Overwhelming credit card debt is a very common problem for
many American consumers. Too many people just continue to
pay their monthly minimum payments without any knowledge
that their debt burden may never go away.
When a person comes to the realization that they are caught
in an endless cycle of debt, they may then admit that help
is needed. What people may not know is what kind of help
is available, and how to find it.
Understanding all of the options to relieve themselves of
debt can be very confusing. Choosing the best plan of
action can also add the stress caused by the debt in the
first place.
One option is to enroll in a Debt Management program. A
Debt Management company will attempt to work with your
creditors to lower the interest rates and waive any fees,
such as over-the-limit fees and late fees. Please notice
the words "attempt to". There is no guarantee that the
creditor will agree to lower the interest rate or waive any
fees. Interest rates may actually increase when a credit
card company is informed of a financial hardship.
With a Debt Management program, your budget will be
analyzed to determine how much money per month you can part
with to pay down these debts, and initiate a plan to make
regular payments to your creditor for a specific dollar
amount. Once your creditor sees a pattern of regular
payments reducing the principal balance, they may agree to
lower the interest rates even further.
For a Debt Management program to be effective, the debt
should be paid off within five years. You must be able to
continue to make the regularly scheduled payments. Keep in
mind that interest will continue to accrue, so your
payments are not all being applied to the principal
balance. Part of the payments will continue to be applied
to interest, as well as any monthly fee charged by the
management company.
The Debt Management company should provide you with an
amortization schedule, showing the amount of principal and
interest you will be paying each month, month after month.
With this schedule, you will be able to see exactly the
amount of time it will take to be debt free under the
payment plan. Even this schedule can change due to
adjusting interest rates, missed payments, or extra
payments. If the management company cannot provide an
amortization schedule, perhaps you should look for a
different Debt Management company.
If you cannot work out a plan to have the debt paid off
within five years, a Debt Management program may not be
right for you. One option to consider is a Debt
Elimination program.
A Debt Elimination program will allow a person to legally
walk away from 100% of their non-secured credit card debt,
without bankruptcy, consolidation, or refinancing. A
person can take advantage of this program just once. It's
kind of a financial "do-over".
With a Debt Elimination program, a person can select which
cards to eliminate, and which ones to keep. The eliminated
cards can no longer be used. The ultimate goal is to learn
how to live without credit cards altogether.
An elimination program does not perform its function
overnight. A good program will have you debt-free in 6 -
12 months. It will also include an education on the credit
card system, so that it is understood just how and why an
elimination program can work.
Student loans, medical bills, and any secured loans do not
apply to a Debt Elimination program. Only major credit
cards, signature loans, and unsecured lines-of-credit are
applicable. For these types of debts, a true elimination
program may be the financial re-start people are looking
for.
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Billed as The True Debt Advisor
(http://www.TrueDebtAdvisor.com), Jim Vrana's mission is to
educate and empower people to overcome their financial
challenges. The time-tested legal procedures used to
eliminate credit card debt have been used by thousands of
people with tremendous success.
Contact:
Jim Vrana
True Debt Advisor
(800) 637-1785
http://www.TrueDebtAdvisor.com
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