Debt Elimination

Debt Elimination which is sometimes referred to as Debt Freedom is a program very different from Debt Settlement.  Although different, Debt Elimination is aimed at the same goal of reducing the amount of debts owed and the time taken to pay them back.  Many Debt Settlement companies use the term “Debt Elimination” as a marketing technique, however true Debt Elimination only applies debts that have gone to 3rd party collection and is the process by which the actual collection process is challenged.

The Debt Elimination process forces collection agencies to the meet the legal requirements in their collection attempts.  This process is highly successful for aged debts and in the process also removes collection accounts from the client’s credit report, thus repairing their credit simultaneously.  This service is only successful for unsecured debts that go into collection and/or judgements.  Once the debt has been charged off and sent to collection, Debt Elimination reduces debt to pennies on the dollar and in many cases is able to completely remove the debt by making it legally “uncollectable” for the collection agencies.

Sounds too good to be true?  Only certain individuals will qualify for a Debt Elimination program along with the fact that it requires debts to be somewhat aged before work begins.

 

Who Qualifies For This Program?
  • This program is available nationwide
  • Clients must have an average account balance of $2,500 per account enrolled
  • Clients who have accounts in collections or are willing to let debts go to collections
  • Clients who cannot afford their current monthly payments to their creditors
  • Clients who want to avoid bankruptcy or who do not qualify for bankruptcy
  • Clients who want to save money

 

Types of Debts That Can be Enrolled:
  • Credit Card Debt
  • Medical / Hospital Bills
  • Personal Loans
  • Autos (Repo Balance)
  • Student Loans (With Exception)

 

What Can be Expected From a Debt Elimination Program?

Like a Debt Settlement program, Debt Elimination will negatively impact the client’s credit score during the process.  However, following the Debt Elimination program, the enrolled items will be removed from the client’s credit report thus raising the client’s credit score.  Debt Elimination firms use a complex procedure that pertains to federal and state consumer laws.  This makes the process very difficult for consumers to do on their own, unless they possess the time or energy to learn the specifics at the local and national level.  Reputable firms, however charge reasonable rates that typically result in a much lower cost than Debt Settlement.  However many Debt Elimination firms do not handle collection calls and letters for the client.

 

Consolidation Loans

Like many debt management programs, consolidation loans convert many different payments into one payment every month by obtaining a single loan to pay off all of the others. The idea is to help consumers keep track of their finances and reduce the chance of late or missed payments.  Debt consolidation loans are classified as either secured or unsecured. A secured loan required collateral such as a home. If the debtor cannot make payments on a debt consolidation loan they run the risk of losing their home. In converse an unsecured loan does not require collateral but usually carries a much higher interest rate.

Risks and Drawbacks Associated with Consolidation Loans:
  • Loss of home or valuable item in the case of default
  • Larger payback sum and time-frame
  • Lower credit score
  • Loan transaction fees
  • Monthly payment remains the same (no help for hardship)

 

Credit Counseling

Credit Counseling is typically defined as the process of creating a financial plan for a person experience hardship through debt.  Many credit counseling agencies are solely run in order to refer clients to either file Bankruptcy or enroll in a  Debt Management programs.  In many cases the term Credit Consulting and Debt Management are synonymous.

 

Cost Comparison of Various Debt Relief Programs

Debt Relief Comparison

Given the straight cost breakdown above, the most economic program is obvious

 

If you would like to speak with one of our specialists about enrolling in a particular program, or just need some help deciding which solution is right for you, feel free to call us at (888) 609-1854 | Opt. #1 or complete the form on our CONTACT page.