Impact Debt Settlement FAQ on Debt Settlement and its Impact


Published on

Impact Debt Settlement shares debt settlement advice and provides FAQs about Paying Off Debt, Consolidating Debt and general debt questions. Impact Debt Settlement are experienced leaders with over 10 years experience in the Financial Services industry. Their wealth of knowledge and experience can have the positive impact you are lookng for on getting out of debt.

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Impact Debt Settlement FAQ on Debt Settlement and its Impact

  1. 1. Impact Debt Settlement on Paying Off Debt, Consolidating Debt and Debt FAQ 1) Should You Save or Pay Off Debt? What is better for both your current and future financial situations: saving or paying off debt? The ideal answer is “Both.” Yes, do both! But paychecks don’t always keep up with our bills, and it can be hard enough to do one or the other. If you are in a quandary about whether to save or pay off debt, you are far from alone. Is there a right answer? Having an emergency savings fund is essential. What if your car needs repairs? What if you are temporarily without a paycheck and need to borrow against this money? Having it there can be a tremendous relief. On the other hand, knowing that you are not going to get a staggering credit card bill in the mail is comforting. Can you have it both ways? Maybe. If you are disciplined with your spending habits, budgeting, and bill-paying, you can save and pay off debt. One of the most interesting and effective methods is to pay your credit card bill(s) weekly. Many banking sites allow you to do this online. If you do not bank online, write down the name and address of the credit card company and send a check every week. Why would you do this? If paying your bill every month is hard, how can you pay every week? If your minimum payment is $100 per month, you pay $25 a week. Sometimes just paying a lower sum is psychologically beneficial. You can afford $25 a week. And you can probably afford $30 or $35. Send in a little extra. Over the course of the month, this adds up to an extra $20 to $40 off your balance. In a year, you have paid an extra $240 to $480. This reduces your credit card debt, saves you interest, and decreases the period of repayment – if you do not add to your balance! Each week or month, make a payment to yourself. There are two thoughts on this: some people make this the first priority, and others say pay your bills first and then save the remainder. You could do it either way, but make sure you do it. It can be $10 a week at first. Just build a reserve. As you begin paying off that pesky credit card debt, you can use that money towards other bills and savings. You can - and should – save money and get out of debt at the same time. It can be a slow process but decreasing credit card debt and increasing saving account balances create a far less stressful financial situation. Make the commitment, cut out extras, and start now. 2) Should You Consolidate Debt? It is likely that you have run across ads for debt consolidation programs, especially considering the current economic situation. At first glance, these seem like the perfect solution to your debt problems. You can trade all your current, high-interest debt in for one loan with favorable terms. What could be wrong with that? It does sound ideal, and that is why many people opt for this method to pay off debt. Should you consolidate your
  2. 2. debt? Before you decide, consider some aspects of debt consolidation the ads don’t tell us. One of the most appealing aspects of debt consolidation is that you can pay your outstanding debt and have one monthly payment. This new loan will have lower interest rates, saving you money each month. Is this true? The best answer is, “It can be.” The favorable rates you see advertised are for those with higher credit scores. Chances are if you need debt consolidation, your credit score is not stellar. This means you will get higher interest rates. In addition, if you do not have a home and this is an unsecured debt, then the interest rates will be bumped up yet again. You may not be paying any less than you were before. You still have the convenience of one payment, but is that worth the money? Before deciding on anything, make sure that you are making a move for the better. Seventy percent of those who choose to consolidate debt with loans end up owing the same amount – or more. How does this happen? Let’s use the following figures for an example: say you have four credit cards with balances of $10,000, 5000, $2000, and $1500. You have a store credit card that is maxed out at $1000 and one that carries a balance of $800. That is $20,300 (which is not an uncommon amount of credit card debt to carry). You receive a debt consolidation loan for $21,000 – why not have a little extra? You pay off your cards and have a nice little bonus. But you end up using the $700 for a new flat screen television. You see a great laptop that is on sale but do not have the cash, so you just put it on the newly cleared card. It’s just one charge after all. But that one charge almost inevitably leads to another. Instead of being out of debt, you are further in than before. Debt consolidation does work for some people, but for many others, it leads to larger financial issues. Is it right for you or is there another alternative? Speak to financial experts at Impact Debt Settlement to explore your options for a debt free future. 3) Debt Settlement: Questions and Answers The impact of the debt settlement process can seem mystifying to many, but it doesn’t have to be. When you are mired in medical bills, credit card debt, and more, debt settlement can be the way out. What should you know about this process? Would debt settlement work for me? If you are committed to getting out of debt and willing to work on paying creditors in a methodical and effective way, then it can be an ideal solution to crushing debt. If you want to remain debt free, you will have to change your spending habits. If you are ready for this change, you can make debt settlement work for you and it can have a positive impact for the rest of your life.
  3. 3. What kind of debt is covered? There are basically two kinds of debt: secured and unsecured debt. Secured debt is that which has collateral attached to it, such as a car loan or mortgage. Unsecured debt includes medical bills, credit card debt, repossessed auto loans, and signature loans. These do not require collateral, and often they have much higher interest rates. Debt settlement can help you resolve unsecured debt. What do I have to do? After an initial consultation, you begin paying into a special account. You have complete control over this account. Each month, you pay a specified figure into the account. Meanwhile, your debt settlement specialists are working with creditors and collection agencies to reduce your debt. As they successfully negotiate each debt, that creditor is paid in full from the account. This process continues as you pay each creditor one by one and become debt free. Does it work? Debt settlement can be extremely effective because creditors will take significantly less than the full amount due in an effort to get something instead of nothing. Skilled experts can remain calm and advocate on your behalf. It is common for debts to be settled for half or even less of their original amount. You can be debt free in a matter of twelve to thirty-six months on average. What will happen during this process? As debt settlement experts negotiate, you stop paying your bills and all creditor communication is forwarded to your reputable settlement company. This does cause your credit score to temporarily decline because you will technically be delinquent. This, however, is the most effective negotiating tactic. As the creditors begin to realize that you cannot afford to pay the full amount, they are much more amenable to getting something rather than nothing. You will being to see real progress as debt after debt is settled. How do I start? Get a free consultation from an Impact Debt Settlement specialist. We will review your information and history and determine if debt settlement is right for you and how best to proceed. Getting started now is essential. Once you have made the commitment to getting out of debt, you need the best allies available, and our debt settlement experts are in your corner. Impact Debt Settlement is committed to providing sound advice and workable long-term solutions to individuals and families mired in debt. Our mission is to give Americans the tools they need to get out of debt with dignity and stay out of debt in the long term. Through our program clients can successfully settle debt for an average of 50%-70% of current balances. To accomplish that mission, we have brought together the finest legal teams and debt resolution experts available today. We offer our clients a better way to resolve their debts, saving them from the confusion and embarrassment of the usual debt resolution methods and freeing them from the annoying and intimidating debt collectors. Our
  4. 4. company takes under management an average of $6,000,000 of consumer debt monthly. Learn more by calling Impact Debt Settlement at (800) 581-6020 or visit