Debt Elimination Plans

Debt Elimination Plans

Just How Many Debt Elimination Plans Are Out There?

Really there are only five. But five is a pretty good number, don't you think? Especially when you didn't think there were any! Or maybe you thought there were only one or two. The reality of it is that there are debt elimination plans for everyone. It's just that nobody wants to talk about them because nobody likes to admit that they ever needed a debt elimination plan in the first place!

Now that we've said there are debt elimination plans for everyone, we should explain, don't you think? So here we go. Here's a brief description of each of these debt elimination plans:

• Situation #1: You have about $4,000 in savings, but you owe about $10,000 in credit card debt. You qualify for debt settlement. This is a program that gets the amount you owe reduced by 60-80%, but you have to pay the new amount off immediately. On the upside, you're out of debt that fast. On the downside, this will appear on your credit report and effect it in much the same way as a late payment would.
• Situation #2: Your car is paid for, and it's worth about $8,000. You could sell it and pay off the $8,000 you owe in unsecured debts, but then you'd have to get another car. And if you get a newer model, your insurance will go up. And what's the point of buying one that's the same year as your current car--or older?? Instead of selling your car to pay off your debt, why not use it as collateral for a debt consolidation loan? Sure, you'd have a loan payment instead of all those debt payments, but because of the low interest rate on the loan are so low, you can be out of debt in five years. It would take you 13-30 years otherwise.
• Situation #3: Your student loan payments are so high it's making life difficult. But if you enroll in student loan debt consolidation, you get a much lower interest rate and your repayment is extended so your payment is cut in half.
• Situation #4: You're a homeowner with a lot of debt. You're the perfect candidate for a debt consolidation mortgage! This is very similar to a debt consolidation loan, but it's added to your mortgage payment instead. Your mortgage payment goes up, but only a little. And you get the same interest rate as your mortgage--and remember, you get to write some of that off on your taxes!
• Situation #4: You have nothing but your debt. But that's okay--you can still get debt elimination through a debt consolidation program. Through this kind of program, a debt consolidation company gets your creditors to reduce their interest rates and possibly get past fees removed. Then they combine all the new, lower balances and you make one monthly payment to the debt consolidation company instead of several monthly payments to your creditors. But don't worry--the debt consolidation company will make sure your creditors get paid. Then in five years, you're debt free! And after a few on-time payments, the debt consolidation company can get your creditors to "re-age" your accounts, meaning they will once again report them as current (if you've fallen behind, that is).

With so many great debt elimination programs available, one is sure to be perfect for your situation. The sooner you enroll in one, the sooner you'll experience total debt elimination

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