A Debt Free Life is Right Around the Corner
Dan | May 22, 2010 | 1:58 am | Credit Debt Consolidation, Credit Debt Counseling, Live Debt Free | No comments

Celebrate life! Overcome Debt

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Everyone who is in debt dreams of having a debt free life. Freedom from debt, however, seems just that – a dream. The bills are stacked up and it seems like nothing will break through them in order to offer you a solution. But did you know that you do have options? If you were not aware that there was a way other than living off of bread and water until your credit card bills are paid, be prepared to eat a little healthier. It should not be an option to suffer in other ways in order to relieve the financial suffering that you are encountering. You have a home to maintain and you do need to engage in fun activities once in a while, such as going to the movies, in order to stay sane. If these things are important to you, evaluate how you can achieve freedom from debt. Options

There is no instantaneous method to having a debt free life. It does take time, but you do not have to suffer during the process of becoming debt free. Even bankruptcy is not an instant solution. It is a process that can take months. It can also ruin your chances of acquiring new credit for a ten year period, publicly humiliate you, and cause you to lose some of your assets.

Here are some other options that you can consider:
  • Debt Consolidation – This option works in two ways. The first way is that an individual can become debt free by acquiring a loan to pay off all credit card debt. This then results in one loan payment. Collateral usually has to be provided unless you are a homeowner. This brings about the second way to achieve debt consolidation. A homeowner can refinance their home for its full value and receive cash back on the equity. They can then use this cash to pay off credit card debt. However, this is not becoming fully debt free because the mortgage takes many years to pay off. The one thing that has been saved in this instance is the hundreds, if not thousands, of dollars in interest.  Debt consolidation, however, allows you to keep your credit accounts open if you wish to do so.
  • Consumer Credit Counseling – If you adhere to this program throughout its duration, you can achieve freedom from debt. The program takes approximately 36 months to resolve your debt. The credit counseling service negotiates lower interest rates and lower monthly payments with your credit card companies. You then submit a single payment to the agency each month and they will pay your credit card bills for you each month at the negotiated rate. You have to do nothing more than submit your payment each month and the agency does the rest. This is, perhaps, the quickest way to achieve freedom from debt without you having to come up with a large sum of money to pay off the debt instantly. Only those who experience a large windfall are able to do that.
This option will allow you to keep your credit accounts open so that you can use them once you have paid off your debts and are no longer working with the credit counseling agency. This is opposed to you negotiating the debts yourself, which automatically results in account closure. Now that you know two options aside from the very painful process of bankruptcy to become free from debt, you should evaluate which is best for you. Becoming Free from Debt

When becoming free from debt, you get a fresh start. So don’t feel hopeless about your financial situation. Know that there are programs out there designed for people like you who want to become debt free.

As a start, you may want to check out our credit debt relief review page. We cover the top 3 debt relief companies in the US according to our research and consumer feedback.

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Relieving Debt – Credit Card Consolidation and Interest Reduction
Dan | April 22, 2010 | 1:11 am | Credit Debt Consolidation | No comments

A mountain of debt is one of the reasons why people are not happy.  The bills may be paid, but the mountain never seems to get smaller. In some cases, other circumstances in life keep the bills from getting paid and it is this that causes a domino effect. Once credit card bills are becoming delinquent and the late fees and over limit fees start to accumulate, the effect trickles to other bills and it seems like all life is about is trying to catch up bills. Fortunately, losing hope is not an option when credit card consolidation is an option.

Credit Card Consolidation

Credit card consolidation is a method that more and more people are beginning to use. It is the act of consolidating credit card debt into one payment as opposed to paying all of your credit card bills separately.

Even if you’d tried the strategy of paying of high interest cards first or paying off lower interest cards to transfer the balances of your higher interest cards to them, it will still take many years to pay off the debt. Balance transfers can make a nice method of credit card consolidation, but, in the end, you still owe 100% of the debt. And truthfully, when interest is factored in, you pay the equivalent of your actual purchases long before the card is actually paid off. Through credit card consolidation, everyone wins and here is how:
  • A consumer credit counseling service evaluates your credit card accounts to create a proposal for each credit card company. This proposal involves lowering your actual monthly payment. It also involves interest reduction.
  • The credit card companies evaluate each proposal and they either accept it or they decline it. It is possible that one or more credit card companies will decline the proposal, but that is no reason to be alarmed. When most approve, credit card consolidation can be successful in lowering your monthly credit card payments.
  • Once the proposals are accepted, the credit counseling agency tells you how much they need per month. This does include a fee for their services, but is still less than your credit card payments combined if paid separately.
  • You will then remit the payment to them each month and the payment will then be divided amongst the credit card companies so that your credit card bills are paid.
  • The program usually continues for a period of three years, which is opposed to your credit card debt taking 10 years or more to pay off. The interest reduction and speed of pay off significantly lowers the amount you would have to pay over the lifetime of the account.
  • You can cancel the credit card consolidation services at any time, but this means your credit accounts will go back to the way they once were. The monthly payment goes back up and so does the interest.

