|
DEBT
REDUCTION
Reduce Debts For A Fraction Of Their Original Amount
It
is important for you to realize that it is far better (for everyone)
if you make a settlement with your creditor than it is for you
to file for bankruptcy. The creditors will get more money a lot
sooner and you avoid the indignity of bankruptcy. Needless to
say, there are exceptions when the debts are monumental and no
income is being received.
This
is your plan to a new and brighter financial future. It can be
your ticket to a debt free life
Another
item you should be aware of are non-profit community credit counseling
services program. Even though these people mean well they are
compensated and promoted by the very creditors you owe money to.
The non-profit community credit counseling service's solution
to your debt problem is to tear up your credit cards and put you
on a lengthy repayment plan over several years. Seldom is there
a sizable reduction in principle or interest.
If
your budget does not stretch far enough for full payments to all
your creditors, but does allow for reasonable payments, a Debt
Management Plan (DMP) may be for you. In a DMP, BAFS will make
arrangements with as many creditors as possible to accept lower
payments. Some creditors will stop or lower interest for BAFS
clients. Each month you pay a specified amount to BAFS which is
deposited into a trust account for disbursal debt to your creditors.
A nominal monthly fee is charged for administering your plan.
One
very important item to remember do not let the collectors fool
you.
Yes-creditors
do accept settlements as low as you are offering.
Collection
agencies are retained by creditors when the creditor has abandoned
the debtor as a customer and feels they cannot collect the money
owed to them. Collection Agencies are not interested in preserving
goodwill, all they want to do is collect. Their fees vary from
15%-60% of the amount collected. The more they collect the more
they make.
WHAT
IS THE SECRET TO DEBT REDUCTION?
THE
ANSWER IS SIX FOLD
1.
Knowledge
2.
Consistency
3.
Timing
4.
Correct frame of mind
5.
Professionalism
6.
Game Plan
|
