Debt Management Programs

By significantly increasing your  monthly payments, one account at a time is paid in full.

After enrolling with a credit counseling agency, the agency will work with your creditors to create a repayment schedule.

By obtaining a loan, you would pay off all your debts in full and combine all your debt into one monthly payment.

If you are a homeowner you may choose to refinance or if you have excellent credit, you may choose a Balance Transfer to a low interest credit card.

If you have no other options, you may decide to file for bankruptcy.

Most people file for Chapter 7, which would eliminate their debts entirely. Under Chapter 13, a judge will determine the percentage of debt that will be repaid.

After enrolling into a program, you make monthly payments into a savings account.

As the funds accrue, negotiations will start with your creditors.

The debts are reduced usually 40 – 60% within 12 – 36 months.

You are in full control. As one card is being paid off more quickly, minimum payments are made on the other credit cards.

Once enrolled into the program, creditor harassment stops.

Typically, interest rates are lowered and some fees are eliminated.

Monthly payments are lowered slightly.

A debt consolidation loan creates one lower monthly payment instead of multiple.

The loan interest rate is lower than the interest rate on the accounts.

Bankruptcy may protect some of your assets, such as home equity and retirement funds, depending on state laws.

With Chapter 7 bankruptcy, you are able to become debt-free and start over fresh.

You'll be able get less debt and get more out of life in 1 - 3 years..

By becoming debt free in 1 – 3 years the you will be on your way to creating good credit.

You need to be extremely disciplined to make the extra payments and not run up additional debt.

Founded by the credit card industry, it is funded by kickbacks for collections from consumers.

There are income requirements and delinquency is a disqualifier.

Debt is usually secured by collateral which puts the secured assets at risk if the consumer defaults.

Employment and ability to obtain licenses may be impacted.

Current bankruptcy law  makes it more difficult for consumers to file Chapter 7.

You may have creditor calls as accounts become delinquent.

Creditors can seek legal remedies in an attempt to collect on past-due accounts. Several strategies are used to delay these types of actions until the debt can be settled.

No damage is done to your credit as long as minimum payments are made on all accounts.

There is no effect on your credit score, however, lenders will know that you are in credit trouble and often view this option on par with Chapter 13 bankruptcy.

Your credit rating is not affected assuming no payments are missed.

Traumatic damage to a your credit,  bankruptcy will stay on your credit report for up to 10 years, and will be in public record for up to 20 years.

Your credit is hurt while in program as accounts become delinquent. Harm to credit can be fixed after the completion of the program.

Payments must increase on at least one account and minimum payments must continue to be made on other accounts to pay off debt.

Payments are reduced only slightly.

You must pay back 100% of debt including interest and fees.

One easier to manage payment is created. Payment should be slightly lower if a lower interest rate is obtained.

Chapter 7 bankruptcy will eliminate your debt completely.

Chapter 13 bankruptcy will lower your debt and a judge will determine how much your payments are.

You only need to make one LOW monthly payment into your Settlement Savings Account.

This is a long process and takes a lot of determination and discipline. It is easy to “fall off the wagon.”

Typically takes 5 years or more to complete.

Graduation rate is extremely low.

Most people, within two years after consolidating, have reloaded their credit card debt back to original levels.

Bankruptcy will stay on your credit report for up to 10 years and in public record for up to 20 years.

At the successful completion of the program, usually 12 – 36 months, you are debt free.