If you are feeling overwhelmed by your debt…you are not alone. Often it can feel like you are on a hamster wheel of making minimum payments with no end in sight. Slowly chipping away at a mountain of debt is not only demoralizing but stressful as your hard-earned money just seems to vanish simply to pay interest and fees. The sad truth is this is exactly where creditors want you. If you have questionable credit, then higher than normal interest fees can simply add insult to injury.
Do NOT Do This!
If you are in this situation, one of the biggest mistakes you can possible make is to take out a loan to pay off a loan. This short-term strategy may seem like a good idea but will only make matters worse for you in the long run. All you will be doing is taking one problem and making it 2 problems.
What is the Solution
The good news is that there are companies out there that will not only help to consolidate your debt, but they will negotiate reduced amounts with your creditors so that you can get on top of these bills. Not sure which solution is best for you? Let’s talk about the differences as well as pros and cons of these services.
Debt Consolidation vs. Debt Settlement
Debt consolidation is simply bundling all your high interest debt into one easy and manageable payment at a reduced interest rate. It won’t have a negative impact your credit score but it also will not reduce the amount that you owe. In addition, you will usually need to have good credit to qualify for this type of program. This is a great solution for those with healthy credit who want simplify their payments and reduce the interest they are currently paying on their debts.
Debt settlement, also referred to as debt negotiation or debt resolution, is when you negotiate with creditors to pay less than what you owe on your outstanding debt. This type of serviced is designed for people who cannot make required minimum payments and/or are considering bankruptcy. Debt Settlement will have a negative impact on your credit score but chances are your credit has already been tarnished at this point in the game. It may help people resolve debts relatively quickly.
Types of Debt that Qualify
The types of debt that qualify are unsecured debts of $10,000 or more.
This includes: Credit Card Debt, Personal Loan Debt, Medical Debt
This Does Not include: Auto Loans, Home Loans
We only recommend companies we trust and we trust Freedom Debt Relief. In fact, they have resolved $8 Billion is debt since 2002 and a consultation with one of their representatives is absolutely FREE. If you have more than $10,000 in personal and credit card debt we are confident that they can help you. You have nothing to lose by contacting them…except your debt!
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