Five Options to Get Out of Debt.
posted by Mike Clark on 7/29/2008 3:11:08 PM
Debt is rapidly becoming one of the hot buttons in social conversation. Everyone has it and no one wants to address it. The ostrich game that has been played for several years is coming unglued as there is simply not enough space for everyone in debt to bury their head in the sand. There are options available, ways to get out of debt, and it is imperative that consumers are armed with information to make the right choices.
When thinking about options the thing that springs to mind for most consumers is debt consolidation, but that is a far too generalized term and in most cases not available to consumers who are already in trouble with debt. Bankruptcy is another term that comes to mind, but is and always should be a last resort for debt relief. Let me introduce another option that is often overlooked by consumers, debt settlement.
Debt settlement is a process of negotiating account balances with creditors until an agreed upon amount is reached, paid, and the account is then considered "settled in full". In theory debts have been settled by negotiation for centuries. Some economists like to call it the barter system, but I prefer calling it what it is, negotiation, but back to the subject at hand.
Consumers who are deep in debt and unable to meet their financial obligations and are in need of debt relief have a few options.
1. Continue to pay the minimums until your balances reach zero. This could take decades and the cost can easily be 3 times the amount that was borrowed.
2. Get a debt consolidation loan to roll all of the smaller accounts into one. Debt consolidation loans pay off all of your outstanding debts (or at least the ones you choose) and leave you with one payment, one interest rate and the same amount of debt to be paid.
3. If a consumer can easily make their minimum payments and they are just looking to accelerate the time it takes to pay off their debts, Consumer Credit Counseling or "non-profit" debt relief options would work. Consumer Credit Counseling reduces the interest rates on your cards and you make one payment to the CCCS for your minimums, plus a "donation" to the organization for their assistance.
4. Consumers who have fallen behind and are unable to meet the minimums might think bankruptcy, but there is another option, debt settlement. A consumer reaching out to a debt settlement company will be put on a strict budget based on the amount of their debt and their services fees. Debt settlement companies do not hide behind "non-profit" status and do charge a fee for their services. The goal of a debt settlement company is to negotiate settlements on each account as low as possible and as fast as possible.
5. Bankruptcy is a last option for consumers. With the changes in bankruptcy law it has become much harder for consumers to file. The negatives of bankruptcy are apparent and well known. The blemish on ones credit, the public record, and the recovery, but what are the positives? Bankruptcy can, in some cases, protect secured assets that might be lost due to foreclosure or repossession.
Those are the five options consumers have when addressing their debt and looking for help. Unfortunately each comes with it's setbacks and consumers must decide which is the best option for them. There are several informational sources available on the internet, many counselors available and a ton of marketing material from lead publishers and service providers alike. I suggest consumers check out every company with the industry trade associations and make sure they give you the good and bad side of their program.
0 Comments
Add Comment
Debt Settlement Provides Consumers Another Option to Resolve Debt
posted by Mike Clark on 7/29/2008 10:01:44 AM
DALLAS -- For millions of Americans, the financial strain of
debt causes many to seek help from outside credit and
debt service companies. And, while many believe these services are all the same, the truth is, there is a large degree of difference between
debt settlement and
credit counseling services. Depending on their financial situations, many find that
debt settlement offers a more fiscally responsible, faster way to resolve debt. Through
debt settlement, individuals have the ability to efficiently and effectively resolve their credit dilemmas in three years or less, depending on the level of debt.
"Finding a way out of debt can be difficult and often feels like being stuck down in a dark hole without a flashlight," Jim Ross, president of Total Debt Services, said. "Sadly, some people don't understand that they have different options, and they might be choosing counseling when
debt settlement might be a much more effective solution to their problems."
As the number of Americans with
debt problems continues to grow, it has never been more important for consumers to be aware of their options. Through certified
debt settlement programs, such as those offered by Total Debt Services, people can approach their debt issues in a guided yet interactive manner. Unlike credit counseling,
debt settlement does not require a lengthy qualification process, and consumers work on a budget that allows them discretionary income every month.
It's an extremely unfortunate fact in our country that almost every consumer is going to deal with debt in his or her lifetime. But there is hope, and there are viable options for resolving that debt without having to resort to
bankruptcy
Programs like
credit counseling are best suited for individuals who can afford to make their minimum payments every month and can commit five-to-seven years to resolving their debt.
Debt settlement is a far more aggressive approach to getting
out of debt and is an alternative option for those consumers whose debt has become unmanageable to the point where they have considered filing for bankruptcy.
"It is important not to act irrationally when it comes to your financial future," Ross said. "We suggest individuals sit down and have a heart-to-heart with themselves and decide whether they are looking to
get out of debt for good with something like
debt settlement or if they can be comfortable paying off debt for the rest of their lives. There are no quick-fixes for debt, but
debt settlement will rid you of it completely in less than three years.
