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"Stand fast therefore in the liberty, by which Christ has made us free, and do not be entangled again with a yoke of bondage."

Galatians 5:1

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About You

YOUR DEBT SITUATION – YOUR OPTIONS

 

YOUR DEBT SITUATION:

 

Your secured debt, your home, has always been necessary and manageable. So were the secured loans for your car(s). However, your unsecured debt has crept up and up. Perhaps it was an occasional purchasing indulgence (like a birthday of Christmas), but most likely it was “stop gap” expenditures (like a car transmission, or uncovered medical expense).  Either way, the debt piled up, you were distracted by everyday life, and the debt was never “caught up”.

 

Now, because of additional financial tribulation, a job layoff, a sudden illness, business failure, student loan or tax bill coming due, you missed a payment. Suddenly you find out about “the secret of the small print” in that credit card contract nobody reads. But the new, enormous late fees or over-limit fees are not the worst consequence, however. Now you find that your interest rate went from 10% to 29%. Keeping up with minimum payments is even harder! As a matter of fact, your budget is now “in the red” each month and you are “sinking slowly (or rapidly) in the quicksand” of debt.

 

How did I get here, you ask (or your spouse asks!)? Life is tense. The family is less patient. Everybody is stretched to the limits of their good character, and the devil sees a crack in the armor! (Of course, he has probably been working in the background all along!)  The “blame game” or the “name game” begins.  Perhaps you have received a couple of the horrendous collection calls! Whatever the dysfunction, you find the family economically “lame” and unable to prevent a downward spiral into financial failure.

 

You say, “I never intended to be here!  I’m not happy. I don’t want to live like this. We CAN’T live like this!”  You need a life-line, a rescue, and you need it now! Is there a debt consolidation technique that can achieve a settlement and elimination of your burdensome debt?  So, you look around to what your options are, and you ask, “Who can I trust?” 

 


When you are stuck in debt that you can no longer afford... you have several options. The examples below illustrate just how effective our debt negotiation service is, and what to expect.  

GET A SECOND JOBWith this option, your family time, church time, and social time are lost.  Besides, you look at the numbers and, with the new high interest rate on your debt, you realize it will take you 20 YEARS of minimum payments to retire the credit card debt! (based on $10,000 at 19% interest and a minimum monthly payment of 2.4% of the principal).  At the end of this solution you will have a new large debt, a funeral!

 

GET A DEBT CONSOLIDATION LOAN:  Putting all your debts into one debt and creating a lower monthly debt-service payment (which usually isn’t low enough) sounds like a good idea. But by the time you try this, your credit score or total credit profile won’t allow you to qualify for the loan. Besides, banks very rarely want to take on all the other creditors’ risk just to help you out. This type of loan is almost never granted.

 

REFINANCE YOUR HOME TO GET EQUITY CASH:  The conventional wisdom is “Don’t make an unsecured debt into a debt secured by your home!” So, if done, it must be done with a discipline to NOT run up new debt (and the statistics are that 75% percent of people fail at this). Also, the refi must create a substantially improved monthly budget cash-flow. Also, it needs to have a flexible escrow plan, so the debts can be negotiated down before payment. As it turns out, usually, people in trouble can’t qualify for a good refi rate (if they can qualify at all), so the option is rarely used.

 

DO NOTHING:  Right!  As if sticking your head in the sand like an Ostrich could help! No, leaving your future to the creditors will just bring an ever-increasing deluge of collection activity, judgments, garnishments and bankruptcy (and maybe divorce as a side-affect!).  To change your situation, you must change your actions (and for continued success, change your financial lifestyle). Something must change and it must be done now!

 

Example:  Based on $20,000 in debt.

Struggling to make minimum payments will cost over 300% of your principal ($20,000) over 10+ years ($60,000+) with never-ending interest, late fees, over-limit fees, collection fees, lawsuits, judgments, executions and liens that must be paid before a home is bought or sold.

 

 

CCCS – Consumer Credit Counseling Service:  First, many banks look at this entry on a credit report as a “Debt MANAGEMENT Plan” and treat it as if it were a Chapter 13 bankruptcy! That kind of credit burden is what you are trying to stay away from! This plan cannot lower your monthly debt-service payment enough to make your budget work. It takes about twice as long to work as “Debt Settlement” (60 months instead of 30), and it costs twice as much (payments totalling140% of your principal, instead of the 65% cost of Debt Settlement). Why take twice as long, pay twice as much, suffer greater credit history damage, and fail because the monthly budget still doesn’t work? Besides, these programs were invented by the credit card companies and work more for them than they do for the debtor.

