Golden Financial Services shares a recent conversation from Facebook about advice on getting out of credit card debt.
“Paul, what’s going on bro? Hey, I have been meaning to talk to you about some credit card relief, or what options there are out there. My wife and I got ourselves in a little credit card debt, and just want to get out of it as soon as possible. I keep running across your posts on Facebook, and figured I would check in with you, and see what you have to say or offer. So many scams out there, so I would rather speak with someone I have known for over 20 years.”
Great to hear from you!
Debt settlement will hurt your credit score. It is a good option if you fell behind on your accounts, and you can’t catch back up.
With debt settlement we will contact your creditors and work out a settlement, where you end up paying back less than owed on each account. It is a much better option over bankruptcy, assuming you are with a reputable company.
If you have not fallen behind on your accounts, then debt settlement is most likely not the right option for you. Unless you lost your income and know that you will be falling behind soon.
The other program option is consumer credit counseling. This option allows you to stay current on your accounts, and it has less of a negative effect on your credit. With consumer credit counseling you could have your interest rates lowered, and get out of debt in around 5 years. I would recommend this option over debt settlement if you can afford it.
Typically with consumer credit counseling your payment will be equal to approximately 2.3% of what your total debt is. If you have $100,000 in debt, your payment on the consumer credit counseling program would be around $2300 per month, getting you out of debt in around 5 years. Try this debt calculator to see your different debt relief options, program quotes, and savings information. This calculator will even help you with paying off your credit cards on your own. You can enter your total debt for just one card, and then play around with the different payment options based on what you can afford.
I can introduce you to a partner of mine that runs a non-profit consumer credit counseling company, and has helped hundreds of our clients, if you would like to get a program quote for consumer credit counseling. Yes you do have to be careful with who you choose to get help from. Consumer credit counseling with a non-profit company is a safe option and will not ruin your credit.
The best credit card relief option would be to stay current on your accounts. Try to double up on your minimum payments. Pay double the minimum payment on your highest interest account first. The account that has the highest interest rate is the account that is costing you the most money, so attack that account first.
Once it is paid off, move on to the one with the 2nd highest interest, etc… Just pay minimum payments on the other accounts, while you are doubling up on the highest interest accounts.
If you need debt settlement in order to stay out of bankruptcy, I can definitely help you. Debt settlement services are an excellent alternative to bankruptcy. We can enroll you onto an effective debt settlement program that will work.
However as I mentioned earlier, with credit being important, I always recommend trying to stay current on your accounts and avoiding any type of debt relief program all together.
I hope this information is helpful and contact me if you need debt settlement or if you would like to be transferred over to my non-profit consumer credit counseling partner company.”