The holidays are over and bills are rolling in. You spent way too much money Christmas shopping and your credit card debt has reached critical limits and you are finding it increasingly difficult to pay your bills. If this is you, you’re not alone!
Most of us rack up ridiculously high credit card balances during the holidays. Now that the new year nears, you’re seeing the full financial aftermath of Christmas.
Call 877-722-3328 and speak to our debt specialists for FREE!
This is a great time to start on your most important New Year’s resolution- reversing your credit card debt and lower interest rates. Get started now with a debt relief company like Pacific Debt. It can’t happen fast enough!
The good news is that you have several debt reduction services at your disposal. The bad news is that there is no quick-fix and options may come with negative (but short-term) consequences to your credit score.
What is a Debt Reduction Service?
A debt reduction service, or debt relief company helps you find legitimate solutions to effectively reduce debts. There are three basic types of services – consumer credit counseling, debt consolidation, and debt settlement. Only one, debt settlement, helps you negotiate with creditors to reduce debts by up to 50%.
What are the Different Types of Debt Reduction Services?
There are three main approaches to debt reduction services. Keep in mind that none of these are perfect and each may have a negative effect on your credit rating. Reasons for debt maybe a student loan, medical bills, or high credit card interest rates.
- Consumer Credit Counseling – Consumer credit counseling companies help you investigate debt management plans that help you reduce debt. They may help you qualify for these debt relief programs too. Credit counseling is not a debt reduction program because most agencies usually only help you reduce your future interest.
- Debt Consolidation – Debt consolidation consolidates debts into one easy monthly payment. It doesn’t really reduce debt, it just revises your account structure. In most cases, debt consolidation actually increases the term length, so you end up paying more.
- Debt Settlement – Debt settlement works directly with creditors to settle debt for less than you owe. As part of the program, you accrue money in a 3rd-party escrow account. Once you have a certain amount in that account, debt settlement experts negotiate on your behalf to decrease your debt by up to 50% and pay off that debt completely. Debt settlement isn’t a quick fix. It usually takes from 2-4 years to complete.
Our debt settlement specialists will guide you through the process and be in regular contact to help you through this difficult and confusing process. You have the responsibility to put aside money and forward all collections notices and bills and any harassment details to your debt settlement expert.
The Pros of Using a Debt Settlement Program
Using a debt settlement program can help you in many ways. The pros include:
- Settling your debt for less than you currently owe. In most cases, the debt settlement company will help you settle your debt for up to 50% of your balance, depending on the creditor and their policies.
- Guidance by a dedicated debt expert through the difficult process. In most cases, the debt settlement company has a long business history with your creditor, leading to a smoother negotiation process.
- Avoiding bankruptcy. Debt settlement is a bankruptcy alternative and is the last resort before declaring bankruptcy.
- Avoiding the stigma of declaring bankruptcy.
- Ultimately saving money.
The Cons of Using a Debt Settlement Service
- The program isn’t quick and usually takes anywhere from 2-4 years to complete.
- The account will generally appear on your credit report as settled for less than full balance.
- You’ll probably encounter harassment by collection companies, ranging from scary phone calls to legalese-laden letters. Your debt settlement account manager guides you through this process to help make things easy for you.
- Since there are fraudulent companies, make sure you research debt settlement companies and choose a reputable company like Pacific Debt, Inc.
Who is the Best Debt Settlement Company to Work With
Debt settlement, otherwise known as debt relief, can be scary and involve a lot of legalities and headaches. We recommend that you work with a reputable company, like Pacific Debt, Inc., that has positive reviews from both organizations like the Better Business Bureau and from clients. Pacific Debt, Inc. has settled over $200 million in debt for their customers since 2002 and our ratings prove how effective our program can be.
- A+ rating from the BBB with accreditation and certification
- Ranked as one of The Best Debt Settlement Companies of 2018 and 2019 by US News and World Report
- 4.8 star rating by BestCompany.com with over 1000 client reviews available online.
For more information, talk with one of our debt specialists today.
If you are ready to reverse your debt, contact a reputable debt relief company like Pacific Debt, Inc to see if you qualify for our debt reduction program. The consultation is absolutely free and there is no obligation if our program doesn’t seem like a good match for you. You have nothing to lose.
See if you qualify for the Debt Settlement Program from Pacific Debt Inc. Start saving money today.
We can help you with information about debt management plans, consumer credit counseling, or any other questions you might have regarding your debt options.
Disclaimer: We are not attorneys or accountants and can not give you legal advice. If you have legal or tax questions, you should contact the appropriate expert.