Questions to Ask Before You Pay Commercial Collection Agencies

http://adviseradvantage.webnode.com/
Questions to Ask Before You Pay Commercial Collection Agencies
Honorably and ethically rid yourself of difficult debts using the little known Negotiation Method, without having to experience the loss of control and privacy associated with filing for bankruptcy, consolidation, or credit counseling.

The inability to minimize debt and saving money are the two biggest obstacles preventing Americans from living financially sound lives. National statistics show that money problems play a role in 80 percent of all divorces. One in 54 households will declare bankruptcy. Debt is at an all-time high, particularly credit card debt. The total amount of consumer debt in the United States is nearly $1.4 trillion.

If you are one of the millions of Americans burdened with debt and have trouble making those never-ending monthly payments, help is available. You don't need to go it alone. If you are a typical American family, you have $25,000-$30,000 worth of credit card debt (excluding mortgages, car loans, and student loan payments), and you're paying $500 to $900 each month in endless minimum payments.

Like you, many people continue making their minimum monthly payments believing that they are making progress. They are living in a state of denial saying "Someday, somehow, something will happen. Things will get better, and my debt problem will be gone." Then years go by and they only find themselves in a downward spiral getting nowhere. They have paid their creditors thousands of dollars but their debt load never gets lighter. For example, if you were to continue making minimum payments on a $9,000 debt, and not add any more debt, it will take you over 10 years to pay it off. You will end up spending many thousands more than the original amount and 80 % of the money paid will have gone to interest and fees. Lots of people add more debt as they go, so the reality is this - Without an aggressive technique to terminating debt once and for all, you will NEVER do away with debt.

Today, people have options. There are four methods for dealing with problem debt you will see advertised: Debt Consolidation, Consumer Credit Counseling Services (CCC), Bankruptcy, and Debt Negotiation. Each method needs to be considered carefully!

Debt Consolidation - The Common Technique

Unfortunately debt consolidation is the most common solution people think of when they fall victim to financial problems. It is a sad fact that about 75 % of people who consolidate their debt find themselves in much deeper financial trouble than they were in to begin with. All consolidation loans do is transfer debt from one place to another and is invariably a short term fix with long term pain. A debt consolidation loan will not minimize the amount you owe. You will still pay back 100 % of the loan plus interest. This is not going to get you out of trouble and most of the time will only make things worse. Again, consolidation is not a plan to get out of debt but is instead just getting new debt to pay off old debt.

If you were to decide to consolidate, you would need to qualify first. Qualifications include equity in a home you own or other valuable, good credit and debt to income ratio. Lots of people burdened by debt find that even if they wanted to consolidate their debt they couldn't qualify for the loan anyway. Once you have secured this loan, you have just gone from an unsecured debt to a secured debt - and gambling with all your assets. Consolidation loans are spread out over a 15 - 30 year period, leaving you exposed to losing your assets over the life of the loan. If you run into further difficulty in the future you stand to lose your home, car, and valuables.

I am a master essayist using my ingenious writing skills for matters such as debt software and also bad debt recovery for numerous clients.

The fundamental problem that people run into is that once the debts are paid off by the loan, they discover they have a new line of spending potential: empty credit cards. It's not long after these accounts are cleared that they are run up to the limit once again. This will leave you with both the consolidation loan and maxed out credit cards to repay. How are you going to repay the loan and the credit cards when you were unable to pay the previous debt in the first place? You will find yourself back in the bank for a second consolidation loan, extending your debt and making your debt problem even worse.

Bear in mind that being in debt leaves you with less cash you need to buy and plan for life's necessities. Although a consolidation loan may give you a lower payment and a little more breathing room, consolidation is not going to leave you with the cash to get you and your family through the next 10 to 30 years.