This is an option that is proving successful for many. There is a little work involved in the preparation process, but this can get you out of debt in a very reasonable amount of time.

Preparation

When preparing for credit card consolidation, you must gather all of your credit card bills so that you can submit the account information to the credit counseling service. You also want to calculate your monthly payments and pay close attention to the interest of each account. You may even wish to calculate how much interest you are paying per year to see how interest reduction will save you money.

In the end, you won’t feel as if your life is consumed with trying to pay off your credit card bills. You can actually go on with your life feeling hopeful and as if you have been given a fresh start. One of the reasons we started this site is to take the time to share information with you on credit debt relief. Our reviews of the top three debt relief companies, provide you with three companies that can help you choose the right credit card consolidation and counseling program, and who will work for you to get the best results possible (and relieve your debts faster).

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Pros and Cons of Bankruptcy
Dan | March 20, 2010 | 10:27 am | Bankruptcy | No comments

Making the decision to declare bankruptcy is difficult, life-changing, and it can also seem like a relief. It is a way to eliminate the plague that is your debt and use your hard earned money for actually living your life. There are, however, pros and cons of bankruptcy that you should be aware of before filing. Although bankruptcy may seem like a relief, you should also evaluate the burdens that it creates. Everyone should evaluate the pros and cons of bankruptcy before committing themselves to the process.

Credit Debt Balance

Pros

It is appropriate to first evaluate the pros of the pros and cons of bankruptcy. These are the things that will make you feel better when implementing the process:

  • Once you file your bankruptcy petition, the creditors who have been bothering you for so long have to leave you alone.
  • Many states will allow you to exempt your car, home, and other essentials to keep you from losing transportation and from becoming homeless.
  • You may be able to get started sooner in re-establishing your credit than you would hanging in debt over the next 10 years.
  • Aggressive collection action by lenders on student loans is prevented, although student loans cannot be included in bankruptcy.
  • Because credit cards and other debt caused the financial mess, bankruptcy will keep it from happening any time soon.

The pros and cons of bankruptcy may seem good or bad, but apply each to your own situation.

Cons

And, of course, we have to evaluate the cons in the pros and the cons of bankruptcy to determine if this is the right decision for you. It is important to note that filing bankruptcy is usually considered the last resort after everything else has been attempted. Here is why:

  • You have to go through 90 minutes of credit counseling so that it can be determined whether or not bankruptcy is the best choice for you. The credit counseling service may determine there is something else that can be done, which can prevent you from being able to file bankruptcy.
  • It is possible that some of your luxury possessions will have to be taken by the court to satisfy some of the debt that has been incurred.
  • Certain debts such as back taxes and student loans cannot be discharged in a bankruptcy.
  • Bankruptcy remains on your credit report for 10 years. This makes it difficult to acquire new credit such as credit cards, car loans, and home loans. If you are able to acquire credit during this period, the interest rate will be incredibly high. For instance, you may be able to get a home loan in about 5 years, but the interest is going to be beyond what you would like to pay.
  • It is very possible that your name will be in the newspaper for filing bankruptcy. This can be an extreme embarrassment.
  • You have to explain to the judge how the financial mess occurred.

You have to evaluate what in the pros and cons of bankruptcy will or will not finalize your decision to file. If the cons do not matter to you because your debt is so extreme, then it may be the right choice. It is, however, important to evaluate all options before filing.

An Option

The pros and cons of bankruptcy may make your decision for you, but there is one option that you may be able to exercise. Although this option requires you to pay back your debts, the consequences are nowhere near the consequences that follow filing bankruptcy.

Through credit counseling, credit card debt, the biggest problem of those filing bankruptcy, is consolidated into a single payment that is less money per month than all payments combined and the interest rate is reduced. There are many more pros and fewer cons than the pros and cons of bankruptcy because you can be back on your feet credit-wise in just a few years. If you have been struggling with the burden of credit debt, click the banner below to get your confidential and FREE Debt Analysis from our #1 recommended credit debt relief company.

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Not Paying Credit Cards? Credit Payoff is in Your Future
Dan | February 14, 2010 | 8:31 pm | Credit Cards, Credit Debt Counseling | No comments

Have you given up on paying credit cards because you can’t seem to get ahead? If this is you, then you are in the same boat as millions of others suffering from the consequences of credit card debt. Once they realize that a credit payoff is ten or so years into the future, they simply give up. No one intended on ever getting into the degree of debt they are in. It happens slowly over the course of years. Then again, it happens faster for some than others, but there have been times when credit has been made so readily available that it is hard not to.

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So how do you move from not paying credit cards to a credit payoff? Luckily, you do have options so that you can have credit again in the near future.


Do it yourself

Even if you are not paying credit cards, the credit card companies may listen to you. Sometimes, depending on the credit card company, they will negotiate with you. You simply call them, explain to them what the problem is, and sometimes they understand. What they also understand is that it is better for them to get some of their money than none of it at all, so they will negotiate a lower payment and a lower interest rate with you. You do have to realize, however, that the new arrangement is on their terms and not so much yours.

