Debt Consolidation vs Debt Settlement

Debt Consolidation vs Debt Settlement

The average American carries around a balance of $6,375 in credit card debt alone. That is an increase of 3% from last year.  In 2017, total credit card debt held by Americans reached $1 trillion. If you have a lot of credit card debt and are looking for a quick way out, you are not alone. You’ve probably seen several terms – debt consolidation, debt settlement, and bankruptcy. These can sound similar, and each one has its unique pros and cons. We’ll look at the first two in more depth and then compare the pros and cons to bankruptcy.

What Is Debt Consolidation?

Debt consolidation takes all your debts and rolls then into one. You then take out a loan and pay off the debts. You then pay off that loan through monthly payments. In order to get a loan, you’ll probably have to have some sort of collateral. The goal is to get a reduced interest rate and lower monthly payments. Debt consolidation is best for people who are only making minimum payments.

Since most debt consolidation plans involve loans, you may have additional fees like origination fees or closing costs. Those fees can add quite a bit to your existing debt.

Contact Pacific Debt today for your FREE consultation and Savings Estimate

Debt Consolidation Pros and Cons

Pros

  • Reduce the number of bills
  • Lessens chances of falling behind on bills
  • May be able to get lower monthly payments and interest rates

Cons

  • No control of spending habits – if you don’t reduce spending you will never eliminate debt
  • Debt is not forgiven or even reduced
  • Can take 3–5 years in a debt consolidation program to eliminate debt

Types of Debt Consolidation

There are several types of debt consolidation. These include a debt management plan (DMP), balance transfer on credit cards, personal loans, or home equity line of credit (HELOC).

A debt management program includes credit counselling and education programs. They can take a long time – up to 5 years – to complete. You will learn the roots of your financial problems and how to manage them.

Balance transfers on credit cards allow you to transfer your existing balances to a lower interest card. This sounds great except that 0% balance cards are hard to get. If your credit score isn’t over 700, you probably won’t get one. In addition, balance transfers come with a transfer fee of 2-3% on the balance and an expiration date of 12 to 18 months on the lower rate. Interest rates can then increase to more than your initial card.

Personal loans can be hard to get if you have a high debt-to-income ratio. You may end up with an origination fee, a prepayment penalty, and may need to have collateral (your car, home, etc.).

HELOCs have low interest rates but your home is the collateral. If you don’t make the payments, you could lose your house. Since it is a loan, you may have to pay application fees and closing costs as well.

Does Debt Consolidation Hurt Your Credit?

Debt consolidation can hurt your credit score and report. Taking out a loan requires a “hard pull”

on your credit report. This will lower your credit score for a bit. It can lower your credit utilization ratio if you open a new credit card and transfer all your balances to it.

What Is Debt Settlement?

In debt settlement, you negotiate with your creditor to lower the amount you owe. If negotiating is not in your skill set, there are companies like Pacific Debt, Inc. that specialize in negotiating with creditors and have an excellent track record in debt negotiation services. The secret to debt settlement is that you have to stop paying your bills in order to make creditors willing to negotiate. This action can come with late fees and creditor phone calls.

Debt Settlement Pros and Cons

Pros

  • May be able to pay less than you owe
  • Last resort before bankruptcy
  • One low monthly program payout
  • Faster than Debt Management
  • No credit requirements or collataral

Cons

  • Annoying phone calls from creditors
  • Short term impact on credit score and credit report for up to 7 years
  • Possible tax consequences
  • Risk of creditor lawsuit

Does Debt Settlement Hurt Your Credit?

Unfortunately, debt settlement does come with some credit score and credit report damage. Your late payment history may stay on your credit report for up to seven years. You should consider debt settlement for debts that are very delinquent or already in collections or if you are struggling to even pay the minimum. That way the damage is already done to your credit score.

What’s the Difference Between Debt Consolidation and Debt Settlement?

The quick answer is that in debt consolidation, you take out a loan to pay off all other bills, then pay off the loan. In debt settlement, you negotiate with creditors to lower what you owe. When comparing debt consolidation vs debt settlement, take into consideration the effects on your credit score, the fees charged in each case, how long the program will last and how delinquent your debt.

