If you live in Oregon, I've got some good news on how you can find debt relief!
If you are fighting each month to just barely get by, you are not alone. Statistics abound about how the average family has several credit cards and several thousands of dollars of debt.
What can you do about it?
Face the problem, honestly!
When is the last time you sat down and completed and honest, up-to-date HOUSEHOLD BUDGET?
If you are having a difficult time with too much credit debt, then the natural tendency is to avoid or ignore the facts, but you can't get out of debt without know exactly where you stand financially. Once you know exactly what you have coming in and exactly what you are spending your money on each month, we can devise a plan.
BASIC DEBT RELIEF OPTIONS:
DEBT MANAGEMENT
In a Debt Management Program, you will be making ONE PAYMENT to a Debt Management Company or what some people call a Credit Counseling Company.
This company will in turn have contacted each of your creditors to arrange a repayment plan.
Most Debt Management Programs take about 48 months to complete.
Once you have competed the program, you will not only have saved a substantial amount of money in reduced interest and fees, but your credit report will reflect that you have $0 balances and your credit score will start to improve.
The problem with most Debt Management Programs is that depending on the amount of debt you owe and your left over or net, disposable income each month, you may not qualify.
Example:
Let's say you have $25,000 of various credit card debt. At 2% of the $25,000 you owe on all of your cards, your minimum payment was $500.
Because the credit card industry figured out that they will make much more money in the long run if they make the minimum payment so small that that most people will take 10 -15 years or more to finally repay the debt.
And, the most tragic thing is that if and when you finally do pay all of the credit card debt, you will have paid 3 - 4 times more than you originally borrowed!
But in a Debt Management Program, you most likely will need to pay about 2.5% of the total, or in this case of $25,000 total credit card debt, $625 monthly!
But don't panic! There's another option:
Debt Settlement
In a Debt Settlement Program, your payment or actually, your deposit to a bank insured reserve account is based on several factors:
- The type of income you are receiving
- The amount you have left over at the end of the month
- Your health
- Your retiement status
In a Debt Settlement Program, your creditors will not be receiving normal, monthly minimum payments as before.
Most people who have so much debt that they cannot keep up have fallen behind already or have had some accounts turned over to debt collectors anyway.
A professional Debt Settlement Company will negotiate a reduced balance (usually around 50% and sometimes less) with the creditor or debt collector.
Once the debt has been settled (by lump sum payment or over series of payments), the debt collector will report the debt to have been "settled-as-agreed" to each of the Credit Reporting Agencies.
For more information about Debt Settlement, click below:
But what if you do not qualify for Debt Management or Debt Settlement?
If that is the case, then you may need to seek BANKRUPTCY PROTECTION from your creditors.
Bankruptcy is a viable option to finally get out of debt. Bankruptcy should be viewed as the last option (in my opinion) and not just a "get out of jail card" so to speak.
You will need to sit down with a BANKRUPTCY ATTORNEY in your area to discuss your situation and your options.
Depending on your specific financial circumstances, you will most likely be placed in a Chapter 7 or Chapter 13 bankruptcy. The bankruptcy attorney will explain the differences.
We have been helping Oregonians become DEBT FREE for over 10 years. Don't let fear of the unknown keep you in contast turmoil over too much debt.
You have options for debt relief, and we can help!