Credit counseling just doesn't even come close to that kind of turnaround time."
About Total Debt Services
Total Debt Services (TDS) is a consumer
debt settlement company located in Dallas, Texas. TDS is committed to helping clients free themselves from the anxiety of overwhelming
credit card debt. The company offers consumers guaranteed
debt relief programs for eliminating or reducing their unsecured credit card or loan debt. Our
debt Negotiation and
debt Settlement programs provide
credit card debt relief as an alternative to traditional bankruptcy, consumer credit counseling, debt management and debt consolidation loans, including credit card debt consolidation programs.
0 Comments
Add Comment
July Week 4 Settlement Data
posted by Mike Clark on 7/28/2008 1:28:46 PM
Accounts Settled: 91
Debt Settled: $790,191.76
Amount Paid: $302,500.86
Average Settlement: 38.3%
Best Settlement:$7,216.14 settled for $1,080.00
Worst Settlement:$1,508.42 settled for $1,207.
0 Comments
Add Comment
July Week 3 Settlement Data
posted by Mike Clark on 7/18/2008 9:47:52 AM
Accounts Settled: 63
Debt Settled: $442,101.14
Amount Paid: $167,035.26
Average Settlement: 38.6%
Best Settlement:$6,344.83 settled for $1,007.25
Worst Settlement: $3,872.55 settled for $2,906.66
0 Comments
Add Comment
July Week 2 Settlement Data
posted by Mike Clark on 7/18/2008 9:42:29 AM
Accounts Settled: 44
Debt Settled: $304,313.31
Amount Paid: $111,604.61
Average Settlement: 38.4%
Best Settlement: $7,996.88 settled for $1,200
Worst Settlement: $3,872.55 settled for $2,906.66
0 Comments
Add Comment
US News - Weighing the Benefits of Debt Settlement
posted by Mike Clark on 7/16/2008 3:02:03 PM
U.S. News released an article today explaining Debt Settlement and the benefits to consumers. The importance of debt settlement is for the companies clients to get out of debt. A big thank you to Kimberly Palmer for a well written and informative article.
The original article
Weighing the Benefits of Debt Settlement can be found here.
0 Comments
Add Comment
July Week 1 Settlement Data
posted by Mike Clark on 7/7/2008 2:41:03 PM
Accounts Settled: 18
Debt Settled: $135,343.90
Amount Paid: $47,889.94
Average Settlement: 35.38%
Best Settlement: $7,996.88 settled for $1,200
Worst Settlement: $5,395.26 settled for $2,700.00
1 Comments
Add Comment
June Settlement Data
posted by Mike Clark on 7/3/2008 8:50:48 AM
We believe it's best to not only tell you that debt settlement works, but to show you as well. June was a good month for our settlement department.
Accounts Settled: 64
Debt Settled: $528,684.22
Amount Paid: $190,391.06
Average Settlement: 40.8%
Best Settlement: $23,777.84 settled for $3,000
Worst Settlement: $824.29 settled for $673.94
If you have any questions about this or would like to see an example of a debt settlement letter, contact one of our debt analysts who can help you decide if debt settlement is the right choice!
0 Comments
Add Comment
Lady Belvedere Enterprises Receives 2008 Best of Plano Award
posted by Mike Clark on 7/3/2008 7:05:26 AM
WASHINGTON D.C., July 2, 2008 -- Lady Belvedere Enterprises has been selected for the 2008 Best of Plano Award in the Loans category by the U.S. Local Business Association (USLBA.
The USLBA "Best of Local Business" Award Program recognizes outstanding local businesses throughout the country. Each year, the USLBA identifies companies that they believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and community.
Various sources of information were gathered and analyzed to choose the winners in each category. The 2008 USLBA Award Program focused on quality, not quantity. Winners are determined based on the information gathered both internally by the USLBA and data provided by third parties.
About U.S. Local Business Association (USLBA)
U.S. Local Business Association (USLBA) is a Washington D.C. based organization funded by local businesses operating in towns, large and small, across America. The purpose of USLBA is to promote local business through public relations, marketing and advertising.
The USLBA was established to recognize the best of local businesses in their community. Our organization works exclusively with local business owners, trade groups, professional associations, chambers of commerce and other business advertising and marketing groups. Our mission is to be an advocate for small and medium size businesses and business entrepreneurs across America.
SOURCE: U.S. Local Business Association
CONTACT:
U.S. Local Business Association
Email: PublicRelations@USLBA.net
URL: http://www.USLBA.net
0 Comments
Add Comment
Coming Soon
posted by Mike Clark on 7/2/2008 7:54:34 AM
Debt Settlement statistics will be available shortly. We are going to go above and beyond showing just the good, and reveal to our clients and potential clients both the best and worst settlement as well as a running total for the month and year.
Stay tuned, information is coming soon!
Technorati Profile
1 Comments
Add Comment
