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If you’ve been watching the news at all lately, you have seen that our federal government has a huge problem with debt. I read just this morning that it's racking up debt at the rate of about $2.3 billion a day and that our debt has grown to a total of around $9 trillion. I don't know about you, but I can't even imagine what $9 trillion would look like.
A little bit of debt isn't necessarily bad
For many Americans, the word debt conjures up images of slavery or of rolling a boulder up a hill every day only to see it roll right back down. Actually, having some debt is not a bad thing. In fact, being a little bit in debt can be a good thing because it's hard to get new credit unless you have had some debt and handled it responsibly. But being heavily in debt can be a living nightmare.
Debt relief programs
If you're struggling with debt, the bad news is that there is no quick, easy way to get rid of it. However, there are debt relief programs available that can help. You could consolidate your debts with a bank loan or by going to a consumer credit counseling agency. Both of these mean that you would have just one payment a month in place of the multiple payments you're probably making now. Your payment will also be less than the total of the monthly payments you are currently making and, in fact, could be much less. For example, if you have credit card debt, you're probably paying interest of 18% or higher. You should be able to get a debt consolidation loan at 8% or less, which could save you several hundred dollars a month.
"Snowball" your credit card debts
Another way to achieve debt relief is by "snowballing" your credit card debts. This means doubling up on the payments on the credit card with the highest interest rate until you totally pay it off. This frees up money that you would then use to start paying off the credit card that has the second highest interest rate until you've paid it off and so on – until you've paid off all your credit cards.
Our debt relief programs
We provide debt relief through a program of debt settlement. The way this works is that we contact all of your lenders where you have unsecured debts and negotiate settlements. We commonly settle debts for a fraction of what you owe, which saves our clients thousands of dollars. If you elect to let us settle your debts, you would no longer have to pay your creditors but would send us a check every month instead. We would put this money into an FDIC- insured trust account, which you would manage. When all your creditors have agreed to our settlement offers, we then use this money to pay them off.
Why debt settlement is better than filing for bankruptcy
A chapter 7 bankruptcy can get most of your unsecured debts – especially credit card debts – eliminated in six months or less. However, it will leave a large stain on your credit report, which will stay there for 10 years. It will be difficult for you to buy a car or a house for the first several years after your bankruptcy and when you do get credit, including a mortgage, it will have a higher interest rate. You will even probably have to pay more for your auto insurance.
Debt settlement will also have an effect on your credit record but it won't be as severe as if you had declared bankruptcy. Your creditors will be happier because you will have paid them at least a portion of what you owed. And the debts on your credit report will be marked "account paid in full but for less than the balance owed". So you should be able to get new credit quicker and without having to pay outrageously high interest rates.
We can't help the federal government with its humongous debt but we could probably help you. Call our toll-free number today to learn about our debt relief programs.