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Other Debt Relief Options

Pay Minimum (Do nothing)

Interest can range from as low as 1.9% to as high as 30% and creditors can raise rates at any time.
You'll pay nearly 50% of your original balance in interest alone over the first 3 years. You are not making a dent on your principal balance.
If your rates are 25% or higher, it is practically impossible to pay off your debt by making minimum payments unless you pay at least 3% of the balance in minimum payments monthly. Even then, it would take you over 35 years to pay off your debt.
At lower rates, it will still take 20 to 40 years to pay off your debt with minimum payments with little room for obtaining additional credit.
If you've already stopped making payments, you are destroying your credit while not resolving any of your debt in the process.

Both Chapter 7 and Chapter 13 bankruptcy represent a severe negative impact on your credit for 7-10 years.
Can cost up to $2,500 to file.
May have a negative impact on your employment status.
In a Chapter 13 filing, you may end up paying 75 - 100% of your debt back.
Chapter 7 is much more difficult to qualify for under the new bankruptcy laws.
May result in higher interest rates on future loans.
Carries a negative stigma, mental stress, and other burdens.
Bankruptcy is a 'last resort'.
Chapter 13 completion rates average only 32%.

These companies are generally funded by the credit card companies themselves. They do not necessarily have your interest at heart.
They are just another form of 'collection agency' they act as a bill paying service of which a survey of credit counseling companies showed that the average interest rate charged is around 11%. Credit counseling may make sense in some situations. Talk to one of our IADPA certified Debt Consultants to see if it is a good choice for you.
They will consolidate your bills into one monthly payment and lower interest rates.
Your Balance will often take 3-7 years to pay down.
Pay over 25% of principal balance in interest fees over the first three years.
You'll end up paying back your full balance plus interest.
Overall fees of an average credit counseling program are equivalent to or greater than those of a debt settlement programs.
Negative impact on your credit from 5 - 8 years.
This is often viewed by lending institutions as similar to Chapter 13 Bankruptcy.
The average completion rate of consumer credit counseling is approximately 26%.
If you miss multiple payments you may be subject to paying back past interest at your old rates that you entered into the program with.

Need to qualify first.
Often requires ownership of Real Estate property or a pledge of collateral.
Home Equity loan reduces future equity available in your property.
Consolidates your credit card balances.
Missing payments could cause you to lose your home or the collateral you pledged.
A transaction fee is usually required upon closing or is built into the interest rates.
Payback can be 10-20 years depending on debt balance and ability to pay back loan.
You will pay back the full amount of credit card balances plus interest.
Bottom line: You are exchanging your unsecured debts for a secured debt - a big risk.

Rapidly becoming the top method for consumers with financial hardships to get rid of problem debt.
Companies are independent and not affiliated with your creditors, and thus, are working for your best interests. There are a few exceptions to this rule such as a company call Credit Assist, so be aware.
Fees are spread out over time, usually 12-24 months depending on the length of the program.
Client's debt is paid off in anywhere from 18 - 36 months depending on cash availability.
Will receive an 'open delinquency' on your credit until debts are settled.
Lowers your debt to income ratio more quickly than Consumer Credit Counseling, which represents a significant factor in your ability to quality for a loan.
A plan to settle your debt for less than the princpal balance.
Total cost of program may be significantly less than credit counseling for those that complete the program.
Negative impact on your credit for at least four years.
We advise that before you enter another debt settlement program, you check to see if the company is licensed if required and has a insurance policy that covers you in case of dishonesty, fraud, theft, and other misconduct.

Before making this important decision, please Contact one of our Debt Consultants to explain our program.