Credit Card Debt Stressing You Out? You are NOT Alone!
Read the startling facts below:
Credit Card Debt is breaking historical records in America.
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Americans owe $915 billion in credit card debt which is nearly the same amount of the estimated subprime debt load that the international banks are carrying.
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Over a million individuals filed for bankruptcy last year.
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Nearly half of American citizens have less than $10,000 saved for their retirement
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Seventy-two percent (72%) of the U.S. economy rides on consumption alone.
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As home prices keep falling, U.S. homeowners have a more difficult time getting cash by refinancing their high-rate mortgages. The increasingly high cost of gas, often purchased with credit cards, isn't helping either.
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In October 2007, credit card
debt that was at least 30 days
late totaled $17.6
billion, up 26% from
October 2006. Some credit card companies, such as Advanta, GE Money Bank and HSBC, have reported a 50% increase in accounts that are at
least 90 days late compared to the same time last year.
These are all staggering statistics and we are devoted to providing you with solutions to your own credit card debt and other unsecured debt.
Watch this Free Video Regarding The Secrets of the Credit Card Industry and start Fighting Back.
Debt Settlement
Debt Settlement is the fastest and least expensive option to get out
of debt without filing
bankruptcy. Also known as debt negotiation, debt settlement is an ambitious
approach to debt reduction for debtors experiencing the strains of too much debt.
Debt settlement companies will negotiate with the creditors on behalf of the
client to settle for an amount much less than the balance owed. In return, the
debtor will make a settlement payment for the balance owed. Once the debt has
been paid in full on the settled amount, the creditor will issue a letter to the
credit bureaus stating the debt has been "Paid", "Settled", and/or "Settled for
less than full amount."
Creditors are usually willing to settle the balance of debt owed if the
debtor is under a financial hardship. If the debtor chooses to file bankruptcy,
then the creditor would receive nothing, therefore, it is their desire to get
some payment towards the balance owed.
Source: Federal Trade Commission, "Facts for Consumers"
Your Other Options:
1. Bankruptcy.
Although bankruptcy is
a route to get out of debt, it negatively affects credit for
7-10 years and can be an unpleasant experience emotionally. In October
2005, new congressional legislation made filing for bankruptcy more difficult
and burdensome. A Chapter 13 bankruptcy payment plan can be higher and last
longer than the alternative debt settlement program.
2. Consumer
Credit Counseling (CCC).
Programs like these can take up to 5-7 years or
longer to complete and your debt is not reduced. You still pay back 100% of the
debt you owe in addition to interest. If you miss just one payment, you
could be dropped from the program. Consumer Credit Counseling Companies, on
average, have high rates of client cancellation, which does not bode well for
their delivery of successful debt management programs (see below for more
information on CCCs).
3. Debt Consolidation
Loan.
This option only works financially if you have at least a good
credit rating and considerable equity in your home. If you have a very large
debt burden and have been late on just one payment, it is likely that your
credit may be impaired. Also, with this option, you do not get out of debt; you
only shift it from unsecured debt to secured debt. While a debt consolidation
loan coupled with our debt settlement program provides a very powerful solution,
debt consolidation alone does not reduce your debt; it only shifts it from one
place to another.
4. Continue minimum monthly payments to credit
card companies.
This option could take over 30 years to pay back,
costs thousands of dollars in interest alone, and requires you to pay back over
three times what you now owe. This is the slowest, most costly, and most
economically disadvantageous way to get out of debt (see below for more
information). Keeping high balances on your credit cards could affect your
credit in a negative way and make it more difficult to obtain a home loan. Paying Minimum Payments on Credit Cards.
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