Get Your Finances Back on Track with a Debt Consolidation Bad Credit Loan

Most households are still reeling for the effects of the last global recession. This is evident in the increasing consumer debt. According to a report by New York Federal Reserve, the average household debt in the U.S as of 2015 is $132,158. Of this, $15,675 is on credit cards. Other loans include mortgages, auto loans, and student loans among others. In total, debt balance as of Q2 2016 is still rising.

thinking about debt consolidationOne of the most frustrating aspects of falling deeply into debt is dealing with multiple creditors. This is a nightmare especially when you start receiving multiple reminders and your finances are still in the red.  Due to these overwhelming debts, most household owners also have to contend with poor credit rating which only makes things worse. If you are struggling to handle multiple loans from different creditors, it is time to think about consolidating your debt.

Demystifying Debt Consolidation

When you are paying multiple creditors, it is easy to lose track of your payments. Worse still, you might end up paying more than what was in the contract due to late penalties. Debt consolidation involves taking a new personal loan from a lender to repay all your multiple debts. In essence, you now have one loan with the new lender and you don’t have to worry about multiple payments every month.

The loan may be taken through a debt relief company, home equity loan, a credit union or through your bank. However, if you have a bad credit profile, your bank and credit union will turn you down. A debt relief company on the other hand offers a third party service where a loan is negotiated with a financial institution at a lower rate and then all the other loans are repaid. This leaves you with one loan to worry about.

Debt consolidation bad credit loans help you to repay all types of loans including credit cards, rates, tax debt, outstanding bills and store cards among others. While there are many debt consolidation options around, it is important to understand that any package you choose should fit your unique needs.

Why Consider Debt Consolidation?

Before going for debt consolidation, you need to understand how it can actually help you. Debt consolidation is not for everyone and your financial advisor helps you evaluate the real benefits of going for the program. Here are just a few of the advantages you can get by consolidating your debt:

  1. Peace of Mind

Paying multiple debts is stressful and it is no wonder many homeowners are suffering stress-related ailments. You will have to deal with constant reminders and calls from debt collection services if your loan is due. If you are constantly worried about debt, you will not focus on the more important areas of your life and this will impact your career and even your social life. By consolidating debt, you will get a breather to focus on other areas of your life.

  1. Lower Interest rates

By consolidating your debt, you will enjoy lower monthly payment. Remember when you are paying multiple creditors, there are interest rates and other fees to consider but with one lender these do not apply. If you have multiple credit cards for instance, they come with astronomical interest rates that can ruin your finances. You will save a lot of money, which can help you start rebuilding your finances gradually.

  1. Repairing Credit Score

One reason you have poor credit rating is because you have been making late repayments. When faced with multiple loans, it is obvious that some deadlines will slip through your mind and this leads to deterioration of your credit score. When you consolidate your debt, the issue of late payments becomes a thing of the past. You will start repairing your credit score with time.

  1. Single Payment

A single loan repayment per month is a great way to start getting your finances back on track. You will be able to budget easily without the pressure of collection calls coming through your phone. It is easier to budget when you just have one debt item on the list as opposed to multiple, which drain every coin you have. It is even possible to start saving because you are saving on interest rates.

Different Debt Consolidation options

When reading debt consolidation reviews, you will realize there are different options for you to consolidate your debt. The most common include:

  • Debt management programs: These are financial advisors who will help you consolidate your loan based on your budget. A credit counsellor is involved in finding you the best rates and they will then coordinate the repayment of the smaller loans. You will then continue repaying the loan through the company and your accounts will be frozen to help get your finances back into shape.
  • Debt consolidation companies: These offer an unsecured loan to pay off your debts. They cater for people with bad credit profile but you should be cautious when choosing one. There are many online scams and you should seek recommendations from your financial advisor or friends before using a particular company.
  • Home Equity Line of Credit (HELOC): This option allows you to borrow money against your property in order to repay other debts. This option is only viable if you are sure you can repay the loan without any difficulties. You will be putting up your home as collateral when you use this line of credit.

When looking for the best debt consolidation option, first compare them on top debt consolidation reviews. Debt consolidation is a good idea because it helps you get on top of your finances and also repair your credit score. By consolidation, your debt you can easily budget your money and improve your household’s finances. A debt consolidation loan reduces the interest rates you could have been paying. With the tougher credit reporting regime, it is now easier to repair your credit score and isn’t this what everyone with bad credit wants?

The Best Guide for Getting Effective Debt Consolidation

So much information is shared with the public regarding debt consolidation programs – both true and untrue, which confuses many. This is why you should be careful with where and who shares such information with you to avoid getting into pitfalls of financial crisis. Consult and call the number 1 debt consolidation company to get the correct information.

Debt consolidation programs involve combining someone’s multiple debts to make it simpler for the borrower and in many cases, reduce the monthly payments for the borrower. If you are considering to consolidate your debt, your outcome will depend on your financial discipline and the decisions you will make from the financial knowledge you have. It is therefore highly recommended for you to seek the services of a financial counselor to get guidance and financial resources on how you can become debt free soon.

When can you use debt consolidation programs?

