National Debt Relief
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ELIGIBLE DEBTS

  • Unsecured Debt
  • Credit Card Debit
  • Gas Cards
  • Credit Union credit cards
  • Medical Bills; Smaller amounts ok if with smaller billing company
  • Repossessed Car Loans: Deficiency balance required
  • Utility Bills: Outside collection only
  • Cell Phone: In-house and outside collection ok
  • Business Credit Cards: Need business waiver signed
  • Time Shares: (Mortgage late charges still accrue)
  • Minimum of $10,000 in total debt per enrollment
  • Student loans (Private)

INELIGIBLE DEBTS

  • Any total debt under $10,000
  • Utility Bills-not held with an outside collection agency
  • Jewelry & furniture (see above disclosure)
  • Secured Loans, i.e. car, home equity line, boats, ATV, motorcycles, etc.
  • Active military personnel
  • Government Loans, i.e. federally tied personal or student loans
  • U.S. Military loans/credit linked to military (i.e. Military Star, Navy FCU) possibly linked to pensions, and/or retirement
  • Operating business loans-needs waiver
  • Student loans (Federal)

DO NOTHING (pay the minimum payment):

  • Interest rates can range from as low as 0% to as high as 30%, and creditors can raise rates at any time.
  • You’ll pay nearly 50% of your original balance in interest alone over the first 3 years.

YOU ARE NOT MAKING A DENT ON YOUR PRINCIPAL BALANCE

  • If your rates are 25% or higher, it is practically impossible to pay off your debt by making minimum payments unless you pay at least 3% of the balance in minimum payments with little room for obtaining additional credit.
  • If you have already stopped making payments, you are destroying your credit while not resolving any of your debt in the process.

FILE BANKRUPTCY:

  • Both Chapter 7 and Chapter 13 represent a severe negative impact on your credit for 7-10 years and can cost up to $2500 to file.
  • May have a negative impact on your employment status or future employment.
  • In a Chapter 13 filing, you may end up paying 75-100% of your debt back with little payment relief, Completion rates for this option are low for this reason.
  • Chapter 7 is more difficult to qualify for under the new bankruptcy laws.
  • Carries a negative stigma, mental stress, and other burdens.
  • Bankruptcy should be a last resort.

CONSUMER CREDIT COUNSELING:

  • Programs are generally funded by the credit card companies themselves as the intent is to help you pay back your debt in full.
  • You will pay back 100% of your balances with some interest.
  • Negative impact on credit.
  • This is often viewed by some lending institutions as similar to Chapter 13 bankruptcy.
  • Very little payment relief, if any at all.
  • Program lengths can be up to 7 years.

DEBT CONSOLIDATION LOANS:

  • You must qualify.
  • Typically requires ownership of Real Estate property.
  • Home Equity loan reduces future equity available in your property.
  • Missing payments can cause you to lose your home.
  • Payback period can be 10-30 years depending on debt balance and ability to pay back the loan.
  • You will pay back the full amount of credit card balance plus interest.
  • You are exchanging your unsecured debt for secured debt – this creates a big risk and does not resolve your debt.

DEBT SETTLEMENT:

A consumer-driven program not affiliated with your creditors. Results are focused in the consumer’s best interest.

  • Fees are spread out over the length of the program.
  • Client debt is paid off typically between 24-48 months but for larger balances can be spread out over 60 to 72 months.
  • As each account is settled your credit score grows.
  • Typically pay back between 40-60% of your outstanding debt.