Find Solutions For Your Unsecured Financial Debt – Credit Counseling Applications That Function

Unsecured loans are the most difficult loans to be paid off as they charge you a high rate of interest because of the higher risk involved. Amongst all the unsecured loans, credit card loans charge you the highest interest rates. Hence, they grow very fast. Even the penalty charges on the cards are very high. When the debts become too high and you do not have enough money to pay them off, it can cause a lot of distress in one’s life. The best way is to find different options which can help you get out of your debt problem.

One of the most recommended debt solution id credit counselling. This basically means experts in the field of debt management will educate you on how debt can be controlled and how you should avoid any further debt. This is also the platform where you can enrol for a debt management plan (DMP).

A DMP helps a customer in making a payment plan which will suit his current situation and is also acceptable to his creditors. A counsellor approaches the credit card companies and negotiates a payment plan for his client. The monthly payment according to the new plan is generally quite lower than that was being paid earlier. It is generally reduced by 15 % to 20 %.

The counsellors also negotiate with the creditors to reduce the interest rates that are being paid by the customer at present. A successful negotiation can bring is down by as much as 10 %. This helps the customer in saving a lot of money.

The credit counselling itself does not have a negative impact on a debtor’s credit rating. However, when the debtor enrols for the debt management plan it reflects negatively on the customer’s credit score.

The 3 Vital Ingredients Of A Financial Success System That Works

At some level we are all seeking some sort of success. When it comes to financial success however, you almost enter a completely different domain. Whereas most people will admit to their desire for financial success, very few of them would ever make the effort to actively pursue financial it. It’s much easier to just get an ‘o.k’ job and work for money. An interesting study revealed just how people are spread though the financial spectrum of society.

Out of a group of 100 people who all start of equally at the age of 25, 1 will be rich,
4 will be financially independent, 5 will still be working, and 54 will be broke by the time they reach 65. If you are someone seeking a financial success system you are already in the top 5% as you are actually looking and seeking financial success and independence. It’s important to ask yourself why you want financial success – we all want it for different reasons, but it’s the reasons that will give you the motivation to actually follow through and reach your goal.

The main underlying reason why most people want financial success is the fact that no one else will have a claim on your time or your money. Total financial freedom gives you the ability to do what you want, when you want it, with whomever you want and as much as you want. From this perspective, I believe that financial success is your birthright – we are not meant to strive through life and be bogged down by shortage and lack. We are born into abundance and we are meant to be, do and have whatever we desire. This is what an abundant life looks like and you simply need to ‘tap’ into this world of abundance. It’s not reserves for a few select or privileged people. Anyone can create any amount of financial success, you simply need to find the right strategy…and there are many out there.

The world is full of financial success systems. Nearly every major brand is nothing but a system. So, what is a system? A system is a method that produces consistent and predictable results. Whether it be Burger King or Nike, it’s all about the system that can be reproduced to produce similar (predictable) results. But, you don’t have to be the next Walmart to reach your financial success. You simply need to find a system that you can reproduce to create your own level of financial success, regardless of what that might mean to you.

With the internet and all the new forms of media there are countless so-called ‘financial success’ systems on the market. It seems like everybody promises instant financial success with almost no effort. The challenge is that very few of these actually produce a penny and you end up enriching someone who only sells dreams. However, there are financial success systems that really DO work and that can help you to reach your financial goals. Here are three fundamental things to look out for before investing in a financial success system:

1. Make Sure It’s Doable

Before you purchase a financial success system, make sure that it’s doable for you. You know what you are capable of and also what you are willing to do. This does not mean that you shouldn’t be willing to stretch yourself. There is a price to pay for financial success and you should be willing to do some new things. Make sure that the system is based on something that you like, or at least something that you are interested in. You don’t want to replace your job with something that you hate even more. Making money should be fun!

2. Make Sure Your Source Is Reliable

It’s very simple: don’t buy a financial success system from someone who hasn’t done it themselves or even worse, someone who makes their money selling you on how to make money. Make sure that the person who put the system together has ‘been there and done that’ and more importantly, make sure that they can actually teach you to do the same. It’s one thing to make a couple of million dollars, but quite another teaching others how to duplicate your results effectively.

3. Make Sure That The System Is Based On Sound Strategies

Every now and again some fly-by-night money making scheme comes along. Everybody gets on board, some make money, but most crash and burn. These ‘schemes’ never last long term. Financial success is not a short term solution, nor should it be. Make sure that the system you invest in is based on sound financial principles and proven strategies for creating wealth – long term.

You don’t have to reinvent the wheel when it comes to creating financial success and independence for yourself. There are many brilliant people that make it their mission in life to develop these systems. You can learn from them and most of them are more than willing to share their secrets and help others. Investing in a reliable financial success system can proof to make all the difference in your life. Making money is like applying a recipe – follow it and you can create a predictable result. Now go and find a recipe and create your financial freedom.

Create A Debt Free Society With Christian Debt Credit Counseling

Living on the edge and on borrowed money and time has become the trend of a hectic, modern life. More and more people are giving in to the temptation of easy cash, ‘buy now pay later’ schemes and of course the lure of the credit cards. However, once the facade has worn off, you come to terms with the reality of multiple debts, but by then it is often too late. When the burden of debts goes beyond control and the creditors and vendors start harassing you it can be a traumatizing time for not only you but your entire family as well. The only solution left would be to go in for further debts to repay the earlier debts and this in turn entangles you in a vicious circle. However, faith is a strong force to be reckoned with and it can provide you the necessary support and guidance in troubled times such as this. Hence if you area Christian then through your faith and the support of like minded people offering Christian debt credit counseling you can surely find a way out of these debts.

