Your Options

1. Hope for the best and do nothing

• Interest rates usually average over 18% and creditors can raise rates at any time.

• You'll pay nearly 50% of your original balance in interest alone over the first 3 years. You are not making a dent on your principal balance.

• If your rates are 25% or higher, it is physically impossible to pay off your debt by making minimum payments.

• You will take 20 to 40 years before becoming debt free with little room for obtaining additional credit.

• If you've already stopped making payments, you are destroying your credit while not eliminating any of your debt in the process.

2. File Bankruptcy

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

• Can cost up to $2,500 to file.

• May have a negative impact on your employment status.

• In a Chapter 13, you may end up paying 75 - 100% of your debts back

• Will eliminate all of your unsecured debt in a Chapter 7, but it is much more difficult to qualify for under the new bankruptcy laws.

• 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.

• Chapter 13 completion rates average only 32%.

3. Use Consumer Credit Counseling

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

• They are just another form of 'collection agency' to take your money

• They will consolidate your bills into one monthly payment and lower interest rates.

• Your Balance will often take 3-7 years to pay down.

• 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.

• These companies still charge a monthly 'donation', typically $20-$50

• Overall fees over an average credit counseling program are equivalent to or greater than those of a debt settlement programs

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

• This is also viewed by lending institutions as Chapter 13 Bankruptcy.

• The average completion rate of consumer credit counseling is approximately 26%

4. Debt Consolidation Loans

• 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.

• Eliminates your credit card balances.

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

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

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

• You will pay back the full amount of credit card balances.

• Bottom line: You are exchanging your unsecured debts for a secured debt - a big risk.

5. Debt Negotiation and Settlement Program

• Rapidly becoming the top method for consumers to get rid of problem debt.

• Negotiates based on your principal balance, irrespective of the interest and finance charges your creditors are trying to add on your account.

• Independent companies not affiliated with your creditors working for your best interests.

• Charges a fee to get started but offers financing options.

• Client's debt is paid off in anywhere from 15- 36 months depending on cash availability.

• Will receive an 'open delinquency' on your credit until debts are settled.

• Affects credit much like debt consolidation firms except the settlement is ultimately paid by the consumer directly to the creditor, unlike with a consolidation company.

• Lowers your debt to income ratio more quickly than Consumer Credit Counseling, which represents a significant factor in your ability to quality for a loan.

• You may typically end up paying only 40-60%* of your current balance.

• We advise that before you enter another debt settlement program, you check with the BBB and also see if the company is licensed, bonded and insured.

Before making this important decision, please Contact one of our debt specialist to explain our program. Our program will get you out of debt within a 15-36 month time period while settling 40-60%* of your Debt.

* Settlement estimates of 40 - 60% are examples of past performance and are not intended to be a guarantee of future settlement results. Results may vary based on individual circumstances.