1. BANKRUPTCY Did you know that every year, over one million Americans file bankruptcy? The pressure from collection agencies is what brings forth this enormous figure. If you ever file bankruptcy, no one will ever win. The bill collectors will receive no money and your credit will be scarred for a whole decade! Your bankruptcy discharge can also appear in public court records up to TWO DECADES.
In addition, bankruptcy can affect you when trying to purchase a home or car, finding a job, obtaining insurance, or getting a security clearance. Moreover, depending on which bankruptcy you file for (Chapter 7 or Chapter 13) the courts may force you to make payments to your creditors. So may need to pay back a portion of the debt with interest. You should only consider bankruptcy as your LAST OPTION!
2. DEBT CONSOLIDATION LOANS
Statistics show that about 80% of people who apply for a debt consolidation loan find themselves digging themselves into a deeper debt. The philosophy is simple:
It is impossible to borrow your way out of debt . . .
Debt consolidation loans do not reduce the amount you owe; instead, you end up paying back 100% of the loan plus interest. All you are doing is exchanging one debt for another at a lower interest rate. When applying for a debt consolidation loan, you will be asked to secure the loan against some form of asset (collateral); usually a house or car. But this transfers your unsecured debt to a "secured" loan, which put your possessions at risk! Numerous loans are consolidated into a home equity loan that is stretched out over a 30-year period! What would happen to your property if you had future financial difficulties? The majority of people who enter a debt consolidation loan program neglect to cancel their credit cards after they have been paid off, so it leaves them with a new source of spending power. Before they know it, people are over the limit and in debt once more! Statistically, 65% of people who use debt consolidation loans to pay off their debts will go over the limit on their cards again. In the end, they not only have to pay back the consolidation loan, but the credit cards as well. They unknowingly double their debts!
3. CREDIT COUNSELING (CONSOLIDATION) Although they claim "non-profit" status, Credit Counseling programs work much like a collection agency. Their credit counselors get paid an average commission of 12-15% of the amount they collect for the creditors. In addition, they can charge you a monthly program fee ranging fro $15-$40. Today the word, "non-profit" is nothing more than a filing status for the multi-billion dollar credit counseling industry. According to a recent report many of these "non-profit" counselors employ very high-paid executives.
The benefits you can expect to receive through credit counseling are that they have prearranged figures with creditors to reduce your interest rate and minimum payments. The average minimum reduction is 8%. However, some creditors will not go below 20% and some refuse to participate in these programs. All of your credit cards will also be cancelled and you will need to pay 100% of the full debt amount, including interest! But there's more. Did you know that your new monthly payment through credit counseling is generally higher than the original minimum payment on your accounts? How can you handle paying a HIGHER monthly payment when you are already struggling to make ends meet? These programs can take about 4 to 7 years to pay off your the creditors. However, statistics show that "79 out of 100 people that enroll in these programs drop out" before they complete them.
4. DOING NOTHING
Your other option is to do NOTHING! This is apparently the most common, but least effective choice. However, many people who do this, do not realize that they are only avoiding the inevitable: YOUR DEBTS MUST EVENTUALLY BE TAKEN CARE OF! Choosing to do nothing does not get rid of the problem. And if you are late with your payments, constant harassing phone calls and letters from your creditors as well as late and over-the-limit fees, will overwhelm you. By doing nothing, many consumers take on the animosity of the collection agencies and sometimes end up with liens, judgments, and garnished wages. It's simply NOT WORTH IT!
5. DEBT NEGOTIATION
Finally, a more sensible approach
that can affordably, safely, and quickly ELIMINATE your debt
load! It's called Debt Negotiation, and USFM Group offers you
the most superior solution, The MyDebtNegotiation Program.
YOU MAY QUALIFY IF FACE ANY OF THESE PROBLEMS:
Excessive problems debts
Bad Credit you want to improve
Turned down to buy a car or home
Bothered by bill collection calls
Too much interest and late fees
Threatened with lawsuits, judgments or liens
Thinking about BANKRUPTCY
REDUCE YOUR DEBT UP TO 70% OF THE PRINCIPAL BALANCE!
"Debt Free at Last!
A Superior Solution to Bankruptcy and Credit Counseling"
Learn how to stop bill collector harassment, live without borrowing a single dime from the banks and much more. Plus many more debt elimination secrets!
