Debt consolidators at US Debt Reduction offer a cost efficient solution to high interest rate credit card debts, and unsecured loans. When Americans are deep in debt, or require debt consolidation services such as financial consulting, debt settlement, or money management debt consolidators can help.
Debt consolidators work for Consumer Credit Counseling Services, Debt Consolidation Companies, Debt Settlement Companies, and Lenders who provide Consolidation Loans such as Countrywide Financial, or Chase Manhattan. Most debt consolidators are also referred to as credit counselors, or accredited credit counselors. Their occupational description, and responsibility is to counsel people living with credit card, and most other debts. Debt consolidators also help explain the program that their company, or service provides.
It takes a lot of strength to persistently maintain the position, and poise of a debt consolidator. As a professional debt settlement, consolidation and reduction company we've come across several staff members, and employees who take home what they encounter during working hours. Providing guidance to those in debt isn't exactly the most exciting job, however when a client finishes the program its extremely rewarding for everyone including the creditors / lenders, debt consolidators, and most importantly the individual that was struggling in debt.
Debt consolidators at US Debt Reduction take pride in our program, and its ability to eliminate debt in a cost efficient, time effective manner. The task of the debt consolidators may seem simple, explain a program... provide guidance... but its more than that. Debt consolidators, and credit counselors have to fluently understand, and verbally exchange the consequences of bankruptcy, how the debtors credit score will be affected in their specific scenario, evaluate, and calculate income to debt levels to determine a budget (allowance), and thats just the beginning.
Debt Consolidators Specialize in the Following:
Debt Settlement and Negotiation
Debt Settlement and Debt Negotiation Companies are for-profit debt relief companies as is every debt company, however some credit counseling services claim to be non-profit, and that is entirely untrue, just ask the IRS who is effortlessly stripping their claim to non-profit. On a better, honest note debt settlement and debt negotiation companies work with the debtor / client by enrolling them into a debt settlement program.
The program is usually 12-36 months long, depending on the total debt amount, the budget of the debtor, and the settlement companies ability to negotiate a favorable payoff amount, also referred to as a settlement, hence the name debt settlement.
How is debt settlement and negotiation accomplished? On behalf of US Debt Reduction, once a client is clarified eligible our Corporate Division opens an account with our partnered FDIC Bank, this is where the clients lowered payments are sent. Once 30% of the clients debt has accumulated in the account our staff from Corporate will begin the negotiation phase on the clients behalf. Typically, our company is able to negotiate a savings amount of 40-50% meaning the client usually pays back 50-60% of what was originally owed.
Example: If you the debtor / client owed GE Money Bank $10,000.00 you would payback between $5,000.00 to $6,000.00 of what was originally owed, additionally this figure DOES INCLUDE our service fee.
Why Do Creditors Agree to This? Debt settlement and negotiation are basically positive collection methods that help you benefit gradually at your personal afford ability, rather than demanding unrealistic amounts that are just plain ridiculous like the concessions made by relentless, non-tactical collection agencies.
Can you negotiate on your own? Absolutely, you can also bake, and decorate your partners wedding cake. However, the cake may not taste as well, nor look as presentable (don't think this one would go over to well). But, if you need some pointers give us a call, thats what we're here for!
Debt Management and Credit Counseling Services
Credit Counseling Services usually staff between 25 - 50 credit counselors, and debt consolidators. Additionally, there employees are not volunteering to work 8-12 hours, 5-6 days per week. This brings us to the next statement; Credit Counseling Services are not free, nor Non-Profit, how they've manipulated the public (for marketing purposes) and, government (for financial purposes) into thinking their services are Non-Profit is beyond us, and almost genius (in a deceptive way).
Credit counseling services enroll their clients into what is known as a Debt Management Program, the program elongates anywhere from 3-5 years. During that time your basically on financial probation, your payments decrease minimally if at all, did we forget to mention the program last 3-5 YEARS, that sounds promising. Not only did the credit counseling service lure you into their program by claiming Non-Profit, but they also gave you a 3-5 year debt sentence, as if you committed a crime.
Consolidation Loans
A Consolidation Loan is one big loan to payoff a bunch of smaller loans. Its useful to some, but can be dangerous as well. Consolidation loans are helpful to people (usually homeowners with good credit) who are financially stable and would like to organize their debts by taking one larger loan to pay off multiple loans, and debts. Of course, if your looking for a consolidation loan you're hoping to save money through a lower interest rate as well. Its one thing to use a consolidation loan to consolidate a secured loan. However, we never recommend people utilize a secured consolidation loan to payoff unsecured debt. Why put your home, or collateral in harms way to protect your credit? What it comes down to in this situation is: Whats more important your credit score, or your house? The consensus: a debtor normally feels much less stress and more organized before, he / she was juggling multiple loans with different payment, and grace periods from different lenders with different mailing addresses. So basically consolidation loans help simplify the debtors complex life, so they can focus on getting out of debt - minus the headache.
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