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Credit Card Debt Elimination Options


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Discover how to easily and quickly eliminate your credit card debts for pennies on the dollar.

Published in: Economy & Finance, Business
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Credit Card Debt Elimination Options

  1. 1. © 2012 Jason L Oswald / All Rights Reserved. / www.ByeByeDebt.netUnauthorized duplication or distribution is strictly prohibited. 1
  2. 2. DisclaimerThe information contained in this report is to provide information on the subject of debtelimination options, and should not be construed as rendering to you legal, financial orother professional advice by its author. Although the author has taken steps to ensurethat the information contained in this guide is accurate and up-to-date, the informationcontained herein is not guaranteed to be accurate. Please check the laws in your statefor any updates or revisions to the laws affecting bankruptcy and debt consolidation.All information contained in this document is for educational purposes only, and itshould not be construed or mistaken for legal advice. If you need legal advice youshould seek the counsel of a competent/professional attorney.The author and publisher of this report and the accompanying materials have used theirbest efforts in preparing this program. The authors and publisher make norepresentation or warranties with respect to the accuracy, applicability, fitness, orcompleteness of the contents of this program. They disclaim any warranties (expressedor implied), merchantability, or fitness for any particular purpose. The author andpublisher shall in no event be held liable for any loss or other damages. As always theadvice of a competent legal, tax, accounting or other professional should be sought.The author and publisher do not warrant the performance, effectiveness or applicabilityof any sites listed in this book. All links are for information purposes only and are notwarranted for content, accuracy or any other implied or explicit purpose.The text contained in this document is for information purposes only. Individual ResultsCan and Will Vary. Copyright NoticeThis report contains material protected under International and Federal Copyright Lawsand Treaties. Any unauthorized reprint or use of this material is prohibited. © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 2
  3. 3. Debt Elimination OptionsHello, My name is Jason Oswald, “The Debt Help Guy” and I am the author of thisreport as well as many online videos and resources to help consumers in dealing withtheir debts and helping them become debt free.If you’re currently in debt, struggling to pay your monthly credit card and other debtpayments, I’m here to let you know “You’re Not Alone”, in fact millions of otherconsumers are in the same situation and are struggling every single day.Many individuals have experienced or are currently experience some type of financialhardship(s). These hardships could range from over extension of credit card debt, lossof employment, divorce, death in the family, medical reasons, the list goes on…….andon……and on!Chances are you are experiencing some type of financial hardship that has brought youto this site, or maybe you’re just sick and tired of the way your creditors are or havetreated you in the past.Maybe they raised your interest rate through the roof, or maybe they lowered your creditlimit which put you over your max and hit you with multiple over the limit fees andpenalties, or maybe they shut down your line of credit and are now demanding you paythe balance in full.Whatever the reason is that brought you to my site, it doesn’t matter… long as youare here now, because even though it doesn’t seem like you have options in dealingwith your debts or the bill collectors are telling you that you don’t have any options andthey won’t work with you.Contrary to what these nasty bill collectors may be saying to you, “You Do HaveOptions” in dealing with your debts. So don’t believe what these bill collectors aretrying to tell you when they are demanding you pay your debt “Balance in full”, chancesare they are just trying to earn a larger commission check, but that’s another story. © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 3
  4. 4. On the following pages I am going to show you different options you have to help youwith your debts, as well as showing you a proven system that could save you thousandsoff your credit card debts and help you become debt free in as little as 12-24 months.Debt Elimination Options 1. Do Nothing 2. Create A Budget 3. Credit Counseling 4. Using a Debt Negotiation Service 5. Do It Yourself Debt Negotiation. 6. Bankruptcy (This should be your last resort)On the following pages I will cover these options and discuss the various advantagesand disadvantages of eac. © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 4
