Many Americans are suffering from the crushing burden of debt. It has left them searching for the best debt consolidation programs. The last four or five years have seen an incredible increase in the number of people needing assistance of some sort in regard to their personal debts. While not all these debt problems are related to the mortgage crisis and high unemployment, these issues certainly exacerbated the problem and left many previously prosperous individuals suddenly up to their necks in debt.
As the number of people with debt problems has increased, so has the number of solutions to this problem. Among those solutions are old-fashioned methods such as bankruptcy and newer versions of loans to replace multiple loans that may have higher interest rates. DebtconsolidationUSA.com recommends a form of assistance known as debt settlement that they believe is superior to all other methods of relieving your debt.
Types of Debt Problems
There are many different ways to owe money and they are not all equal. The consequences of debts differ according to whom they are owed and whether or not those debts are secured. Many people today suffer from credit card debt. Loan debts for cars and houses are common, but often, these debts are considered good because they involve the acquisition of something of lasting value. Medical debt has become a big problem due to the skyrocketing costs of medical treatment.
Unsecured Debts
Most debt solution scenarios involve unsecured debts. These are debts that are not tied to any collateral, such as a home loan. A home loan is a type of secured debt. Creditors can take away your possessions for failure to pay secured debts. Unsecured debts are another matter. The debt consolidators here take advantage of certain advantages in unsecured debts in order to help clients erase their financial obligations and renew their credit rating in a short period of time.
Ways Out of Debt
There are several ways to escape unsecured financial obligations to credit card companies, health care providers and other creditors. Bankruptcy is an option that allows many people to either erase their debts in court or restructure their debts in order to repay them at different rates or without threat of repossessions. Consolidating loans permit people with several debts to combine them all into one debt now owed to an agency that provides a lower interest rate or, at the very least, the simplicity of a single monthly payment. However, while they may offer very good interest rates for some clients, the fact is that most clients with debt problems are not going to qualify for these rates. In the end, the new loan may have an unbelievable rate of more than 20 percent APR.
However, each of these solutions has its own drawbacks. Bankruptcy can cause terrible and lasting damage to your credit rating while consolidating loans leave you with a debt that amounts to financial slavery under a different name. DebtconsolidationUSA.com offers another solution to unsecured debt that promises to relieve people of debt without suffering as many negative consequences.
Debt Settlement
When you contact us, an adviser will ask you about all of your unsecured debt. He or she will want to know about amounts and the identities of the creditors involved. Once this data is shared, you will learn about your eligibility for debt settlement.
If you are accepted, you can start your debt settlement almost immediately after you hang up the phone. You are a good candidate if you are currently behind on your bills. That may sound hard to believe, but it is true. Since your debts are unsecured, you and your debt adviser have a lot of room to maneuver. You will begin to make payments into a special settlement account that will increase in size over the next two to four years.
As time passes, your debt advisers will use this growing mass of money as a bargaining chip with your creditors. They will offer to make one large payment, for less than the total amount that you owe, to each creditor. In exchange, they will demand that each creditor close your account. When the last creditor agrees to one of these payments, your debts will be erased and your credit rating will rapidly return to a high score.
Out of all the debt consolidation programs available, only this solution will simultaneously lower the amount that you must pay while quickly healing your credit rating. Bankruptcy can leave you with damaged credit for years while loans may actually increase the total that you pay. Debt settlement is one of the best debt consolidation programs and is a superior solution to your debt problems.