Debt Settlement and Your Other Options

• Need to qualify first.

• Requires ownership of Real Estate property or a pledge of collateral.

• Home Equity loan reduces future equity available in your property.

• Missing payments could cause you to lose your home or the collateral you pledged.

• A transaction fee is usually required upon closing or built into the interest rates.

• Payback can be 10-20 years depending on debt balance and ability to pay back loan.

• These companies are generally funded by the credit card companies themselves.

• They are just another form of a 'collection agency' representing the creditors.

• Your principal balance will often take 5-10 years to pay down.

• You will 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, plus the fee to the credit counseling company.

• These companies still charge a monthly 'donation', typically $20-$60 per month for the entire length of the program.  You will ultimately pay thousands of dollars to have the company pay your debt in full, plus interest.

• Negative marks can remain on your credit report for up to 7 years.

• This is also viewed by lending institutions as Chapter 13 Bankruptcy, since another company is controlling your money and paying your creditors for you.      

• Represents a severe negative impact on your credit rating for 7-10 years.

• Can cost $1,000 or more to file.

• May have a negative impact on your current or future employment status, as bankruptcy is part of public record forever.

• In a Chapter 13, you may end up paying 25-75% of your debts back through the court system.

• May result in higher interest rates on future loans.

• Carries a negative stigma, mental stress, and other burdens.

• Truly a 'last resort'. Bankruptcy should be avoided if at all possible.

Debt Settlement

Debt relief through debt settlement is found through negotiating a settlement amount of the total debt. Debt settlements are negotiated based on the principal balance, which saves thousands of dollars in interest and finance charges that would generally be paid over several years. The client will also be out of debt sooner with debt settlement than with most other programs that aid in providing debt relief.

Debt settlement allows a client to become debt free in 12-36 months. This allows the client's debt to income ratio to be lowered sooner, which represents a significant factor in a client's ability to qualify for future credit. Debt settlement also allows the client to control their money and the payments to creditors. Debt settlement is the perfect program for those that do not want to get a loan and keep paying interest forever.

Private Debt Solutions (PDS) specializes in providing debt relief for its clients by providing quality debt settlement programs. In addition, it keeps the information of its clients protected and private, allowing the client to feel completely confident during their debt settlement program. PDS prides itself on providing quality debt settlement programs for the millions of people struggling to regain control of their lives.

Call them at 1.866.998.3328 or fill out their free and quick quote form online. The sooner you get started the sooner you will be out of debt and be able to enjoy more of your hard earned money.

 

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