Florida Debt Elimination Expert
Typically consumers that have overwhelming debt, only think they have 2 options, either enter into a Florida Consumer Credit Counseling Service or declare a Florida Bankruptcy. While these 2 options may have a lot of similarities, most will opt to enrolling into a Florida Consumer Credit Counseling program for such reasons as it is more cost effective and easier to implement.
Many credit card companies and creditors realize that it would be more beneficial to
actually work with consumers and make affordable payment arrangements than to
pursue typical collection activities. Instead they work with each of the individual's
creditors to come to some type of agreement that will result into a reduced single payment
plan, a consolidation of their debt, and or a reduction of interest rates and late fees -
thus making it possible for the debtor to repay his or her debts over a period of 3 - 5
years.
Once enrolled, the consumer will make a single payment to the Florida consumer credit
counseling service, and then the counseling service will make all the payments to the
creditors.
The main advantage of credit counseling services is to educate their client about
debt management and budgeting.
The main disadvantage of enrolling into consumer credit counseling services is that
many creditors will make a notation on the debtor's credit report indicating that the
debt is being managed by consumer credit counseling agency.
Another major issue that a client may experience is, even though they are making
their monthly payments to the credit counseling service on time, the credit
counseling service doesn't make the payments to the creditors on time. Now this will
reflect on the client's credit report as late payments.
And to add fuel to the fire, it is not uncommon for the credit counseling service to
make the payments on time, while the creditors are not accepting the reduced
payment amounts. This, too, would negatively affect the consumer's credit report.
"It is important to note that many lenders view credit counseling services as similar to
a Chapter 13 bankruptcy, because both can entail a payment plan and re-negotiation
of debt payments. (And, in fact, some people who are using a credit counseling
service do end up filing bankruptcy because they still don't have the income or
money management skills to handle the payments.) So, in some cases use of such a
service can be a negative, says Marlon Baugh, Florida Debt Elimination Expert."
Consumers who are consider a consumer credit counseling service or Florida Bankrutpcy to get out of credit card debt, should also consider Florida Debt Settlement, because it could be quicker, less costly and some consumers could get significant reductions on the amount owed.
Florida - based debt elimination expert Marlon Baugh specializes in providing information to consumers that allows them to make informed decisions about their credit cards and other debts so they can learn the insider secrets that can save them thousands of dollars over the life of their loan.
Marlon Baugh is available for interviews and will welcome all your debt related questions.
Call 954-678-5796 Ext.1 for a Free No-Obligation Consultation or visit
http://www.specializedfinancialsolutions.com/
