There are four alternatives to your debt problems, and while we believe that DSS's "Debt Reduction Program" is the best solution for most consumers, we want to educate each and every applicant on the alternatives and let them make the choice that is best for their solution.
Credit Counseling
Consumer Credit Counseling is an alternative for consumers who are able to continue making their minimum payments, but would like to lower their interest rates in order to pay their balances down more quickly. Like Debt Settlement Services’s program, Consumer Credit Counseling organizations act as an intermediary between you and your creditors. However, Consumer Credit Counseling organizations typically attempt to reduce interest rate and fees on your debts, not the balances themselves. Through the reduction of fees and interest, Credit Counseling will generally allow you to get out of debt in about 5-7 years. However, you will end up paying back 100% of your balance plus interest, which will require a significantly higher monthly obligation than a typical debt negotiation program.
When evaluating Consumer Credit Counseling, check to see is if the organization is for profit or non-profit company. Non-profit Consumer Credit Counseling organizations are funded and supported by the credit card companies who you are making the payments to. This does create a potential conflict of interest, so be sure to understand if any Consumer Credit Counseling organization is collecting fees from both you and your creditors.
Consumer Credit Counseling organizations are right for some people, especially those who can afford the higher monthly obligation that is required in such a program. We have Consumer Credit Counseling programs available if that is what you decide is best for your situation.
Debt Consolidation
Unfortunately, a Debt Consolidation Loan is one of the most common solutions people think of when they fall into financial difficulties. This is a problem because most people who get a debt consolidation loan find themselves in much deeper financial trouble than they were in to begin with.
Debt consolidation loans transfer debt from one place to another. While this may sound good, since many times it can appear to lower your monthly payments, a debt consolidation loan will not reduce the amount you owe.
You will still pay back 100% of the debt consolidation loan, plus interest. The interest rate is sometimes lower than before, but this is because debt consolidation loans are usually secured loans that cannot be lowered or negotiated. Once you sign up for a debt consolidation loan, you have just gone from an unsecured debt to a secured debt and have put your personal assets (e.g. your car or home) at risk. At that point if you can't pay your bills your creditors can come and take your personal property - thus creating a bigger problem than you had to begin with.
Debt consolidation is right for some people, especially those that are not at risk of falling behind on their new consolidation loan and who have the discipline not to charge back up the credit cards that now have empty balances and available credit. However, if you are struggling to make your payments, you should consider debt reduction, not debt consolidation. This way you are dealing directly with the problem, not temporarily avoiding debt problems.
Bankruptcy
Bankruptcy is a way to potentially get out of your debts. Unfortunately, it leaves a long lasting scar, and comes at a high price - financially, emotionally, and socially. It is a long and painful process and the repercussions can last for over a decade.
The financial impact is severe; a bankruptcy will stay on your credit report for 7-10 years. Every time you apply for credit, whether it is a home, a car, a lease, or insurance, you may be impacted. The long-term effect of higher rates may greatly outweigh the shorter-term impact of filing bankruptcy.
Additionally, most people do not realize that bankruptcy can stay on their court records for over 20 years - which means it can follow someone for the rest of their life. If you apply for a job, a loan, insurance, or even rent an apartment your bankruptcy filing may be easily uncovered.
Lastly, we have yet to find someone who is proud of filing bankruptcy. Most people will do anything to avoid filing bankruptcy, and for many of our clients, DSS's Debt Reduction Program is a perfect alternative.
Bankruptcy is not an easy or even quick fix. It is a very serious decision with serious consequences. If you are considering bankruptcy, you should contact a lawyer to discuss this option.
DSS's "Debt Reduction Program" is a great alternative to bankruptcy. Our team of negotiators has one goal - to make your creditors accept our settlement amounts as payments in full, making you debt free without having to suffer the longer-term financial, emotional, and social impacts of a bankruptcy. Many of our clients are ecstatic to find an alternative to bankruptcy that still solves their debt problems.
Credit Card Minimum Monthly Payments
Unfortunately, millions of Americans who are struggling with their debts continue to just barely make their monthly payments. Most of these people just keep doing whatever they can to continue making minimum payments for the rest of their lives. If you are facing severe financial hardship, and making these minimum payments is making it difficult for you to make ends meet, then this is a no win situation. If you are only meeting your minimum payments, you are paying almost entirely interest charges; not paying down your debts.
This means that if you owe $10,000 today, it will cost you as much as $20,000 to $40,000 over the next 20-40 years before you are debt free.
If making your minimum payments and getting out of debt in a reasonable time frame is causing you a financial hardship, DSS's Debt Reduction Program can help you to negotiate reductions on your debts, avoid bankruptcy, and come to an agreement with creditors on your terms, not theirs.
In Debt Settlement Services's Debt Reduction Program we find the optimal solution for you; not your creditors. By working through a plan based on your specific situation, we can typically settle your debts over the next 2-3 years, and potentially at a 40-60% discount to what you owe.*
* Actual results will vary based on individual situations and negotiations. Success in our program is highly dependent on your ability to save a specified amount consistently each month. Debt Settlement Services may be unable to get you debt free within 36 months. Debt Settlement Services makes no representation or guarantee that we will be able to lower your debts by a certain percentage.
