I need bill-paying assistance!

You’re not the only one, if you have that problem. Many Americans who have lost their jobs, had their income reduced or suffered from death or divorce, find themselves in this exact situation. If you have considered a Debt Consolidation Program, making use of credit counselors to help you negotiate a lower interest rate and consolidate accounts into one bulk payment then discover you can’t make the repayments, what are your options? It’s not uncommon for people who are in this situation to think that maybe they have no choice but to declare bankruptcy.

Another exit is possible. It’s Debt Settlement and it can help you get rid of your debt by the reduction of the principle amount owed to each of your creditors. Creditors will generally settle for a portion of what you owe as opposed to nothing at all. It is vital to understand the differences between Debt Settlement and Debt Consolidation. As an alternative to monthly payments to your creditors, your money goes into a special FDIC-insured savings account, known as a special purpose or trust account. Expect to receive a statement every month just as you do from your bank. Professional credit counselors can get this started. In time your counselor will inform your creditors of your placement in the settlement program. Creditors know that when they finally hear from a credit counseling service they will most likely be settling a debt for much less than what was originally owed.

Why did it occur? Here’s where your savings will come in handy. While you gain income, this financial advisory program watches the account, and once you reach 50 percent of what you borrowed from the lender, the service will start discussing a settlement to reduce what you owe the creditor.

If you owe multiple creditors, the first one to be settled is that with the lowest balance. As you earn more and more money, your counselor will work to settle your debts, from smallest to largest, until they are all cleared. A this time, in regards to all debts unsecured with property, you will be declared debt-free.

This will affect your credit score as you are involved in the settlement procedure since you will have defaulted accounts until everything is settled. You can start to rebuild your credit score once you have paid off all of your creditors. This is the preferable alternative to bankruptcy.

Bankruptcy law changes make qualifying for Chapter 7 a bit more difficult. (this gets rid of every debt that is not secure) A lot harder than that. A “means test” is a prerequisite of filing for bankruptcy or Chapter 7. To put it another way, if your income level is over a certain amount, you must repay at least a portion of your debt through Chapter 13 bankruptcy. The court system is commonly grown and monitored. You will be required to sell any luxury items you own. Your home and the vehicle you use to get to work aren’t included.

A Debt Settlement is much easier to recover from, and clears your credit report much quicker. Ensure that you are using a professional debt management firm.

Debt consolidation firms have assisted many individuals in addressing their personal financial obstacles. A free consultation by a Certified Credit Counselor is the first of the many resources Debt Consolidation services offered by the Credit and Debt Consolidation firm.

These Credit and Debt Consolidation firms are now partnered with national law firms. We have partners in every state in the union. Our staff is strongly dedicated to helping bring an end to our clients’ financial troubles. Credit and Debt Consolidation firms provide Debt Consolidation Services nationwide and Credit and Debt Consolidation firms have a professional alliance with many of the nation’s most reputable Debt Consolidation Companies to assist our clients as advocates for their rights.

For a long time, large corporate law firms have helped their clients tackle problems with debt through the negotiation of “financial workouts” designed to allow debtors to remain in business while struggling financially. Credit and Debt Settlement firms started this cutting edge Debt Settlement Program to help clients and their families solve their financial problems and focus on the important things in life. You can relax with us on your side because we give you all the legal support that you need to get out of debt.

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