Based off experience in helping people in the exact situation you are in, We wanted to give you some information that past clients have found extremely helpful. It is my job to make sure that all of my clients are aware of the programs available to them to get out of debt and achieve the financial freedom they are looking for. Please take a moment to review all the options that people are most likely thinking about:
Option 1: Continuing to make the minimum monthly payment and do nothing at all.
Making Minimum Monthly payments do NOT reduce your balances at all. It is realistically impossible to reduce your debt by making minimum monthly payments.
If you continue to make your minimum payments, in the first 3 years you pay 50% of your original balance in interest alone.
Your credit card companies can increase your interest rates anytime they choose.
Option 2: Consumer Credit Counseling
Reduce interest rates from daily compound interest into FIXED interest. Simply meaning, more money will go towards paying off your balances each month.
Consolidate all of your credit card debt into 1 monthly payment.
The one drawback to this program is that your monthly payment will most likely stay the same or increase.
Option 3: Bankruptcy- Chapter 7 or 13
Bankruptcy has a severe negative impact on your credit rating for 7-10 years.
Bankruptcy may have a negative effect on your employment status.
Bankruptcy may cost $1,500 or more to file, including added attorney fees and filing fees.
Bankruptcy carries a negative stigma, mental stress, and other burdens.
If at all possible Bankruptcy should be avoided.
OR Option 4: Debt Resolution- (our recommended program for your situation)
A dispute package is sent to each collection agency which legally demands they provide proof of their right to collect on the account.
If the collection agency is unable to verify their authorization to collect, the account is classified as invalid and unable to be collected upon.
With this program you are immediately put into a credit repair program where a credit analysis team is constantly working on your file to improve your credit score.
Most cost effective way for you to eliminate your debt.
I hope this helps you in deciding what your best course of action may be. Regardless of what you choose I am here to help. If you have any questions about the options I have listed above please feel free to contact me. I look forward to hearing from you.
