Your Debt Relief is here!

The notion of debt negotiations – or, biblically, debt forgiveness – goes back thousands of years, but the modern versions of debt relief started in the late 80’s after governmental deregulation of the banking industry. At that point, previously unimaginable amounts of credit were made available to ordinary citizens irrespective of income or existing debts. There were, to be sure, economic benefits to the expansion of consumer spending, but a good number of borrowers found themselves unable to meet regular payments. At this point, several alternatives of debt management became popular.

There are many different ways to arrange for the relief of debt (whether unsecured loans, medical expenses, charge cards, or traditional credit accounts), and all solutions to debt relief have their own advantages and drawbacks. This website hopes to illuminate the various strategies available to you for attaining the debt relief that you seek with the least cost and quickest results.

Though media coverage of debt relief programs tends to lump them all together, there’s actually a great difference between the competing debt relief solutions. The debt settlement plan is often compared, for example, to bankruptcy (though without the crippling effects upon credit reports and FICO scores), and to consumer credit counseling (even though settlement seeks to reduce total debt-load rather than just interest rates) and but much separates the superficially similar methods.

Debt Settlement - Debt Settlement is the fastest and least expensive way to get out of debt. Often referred to as Debt Negotiation, Debt Settlement is a direct and ambitious approach to debt reduction and it is best suited for individuals that have considered filing for Bankruptcy protection...Debt Settlement continued

Bankruptcy - Bankruptcy should be considered only as a last resort. The effects of filing for Bankruptcy protection are long-lasting – up to 10 years in certain states. Recently the rules for filing Bankruptcy changed, and it is now harder than ever to “wipe the slate clean”...Bankruptcy continued

Debt Consolidation - Also called a Consolidation Loan, Debt Consolidation is the replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. Unfortunately the credit markets have tightened in recent months and if your FICO credit score is less than 660 your options for an unsecured Debt Consolidation Loan are going to be severely limited...Debt Consolidation continued

Credit Counseling - Consumer Credit Counseling companies are organizations that operate nonprofit financial counseling programs. Typically they will charge a fee for their services and they attempt to work with your creditors in order to reduce your interest rates and your minimum monthly payments. Recently, many credit counseling organizations have faced scrutiny because of their misuse as a "nonprofit" organization...Credit Counseling continued

Do Nothing - You struggle along while your creditors are turning up the heat. And now you’re at the point where the late fees, penalties and interest expense make it impossible to keep your head above water. That’s why you started looking for help. That’s why you are reading this page. The worst thing you can do at this point is to Do Nothing. You owe it to yourself to speak with a Debt Management professional as soon as possible...Do Nothing continued

Because debt settlement seems so painless, many consumers question the legality of eliminating debts they’ve consciously undertaken. Certainly, timely and complete repayment of all loans would be the most beneficial for all parties, but that’s simply not always possible. The government understands that, the creditors understand that (otherwise the program wouldn’t work), and the debt relief professionals you will speak with during your no obligation consultation will help you learn more about the relief procedure and why and how debt relief programs are increasingly popular in an uncertain economy.

Recent government legislation intended to protect consumers from unfair harassment (the Fair Debt Collections Practices Act), greatly limits collection agencies’ contact with consumers. Depending upon the state, there are regulations specifying when and how often collection agents can call, and, if the agency’s informed in writing that the borrower no longer wishes to be bothered, they’ll be legally restrained from any attempts. Furthermore, once the borrower begins working with debt relief companies, the debt collector will be forced to submit all correspondence to the settlement professional. FDCPA regulations force collection agencies to speak with whomever holds power of attorney within debt negotiations.

There’s no easy answer, but borrowers with elevated debt-to-income ratios certainly have a greater likelihood of immediate assistance. The probability of successful debt relief negotiations varies dramatically based upon the borrower’s home state, the specific debts accrued, and credit activity within the past year. Also, those debtors who have suffered recent accidents or injuries, underwent medical procedures, faced unexpected and/or lingering unemployment, underwent divorce, or went through any life-altering trauma that forced sudden dependence should expect creditors to look upon their situation with greater understanding.

Every borrower’s situation is different, but there are indications that drive most consumers to consider debt relief: sudden or lingering unemployment; health problems, sleeplessness, or familial conflicts due to mounting bills; inability to start new credit accounts; bounced checks or continually overdrawn bank accounts; regularly withdrawing cash advances from a credit card to pay minimum payments on other cards; all cards are nearing maximum balances; minimal or non-existent savings; utilizing credit for household purchases or utilities. Obviously, accounts sent to collection and harassment from debt collectors should be an immediate signal that there’s a problem. As a rule of thumb, if your debt-to-income or DTI ratio of unsecured debt reaches twenty-five percent, there’s likely a problem, and, if you’ve no idea as to your actual balances because you’ve been avoiding the statements, it’s time to speak with a debt relief company.