Debt Consolidation – Making the Right Decision
www.myfinancialgoals.org – Are you one of the many consumers today who have been hurt by the recession and now find yourself drowning in debt? Then it’s important to make the right decision when it comes to choosing a debt consolidation program. At American Financial Solutions, we can help you choose what’s best for your specific situation.
The airwaves are full of commercials today that promise to cut your debt in half and have you debt free in 24 months. The companies making these claims are Debt Settlement companies. They typically promise to settle debts with your creditors for 40% to 60% of the principal you owe. These companies collect high up-front fees from consumers and then take monthly payments which are saved in an escrow account until enough is available to make settlements with their creditors. During this “saving time”, no payments are sent to the creditors at all. There are few statistics available on the success rate of consumers in a Debt Settlement program, however, a survey by Colorado’s attorney general found that from 2006 to 2008, less than 10% of Colorado consumers successfully settled their debts through these programs. An investigation by the New York attorney general into an Arizona-based debt-settlement company found that only 0.3% of clients realized the promised savings*. Consumers typically find themselves in a much worse situation after stopping payment to all of their creditors and allowing the fees and interest rates to grow out of control. Many who go through a failed Debt Settlement program like this end up turning to bankruptcy or find themselves with a judgment filed against them by one or more of their creditors. They are also thousands of dollars out of pocket in fees to the Debt Settlement firm and their credit scores require years to recover.
American Financial Solutions is a non-profit organization that can help you make smart financial choices that will keep you worry free. We can develop a payment consolidation program that works with your creditors to help you reduce your interest rates, eliminate fees, stop the collection calls and, best of all, you will have one convenient monthly payment that you can afford and be debt free in five years or less.
American Financial Solutions is a non-profit 501(c)(3) financial education and credit counseling agency founded in 1999 and is committed to empowering people to improve the quality of their lives through financial education and counseling.
For More Information:
My Financial Goals
263 4th St.
Bremerton, WA 98337
1 (800) 894-3946
http://www.myfinancialgoals.org
Processing your request, Please wait....
