Debt Settlement Blog

Suze Orman was wondering if you have you ever wondered why people continue to use credit cards even after letting them bury you in high rate interest? In this video Suze seems to be backing CCC (consumer credit counseling over debt settlement because the debt negotiation firms usually trash their credit. First of all Suze, as an experienced mortgage broker I have seen hundrerds of borrowers with credit that was significatntly impaired from consumer credit counseling, because with their programs the consumer stardts paying the creditors less than agreed.  Their credit rport starts reflecting that each month and it lasts a heck of a lot longer than debt setttlement. Second of all, the consumers that incurred the debt should have some responsibilty with regrads to their credit scores being trashed…

To your surprise, you actually need to have a credit card these days. But you do want credit card debt. Suze Orman explains the benefits of credit cards, but warns about carrying adjustable rate debt from these credit cards.

Is Debt Consolidation a SCAM?

If you really want to work with an company, look for one who can help you reduce your debt.  Consider, Debt Settlement, Consumer Credit Counseling or an Unsecured Bill Consolidation Loan or a Secured Home Equity Loan.

Analyzing data for credit card debt can be a way someone who owes a lot of money could feel better about themselves. Recent reports indicate that credit card debt continues to break records each year with more people have more consumers having more secured and unsecured debt than ever before.

If you have a credit card statistics, you will be able to feel better about yourself as you go about the frightening task of cleaning up that debt. On the other hand, considering solutions for credit card debt like debt consolidation loans, debt settlement and bankruptcy can be a daunting task to say the least.

The term, debt management can be confusing.  In most cases debt management refers to consumer credit counseling.  Credit counseling can improve your finances, but most people who get involved do not realize that consumer credit counseling takes years to complete, it damages your credit scores and that borrowers who join CCC have to completely pay back their outstanding debt.  Debt settlement options hurts your credit scores initially, but you only pay off a portion of the outstanding debt and in most cases your credit scores rebound quicker than CCC.  Debt consolidation loans usually help your credit immediately because you are never late on your monthly credit card payments and eliminating numerous revolving credit accounts into one fixed rate payment will raise your credit scores.  The only problem when consolidating credit card debt usually requires a large unsecured loan or a second mortgage.  In this type of financial market, banks are not offering either option unless you have a significant amount of home equity.