1. Consumer Credit Counseling (CCC)
2. Bankruptcy
3. Debt Consolidation Loans
4. Do what you’re currently doing
5. Debt Negotiations with Pacific Debt

Consumer Credit Counseling
Consumer Credit Counseling companies were first started by the credit card industry to help recover money from the enormous amount of people who began to fall delinquent on their payments. The majority of the CCC’s are paid a commission from your creditor based on how much debt they can recover from you and they may also charge a service fee.

In some cases, the help of a true non-profit consumer creditor counseling organization may be helpful, as the reduction in interest rates may be enough to alleviate the financial strain a consumer faces. However, all too often the monthly payments required by CCCS are just too high for many to afford. The monthly payments can be as high, or higher, than the minimum payments a consumer was paying prior to enrollment with CCCS. Once you start the program they will contact your creditors and enter you into a “Hardship Program”. Next, the creditor will ONLY reduce your interest rates. As you can imagine, this process will take many years and the fall out rate of the program is extremely high.

As you can see, these companies are funded by your creditors, require higher payments and only reduce interest rates—not principal.

Bankruptcy
Today, more than ever, people are filing personal bankruptcy as a way of getting away from the burden of their debt. Statistics show that the number one reason people are filing for bankruptcy is the harassment and pressure from companies trying to recover their money. For some people, bankruptcy is the only realistic option. Say, for example, if you owe $60,000 and you will never make more then $1,000 in any given month, then bankruptcy is the only option.

Recently, new laws were passed that makes it considerably harder and less desirable to file for bankruptcy as a way out. With this in mind, even if you are able to file for bankruptcy, there is a good chance you will still have to pay off your debts in full over a period of time. The process of filing for bankruptcy and the embarrassment and stigma that goes along with it will follow you for many years.

What effect does filing bankruptcy have on your credit report? The bottom line is that it will stay on your credit report for up to 10 years. In addition, you’ll pay immensely for those important purchases that you make later on in life. For example, if you want to purchase a house in the future, the interest rate will be much higher than for the average consumer who never has filed bankruptcy. In addition, bankruptcy may be taken into account when applying for a job, applying for a car loan, filling out a renter’s application, etc. As you can see, bankruptcy isn’t as appealing as it may first appear.

Debt Consolidation Loans
When falling victim to financial problems, debt consolidation loans are one of the most common solutions people think of. However, people who choose to go this route find themselves in much deeper financial trouble then they were in to begin with. All you are really doing is exchanging an unsecured debt for a secured debt that you will still need to pay interest on. Another downside to this is that the newly obtained debt is secured debt, meaning that it puts your assets in an accessible position for the creditors to go after. In this case, all the leverage shifts over to the creditor.

Do what you’re currently doing
This is actually what hundreds of thousands of people are doing across the country who are struggling in silence with their debts. Creditors prefer you to make just your minimum payment every month for the rest of your life. Why would they only want to receive a minimum payment? Well, by paying the minimum payments each and every month requested by the creditors, on average 85% of your payments are going to interest alone and it will take you about 25 years to pay off your debt in full!

Debt Negotiations with Pacific Debt
With debt negotiations, Pacific Debt takes an aggressive approach to eliminating the amount of debt. Unlike most CCC's or consolidation programs that may only reduce credit card interest rates, Pacific Debt will reduce the amount that you owe dramatically. With our professional debt negotiating team, we will work to have you debt free in as short a time as possible. Remember, Pacific Debt works purely for you - not the credit card companies, collection agencies or creditors. We strive to assist every client to reach his or her goal of becoming debt free and the average time* of completion for debt negotiation program is only 24 to 48 months and some people finish up in less than two years. Give us a call today!

Call 1-877-PAC-DEBT Today!

debt negotiations | FAQ | debt calculator | free consultation | your options
recent settlements | testimonials | privacy & disclaimer | home  

Click Here to Log In to the Online Contract Center

inquiries@pacificdebt.com