As mentioned above, a priority reason for considering this program would be to simplify your life. This is important since stress can lead you to make poor decisions that can make you fall deeper into debt. It is therefore a brilliant decision to seek help for your own well-being and be in the right state of mind and emotions.

When your debts are consolidated into one, you will stop forgetting about paying crucial bills as you used to. Moreover, chances are you have been settling your debt with high monthly payments than you can barely afford. This is caused by handling different debts that have different interest rates and other costs. When you add the interest rates and other additional costs of the debts, you will find that your debt payments are very expensive. You can combine all of them through consolidation and lower the interest rates, which will in turn lower your annual percentage rate. You can also choose a lower monthly payment that will not cause too much strain to you.

What about consolidating debt with a finance company?

Getting a consolidated loan from a finance company can be viable for you if you have been turned down by a bank or your local credit union. However, collaborating with a finance company can be limiting as you will see below:

-Additional fees

You will be charged for other processes like the origination fee. Get to find out all the fees that you will be required to pay to avoid surprises. Read their fine print very carefully!

-Higher interest rates

The range of interest rates by financial companies is usually higher than what banks offer. This is especially so to cover for the borrower’s poor credit history. Although their monthly payments are usually more favorable than banks, there is a cost to this. The longer you take to pay off your debt, the higher your debt will increase in interest.

-Lowers your eligibility

If you have a good credit history, you should refrain from getting a loan from financial companies. This is because having a financial company in your list of lenders is not good for your record. It will seem like you turned to a financial company since you did not qualify with a bank. Banks know that people run to these companies in desperation, which is not a good message.

How can you go about debt consolidation?

All organizations that offer debt consolidation have different plans. You should get information from top debt consolidation reviews on all the plans that different organizations offer and what each plan entails so that you make a solid decision. The three major plans that cut across all organizations are:

  • Debt settlement

Many people confuse ‘debt settlement’ with ‘debt consolidation’. Although these terms have different meanings, those in the industry use them very interchangeably, which causes a lot of confusion. Debt settlement is agreeing with the creditor to lower the rates at which the borrower was paying initially. This service is commonly offered by counseling agencies for consumers that would like to consolidate their debt.

  • Debt management

With debt management, you will be able to get assistance to pay your debts faster than you would have on your own. You will be offered a repayment plan that usually offers lowered costs and interest rates. Debt management services are a great way to improve your credit score, since you will get assistance to pay off your debt a bit more easily. This will need you to be more committed as the terms will be more manageable to you.

  • Debt relief

You can get debt relief, including national debt relief for your unsecured loan. The debt relief organization can negotiate lower costs for your debt repayment. It is worthwhile to collaborate with such expertise since they understand what kind of negotiations can make your case win. Your negotiation may not be successful if you do it yourself.

Negotiations between debt relief companies and creditors are usually successful because of their system of payment. When you enter into an agreement with the organization, the relief company first ensures that substantial money has accumulated into the creditor’s account before they start the negotiations. In case the consumer is unable to accumulate funds into the creditor’s account over a period of time, the company can offer a payment plan. This gives the debt relief company a better stand since the creditor realizes that there is progress.

You can get an arrangement with a debt relief organization whereby you will not need to pay any origination fees, nor any other payment until the organization settles your debt. Depending on the size of the debt, most customers are usually able to clear the debt through relief programs between 2-4years. The debts that can be cleared through this program include medical bills, business debts, credit card debts and other unsecured debts.


Get counsel from the very beginning to avoid mistakes that will cost you later on. For instance, avoid getting a secure loan since it can greatly limit you from getting assistance later for another loan or a debt consolidation plan. Research well on all the financial options available, then choose a plan that is suitable for you and be committed to make it work.

What Clients Have To Say About National Debt Relief

Debt is something that is very hard to ignore and when you are faced with an ever expanding credit card balance and are faced with never ending phone calls that come from your creditors. It may become impossible to shrug, smile or wish it away. When you find out about National Debt Relief reviews you may find the solution to your debt problems.

When you start up with a debt consolidation program such as National Debt Relief you may be pleasantly surprised. The program as expressed in various National Debt Relief reviews does, however, take commitment and time in order to complete and there are no promises that you will be debt free within a short period of time.

However, this debt relief program does promise to significantly reduce unsecured and the existing burden of your debts. The company works on assisting any customer that is able to qualify successfully into the program and most of the results speak for themselves in the various National Debt Relief reviews. According to the TrustPilot website the reviews score an impressive 8.5 score out of 10.

debt relief application approvedNational Debt Relief is a New York company that has a BBB accreditation along with various accolades and awards. This company is well known for specializing in the reduction of credit card based debts, specific unsecured obligations, types of business debts, repossessions and medical bills. In addition, National Debt Relief assists their customers in making sure that creditors stop harassing the client at either their work or homes.

According to a few National Debt Relief Reviews, some of the customers on the TrustPilot website had to say the following:

The Good

One customer states that after employment issues that included the start up of business in the year 2008. Led to unsecured debt of around $100,000 unsecured debt. This led to the point where she was unable to meet the minimum payments on her debt. She signed up with National Debt Relief in 2014 and after only two short months her credit card balance was reduced by just over 50%. She received a much needed notification that a settlement was reached that reduced her debt from $11,000 down to $5,000. She is now able to settle her debt within three months thanks to the National Debt Relief program.