Bankruptcy

Bankruptcy is a legal action to have your debt erased. Bankruptcy is a last resort. It can stay on your credit report for up to ten years. It is also legally complex and expensive. In debt consolidation vs bankruptcy vs debt settlement, always try debt consolidation or debt settlement first.

About Pacific Debt, Inc

Unlike credit counseling agencies or debt consolidation companies, Pacific Debt’s main objective is to eliminate your debt completely. If you successfully follow our program, you may be debt free in 2 to 4 years. To be eligible for the Pacific Debt settlement program, you must have more than $10,000 in unsecured debt

Pacific Debt, Inc is accredited with the American Fair Credit Counsel and is an A+ member of the Better Business Bureau. We rate very highly in Top Consumer Reviews, Top Ten Reviews, Consumers Advocate, Consumer Affairs, Trust Pilot, and US News and World Report.

For more information, contact one of our debt specialists today. The initial consultation is free and our debt specialists will give you all your options.


Pacific Debt has helped thousands of people reduce their debt. Since 2002we’ve settled over $200 million in debt for our clients. Contact us today to see how we can help.


How Does Debt Consolidation affect your Credit Score

How Does Debt Consolidation Affect Your Credit Score

What is Debt Consolidation?

Debt consolidation combines most of your debts into one loan with a lower interest rate. It allows you to consolidate your monthly payments and hopefully allowing you to get debt-free sooner.

There are several ways to consolidate your debt. You could do a balance transfer credit card, take out a personal loan, borrow from your retirement account or against your home’s equity. You can also work with a debt consolidation company.

There are other options than debt consolidation. Pacific Debt offers debt settlement options for people with more than $10,000 in unsecured (generally credit cards) debt.

For more information on both debt consolidation and debt settlement,
talk with one of our debt professionals.

Does Debt Consolidation Hurt Your Credit Score?

Debt consolidation hurts your credit score in the beginning. Before getting a loan or getting a new credit card, you will have to have a “hard” credit check. This generally lowers your credit rating by a few points on each inquiry. Before you apply for new credit, research the different loans and ask for quotes based on “soft” credit checks. You can make an informed decision and limit the number of hard checks.

Opening the new account will also lower your credit scores for a short time period. However, as you pay off your debts on time and the account age, your credit score will improve. As you pay off your debts, keep some of the oldest credit cards open (and debt-free) to improve your credit history.

Should I Consolidate My Debt?

There are good reasons to consider debt consolidation. By lowering interest rates, you’ll save money. Just make sure that balance transfer fees don’t eat up the savings.

Rolling many debts into one debt can make your life simpler. If you’ve been plagued by missing or late payments, you may save money by avoiding penalties. Not having missing and late payments will help your credit score. Payment history makes up 33% of your credit score, so a better payment history is important.

A lower-interest loan will let you put more money toward the principal instead of interest fees.

For more information, talk with one of Pacific Debt’s debt professionals.

Where Do I Start?

    1. There are several strategies that make debt consolidation work.
      1. Have a plan: transferring debt around without paying it off won’t get you debt free or improve your credit score.
      2. Make certain that your consolidation loan will save you money, get you out of debt, and raise your credit score. Take fees into consideration.
      3. Investigate several options
        1. Balance transfer credit cards – these come with fees, so double check them to make sure that any interest savings aren’t eaten up. Check the time limits on paying off your transfer. The interest rate may increase dramatically after that time limit. Promo dates are generally between six and 24 months. PAY OFF your transfer before that date. If you cannot, this may be a terrible idea. Know the payment due date!
        2. Personal loans – Lower interest rates can help you pay off higher-interest credit cards. Shop around and ask for quote based on soft credit checks. Double check the terms as the interest rates may be very high.
        3. Retirement account loans – Talk with a professional accountant before doing this. There are severe tax penalties for not paying back a retirement account loan.
        4. Home equity (HEL) or line of credit (HELOC)- If you own a home with equity (you owe less than you can sell the house for), investigate this type of loan. You will need to have more equity than you do debt for this to work in your favor.  Be aware that if you do not pay your home equity loan back, you can lose your house.

