Read An Opinion On:
By Sean A. Kelly
Christmas is just round the corner and you are probably one of those doing some last minute shopping. Many people are looking for ways to fund their Christmas shopping. If you are not cash rich, you would probably be funding your shopping with credit cards or personal loans. You can always skip Christmas shopping to save some money. But what is Christmas without some gifts? You could be wondering how to pay off your debt after Christmas. You might even have debts from last Christmas. Find a partner like Freedom Debt Relief to help you find a solution to debt relief.
Freedom Debt Relief is a reputable and solid partner for debt relief. As a member of the Better Business Bureau (BBB), it is one of the leading debt resolution providers in the country managing $1 Billion of debt. It has helped customers to settle $40 Million of debt every month and the amount is growing. Freedom Debt Relief (FDR) runs a program called Freedom Fresh Start. It is an effective debt reduction or debt settlement program to help its clients resolve debt burdens in a short amount of time. There is no risk to you in using this program because FDR guarantees no fees payment for its services until your debt is successfully resolved.
There are a few programs to settle your credit card debt and debt settlement is one of them. Debt settlement or debt negotiation is the process whereby you negotiate with creditors to reduce overall debts. The creditor must first agree to forgive a certain percentage of the total amount owing. The reduced balance will then be paid either in a lump sum payment or divided into smaller amount of monthly payments. However, not all debts can be negotiated. Debts secured by real assets like home loans and auto loans cannot be settled.
Many people have turned to debt settlement to solve their debt problems in favor of credit counseling or bankruptcy. The negative side of debt negotiation is that the forgiven balance is considered taxable balance by IRS. You may seek advice from your tax advisor on Cancellation of Debt Income and obtain more details about Form 182. In addition, the settlement will also be noted on credit report creating a negative impact.
If debt settlement is not for you, you may want to consider other options to settle your credit card debts.
? Balance Transfer: If you have a few credit card debts, then balance transfer is the simplest way to consolidate these debts. Total up all the monthly minimum payments which you have to make for your credit cards. You will get a combined balance. Add an extra amount to this combined balance and you will get a new monthly amount. Transfer all your credit card debts to one new balance transfer card and pay the new monthly amount every month. The extra amount you pay every month will be a great help to settle you debts. You could check out balance transfer program with 0% interest rate and zero transfer fees or low transfer fees cap at $50 to $70.
?Debt Consolidation Loan: If you have large credit card debts which you probably cannot pay off during the balance transfer offer period, you may consider debt consolidation loan. If you own a home with equity you can take up home equity or refinance loans. It is a good way to pay off your debts because it has low interest rate and it is tax deductible. You could also apply for a personal loan which comes with higher interest rates and is also more difficult to get approval.
? Credit Counseling: Credit counseling is a service that helps to review your debts, income and expenses and work with you to create a payment plan called Debt Management Plan (DMP). With DMP you only need to make a single monthly payment to the service and it will distribute it to your creditors. Prior to this, the service will work with your creditor to reduce the interest rates and fix a monthly payment amount. Many lenders perceive this service as similar to bankruptcy even though it will not affect your credit score.
? Bankruptcy: This is your last resort if everything else fails. However, it is more difficult to eliminate credit card debts through bankruptcy due to the revisions in 2005 to the bankruptcy law.
You may not be sure which option is the best for your situation. You could probably speak to consultants from debt services companies. They could provide you details of the various options and help you come to a decision. Whatever you decide to do with your debts, it would require commitment and consistency to pay off your debt in the shortest time possible.
About the Author:
Freedom Debt Relief
Source:
isnare.com
Permanent Link:
isnare.com/?aid=728947&ca=Finances