My Debt Relief Plan

Three Steps For A Debt Free Life

December 29th, 2007

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Debt Management

This is a program many agencies and companies offer individuals with heavy debt and those having difficulty in paying back or those who have defaulted in a couple of monthly payments. A debt counselor first reviews the complete situation and tailors the repayment plan as per the individual’s unique needs.

In this program, all the unsecured debt of the consumer is consolidated to incorporate one convenient payment each month, made to the company or agency, who shall then distribute it to the various creditors of the consumer. When these loans are consolidated, the interest rates are also significantly reduced hence, completing the repayment in a shorter span of time. This program generally becomes a “win-win” situation for the consumer, and is one of the recommended ways of effectively dealing with excessive consumer debt.

Debt Settlement

Many consumers are struggling with unsecured debts such as credit cards, store cards, personal loans, and medical debts. These debts are so burdensome that the consumer can no longer pay the minimum balances without sacrificing some basic necessities. In this situation many feel as though bankruptcy is their only solution. Fortunately there is an alternative.

Debt settlement is a financial hardship solution, meaning that if a person has a financial hardship from an unexpected event such as an injury, loss of job, divorce or medical issue, or he just can’t keep up with his minimum payments anymore, he can qualify for a debt settlement program, wherein, an agency will negotiate with the creditors of the consumer and work out a reduction of the debt which can then be easily paid off by the consumer. Hence, avoiding bankruptcy and at the same time becoming debt free.

Credit Improvement

FICO score or credit score as it’s commonly called is a very important calculation that can control whether or not an individual is eligible to receive credit, and if eligible the terms that he can receive credit under. Failure to understand the impact that this score can have on the future purchasing power and lifestyle can be disastrous. The FICO score is a numerical score that is based on a person’s financial history as collected in his credit report.

There are professional agencies that can review a consumer’s current financial situation and credit report to give feasible suggestions which, if incorporated, will definitely improve his FICO score, thereby giving him the chance to negotiate with his creditors for a lower interest rate or easier repayment plan.

A survey once conducted in association with Bright Credit, a Financial Services company, into the understanding of U.S. Consumers’ awareness and attitudes relating to getting help with their personal debt, revealed the following facts:

1 out of 4 American who has 4 or more major credit cards is having difficulty paying their credit card bills.

Over 58% have or would look for help from their financial or tax consultant while over 41% would look to the Internet and 24% would follow the advice of an independent newspaper columnist.

Over 70% of the respondents felt that the vital or extremely important elements in making a choice were:

- The amount of fees paid to the company
- The length of the program
- The certification of counselors
- The effect on credit score
- The stopping of creditors calls
- The record from the Better Business Bureau
- And the length of time to cancel without a penalty.

The survey reveals the need for an increase in consumer awareness regarding the options open to a consumer when he is faced with extreme financial duress due to high debts. The right choice could make him debt free in just three easy steps.

Glen Grant is the President & CEO of Bright Credit, a financial services company that helps consumers get out of debt, improve their credit, & become financially free. Their team of experts has over 10 years of experience and they have helped thousands of consumers with their debts and their credit. Under Glen Grant’s supervision,

Bright
Credit has used it’s 3 core services, namely, Debt Management Program, Debt Settlement Program & Credit Improvement Program, to help many consumers resume a Debt Free Life. You can contact Bright Credit at:

Phone: (800) 699-9740

Fax: (760) 888-0442

Email info@brightcredit.com

Web: http://www.brightcredit.com

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Entry Filed under: Debt, Debt Relief, Settlements, Debt Reduction, Debt Consolidation, Blog Carnival