"Your Life Without Debt"
San Diego (PRWEB) March 25, 2013
Golden Financial Services, a nationwide debt negotiation company, released a summary of U.S. Debt Statistics last week.
These debt statistics show that Americans need to take more initiative towards paying off their debts because as of 2013 the total U.S. debt is at a five-year high.
Therefore, it is imperative that as a country consumers buckle down and pay off their debts.
These debt statistics include Credit Card Debt Statistics from 2008-2013. Credit card debt is now higher than 748 billion dollars. The U.S. is at a five-year low on total credit card debt. Back in 2008 the U.S. had more than 900 billion dollars of credit card debt circulating the country.
According to Paul Paquin the CEO at Golden Financial Services “the reason for credit card debt in the U.S. being lower than what it was in 2008 is because of the fact that banks now have stricter lending policies. Consumers are more likely to get denied for a credit card if they have a low credit score.”
Another interesting figure illustrates that student loan debt is now higher than 1 trillion dollars. This is higher than credit card debt.
Option One - Stay Current and Negotiate the Interest Rate on Credit Card Debt:
Melissa Arguelles who is a manager at Golden Financial Services advises consumers to, “Call your credit card companies and negotiate with them directly. Take your emotions out, and use the pure intelligence of your brain to manipulate the best of the manipulators, the credit card companies. Having a 25% interest rate is bull crap, but it is a reality. No wonder why as of 2013 the total debt in this country has exceeded 2.7 trillion dollars. Explain to a manager at the credit card company that if they don't lower your interest rate, you will have no choice, but to stop paying on the card and file for bankruptcy."
After a person gets their interest rates lowered, their next step should be to pay off their debt as quick as possible. In order for a person to pay off their debt in less than three years, they should try to pay double their minimum payments.
Here is a Bankrate debt calculator to help consumers with figuring out more accurate numbers, since each individuals situation may vary.
If a person has a ten percent interest rate and fifty thousand dollars’ worth of debt, by doubling up on their minimum payments they can be debt free in roughly 22 months. That would be a great plan for a person to turn to if they can afford it. Not to mention, a person’s credit score will reward them by increasing.
Option Two – Debt Settlement, Debt Negotiation Services:
If a person is experiencing a hardship situation that is making it near impossible to continue making minimum payments and staying current on their bills, then settling debt through a debt negotiation service could be the best option for that person.
A person could end up paying back a significant amount less than the total they owe through a professional debt negotiation service. A reputable debt negotiation company will also connect their clients with an attorney who is there to give them legal protection while on the program.
Top debt negotiation companies bulk together hundreds of client's worth of debt, then basing negotiations on a large dollar amount. This strategy leads to more leverage and superior results, than if a person was to try to negotiate debt on their own.
A person can have their overall monthly payment significantly reduced, and be debt free in less than three years on a debt negotiation program.
A debt negotiation service would most likely lead to a person’s credit score going down, if they have a high credit score. The good news is that a person can save the most money with this type of program and be out of debt in the fastest time-frame. Therefore a person can rebuild their credit score upon graduation from a debt negotiation service, faster than alternative options.
Building Good Credit or Rebuilding Credit after Graduating on a Debt Negotiation Program:
Millions of consumers have information on their credit report that is inaccurate. The Fair Credit Reporting Act basically teaches consumers how to remove inaccurate marks on their credit report.
Option Three – Do it Yourself Debt Negotiation:
Daring consumers will even try to negotiate debt on their own. One of the many downsides of this option is that creditors will start to sniff out that a consumer is on their own. People naturally have emotions included when they attempt to settle debt on their own. Creditors will attack that aspect of a person’s game.
At Golden Financial Services consumers can use this debt settlement letter if they are planning to negotiate debt on their own.
Steven Aldo at Golden Financial Services warns consumers that if they do try to negotiate credit card debt on their own, “creditors often will take a person to court so be very careful. They will file a lawsuit if their scare tactics don’t work.”
Creditors realize that when a person negotiates debt on their own, they are not being represented by an attorney who would represent them in court.
When a creditor sues a consumer their goal is to get a default judgment, and then garnish that persons wages. Creditors realize that it will be easier to carry out that goal if a person is not being represented by an attorney.
Clients enrolled on the debt negotiation program at Golden Financial Services are also set up with a debt negotiation attorney. Their attorney will give them lawsuit defense if creditors decide to sue.