When people shop for mortgages the first thing they ask is what is the rate and what is the payment. Makes perfect sense, as this is really what matters in a mortgage and there is wide variability in these items as they apply to mortgages, not that many Americans are being approved for them these days. When people are seeking debt help,
Whether it be settlement help or a debt management program, most of them do exactly the same thing. This absolutely does not make sense, and please allow me to state why.
Lets take first a simple debt management program, what I call the high tech answer to Dave Ramsey’s debt snowball. This program was instituted by the banks over 20 years ago, shortly after they started charging usurious interest rates to consumers with credit cards. Since the banks new their would be higher default rates on these high interest credit cards, they came up with the genius idea of setting up non-profit companies to offer you the debt management program to lower your interest rates to lower the default rate and keep you from falling of the proverbial financial cliff.
What that really means is that the banks did control and still do control that particular program completely. There is no negotiation of new interest rates or new monthly payments whatsoever. Every consumer gets the same new terms as every other consumer no matter what company they enroll through. Their terms are all the same, all the payments are handled by a processing company. The bank does not look at your payment history and say you have been a good payer in the past so we will provide better debt management program terms for you. OK, so I hope you have learned something about this type of program, and by the way, a debt management program goes by many names including debt consolidation. These programs are designed to get you out of debt in five years or less and save you a ton of interest but you must be able to afford the new monthly payment.
If you are having trouble making your monthly payments and are in need of serious payment relief, then you may want to consider a debt settlement program.
Is it wise to shop a bit when looking for a debt settlement program? Yes, because these are negotiated programs and even though the FTC stepped in with very strong regulations around the industry, there are still variations in this type of program. If you wish to learn more about all the different types of debt settlement programs available and even get quotes on the different types of programs please check out debt settlement program.
How about a credit restoration program? Are you exhausted yet? Yes, these programs have become very popular for raising your credit score, and are quite legal. It is the subject of another article, as to how this is done.
Here is the real bottom line. There are true experts in this field, and I am not the only one out there. If you need debt help the best thing you can do is seek out a credit counselor you will provide his or her expertise to you at no charge, whether or not you enroll in a program thru them.
If you would like to speak to me, please feel free to use the contact information below, the talking is always free.
American Debt Enders
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