Pacific Debt can help you understand your options.

What Should I Expect?

Expect a hit on your credit score, although you can limit the effect with soft credit checks. If you pay off debts, stop missing or making late payments, and then pay off your new loan, you should see improvement in your score over time.

If you have questions, Pacific Debt may be able to help you understand your options.
However, Pacific Debt is not able to offer legal advice or answer tax questions.

References
https://www.creditkarma.com/advice/i/how-debt-consolidation-affect-credit-score/
https://www.lendingtree.com/debt-consolidation/does-debt-consolidation-hurt-your-credit-score/
https://www.nerdwallet.com/blog/finance/consolidate-debt

Our Debt Specialists can help you explore your alternatives to bankruptcy, including debt consolidation and debt settlement options.

FREE CONSULTATION

Disclaimers

We are not lawyers and are not giving legal advice. We strongly recommend speaking to a professional before making any decisions.

5 ways to get debt relief from credit cards

5 Ways to Get Debt Relief from Credit Cards

Credit card debt is a problem for many Americans. For many people keeping up with monthly credit card payments is increasingly difficult. Causes vary. An illness, job loss, low income, or poor spending habits may be at the root. Spending more than you earn is very easy to do, especially with the convenience of a credit card.

If you cannot make your monthly credit card payments, act immediately! It’s easy to get caught up in increasing debt. You may not be able to break free without the help of a debt relief professional.

What types of debt relief help are available? We’ll discuss some options that may help you pay off debt. Hopefully, you can use these options to pay off your debt and start enjoying a debt free life.

What is Debt Relief?

Debt relief can come in the form of debt settlement which is the ability to negotiate or settle, your loan amount with the creditor. You may be able to lower the interest rate or even eliminate your entire debt.

Your situation is unique, and no one method fits everyone. Explore your options carefully and pick the one that makes the most sense for your situation.

Get a Free Consultation and find out how our Debt Settlement Program can start helping you live a debt free life today!

What Are My Debt Relief Options?

  1. Make Your Monthly Payments – Use our Credit Card Interest Rate Calculator to see exactly how much you’ll be paying on interest and principal.
  2. Debt Settlement – negotiate a lower balance on your debt amount
  3. Debt Consolidation – taking out a loan to pay off other debts
  4. Debt Management – working with a credit counseling agency
  5. Bankruptcy – a legal remedy to settling out of debt. Make sure to consult a lawyer in your area for more information

The last four options come with credit consequences on your Fico score. However, not paying your debt on time may also result in negative credit consequences. The biggest benefit of paying off your debt is that you will be able to rebuild your credit later. You can improve your credit score with effort and learn better money management skills.   

There are several types of debt that cannot be eliminated or settled. These include child support, student loans, and other secure loans.

What Do Debt Relief Companies Do?

Debt relief companies negotiate on your behalf with your creditors to help settle your debts. The debt specialists have worked with thousands of creditors. They know which creditors are willing to work out solutions and which are completely unwilling to settle.

Debt specialists know state and federal laws that govern lawsuits, collections, and statutes of limitation. Your debt specialist will guide you through each step of the process. The credit repair program takes two to four years and you’ll be in contact with your debt specialist at least once a month.

Once your debt is relieved, a reputable credit repair company will help you repair your credit rating. A good credit score makes it easier to buy a car, get a mortgage or even get better rates on credit cards and loans.

Steps Debt Relief Companies Take

  1. Your debt specialist will access your free annual credit report from Equifax, TransUnion, and Experian. You are entitled to one report each year, but they can be confusing. A debt specialist will guide you through the report.
  2. A debt specialist will go through your budget with you to see how much you can afford to pay each month
  3. Your debt specialist will work with your creditors to help settle your debts. They may be able to lower interest rates, settle on a lower amount, or even get the entire debt erased.

Who’s the Best Debt Relief Company For Me?

