Debt...although a necessary evil in today's economy, it can be devastating. Here are 4 Debt Control programs that may work for you!
Are you having a hard time with any of these?
- Credit Cards
- Medical bills
- Utility Bills
- Personal Bank Loans
- Auto Loans
- repossession Deficiencies
- Judgments
If you do (and millions of people are just like you), you should consider one (or more) of these programs:
DEBT ACCELERATOR PROGRAM
There are all kinds of estimates or studies that have been done to try and calculate how many people are carrying debt loads that are becoming difficult to handle.
The average US household credit card debt is estimated to by around $15,000. Now, some families are carrying very large amounts of debt and some have less, but the point is... we (most people) are carrying far too much debt.
I believe it was Dave Ramsey who either first developed or made popular the idea of the Debt Snowball Plan. Sure, there are some critics of this type of plan, but usually those critics have not been dealing with people (and especially people's emotions) for very long. While I don't agree with everything he promotes, the fact that he is helping people get control of their debt is admirable, and I applaude his teachings.
Basically, in a DEBT ACCELERATOR PROGRAM (my term for a Roll-Up or Snowball Plan) you are going to be paying a little more that the total required minimum payments of all of your accounts. Don't think you can find a "little more" money each month?
- How about making a few changes in your lifestyle? For example:
- Daily StarBucks coffee = $5.00 x 30 days/month = $150 per month
- Fast food lunch at say $6 bucks x 30 days/month = $180 per month
- Health club membership you never (or rarely) use = $25/month
Get the idea??? If you are serious about finding some extra money to pay off your debt in a shorter period of time, you can do it! OK, I'll get down from my "soap-box"!
Let's say you have a total monthly minimum required payment of $500. Although you have been paying consistently for several years, the balances are barely going down!
Of course, you know (or should know) why. The credit card industry has tricked the average consumer into thinking that they are "repaying" their debt by making the minimum required payment each mont. But, if you will take a close look at your next credit card statement, you're going to be shocked (outraged is better) to learn that your balance was hardly reduced at all. Here's why:
Hypothetical Credit Card:
- Balance $7,000
- APR 19%
- Minimum Payment is 2.25% of balance
$7,000 x 2.5% = $175
19% / 12 (months in a year) = 1.583% interest on $7,000 = $110.81 (THAT'S RIGHT...DO THE MATH)
So, when you send in your "minimum payment" of $175, here's what next month's statement will look like:
Previous Balance $7,000.00
Interest charge $ 110.81
Payment received -$ 175.00
New Balance $6,935.81
YOU GOT IT! You sent $175 and your balance was only reduced by $ 64.81!!!
No wonder it takes peope 10, 15 or more years to pay off the average credit card (especially if you continue to only make the "minimum payment required"!
But, by making a few changes in your spending habits, you find an extra $100 per month. By adding an additional $100 per month to the $175 (and not reducing the $175 as you balance goes down), you can pay off that credit card in just 33 months, saving you thousands in interest!
Now that you have that one paid off, YOU DON'T LOWER THE TOTAL MONTHLY PAYMENT, you just reallocate or add it to the next credit card, and so forth, and so forth until all of your credit cards are paid off! DOESN'T THAT SOUND GREAT!
But, what if you not only can't afford the total minimum payments, you don't have any extra funds for a Debt Accelerator Program?
Then, a DEBT SETTLEMENT PROGRAM may be the answer!
So many people have run into some very difficult times, financially. This may due to:
- Loss of employment
- Too little fixed income after retirement
- Death of a spouse or partner
- Disability
- Divorce
- And many other "financial challenges" that you may be facing
Does that mean that you can never recover or be DEBT FREE once again?
No, in fact, debt collectors are usually more than willing to SETTLE a debt for less than the total balance, depending on your particular circumstances.
When you fall behind on your payments to your creditors, as you know, the calls start becoming more frequent and frustrating!
Did you know that once your account has been transferred to a debt collector, you can legally make them stop calling?
After you account is with a debt collector (may be a "debt purchaser"), you will need to make a SETTLEMENT OFFER of much less than the total balance. Now, here's where it get's tricky.
A professional debt collector usually receives a bonus or commission depending on how much they can get you to pay. In some cases, they start out very firm and tell you that they cannot offer a discount at all (not true). Sometimes, they are willing to offer 70% or so, and you may have received a letter with the offer.
My experience with dealing with debt collectors over the last 12 years is that they are all working on different "numbers" (for lack of a better word), meaning that they have certain goals their bosses give them and they may or may not be able to go as low as you want.
If you get an offer that works for you, MAKE SURE YOU GET IT SENT TO YOU IN WRITING! I don't know how many times we get a client who made a "settlement agreement" over the phone, made all the payments as agreed, but found out that the debt collector denied ever making the agreement and demanded the remainder of the full amount!
For more information about "how" and "if" Debt Settlement really works, CLICK HERE.
FEDERAL STUDENT LOAN FORGIVENESS PROGRAMS
If you are like thousands upon thousands of current, former or parents of students with too much Federal Student Loans to repay, we have SOME GOOD NEWS!
Again, as with any "government" program, depending on your particular circumstances, you may qualify for one of these new programs. Basically, if you income falls within certain parameters, you may be able to have anywhere from NO PAYMENTS to maybe only a $100 or so. Make these payments for 20 years, and the remainder of the balance will be forgiven!
And, if you are in or go into some sort of "public service" career, you may only need to pay the reduced payments for 10 years!
Trying to determine not only IF YOU QUALIFY, but HOW MUCH YOUR PAYMENT WOULD BE, is not very easy (remember....government...). Let us help:
877-492-4109
Finally, if your financial circumstances are so bad that you cannot qualify for any of the programs above, then you should consider BANKRUPTCY PROTECTION!Notice I said "bankruptcy protection", as in PROTECTION FROM YOUR CREDITORS!
If you ignore the collection letters and calls and are not able to work out a repayment plan or settlement, the creditor or debt collector may decide to FILE A COMPLAINT and then you would receive a SUMMONS.
If you ignore the summons (as so many people do), then the creditor (or PLAINTIFF), will most likely be awarded a DEFAULT JUDGMENT.
Now the credior has the legal right to apply for a WRIT OF GARNISHMENT, not only for your INCOME, but possibly your BANK ACCOUNT(S).
You should seek the cousel of a BANKRUPTCY ATTORNEY right away.
So, there are 4 Programs to control you debt:
- Debt Accelerator Program
- Debt Settlement Program
- Federal Studen Loan Forgiveness Programs
- Bankruptcy
You don't have to live in fear or frustration. Get some help today!
Photo credit:
