Accelerated Debt Consolidation, Inc. Offers Tips for Taking Action on Credit Card Debt Now

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With Post Holiday Debt That Is Usually Higher Than Normal Immediate Action Can Save You Significant Interest Charges

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Early Birds May Catch Debt Relief. Take Action Now On High Interest Credit Card Debt

Quite often consumers call debt management firms for quotes on debt management plans that result in calculations that will clearly save them hundreds to thousands of dollars per month over the life of the plan. Many of these consumers will call the firm back 6 months to a year later and be ready to get started with the debt management program. During the 6 months or a year that it took consumer to finally take action the consumer has wasted significant amounts of money for no reason other than procrastination. If consumers are facing high interest credit card debt and making less than full balance payments when those bills come due in many cases these consumers are paying interest that could be avoided by contacting a legitimate debt management firm and getting these accounts on the debt management program with the combination of possible balance transfer opportunities in conjunction with the debt management program.

Many consumers are hesitant to take action due to horror stories heard about unscrupulous debt management operations and consumers often get “Debt Management” confused with “Debt Settlement”. If credit consumers are current on the accounts or less than 6 months behind and intend on maintaining and improving credit scores a Debt Management program is what will be needed where balances are paid in full at lower interest rates over shorter periods of time. Debt Settlement programs are for consumers that cannot afford the required minimum payments in a debt management program and result in “negotiated” settlement amounts that are lower than the balances owed. This may be feasible for consumers strapped with debt that they just cannot pay however in most cases this can be accomplished on their own with a little guidance because settlement negotiations do not begin until accounts are charged off and in many cases the collection agencies that buy these accounts from the creditors at usually 10% of their original value will offer settlement amounts to debtors directly so the debtor can deposit the money into their own bank account and settle the accounts on their own without paying a firm to do it for them. For information on debt settlement CLICK HERE.

An example of how much procrastination in handling high interest credit card debt can cost look at this example. If a consumer has $30,000 in credit card debt at 24% APR and pay $600 per month on it in a fixed payment manner it will take the debtor 220 months to pay it off and will result in $101787.77 in interest over the 18.33 years or 220 months to pay it off. By reducing that $30,000 to 6% in a debt management program the debtor will pay that amount off in 58 months and save $97253.51. SEE CHART Below :

Calculator Results
Payoff Calculator Results
Account     Interest Savings/Reduced Payoff Time
24% Creditor    At the current Interest Rate, the 24% Creditor Account would be paid off in 220 months (18.33 Years) and debtor would have paid a total interest of $101785.77. By reducing the Interest Rate to 6%, the account could be paid off in only 58 months (4.83 Years) and save $97253.51 in interest. Payoff Time: Payoff time at 24% is 220 months                                                                                                                        
Payoff time at 6% is 58 months                              

Debtor could save a total of $97253.51 in interest!

This results in savings over 58 months of $1676.77 per month over 58 months with a fixed payment of $600 at 6% interest.

SOME TIPS ON TAKING ACTION NOW

1.    Carefully research the firm that you choose for debt management
2.    Always check their BBB Report
3.    See if they first explore balance transfers that may make your rates more favorable before enrolling accounts in debt management
4.    Know the difference between “debt settlement” and “debt management”
5.    Carefully review any firms client agreement (do they offer a guarantee?)
6.    Do these calculations for yourself you can use the calculator at this LINK
7.    Don’t wait for “miracles” these could be costing you thousands per month
8.    Start researching your options now
9.    Don’t fall for TO GOOD TO BE TRUE offers
10.    Understand that in order to maintain and improve your credit, accounts must be paid in full

For more information on debt management visit http://www.debtsynergy.com or call 800-810-5250

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Jim Young
Accelerated Debt Consolidation, Inc.
800-810-5250
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