Use debt settlement, credit counseling, debt consolidation or bankruptcy to eliminate your mounting debt. As of July 28, 2010, the United States Federal Trade Commission passed the Credit Card Debt Settlement Act, granting the growing number of distressed consumers relief from personal debt. This includes credit card debt, doctor bills, collection accounts and personal loans. It does not include alimony, mortgages or student loans.
Who Qualifies
You qualify for a credit card debt settlement program if you have more than $10,000.00 (U.S. dollars) in unsecured debt and can prove that you are experiencing financial hardship.
If you qualify, you can expect to eliminate up to 50 percent of unsecured debt with the aid of a professional debt settlement company.
Consult a Debt Relief Specialist
The United States Credit Card Debt Settlement Act of 2010 has reshaped the debt settlement industry into a performance-based service. The result is that you can now obtain a free debt consultation with a debt relief specialist from debt consolidators like freedebtsettlementadvice.com, debtdecreaser.com or moneymanagment.org, for example.
A debt relief specialist will advise you on how to best create a plan to eliminate your debt based on your particular circumstances.
You can also contact:
United Debt Associates
425 N. Front Street
Columbus, OH 43215
U.S.A.
877-853-6466
Debt Settlement
Debt settlement will negatively impact your credit for up to six years, whereas a bankruptcy will negatively impact your credit for up to 10 years. In 2009, the average debt settlement was negotiated for 50 percent of the actual balance owed. You can expect to eliminate a substantial amount of your debt with the help of a federally approved debt settlement company. Your debt settlement company will negotiate on your behalf with your creditors to reduce your balance and monthly payments to avert bankruptcy.
Credit Counseling
Consult a debt consolidation company to find out what your credit options are and for help in reducing your dependence upon credit. A credit counselor may advise you to sell unused assets to pay down your debts or even to get another part-time job to supplement your income. A licensed credit counselor will assess your credit situation and give you timely options as to how you can consolidate and pay down your debt before it gets out of control.
Debt Consolidation
Debt consolidation is an accelerated repayment plan. A certified credit counselor will advise you on how to consolidate your debts. The credit counselor will work to negotiate with your creditors in creating a plan to consolidate existing debt and facilitate timely and affordable repayment of your overdue bills.
Bankruptcy
You may have to choose bankruptcy if the previously mentioned options do not work for you. Chapters 7 and 11 bankruptcies involve the selling of your primary assets and using the money from the sale to cover existing debt. You will generally be able to keep your car and home in most states, as long as they are not considered luxury items. Bankruptcy will make it difficult for you to obtain affordable credit for up to 10 years. After bankruptcy, you may receive offers of credit, but at significantly higher rates.
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