Debt Settlement: Debt Settlement has been around for decades, yet has not become a fully devolved industry. In theory, the higher the risk to the creditor the more likely they are to settle. In most cases a debt settlement company will have continued communication with several banks and lenders thus generating “contacts" at the banks or collection agencies. In most every situation the consumer that begins a settlement program will be concerned about their credit. I must ask what credit report? The only report they have is a report full or debt not credit. Being worried about your credit should be your last concern when faced with mounting debt. The focus should be trying to avoid wage garnishment, you could loose everything in your banks and up to 50% of your household income. Only an IAPDA Certified Debt Arbitrator would be qualified enough to discuss the option of debt settlement.
Further, In the search for a qualified company search out their BBB report on line at bbb.org
With Debt Settlement:
Avoid potential bankruptcies and the public record that comes with it
Resolve your delinquent accounts for far less than you owe (up to 60-70%)
Eliminate harassing phone calls
Create a manageable financial situation that agrees with your finances
Debt Consolidation: Is debt consolidation right for you? Debt consolidation is always a great way to bring resolve to debt as long as clients have a process in place before the consolidation to settle the debt. If there is no procedure in place to discount the amount owed, there is no real reason to conduct a consolidation loan. With Debt consolidation your simply addressing the symptoms not the illness. Lowering the monthly payment is somewhat beneficial, but the end result may not be what was desired. A simple trade out of loans does not lower the amount owed or monthly payment, and in most cases, clients are going to end up owing double what they started with. About 80% of borrowers use debt consolidations loans, bringing accounts to a zero balance, but end up owing another lender at a lower or longer rate/term. In most cases, people that go through debt consolidation will continue to use the accounts that were paid off, resulting in double the debt. The end result is, if clients have a well qualified debt settlement company that has a perfect reporting with the BBB and is IAPDA Certified, that company should handle all the negotiations before the debt consolidation and then they are sure to come out on top. End result with Debt Consolidation: Don't be silly, You Can Not Borrow Your Way Out Of Debt. Your simply moving accounts around, and in most cases, you end up in double the debt. Often, consumers will use the equity in their home for this, and they are simply trading the most secure assets they will ever own to replace credit card debt. Unless you have a plan in place to combat the debt, Debt Consolidation is foolish banking.
Bankruptcy: First, if you reside in any of the following states you need to consult and IAPDA Certified Debt Arbitrator before wasting money on a bankruptcy attorney. These states are Texas, North and South Carolina, Florida, Pennsylvania, and Iowa. These states are much more consumer friendly and Debt Settlement is most likely your best option. As most of you already know, the Federal rules of Bankruptcy have changed to the greater good of the creditor. See here rules of Bankruptcy, thought this is not legal advice, it comes from the FTC. This is a must read for those considering Bankruptcy. As an option to bring full resolve and complete satisfaction to both your finances and the needs of your creditor you need full disclosure from any source you seek information. Here are a few companies to look out for, and have a poor track record.
Credit Solution Of America (Addison Texas) Over 400 BBB Complaints
Financial Rescue ( FTC LAW SUIT FILED)
Debt XS (Poor BBB record)
These are examples on unsatisfactory records with the BBB. , Governmental actions and clear poor practice. With any of these decisions, you should know there is no looking back as anytime you alter the original agreement with your creditor you will take on risk.
Tom Bates, CDA
Absolute Debt Solutions
Absolute Credit Repair