Debt Options

Many consumers are faced each day with greater debt burdens that quickly consume their pay check. It can be hard to decide where to turn for help. If you are struggling to make your minimum monthly payments on your unsecured debt call us for a free consultation. There are many options available; which option is best for you?

What is a Consolidation Loan?

The traditional consolidation loan is where a consumer will borrow money using collateral such as a home to secure money to repay unsecured debts. This can be referred to as “robbing Peter to pay Paul”.

Additional Info

Consolidation loans using your home to secure the funds can be dangerous, especially with the current housing situation. It’s better to diversify your debts in case you encounter an unexpected hardship. If all your unsecured debt is rolled into your home and you are unable to make the payment this can force you into foreclosure.

Consolidation vs. Debt Settlement:

Like consolidation you have one monthly payment that usually offers immediate monthly relief. The difference is the length of time in the program. Depending on the amount of your debt a settlement program will range from 12-36 months or less. Unlike consolidation loans that range from 7-10 years or more. And if you do encounter an unexpected hardship we are able to modify your program.

What is Consumer Credit Counseling/Debt Management?

Consumer credit counseling agencies like debt management programs help people repay their debts by negotiating the interest rate to a lower amount.

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Many of these agencies claim to be non-profit stating they do not charge you for their services. Don’t be fooled; they do get paid by your creditors. Both programs aim at getting the debtor to repay all debts in full. The programs range anywhere from 5-7 years or more depending on the amount of debt. In essence you are working with companies that put your creditors' best interest first.

Consumer Credit Counseling/Debt Management vs. Debt Settlement

Depending on your situation, Consumer Credit Counseling/Debt Management programs may be a viable option. However if you are looking to satisfy your debts in a short amount of time, debt settlement is a better solution. Instead of repaying your debt in full, AADSC will negotiate the amount of your debt instead of your interest rate. The length of the programs with debt settlement will range depending on the amount of debt enrolled.

What is Bankruptcy?

There are two types of personal bankruptcies. One is a Chapter 7which is the least desirable credit wise. Typically you are out of bankruptcy in 6 months and you don’t have to repay any debt. The other type of bankruptcy is a chapter 13 where you are given up to 5 years to pay off your debts. Keep in mind that the bankruptcy laws have changed making it more difficult to file. For more information you can visit:

www.usdoj.gov/ust/eo/bapcpa/20061001/bci_data/median_income_table.htm

Additional Info:

There is just no easy way to get out of debt; you have to face up to the consequences. A bankruptcy is not always the answer, as the effects are long lasting.

Bankruptcy vs Debt Settlement

Most people no longer qualify for a Chapter 7, so if you have to file Chapter 13 it will require you repay your debt in full . Does it make sense to have your credit affected for 10 years by filing for Chapter 13? Debt settlement will allow you to satisfy your unsecured debt through negotiation. Once you complete the program, we provide the tools and education for you to become credit worthy without your credit rating being affected for 10 years.

What Solution is best?

No matter which option you choose, it will require a commitment on your part. Call us now at 866.757.2409 to learn more about our negotiation program. We maybe able to help save you a sizable amount of money on your principal and interest while shortening the time it takes to pay off your debt.