Consumer Credit Counseling for Good Credit, Debt Settlement for Bad Credit

     If you are reading this article you most likely are experiencing, or may soon experience one or more of the painful situations below.  You also may have seen advertisements for consumer credit counseling (CCCS) also known as debt consolidation, and think that it may be the answer to your financial problems.  You may be shocked at what the real solution may be.

     Facts about Debt; 

Over 75% of Americans are three paychecks away from having to file a bankruptcy.
Over 1.5 million will enroll in a CCCS or debt management program.  Another 1.5 million will file for BK.  Over 37 million people will try to negotiate themselves directly with creditors.  The creditors love this because the people who are in debt are not professionals and do not know how to work the system.  You could do a better job for yourself if you knew what the rules of the game where.  We will discuss this in depth later in the article.
Over 65% of marriages that fail are due to financial problems related to having too much debt.
When you make a purchase with a credit card, on average you will pay over 30% more for it than if you had purchased the item with cash.
The typical credit card payment is divided into 90% for the interest payment and 10% for principal reduction.  The principal amount is what the item originally cost you.
Over 70% of all credit card accounts have only the minimum monthly payments being made on them by the consumer.

     If any of this sounds familiar, you may want to see what your options are to get out of debt quickly.  Debt Negotiation may be for you.  Here is the list of questions to consider if you think you may be in trouble with your debt load.
     Do you have a legitimate financial hardship?  This would include loss in income resulting from a lost job, death in the family, divorce, loss of child support or some other serious life event.  It may not be drastic but there should be an identifiable circumstance that you can see that got you in trouble.  A creditor is not just going to wipe the slate clean.  They need a reason to excuse a portion of what you owe to them.

     Are you committed in avoiding a Bankruptcy?  Paying your debt off is honorable; threatening your creditors with bankruptcy at every turn is not.  After all, you were the one who borrowed the money.

     Do you owe more than $10,000 in unsecured credit debt?  It can be difficult to negotiate with a creditor for less than this amount owed.

     Is the bulk of your debt from credit cards that you are now late on, or heading that way?  I am asking this because the easiest debt to negotiate is delinquent credit card debt.  Secured debt such as cars and homes are not easy to negotiate.  In fact I am not aware of any creditors that issue secured debt that would be willing to negotiate with you.  Government student loans are also non negotiable.  The government always gets their money.  The best debts to work with are credit cards, department store credit cards, medical bills, non government student loans and financing contracts.

     If you are in a tight financial spot and are considering debt negotiation, check around.  Ask for references from the debt negotiation firm.  You best bet may be to find an attorney who does debt settlement as part of their practice.  Typically they can settle your debt for the same price as using a regular non licensed third party debt negotiator.  I also recommend searching the “Rip Off Report” on the internet.

     The sooner you start, the sooner you will be out of debt.  It is a prize definitely worth working for no matter what life may throw at you along the way.  Just stay the course and it will all work out in your favor.