All you have to do hear about debt settlement and debt forgiveness is turn on the television, listen to the radio, or browse the internet. Through the following scenarios, A Debt Coach will show you why using A Debt Coach is the only choice for you if you want to get out of debt affordably without surrendering your credit for 7 years…
Debt Settlement Scenario
Debt: $10,000 in credit card debt
Debt Settlement Fees: Up to 25% or $2,500
Debt Settlement’s 50 Cents On Collar Forgiveness Offer: You will still owe half of the debt. So you will owe $5,000 of the $10,000 owed plus fees ($2,500) for a total of $7,500 paid to pay off $10,000.
Monthly Payments: About $625/month for 1 year or $312 if paid over 2 years. VERY IMPORTANT: These payments don’t stop interest, late fees, or over-limit fees from occurring while you are saving the money to settle the debt. YIKES!
Bottom-line: After 6 months of interest possible late fees, and possible over limit fees your balance will be 12,000-$12,500, not the $10,000 you thought about when you started this program, so the math is all wrong and you will still have a balance after you’ve paid your monthly settlement payments. So what we’ve seen at The Debt Coach is that these debt settlements through creditors only save you 8% on average.
Ask Yourself: Is it a good idea to save only 8% and still lose my credit for 7 years? Also, know that whatever you saved when paying the settlement will then be owed to the IRS at whatever percentage your tax bracket is. There goes the 8% percent savings!
Debt Forgiven: The only true debt forgiveness program is bankruptcy.
What Needs to Be Done: Call an attorney and pay them a fee to file Chapter 7 bankruptcy if you can to forgive all the debt. If you can’t file chapter 7 then you can file chapter 13 and make payments to creditors. A bankruptcy will affect your credit for up to 7 years.
A Debt Coach Scenario
What A Debt Coach Will Do: A Debt Coach will contact each of your creditors to lower your interest rates and work out monthly payments. At $10,000 in debt, your payments would be close to $250/month and after 3 years you would be debt free! You will have your credit intact after you paid your payments!
Summary of the 3 Choices to Get Out of Debt
- Debt Settlement – Limited savings and destroys your credit for years.
- Bankruptcy – No payments but destroys your credit for 7 years.
- A Debt Coach – Payments you can afford and you leave the arrangement with your credit intact! A Debt Coach is regulated by creditors but independent from them as a non-profit and that makes all the difference!
A Debt Coach offers credit counseling services to people who are experiencing credit and debt problems! We create customized plans with your budget in mind and deal directly with your creditors. No gimmicks, no funny business! Both the Government and your creditors are happy that we are here to help you solve your financial problems.
About A Debt Coach
A Debt Coach is a Non-Profit Credit Counseling Agency that helps consumers find options available for the financial problems they face. We offer credit counseling services to clients across the country who are experiencing credit and debt problems. A Debt Coach offers one of the most beneficial debt consolidation programs in the nation and we have provided counseling and advice to more than 200,000 consumers since 1992.
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Did you know that A Debt Coach provides free financial education and advice? We provide advice so that people can get their lives back in order! The free education starts by downloading our free “Own Your Life” ebook.
Everyone who downloads the book will be approached to start the “Budget Bootcamp” with Randy after you read the book! Randy will help you create the best budget for your situation and put you on a glide path towards being totally debt-free!