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Posts Tagged ‘Debt Consolidation Program’

Most business people must be familiar with loans since some of business people started their business with capital from certain loan program. It is common situation in every business that some days are good and other days are bad in sales but the problem is the bank where the loan program was applied cant accept any repayment of the debt that exceeding the scheduled date. So, what is the best solution for this situation? Take other loan to pay the old loan? No, please continue to read on this article to find out the answer.

Applying for new loan is not only makes your cash flow uncontrolled but it is also increase financial setback risk. Yes, applying another loan could be ideal if the business growing very fast but if you apply for new loan while the business is stagnant there will be problems with your wallet. Instead applying for new loan you can choose to contact the debt consolidation team to help you dealing with the debt collectors.

To apply debt consolidation program, you can visit the official website in the internet and submit your pending payment so the debt consolidator can arrange specific strategy to bring you out from the debt problems. With the guidance and help from the expert you can continue focus to your business and repay the debt constantly every month without burdening business cash flow.

Do you think that you are qualified enough to resolve your mountain debts successfully? When you just sit down and think about your life without multiple debts, you will feel relaxed and happy. This time, if you imagine a society in which everyone lives in perfect harmony without bondage debts anymore, you will want to make your dream become true. Well, nowadays getting debt free is possible when you follow some tips bellow. Here are 5 steps that you can use them effectively to get Debt Free in a hurry time.

First of all, you must accept that you are in debt problems and commit that you will resolve your terrible condition by yourself or getting help. This can help you to know clearly who you are with the purpose of preparing yourself effectively to face with some obstacles that will happen. Another step of debt free is contacting with reputation debt negotiation agencies. You should find out a professional help to get debt free if you cannot solve your debt problems successfully by yourself. This is the most important time that you have to understand clearly before you enroll in debt consolidation program such as credit counseling, debt consolidation, debt management plan, debt settlement, and bankruptcy. Through this approach, you should have enough information about the companies which you can compare between advantages and disadvantages whether they can offer your willingness or not.

Thirdly, you should make a specific plan how long you can pay off your multiple bills in order to tell a counselor for helping you. In this process, an agent will analyze your finance situation and then he or she will help you to assemble budget plan and cash forecasting so that you will get the right debt consolidation which appropriates with your income. The fourth step of debt free is negotiation through a debt settlement program. This approach can help you to reduce lower interest rates and monthly payments on the ground that an agent will negotiate with your lenders which your outstanding balance can be reduced up to 60%. As a result, you not only avoid filing bankruptcy but also save a lot of time and money; thus, you can get debt free quickly.

Last but not least, you must remember that you do not need more debts or credit cards because of the fact that the deeper you apply in debt the less chance you can get rid of bondage debts. This time, you should avoid using your credit cards once a while due to the fact that you can save a lot of money from a higher interest rate. You should use your cash on hand only so that you can eliminate your bad habits of spree spending; therefore, your dream will become true.

Debt is a problem that can weigh up to a very long time. Is a major source of stress, and if not resolved the problem will only increase, making it difficult to obtain loans and possibly leading to seizures. There are various solutions to debt management that you can choose to undertake. There are three basic methods of dealing with debt: the restructuring of loans, creating a payment plan, and the last resort: bankruptcy. There are two ways in which loans can be restructured. These are better if you simply cannot meet the minimum requirements to repay their loans. You can use debt consolidation or debt settlement.

A debt consolidation program is a program where a financial institution acquires all your current debts and establishing a new payment plan with you. Debt consolidation is a way of combining all your debts into one monthly payment. Depending on the consolidation program, there may be changes in the total amount you owe. In most cases, a debt consolidation program will reduce your monthly payments. In some cases, may reduce interest rates as well. Be careful, however. Since monthly payments are lower, the loan period is generally longer. Churchwood’s debt management programs are one of the best debt management programs that you should try. To know more information about Churchwood’s debt management programs, visit Churchwoodfinance.co.uk now.

Many people mistakenly turn to credit counselors. Often people struggling with serious debt make the dangerous assumption credit counselors are “the good guys” because they advertise being “not-for-profit”. Other times debtors lured by the debt management companies believe a common “half-truth” (out-right lie) promoted by the credit reporting agencies and credit counselors alike about how such debt consolidation programs affect your credit. Do you know how your credit may be affected?

Before we look at the truth behind these deceptive claims, let’s clear up the terminology and eliminate any confusion.

You see, “Consumer Credit Counseling Services” goes by many names… but ALL of these different names are really the same thing. These many names include credit counseling, CCCS, debt consolidation, debt consolidation plan, debt consolidation program, debt management plan, DMP, debt management program, and of course the infamous “Non-Profit” Credit Counseling Program.

