Eliminating Credit Card Debt Advice

Here's a description of the differences between CCC companies and negotiation agencies. CCC's are funded by the creditors; their job is to attempt to lower the interest rates of credit cards, collect one monthly payment from the consumer and then disburse it to your creditors each month.

Rule of thumb is 2.5% of your debt amount will be required each month; it will take around 60 months to eliminate the debt; your creditors will be reporting you as in a hardship program and will rate you "R7", which is the same category as a chapter 13 bankruptcy. It affects your chance of getting a home loan, as bankers are trained to decline CCC participants.

Our program is a debt negotiation program; also known as debt elimination, debt reduction, debt settlement. We work for our clients to get creditors to reduce the principal balance down to about 35 -40% of what it currently is; 55-60% with all payments and fees. We are here to help those who have had a hardship handle their situation and become debt-free.

A hardship can be any set of circumstances that have changed, leaving one in a financial bind. The only way to successfully communicate a hardship to a creditor so that they will cooperate in lowering the balance is for you to make the decision to stop making the payments to the cards directly. Because of this, you will affect the payment history portion of your credit report, which accounts for 30% (only 30%) of your credit score. You will be able to purchase homes, vehicles, etc. after a program like this, although, in some cases, the interest rates may be higher.

Credit repair exists to clean up a report and works well in many cases.

I hope this has helped you and has answered your question. Feel free to contact me for more information or to pursue this further; ask for me when you call. I can also help you run through the math of the difference between CCC and debt negotiation, if you like. Click on the link below for an informative article about CCCs from Consumer Reports.

http://www.consumerreports.org/main/detail.jsp?CONTENT%3C%3Ecnt_id=85425&FOLDER%3C%3Efolder_id=18151&bmUID=1013796954011

Please feel free to call if you have questions.

Best Regards,

Jae Burnham
Senior Debt Consultant
Professional Business Solutions
800/404-8687 ext. 286
Jae@edebtfree.org
http://www.edebtfree.org/new/