Another loyal customer states in their National Debt Relief reviews that everyone that she dealt with at National Debt Relief has been extremely helpful and accommodating of her situation. The company has gone the extra mile in assisting her to feel comfortable and assisting her with her debt.

A further case of a National Debt Relief reviews states that the customer is extremely satisfied with their decision to use the program. This customer reveals that that felt that their debt created a lot of stress and a feeling of hopelessness. Each representative that this customer dealt with offered understanding without any judgments of the client’s situation. This customer is completely satisfied with the decision to use this debt relief program and is grateful for all the help so far.

The Bad

One customer states in a National Debt Relief Review that they had signed up with the program and after three months of payments have still not received a phone call or feedback on their financial situation or a statement. This customer has become irate with the non response and has started to receive phone calls and legal notices from creditors. This customer would like to know if they are wasting money and time where they could be paying this money to the creditors that they owe money to.

Another negative review, a customer states that they signed up with the program in the hope that they would be able to reach the stage that they are back on financial track. They realized that there would be a bit of time and saving up of money. However, they are now receiving various legal judgments and find this to be ludicrous considering they have signed up for the program. This customer hopes to receive assistance soon from the services offered by the program.

Overall, National Debt Relief has 85% 4 and 5 star reviews.

No company is perfect. NDR does its best to help as many people as possible and realizes that not everyone will be happy with its services. That is why they offer a money back guarantee if you’re not happy with how things are going with your creditors.

The goal behind the National Debt Relief program is to provide negotiations those results in a single lump sum payment that results in an elimination of all debts for the customer. The program differs from other types of managed debt reduction as most of the debt settlement cases can be solved within as little as 24 months.

In order to assist customers in saving up for the eventual payoff, this program offers what is known as a FDIC insured trust account, where monthly deposits can be made. However, every case is different but the program has been able to reduce customers’ total debts by up to half on average.

The National Debt Relief Program Covers:

This National Debt Relief program covers a large proportion of mainly unsecured debts as well as certain secured debts. Most of their customers carry what is considered to be credit card debt of significant proportions. This company specializes in the negotiation processes involved with all the main banks and credit card issuers. In addition the program settles the following:

-Certain repossessions

-Medical bills

-Personal credit lines

-Certain judgments and collections

-Specific types of business debts

Recognition, Relief and Accreditation Awards

National Debt Relief reviews show that this company is worthy of accepting recognition. Below are some of the awards received from trusted authorities in this field:

-Top 10 Reviews in the 2014 Excellence Award

-Top Consumer Reviews with a 5 star rating in 2014

-Top 10 Reviews for the 2014 Gold Award for Best Overall Debt Relief company

-A class rating from the BBB

-A U.S Chamber of Commerce member

-A member of the American Fair Credit Council

Proven Results

The National Debt Relief Program continues to provide their customers with ongoing results with a method in combating financial debt problems. There are various debt settlement letters available that provide proof on existing and past customers who have successfully entered the program. This company has outstanding results with various institutions.

National Debt Relief Reviews

You want to get out of debt and you want to use a reputable company that has a strong reputation and won’t scam you. National Debt Relief is a BBB accredited business that has helped thousands of consumers get out of debt with their proven debt reduction plan. They are members of the American Fair Credit Council and the International Association of Professional Debt Arbitrators. But enough about NDR, let’s review how others have fared with them:

“I used National Debt Relief and they are extremely professional, helpful and reliable.”

“I have to say that I just have been with them for a couple of weeks now, but so far I am very impressed with everything. I would certainly recommend this company to everyone.”

“Wonderful service and very helpful. Eased my nervousness about doing this and I can’t wait to be debt free!”

“From start to finish my experience was exceptional. *** educated me on all my options and how the process worked. I would recommend National Debt Relief to all my friends and family.”

“*** that helped me on the phone, explained all of the options available, took time to answer my questions and made sure I understood everything.
I understand that this will negatively impact my credit rating but in the long run, I will be so much better off.

Very professional organization, and I would recommend this company to anyone that may be having issues.

This was my decision to move forward with the best option available to me, and I am very thankful that there is an honest company that is rated by the better business bureau, which is why I did reach out to the company.

Very professional, very helpful, and very understanding, and willing to help!

“I strongly appreciated the professionalism and the help made available to us by a personal phone call as opposed to an automated calling system. Mr. Cole’s knowledge of the process was reassuring. I am very satisfied with the help and assistance I received and will recommend National Debt Relief to anyone I know that may be considering a similar financial decision.”

“Thank you, I spoke to a very knowledgeable staff member who guided me through the process and also gave me several ideas for more effective cost conscious living. I really felt that she cared and was doing this because of a genuine interest to help me. With such a stressful mind-boggling tasks I am facing, she made me feel as though there is a light at the end of my tunnel. Very compassionate, understanding and professional.

“I am just starting with National Debt Relief, however the staff has been very helpful and have answered all my questions. I have been very satisfied with the customer support so far and would recommend others to check it out.”

“I am very new to this company. So far, I am VERY pleased with the way they have explained every thing to me. Every one I have talked with is not only knows their area, but they are courteous and friendly. I look forward to doing business with them. I would recommend this company to others.”

