If you have $15,000 in credit debt at interest rates of 20.95% and if you are paying the minimum payment of $375 per month this could cost you $10,996.64 in interest, it would take you 70 months (5.83 years) to pay off your debt. Principle and Interest Total for the $15,000 debt would cost you $25,996.64. Credit Card companies are charging outrageous interest calculation and most consumers don’t realize they will be paying for their debt 2 to 3 times the amount they charged. Click here https://financialmentor.com/calculator/ credit-cardminimum-payment-calculator to see your interest, payoff and how long it takes to finish paying a credit card.
At US Financial Relief, we can show you how to pay off your debt in 18 to 60 months, settle your debt, and lower your payments. For the above example, we estimated negotiated payoff to be $10950.00, saving our client an estimated $15,046.64.
CONSUMER CHOICE 2
Don’t Pay Your Cards and Pretend They Don’t Exist:
Believe it or not, this is the option that a lot of consumers choose. People who choose this option hope their debt goes away, but what they’re not realizing is that their creditors will try to collect their debt. If the creditors are not successful, they will forward the account to their legal department and file a lawsuit against the credit card holder and potentially get a judgment that will allow them to garnish wages, levy bank accounts and put liens on the credit cardholder’s property.
CONSUMER CHOICE 3
Pay Your Debt After Being Sued By Your Creditors:
If our creditors legal departments are not successful on collecting the debt, they may file for a lawsuit. In some cases, the credit card companies may sell your debt to a debt vendor or debt attorney for pennies on a dollar, which at that point, the collection company will try to collect the outstanding debt plus their fees or file a lawsuit against you. If at any point you receive a summons, and if you did not respond to the summons within the specified time frame, the creditor will be issued a Default Judgment. The Default Judgment will give the creditor the right to file for a wage garnishment, levy cardholders bank accounts or put a lien against their property.
The fees added to a summons include:
Entire amount of debt, Plus
Attorney court costs
Interest for entire time debt amount owed which includes the time after the cardholder stopped making payments
Creditor will be able to also to take your wages directly from your paycheck by serving your employer with a court order to do so
Creditor will be able to put a creditor’s lien against your home for entire amount of your debt which will prevent you from selling your house until entire debt is satisfied and paid in full
Creditor can directly take money from your personal bank account by filing a levy with your banking institution
Creditor can put a lien against any other assets you may own
CONSUMER CHOICE 4
Based on your personal circumstance, bankruptcy can be filed against all creditors. Bankruptcy has very strict qualification guidelines depending on type of bankruptcy. Bankruptcy also stays on consumer credit report for minimum of 10 years. There are different types of Bankruptcies available based on your eligibility. Once you file for Bankruptcy, the chance of rebuilding your credit is very low. It would take a very long time to rebuild your credit.
Types of Bankruptcies:
Chapter 7 Based on your eligibility, if you or your company or corporation cannot afford to pay back debts, Chapter 7 Bankruptcy can eliminate all or some of your debt.
Chapter 11 Based on your eligibility, If you or your corporation has significant amounts of debt that you cannot afford to pay back at the current rate, Chapter 11 reorganization restructures them so you can catch up and repay what you owe at a pace you can afford.
Chapter 13 Based on your eligibility, If you have less significant debts (under the limits set for Chapter 11), Chapter 13 reorganization allows you to restructure your debt so you can catch up and repay what you plus a fixed interest rate. Percentage of consumers finishing a chapter 13 bankruptcy is less than 5%.
Bankruptcy Frequently Asked Questions FAQ’s
Q. Do bankruptcy laws make it nearly impossible to qualify?
A. Qualifying for a bankruptcy is solely based on your current income and assets.
Q. Isn’t filing for bankruptcy expensive?
A. Filing for bankruptcy could be expensive depending on the attorney you hire.
Q. Will I lose everything if I file for bankruptcy?
A. Not necessarily.
Q. Won’t I still have to pay back my debts?
A. Only in chapter 13 bankruptcy you must pay the entire balance plus interest.
Q. Is it true that I’ll never be able to own property again?
A. No. Many people are able to buy homes after just 3 to 5 years.
Q. Since I’ve filed for bankruptcy before, is it true that I can’t ever file again?
A. No. You can file Chapter 7 every eight years and Chapter 13 every four years.
Q. Does filing for bankruptcy ruin my credit?
A. Yes, once a bankruptcy is filed, very few creditors will be able to extend credit to you and if they do so, they would charge you a very high interest rate.
CONSUMER CHOICE 5
Credit Counseling Program is a nice way of getting you to pay the entire amount of the Debt with a lower fixed interest rate. Credit Counseling programs are generally bank sponsored programs and credit card companies. Under this program the creditors get the full amount of the debt and an interest rate which is somewhere between 12% to 15%.
Once enrolled into a Debt Consolidation/Credit Counseling program, it affects your credit report and is viewed similar to filing for chapter 13 bankruptcy.
Credit Counseling is looked at as if you cannot pay your cards as agreed by your creditor. Once enrolled, it is reported to your credit bureau as Debt Consolidation repayment program. Once your credit is flagged for Debt Consolidation repayment program, very few creditors will extend credit to you and if so, they could charge you an extremely high rate.
CONSUMER CHOICE 6
Debt Consolidation programs are very similar to credit consulting program. Under this program all of your debt are consolidated into one payment. This program is managed by a Debt Consolidation company. Consumers make payment to consolidation company and the consolidation company make payments to creditors. With debt Consolidation program consumers pay the full balance owed plus interest.
CONSUMER CHOICE 7
Debt Settlement Program is the most economical way of resolving consumers debt. Under this program the Debt Settlement company negotiates with creditors on consumer behalf, reach a settlement amount ranging between 40% to 60% of how much a consumer owes. Deb Settlement program will give you peace of mind and savings you can count on. Debt Settlement will offer a well-designed plan with experienced negotiators and techniques that will give you real results and savings.
US Financial Relief will customize a payment plan that is totally affordable with a staff of experienced negotiators, debt counselor that will get the job done and save you thousands of Dollars in interest and principle of how much you owe.
US Financial Relief Consumers Education
When it comes to debt relief, most Americans are not aware of their choices and legal rights. Credit card and other unsecured lending companies have taken advantage of this lack of knowledge! And without mercy, they have been charging outrageous interest rates, late fee and penalties while making billions of dollars at consumer’s expense. To help consumers better understand their debt relief options, US Financial Relief is educating consumers about the 7 ways to get out of debt and reclaim their financial freedom.
Our Mission: To Enable Our Clients to Achieve Financial Freedom
As a client advocates, US Financial Relief work closely with you and your creditors to help you pay off your debt fast. We provide our clients with free education and tools, professional advice, customized debt analysis, free savings estimates, and personalized debt relief plans.
To provide clients with best experience, US Financial Relief leverages the latest technology and best people with deep experience in settlement counseling and negotiation. We offer our clients the right resources to help stop collection calls, create a realistic budget and plan for debt resolution, consolidate your debt into one low monthly payment, offer financial coaching, and expert support. Our goal is to help you pay off your unsecured debts fast, reduce high interest debt, eliminate late penalties, and to negotiate the best terms for our clients.
US Financial Relief educate consumers on different ways to get out of debt and reclaim their financial freedom.
Learn how to go debt free!
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