  5. 5. OPTION 1: DO NOTHINGConsumers can make a choice to do nothing, they can continue to attempt to pay theirmonthly bills or the minimum payments, or they may not pay their debts at all. Eitherway, the debts generally won’t go away. Their debts will usually become delinquent andthe matters may escalate into legal action against the consumer.Doing nothing should never be your first choice of options, but if you have a lot of debtwith very limited, or no income or assets to speak of, your chances of being sued maybe very limited, especially on unsecured debts with a balance less than $1,000.Creditors will usually attempt to collect on a debt for a period of 6 months before placingan account with an outside collection agency. Although this isn’t necessarily a badthing, because in some cases you may be may be able to work out a betterarrangement with the outside collection agency than what the original creditor wouldever offer you. In fact I cover this on the following pages in the debt negotiationsections.As I stated, doing nothing doesn’t make the debt go away, it’s just avoiding theinevitable, that eventually your debt will need to be dealt with. Most Creditors willreview a consumer’s their situation and if they feel the consumer has assets, money, ora stable job, you may risk your creditors taking legal action against you, in which thecreditors may be able to obtain a wage garnishment, a lien against your personalproperty, bank levy, or even seize your property.If you have other debt that you are trying to deal with such as your car payment or yourhome mortgage, or just trying to put food on the table, doing nothing may be your onlyoption, but remember that your debts aren’t magically going to go away and will have tobe dealt with sooner or later, so keep reading to discover some great options to helpyou deal with your debts. © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 5
  6. 6. OPTION 2: CREATE A BUDGETCreating a budget may help some consumers to better maintain their debts on amonthly basis. You may have to give up certain luxuries, refinance loans, and live morefrugally so you can pay down your debt.Creating a budget requires a strong will. You may have to change your lifestyle andreduce some of your weekly and monthly expenses in order to have more money to payoff your debts, but it can be done.This can also help you maintain a good credit record if you are able to get a solidbudget under control. One thing to keep in mind that although budgeting may helpsome it may not help everyone and maintaining a budget to deal with your debt willprobably be a long road towards debt freedom. How to Create a BudgetStart putting together your household budget by listing all your income sources. Thenyou need to list out your expenses and make sure you highlight the important ones -mandatory expenses - rent, mortgage payments, travel expense to work, utilities, autoloans, and insurance premiums. Now make a list of your less important expense -discretionary expenses - you know, the ones that you could cut back on or eliminate ifyou had to. Expensive clothing and entertainment come to mind as discretionaryexpenses.Added these expenses and income items up and make sure the "money in" is greaterthan "money out." And make sure your budget is realistic and not one that is built onfuture income that may never materialize. © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 6
  7. 7. There are a lot of free articles and even software programs available online to help youcreate a budget for yourself or your family. Simply do a Google search for “BudgetPrograms” or “Budget Information”. Once again, there are a lot of FREE programs andinformation online on how to create a budget, so if you end up on a page that wants tocharge you money, move onto the next website until you find a free program that youlike.Remember this is only one of the options that you have in dealing with your debts. © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 7
  8. 8. OPTION 3: CREDIT COUNSELINGAnother option that you have in eliminating your debts is by using a Credit CounselingService. Today there are literally thousands of these organizations, some are good,while many aren’t so good and it may be hard for you to choose one that is honest andethical.A Credit Counseling organization is usually an organization that will attempt to negotiatereduced interest rates on your debts, which in turn could or should lower your monthlypayments, hopefully helping you maintain a monthly budget.Traditional counseling services offer free, competent budgeting advice and charge onlya small monthly administration fee. Some of these companies can instantly arrange fora consumer to have lower monthly payments and interest rates through their pre-established relationships with major creditors.Credit Counselors will generally work with you to figure out what you can afford to paytowards your debts every month. Once they have worked with you to determine whatan affordable monthly payment is they will usually prorate this amount towards yourdebts.To simplify this, every month you will pay a set amount to a credit counselor and theywill divide this payment among your creditors. So every month your creditors willreceive a set amount towards the payment of your debt. And everything will be just fine,unfortunately that may be the case for some, but for most that’s not the case.Consumers are generally led to believe that their creditors are willing to lower interestrates and lower monthly payments for them. Not all creditors participate in creditcounseling programs and will actually increase the interest rate on your cards. Thiscould cause a lot of problems such as, your monthly payment not being met, whichmeans you may be hit with multiple additional charges and may also have a negativeimpact on your credit. © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 8
