All the information you need to make an educated decision
Debt Settlement
Debt settlement is a unique approach to debt consolidation. Debt settlement companies will work with you to plan a monthly payment schedule that will fit within your budget, and will develop a timeline of when they expect to eliminate your debt. Since the programs vary based on individual situations, the final outcome differs from person to person. Your 'hardship', or the reason you need to consolidate, will determine your settlement.
Most reputable settlement companies will base your payment on a 50% settlement plus any fees they may charge. If you make your payments consistently, it is reasonable to assume you will be debt free at the end of your individual program. Most debt settlement programs are 24 to 36 months in length, dependent upon the budget you and your advisor have decided upon.
If you choose debt settlement, all of your accounts will fall behind and eventually may charge off. Once your accounts are settled, creditors will report the debt as settled with a $0 balance, and you are no longer liable for any forgiven amounts. The agency you work with does not manage your money for you, so they do not have to report to the credit bureaus. No one will know that you are using debt settlement services except for the agency and the creditors it handles.
While debt settlement initially will have a negative impact on your credit, it also will save you the most money over time compared to other methods of consolidation. It is the quickest route to becoming debt free.
DIY debt consolidation: 3 secrets for success
You're sinking fast in credit card debt, and there's not a life preserver in sight. Loans and balance transfer offers involve applying for more credit. Follow these tips for rescuing yourself from the dangers of excess debt.
Personal spending rises as income slipsPersonal income declined in August, but personal consumption expenditures rose, according to the Bureau of Economic Analysis.
3 reasons for consolidating credit card debtAre you paying more than one credit card bill each month? Have you overlooked a bill and incurred penalty interest rates or late charges? Consider credit card debt consolidation for simplifying debt management chores.
Balance transfers: A way to ease credit card debt?Credit card consolidation can simplify debt management, especially if you're dealing with a stack of credit card bills every month.
Debt consolidation: 5 pros and consUsing credit card balance transfers and debt consolidation loans for tidying up your financial house of blues may or may not work. Consider these arguments for and against debt consolidation loans and credit card balance transfers.
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