Credit Counseling
Consumer Credit Counseling is an alternative for consumers who are able to continue making their minimum payments, but would like to lower their interest rates in order to pay their balances down more quickly. Like Debt Settlement Services’s program, Consumer Credit Counseling organizations act as an intermediary between you and your creditors. However, Consumer Credit Counseling organizations typically attempt to reduce interest rate and fees on your debts, not the balances themselves. Through the reduction of fees and interest, Credit Counseling will generally allow you to get out of debt in about 5-7 years. However, you will end up paying back 100% of your balance plus interest, which will require a significantly higher monthly obligation than a typical debt negotiation program.
When evaluating Consumer Credit Counseling, check to see is if the organization is for profit or non-profit company. Non-profit Consumer Credit Counseling organizations are funded and supported by the credit card companies who you are making the payments to. This does create a potential conflict of interest, so be sure to understand if any Consumer Credit Counseling organization is collecting fees from both you and your creditors.
Consumer Credit Counseling organizations are right for some people, especially those who can afford the higher monthly obligation that is required in such a program. We have Consumer Credit Counseling programs available if that is what you decide is best for your situation.
Debt Consolidation
Unfortunately, a Debt Consolidation Loan is one of the most common solutions people think of when they fall into financial difficulties. This is a problem because most people who get a debt consolidation loan find themselves in much deeper financial trouble than they were in to begin with.
Debt consolidation loans transfer debt from one place to another. While this may sound good, since many times it can appear to lower your monthly payments, a debt consolidation loan will not reduce the amount you owe.
You will still pay back 100% of the debt consolidation loan, plus interest. The interest rate is sometimes lower than before, but this is because debt consolidation loans are usually secured loans that cannot be lowered or negotiated. Once you sign up for a debt consolidation loan, you have just gone from an unsecured debt to a secured debt and have put your personal assets (e.g. your car or home) at risk. At that point if you can't pay your bills your creditors can come and take your personal property - thus creating a bigger problem than you had to begin with.
Debt consolidation is right for some people, especially those that are not at risk of falling behind on their new consolidation loan and who have the discipline not to charge back up the credit cards that now have empty balances and available credit. However, if you are struggling to make your payments, you should consider debt reduction, not debt consolidation. This way you are dealing directly with the problem, not temporarily avoiding debt problems.
Bankruptcy
Bankruptcy is a way to potentially get out of your debts. Unfortunately, it leaves a long lasting scar, and comes at a high price - financially, emotionally, and socially. It is a long and painful process and the repercussions can last for over a decade.
The financial impact is severe; a bankruptcy will stay on your credit report for 7-10 years. Every time you apply for credit, whether it is a home, a car, a lease, or insurance, you may be impacted. The long-term effect of higher rates may greatly outweigh the shorter-term impact of filing bankruptcy.
Additionally, most people do not realize that bankruptcy can stay on their court records for over 20 years - which means it can follow someone for the rest of their life. If you apply for a job, a loan, insurance, or even rent an apartment your bankruptcy filing may be easily uncovered.
Lastly, we have yet to find someone who is proud of filing bankruptcy. Most people will do anything to avoid filing bankruptcy, and for many of our clients, DSS's Debt Reduction Program is a perfect alternative.
Bankruptcy is not an easy or even quick fix. It is a very serious decision with serious consequences. If you are considering bankruptcy, you should contact a lawyer to discuss this option.
DSS's "Debt Reduction Program" is a great alternative to bankruptcy. Our team of negotiators has one goal - to make your creditors accept our settlement amounts as payments in full, making you debt free without having to suffer the longer-term financial, emotional, and social impacts of a bankruptcy. Many of our clients are ecstatic to find an alternative to bankruptcy that still solves their debt problems.
Credit Card Minimum Monthly Payments
Unfortunately, millions of Americans who are struggling with their debts continue to just barely make their monthly payments. Most of these people just keep doing whatever they can to continue making minimum payments for the rest of their lives. If you are facing severe financial hardship, and making these minimum payments is making it difficult for you to make ends meet, then this is a no win situation. If you are only meeting your minimum payments, you are paying almost entirely interest charges; not paying down your debts.
This means that if you owe $10,000 today, it will cost you as much as $20,000 to $40,000 over the next 20-40 years before you are debt free.
If making your minimum payments and getting out of debt in a reasonable time frame is causing you a financial hardship, DSS's Debt Reduction Program can help you to negotiate reductions on your debts, avoid bankruptcy, and come to an agreement with creditors on your terms, not theirs.
In Debt Settlement Services's Debt Reduction Program we find the optimal solution for you; not your creditors. By working through a plan based on your specific situation, we can typically settle your debts over the next 2-3 years, and potentially at a 40-60% discount to what you owe.*
* Actual results will vary based on individual situations and negotiations. Success in our program is highly dependent on your ability to save a specified amount consistently each month. Debt Settlement Services may be unable to get you debt free within 36 months. Debt Settlement Services makes no representation or guarantee that we will be able to lower your debts by a certain percentage.