  9. 9. Many consumers’ bills actually increase each month rather than decrease -- if you cantafford a 3% increase in your monthly payments now, than credit counseling probablywont work for you. Some Creditors will even increase your interest rates they arepaying!Credit Counseling also has a huge dropout rate. Estimates range from 50% to 75%.Only about 20% of those who sign-up complete the program and a high percentage ofthose who drop-out go on to file bankruptcy;It may take you more time to pay off your debt than what a credit counselor may adviseyou of. In fact, in many cases the time schedule to pay off your debt is often grosslyunderestimated. Many consumers find out after a year of using a service their debthasnt reduced at all and it will take them at least 12 years to pay off the debt if theystick to the credit counseling plan.Not only could it take you more time to pay off your debts then what is estimated, youwill actually pay every dollar you owe back to your creditors. So let’s say you owe$40,000 in credit card debt, you will end up paying $40,000 back, plus some.Using a Credit Counselor will help some, but it’s not for the masses. Credit counselingcan usually help individuals who are able to currently maintain their monthly paymentsand credit. If you cannot afford your monthly payments even with a reduced interestrate chances are Credit Counseling is not for you.Once again, Credit Counseling is not your only option, so please keep reading. © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 9
  10. 10. OPTION 4: USING A DEBT NEGOTIATON SERVICEChances are that if you are in debt and looking for help in becoming debt free, you’veprobably heard the commercials offering debt help relief or debt negotiation help.These companies are popping up all over and for the most part some of thesecompanies can help you, but of course, they come with a price and in many cases thisprice can cost you thousands of dollars.Debt negotiation isn’t for everyone and is usually for consumers who are experiencingsome type of financial hardship and are already delinquent on their credit card debts orclose to becoming delinquent on their credit card debts.Typical debt negotiation services will work with your creditors to try to negotiate areduced pay-off (a.k.a. settlement on a consumer’s “Delinquent Debts”). If they aresuccessful, they may be able to settle your unsecured debts for substantially less thanwhat you owe and get out of debt a lot faster than with most of the other optionsmentioned, while possibly preventing their various creditors from taking legal actionagainst them. So that is one great advantage of using a debt negotiation service.Most debt negotiation services will work with you to create a budget and tailor a debtnegotiation program based on what you can afford per month. In many cases they areable to structure a debt negotiation program that can reduce your monthly payments byas much as 50%-75% of what you are currently paying to your creditors. This seems tobe one of the huge selling points these companies use to convince consumers to usertheir debt negotiation service.Who wouldn’t want their monthly credit card payments cut in half? Keep readingbecause it comes with a price!Another advantage is that by using a debt negotiation service you may be able to savebetween 30-80% off your credit card debts or most unsecured debts. Which couldmean that you could save thousand even tens of thousands off your debts. Soundspretty nice, right? ……………once again, it comes with a price. © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 10
  11. 11. Okay, so you’re wondering what is the “Price” I keep referring to, well here it is. Mostdebt negotiation/settlement services will charge you thousands of dollars to negotiatesettlements on your credit card and unsecured debts. Many of these companies willcharge between 10-30% of the amount of debt you are looking to get help with.So if you owe $40,000 in debt and a company charges you, on the low end, only 10% ofyour debt, you would end up paying this company $4,000 to get help with your debts.That’s money you could use towards paying off your debts on your own.Many of these companies will also charge monthly fees and settlement fees, whichcould also cost you thousands of dollars over the course of time. If you’re in debt,chances are you don’t have thousands of dollars to pay someone to help you with yourdebts and you don’t have to.So although having someone help you in dealing with your debts and possibly beingable to save thousands off your debts may sound appealing, it could also cost youthousands of dollars to receive that help. Even though I cover this as being an option indealing with your debts, I strongly advise against it, in fact I even wrote another FREEReport giving you 10 reasons why you should never use a debt negotiation service.If you didn’t receive this report and you are interested in receiving it, please send me anemail to and I’ll send it to you.In conclusion Debt negotiation is a great option to dealing with your debts, but you don’thave to use a debt negotiation service to help you, because you can actually doeverything they can do and not have to pay a company thousands of dollars to help you. © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 11