Pacific Debt, Inc has an excellent track record with credit repair. In business since 2002, they are in downtown San Diego. Pacific Debt has earned an A+ rating from the Better Business Bureau and is a BBB Accredited Business. They have settled over $200 million dollars in consumer debt. BestCompany.com ranks them as one of the best debt settlement companies.

Pacific Debt offers a free consultation. Their debt specialists will perform an in-depth analysis of your debt and advise you on your options. They ensure that you understand all options and all the program details. Depending on your financial situation, Pacific Debt works with you to be debt free in one to two years. The company does not make money unless your debt relief program works for you. You have nothing to lose and every to gain by contacting Pacific Debt for your free consultation.

Read real reviews from people who have used Pacific Debt to settle their credit.

A Certified Debt Counselor can help you from drowning in debt!

FREE CONSULTATION

How to stop drowning in credit card debt

How To Stop Drowning in Debt – A DIY Guide

Learn How To Stop Drowning in Debt Yourself

People fall into debt each day – it might just be a national epidemic. The problem with being in debt is that once you’re in, you’re in! It’s very difficult to get out of debt because it can be a financial trap.

If you can’t keep up with your credit card payments, or miss a payment, your credit will take a nose dive right into the toilet.

Cash is king, but good credit is just as important! Most people do not have cash reserves for a big purchase and must depend on credit. This is where good credit can be a godsend. Let’s discuss the necessary steps to take to keep you from drowning in debt.

Figure Out Your Debt Situation

Your first step in getting out of debt is to identify all your debt.

  • Get a copy of your credit report from annualcreditreport.com or creditreport.com. This gives you a list of all your creditors
  • Figure out the current debt amount, interest rate, monthly payment, due date and any other important information
  • Record all this so it is very clearly laid out

Once you have all the information you can make an informed decision. It might be depressing but it is important to know.

Most experts encourage you to pay off the highest interest debt first. Others suggest paying off the smallest debts first. Sometimes paying off the smallest debt makes you feel like you are making progress. It depends on your unique financial situation.

You may be able to refinance or renegotiate terms, interest rates, and other debts. Many people are drowning in student loan debt. Student loans are difficult to renegotiate, but refinancing can be done.

If you need help learning what your interest charge on purchases will be, try our finance charge calculator.

Start a budget

Next, find out where all your money is going. Write everything down. Include where your cash is going, where you use your credit card, and what you can eliminate.

This is the basis of your budget. Budgeting doesn’t have to be a chore, but it is the only way you are going to get out of debt.

Your budget should include necessary and discretionary expenses. Your budget should consider the following, although you may not have expenses in every category. Don’t forget annual expenses like car registration.

  • Housing
    • Mortgage/Rent
    • Property Taxes
    • Household Repairs
    • HOA Dues
  • Utilities
    • Electricity
    • Water
    • Heating
    • Garbage
    • Phones
    • Cable
    • Internet
  • Groceries
    • Food
    • Alcohol
    • Toiletries
    • Cleaning Supplies
  • Personal Expenses
    • Gym Memberships
    • Hair Cuts/Salon Services
    • Cosmetics
    • Babysitter/Child care
    • Child Support
    • Alimony
    • Subscriptions
  • Transportation
    • Fuel
    • Tires
    • Oil Changes
    • Maintenance
    • Parking Fees
    • Repairs
    • DMV Fees
    • Vehicle Replacement
  • Healthcare
    • Primary Care
    • Dental Care
    • Specialty Care
    • Medications
    • Medical Devices
  • Clothing
  • Gifts
  • Emergency Money
  • Entertainment Money
  • Household Supplies
  • Insurance
    • Health Insurance
    • Homeowner’s Insurance/Renter’s Insurance
    • Auto Insurance
    • Life Insurance
    • Disability Insurance
    • Identity Theft Protection
    • Longterm Care Insurance

Figure out how much you spend in each category. Be honest. If you eat out every day, include that! Now you have a good picture of where your money is going and how much/where you are spending it.

