DEBT
PROGRAMS AVAILABLE IN THE MARKETPLACE
Debt consolidation –
Combines all of your unsecured debts into one payment
at a lower interest rate and shorter payoff duration.
In many cases any late fees and penalties are eliminated.
Debt Consolidation is in most cases the most beneficial
program for the consumer. Debt Consolidation is the
general term used for consolidating bills through a
third party.
Debt management
–This
is basically the same as Debt Consolidation except for
the way it is applied. In some cases companies offering
debt management will want to manage your debts or give
you a budget that you must strictly adhere to in order
to gain any benefits from their programs.
Consumer credit counseling
– This again is debt consolidation with the focus
on credit counseling. Before you go through a counseling
agency, we want you to understand their fundamental
business belief. They assume you need financial counseling
to get out of debt. Credit counseling companies assume
this regardless of how you ended up in your unique financial
situation. In most cases these companies will either
manage your debts or give you a budget that you must
adhere to in order to gain any benefits from their programs.
Debt consolidation loan –
Is receiving a loan to pay off your unsecured debts.
This is usually a second mortgage on your home. It can
get your monthly payments down but it will not save
you as much interest. There is a huge downside to this
type of consolidation: You will be securing your unsecured
debts by putting your house at risk. If you run into
trouble you can lose your home on account of originally
unsecured debt. We do not endorse this type of consolidation
as it is too risky and we all know how uncertain the
future is!
Debt settlement – Is
settling one's debt through non compliance. Unfortunately,
there is no softer term to describe it. Now don’t
get us wrong – there are situations where debt
settlement can be beneficial to the consumer. Here is
an example of how these companies work. You owe $20,000
and you are 8 months or more behind; a debt settlement
company will negotiate a settlement with your creditors.
Let’s say in this case it is for $10,000. This
will save you $10,000. You will either have to pay off
the remaining $10,000 in one lump sum or make monthly
payments on it. If you elect to make payments, it will
not stop the creditors from trying to get their debt
through a judgment, garnishment or collection agencies.
It will be a long road and it will destroy your credit.
If you have concerns about your credit rating we strongly
advise against this type of program.
What Is Debt Consolidation?
American Debt Foundation and its servicing agents work
on mutual agreements with every participating creditor
to assist families and individuals become debt free.
By entering into our debt consolidation
program, the creditors will make a compromise by reducing
and in some cases eliminating the interest that you
are currently being charged. The compromise the creditors
will ask of you in return is that you don't charge on
any of the credit cards that are included in this program.
What this means to you is the money
you pay toward your debts through the program are going
toward reducing your principal rather than going to
the finance charges. In order for the creditors to do
that, they require minimum monthly payments based on
your balances in order for you to qualify for this program.
Once you are set up on the program,
you will have one monthly payment that will satisfy
all the creditors that are included in the program.
You will also be able to choose the payment date for
your convenience. Your accounts will be re-aged and
all creditors will have set the same date for payment
every month. You then make one monthly payment thru
the program, and your payment is disbursed to your creditors.
Your creditors will still send you
monthly statements so that you can see your adjusted
interest rates and more importantly, you will be able
to see your balances going down. In other words, you
will see the progress that you make every month directly
through your own creditors.
To speak with one of our Financial Consultants and see
what our program can do for you,
Click Here
and fill out a FREE, no obligation form.
You will be contacted within 24 to 48 hours.
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