  12. 12. OPTION 5: SETTLE YOUR OWN DEBTS & SAVEPreviously I talked about using a debt negotiation/settlement service to help you withyour debts and hinted at some of the advantages of using one of these services, suchas saving thousands – even tens of thousands off your debts, becoming debt free in aslittle as 12-24 months as opposed to decades etc.I also covered the fact that most of debt negotiation/settlement companies will chargeyou thousands of dollars to help you with your debts and I sort of hinted at the fact thatyou can do everything they do, yourself.That’s right, everything that a debt negotiation/settlement service claims they can do foryou, you can actually do on your own, without paying one of these companiesthousands of dollars to help you.You Can Easily Negotiate Your Own Debts and potentially save thousands off yourdelinquent credit card and unsecured debts. All you need is the right tools; knowledgeand support to help you successfully negotiate with your creditors and debt collectors.If you’re looking for a way to become debt free and save thousands off your debtswithout paying someone thousands of dollars of your hard earned money to help you,then there is an alternative solution for you.On the following page is a link to a “Powerful Money Saving” program that will showyou the “Inside Secrets, Techniques & Strategies” that debt negotiation/settlementservices use to help consumers with their debts. The only difference is, this programwon’t cost you thousands of dollars as using a debt elimination service would.Debt negotiation is considered to be the #1 bankruptcy alternative and this system hashelped thousands eliminate their credit card and unsecured debts for pennies on thedollar saving them thousands and can help you do the same.Most individuals can usually save up to 70% or more off their credit card debts and canusually settle all their credit card and unsecured debts in as little as 12-24 months asopposed to 5-15 years. Imagine being able to pay off your cash draining credit carddebts for a small fraction of what you owe. What would you do with all that extra cash? ==> CLICK HERE FOR MORE INFORMATION © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 12
  13. 13. OPTION 6: BANKRUPTCY (LAST RESORT)If your financial situation is very serious and you’re struggling to even afford your priorityhousehold expenses, such as your rent or mortgage payments, grocery, and utilityexpenses, then your credit cards should come last and you may want to consider filingfor bankruptcy.Maybe you’ve been told that bankruptcy is the easiest way to eliminate your debts,hopefully youve also been told that it also the most painful. You could lose yourhome, your car and still wind up owing people money. Legal fees are expensive andjudges dont always show compassion.Bankruptcy could wipe out a significant amount of debt in about four months if you filedChapter 7, but it isnt a good idea for those who have substantial property and assetsthat they want to keep. In fact, if you have property and assets you may not even qualifyfor bankruptcy under the new “Means Test” that is required for consumers to takebefore they file for bankruptcy.Bankruptcy should be considered as a last resort and there are other viable solutions todealing with their debt that should be explored before a consumer even consider filingfor bankruptcy.Every option that I’ve covered has its pros and cons and bankruptcy is no different.Some of the pros and cons of bankruptcy are:Pros-- 1. If you qualify, you can liquidate many unsecured debts, such as credit card and medical debts; 2. If their bankruptcy is a simple one, the whole process will be over in about six months to a year; 3. Can be a good solution for those with limited income, no property, few assets, and a modest net worth; © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 13
  14. 14. Cons-- 1. Consumers may now have to take a “Means Test” as well as 6 months of credit counseling if they past the means test in order to file for bankruptcy. 2. They may not qualify if there has been any recent activity or purchases on their credit cards in the past few months; 3. Might have to liquidate their assets or sell their home; 4. It is not a good alternative for those with expensive possessions or if they have a substantial amount of equity in their homes; 5. Will have a bankruptcy notation on their credit report for 10 years, which will result in having a hard time getting financing for the next 2 to 3 years, and what financing is obtained will usually be at a higher interest rate. 6. If they hire an attorney, it will cost them at least a $1,000 for a simple bankruptcy and $3,000 to $5,000 or even more for a complex one.As you can see, bankruptcy has a lot of cons and this is why bankruptcy should only beconsidered after exploring all of your other options. If you feel that bankruptcy is yourbest option, then you should consult with a knowledgeable legal professional to discussyour options and to determine if you qualify.A lot of individuals who are struggling financially and dealing with their debts decide touse debt negotiation as a viable means to dealing with their debts, most have greatsuccess in saving thousands off their debts.If you are looking for a proven method to eliminate your credit card and unsecureddebts and you want to save a ton of money doing so, then do yourself a favor and checkout the information on the very next page and “Discover The Secrets Creditors Don’tWant You To Know” and “Start Saving Yourself A Ton of Money Today!Regardless of what option you choose, I hope you made the right choice for you andyour family and wish you the best of luck in your journey of becoming debt free.Sincerely,Jason OswaldJason Oswald“The Debt Help Guy” © 2012 Jason L Oswald / All Rights Reserved. / Unauthorized duplication or distribution is strictly prohibited. 14
  15. 15. © 2012 Jason L Oswald / All Rights Reserved. / www.ByeByeDebt.netUnauthorized duplication or distribution is strictly prohibited. 15