• Try and manage their current debt themselves – in other words tighten their belt and spending habits.
• Debt consolidation loan – this would combine all outstanding unsecured debt into a single payment loan. The problem is can the consumer qualify for a new loan with no job or financial hardship issue.
• Refinance or Home Equity loan – This might work, if the consumer has enough equity in their home, however the repayment may be an issue.
• Credit counseling service – This program acts like a debt consolidation loan. The consumer pays a third party company who in turns pays a small or set percent each month to the lenders until all the balances are pay off. In addition, there is credit counseling for the debtor and this will also have an affect on your credit score.
• Bankruptcy – This is the most serious and the final step that a consumer should consider. The consumer needs to discuss with an attorney all facets of bankruptcy since it will cover all debts, both secured and unsecured.
• Debt settlement – This is a program by which a third party negotiates with the lender in order to reduce the outstanding balances on unsecured credit cards.

Here is a brief overview of the debt settlement process:

• The consumer needs to have a full and complete understanding of the process. The debt settlement company needs to explain all the in’s and out’s of the program.
• A “trust/escrow” account is established an a set amount in place in the account. Normally, this is less than the combined minimum monthly payments.
• After at least half of the lowest outstanding credit card balance is in the account then the debt settlement company begins to negotiate with the lender. The debt may be reduced by up to 40 to 50 percent. In most cases, the lender would rather have at least a partial payment at one time than receive nothing if the consumer files bankruptcy.
• This process is repeated until all debts are negotiated. This process can take between 12 to 48 months. It’s not a quick or easy fix however it will assist the consumer.

In the past, the consumer has been paying the 2 percent minimum monthly payment, it would take years to just payoff their current balances. So at the direction of the federal government, most credit-card companies are increasing the amount of the consumer minimum payment from 2 percent to 4 to 5 percent. The good news is in a good economic or without financial hardship by paying a higher monthly payment you’ll pay off your debt more quickly. The bad news: Your now have the additional burden of coming up with more money each month.

This is not a quick fix or easy step for the consumer. This program can take been 12 to 48 months depending on the consumer’s obligations. Basically, the program requires the consumer to place a set dollar amount aside each month into a “trust/escrow” account. Once there is at least half of your lowest credit card balance, then the debt settlement expert will start to negotiate with your lender. The key to this program is that the lenders are more likely to accept some monies from the consumer than receiving nothing from the consumer if they file bankruptcy. Under bankruptcy, normally the secured lenders receive their monies first and in most cases the unsecured lenders receive up to little or nothing. By receiving nothing, the lenders have to write this off as a loss or bad debt on their financial statements.

The debt settlement program is a better option than bankruptcy for most consumers. If a consumer is considering bankruptcy they should consult an attorney before taking this step. Whereas a debt settlement program will allow a third party to negotiate on behalf of the consumer for a settlement of up to 50 percent off their current outstanding balances.

Contact a representative today!!

One of the ways to get relief is to use a debt settlement program. This program is not an easy fix or an overnight miracle for the consumer, this program can take between 12 to 48 months depending on the size of your debt. Basically the debt settlement program works with the consumer to establish a payment plan by which monies are placed monthly into a “trust/escrow account.” When a less half of the monies owed to a lender on your lowest balance credit card, then the debt settlement expert will begin to negotiate on the consumer’s behalf. The monthly payments into the account are normally much less than the current minimum monthly credit card payments. The debt settlement company is usually able to negotiate a 40 to 50 percent reduction of the consumer’s debt.

As a consumer you are asking why, would a lender expect this type of negotiation? The underlying answer is the lenders are more willing to take something against the outstanding debt than to have the consumer file bankruptcy. Normally, when a consumer files bankruptcy, the secured creditors are pay first from the consumer’s assets and the unsecured creditors receive little to nothing from the consumer. It is a win-win for everyone, the consumer and the lender.

Before entering into any program, the consumer needs to understand how the program works and its affect on them. Debt settlement may not work for everyone. It is not a quick fix or overnight miracle for the consumer. So if anyone tells you they can wipe way your debt instantly or in less than one month. You need to seek out another company, since the process can take between 12 months to 48 months.

When you sign up with a debt settlement company, the consumer should ask the following questions:

• How long has they been in business
• Is the staff trained and certified
• What are the exact fees for this service
• What is the name of the bank and officer responsible for the trust account
• Are they listed with the Better Business Bureau
• Who will exactly be handling my account
• Ask for a contact list for the company

A legitimate business should able and willing to answer any questions you might have about their services. Also how your account will be handled on either a day to day bases or monthly bases once you have established the parameters.

The key to a successful resolution to your financial situation is to understand the progress and know the debt settlement company you are working with.

Again, this is no easy progress, but with determination and a willingness to solve the problem. A debt settlement program can and will work for you and your family.

Of course the consumer is asking “Is this possible?” If we take a quick review of what it is costing the consumer on their unsecured credit cards. For example:

• Credit Card debt of $30,000
• 3 years of interest at 19% is $17,100
• 5 years of interest at 19% is $28,500

The above interest figures do not calculate any principal reduction on the $30,000 outstanding. So you can see that you are not making any headway on reducing your debt only adding to your financial situation.

If you have faced a financial hardship, then consider using the debt settlement method. Under a debt settlement program, a third party will negotiate with the lenders to reduce you debt possible up 50%. This would mean you would cut your outstanding balances in half and would save up to $17,100 or $28,500 over the next three to five years.

Here is an example of a possible monthly program:

• Credit card debt reduced from $30,000 to $15,000
• Minimum monthly payments of $700.00 for 24 months*
• Minimum monthly payments of $500.00 for 36 months*
o *This figures are an estimate only

Debt settlement may not be the right program for everyone. However as a consumer, you need to call an expert today to discuss a program that is right for you and your family.

