How Should I Pay Off My Credit Card Debt?
July 20, 2009
Generally speaking the best way to pay off your debt is to pay it off in full and on your own without the help of credit counseling or debt settlement. However, if you think it is going to take more than three years to pay off your debt on your own then it may be worth considering enrollment in a debt settlement program.
If you are curious about how long it will take you to pay off your unsecured debt (credit cards, personal loans, lines of credit etc.) use an online calculator like the one found at www.bankrate.com. There are several calculators on the website but I would recommend using “What Will It Take To Pay Off My Credit Card“. Play around with different figures but you should get a sense for how long it will take you to pay off your different accounts.
Two important considerations are the interest rate charged and the monthly amount you are required to pay by the creditor. Keep in mind that the creditor can typically change these amounts any time they wish. If your interest rate is 10% now it may not be that way for the entire time you are paying off the debt. Interest rates have been increasing for many consumers as creditors have lowered limits and increased monthly payment requirements.
Staying current with your monthly payments to your creditors does not guarantee that you will have a good credit score. Consider all of your options carefully but in the end I would recommend choosing the option that will result in you getting out debt sooner rather than later.
How To Choose A Debt Settlement Company
July 7, 2009
With the downturn in the economy many fly-by-night debt settlement/debt negotiation companies have cropped up. If you are shopping around for a debt settlement company be careful. It seems with each passing week I hear another horror story about a company that took a client’s money and ran. Not to mention an increasing number of companies are being pursued by the Federal Trade Commission in connection with complaints filed by consumers.
I previously wrote about the Ten Questions to Ask When Evaluating a Debt Settlement Company. Now, more than ever, it is critical that YOU ask these questions when seeking help from a qualified debt settlement company. Do not take the word of the sales rep/debt consultant when calling a debt settlement company. It will only take you a few minutes to do some research online to find out how long a company has been in business and what their Better Business Bureau rating is.
Remember that committing to a debt settlement program is a long-term relationship. Avoid high pressure sales tactics and take your time in making a decision.
Monthly Settlement Statistics
July 1, 2009
For June, 2009
- Total Debt Settled – $502,709
- Total Settlement Amount – $202,089
- Settlement Percentage – 40.2%
- Total Cases Settled – 103
Monthly Debt Free Clients
July 1, 2009
Total Debt Free Clients, June, 2009
- Total Clients Debt Free -12
- Total Debt Settled – $279,830
- Settlement Amount – $159,520
- Savings – $120,310
- Average Percentage of Settlements – 42%
- Average Program Length – 40 months
- Best Settlement – 15%
- Worst Settlement – 91%