“I gave a lot of thought and research as to which company to go with for my debt consolidation because it was embarrassing for me. When I submitted my application to National Debt Relief, I received a call almost immediately from ***. *** was polite and professional but most importantly, he did not make me feel as if I was a idiot for getting myself in debt over my head. I have already suggested National Debt Relief to 2 of my friends and will continue to do so. Thank you National Debt for helping me and getting me to see the light at the end of the my debt tunnel!”

“It was nice to deal with a friendly Customer Service Rep. I liked the fact that we could communicate through email. Everything was explained to me, and I like the flexibility that is giving to the customers about there plain. I did give it a 5 star rating because the people you talk to you can understand. They are not pushy at all. The program is quit flexible as far as payment date, which cards you want to pay off. Just like everything about this company. Hope everything I said holds True!!”

“It’s very difficult to talk about being in financial trouble, to a stranger especially, but *** stayed neutral and calm and educated me on what had happened, what was going to happen and how his company would help. It was a giant weight lifted and the relief was enormous. Thank you.”

“From the very moment I contacted *** I was assisted professionally and efficiently. *** analyzed my situation and provided options as to how he could assist. He was very straightforward and went to work immediately in an effort to assist me with my financial hardship. At this point I am extremely satisfied with *** and would encourage anyone who is in a true financial hardship situation to seek assistance through *** .”

“Awesome customer service. Treated me with the utmost respect. Made a very stressful and honestly embarrassing situation seem manageable. I have spoken with then several times since starting the program about questions I’ve had and everytime they are thorough and friendly. They have lifted so much weight of my shoulders and have made me feel that I can truly trust them 100%. It’s like a have this team of credit super heroes working for me!”

This is just some of the many reviews of National Debt Relief. Although they are based out of New York City, New York, they are licensed to work with consumers from most of the United States. It is easy to see why independent consumer review sites like Top Consumer Reviews and Top Ten Reviews have NDR listed as the number one debt consolidation or debt relief company among all the companies they have reviewed.

Let’s take a look at some more customer reviews:

“Great, I was given options on how to settle my debt which made my decision much easier and enrolled in the program right away.”

“Customer support was excellent. The consultant was kind, patient and courteous. He explained everything to me and if I didn’t understand he patiently went over it with a smile. Thank you”

“Just within the first minute or so the gentleman made me feel at ease and that he was there to help me. He made sure I understood everything and if need be repeat answers so I would understand. Before I even got off the phone I had the contract in my e-mail box for me to look over. I would definitely recommend this company to anyone looking for assistance.”

“Yes I would recommend National Debt Relief to anyone, my counselor was amazing and very informative, and had everything done and approved in just 24 hours! Absolutely amazing and very satisfied so far.”

“This was a difficult decision for me as I had never encountered financial problems to this extent in the past. Speaking with the representatives at NDR was a pleasure because they were professional, courteous, knowledgeable, respectful, and genuine. My concerns were addressed each time I called to ask questions. I received empathy and understanding. I appreciate the level of professionalism and pray that this will resolve the bulk of my financial distress. I greatly appreciate this service.”

“I can’t think of a better experience I’ve had from start to finish with any other company. From the first call, Paul immediately felt my hesitation and was very frank, honest, and not ‘preachy’ at all. Everyone I have dealt with have been polite, professional, courteous, and prompt. When Paul didn’t have time to answer an email one afternoon, he called me directly to address my questions for my better peace of mind. Without a doubt the best customer service and most compassionately professional experience I’ve ever had in my adult life.”

“I had an excellent experience with National Debt Relief, they stayed in contact with me through out the process, were honest about what I could expect and the entire staff was there to answer any questions I had. If I ever get myself in this situation again (which I hope I won’t) I would use NDR again and would recommend them to anyone who found themselves in a similar situation.”

“would definitely recommend to others at this stage of the agreement..entire staff was courteous and understood my need and what we are going through financially..staff was professional and very knowledgeable answering any questions that we had concerning debt and how program works..we are very encouraged about getting out of this huge debt and avoiding bankruptcy..thank you”

So as you can see, National Debt Relief may be your best bet for getting out of debt. One of the best features of their program is there are no upfront fees. So you can get started without paying anything out of pocket. If for some reason, if you are ever unsatisfied, you can cancel the program without any penalty or fees.

NDR does not collect any fees until you see your debt reduced. You need to see results before they will get paid. So if you don’t get your debt reduced, they don’t get paid. What could be more fair than that? You can give them a call at 1-888-703-4948 or visit them at and get a free consultation with no obligation. They will take the time to answer all your questions without judging you. They will patiently explain all of your options and recommend the best one for your situation.

There is also a qualification process that all potential clients must go through to verify they will be a good fit for the debt consolidation program. This helps consumers like you because you are not forced into a program where you are setup for failure. They will only put you into a debt relief plan if it makes sense.

So after reading all these reviews of National Debt Relief your next step is to contact them and see if they can help you. If you are struggling with a financial hardship such as unmanageable credit card debt, mounting medical bills or other unsecured debts, call NDR and see how they can help you with your debt problems.