So during these trying economic times, the consumer is not only stressed out because of their job lost but their inability to meet their obligations. The consumer must decide what is best for them and their family. Because of the emotional toll it is taking on them.

As what is debt settlement? Debt settlement is a managed approach used by a third party company. This company will negotiate on behalf of the consumer to reduce their debt by up to 50% of the outstanding current balance. Basically, the consumer places a set amount of money each month into a “trust account” until approximately half of what is owe on their lowest credit card balance. It is when the debt settlement company will start to negotiate with the lenders. The lenders are more willing to take something on the balances than have the consumer file bankruptcy on them. In a bankruptcy case, depending on the assets of the consumer, normally secured lenders get repaid first then the unsecured lenders. In most cases, the unsecured lenders receive no money from the consumer.

The consumer wants to do the right thing not only for themselves but their families. A debt settlement program can take from 12 months to 48 months to complete based upon the outstanding credit card balances. This program may cost the consumer less than their current monthly minimum payments. It is not a quick fix program but a program that will allow the consumer the ability to repay their debt and repair their credit score.

I started to investigate difference methods and face the fact that I need to ask questions and make the correct decision – because walking away was not and is not the right thing to do.

The most often methods discussed for consumers in trouble are:

• Consolidation Loan
• Home Equity Loan
• Consumer Consulting Services
• Bankruptcy
• Debt Settlement

In guess in a prefect world, the first three programs would help me rearrange my financial situation. Since I would have money or equity in my residence to qualify for a loan or I need assistance in understanding how to better manage my money.

However, that is not the case. Bankruptcy should always be the last step when considering how to get out of debt. As a consumer, I do not want to walk away from my debt but somehow pay them back to the lenders. Bankruptcy needs to be discussed with an attorney, who can explain the legal process and its affect on the consumer.

Therefore, debt settlement was a more managed approach to resolving my financial situation. Debt settlement established a set timeline and monthly payment amount which I would afford based upon using an estimated negotiated settlement program. My debt settlement company used a conservative estimated of what the lender might be willing to settle the account for.

This is not a quick fix however the one lesson learned during this financial downturn was to tighten my belt and save for the future. I should use my credit cards only when I can actually repay each month what I spend on the card. I have learned my lesson.

The other methods which the consumer may consider are:

• Trying to manage their current debt themselves
• Debt consolidation loan
• Home Equity Loan
• Credit consulting
• Bankruptcy
• Debt Settlement

No consumer wants to file bankruptcy since that is the last course of action for the individual and their families. If you do consider bankruptcy, then consult an attorney for all the facts about this process.

Basically, if the consumer had enough cash flow to meet their current financial obligations they would not necessarily need the above programs. However, due to certain financial hardships, the consumer is not longer able to meet their monthly obligations. This hardship has been caused by loss of job, medical emergency or death in the family,

Debt settlement is an easier way to resolve the consumer’s obligations. It is a method by which the unsecured debt is negotiated by a third party with the various credit card lenders. In most cases, the lenders are willing to negotiate a settlement of approximately 50% of what you owe on the obligations. This is not a quick fix or an overnight process in reducing the consumer debt. A debt settlement program can take between 12 to 48 months depending on the number of credit cards and the dollar amount outstanding.

If the consumer is willing to work the program, then debt settlement is a way to proceed to reduce their debt.

Credit card debt is almost a way of life in today’s economical time’s. It’s so very easy to take out our credit cards and purchase everything from groceries to our utility bills on plastic. Some of the time people can pay these off the next month and they do not carry a balance moving forward . However, for others – this is just a way of life.

Needless to say, it’s common for the consumer to avoid the collection calls which further adds fuel to the fire because the collectors just become more aggressive in their tactics. You might even experience depression but you need to get back to reality and deal with the situation head on!!!

The consumer needs to toll up his sleeves and get ready to work hard. You need to rip up the credit cards and start by being honest with yourself and your creditors. It’s time to get proactive and deal with your situation now.

In visiting Dave Ramsey’s website I came upon this comment….”Laziness is a character flaw. You need to be willing to work and sacrifice in order to fix the situations that you created with your own irresponsibility. If you are not willing, then you cannot be helped.” I agree with this statement 100 percent.

Contact a consultant today so that can get you on your path of financial freedom today!!!

• I’m I ready to face the hard decisions about a solution?
• Is there are way off this financial treadmill?
• How do I get rid of the emotional baggage I’m carrying because of my debt?

As a consumer, you can’t feel like you’re the only survivor on the lost island. According to the American Bankers Association, ” delinquencies on consumer debt has hit a record 3.23%.” The percentage of borrowers at least 30 days late have hit its highest level in 35 years. In additional, consumer bankruptcy has increased by 22% from 2008 according to the American Bankruptcy Institute.

Consumers when faced this issue are reviewing their options. One of the options is debt settlement. Most consumer favor this program over bankruptcy. Bankruptcy should always be the last resort for the consumer. Plus if the consumer decides on this path they need the advice of any attorney.

Consumer are making decisions everyday that they need to get out of debt. The majority of consumers want to pay their financial obligations in full. This approach is currently not possible for some consumers. The reason being the current economic climate along with the new financial hardship faced by consumer.
When you discuss, debt settlement as an option. You will be told it will affect your credit score. This credit score is important to the consumer because its affects your ability to borrow money. David Leuthold, of The Association of Settlement Companies, indicates that many consumers seeking relief have already seen their scores plummet. “Basically, what they’re deciding by coming on to a debt-settlement program it more important than their credit score.”

If the consumer decides to use a debt settlement program. They need to know it’s not a quick fix and that they will need to tighten their belts. The consumer needs to know that if their financial situation improves then they can opt out of the program and get back on track with meeting their financial obligations.