Debt Elimination
When you're in debt, you might feel hopeless and desperate. (This is the voice of experience talking.) At times you consider if you should file for bankruptcy. But don't!! That leaves a black mark on your credit for ten years. Besides, Congress just enacted a bill that requires anyone who's filing for bankruptcy to go through a debt management program first. What an endorsement for debt relief and the entire
What Debt Management Entails
Debt elimination is an all-encompassing term that covers many different debt reduction programs. Here's a brief outline of a few
- Debt Consolidation - A
debt elimination program that involves negotiation by a debt management professional to get your unsecured debt balances and interest rates lowered. Your newly lowered balances are then combined, and you make one monthly payment to the debt consolidation company at a reduced interest rate, which they distribute among your creditors. Because of the reductions, you can become debt free in about five years. - Debt Consolidation Loan - A loan given to you to pay off your unsecured debts. Some say this debt elimination program is just replacing one set of debts with another, and that's true. But wouldn't you rather have only one payment to keep track of each month when it comes to your unsecured debt than several? But that's not even the biggest benefit. The biggest benefit of a debt consolidation loan is that you pay the loan back at an interest rate that's a lot, lot less than what you were probably paying on your unsecured debts. (Most companies shoot for rates in the single-digits.
- Debt Consolidation Mortgage - A
debt elimination tool that allows you to borrow from the equity in your house to pay of your unsecured debts. Your payment is combined with your mortgage, and you get the same interest rate as your mortgage. In some cases, the interest is even tax-deductible (check with your tax advisor to see if this will work for your tax situation). On your credit report, it appears that you've refinanced your house. And if you find an interest rate lower than what you're paying on your mortgage, refinancing at the same time is a great idea. - Debt Settlement - A
debt elimination tool that allows you to pay your debt off at 30-50 cents on the dollar. However, there are many drawbacks to this. First, you generally have to have access to enough cash to pay off the new, lower amount right away. Some debt settlement companies will extend it up to a year, and others up to three, but those are rare. The major drawback is that this leaves a little "blip" on your credit report. (It's still not as bad as bankruptcy though.) - Total debt elimination!!!! Grab the bull by the horns and have yourself a whole shanke of grade A, debt free boeuf!
With so many debt elimination programs what's holding you back? You're never under any obligation to anydebt elimination services to check things out further, so we suggest you search the Internet and complete a handful of the online forms that most companies offer to get an idea of your financial situation. They'll contact you within 24 hours with their recommendations, and you can choose among them. Research these companies to make sure they are nationally certified and accredited, make sure they have a physical street address (not just a post office box), make sure your creditors are willing to work with them, and make sure they are ready and willing to answer any questions you have. Once you choose a debt management company and enroll in the right program, you'll be walking in tall cotton! And do not be tempted to stray from the path - stay on the straight and narrow and find freedom with legal debt elimination only!
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