Getting pre-bankruptcy counseling – The importance of going through this process

Are you someone who is about to file bankruptcy? If you’ve not been able to manage your debts and you’ve chosen the last resort as an option to start afresh, you require going through the process of credit counseling so that you can easily file a certificate with the court along with the petition of bankruptcy. Most consumers need to pay a credit counseling fee in order to complete this process but there is a website called through which you can get counseling free of cost.  Read on the concerns of this article in order to know more on pre-bankruptcy counseling.

Is this a process of making bankruptcy accessible to the hapless debtors?

Yes, there have been reports that there are too many debtors who have been literally forced to file bankruptcy in spite of going through a financial state that could easily be rejuvenated through the other debt relief options. The Department of Justice’s US Trustee Program approves certain firms and allows them to offer credit counselor and education to the debtors before they take the plunge. Only those particular counselors who appear on the list of the US Trustee Program are able to provide counseling to the distressed debtors.

The requirements for credit counseling and debtor education

Both pre-discharge debtor education and pre-bankruptcy credit counseling might not be offered at the same time as credit counseling usually offers just before you file for bankruptcy. Debtor education is something that takes place after you file bankruptcy and this will teach you facts about bankruptcy.  When you file for bankruptcy, you should file a certificate that will prove that you have completed the credit counseling session as this will be an evidence to the court. In order to protect yourself against any kind of fraud, you should ensure that the certificates are numbers and they’re even produced through an automated system.

Pre-bankruptcy counseling – What does this entail?

Before you file bankruptcy, the credit counselor will evaluate your present financial condition, discuss all the other alternatives to bankruptcy that you could have chosen in order to restore your financial state. He will also devise you a budget plan. A typical counseling session with the expert credit counselor should last for at least 60-90 minutes and this can take place either in person, or on the phone or even online. For all those debtors who can’t afford to pay off the fees, credit counseling is offered free of cost, or else you might be charged for going through this session, which is usually $50. Once you complete credit counseling, you need a proof. You can log into the US Trustee’s website in order to be sure that you receive the certificate from the mentioned organization. The credit counseling organizations aren’t supposed to file an extra charge for the certificate.

So, before you take the plunge into the bankruptcy bandwagon, ensure going through the discussions before filing for insolvency in order to be sure whether or not this is the best option for your present financial state. Take informed decisions about your finances and take immediate steps to start rebuilding your credit after going through bankruptcy so as to become creditworthy yet again.

5 Ways How You Can Avoid Bankruptcy

Even if you’re at the end of your financial rope and feel like there’s nothing left to do but give in and start over, the prospect of bankruptcy probably terrifies you. There’s a good reason for this fear. Bankruptcy is a highly invasive, embarrassing and financially-devastating process that can affect your personal relationships and financial health for years on end.

For years, bankruptcy was the only acceptable means of escaping from serious debt. It was a necessary evil: Folks declared bankruptcy when it became clear that they could no longer outrun their obligations. In many cases, creditors would actually petition a court to force delinquent borrowers to declare bankruptcy.

While this still occurs on occasion, it’s less common than in the past. Today, most people voluntarily declare bankruptcy. If you’re just barely keeping up with your debts, you may be thinking about taking the plunge and accepting the consequences too.

Bankruptcy should be your last resort. There are plenty of simple steps that you can take to try to solve your debt problems on your own or with the help of a trusted partner. Read on to learn about five of the most common ways to avoid bankruptcy.

1. Self-Directed Debt Management

Self-directed debt management may help you regain control of your finances. The concept of debt management is simple: It involves paying down each of your unsecured debts beginning with your most expensive credit facility and ending with your least expensive loan.

Your debt management plan will demand discipline. You’ll need to continue making the minimum payments on each of your other debts while you’re focusing on your most expensive obligations. No matter how hard you try, you may not be able to muster the financial firepower necessary to stop your balances from growing further during this process.

2. Budgeting

Debt management may be more effective when combined with a frugal household budget. Start by thinking up common-sense ways to save on your day-to-day and month-to-month expenses. These might include turning off the lights and television before heading upstairs for bed and running full loads of laundry to cut your utility bills. If you aren’t doing so already, be sure to buy more generic foodstuffs and cleaning products at the grocery store as well.

Strengthen your budget further by looking for ways to increase your total household income. Pick up a weekend job to supplement your full-time salary or take advantage of a pre-existing talent to hire yourself out as a consultant or freelancer. Even a few hundred extra dollars per month might provide you with some financial breathing room.

3. Debt Consolidation Loans

You can try two managed methods of debt relief as well. If your debt load exceeds $10,000, shop around for a debt consolidation loan that you can use to pay off your existing creditors and transfer your disparate debts into a single fixed-rate credit facility.

Debt consolidation loans dispense with the financial clutter that can make it easy to miss payments or ignore collection notices. Unfortunately, they can be extremely expensive. Unless you have decent credit, your debt consolidation loan might actually cost more than your current basket of debts. What’s more, these products often take five to seven years to repay.

4. Credit Counseling

Credit counseling is known as a more consumer-focused debt relief option. Most credit counseling agencies are not-for-profit and maintain close ties with the lending industry, which increases their leverage in the interest-rate negotiations in which they’ll engage on your behalf.

