impact.
While it may not be the debt settlement itself that affects your credit negatively, but what has happened prior to the negotiated settlement that really will negatively affect your credit. If you already have a bad credit score, then negotiating a settlement with your creditors can only help your cause. In fact, your debt settlement agreement will reflect a zero balance on your credit report once it is reached with your creditor and this could increase your score after each month that you have a zero balance.
However, if you are in a situation where your credit is fine, but you are having a lot of difficulty making your monthly payments, then debt settlement will likely affect your credit score negatively. Why does this happen? Simply put, creditors will not look to settle a high amount of debt if your current accounts are being paid and as a result, this will obviously dampen your credit score. However, when the account in question is not being paid and considered ‘delinquent’, then the creditors will start to consider settling.
For many people, debt settlement is one of the only options available to them in their current situation and when it gets to that point, debt settlement can only be a good thing and will in the long run, help your credit score. However, when your debt situation gets this bad, I’m afraid to say that your credit score will already be suffering.
The fact of the matter is, your credit score will recover, but it is important to understand how the means to get you there may impact your overall score in the meantime. Everyone in debt wants to get back to where they once were – living a normal, debt free life without having to worry about whether you can qualify for a mortgage or car payments. With hard work and an understanding of the system, anyone can use debt settlement to their advantage to improve their credit score and have a healthier financial life.
Are you struggling to pay credit card bills and it has gotten to the point that you are being called several times each day? If you fail to communicate with creditors they assume you are trying to avoid paying your debt and this can lead them to file a lawsuit against you. A big mistake that many people make when they receive notices of being sued is ignore it because this can lead to fines and greater action being taken again them. Debt Settlement is one of the first avenues you should seek long before you ever receive a summons.
If you are sued or receive a summons from creditors and don’t acknowledge it in the given time frame, you will end up with a default judgement on your record. By starting debt negotiation as soon as you begin struggling to pay your credit card debt, you will avoid the creditor ever taking this action against you. Too many people feel ashamed when they are not able to meet their monthly payments and therefore fail to communicate and somehow think ignoring it will make it go away, but this just doesn’t work.
When you’re over your head in credit card bills and even making the minimums has become difficult, begin seeking out debt relief immediately. By waiting you do risk being sued but even if it never gets to that point, the credit card company is adding interest daily. This could mean you’ll end up paying thousands of dollars in late fees and additional interest charges. Seeking a professional that can help you negotiate the debt and nail out a plan of action is your best bet. Using a settlement arrangement you gain the ability to continue paying the creditor but at a lower interest and with the fees knocked off.
You may be tempted at some point to try the Debt Settlement on your own rather than hiring a professional to work with you but this is not a good idea. For one, you are much too emotional to deal with these creditors who have no doubt been calling you many times each day or perhaps they began calling neighbors or your work. This can cause you to lose your cool and you will never get anywhere. A settlement specialist can help you figure out a way to talk to the creditors and to open your eyes to options you may not have thought about.
Of course, if you take action to bring the credit card debt down, you’ll have less to worry about. Sit down and take an inventory of how much money you are bringing in right now and how much your credit card bills are along with your other living expenses. You will probably have a big deficit which is why you have not been making the payments in the first place. At this point is when you need help to get the debt settled so that you are not charged anymore late fees or interest penalties.
Depending on the amount you owe to a credit card company they can and do issue summons if it is a high enough amount. Therefore, you need to always communicate with them when you are not able to pay. If you have too much debt and not enough income, seeking a settlement professional is the best way to get the total owed to a more manageable amount. The sooner you call a professional the best!
Get help now. You are not alone. Start by clicking here.