Your next step is to decide necessary and discretionary expenditures. You may have to give up eating out, drop a gym membership, or stop buying coffee for a while. It won’t be forever.

See if there are places you can cut down your necessary expenses. Could you get a less expensive car, move to a new place, or save money on other expenses?

Do What You Can Yourself

  1. Consider refinancing debt
  2. Call credit card companies, etc. and renegotiate your interest rates
  3. Drop or decrease expenses
  4. Consider consolidating debt through a home equity loan
  5. Use cash to avoid the temptation to whip out a credit card
  6. Wait 24 hours before purchasing a non-essential item
  7. Add another/better job if possible

Get Professional Help Paying Off Debt

A debt elimination agency may be able to help you set a budget, renegotiate interest rates, and teach you how to manage money more effectively.

Ask about

  • Services offered – look for a range of services
  • Free educational information
  • Developing a plan for the future
  • Fees/Contributions – get them in writing
  • Contracts or Agreements
  • State Licensing
  • Counselor qualifications and how they are paid (commission, etc)
  • Security of personal data

Getting into debt is easy. Paying off debt is what takes work and effort. Following these suggestions can definitely help you to stop drowning in debt.

A Certified Debt Counselor can help you from Drowning in Debt!

FREE CONSULTATION

Financial Anxiety

Financial Anxiety and How to Battle It

Financial Anxiety

Current internet articles, posts, and headlines are filled with descriptions of the financial issues troubling many Americans. Layoffs, tax debt, and bankruptcies can add to the financial stress, and according to the American Psychological Association (APA), it’s taking a huge toll on our health.

While the country continues to recover from the recession, many of us still feel the weight of crushing debt. Unfortunately, prolonged financial stress can negatively affect our physical, mental, and emotional health. The good news is that help is available. Options like relief from tax burdens, debt management programs, and budgeting strategies can provide hope for anyone feeling the pressure of financial stress.

Managing that stress and finding support are essential to a journey towards financial wellness. Here are some tips for battling financial anxiety:

Know Yourself

No matter what you are going through, there is one person that you can always count on — yourself. Money problems aren’t necessarily your fault. However, your attitude will be one of the greatest determining factors for success. When you are surrounded by debt, with no end in sight, you can do two things: you can worry and stress about your problems, or you can embrace the experience as an opportunity for growth and learning.

Think about your financial problems as financial bloggers think about their money problems. They look at their finances as a resource for learning; once they learn what they need to thrive, they turn around and teach others. This learn-then-teach attitude is a healthy way to approach debt and desperation. Your debt is both an obstacle to overcome and an opportunity to become financially savvy.

Look for Support

Dealing with financial issues is stressful. However, perhaps the most difficult part is accepting help (either financial or emotional) from those around you. The APA lists social support as one of the most useful tools in the journey to battle financial anxiety. The APA recommends the following strategies to grow your support network:

  • Cast a wide net. Nurture relationships with all types of people, e.g., co-workers, friends, family, religious leaders.
  • Be proactive. Be confident enough to approach others about your struggles.
  • Take advantage of technology. Use apps, blogs, and other resources available to reach others. Find the best budgeting apps to increase your savings and create a plan to escape your debt.
  • Follow your interests. Use your hobbies to connect with others.
  • Seek out peer support. Blogs are a great way to connect with people in the same situation.

Help Others

Teaching others what you learn can be an important step on your path to financial peace. Consider sharing tips, strategies, and experiences through a blog. You will discover two things when you seek to help others learn how to establish financial goals: support can be found by supporting others, and the fastest way to learn is to teach. And who knows? You may even find another career path offering online financial advice.

Aggressively Seek Financial Freedom

The options for escaping debt are as numerous as the avenues for falling into debt. You should be seeking any and all viable options for relieving your financial burdens. Debt management and debt consolidation are feasible options for those with considerable debt. Budgeting, investing, job-seeking, raise- or bonus-seeking, and side hustles are all good ways to save.

Your journey to financial wellness will likely start out slowly. Yet, if you use the right money-saving methods, then before you know it, you’ll be racing down the road to a brighter financial future.

