What Is The Connection Between A Debt Settlement Program And Bankruptcy

 Working Americans everywhere are hurting badly. Even those who have managed to remain employed through this terrible period have seen there incomes drop, and if not their incomes then certainly their buying power. Things have been so bad economically that in my ten years of credit counseling have never encountered so many consumers who are literally between a rock and a hard place in terms of receiving debt help.

 Perhaps I can provide some examples. One couple needed a
debt settlement program because of a clearly projected drop in
income coming up. But there was a major hindrance. They had 25,000
dollars of credit card debt, but the 25 k was comprised of 60, yes I said 60—
credit cards all with balances of less than 500 dollars.

Every debt settlement company in the country requires that each individual debt have a balance of at least 500.00 dollars with absolutely no exceptions. I mean seriously, who manages credit card balances in that way? Was this the result of debt stress? The only option left? Bankruptcy? Maybe and I will tell you why maybe later in this article.

 Here is another example. A consumer had a drop in income of 1000 dollars per month. Divorced and raising two children, she had paid off all her other cards and debt because she knew the change in income was coming. She had one credit card left with a balance of 25000.00 dollars, with monthly payments of 550.00 and very high interest rates. Normally this could be easily handled by a debt management program
to reduce the interest and have the debt paid in 5 years, and maintain her excellent credit rating. But the fly in the ointment was that she could now only afford monthly payments in the 250.00 dollar range. This left her an option of debt settlement which would damage
her credit short term when she had worked so hard to pay off all the other indebtedness. Even a five year settlement program with a reduction in fees could not get her payment to what she really needed to insure success.

 The real sin of who I will call consumer two, is that she was a very moral person and had an incredibly moral sense and desire to pay back this last debt, if only the bank would be cooperative and lower her payment, which they would not.

 So what does all this mean to you? Working your way out of debt is never easy. First you must overcome inertia, which is the desire of a body at rest to remain at rest. In other words you have to d research to locate a company to work with and have them help you find an appropriate solution for you, remember, everyone’s situation is different.

 Before I conclude this article allow me to say that recently American Debt Enders has begun not just getting rid of peoples debt but also helping to teach consumers how to become self empowered financially. If you are interested in a serious work at home business opportunity, view this video:

http://www.youtube.com/watch?v=YScTV0Jq4e4

 If you find this interesting –simply fill out this form:

http://americandebtenders.go4millionsclub.com

 

Yours Truly

Steven Ciantro
Consumer Advocate
American Debt Enders
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper's Top 1% Club
Gail Kasper's Top 1% Club 
877-766-2465