Christian debt credit counseling is a service provided by like minded individuals who have come together to form an organization dedicated to creating a debt free society. Not only do they provide Christian debt credit counseling to help you better manage your existing debts and future funds but they also have ways and means to help you repay all your debts easily. The individuals will often negotiate on your behalf with the creditors and help to reduce or freeze the debt and interest amount that you have already accumulated so far. Also, the counseling provided includes financial expertise that helps to consolidate all your multiple debts under a single, affordable monthly payment for you. Now you can easily repay your debts through a single payment every month that leaves you with additional, expendable income to spend for your family needs.

A debtor finds the moral and financial support of Christian debt credit counseling extremely beneficial at difficult times when he is feeling helpless and low about his inability to repay the multiple debts. The counseling is done keeping in mind the basic principles and teachings of Christianity which preaches that you should not serve two masters. When you take a loan then you have two masters, one God and the other is the creditor and hence, it is always essential that you avoid taking debts altogether. The credit counseling provided by the organization therefore helps you relief yourself of the terrible burden of debt in whichever manner possible.

Christian debt credit counseling is not just helping a debtor plan out his finances and repays the already accumulated debts. In certain cases, the organization also provides a financial loan at a low rate of interest to repay all the debts and this is a great relief and benefit to the debtor. So even if you find yourself under debt, rest assured that you can find a way out through the support and guidance of a debt counseling organization.

Best Relief For Credit Card Debt – Credit Counseling Or Debt Settlement?

While the United States economy has suffered from the home mortgage crisis, credit card debt has been bubbling up as the next witch’s brew ready to bring its own potent poison to the table. Credit card debt has been getting out of control for years, but the situation has worsened as other forms of credit have dried up. Home equity loans are no longer a ready cash cow for acquisitive Americans, and growing unemployment rates have more people tapping credit cards to the limit.

Credit Counseling and Debt Settlement

It’s no wonder, then, that organizations that help consumers resolve credit card debt are extremely busy, serving thousands of new clients. There are two popular approaches to resolving credit card debt issues – credit counseling and debt settlement.

Each helps clients by educating them in ways to get out of debt and stay that way, but the approaches are significantly different. The objective of credit counseling is to pay off debts in full by negotiating lower interest rates, while debt settlement companies pay off debts fast by negotiating reductions in the amounts owed. Main differences include:

Credit Counseling:
1. Negotiate reduced interest rate, pay off full original balances
2. Client pays monthly amount to counseling service, which makes payments to creditors
3. Monthly payments usually higher
4. Compensated by fees from lenders, 4-15%
5. More BBB complaints
6. 83.9% of BBB complaints resolved
7. 21-26% reported success rate
8. Professional Associations: National Federation for Consumer Counseling (NFCC) and Association of Independent Consumer Credit Counseling Agencies (AICCCA)

Debt Settlement:
1. Negotiate reduced balances, then pay them off in full
2. Client sets up separate savings account, pays own bills from it
3. Monthly payments usually lower
4. Compensated directly by clients, 10-15%
5. Fewer BBB complaints
6. 91.5% of BBB complaints resolved
7. 40-55% reported success rate
8. Professional Association: The Association of Settlement Companies

Different Approaches for Different Problems

But the biggest distinction is that these two approaches are designed to help people with different levels of debt. Consumers with credit card debt less than $7,500 probably should not consider debt settlement. In such cases, credit counseling or a do-it-yourself program would be a better approach.

But people who have amassed very high levels of credit card debt may find debt settlement the best way to clear the deck and get back control of their lives. Companies that subscribe to standards of The Association of Settlement Companies (TASC) work toward paying off all balances in 12-36 months.

A Needed Alternative to Bankruptcy

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 all but eliminated personal bankruptcy for most Americans. When this option was all but taken off the table, the contemporary consumer credit industry began to take new form to meet the needs of consumers with exceptionally high levels of unsecured debt.

Let’s be clear about this: debt settlement is not for everyone, but it provides a much needed alternative to bankruptcy for people who, for whatever reason, cannot meet their obligations. People who cannot make even the minimum monthly payments on credit card debts aren’t likely to succeed with a credit counseling solution that calls for even higher monthly payments.

Criticism and Comparisons

For an industry with so much to offer the public, debt settlement has been subject to a great deal of criticism lately, primarily for two reasons: 1) the industry is new (less than five years old) and not well understood; and 2) a few bad companies have sullied the reputations of the majority of legitimate, highly ethical ones. The industry is correcting both problems by establishing a higher public profile to raise awareness and understanding, and by sorting out the bad apples.

The credit counseling industry, led by the NFCC, is not at all reluctant to cast stones at debt settlement, perhaps even questioning the industry’s right to exist. But a quick glance at the comparison above should alert readers to several concerns about credit counseling. Two in particular stand out.

First is the matter of who pays credit counseling agencies. Some have observed that they appear to be well-mannered collection agencies for the card companies, because creditors pay fees to them (which is not the case with debt settlement companies).

Then there is the matter of effectiveness. The credit counseling success rate of 21-26% lags well behind the 40-50% reported for debt settlement. If your financial future were on the line, which would you choose?