More from Mr. Nace
Mr. Nace was the former Executive Director of the National Center for Debt Elimination a former 501 © 3 Credit Counseling agency that managed over $200,000,000 in debt. Mr. Nace also spent 3 years as a Consumer Advocate representing consumer's rights against unscrupulous creditor harassment. Mr. Nace is also the author of the book called Learn to LIVE Debt FREE®. Mr. Nace has taught Debt Elimination Seminars to adult learners at over 150 Community Colleges and Universities across the the United States and Canada.
Please continue to read about what Mr. Nace has to say about your debt situation.
Has credit card debt got you thinking about bankruptcy?
You're not the only one these days.
Even with the new bankruptcy laws, credit card debt continues to climb. Unfortunately for most of us, our paychecks don't climb as quickly.
If you're on the verge of bankruptcy, you may have another alternative. Debt settlement is a process where you negotiate with your creditors to pay off your debts at a reduced amount - for example, if you owe $12,000, you can settlement a payoff of $5,000 - $6000. The benefit for the creditor is that they get more money than they may have through bankruptcy, and they get the money sooner. The benefit for you is obvious - you get out of debt faster, and save lots of money in interest.
Where do you get the money to pay off the debt?
Take the money you would have normally used to pay your credit card bills, and have it put aside, and when you've accumulate enough to pay off the debt, we will settle at a reduced amount that you agree to.
If this sounds confusing, that's ok. It's really not.
I can speak from experience, at one time I owed over $100,000 in credit card debt. Debt Settlement, even with the fees, is a good deal - plus you save a lot money by not having to pay the high interest rates on your credit card bills. Sure, it is a more aggressive approach to getting out of debt than making minimum payments, using credit counseling, getting a debt consolidation loan, or borrowing from a friend or relative. But in the end, you'll get out of debt faster...
And avoid bankruptcy!
If you've never heard of debt settlement (also called debt negotiation), that's ok too, not many people have. I didn't until I was so far in debt I did not know where to turn.
One reason many people are hesitant to consider debt settlement is that it goes on your credit report. Sorry to tell you, but having lots of debt (even if you pay on time), making payments late, even credit counseling - all go on your credit report and can negatively effect your credit. And (of course) bankruptcy is a big negative!
In my case, getting out of debt, removing all the financial stress, and being able to live a normal life was well worth it. With so much debt, having good credit was meaningless anyway.
When money is tight, and debt is high, there aren't many simple answers.
But if you are already considering bankruptcy or behind on your payments, then debt settlement might be the right alternative to help you get out of debt faster!
Good Luck
Phil Nace
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