Get Budget Help With Budget Apps

What Are The Best Budgeting Apps of 2018?

The Best Budgeting Apps of 2018

Most people believe in the power of budgeting; some people think it’s just an excuse to avoid the real solution. Richard Quinn, a retired VP of Compensation and Benefits with over 50 years of experience in managing pension and 401k plans for a fortune 200 company, offers some profound advice about budgeting. One particular thing he mentioned about budgeting apps will strike a chord with most budgeting experts. According to Quinn, “Nobody needs an app. They don’t even need a budget. They need to do a few simple things: Take their net pay and save 10% or more, throw away all credit cards, buy what you can afford only and spend all you want after fixed expenses. No budget needed.” What Quinn suggests may shock some at first, but it makes sense. Essentially what he is asking is for you to be smart with your money. Stop spending it first and start saving it first.

Yet, there remains a virtue in budgeting apps that might be overlooked in Quinn’s suggestion. What a budgeting app does is it disciplines and trains you to be the type of spender that Quinn envisions. If you have already achieved a high level of self control, you don’t need an app; in that case, as Quinn says, you don’t even need a budget. For the rest of us—those who are still learning to spend wisely and save regularly—we need a bit of help. Here are the best budgeting apps for those who need extra help in 2018.

YNAB (You Need a Budget)

Budgeting apps come in all shapes in sizes. The best one will mostly depend on your personal taste, but for Larry Ludwig, Founder of Investor Junkie, “YNAB is the clear winner.” Ludwig explains that YNAB is his favorite for its simplicity and lack of confusing “bells and whistles” and notes that “for a first time budgeter, it’s important not to intimidate them with a complicated user experience.” The app’s website explains its method in three simple steps: “Get some dollars, prioritize those dollars, and follow the plan.” Those who are in debt are often swamped by numbers and projections of how much they need to spend or save. YNAB is a simple solution to get you back on track or stay on track.

Honeyfi

One of the coolest new budgeting apps is called Honeyfi, made for not only helping one person manage finances, but helps two at the same time. Most married couples have a hard time negotiating spending limits, individual allowances, and other finance rules. In the words of Sam Schultz, Co-Founder of Honeyfi, the free app seeks to solve that problem by helping “couples save more money, pay down more debt, and make better decisions.” Featured in HuffPost, MSN, and Entrepreneur, Schultz explains that the app does “spark a lot of communication IRL” and that it also allows “users to decide how much to share with their partner for each account (balances and/or transactions).” If you’re a couple looking to manage not one, but two different budgets, Honeyfi is a great option.

Mint

According to Brian Bartold, a licensed insurance professional with VFG Associates in Livonia, MI, the best overall budgeting app is Mint. This app lets you link “everything to the app including your credit cards, bank accounts and any brokerage or IRA accounts you have.” Though it might not have the speciality in helping couples like Honeyfi, Mint allows for more in-depth budgeting. Bartold also explains that Mint “also works with TurboTax and QuickBooks, two very popular programs for managing your taxes and bills.”

Even though Mint isn’t quite as cut and dry as other apps, it does simplify more complicated budgeting issues, like losing a job or going through a divorce, in a very helpful way. This simplification is possible because the app puts all financial processes in one place. Bartold explains this, saying “you may work with an insurance agent, stock broker, someone in your 401(k) department, all while doing stuff you are doing on your own. All those things are not being managed in one specific area. Using an app that combines everything you’re doing can make planning and budgeting simpler.” Mint is a great option for those with more money to budget and more financial issues to maneuver.

PocketGuard

The best part of the PocketGuard app is that it lets users link directly to their bank accounts so that all transactions and balances are current. As opposed to many other budgeting apps, PocketGuard is more focused on spending projections than it is past history. Because of this, the app can let you know how much pocket change you have to spend on any given day or even month. The app is a great alternative to Mint or YNAB if those apps aren’t to your liking.

