Increase Income Option
There are many ways to earn extra income. We are credit counselors and not job counselors so it is better to seek out ways to increase your income on your own. However, if helping people budget their money and settle their debts interests you our Debt Settlement Specialist Opportunity may put some extra money in your pocket.
Reduce Expense Option
When you do the math and find out there is not enough money at the ends of the month to pay your debts, and barely enough money to pay your living expenses (food, rent, medical, etc.) it may be time to enroll in a Debt Management Plan or Debt Settlement Plan.
Debt Management Plan
The first step is to calculate all your income and expenses to see how much you are short each month. A good rule of thumb is if you are 10% to 20% over budget, a Debt Management Plan may be right for you. A Debt Management Plan offered by credit card companies through Credit Counseling Agencies will reduce your payments and lower your interest rates by about 20% maximum each month. A notation is made on your credit report that you are enrolled in a Debt Management Plan, and further credit is frozen until you pay off all of your accounts. After your accounts are paid in full, your credit rating is restored and everything returns to “normal.”
Debt Settlement Plan
A Debt Settlement Plan is the last option before filing bankruptcy and is intended for consumers that can no longer make the minimum payments on their unsecured debts, but can afford something less and want to avoid bankruptcy. Usually the consumer has defaulted (not made payments) in their debts.
Debt Settlement Plans allow you to pay what you can afford each month and nothing more. Debt Settlement is usually proposed by creditors after you have defaulted on your debts. As an example: let’s say you have not paid your credit card in three months, the credit card companies may offer to settle your account for 25% less if you pay the balance off in two installments.
Debt Settlement Companies or Debt Settlement Attorneys negotiate reduced payment amounts for you and you make payments into a special trust account until an agreeable figure is reached, usually 50% of the amount owed. A successful Debt Settlement Plan will include a reduced payment amount to satisfy the debt, and include what will be reported to the credit bureau once the debt is settled or paid in full. In addition, the creditor may agree not to pursue legal action against you or not send you a 1099 tax form at the end of the year for any unpaid balance.
In most all cases, unsecured debts will be accepted. Unsecured debts are debts that are not secured by an asset. The most common types of unsecured debts are credit cards, store cards, medical bills and most debts in collections.
Now that your Personal Information, Income and Expense Summary, and Creditor Account information is completed call us for your credit counseling session 1-888-502-3907.
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