Your Choices
When facing financial hardship, you have a few different options to choose from. Here are some of your choices:
Debt Settlement - Debt Settlement is when we take your unsecured debt and significantly reduce your principle balance. It is an aggressive approach to debt reduction for individuals in financial hardship. You are given one interest-free monthly payment, which is required for you to save up every month. This payment is your guide to a successful program.
Debt Management - Debt Management works with your creditors to lower your interest rates, so that more of your payments go toward your principle. Your payment is approximately the same as what you are already paying, however your term is reduced to approximately 36 - 60 months. This is ideal for someone who is current on their payments, but can only afford making the minimum payments.
Home Equity Loan / Debt Consolidation Loan - This may seem great for some homeowners with substantial equity in their home and good credit, however, keep in mind that you are transferring unsecured debt into secured debt and now risking your home as collateral if you can't make your payments.
Do Nothing (pay forever plan) - This is a creditor's favorite! By making only the minimum payment on your cards, the problem is that it takes an average 6 years to pay off every $3000 in debt.
Find out the true cost of making minimum payments.
Bankruptcy - Bankruptcy was designed to be a consumer's last resort and has a devastating negative effect on your credit that could last up to 10 years. Keep in mind that bankruptcy is the worst possible scenario for your credit and is also public information.
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