This debt management program allows consumers who are having trouble meeting their monthly unsecured credit card payments to lump them all together for one monthly payment. This means the debt consolidation company will negotiate to lower the interest rates on all credit cards on their clients behalf. Their client will forward one lump sum monthly payment to their program and the program disburses payments to all of the clients creditors.
In an effort to help those looking for debt relief help here is a brief break down of the most popular forms of help available:
1. Debt Consolidation - This debt management program allows consumers who are having trouble meeting their monthly unsecured credit card payments to lump them all together for one monthly payment. This means the debt consolidation company will negotiate to lower the interest rates on all credit cards on their clients behalf. Their client will forward one lump sum monthly payment to their program and the program disburses payments to all of the clients creditors. This is one way of keeping the bill payment from becoming too much for an individual, trying to juggle different payments at one time. Joining a consolidation program means entering all credit cards into program and not using them for again for the life of the program. Debt consolidation is scheduled to last about four years for a consumer to pay his/her total debt back. Most debt consolidation programs are not for profit and some charge small maintenance fees.
2. Debt Settlement - As opposed to consolidation debt settlement does not negotiate to lower interest rates. It is geared to negotiate large amounts off of the principal debt. In debt settlement funds must become available to pay off the settlements offered by creditors and collectors anywhere between one lump sum payment or more. All unsecured credit card accounts do not have to be entered into a debt settlement program. Debt settlement is geared to save as much money on unsecured debt, sometimes as much as 50 to 60% off. Most programs have a fee schedule that includes retainer, commission and maintenance which could be expensive for a person in debt. Debt settlement programs that charge fees based on performance are often the best.
3. Do It Yourself Debt Settlement - The same idea as joining a debt settlement company, saving large amounts of money. Only in this case the consumer negotiates directly with his/her creditors settlements on her/his unsecured accounts. Settling your own debt has the advantage of avoiding the high fees debt settlement companies charge. This idea is highly effective for consumers who have strong telephone skills and who are quick learners. It is advise consumer joins a quick coaching program to learn some much needed vocabulary, these coaching programs are neither long in time nor expensive. In this scenario the consumer is in charge of his/her own situation.
Eric Gartle has worked in the debt settlement industry for the last 10 years and has vast experience negotiating personal as well as business unsecured debt. For more information please visit http://www.pemperandgartle.com/
