Facts of fear that debt consolidation and debt settlement companies do not tell you
Completion Rate:
Less then 40% of the people who start a debt consolidation program with companies that are not law firms. The rate of success of the law firms is more or less 90%.
The true picture of non profit debt consolidation companies:
The IRS found in its survey report that the non profit debt consolidation companies are actually responsible for funelling the money to other companies which forced IRS to close down many such companies.
The real fact about for-profit debt consolidation companies:
Creditors don’t have any legal obligation and are not bound to listen to these companies because they are not law firms for which the collection calls do not stop.
These companies charge round about 15% of the debt amount as their service charges. The initial monthly payments are mostly used up in paying the service charges. After the fees are paid the company has no inclination to retain the client because the fees are not proportionate to the money saved for the client seeking help from them.
Advises of our community:
In order to make your life smooth you should take the help of a law firm to resolve your debt problems since:
Issue of bankruptcy:
They might very well use the stick of filing for bankruptcy to make the creditors give their consent to debt consolidation or settlement program.
Open up trust account:
A law firm can help you to start a trust account and can use the balance in the trust account as a mode of bargaining .
Erradicate harassing calls:
They are efficient in persuading the creditor to stop calling you – FDCPA claims that creditors can not call you if a law firm is representing you.
Step down mode of approach:
A law firm always have the authority to file for bankruptcy if you can not afford and bear the monthly charges of being in a debt management or a debt settlement program.
Tips to choose a law firm
BBB Member:
The Better Business Bureau (BBB), founded in 1912 keeps a track of its member companies. Consumers can call the BBB to file complaints and state their allegations. A business that does not have any filed BBB complaints is a good feature.
Success charge:
A law firm should be responsible enough to put its money where its mouth is. If they are capable of saving you money request them to take a part of their service charge dependent on the amount of money they save you.
Successful incidents:
If the law firm’s sales pitch says that they can efficiently produce results to you ask them to show you some success stories of some past clients that they have handled. Like, if you have The Bank of Boston as a creditor then politely request the law firm to show you a settlement letter from the bank for one of the law firm’s past clients.
Render fee credit for step down:
When you join a debt management or debt settlement program they would offer you a step down from management to settlement to bankruptcy if your financial disaster gets more and more prominent. This enhances the chances of your completing the program. Bring close context to the shocking fact above about completion rate at the top of this article..
The reason for which you should rely on us is…..
We are BBB accredited business with 0 complaints in the last 5 years since our launch of business in 2003.
We are a community and not a debt consolidation or debt settlement firm. We do not like to earn dollars by signing you up for debt consolidation program or debt settlement program. We earn our meal by our advertising through Google adsense program and the ranking chart.
Learn to solve debt problems easily
Are you in debt? Know how to repair your bad credit and get out of debt quickly and easily with the 5 major ways of solving debt problems.
Debt Consolidation Prgram: It enables you to consolidate multiple debts into a single lower payment and also saves you a lot of cash. Along with that, 8 benefits (like reduction of accrued interest, obtaining a good credit score, etc.) are playing a major part to make it one of the most suitable options. You can calculate and note down how much to save by consolidating debt with the help of a calculator.
Debt Consolidation Loans: It is a type of personal loan, with which you can pay off your unpaid bills like credit card, medical and other loans. The loan enables you to make a single payment on your multiple debts, dealing with a single creditor at a time and reducing the outstanding balance. To know more about the debt consolidation loan, check out if you’re the right and eligible candidate to apply for the loan, the inquiries and investigations you need to make before opting for it and the steps you must follow while applying for it.
Debt Settlement: It is a good method to pay off your outstanding payments for less than the amount actually owed to your creditors. The process not only frees you from the headache of paying the monthly installments to your creditors, but also reduces your debts by 40% – 60% of the total amount. You can start up a debt settlement program in two ways, by directly negotiatiing with your creditors or by contacting a debt settlement company. The debt settlement companies normally negotiate with the creditors on your behalf. While analyzing the pros and cons of debt settlement, do not forget to choose the appropriate time to settle your debts.
Self Repayment Plan: With the help this plan you can reduce your debt load on your own. Just by accessing your financial status, making an effective and fruitful plan in clearing your pending debts and executing it successfully you can become debt free. Self repayment plans do not include third party fees or any service charges but you need to have sound knowledge of different procedures to reduce your debt load.
Highly popular articles to help you lead a debt-free and easy life
7 steps to become debt free: Community suggests 7 measures to repair bad credit in your journey towards a debt free life. To come out of debt, you need to accept the fact that you are under financial distress. Analysing your current financial condition, jot down a list for the debts you should clear up first. Make a proper budget and do not involve into any new debt. Negotiate with your creditors and never forget to take professional help whenever required.
Consolidate credit card debt: Consolidate the outstanding balances on your accounts into one single loan that has a lower interest rate than the ones you are currently paying. Analyze the interest on your credit card and assemble your credit card debts into one bigger one.
27 sample letters: A list of 27 sample letters to creditors has been designed on varied situations, you face frequently. If you can’t design a letter in a correct format you are likely to miss out significant information. Also, the credit bureaus and collection agencies do not accept letters in a wrong or faulty format.
Do away with
bankruptcy: The Title 11 of U.S. Code states, that the Federal Bankruptcy Code is divided into eight chapters. They are namely; Chapter 1, Chapter 3, Chapter 5, Chapter 7, Chapter 9, Chapter 11, Chapter 12 and Chapter 13. Chapter 7 and Chapter 13 are the varieties of bankruptcy, mostly filed by debtors. However choose bankruptcy when you are not eligible for any other ways of debt solution. It provides just a temporary relief from financial weakness.
Credit counseling: You are always welcome to try our free credit counseling session which is worth your help. We negotiate with your creditors and eliminate your debts. Through this, the credit counselor educates you in different financial matters like, credit, managing finance and budgeting. They analyse your financial condition on the basis of your total monthly income, your total debt amount, rates of interest on different loan accounts, minimum payments for credit cards and other financial aspects. Learn more about credit counseling.
How DebtCC helps you?: The community provides enough support to people who are in debt trouble. Free debt counseling, company ranking cart, online debt calculators and budgeting tactics are put up to provide effective debt help and create a debt free society.
Debt management program (DMP): DMP is a method to handle your debts. This is a method, by which a credit counseling agency or a law firms provides you support to manage your debts by reducing the APR. While opting for a debt management plan you should know the most appropriate time to opt for it, the process it follows, the pros and cons of the debt management plan.
