Debt Relief Hotline

 

Bankruptcy

In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act passed into law and this changed the face of bankruptcy.There are two forms of bankruptcy for consumers, Chapter 7 bankruptcy and Chapter 13 Bankruptcy.

Chapter 7 is the type of bankruptcy that most people think of; is a total discharge of your debts. Chapter 7 is now harder to qualify for and is based on the median income of your state.Chapter 13 is now the most common bankruptcy that consumers are able to qualify for and is designed to be a repayment plan. Although there are no set guidelines for a repayment plan, it is common that you will repay 65-95% of your debt plus court cost and attorney fees.

Bankruptcy is a complex process and can provide immediate relief. Although it will remain on your credit report for 7-10 years, every loan application and most employment applications ask "have you ever filed for bankruptcy?" Bankruptcy will follow you for the rest of your life.

Bankruptcy should be considered as only an absolute last option. Debt Settlement is a proven method to eliminate your debt without filing bankruptcy. Should you have more questions regarding bankruptcy, you should speak with a bankruptcy attorney that practices in your state. 

To find out how debt settlement can help you eliminate your debt, Call 866-430-3437 option #9

Debt Consolidation Loan

Debt Consolidation is the most overused word in the financial sector. It is widely misconstrued and the average American has a very basic understanding of the term. First, debt consolidation is a loan. A debt consolidation loan can be in the form of a balance transfer, where you may transfer several credit card balance to a card with a lower interest rate. Or if you qualify, you can obtain a signature loan. Interest rates on signature loans are typically very high. Finally, if you are a home owner and you have equity in your home you could consider consolidating your debts through a home equity line of credit.

The one thing you must realize with a debt consolidation loan is that you are borrowing money to payback borrowed money. A Debt Consolidation loan does nothing to eliminate your debt. You are doing nothing more than transferring debt from one creditor to the next. And when you do it with your home and refinance your debt into your mortgage, you are basically selling your home back to the bank. Most consumers that refinanced their debt into a mortgage find themselves back into the same amount or more of credit card debt.

According to Chris Viale of Cambridge Credit Corp., a Not- for- Profit credit counseling agency based in Agawam, Mass., "You're getting symptomatic relief, not a credit cure." Viale continues to say that 70 percent of Americans who have taken out a home equity loan or other type of loan to pay off credit card debt, ends up with the same amount or even higher debt load within only two years. 

Credit Counseling / Debt Management Plan (DMP)

Consumer Credit Counseling and Debt management plans are the same type of consumer debt relief program. The plan is designed to close out your credit card accounts and work with the creditors to reduce your interest rates. There is a monthly fee that you pay to the credit counseling organization that is based on the number of accounts you enroll into the plan and most likely enrollment and application fees.

Credit Counseling has been around since the early 70's and has proven to be largely ineffective. This is because creditors will often reduce your interest rates for a period of time (usually 9-12 months) and then the the credit card companies will raise them. There are many documented cases of credit counselors failing to make payments on time and then the consumer is stuck with higher interest rates and late payment penalties.

Another fact that most credit counseling organizations do not tell you is that a negative mark is placed on your credit report. When you enroll into a debt management plan, the company is required to notify the credit bureaus that you have signed up into the D.M.P.The purpose is to notify other banks that you are a high risk consumer and this will prevent you from obtaining credit while enrolled.This negatively impacts your credit score similar to filing Chapter 13 bankruptcy and will remain on your credit report for 7 years following your last payment with the credit counseling organization. 

Continue the path you have been taking

Believe it or not, many people take this option.  They continue their life knowing they have a debt problem yet do nothing to stop it.

The definition of INSANITY is doing the same thing over and over but expecting different results.  If you think you have a debt problem, you probably do. If you tell yourself that your debt is "not that bad," chances are you are being complacent.

If you are only paying the minimum payments on your credit cards, it will take on average 30 years to payoff your credit card debt.  Debt is a serious problem and ignoring it will only cause further problems in the future.  Financial problems are one of the leading causes for divorce and can affect other personal aspects of your life.

Debt Settlement
"is one of the Most Aggressive methods to Eliminate your unsecured debt"

Debt Settlement has become a very popular method for consumers to eliminate their debt.

Debt Settlement plans are usually 36 months long and are designed to eliminate your debt.  Since there are huge savings and affordable monthly payments, many consumers that are unable to meet their minimum monthly requirements find debt settlement a very affordable option.

Debt Settlement differs from other forms of debt relief in that debt settlement companies work directly for you.  They work with your creditors to reach settlements of less than what you owe on the account; although individual results may vary, you can expect to see savings from 40-60%.  For example, if you owe $10,000 on a credit card, FH Financial can settle your account where you will pay $4,000 to $6,000.

Most people who are looking into debt relief programs have already suffered from declining credit scores.  Although debt settlement will effect everyones credit differently, Debt settlement does not permenately destroy your credit.  Once you finish the debt settlement plan, your credit score will have already begun to rebuild. 

Payment plans for debt settlement are typically set up to have your debt completely paid off within 36 months but vary based on your situation.  Typically, the payment for a debt settlement plan is about half of what your current minimum payments on your credit cards.

What you need to do now...

Step 1
Consult with a Debt Specialist at FH Financial to find out which programs you qualify for and the specifics as they pertain to your situation.

Step 2
The Debt Specialist will put together a plan for you to review and approve.

Step 3
The Debt Specialist will discuss with you different payment options and find the one that is best for you.

Step 4
The plan is put into effect and you are on your path to becoming debt free.

Call us now at 1-866-430-3437  press option 9