Are you tired of drowning in debt? Are you suffering from financial hardships? Did you lose your job? If you’re self employed, has your business suffered due to the weakening economy? The 1st step in getting out of debt is to admit that you have a serious problem.
Most American consumers don’t want to admit that they are one paycheck away from filing Bankruptcy. A vast majority of Americans are living in denial, they do not want to face the fact that their financial health is spiraling out of control. The truth of the matter is most Americans don’t really understand how credit card interest and billing charges actually work.
There is no need to feel bad about this. In fact, most Financial Advisors and sophisticated business people don’t even know themselves so you’re not alone. Consumers fall victim to predatory lending practices everyday in America. For those that manage to pay their minimum payments every month on time continuously get inundated with credit card application offers every month.
The Banks love to target the hard working middle class. They simply initiate what’s called a “soft pull” credit inquiry through the credit bureaus periodically in an effort to specifically target consumers who have a habit or history of borrowing money at a high rate of interest. Before a consumer realizes it, they have accumulated over $20 – 40k in credit card debt or other unsecured debt. By now it’s too late, the snowball effect has taken place and you can barely keep up with your minimum payments.
At this point, the Banks have you on what’s referred to as a compounding interest charging treadmill. Before long you run out of financial energy to compete, and your creditors are sitting back laughing all the way to their Bank knowing that you will do what ever it takes to stay current because you don’t want to hurt your credit score.
The reality at this point has hit you, and you are maxed out! Your credit balance to limit ratios is around 70 – 100% and now they increase your interest because they see you as a risk so your payments increase as well. The problem is this, you’re income no longer supports your budget and now your DTI (debt to income ratio) jumps significantly. When all this happens, your credit scores start declining at a rapid rate.
You are officially worthless and not credit worthy to anyone, so your so called credit is no more. What does a person do when they are faced with such financial turmoil? Do they file Bankruptcy? They can try, but in most cases will not qualify due to the recent change in the laws. They can choose to fall victim once again to the manipulative payment plan scams that the creditors will attempt to lure you in with. A consumer is faced with a very stressful situation and often feels like there back is against a wall.
You begin to explore financial options such as Chapter 7 Bankruptcy, Debt Consolidation loans, Consumer Credit Counseling, Debt Management, and Debt Settlement programs. But how do you know which one is right for you? How do you know whose advice you should take? Which direction to go? The most important thing to do is identify your specific situation first before speaking to anyone. This will help you greatly, by narrowing your options and saving you time.
You must first ask your self the following questions:
1. What caused me to fall behind into so much debt?
2. Have I suffered from a major decrease in income?
3. Are you receiving harassing phone calls from creditors?
4. Have I been using the credit cards to supplement income?
5. Have I just been making the minimum payments to get bye?
6. Have I been hiding monthly statements from my spouse?
7. Have I recently been denied credit?
If most of these questions match up with your situation, then chances are you may or may not qualify for a program at all. You must find out by speaking with a knowledgeable Debt Counselor or Debt Consultant. When choosing a financial group that has your best interest in mind, you must pay close attention to how they evaluate your situation?
A good reputable firm will carefully identify your needs and closely examine your financial position to see what program is best suitable for your specific situation free of cost. I personally have suffered greatly from credit card debt and know first hand what it’s like to be victimized by credit card companies.
After careful consideration and $42k in debt settled, I’m now free of my debt and sleep well every night. I owe my thanks to Bulldoze My Debt a division of Debt Freedom Network, after speaking to several different companies out there, they were the only ones who took a special interest in my situation and treated me like family. They were very patient, professional and courteous to me through out the entire process.
The second main reason I chose them was because they were able to match me with a Law firm that specialized in my situation. After 36 months, I was debt free and back on track and can’t even begin to thank them enough. They were able to get me approved with a payment plan that fit my budget, and saved me over $300 per month in the process! They were also able to stop most of the collection calls.
I only had to pay back 55% of what I originally owed and that included the attorney fees for service. If you feel like your situation is similar to what I went through then you may want to at least give them a call for a free consultation to see if they can help you. I hope my story can help those of you who are going through what I went through. It turned out, that the attorney driven – debt negotiation payment program was best for me. Good luck to you all.
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