Debt Management / Credit Counseling
Two names for the same program. The main problem with Consumer Credit Counseling organizations is that
they are secretly working for your creditors! This may seem unbelievable, but it is true - and it is why you end up paying
about three times more money to pay off your debts in Credit Counseling than in our "Debt Reduction Program." Most Consumer
Credit Counseling firm's claim non-profit status and pretend to be independent. But in fact, these non-profits are funded
and supported by the very people you owe money to; - the credit card companies. That is why Consumer Credit Counseling companies
do not negotiate your debts down. They merely try to come up with a plan to make sure you keep paying your credit card bills
every single month. They want to force consumers to pay as much money as possible to your creditors. Sure, they may help lower
your interest rate a few points, or eliminate a late payment or two, but the credit card companies are happy to do this when
they know you are going to keep making payments that our Debt Reduction Program could have negotiated away for pennies
on the dollar.
Additionally, since you are repaying 100% of your debt
balance plus interest charges (even after they are reduced by Consumer Credit Counseling), you could be in a Consumer Credit
Counseling program for over 8 years! Compare that to 2-3 years in our program.
Our "Debt Reduction Program" can have you out
of debt twice as fast and for about 1/3rd of what you'd be paying in a Credit Counseling Debt Management Program. Why not
be debt free and have your credit rating restored, instead of several more years making debt payments and having an impaired
credit rating while in a Consumer Credit Counseling program? Once you learn about the alternatives, the decision becomes easy
for our clients to choose our Debt Reduction Program.
Debt Consolidation Loan
Unfortunately, a Debt Consolidation Loan is one
of the most common solutions people think of when they fall into financial difficulties. This is a problem because most people
who get a debt consolidation loan find themselves in much deeper financial trouble than they were in to begin with.
Debt consolidation loans transfer debt from one place to
another. While this may sound good, since many times it can appear to lower your monthly payments, a debt consolidation
loan will not reduce the amount you owe. You will still
pay back 100% of the debt consolidation loan, plus interest. The interest rate is sometimes lower than before, but this is
because debt consolidation loans are usually secured loans that cannot be lowered or negotiated. Once you sign up for a debt
consolidation loan, you have just gone from an unsecured debt to a secured debt and have put your personal assets (e.g. your
car or your home) at risk. At that point, if you can't pay your bills your creditors can come and take your personal property
– thus creating a bigger problem than you had to begin with.
We think the best solution is to deal with financial problems
through debt reduction, not debt consolidation. This way you are dealing directly with the problem, not temporarily avoiding
debt problems.
Bankruptcy
Bankruptcy is a way to potentially get out of your debts.
Unfortunately, it leaves a long lasting scar, and comes at a high price – financially, emotionally, and socially. It
is a long and painful process and the repercussions can last for over a decade.
The financial impact is severe - a bankruptcy will stay
on your credit report for 7 to 10 years. Every time you apply for credit, whether it is a home, a car, a lease, or insurance,
you will be impacted. The long-term effect of paying higher rates can greatly outweigh the shorter-term impact of filing
bankruptcy.
Additionally, most people do not realize that bankruptcy
can stay on their court records for over 20 years – which means it can follow someone for the rest of their life. If
you apply for a job, a loan, rent an apartment, or even insurance your bankruptcy filing is easily uncovered.
Lastly, we have yet to find someone who is proud of filing
bankruptcy. Most people will do anything to avoid filing bankruptcy, and for many of our clients, our Debt Reduction Program
is a perfect alternative.
Bankruptcy is not an easy or even quick fix. It is a very
serious decision with serious consequences. If you are considering bankruptcy, you should consider contacting a lawyer to
discuss this option.
The "Debt Reduction Program" is a great alternative to bankruptcy.
Your debts are significantly reduced, and your credit rating is protected from the long term effects of bankruptcy. Best of
all, your creditors accept our negotiated settlement amounts as payments in full, making you debt free without having to suffer
the financial, emotional, and social impacts of a bankruptcy. Many of our clients are ecstatic to find an alternative to bankruptcy
that still solves their debt problems.
Continue
Monthly Payments
Unfortunately, millions of Americans who are struggling
with their debts continue to just barely make their monthly payments. Most of these people just keep doing whatever they can
to continue making minimum payments for the rest of their lives. If you are facing severe financial hardship, this is a no
win situation. If you are only making your minimum payments, you are paying almost entirely interest charges; not paying down
your debts.
This means that if you owe $10,000 today, it will cost
you more than $20,000 over the next 20-30 years before you are debt free. And if you can't keep making their minimum payments,
the creditors will begin harassing you. If you don't find help, you could end up with judgments and garnished wages as well
as liens against your property.
As a well-known American psychologist would say, "How's
that working for ya?"
