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Obama debt relief programs have actually helped millions of consumers to get out of their unsecured loans. In order to realistically eliminate the unsecured loans, you need to make use of the debt settlement programs available in the market. The Obama debt relief programs were actually directed towards the promotion of this particular method of relief. Settlement requires the consumers to have an overall credit outstanding of ,000 or more and the consumers need to make sure that whole of the outstanding is with one single creditor. This will help to reduce the cost of settlement and will also help to reduce the time needed for settlement.

In their best interest, the consumers need to hire professional debt settlement firms which can go for a professional negotiation with the creditors. This is important because the creditors actually prefer professional approach. The negotiator from the settlement firm hired by the consumer will ask the person to stop paying the creditor and as the consumer follows this, the creditor waits for 90-120 days and then sells off the debt to a collection agency for only 20-30 cents against each dollar.

The negotiator then contacts the creditor and in a professional way, offers 30-50% bulk repayment of the complete outstanding and at the same time says that in case the offer made is not accepted, the consumer will be forced to file for bankruptcy as there are no other way out. The creditor will not want this to happen and will therefore, forgive at least 50% of the money that the consumer owes to the creditor. The consumer will have to then actually repay the remaining amount as per the new terms and conditions. This is how to realistically eliminate unsecured debts.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.

have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.http://www.debt-settlements.com

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Can debt relief services affect your credit if you use them to lower your interest rate?
I am planning to sign up for Care One debt relief services to help me consolidate my CC debt. Do you think this will actually work? will this affect my credit rating? Does anyone have an opinion about this company and their services. I was reading their blog and for the most part it sounds like it really works but I’m trying to search for more answers.
Thank you in advance for any suggestions or feedback.


AnswerCareOne offers two services: credit counseling and debt settlement. Being enrolled in a debt management program would cause your credit report to state “enrolled in debt management.” This does not specifically damage your credit rating but it would make it virtually impossible to qualify for new credit while you are enrolled in the program…but that’s the whole point of being enrolled in a debt management program to begin with…to stop using credit.

CareOne also does does debt consolidation/debt settlement. Stay away from any “debt consolidation” company that promises to cut your debt and payments in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.

Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements…they don’t. Your creditors have the right to refuse settlements and take you to court.
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If you want to enroll in a non profit debt management program then I would advise to use the real one….CCCS. Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS). They can negotiate reduced interest and payments. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to “enrolled in debt management.” This does not damage your credit, but it may make it difficult to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would might be denied while you’re enrolled in the CCCS debt management program…

CCCS counselors will often tell people to not file for bankruptcy when they really should. If your debt is overwhelming relative to your income/assets and the reduced payments negotiated by CCCS simply will not work, then you should think about filing for Chapter 7 bankruptcy

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