However, their nonprofit tax status doesn’t make them affordable. Credit counselors’ fees may tack hundreds or thousands of dollars on to the cost of your debt. These added expenses may eat into the savings that they’re able to wring out of your creditors. Like debt consolidation loans, credit counselors’ repayment plans may last for five to seven years.

5. Debt Settlement

Your debts may demand a more aggressive solution than anything that you’ve tried thus far. It’s no accident that many financial experts recommend debt settlement as a superior alternative to bankruptcy.

Debt settlement is unlike other forms of managed debt relief for several reasons. It’s designed to go beyond the interest-rate tweaks common to credit counseling and reduce the total amount that you owe on your outstanding loans. Past debt settlement customers have seen their debts reduced by thousands of dollars using this method.

Debt settlement also takes less time than other forms of debt consolidation. Consolidation loans and counseling typically take five to seven years to produce favorable results. During this lengthy interim, any outstanding debts will continue to accrue interest. On the other hand, debt settlement takes just 24 to 48 months and involves no additional accrual of interest.

If you’re intrigued by the idea of debt settlement, pick up the phone and call today to learn more about the process. It could be the most important phone call of your life.

Credit Counseling vs. Debt Settlement

If you’ve found your way to this page, you’ve probably reached some conclusions about your debt exposure. For starters, you’ve decided that the growth of your debts is untenable. You know that you can’t continue to maintain your current financial trajectory for very long. You may realize that you’re just a few late payments away from insolvency.

Whatever the reasons for your current debt troubles, you recognize that you need to do something about them before things get any worse. Fortunately, you have plenty of debt-fighting options from which to choose. One of them might just save your finances from complete ruin.

Not all methods of debt relief are created equal. In fact, there exists a bewildering array of often contradictory debt relief programs and services out there. The information surrounding some of these services is sketchy at best.

The quality and accuracy of the information that you receive about various methods of debt relief is dependent upon its source. Some folks have a vested interest in telling you what you want to hear about a specific program of debt relief. Others simply tell you what they want you to believe.

You deserve some hard answers about getting out of debt. Read on to learn about the advantages and drawbacks of two of the most popular forms of debt relief: credit counseling and debt settlement.

Credit counseling is generally provided by nonprofit “credit counselors” that maintain close ties with many banks and credit card companies. Many of these organizations receive their funding directly from these lenders.

While some feel that this creates a conflict of interest for the credit counseling organizations, there’s little evidence that lenders use credit counseling agencies to manipulate their delinquent customers. In fact, these ties might actually help credit counselors negotiate favorable outcomes for their clients.

If you choose to sign on with a reputable credit counselor, you’ll need to be open to making some changes to your lifestyle. In exchange for analyzing your debts and crafting a manageable repayment plan, your credit counselor will want you to make deep cuts to your household budget. Of course, you should be cutting back on your spending anyway.

One of credit counseling’s major advantages is its flexibility. Unlike debt consolidation lenders, which rarely lend in tranches smaller than $10,000, credit counselors will accept customers who carry relatively small loads of debt. For clients who can’t afford balances of even a few thousand dollars, this openness can be lifesaving.

Your credit counselor’s primary function is to persuade your creditors to reduce the interest rates on your debts. In some cases, your creditors will be more than happy to do this. Unfortunately, many major lenders have a history of resisting such negotiations. If your credit counselor is unable to secure an interest-rate reduction on a particular credit facility, you’ll still be responsible for paying it off on its original timetable.

All of your reduced-rate debts will be included in your repayment plan. Instead of sending multiple checks to various lenders each month, you’ll need to hand over just one monthly payment to your credit counselor.

Unfortunately, this can stretch out your repayment window. Many credit counseling plans take as long as seven years to reach their natural conclusion. In the meantime, all of the repackaged debts continue to accrue interest. This longer repayment period may negate any savings negotiated by your counselor. Over time, your counselor is also liable to charge you hefty fees for its services.

In addition, the credit counseling process can be unforgiving. Even one missed monthly installment could nullify your entire repayment plan. Were this to occur, you’d be right back where you started.

Debt settlement may offer a cheaper and more efficient way out of debt. Unlike credit counselors, debt settlement providers work to lower the actual principal balances on your unsecured debts.

Since debt settlement negotiators are seasoned professionals that understand exactly how to pressure creditors to accept their offers, the process produces fast results. Depending upon the size and scope of your debt problem, debt settlement may put you on track to pay off your debts in just 24 to 48 months.

Unlike some other forms of debt relief, debt settlement is recognized as a favorable alternative to bankruptcy. While both processes will negatively impact your credit score, bankruptcy’s impact is likely to be more severe. You may have difficulty getting a low-interest loan for as long as seven to 10 years after filing for bankruptcy.

On the other hand, you’ll be able to begin rebuilding your credit as soon as you’ve paid off your debts using the debt settlement process. In fact, even most creditors prefer that their clients pursue debt settlement over personal bankruptcy. Credit card issuers and other purveyors of unsecured credit facilities rarely receive much compensation for debts discharged in bankruptcy.

Take the first step towards controlling your personal debt crisis. Call today to learn more about your debt settlement options.

