Don't Get Conned Into Paying the Debts of the Deceased

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Don't Get Conned Into Paying the Debts of the Deceased
Honorably and ethically rid yourself of difficult debts utilizing the unknown Settlement Method, without having to experience the loss of control and privacy connected with filing for bankruptcy, consolidation, or credit counseling.

The inability to minimize debt and saving money are the two most significant barriers preventing Americans from living financially sound lives. National stats show that money problems play a function in 80 percent of all divorces. One in 54 homes will state bankruptcy. Debt is at an all-time high, especially credit card debt. The overall 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 difficulty making those perpetual regular monthly payments, assistance is offered. You don't need to go it alone. If you are a common American family, you have $25,000-$30,000 worth of credit card debt (omitting home loans, car loans, and student loan payments), and you're paying $500 to $900 each month in unlimited minimum payments.

Like you, lots of people continue making their minimum regular monthly payments believing that they are making progress. They are residing in a state of denial saying "Someday, somehow, something will occur. Things will improve, 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 instance, 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 numerous thousands more than the original amount and 80 % of the money paid will have gone to interest and charges. Lots of people add more debt as they go, so the truth is this - Without an aggressive technique to ending debt once and for all, you will NEVER do away with debt.

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

Debt Consolidation - The Typical Technique

Sadly debt consolidation is the most typical solution people think about when they fall victim to financial problems. It is a sad truth that about 75 % of people who consolidate their debt find themselves in much deeper financial difficulty than they were in to begin with. All consolidation loans do is transfer debt from one place to another and is usually 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 difficulty and the majority of the time will only make things worse. Once 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. Certifications include equity in a home you have or other important, great 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 get the loan anyway. When you have secured this loan, you have just gone from an unsecured debt to a secured debt - and betting with all your possessions. Consolidation loans are spread out over a 15 - 30 year period, leaving you exposed to losing your possessions over the life of the loan. If you encounter additional problem in the future you stand to lose your home, vehicle, and belongings.

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The essential problem that people encounter is that when 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.

Keep in mind that being in debt leaves you with less cash you need to buy and plan for life's requirements. Although a consolidation loan might provide you a lower payment and a bit 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.