As Richard Quinn pointed out, the best budgeting system available is your own persistence and determination. The purpose of a budgeting app should be to make your savings methods become habitual. Whether it’s Mint, PocketGuard, Honeyfi, YNAB, or some other budgeting app, make sure you are learning self-sufficiency and responsible spending. The most efficient budgeting tool should be your habits.

Meet Christopher – Now Debt Free Thanks to Pacific Debt

Name: Christopher

Age: 35

Location: California

When did you enroll in our debt settlement program and how much debt were you facing? How did carrying all of that debt make you feel?

We enrolled March 2016 in Pacific Debt’s program, with $23,176 in debt. Carrying that much debt made it almost impossible to make ends meet. We could make only minimum payments, and would immediately be checking balances and available credit to see which card we could use next. Purchases were for necessities, not fun or frivolous items. We lived credit card limit to credit card limit.

Christoper, Debt Free, Pacific Debt

Tell us about your journey through the Pacific Debt program? Are there any special team members you would like to recognize?

Our journey through Pacific Debt’s program was worry free and easy. We were contacted immediately whenever something was needed, and we were informed of every step taken along the way. Brian LoBianco was amazing to work with! He took care of our account and our debts in the fastest way possible, never neglecting quality service, and ended up getting us great settlement agreements with our creditors. He was professional at all times, and we could tell that he cared about us and the assistance he provided.

How does it feel to be debt free? What are your financial goals moving forward?

It feels amazing to be debt free! One thing this program allowed us to do is learn how to live without using credit. By not being able to use our cards, and by lightening the load that we carried, we were able to manage our budget in a credit free way, realizing what we really needed, and what we could do without. Our financial goals are to continue to live completely free of revolving debt, not having to worry about paying high interest for what easily could have been the rest of our lives doing what we were doing before.

We know we are not perfect. What suggestions or advice would you offer to help us improve our program? All advice is welcome.

I honestly was completely satisfied. I will say, the first 6 months to 1 year of creditor/collector phone calls was nerve racking. Understanding that things had to get worse before they could get better was key, though it was still a time that worried us. Pacific Debt made sure we understood the process, and what to do with those calls and contacts, and that made all the difference. We knew Pacific Debt was in our corner the whole time.

Couple struggling with bills

Not All Debt Consolidation Companies are Equal – 5 Important Question

Whether you are looking for help with debt consolidation, credit counseling or debt settlement, it is important to know that not all debt consolidation companies are created equal.

What separates one company from another? Here are 5 important questions to ask when evaluating a debt consolidation company:

  • How long have you been in business? Let’s face it, you don’t want to trust your money to an overnight start up and be some company’s Guinea pig.  At Pacific Debt, we have been helping consumers since 2002 and have settled thousands of debts representing hundreds of millions of dollars.
  • Is the company highly rated by the Better Business Bureau? Do you really want to trust a company with an F rating and loads of complaints? Companies that are Accredited Members of the BBB make a commitment to marketplace ethics and are required to resolve consumer complaints to maintain their memberships. Remember, all companies get complaints, it is how a company responds and addresses those that separates the good from the bad. We are proud to say that Pacific Debt is an Accredited Member of the BBB of San Diego with an A+ rating.
  • Is the Company a member of any Industry Trade Associations? Trade associations often set many of the standards in the industry and their members are required to meet minimum requirements to maintain membership. For instance, in the debt settlement space, the American Fair Credit Council (AFCC) requires that each Accredited Member company undergo an audit once per year to ensure that member companies are not charging upfront fees and are complying with all AFCC standards. At Pacific Debt, we are one of only 13 Accredited Members of the AFCC.
  • Will you receive personal service? Some companies treat you like a number and basically have huge call centers designed to answer your calls, but rarely offer you any personal dedicated service. At Pacific Debt, we created a system where all of our clients get a dedicated Personal Account Manager who is there to guide them through the process from the first settlement until completion. Our Account Managers get to know our clients on a personal level so that you don’t have to deal with the aggravation of explaining your situation over and over again to a different call center representative each time you call.
  • What are others saying? If you scour the Internet you can find all sorts of review sites and comments on social media. If clients have a good experience, or a bad one, they like to talk about it online. In fact, due largely to our great client reviews, Pacific Debt is the #1 Ranked Company on BestDebtCompanys.com .  Our average user score of 9.7 on the BestDebtCompanys site is a direct reflection of our commitment to customer service and delivering value to our clients.

