Debt settlement is more effective than credit counseling because it can slash a debt in half. Creditors can also get paid immediately, rather than wasting time and money in court, without any collection guarantees.
Los Angeles, CA (PRWEB) April 10, 2010
Amid the economic crisis, Neil Leiman, saw many of his tax clients pummeled by credit card debt. Marriages broke apart and people shut down their businesses, or went bankrupt. The carnage was a déjà vu for Leiman, who recognizes debt's cancerous impact.
Ten years ago, the president of Leiman & Associates lost substantial business income and was on the verge of bankruptcy. Delinquent $68,000 in credit card debt, debt collectors persistently harassed him with legal threats. But Leiman was determined to avoid bankruptcy.
His will prevailed after joining a debt settlement program.
Within twenty-four months, debt negotiators struck an agreement with his creditors, and he paid back less than half his debt.
Leiman is referring clients in financial hardships to the company's program so they can receive assistance in negotiating settlements of their unsecured debts.
Many of his clients are in debt and uncertain of the economy. Based on a study by Princeton Survey Research Associates International, this year 30 percent of taxpayers intend to spend their tax refund to pay down debt.
However, as a Referral Affiliate of the debt settlement program, Leiman feels he can help create more financial security for some of his clients' families and businesses.
He alleges, "Debt settlement is more effective than credit counseling because it can slash a debt in half. Creditors can also get paid immediately, rather than wasting time and money in court, without any collection guarantees."
The program accepts a minimum debt of $2,500. Last month, Amanda Romano, a partner of the firm, referred a self-employed truck driver to the program, who enrolled $139,000 in credit card accounts.
His debt remained unpaid because he was out of work for eight months and his wife is unemployed. They lived off their retirement funds.
Romano, who holds a Masters degree in Marriage and Family Therapy, states, "65% of all U.S. divorces are attributed to a financial problem, but thankfully, Debt Free League offers families a sensible solution."
She cautions that debt settlement programs aren't cheap. Some charge fees upwards of 15% of the total debt amount enrolled.
In contrast, the National Debt Relief Stimulus Plan is a cost-effective bankruptcy alternative with fees being only 10 percent. The Debt Free League website also evidences drastic reductions on credit card debt settlements.
An issue with the settlement procedure is potential credit score damage. However, debt settlement candidates generally have late payments, or collection accounts.
Leiman adds, "Paying on time doesn't mean you have good credit. If you maxed out your credit cards, you hurt your debt-to-credit ratio and your credit is bad. However, settling your debt will improve your debt-to-credit ratio, which represents one third of your credit score."
Case in point, approximately sixty days after settling his debt, Leiman successfully refinanced his home mortgage loan.
Businesses interested in becoming a Referral Affiliate of the National Debt Relief Stimulus Plan may contact Debt Free League at 1-800-213-9968, extension 107.
About Debt Free League:
The complete debt settlement service provider is pioneer of the National Debt Relief Stimulus Plan and is affiliated with Libre de Deudas. Their in-house debt negotiation specialists help people in financial hardships negotiate settlements of personal, medical, and business debts.
About Leiman & Associates
The full service accounting firm specializes in personal, business, and corporate tax planning, business consulting, and business incorporation. Neil Leiman, company President, holds a B.S. in Accounting, M.B.A. in Finance, CTEC certification, and is an Accounting professor at National University, San Diego.
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