Debt Settlement
What is it: Debt settlement is a process by which a consumer contracts a qualified firm to negotiate the terms of his or her debt? In many cases, fees, interest rate, interest dollars and balance owed can and will be discounted by creditors in your favor in exchange for immediate settlement (payment). Our program helps you accumulate money in a FDIC insured special purpose account to allow us to make those agreements and pay immediately.
Fill out the debt questionnaire above and a Debt Relief Consultant will contact you to explain your options, answer your questions, and walk you through the process of debt consolidation through negotiation.
We can help you get relief from credit card debt much faster than you may believe possible with debt settlement and debt negotiation tactics.
We are confident that a careful analysis of your available options will reveal that Debt Settlement is the most effective, and certainly most pragmatic solution for debt relief; additionally, this program is inherently a form of debt consolidation. Surprisingly, most debt consolidation companies work for and/or were created by, the credit card industry in an attempt to collect debts before attorneys get involved- a lucrative strategy, but realize that these organizations have no incentive to provide a service or advice in your best interest. A prudent financial planner would never recommend a mortgage refinance (one form of debt consolidation) to get out of credit card debt. This simply substitutes secured debt for unsecured debt and you now risk losing your home if you get injured or can't afford your new higher mortgage payments.
Here is a sobering statistic -
77% of all people who REFINANCE their way out of credit card debt are right back at the same level of credit card debt 2.5 years later with less equity in their home. Although the initial debt was paid, a new, and even more serious, problem has developed.
Why is refinancing less successfull in the end?
Because there was no behavior modification necessary. It is very easy to refinance out of debt with a higher interest rate and/or leveraged property. Unfortunately, this method requires no change in the spending patterns of the individual with the debt, and these problems propagate, proliferate, and inevitably recreate the debt problem.
A debt settlement program requires a person to go without using credit cards for 2 to 3 years, which brings about a behavioral modification, creating a better personal financial situation.
Debt settlement is one of the methods used by mortgage consolidation companies to get people qualified into a home after being denied financing due to a high debt-to-income ratio. |