The bottom line is that you have a lot of choices when it comes to selecting the right debt consolidation company and the reality is that not all debt relief companies are equal. However, by asking the right questions and doing your homework, you can find the right option and company for you.

Best Debt Consolidation Companies

Pacific Debt Inc. -best debt consolidation & debt settlement company

Searching For The Best Debt Consolidation Companies?

With several different debt relief strategies available to consumers, it is very confusing to figure out exactly how to best resolve a specific financial situation. Often times, consumers are not even sure what they should be searching for. As a consequence they end up Googling generic search terms like Debt Consolidation or Debt Management. These terms can actually be used to describe both Consumer Credit Counseling and Debt Settlement, which are two very different services.

Here at Pacific Debt we receive a lot of inquiries from consumers who found us by typing Best Debt Consolidation Companies into Google. Even though we are a Debt Settlement Company, we do help consumers consolidate their debts into one smaller monthly payment. The payment is placed into an escrow savings account that can eventually be used to negotiate and settle an outstanding debt for less than the full balance due on the loan or credit card.

If you found us but were actually looking for information on Debt Consolidation Loans please see Best Debt Consolidation Loans. If you are struggling to make your monthly payments and your credit is less than perfect, you will very likely find it difficult to secure a consolidation loan to pay off your credit cards.

Many of the consumers who have found us while searching for the best debt consolidation companies, where actually looking for Consumer Credit Counseling programs. However after comparing the payments of the Credit Counseling Programs to our Debt Settlement Program, most of them opted to work with us. In many situations, debt settlement is simply a superior strategy to credit counseling.

Whether or not our debt settlement strategy is right for you will depend on your specific situation. In general though, you will be out of debt several years sooner with a much smaller monthly payment as compared to a Consumer Credit Counseling approach.

Making a decision to consolidate your debt with either a credit counseling or a debt settlement program can be tough. It is important to do the research and explore both options before making a final decision. For a side by side comparison, contact the Professionals at Pacific Debt and take the first step down the path to debt freedom.

Best Debt Consolidation Loans

Best Debt Consolidatin Loans

If there was ever a great economic climate to get the best debt consolidation loans, this is definitely it. Well, sort of…

Currently, we are enjoying some of the lowest interest rates of all time, which is certainly important when looking to consolidate credit card debt at a lower interest rate.

However, if you are currently shopping around for the best debt consolidation loans, you have no doubt discovered a major problem. The banks aren’t lending money for risky unsecured loans to consumers who have high debt and are struggling with their monthly payments.

Sure, if you have great credit, low debt, and plenty of cash you should have no problem getting a great loan, but for the rest of us, the borrowing window has been slammed shut. Great loans are available mainly to people who don’t really need them and not to those among us who desperately do.

The Best Debt Consolidation Loans Available Might Not Actually Be Loans At All

If you find yourself in a situation where you are struggling to keep up on your payments and cannot find any institution that will lend you money at a great interest rate, a debt settlement strategy is certainly an approach that can be explored as an alternative to a debt consolidation loan.

Ultimately, the main purpose of getting a loan is to pay off your debt, and if a low-interest loan is not available, a debt settlement will likely get your debts paid off faster at a much lower overall cost than a loan would anyway.

Rather than simply lowering your interest rate, a professional debt settlement company has the ability to negotiate with your creditors to potentially reduce your principle credit card balances and create a program to have your debts resolved in just a few short years.

As with anything, there are both pros and cons to using a debt settlement approach. However, if your search for the best debt consolidation loans has resulted in nothing but rejection after rejection, you certainly should take a few minutes to explore a debt settlement option.

Whether or not it is the best solution really depends on the financial circumstances of each individual consumer. For a detailed explanation of how a debt settlement strategy works, contact the professionals at Pacific Debt for a Free Debt Reduction Estimate.

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