Reduce Your Financial Liabilities with Help from the Pros
The first step to reducing you financial stress is to choose a debt consolidation company that is credible. We work with specialists that are listed with the Better Business Bureau in your locality, so you can research success rate for yourself. After we pair you with a counseling specialist that has your best needs in mind, a customized plan will be established, allowing your counseling partner to negotiate with companies on your behalf, as well as crafting a plan to help you make your payments on time. The specialists we have teamed up with will typically decrease your payments after three months, or will simply use those "extra" funds to pay down the highest interest rate card that is dragging you down. Once you begin making payments, most agencies will immediately waive all late payment and over-the-limit fees. Rather than having bankruptcy prevent you from obtaining a loan for the next two years, help from a counselor allows you to avoid this stigma and rely on a negotiated repayment plan.
What Benefits Can I Expect?
After you complete three full monthly payments on time, the company you have partnered with will petition to re-age your account. This is the process by which your creditors report to the credit bureaus a correction, marking all delinquent accounts as though they are current. Although all debt consolidation companies must play by the same rules determined by creditors, regulatory bodies, and law, the level of initiative and customer care can vary wildly from company to company. Similarly, while all companies are required by to be IRS recognized 501(c)3 Non-Profit companies, some companies implement this requirement by spending almost all of their revenues on servicing their clients.
Why should you apply for a savings program? Here are some reasons to consider:
- We put you in touch with those who can help you settle unsecured liabilities
- Experts work for you and are not compensated by credit card companies
- Our partners negotiate with banks and lending companies to lower your principal amount owed
- Many consumers see interest rates cut in half, settling highest APR cards first
- You will get help negotiating late fees, over the limit charges, and other nuisance fees
- Your delinquent cards may be able to be reclassified as current, improving your credit score
- Our specialists can help you become free from liabilities faster than the alternatives
Should I Manage or Settle?
Debt management plans are usually administered by non-profit companies and adhere to guidelines for negotiated rate decreases. If you stay in the program, the simplicity of a single payment taken from your bank account via ACH, combined with the changes in interest rates and monthly payments, may help you get out of trouble faster than on your own. When you settle you make a more affordable payment into the program, and your creditors continue to assess fees. These programs often save you money, but leave your score badly damaged. If you can't afford a better option, these programs are the least costly up front.
Are There Loan Options Available to Me?
Commonly advertised by mortgage brokers, a debt consolidation loan is a new line of credit that rolls all your other lines into it. While most people would get a higher rate to do this, by securing the loan with the equity in your home, one can get a more affordable interest rate, and the interest is often tax deductible as a home mortgage. These loans may be interest only home equity lines or amortizing second (or first) mortgages, amortizing over 15, 20, 25, or 30 years. If your debts are from behavior that you have corrected, these loans are often the cheapest way to fully repay your balances without adverse effects on your portfolio.