 

Example:  Based on $20,000 in debt.

Pay 100% of principal ($20,000), Interest (10% avg.), fees per/mo...  ALSO: credit score effected for 5 years; late fees can still occur; dropped from program (no emergency flexibility) for missing a payment with all interest added back

$460  monthly payment (usually 2.3% of total amount owed)

    60   months to plan completion (5 yrs.)

$27,600  total paid (debt  X  140%)

 

 

BANKRUPTCY:  "Life sentence" of higher interest rates, denied loans, affect on employment, ability to rent, etc.... depressing.   Not a very good way to reduce stress and IMPROVE your financial strength.

 

Chapter 7 (zero pay) This, frankly, is not a welcome choice of the clients that come to Freedom Financial Law for help anyway. Our clients feel a moral responsibility to do the best they can, and not to give-in to the temptation of paying nothing at all. Besides, the new bankruptcy law restricts the availability of this option (and forces people into Chapter 13).

 

Chapter 13 (5 year best-effort pay). Bankruptcy (of any kind) is a “credit life sentence”. That is, though it may come off your credit record in 7-10 years, most credit applications today ask, “Have you EVER filed bankruptcy?” To say “No” is a lie, not to mention civil fraud or possibly a federal crime. So, having to disclose a bankruptcy will probably mean you will NEVER again get the BEST interest rate available for whatever you are trying to buy. So, you end up paying more in higher interest in the future, than you saved today! Also, you still have to pay for an attorney, go through depressing court proceedings, and the Bankruptcy Trustee will still take a percentage of the money you pay as a mediation fee. Lastly, the new bankruptcy laws can give creditors MORE access to your assets than a lawsuit judgment would! You knew you didn’t want to go bankrupt, now you really know why!

 

Example:  Based on $20,000 in debt.

(Chapter 7) Forfeit property, court hearing, NO CREDIT, Legal and other required fees: around $2000 or more.

(Chapter 13) Same as Chapter 7 (legal and other required fees of around $2000, or more), plus you pay what the court orders over 5 years ($5,000-$15,000)and your case may be dismissed if you miss a payment!  

 

 

OUR DEBT SETTLEMENT A well planned Debt Settlement Program can be a win-win solution for the debtor and the creditor, but it takes the expertise of trained administrators and negotiators. The good news is that no NEW money is required of the debtor! The program efficiently uses the money a family has already been trying (unsuccessfully) to eliminate the debts with.

Creditors like this program because the debt is not voided through Chapter 7 Bankruptcy, they don’t have to administer a long payment plan like a Chapter 13, but they still get about the same portion of their money through a lump-sum settlement within a reasonable time.

Debtors like this program because they don’t have to go bankrupt, the 24-36 month program allows them to eliminate their debt while “doing the best they can” despite their hardship, and it provides a foundation for rebuilding future financial strength. Usually, all unsecured debt can be eliminated (including all fees) for about 65% of the total debt owed. And best yet, the debtor’s credit strength can be restored to “above average” within 12 months after program completion.

 

Example:  Based on $20,000 in debt.

Pay only a fraction (40% average) of the principal ($20,000), one simple monthly "settlement deposit".

              $400  monthly “settlement deposit” (2% of total owed, or less )

    33  months to plan completion (33 months)

$13,200  total paid (debt  X  66%), possibly less!

DURING PROGRAM

  • Immediate increase in available spending money
  • Collection calls handled by negotiation agent
  • Program designed to avoid litigation and/or judgments.
  • Have “emergency flexibility” of payments during program
  • After settlement, negative entries on credit report (like lates, charge-offs, etc) are replaced with “Paid-Settled” entry on report

AFTER PROGRAM you will have established savings habits and …

  • Freed up income to save for emergencies and purchases
  • Have “Credit-worthiness” (ability to repay) and prime rates too
  • Have a higher FICO (credit score) than you started with
 

Contact us today for more information about our Debt Negotiation and Settlement Plan, and a complete list of easy steps.  It's easier than you think!

INQUIRIES / ENROLLMENT  888-386-7703      [email protected]

Christian debt consolidation, Christian debt negotiation, Christian debt settlement can save you from bankruptcy.  Our Christian debt negotiation and settlement services are designed to consolidate and eliminate your debt.