| Product |
Services |
Costs |
Clients |
Notes |
| Debt Counseling |
Debt counseling agencies negotiate with your
creditors using pre-set agreements and spread your payments over a longer
period in order to reduce the monthly amount due. |
A one-time enrollment fee plus a monthly fee.
|
People who need assistance paying off their debts
and who can’t qualify for a loan. |
No obligation or fee for reviewing your case
with a counselor. It is important to be aware of the terms and rates of
this service before you sign up. |
| Bill
Consolidation Loan |
A personal loan can provide you with up to $15,000
for paying off your debts. Low interest rate. |
Your loan’s interest rate will be calculated
based on the amount you wish to borrow, your credit standing and national
rates. |
People with multiple debts that they want to
consolidate into one, lower interest loan. Borrowers with good or excellent
credit. |
Free loan quote. To qualify your bankruptcies
must be discharged at least 2 years, you must have a median credit score
of a 580 or higher and you must have a clean repayment history for a significant
number of months. |
| Student
Loan Consolidation |
Consolidate your student loans into one new loan
with a low fixed rate and a reduced monthly payment. |
No fees are charged for student loan consolidation.
Your new loan’s interest rate will be the average of the interest
rates on the loans you consolidate, rounded up to the nearest 1/8th of
1% or 8.25%, whichever is less. |
People with more than two federal student loans
totaling over $10,000. |
Consolidation extends the terms of your loans,
meaning that you will need to spend more years repaying your debts. It
is best to consolidate your loans when interest rates are low so you can
lock in a good deal. |
| Home
Equity Loan |
This loan can provide you with the extra cash
you need to consolidate your debts at a relatively low rate. |
Your new loan’s interest rate will be calculated
based on the value of your home, your credit standing and national rates.
|
Homeowners who want to use their home equity
to pay off a large amount of debt. |
No obligation quote. Your home is attached to
this loan. If you can not make your loan payments for some reason, the
lending institution can foreclose on your home as repayment. |
| Tax Consultation
|
Tax consultants will help you deal with tax problems
such as liens and penalties. Provides assistance in negotiating with the
IRS. |
$50 or more depending on your situation. |
This service is designed to assist people with
complicated tax issues requiring professional advice. |
No obligation tax savings quote online. Confidential
service. This service can be expensive depending on your needs. |
| Other
debt options to consider… |
| Bankruptcy |
A legal process that allows a borrower in financial
distress to eliminate or reduce debts through a court filing. |
$250 - $2,000 for an average filing. |
People with an overwhelming amount of debt that
they cannot pay back. Bankruptcy is a last resort used by people who have
lost their job, had medical issues or divorced recently. |
Bankruptcy records remain on your credit report
for 7-10 years and are very damaging to your credit score. |
| Do-It-Yourself
Debt Reduction |
Using our article and worksheet to create your
own debt reduction plan. |
There’s no cost. |
People with a manageable amount of debt who are
organized and dedicated to paying some of their debts each month. |
If you need help creating a reduction plan and
staying on track, you should work with a debt counselor instead. |
| Credit
Card BalanceTtransfer |
Transfer your high interest rate debts to a credit
card with a low or 0% APR. |
Your interest rates will be determined by the
creditor based on your financial data. You may have to pay an annual fee.
|
People with debts who have good enough credit
to receive a credit card offer with a low rate or 0% introductory offer.
|
Opening a new credit card account and transferring
balances can have a negative effect on your credit in some situations.
It is important that you fully understand the terms and rates of the account
before your proceed. |
| Debt Settlement |
A process where you pay an agency to negotiate
directly with your creditors in the hopes of making significantly reduced
settlements for your debts. |
Usually a percentage of the debt amount (10-15%)
plus an initial fee. |
People who have a large amount of debt and who
already have damaged credit from multiple delinquencies and negative records.
Borrowers who cannot or do not want to file for bankruptcy. |
Working with a debt settlement company can result
in damaged credit from numerous late payments and collection records.
Consumers should fully investigate the practices, reputation and costs
of working with a debt settlement company before signing up. |
| Borrowing from a Family Member |
Asking a trusted relative or friend to lend you
the money you need to pay your debts. |
Your relative will probably not charge you interest
on this loan. |
People who have access to financially stable
relatives or friends and who know they can pay back the debt quickly.
|
Borrowing from a friend or relative can put a
great strain on your relationship. Trouble could surface if you are unable
to pay back the loan in a timely manner. |
| Non-payment of Debts |
What would happen if you just decided not to
pay back your debts? |
$20-$40 late fee per missed payment, universal
interest rate increase, collection agency interest rates and fees, repossession
of property, possible judgment, wage garnishment or lien. |
This is not a good option for borrowers. |
Not paying your debts back can lead to significant
credit damage for 7-15 years. Your debts can be charged-off, sold to a
collections agency or collected through legal action. |
