Welcome To Debt Consolidation Trust
The U.S. national debt is over $16 trillion. That is an almost incomprehensible number. It means that each U.S. citizen's share of the debt is over $52,000. While that's scary, it's actually not as scary as your personal debts. The federal debt seems unresolvable at this point, but your debts are fully collectable in one way or another.
Those are the debts that you absolutely have to repay or creditors will call you day and night, threaten to take your property, or even garnish your paycheck. You could be sued for any unsecured debt (i.e. credit cards and personal loans), your wages forcibly taken from you, or you could lose your home. You're already headed down that path. You're tired of the phone calls, the letters, and the fact that you never seem to have enough money at the end of the month to pay all of your bills. It doesn't have to be that way.
Here's The Real Problem
Financial problems rarely spring out of nowhere. There are always warning signs. That's not to say that your financial problems are always your fault. Maybe you're just not good with budgeting money. Maybe you were never taught how. Maybe you got slammed with unexpected medical bills but had no savings to pay for them.
Regardless of how you got here, you need to uncover the root cause of your current financial situation and develop a plan that will:
- Put your financial life back together
- Prevent future problems
The best way to do this is to work with financial experts that know how to create bulletproof budgets that really work, can help you get out of debt quickly, and can help you restore your good credit. At the end of it, you shouldn't just be "debt free," you should be financially secure. You should be in a good place, financially, and you should feel confident that you can take on the world without running into any problems down the road.
How Debt Consolidation Trust Can Help
Debt Consolidation Trust gives you the tools and the education to help you get out of debt and put your life back together.
Here's what you can expect:
- Kind, caring, professional staff that are ready to assess your financial situation and bridge the gap between you and your creditors.
- Stop receiving harassing phone calls and threatening letters from your creditors.
- Get a simplified plan for reducing and eliminating your debt.
- Become Debt Free within 24 to 48 months.
- Make just one low monthly payment.
Debt Management Options & Resources
Consolidation is when you take multiple loans and combine them into a single loan. Why would you want to do this? The most basic reason is that it keeps things simple. When you have one loan, instead of several loans, you only have to worry about making one monthly payment for all of your debts. However, simplicity isn't the only benefit to consolidation. By having one loan, you can often get a lower interest rate (since the loan isn't a credit card) and stretch out the monthly payments for a longer period of time. All of this lowers your monthly payment, making your debts more affordable.
The downside to consolidation is that you might pay more total interest than you would with each individual loan. Additionally, some consolidation loans have a lower rate of interest because the bank secures your home as collateral. If you fail to make payments, the bank could take your home. This is why any consolidation plan needs to be combined with a solid budgeting plan.
Settlement is when you negotiate with your creditors to lower the total debt you owe. In most cases, the settlement process works because the creditor believes that you will never be able to pay off the full amount of the debt. Many debt negotiations stipulate that a lump sum amount must be paid to settle the debt. Because of this, debt settlement plans typically take 2 to 4 years to complete. During the negotiation process, you are required to put money into an escrow account so that the creditor can be paid.
Because you're paying less than the full amount you owe, the creditor will often send a negative or derogatory remark to the major credit bureaus. This negative remark reflects badly on you, and will hurt your odds of obtaining credit in the future. In other words, debt settlement trashes your credit for several years, which is the main drawback of this approach. Because the settlement process has such a negative effect on your credit, it's always best to combine any settlement plan with credit counseling.
Consumer Credit Services vary by company, but most of them focus on at least two areas: budgeting and credit restoration. Helping you build a budget is a very important part of getting out of debt and staying out. What's more, the budget has to be meaningful to you, and it has to be something you'll stick with. Counselors are trained professionals that can help you make a good budget that you'll stick to. Many counselors can also help you build your credit back up over time. Once you're doing a good job with your budget, you will learn how to start applying for credit again, how to responsibly use credit cards and loans, and how to keep tabs on your credit report.
The Truth About Bankruptcy
Bankruptcy is often seen as the easy way out, but it's not. When you think of bankruptcy, what do you think of? You might think that bankruptcy wipes out all of your debts so that you don't have to pay them. That's not necessarily true. In fact, bankruptcy laws now require you to go through something called "means testing." This is done by a court, and it determines whether you qualify for a Chapter 7 bankruptcy (i.e. you don't have to repay your debts) or whether you only qualify for Chapter 13 (much more common, and you have to repay all of your creditors). Bankruptcy looks worse than debt settlement on your credit report, and it lasts for at least 7 to 10 years.
Where To Go From Here
How do you know credit counseling, debt settlement, or debt consolidation will help you? You don't. In fact, if you never pick up the phone and call, you'll keep doing the same kinds of things you're doing now. That doesn't solve anything, but it does leave you with the constant pain of having to face your creditors tomorrow, the next day, the day after that...
Imagine life without debt. Imagine that burden being lifted off your shoulders. It might be hard to remember, but there was a time when you didn't owe all this money. Wouldn't you like to be in that place again? Soon? It doesn't cost you anything to talk to a Debt Consolidation Trust representative.