| 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. |
| 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. |
