What is a good national debt relief program and what can it do for you? Is it better than filing bankruptcy or non profit credit counseling. What kind of debt relief are we talking about here? What are the best debt cures out there?
When you talk about debt relief, there are many things you could be talking about. But for this debt relief program we are talking about debt settlement, sometimes referred to as debt negotiation. People think of the words as interchangeable even though they mean slightly different things.
Debt settlement allows many people who are suffering from massive credit card debt or other unsecured loans to drastically reduce those credit card balances in a relatively short period of time. How short? As quick as 12 months. In less than 1 year you could be credit card debt free.
One of the leaders in debt settlement offers a national debt relief program in all 50 states. This debt settlement company is called National Relief. They offer debt relief with no upfront fees and you can get all your money back at anytime without any penalty or fees. They are also fully FTC compliant and have one of the lowest success fees in the industry.
How much does credit card debt settlement cost?
In years past, you could expect to pay an upfront fee and a monthly fee to have a debt settlement firm settle your debts with your creditors. This was at least 15% of your outstanding balance. Sometimes it went higher up to 25% or more.
And these companies made no guarantees that your creditors would be willing to reduce your balances with a debt settlement offer.
Now in 2011 and into 2012, companies can only charge a fee after they have delivered savings on your debts. They only get paid if they reduce your balances. You can think of it like a contingency fee for a law firm that only gets paid when they win a case. In this case the “winning” comes from getting your creditors to agree to a lump sum payment for a forgiveness of your entire debt.
On average you will have to pay a 20% fee based on the savings of your debts. So if you get credit card debt forgiveness of 50% by Bank of America, Chase, HSBC, Advanta, Citibank, Discover Card, FIA Card Services, Wells Fargo, American Express, US Bank or Capital One Bank then you will end up with a savings of 30% after the success fees.
For example, one of your creditors could agree to forgive your $10,000 Visa or MasterCard for a lump sum payment of $5,000. Then you would have to pay a $2,000 success fee. However in many cases you can get a higher reduction percentage on your debts. Sometimes as low as 25%. But we don’t want to give you the best case scenario. It’s better to give an average scenario so that your hopes are not too high when your creditors do not agree to a 25% settlement offer.
Each credit card bank is different and not all of them will be willing to settle your accounts for less than full balance.
Debt settlement is a better alternative than filing for Chapter 13 bankruptcy. The effects on your credit report and score are similar but with debt settlement they do not last as long. You can recover from debt settlement in 12 to 24 months and be able to buy a house or car shortly thereafter. This is not the case with a bankruptcy filing.
Even though National Relief offers a national debt relief program in all 50 states, it is not for everyone. There are some situations where it may not be a good idea to pursue this debt elimination method. They may guide you down a different path that works better for your unique circumstances.
Fortunately, they offer a free debt analysis to discuss your financial crisis and they can work with you in deciding if debt settlement and debt negotiation is one of the best debt cures for you and your family.