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What
Choices Do I Have to Get Out of Debt?
Getting control of your financial situation is never easy. However, if you are considering eliminating your unsecured debt, there are ultimately
five (5) options that you can consider. Fast Debt
Solutions understands that every client's situation is
unique. Our expert staff will help YOU to better understand
these options, so YOU can decide what to do.
Your debt-relief options are:
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Consumer Credit Counseling Services
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1. BANKRUPTCY OPTION
Personal bankruptcy generally is considered the debt management option of last
resort because the results are long-lasting and far-reaching and stays on your
credit report for 10 years. This could result in paying higher interest rates
on any loan in the future. Even later, when the bankruptcy has fallen off your
credit report, answering this question untruthfully is considered a federal
offense. Bankruptcy is a permanent decision that will follow you for the rest
of your life. We recommend the bankrupt choice should be reserved for health or
extremely dismal circumstances. Before choosing this option, speak with one of our Credit Specialists.
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2. DEBT CONSOLIDATION LOAN OPTION
What the FTC Said About Consolidation Loans: A FACT
Here is how the FTC defines Debt Consolidation:
You may be able to lower your cost of credit by consolidating your debt through
a second mortgage or a home equity line of credit. |
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Remember that these loans require you to
put up your home as collateral. If you can't make the payments or if your
payments are late you could lose your home. What's more, the costs of
consolidation loans can add up. In addition to interest on the loans, you may
have to pay points, with one point equal to one percent of the amount you
borrow. Still, these loans may provide certain tax advantages that are not
available with other kinds of credit.
(Source: http://www.ftc.gov/bcp/conline/pubs/credit/kneedeep.htm)
Also
See Our Debt Calculator
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3. CONSUMER CREDIT COUNSELING OPTION
What The FTC Said About Consumer Credit Counseling - A FACT
If you're not disciplined enough to create a workable budget and stick to it,
can't work out a repayment plan with your creditors, or can't keep track of
mounting bills then you should consider contacting a credit counseling
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Many credit counseling organizations are
nonprofit and work with you to solve your financial problems. But be aware
that, just because an organization says it's "nonprofit," there's no guarantee
that its services are free, affordable, or even legitimate. In fact, some
credit counseling organizations charge high fees (which may be hidden) or urge
consumers to make "voluntary" contributions that can cause more debt.
Most credit counselors offer services through local offices, the Internet, or on
the telephone. If possible, find an organization that offers in-person
counseling. Many universities, military bases, credit unions, housing
authorities, and branches of the U.S. Cooperative Extension Service operate
nonprofit credit counseling programs. Your financial institution, local
consumer protection agency, and friends and family also may be good sources of
information and referrals. Reputable credit counseling organizations can advise
you on managing your money and debts, help you develop a budget, and offer free
educational materials and workshops. Their counselors are certified and trained
in the areas of consumer credit, money and debt management, and budgeting.
Counselors discuss your entire financial situation with you, and help you
develop a personalized plan to solve your money problems. An initial counseling
session typically lasts an hour, with an offer of follow-up sessions.
Protect Yourself - Be wary of credit counseling organizations
that:
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Charge high up-front or monthly fees for enrolling in credit counseling or a
Debt Management Program.
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Pressure you to make voluntary contributions, another name for fees.
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Won't send you free information about the services they provide without
requiring you to provide personal financial information, such as credit card
account numbers, and balances.
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Try to enroll you in a DMP without spending time reviewing your financial
situation.
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Offer to enroll you in a DMP without teaching you budgeting and money
management skills.
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Demand that you make payments into a DMP before your creditors have accepted
you into the program.
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(Source:
http://www.ftc.gov/bcp/conline/pubs/credit/kneedeep.htm)
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These companies are generally funded by the credit card companies themselves.
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They are usually another form of a 'collection agency' to take your money.
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They will consolidate your bills into one monthly payment and lower interest
rates.
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You'll end up paying back your full balance plus interest.
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Your Balance will often take 5-10 years to pay down.
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Negative marks remain on your credit report for up to 7 years.
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This is also viewed by lending institutions as the same as a Chapter 13
Bankruptcy
Also See Our Debt Calculator
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4. DEBT SETTLEMENT OPTION
Debt settlement is a cost-effective option to pay off your
debts. In today's economy, consumers are demanding the most effective means
to resolving outstanding debt. Debt settlement is a legitimate way of solving
your problem without the need for bankruptcy. It offers you an intelligent
solution to becoming debt-free within a realistic time frame. We believe our program, through settlement negotiation, is the best method based on it's aggressive but effective debt relief option that directly benefits the consumer.
Also See Our Debt Calculator
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5.
DO NOTHING OPTION
Fast Debt Solutions does not believe this as a viable
option, although there are a number of consumers who believe that if you do
nothing, then nothing can go wrong. Doing the same thing over and over will
only yield the same results. If you don't want to change your situation, don't
do a thing. However, if you are ready to regain control of your financial
destiny and be less stressed, then now's the time to talk with one of Fast Debt Solutions credit
specialists.
Also See Our Debt Calculator
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Did you Know?
If you are only making minimum payments on $20,000 in credit card debt, at a
18.9% interest rate it will take you over 50 years to pay it off and you will
pay over $50,000 in interest.
(Source: CNN Money)
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