Your Choices
When facing financial hardship, you have a few different options to choose from. Here are some of your choices:
Debt Settlement - Debt Settlement is when we take your unsecured debt and significantly reduce your principle balance. It is an aggressive approach to debt reduction for individuals facing financial hardship. You are given one interest-free monthly payment, which is required for you to save up every month. This payment is your guide to a successful program.
Debt Management - Debt Management works with your creditors to lower your interest rates, so that more of your payment goes toward your principle. Your payment is approximately the same or slightly higher than what you are already paying, however your term is reduced to approximately 42 –60 months.
Home Equity Loan / Debt Consolidation Loan - This may seem great for some homeowners with substantial equity in their home, good credit and a low debt-to-income ratio, however, keep in mind that you are transferring unsecured debt into secured debt and now risking your home as collateral if you can't make your payments.
Do Nothing (pay forever plan) - This is a creditor’s favorite! By making only the minimum payment on your cards, the problem is that it takes an average 6 years to pay off every $3000 in debt (click the link below to find out the true cost of making minimum payments)
http://bankrate.com/brm/calc/MinPayment.asp
Bankruptcy - Bankruptcy was designed to be a consumer's last resort and has a devastating negative effect on your credit that could last up to 10 years. Keep in mind that bankruptcy is the worst possible scenario for your credit and also public information.
Here is a chart of your Debt Relief choices
(balance $25,000 in debt)
| |
|
Credit Counseling |
Do Nothing |
DEBT SETTLEMENT |
Total Unsecured Debt |
$25,000 |
$25,000 |
$25,000 |
$25,000 |
|
60 |
60 |
473 |
38 |
Interest Rate |
11.0% |
Variable |
18% |
None |
Extra
Interest Paid |
$7,613 |
$17,750 |
$37,115 |
None |
Monthly
Payment |
$543 |
$712 |
$625 |
$458 |
| |
|
|
|
|
Total Amount Paid |
|
|
$62,115 |
$17,415 |
The total savings in this debt settlement example is 50% of the original balance. We would structure this type of situation to be paid off in 38 months or less. The total monthly interest free amount you would have to set aside to have a successful program would be $458.29, which is substantially lower than all other options.
It takes the average person approximately 473 months to be rid of your debt by making minimum payments. In that time, you will pay approximately $37,115 in interest + your original principal balance of $25,000. This is a total of over 39 years and paying $62,115. (These figures are based off of an average credit card interest rate of 18% and a 2.5% minimum payment)
Click Here to see how many years and how much you would pay if you were to continuously make the minimum payments with your creditors..........http://bankrate.com/brm/search/story-credit-cards.asp
If you are patient and committed to the plan, the Process is Simple!
Please call
(800) 369-8049 if you are ready to be debt free!
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