Debt Settlement? Or, a better option?
Has anyone done debt settlement? If so, what company did you use? And, what type of experience did you you have with it?
Know of a better option?
Thank you! :o)
Hello, Hayden’s Mommy!! 😀
First, you should know that bankruptcy is NOT the answer. Bankruptcy should be considered only as a last resort because the effects of filing for bankruptcy are long-lasting – up to 10 years in certain states. A few years ago the rules for filing bankruptcy changed, and it is now harder than ever to wipe the slate clean.
So when it comes to debt problems, you basically have 2 options: debt settlement and debt consolidation.
Debt settlement and debt consolidation both offer ways of reducing your debt. Debt settlement eliminates your debt, while debt consolidation reduces interest rates. While debt consolidation might work for some, there are cases when debt settlement is a better option.
The goal of both debt settlement and debt consolidation is to lower your debt. Debt settlement companies negotiate with your creditors to reduce the amount of your loans. Debt settlement can reduce your debt 10% to 50%. To get the most out of the program, pay off the rest of your debt as soon as possible. Also, close accounts that you don’t plan on using to raise your credit score.
Debt consolidation pays off your high interest debts with a low interest loan. Home equity loans provide the lowest rates, but personal loans can also be used. With rates lower on your debt, you can pay off the principal sooner by making the same monthly payments.
Credit Score Implications
Both debt settlement and debt consolidation will have a slight impact on your credit score. Since your debt isn’t actually increasing, you will only be hit for opening another account. By closing your paid off accounts, you can partially offset the penalty. In a short period though, you will be in good credit standing if you follow best practices with your credit.
No one financial choice fits everyone’s needs. While debt consolidation might work for some, debt settlement might work better for others. In extreme cases, debt settlement can help to avoid bankruptcy. And if you need additional advice, talk to a credit counselor who can take a look at your finances and offer suggestions.
You can learn more with the resources below.
Good luck!! 😀
my husband and i arent really deep in debt maybe 25000 but i would liketo consolidate our debt ne way. does anyone know of anything that might help? banks etc. btw our credit is not great.
Unless you own a home I would not suggest getting a debt consolidation loan. It would be better to cut up all of your credit cards but one for emergencies. Than either start with the highest interest or the lowest value and pay it off first than roll that money into the next debt that you want to eliminate. With poor credit and the tightening of the lending you could end up in the 25% range of interest especially if it is unsecured.
debt question please!!!?
has any one heard of the debt program transforming your debt into wealth by john cummuta? i have heard aboput it on the radio and online and i want to try it so bad, but i just don’t have the money to pay for the course? does any one know where i can get it any cheaper or maybe someone has it and has used it and wants to pass iton to someone who really needs it… i know that sounds so weird but if that was the case i promise i would give it back, I’m just so desperate and i’m trying to get a handle in my life and im barley making it as it is, and i dont even have anything put away for teh future because i don’t make enough. can anyonme please help me!!!!! thankyou so much
I really do not think that any other place sells it cheaper but the system is a lot of common sense stuff. I baught it as well out of curiosity and I was a little impressed but not a lot because the stuff I was already doing to eliminate my debt is what he was talking about. For example if you have 10 creditors you need to eliminate it just tells you to send any extra cash you can and when your done paying that one off move on to the next one send the next creditor on your list what you were sending the last creditor plus what you are currently sending them. Lets say you were sending the creditor you paid off $150 and you are sending the next creditor in line $50 dollars then you will be sending them $200 dollars the other creditors you just send them the min. Until you get to them. You also need to cut up your credit cards as you go or before just to keep one for emergancies but freeze it so that you can not get to it right away. It is just stuff like that which is common sense. Now after you pay off all of your debt than you have money to invest and he goes on to show you how you can invest smartly and so on.
Could Obama eliminate the national debt if he allowed citizens to take pot shots at him with pantballs?
If he would allow this every month and charge just $500 for a couple of shots he could pay off all of the people who got him elected instead of bankrupting our children. He could raise almost 1 trillion a year if only the people that voted against him took the shots but I am sure with the way he is doing right now a few might cross over and take a couple of revenge shots because of their higher power and gas bill due to the cap -in trade
I wouldn’t be opposed if Bush and Chanyey were still in office letting them do this fundraiser as well.
I think Obama could eliminate the national debt if he just allowed citizens to take pot.
By the way, if Obama only allowed one shot for $500, he’d still have to be hit by 2 billion paintballs to earn $1 trillion. That averages to 63-64 paintball hits per second to make $1 trillion per year. Even if he could survive such a barrage, that wouldn’t leave him much time to do everything else he is responsible for as president.
Does the U.S. need to eliminate its debt?
Does it concretely matter that the U.S. is in so much debt? Why?
Would we better off if we paid off (magically or otherwise) all our debts today? How would this affect me?
It can matter, it is not really a serious problem, which is why people in Government do not worry to much.
Firstly Terrell just shows his ignorance of what the National Debt is and his Political prejudice, neither Bush Presidents made much difference to the National Debt.
Like UK who effectively invented the National Debt as a way for Governments to spend more than they had in Cash in hand, the U.S National Debt has been rising even when the good times were there.
Does it matter, only in how much Tax you pay, reduce the debt and Tax would reduce, however there come a point of diminishing returns, in other words, once a chunk of debt is repaid, the next chunk does not gain the Tax payer as much benefit and so on.
UK started the whole bally thing in the 17th Century, when the Bank of England was formed, this was done by ‘Public Subscription’, simply put, the average Joe or Jill bought shares in the B of E. (the original list of subscribers can be seen at the Public records office) but here was the real trick, basically you bought say £100 in shares, which was lent to the British Government, however just like a Bank, you were really just depositing the money so could use it for other things, and every year you got a dividend payout on the £100, so in effect £200 was now being used and you gained another 5% or however much the interest payments were at the time .
The majority of the US debt is owned by US citizens, (if you have a pension or insurance plan you probably own some of the debt) does the US need to eliminate the National debt not totally, but a big reduction would help reduce your Tax bill.
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