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Unfortunately, many consumers don't seek help until their payments have fallen behind or their accounts have already been placed in a "charge-off" status. Worse yet, far too many consumers who are in jeopardy of falling behind and need help turn to personal loans as a solution. Studies show that many consumers who take out loans to solve their problems find themselves in a similar predicament several years down the road the only difference is they are >buried further in debt and repayment is more difficult. Since they are so overextended, the only alternative that is viable is bankruptcy. Others find their mortgages being foreclosed because they consolidated their debt with equity from their home. Needless to say,“Robbing Peter To Pay Paul” is a risky and expensive solution. This being the case, the overall purpose of this website is to educate consumers about the importance of debt elimination without further borrowing and to provide help by matching people with pre-qualified assistance. These agencies specialize in helping consumers lower their debt by as much as 50 percent. Most consumers online have very little information about what options are even available, let alone which ones will help given their situation. In general, there are two services available to consumers that do not require either filing bankruptcy or taking out a loan. Those two options are credit counseling and debt settlement. In general, settlement is able to reduce payments and your overall debt in a much more dramatic fashion, while credit counseling can help to lower interest rates as well as consolidate your payments. Of the two, settlement programs can help you out of debt much faster than counseling plans. However, settlement is a much riskier approach with many disadvantages, such as the fact that it will affect your credit negatively. Another advantage of using third-party services to pay off your credit cards lies in the fact that everyone qualifies, regardless of whether they have bad credit. Getting an unsecured loan, on the other hand, necessitates the use of credit checks, so approval oftentimes can be difficult and time consuming. Even if you are approved, the interest rates and minimum monthly payments can be so high the loan will be unmanageable. Since many people seeking loans are being charged late fees, owe high balances, or still have old debt lingering on their credit report, obtaining one at favorable rates is next to impossible, and therefore, freeing yourself from that debt is an even more difficult path. Stuck in this type of situation, far too many panic and file bankruptcy to solve their problems. In this situation, seeking bankruptcy makes very little sense. After all, why would someone knowingly accept 7-10 years of poor credit by filing? Making matters worse, new laws make declaring bankruptcy even more difficult, exemptions less favorable, and the financial consequences suffered after filing more severe, particularly for Chapter 7 (the credit effects of filing Chapter 13 were diminished, however). Feel free to browse around the site for more information about which service is best for you. If you prefer to speak with a professional, please fill out a form and get matched with a company who can help. (Note: the above or anything on this website is not to be considered legal, tax, or financial advice. For this type of advice, please contact a lawyer or other professional licensed in these areas.) |
