Find debt freedom the in the fast lane
My name is John Rowling and I have been assisting consumers that are in arrears with their unsecured credit card debts for a considerable amount of time and realize the negative consequences it has on their lives. When you have credit card debt and know that this matter is out of control, you must make a choice on what to do and make it as soon as you can. You don’t want to procrastinate until it is too late. As plenty of you must already know is that the collectors are not helpful when you contact them with complaints with your statement. It’s extremely fascinating the way it works because when you initially obtain the card they are the politest people when you are speaking to them on the phone. Then if you call them to argue against a late or over limit charge and attempt to have it reversed enough to try and keep up with 10% or even the 7.9 % interest that they are charging on your accounts. How are you suppose to come up with the higher payments now? It was bad enough to manage before the interest was raised. This is why many U.S. citizens are seeking out other options such as debt settlement vs. credit counseling, or bankruptcy. If you are not familiar with any of your options then I will offer you a little bit of an education on them.
Consumer Bankruptcy
Prior to 2005 bankruptcy was to be used for consumers who were experiencing serious financial problems. Unfortunately it was misused by far too many people who wanted to evade paying their unsecured debts. They did not want to take responsibility for their actions. The credit card companies were fed up with this so they petitioned to have the legislation changed. It is now known as the Bankruptcy Abuse Prevention and Consumer Protection act of 2005. It would make it harder for most consumers to file for help. Bankruptcy should only be used as your very last choice after you have tried every conceivable method. Also you should think of the negative aftereffects that will come back later down the road. You would have to find a lawyer, go to court and that could cost you a lot of your hard earned income. There is also the issue of it being on your FICO report for a long time. When you filling out any significant application or document you by law have to say yes when asked the question about bankruptcy, so this does have a extremely long lasting effect on your ability to obtain future credit.
Debt Consolidation Texas Credit Counseling
Everyway you turn, either it is advertised on the radio or television, you will hear about credit counseling. A credit counseling firm will attempt to get the credit card companies to reduce the interest rate on your credit cards. You then make one monthly installment to the credit counseling firm and they then make your payments to each one of your creditors for you. The down fall to this choice is even though they reduce your interest charge on your credit card balances you might still pay back as much as 120% of what you actually owe.
This is because with this sort of program you will still be paying back what you owe plus some of the interest for around possibly five years or more. Almost half of the people that are in these programs don’t complete the program for one reason or another. Another downfall to credit counseling is that if you have a money problem and are cannot make your monthly payment they will boot you off of the program at once. They will also bump up your interest back up and the creditor could keep you off the program for around one year and perhaps even longer. This might put you right back to where you began, if not in a worse predicament.
Debt Negotiation (also known as debt settlement)
This is the option where you can save the most amount of money. A honest debt settlement company will save you at least 40% of what you currently owe. The 40% should include all of their charges. Similar to credit counseling, you will hear a lot of TV and radio advertisements quite often. These organizations are popping up all over America. Some of these companies try to make it appear like they have a magical wand and are going to make all your debt vanish out of nowhere.
There are even some companies that try to use religion to aquire the trust of consumers. Whichever company you choose it is your responsibility to do research on them. You can always start with the BBB (Better Business bureau). You may be able to find out quite a bit about a company from the Better Business Bureau. If you discover that a company has only been in operating for a little while and has a slew of complaints against them, then you know to avoid them. Another thing to keep an eye out for is how much time has the company been around. Some organizations only survive one or two years before they get terminated or get caught stealing people’s money. Then some of them only stick around to make as much money as they can and close down just to open up across the streetunder a new name.
