Your credit options
Debt Management & Credit
Counseling Program
Why do so many people find themselves in need of a debt management program? Since the 1970's the onslaught of unsecured credit card offers and enticing ways to leverage purchases using personal lines of credit, more and more individuals are finding themselves caught in the "Debt Trap". Unsecured Debt is the highest risk loan creditors can make, therefore it is also the most expensive money a borrower can borrow. Based on the profound reality of compounded interest very little of your monthly payments apply toward the principal balance. This is why it can take up to 6 years for every $3,000 you owe to pay your creditors off, and this is assuming you don't make anymore purchases. Like a boat that has struck a rock and is taking on water, housing unsecured debt requires your immediate attention and action to rectify the situation. Listed are the options an individual has to choose from relating to Debt Management.
Don't hold off seeking debt help until you are drowning in debt. The Credit Exchange Corporation can help you figure out which solution best suits your needs.
Pay Forever Plan
The Pay Forever Plan is the plan that requires you make your minimum payments at the exorbitant interest charges that unsecured debt yields. As mentioned in the previous paragraph this is the option that benefits your creditor the most and will take an average 6 years for every $3,000 of debt.
Credit Counseling
Many creditors realizing that their principle may be at risk due to a debtor being over-extended may offer interest rate reduction programs contingent upon a debtor enrolling into a Credit Counseling program and closing their accounts. Credit and Debt Counseling programs offer a variety of budget planning sessions and educational programs to help better understand the risks of housing unsecured debt. They can teach financial disciplines one can engage to prevent getting stuck in the debt trap ever again.
Home Equity Loans
You can transfer the high interest of unsecured debt over to your mortgage by borrowing against the equity. This provides the benefit of lowering your monthly payment by reducing the interest and spreading the loan out over 15 years.
Debt Negotiation
Debt Negotiation is a program designed for individuals who have lost the ability to pay the minimum payments required by their creditors, and DO NOT want to file for bankruptcy. The goal is to offer a cash settlement on the balances owed. This is advantageous for the creditors to accept a settlement offer on past due accounts because in a lot of cases the creditor sells the debt to collection agencies for pennies on the dollar. Debt Negotiation does have inherent risks such as sending the accounts to collections, judgments, and wage garnishments. It also has a negative impact on your credit rating.