Yes, you can achieve a credit payoff faster than you normally would this way, but, perhaps, the lowest payment they want is still something you can’t pay. Then there are those companies that are so stubborn they will not budget at all. Getting Help

You can get help in the negotiation process. You don’t want your not paying credit cards to result in wage garnishments or lawsuits that will result in your name being in the paper and everyone knowing that you are having credit problems.

Luckily, there are credit counseling agencies that have some pull with the credit card companies. Where you may not be able to negotiate the rate you need with your creditors, the counseling agency may be able to. This is not saying they can make all of your credit card creditors reach a negotiated agreement, but they can convince most of them. What they do, despite you not paying credit cards, is submit a proposal to each credit card company. Again, the credit card company would rather get their money in some form than not at all. They also don’t want to have to get a court order to garnish your wages or to have to sue you in another way for the amount. A peaceful resolution benefits everyone involved. Even if all of your credit card companies do not accept the proposal, most of them accepting will still save you money. You then submit a single payment to the credit card company and that payment is divided amongst the credit card companies. The credit counseling service also takes their fee. Overall, the payment is less per month than all of your credit card payments combined in their original form. What’s more is that your credit payoff will happen in a matter of just a few years rather than the 10 or more years it would normally take. Some individuals, when figuring how long a credit card will take to pay off with interest, finds that it may even take over 20 years to pay off the debt. So when you need a credit payoff solution, credit counseling is a way to pay off that debt in a fraction of the time so that you can be in a better position financially. Check out the top 3 credit debt relief companies and get your FREE confidential debt analysis.

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How To Settle Credit Debt
Dan | January 15, 2010 | 3:37 pm | Bankruptcy, Credit Debt Consolidation, Credit Debt Settlement | No comments

How to settle debt credit is on the minds of many people who have been hit by job losses and economic uncertainty as of late. Credit card debt is a problem that many individuals continue to deal with on a daily basis. Before the economic crisis of 2008, credit cards were relatively easy to get. People would sign up for numerous cards that initially offered low rates which were raised after a certain period of time, usually after a year or so. They also accumulated a lot of debt on these cards, which is proving to be hard for many individuals to pay off in today’s economic climate.

Fortunately, there are many options available to people who need help with paying off their credit card debt. These include working with creditors, debt settlement, debt consolidation loans, credit counseling, and bankruptcy as an absolute last resort. Each of these areas will be discussed in detail below. With these options, you can definitely end up to be the winner against debt.

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Work With Your Creditors

To begin, people who are looking to settle their credit card debt as soon as possible have the option of working with their creditors on various debt solutions. These could include the debtor’s asking the credit card companies to fend off late fees for a short period of time, at least until he or she has caught up on his or her payments. The debtor could also ask to see if his or her interest rate could be lowered. However, it must be noted that these options are most suitable for people who are not in serious debt and who have had a relatively good record of paying off their credit card bills each month.

Next, people can consider debt settlement in their quests to pay off credit card debt. While there is not an official credit card bailout program, the process of debt settlement acts like such a program would in theory. The government is not involved with this process, which allows debtors to negotiate with creditors to eliminate credit card debt. A professionally trained debt settlement agent sits in on such proceedings, and he or she negotiates debts with creditors on the debtor's behalf. The potential of such a process is great, as it could possibly wipe out fifty percent of a debtor's credit card debt in a matter of two to three short years. Debt consolidation loans are yet other options for people who are looking to settle their credit card debts. Such loans consolidate all of a debtor's debts into one single loan. This is in fact one of the best ways for a person to avoid going bankrupt. A debtor needs to think long and hard before pursuing such an option, however. The debtor has to make sure that the interest rate on the debt consolidation loan is lower than every single credit card interest rate that he or she is now paying. Furthermore, if a debt consolidation loan results in a person's having to pay out more each month than he or she is currently paying, then it is not the best option to pursue. Credit counseling is yet an additional option for people who are looking to pay off credit card debt and avoid bankruptcy at the same time. Credit counseling agencies are able to secure lower interest rates for debtors, which in turn helps people to pay off their outstanding loans quicker. They can even help people to get some of the late fees removed from their accounts. Most of these agencies place all of the debtor's debt into a single payment each month. The debtor can in turn make that payment to the agency, who will in turn disperse the payment to creditors. The drawback of credit counseling is that it will adversely affect a debtor's credit rating, which may prove to be a hindrance to the person's purchasing a home or other big ticket items in the future. How About Bankruptcy?

Last but not least, if all other options fail, a person can declare bankruptcy. Such an action will have many negative implications for a debtor, but it may be the only option available if a person is sinking in debt to a level where nothing else will work. However, a person should make every effort to avoid this situation, and he or she should make attempts to pursue the other options outlined above at points where his or her debt is manageable and not out of control.

In conclusion, there are numerous ways to settle debt credit, which is of interest to many people in today's down economy. These include working with creditors, debt settlement, debt consolidation loans, credit counseling, and bankruptcy as an absolute last resort. If you’re currently overwhelmed by your huge debts, you may want to check out our credit debt relief review page. We have done the reviews for you.

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