How to Get Out of Debt Faster

After years of struggling to keep up with your bills, you’ve finally realized that there’s no magic bullet that will eliminate your debts. If there were such a quick solution, Americans would have more spending money and most credit card companies would be out of business.

However, there are plenty of so-called debt relief methods. Some of these solutions may be worse than the disease that they purport to cure.

Debt consolidation loans may be one of these less-than-ideal solutions. Over the five to seven years that they take to pay off in full, debt consolidation loans may actually increase the total cost of your debt burden.

Other debt relief solutions offer inconsistent results. Credit counseling services brag that they’ll negotiate directly with your creditors to reduce your interest rates and craft gentler repayment plans. Since these nonprofit organizations often maintain close ties with the country’s biggest credit card companies, it might appear that they have the wherewithal to do so.

It’s true that credit counselors are often able to secure impressive reductions in the interest rates that their customers pay on certain credit facilities. Some credit counseling customers report seeing their average effective interest rates slashed in half.

An annual interest rate reduction of 10 percent on a balance of $5,000 would save $500 per year. That’s not insignificant.

It also may not be typical. Many creditors are unwilling to agree to new payment plans for their customers. Those that do may make up for the initial interest-rate hit that they take by extending these repayment plans for years. They may recoup their losses by charging interest for longer periods of time.

Before you agree to invest your time and money in a debt relief method that may not end up doing much good, try to work out your debt problems on your own. Start by setting up a frugal but realistic household budget and keeping a close eye on your family’s finances.

First, figure out what you can afford to spend each month. Determine your average monthly earnings, including any special payments like interest and dividends.

The next step may be tougher: You’ll need to figure out what you must spend each month in order to maintain your standard of living. Tally up your household’s fixed expenses, including your utility bills, mortgage payments, car payments and insurance costs. This should reduce your available pool of money by a significant amount.

Next, determine what your unsecured debts are costing you. Add up the total monthly amount that you devote to your outstanding credit cards, medical bills and past judgments. If you’re barely making the minimum payments on these obligations and you still can’t seem to get them under control, this may be a warning sign.

After subtracting all of these obligations, you’ll be left with your household’s spending money. You’ll need to use these funds to pay for groceries, clothing, school supplies and other necessities as well as luxuries like restaurant meals and nights out on the town.

You can stretch these funds by purchasing generic food and cleaning products at the grocery store, increasing the number of meals that you eat at home, and taking steps to conserve water and electricity.

Ideally, you should devote all of the money that you save using these cost-cutting measures to paying down your debts. If your balances remain high, they’ll accrue more interest and take more money out of your pocket.

Be sure to stop using your credit cards before starting the process of paying them off in full. Keep just one card for dire emergencies.

While your new-found frugality may prove promising, you’ll probably need a little extra push to put your debts behind you for good. Debt settlement can provide that push. Unlike other costly forms of debt relief, debt settlement doesn’t require any upfront investment and won’t cost you a dime until you’re well on your way to financial freedom.

When you sign up for a program of debt settlement, your friendly debt negotiator will contact your creditors and begin to work out settlements with each. Your creditors will immediately stop calling and sending threatening letters.

While every case is different, you can expect your debt settlement program to wrap up in just two to four years. You may end up owing your creditors 50 percent or less of your original debt balances. You’ll finally be able to put your debt nightmare behind you and begin saving for the future once again.

Supplement your new household budget with a powerful program of debt settlement. Call today to learn more and get ready to begin a new debt-free chapter of your life.

Bankruptcy vs. Debt Settlement

Debt can be all-encompassing and ever-present. Many people who have suffered through years of accumulating bills, harassing collection-agency calls and brutal financial compromises describe debt as a small body of water that won’t stop growing.

At first, the cool water might seem inviting on a hot day. Since you think you know where the other side lies, you don’t worry much about swimming away from the shore. After all, you’ll be able to get back with just a few minutes of effort.

Of course, you don’t realize that the lake is getting bigger as you swim away. After a while, you look up and discover that you can barely see the shore that you left earlier. You can’t even see the other side anymore.

Try as you might, you can’t seem to make it back to dry land. The best that you can do is to swim parallel to the shore. You feel as if you’re destined to move sideways forever. You wonder whether you should just give up and let go.

Like the lake, debt has a funny way of growing right under your nose. At a certain point, fighting its relentless expansion might seem like a losing proposition. If you have trouble making your minimum payments each month and worry about your continued ability to provide for your family, you may be thinking about giving up and declaring bankruptcy.

When you declare bankruptcy, you’ll open your private finances to the scrutiny of a curious public. Your bankruptcy filing will be a matter of public record: A full accounting of the discharge of your debts must be made available for interested parties to peruse in perpetuity.

Unless you have very few assets to your name, you stand to lose most of your possessions and available cash reserves to your creditors. Once your filing has become official, your bankruptcy judge will first divide some of your assets among your secured creditors.

For instance, any of the equity that you’ve managed to build up in your home will be wiped away. Your mortgage lender may then foreclose on the property. If you have an outstanding car loan, your auto lender may seize your vehicle in lieu of repayment.

Your unsecured creditors will be next in line. These may include your credit card issuers, payday lenders, and medical providers. They’ll take most of what remains of your assets. While you’ll be able to “exempt” or shield a modest amount of your property from your creditors, this exemption won’t begin to replace the memories that you’ll lose during the course of the bankruptcy process.

