DEBT - WHAT IS ITDebt
Debt can be a terrifying thing to have hanging over your head,
especially when you have problems paying it back. We realize there is
nothing worse than having to choose between paying your bill or feeding
your family. Don’t be overwhelmed, you have options available to
become debt free. First lets lets look at the differences in debt.
There are two forms of debt – secured debt & unsecured debt.
Secured Debt is a loan where the creditor retains a security
interest in an item of real or personal property such as a house or an
automobile. If you fall behind on payments on this debt, the lender can
repossess the property to mitigate their damages. You could remain
liable for any deficiency balance owing after your property has been
repossessed and sold. The laws regarding home mortgages vary from state
to state and lenders’ rights generally depend on the terms of the
mortgage and whether any other lenders have an interest in the property.
Unsecured Debt generally arises from a contract you enter into with
a creditor, which enables you to obtain goods or services on credit in
exchange for your promise to pay back the debt. This debt is not
collateralized by property and commonly includes credit cards debt,
medical debt, commercial debt, personal loans, and consumer debt. If
you fall behind on this type of debt, the lender’s recourse is to take
legal action, or try and work out an amicable arrangement to pay the
debt.
A secured debt may become an unsecured debt when the property
securing the loan has already been repossessed and sold by the
creditor. If the sale of the property still does not cover the
contractual obligation or debt, a “deficiency balance” is now owed by
the consumer. This deficiency balance becomes an unsecured debt.
If you are like most people in debt, you have been researching debt
solutions. In today's economy, there are hundreds of "debt-settlment"
companies springing up. Many debt settlement companies make false
promises and are out to make a quick buck…at your expense. Other debt reduction companies are funded by your creditors. Unfortunately the
industry is not closely regulated and is filled with 'salesmen', as
opposed to professionals.
There are many different debt solutions that could help you become
debt free. You may want to look into debt reduction with either a
debt resolution company or a debt counseling company . Both of these
options could have you debt free, however debt counseling may take longer.
Both of these debt management options are different and the results may
vary depending on your situation and your goals. The first thing
you want to do is speak with a debt management agency (debt conseling
or debt resolution) about your specific situation.
Debt counseling companies are generally funded by your creditors
and will help you consolidate your debt giving you one monthly payment
and lower interest rates. Debt counseling can be just another form of
'collection agency' to take your money. This debt solution will often
take 5-10 years to pay down and you will be paying over 25% of
principal balance in interest fees over the first three years. With
this type of debt management you'll end up paying back your full
balance plus.
Another type of debt management is debt resolution (debt negotiation). The debt resolution method is rapidly
being recognized as the best way to become debt free. We do not work
for credit card companies like debt counseling programs and will help
you to avoid bankruptcy if possible. Debt resolution companies charge a fee to get
started but a reputable program will have you start saving money immediately.
Debt resolution could reduce your debt signifigantly (typically, your balances are reduced 40-60%). As with the debt
counseling program, debt resolution will also give you only one
monthly payment that you control. Debt resolution could also have you
debt free in as little as 12 months, depending on your individual situation. To receive a free debt resolution
consultation please fill out the form to the right or call 866-559-3328
for immediate assistance. |
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Debt Settlement - Straight Talk