Credit Card Debt Free Help: Revolving Debt Elimination Services

The demand for credit card debt free help has grown exponentially in recent years. According to the Federal Reserve’s G.19 report on consumer credit, the average level of revolving debt per household currently stands at $15,788. As with all statistics, averages disguise the fact that some families owe nothing and others owe $50,000 or more. Debt elimination services offer a popular way of dealing with credit card debt because a balance can be paid off far more quickly.

The Growing Need for Credit Card Debt Free Help

The high rate of interest, coupled with the tendency of heavily indebted families to make the minimum monthly payment, has extended the longevity of financial difficulties. Many people find it impossible to pay off unsecured debt more quickly because they don’t have sufficient disposable income. A debt free solution, such as a debt management plan or debt settlement program, can be used for dealing with credit card debt. The objectives are to achieve affordability, clear the principal faster and stop creditor harassment.

Debt Elimination Services for Dealing with Credit Card Debt

  • Debt management plan. A qualified debt counselor will scrutinise personal finances in order to determine what is affordable. An intermediary will then negotiate with creditors to see if they are prepared to accept a reduced payment each month. Although under no legal obligation to do so under a debt management plan, the majority of creditors will be prepared to freeze further interest and charges. The lower monthly payment improves affordability, but can extend the longevity of the debt.
  • Debt settlement program. Although reducing the repayments is a priority, the objective of this credit card debt relief program is to reduce the principal by up to 50%. The remaining balance will be repaid over a period of 12 to 36 months with a debt settlement plan. The final debt reduction won’t take place until the final payment has been made. The fee is normally 15% for both debt free solutions.

Credit Card Debt Free Help from Filing Bankruptcy

Filing chapter 7 may be the most effective way of dealing with credit card debt. Although this debt free solution will show on a credit report for a period of 10 years, it will lead to the elimination of debt in just 4 to 6 months. It is the preferred option of consumers who are unable to offer creditors a monthly repayment, have an income that is below the state median and have no non-exempt assets. Although the individual can file without help, the majority of consumers choose to hire a bankruptcy attorney to ensure that the process is dealt with professionally from start to finish.

Doesn’t a Debt Free Solution Lead to a Lower Credit Score?

Debt elimination services involve defaulting on one or more credit agreements so this could lead to a credit score reduction. In practice, the majority of customers have already defaulted on their credit agreements. Credit card debt free help could lead to a better credit rating because creditors are receiving a repayment on what may have once been a delinquent account. The level of debt is also the second most important FICO score determinant so a fresh financial start will help considerably. With the exception of chapter 7 bankruptcy, poor credit shows on a credit report for a maximum period of 7-years.

Tips for Securing a Home Mortgage Loan, Starting with Your Credit Report

My fiance and I started the home buying process about 5 months ago. Of course we new pretty much nothing and seemed to do everything backwards. We started out looking for homes online and in home magazines. Falling in love with a few and even going to see some. We decided on one we loved and thought you just simply applied for a mortgage and it was yours. How wrong we were! Needless to say we did not get that house.
First and foremost, I strongly suggest you check your own credit report! Look for any inaccurate information. Including accounts you have, the names they have you listed as, your spouses name and you current and previous addresses. You have the ease of disputing any inaccuracies online right away. If your score is low, wait on the mortgage process and work on getting that score up as much as you can! This will definitely help how high or low your mortgage rate will be. Pay down some credit cards and make sure all your accounts are in good standing. These are the things we did and got my fiance’s score up by 50 points.

The second thing I suggest is to do your own research on mortgages and mortgage companies. Unfortunately they aren’t always going to tell you what’s best for. Remember they are trying to make a buck too. It’s time consuming but so worth it. Get a book, read some articles and ask your relatives and friends. Do some checks on the Better Business Bureau website. Don’t just go with the first mortgage company you contact. Shop around. Get a few pre-qualification quotes so you can see what your options are and what types of rates you are being offered. Do not be afraid to ask questions! It’s all free. If you can, save up some money to put down on the home. That’ll also lower monthly payments. But remember closing costs are not cheap.

The third thing that I can recommend is to find a realtor you feel comfortable with. You don’t have to use the agent selling the home. You can use whatever realtor you want. Again, be cautious. Not all realtors are looking out for you. They want to make a sale! Be sure they have a lot of experience. This will lesson the time this whole process takes. Let them do the work for you but insist that they keep you posted!

Just a note, always get a home inspection. Not everything is visible and no one wants to buy a money pit!