Once your debts have been discharged, you’ll face a lengthy financial recovery. Your credit score will be seriously damaged, making it hard for you to secure new credit facilities that might help you get your life back on track. Since many employers now run extensive background checks before making new hires or approving promotions, you may even have trouble finding new work or earning a security clearance at your current job.

Bankruptcy is the financial equivalent of accepting that you’ll never make your way back to the shore of your imaginary ever-expanding lake. While bankruptcy might seem like the easiest route out of debt, your decision to declare yourself insolvent assumes that you don’t have any other options.

You do have other options. In fact, you might just be able to build yourself the financial equivalent of a motorboat and power your way out of debt.

Debt settlement can be your motorboat. While the debt settlement process may negatively affect your credit in the short run, its effects won’t be as serious as those of bankruptcy.

The debt settlement process also occurs out of the view of the general public. It may be less costly as well. Debt settlement helps you pay down your unsecured debts and may free up extra funds for you to remain current on your mortgage and car payment. Unlike bankruptcy, the debt settlement process may actually help you stay in your home.

Past debt settlement customers have seen their debts reduced in two to four years. Since your unsecured creditors want to resolve your financial problems and put your debts to rest just as badly as you do, these companies may be willing to settle for far less than they’re owed.

Best of all, debt settlement requires no upfront payments. Whereas you may have to retain a costly lawyer to navigate the bankruptcy process, your debt settlement provider will ask for compensation only when your debts have been settled and your life is back on track.

Don’t put off the most important phone call of your life any longer. Talk to a debt settlement professional today and learn more about this powerful process.

What Is Debt Settlement Debt Negotiation?

Many folks who struggle with serious consumer debt loads can’t even remember how their troubles began. Credit card debt has a way of building slowly over time.

The slow process of debt accumulation becomes worrisome when it’s repeated multiple times across many different high-interest credit facilities. After all, five credit cards that each carry monthly balances of $2,000 combine to form a $10,000 load of unsecured debt.

The consumer credit bureaus responsible for evaluating your financial profile and issuing your credit score don’t like to see this sort of slowly-building debt. These organizations prefer that you maintain low balances on your credit cards and avoid approaching their spending limits. In fact, they’d like you to keep your total credit use to under 30 percent of your total available credit limit.

If you’ve already blown past the 30 percent mark, you’re not alone. Millions of Americans spend far too much on their credit cards and other unsecured credit facilities.

Unfortunately, your problems will only get worse as you max out your traditional credit cards. With your credit score plummeting thanks to the harsh judgment of the credit bureaus, you may find it difficult to open new credit card accounts. You’ll be shut out of the mainstream credit markets at precisely the moment that you most need the help.

This rejection might drive you into the arms of unsavory creditors that prey upon the misfortunes of the deeply-indebted. As long as you’re willing to pay through the nose for it, payday lenders and “cash advance” stores will always provide you with credit.

It’s painfully easy to become trapped in a cycle of payday loan debt. Compared to your neighborhood payday lender, the typical credit card company looks downright responsible. Payday lenders may charge you the equivalent of 500 percent annual interest on each two-week loan that they extend to you.

If you choose to “roll over” your old balance into a new loan, you’ll pay additional fees and further deepen your debt cycle. Once you start relying on payday loans to cover your day-to-day expenses, you may find yourself staring into the financial abyss.

Regardless of how dark your situation may appear, it would be foolish for you to abandon all hope of mounting a financial comeback. If you give up and declare bankruptcy, you’ll be faced with years of bad credit and curtailed freedom. It may take seven years or more for you to get back on your feet.

You may not need to declare bankruptcy to get your finances back on track. There’s an effective private alternative to the court-sanctioned redistribution of your assets. Known alternatively as “debt settlement” or “debt negotiation,” it may offer benefits for both you and your unsecured creditors.

The debt settlement process may be faster, cheaper and more effective than other forms of debt relief like debt consolidation loans and credit counseling. It involves negotiating directly with your creditors to reduce the combined principal and interest balances on your outstanding debts.

You might be surprised to learn that your creditors are willing to accept less than what you owe on your unsecured debts. After all that your creditors have done to make your life miserable, it may seem strange that these companies would take a potentially serious bottom-line hit to help you escape from debt.

Of course, your creditors don’t negotiate out of sympathy with your financial goals. They negotiate settlements on your outstanding debts out of pure self-interest.

Once you initiate the debt settlement process, your creditors know that you’re perilously close to insolvency. If they refuse to settle your debts, you could be forced to declare bankruptcy. Once that happens, the keepers of your unsecured debts will be lucky to recover 10 cents for every dollar of your original balances.

As a sign of good faith, most of your creditors will stop trying to collect on your debts as soon as you initiate the debt settlement process. Eventually, most will prove willing to settle for a fraction of your original balances.

One of the principal advantages of the debt settlement process is its speed. After all, your creditors want to put your debts to bed just as badly as you do. Depending upon the size of your debt load and the number of creditors involved, your debt settlement case could take just 24 to 48 months.

Your financial future is too important to leave to chance. Talk to a debt settlement provider today to learn more about this powerful process.