The Truth About How Credit Counseling Affects Your Credit

While enrollment in Consumer Credit Counseling Services no longer affects your numerical credit “score”*, being enrolled in “CCCS” has a VERY DAMAGING impact on your credit “worthiness.” Credit worthiness is your ability to get a loan.

(* This is assuming that the credit counseling agency actually makes your payments on time – which is often NOT the case, as many, many people who have mistakenly enrolled in such debt management plans report.)

Why does enrollment have such a damaging affect on your credit worthiness?

Statistics show it’s most likely that you will never complete your debt management plan and will most likely file bankruptcy instead.

Some statistics report 7 out of 10 people who enroll into debt management plans fail to get out of debt.

Just ask ANY mortgage lender in the country…

When pulling your credit report, EVERY ACCOUNT included in your “debt management plan” is listed just as a bankruptcy would be, with a notice under each account saying something similar to:

“THIS ACCOUNT IS INCLUDED IN CONSUMER CREDIT COUNSELING SERVICES”

This means big trouble for you. Lenders call this a “walking bankruptcy” because it’s a *major red flag* indicating you cannot manage your money and had to hire a third party to do it for you. Plus, you still owe the debt and are at a much greater risk of filing bankruptcy in the near future.

How will these negative credit entries affect you?

You will pay much more in fees and interest rates, if you are able to obtain credit at all, during the 4-7 years you are enrolled in your debt management program.

Who’s Hiding This Hurtful Half-Truth (Outright Lie) From You?

Credit counselors, your creditors & the credit reporting agencies are all in cahoots together. They all promote the half-truth that CCCS does not affect your credit score. The vast majority, including the credit reporting agency websites fail to mention the rest of the story.

While it is true that credit counseling has no affect on your credit score, that’s only half of the truth.

WHY?…

Because credit counseling has a major negative impact on your credit worthiness.

The Truth Regarding So-Called “Non-Profit” Credit Counselors

Don’t be fooled by the words “non-profit.” Claiming a debt management plan is “not-for-profit” is ridiculous, but it’s fooled many people into making poor money choices.

The IRS has revoked the non-profit status of over 50% of the credit counseling industry in the past two years.

The IRS is conducting an investigation of the entire industry!

Here’s the PROOF “they” don’t want you to see:

Debt management programs were created by the credit card industry back in the 1950′s

The credit industry lobbied congress to achieve their touted “non-profit” status for the debt management programs.

They are really a collection arm for the credit card industry.

Next to minimum payments on high interest credit card debt, Credit Counseling is how creditors make most of their profit!

Their CEO’s are paid VERY WELL from the kick backs they receive (called “fair share”, usually 15% of all payments received by you) — from YOUR creditors!

Plus, aren’t you paying a -85 monthly FEE?

How’s that a non-profit?

On top of these costs to you, many credit counselors ask their customers, who come to them deeply in debt, for a “donation” to their “non-profit” organization. Often, these agencies pressure their customers into making “regular donations.”

Is this acting in your best interest?

A Secret Credit Counselors Were Able To Hide For A Long Time

The goal of these programs is to:

Fool consumers into paying back 100% of their balances PLUS interest when they’re in deep financial hardship, instead of filing bankruptcy or seeking debt settlement when such options may be much more appropriate.

A lot of profit has been made from these “non-profit” debt consolidation programs over the years. The banking and credit institutions, credit reporting agencies and those politically sensitive to these corporate lobbying giants all promote such debt management plans because that’s how they stay in business.

In 2004, PBS FRONTLINE and The New York Times produced “The Secret History of the Credit Card” and went on to win 2004-05 Grammy for Outstanding Investigative Journalism. (Google “The Secret History of the Credit Card” to watch this program for free online – great information you’ll wish you had known sooner if you’re dealing with credit card debt.)

Now the truth is out, but your creditors are still hoping you don’t find out…

Is There A Better Alternative Than Credit Counseling?

Now don’t get me wrong, debt management programs can be a great thing for certain people. Could credit counseling be the best option for you?

Sometimes, if a person cannot qualify for a better program to eliminate debt faster, at a lower cost and a lower payment with less credit damage, credit counseling may be best.

It may not be. I’ve helped many people get out of debt through credit counseling over the years, but only after they were educated on the all of their options, and the whole truth about each. I personally consider it unethical to promote a single solution instead of looking at an individual’s specific circumstances and situation to discover the exact solution best for them.

Share these facts with the people you know before someone else becomes another sad statistic!

Learn the difference between “credit rating” and “credit worthiness”, and learn how credit works so you can have it work for you.

Are you 100% certain Consumer Credit Counseling Services is the best option for you to get out of debt? If you want to get out of debt ASAP, then you should know other options are available.