Got Debt? Here Are Your Options

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Lesson on “Options to Eliminate Debt” – CCCS, Debt Settlement, Bankruptcy… Corey Gray, CEO of Credit Assistance Network provides a quick and powerful lesson on your options to eliminate debt.

Options to Eliminate Debt
If you are in debt and pay only the minimum payments on high interest debt you should already understand that you are spinning your wheels and are going to take forever to pay off your balances. The minimum payments are designed to keep you in debt. Your creditors are sharp, they are looking for the absolute highest return on their investment and structure your minimum payments to simply pay the interest and barely scratch the principal. They continually monitor your credit reports to offer you increased lines of credit so they can get you right where they want you; paying only the minimum payments. This will get you nowhere. Paying more then the minimum payments and not using additional credit are the sure way to eventually get out of debt. If you are unable to do this then you must explore your alternative options to free yourself from this burden.

Credit Counseling:
The consumer credit counseling services industry or C.C.C.S. was a popular form of debt relief for many years. The C.C.C.S. industry took a nose dive after many misleading companies like Ameridebt took advantage of consumers by promising the world and not delivering anything but problems. Consumer Credit Counseling Service Companies advertise that they work with your creditors to reduce or eliminate your interest rates, consolidate everything into one easy monthly payment and get you out of debt in 12-48 months, when in fact they are actually working for your creditors and are getting paid what is referred to as a “Fair Share Contribution”. A “fair share contribution” is a percentage of your monthly payment which is paid to the C.C.C.S. Company for their efforts. Credit counseling does work for many people if you enroll creditors that are willing to reduce interest and pay a fee to the CCCS Company. We have been referring clients to Debt Management Credit Counseling in Lighthouse Point FL because we know them and they have an excellent reputation. You can learn more at http://www.dmcccorp.org/ or calling (866) 618-DEBT

Debt Settlement:
Debt settlement commonly referred as debt negotiation is an old concept but is becoming more and more commercialized and popular for people that are burdened with unmanageable debt situations. Debt settlement means: paying a creditor less then the amount owed by negotiating the balance. Debt settlement is only possible with debts that are seriously delinquent or in collections. The reason for this is, once a debt is seriously past due or sent to collections; the creditor has already charged the debt off. You see, for most creditors when a debt is past due, there is a specific process in dealing with the debt. They will add late fees, over limit fees as well as excessive finance charges. Once the debt has increased due to the account status, the creditor will look for ways to reduce their loss. The second step is for the creditor to charge the debt off. This means that the creditor believes the debt is UN-collectible and the creditor no longer wants to pay taxes on the debt as an asset for the company. So when the creditor charges the debt off, they get a tax break. At the same time they are now restricted form attempting to collect the debt, so usually they will sell the debt to a third party debt collector. Once the debt has been sold, the new debt collection agency will attempt to collect the debt. If they are unsuccessful, chances are it will be sold again and again until they are successful. After the debt is sent to collections you have a much better chance of settling, that is if they don’t sue you. Many creditors and collection agencies would rather settle then sue because it is much more cost effective. Even if they sue, they still need to collect which leaves them in the same situation. The older the debt is, the more likely it is that they will settle. We refer consumers to Consumer Debt Help Association in Delray Beach FL because we know them well and they have an excellent reputation. You can learn more at www.NoFeeUntilWeSettle.org or call (888) 722-3361

Bankruptcy:
Bankruptcy is a federal court process that can help consumers eliminate overwhelming debts. Depending on your circumstances and income, bankruptcy laws may give you a way to “wipe out” and erase many financial obligations and start over fresh so to speak. Be careful, even though bankruptcy may help the debts go away; it may very well have an extremely negative impact on your ability to obtain credit, get a job or insurance, a bank account or apartment rental. If you are considering bankruptcy, we recommend you call Tony Ditocco at Ditocco Law Group for a free consultation at (561) 487-0200 or visit http://www.ditoccolaw.com.

Learn more at www.CreditAgenda.com

Originally posted 2014-08-31 16:48:01.

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