The emergence of credit card over usage has a direct correlation to a lack of proper financial management on the part of the consumer. Part of the blame also has to fall on the lap of the financial institutions who were only taking advantage of the regulations put in place by congress, so there is plenty of blame to go around. This economic meltdown can be linked directly to the housing boom where credit was handed out to anyone who could sign the documents, having mortgages originated with no income documentation, interest only loans and option arms; which turned into negative amortization, since borrowers could not afford to pay the 30 or 15-year option and relied on the minimum payment which did not even cover the interest due on a monthly basis. The end result created a situation where the loan balance was actually increasing on a monthly basis. This loose credit environment also allowed consumers to rack up credit card debts that were averaging more than $10,000.00 per household.
The good news is that there are alternatives for consumers who have accumulated debts they can no longer sustain. They can be solved legally and that is only possible if you look for a debt settlement company that is attorney based. This form of settlement can be found online and you can locate a legitimate company by visiting their website and asking the right questions. Are they truly attorney based? Do they spread their legal fees out over longer period of time, for example 15-24 months? Non-attorney based companies charge fees up front and the consumer does not begin their saving plan for 5-8 months, not good for obvious reasons. Do you start building your savings account from month one? Do they charge a flat fee? (What you should look for) Are there additional charges, enrollment and administrative fees? ( This dramatically increases the fee you pay overall and is not thebest option)
There are many legal based companies that can reduce your debt by 40-60 percent; in some cases it can be reduced by 70%. You usually need at least $10,000.00 in unsecured debt. The company you are dealing with should have a qualifying process to determine whether or not debt settlement is appropriate for your particular situation. They should be looking at your net income, your monthly obligations and the cost of the savings plan they are recommending. The bottom line should be that they are entering you into a plan that offers a clear benefit to you. If they are not asking these questions look elsewhere for help. It is important to understand that there are other options available to consumers who are in over their head with debt. They are as follows,consolidation, credit counseling, settlement or bankruptcy through which a complete write off of your debt can be done, if the court agrees.
The options referenced above are effective based on the type of liability and the amount of debt involved. If you have ample income and a low amount of debt, consolidation or credit counseling could work and you would pay the debt off on a monthly basis. If you happen to have a large number of outstanding debts and are struggling to makes ends meet, then it would be wise to choose settlement. Bankruptcy should be the last option that you consider.
Attorney based debt settlement is clearly the better option than bankruptcy and due to the staggering amount of consumer debt today, creditors are very eager to reach a settlement agreement. For more information visit our website at http://www.certifiedfinancialsolutions.com or call 1-877-293-0008 and we would be happy to conduct a free financial analysis to determine if debt settlement is the proper path for you
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