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Debt Consolidation vs. Debt Settlement
When you realize that you have a debt issue going on, you have several options to choose from; Bankruptcy, Debt Consolidation Loans, Consumer Credit Counseling Services, Do Nothing, or our preference Debt Settlement. Debt settlement offers you an intelligent solution to becoming debt free within a realistic time frame. This last option should always be considered as the best alternative in mind because of the consequences brought upon as result of the other options.
Debt Consolidation and Debt Settlement have their advantages and disadvantages. They both have one main objective in common, to free the consumer from debt. It is very important to completely understand how every step of the process works in order to know which to apply to.
the past few years of low mortgage rates, the term "debt consolidation" has been
used heavily by companies marketing home equity loans to help consumers
consolidate their debt. The term has been used in the credit counseling industry
and by a wider range of financial services companies.
Please Beware! Debt
consolidation makes your unsecured debt secured and you could lose everything!
In a typical debt management plan you deposit money each month with a credit management firm. These firms promise to hold your funds in a special account and pay the creditors on your behalf. While these firms often claim to be ©non-profit,© do not be deceived. They still receive payment for their work and are known to make inflated guarantees concerning their services. We are different. We are committed to providing the highest degree of service to our clients through full disclosure of all terms and conditions of our program. Our job is to analyze your debt situation and provide you with appropriate options. The goal of our program is to resolve your debts through compromise settlements, achieved through expert negotiation with your creditors. We only accept clients who have the potential to achieve significant financial benefits from participating in our program.
When is Debt Settlement your Best Option?
If you have pending balances with several creditors under $1000 each and owe less than $10,000 total unsecured debt, you should choose debt consolidation.
If you are in an amount of debt greater than $10,000, and do not see any possibility of repaying those accounts off, and taking bankruptcy into consideration, then you should opt for debt settlement.
In a debt consolidation program, the debt consolidator makes one loan to you to pay off all your debts. You are charged interest on this debt consolidation loan and in some cases you are still required to pay interest to your creditors. As a result, with debt consolidation your principal debt balance remains the same and you remain years away from becoming debt free. With a debt settlement program, our highly skilled negotiators work on your behalf to significantly reduce your debt. On the average, our debt settlement program allows consumers to pay 60% of what they owe, and resolve their debts within two to three years.
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