The Best Financial Debt Solution

Aug. 6, 2012 - PRLog -- Obviously the best financial debt solution is to pay double the minimum payment, getting credit cards paid off faster while saving 1000s in interest.  However, debt negotiation could be the perfect financial debt solution for a consumer that has a hardship.

In the United States $15,956 is the average credit card debt per household, there are more than 600 million credit cards held by US consumers and the average interest rate on credit cards is between 12-18%.  On an annual basis over 22 billion dollars is charged in penalty fees from credit card companies.  A financial debt solution is obviously needed for a large percentage of Americans between the ages of 30-70 years of age.  Consumer financial solutions can vary depending on each individual’s situation.
The best debt financial solution if it’s feasible is for an individual to pay double the minimum payment on high credit card debt.  

Example:
According to the CNN Money Debt Calculator if a consumer has $35,000 in credit card debt with a 20% interest rate and they are paying minimum payments equaling $875 per month, it will take 41 years and 3 months to pay off credit cards.   A person with this situation would pay back $64,004.57 in interest alone, + $35,000 to pay off the principle.  This person would pay back a total of $99,004.57, just to pay off $35,000 in unsecured debt.

By paying double the minimum payment this person would pay $1,750 monthly towards $35,000 in credit card debt.  At this rate a person would have $35,000 in credit card debt paid off in roughly 12 years, verse 41 years as mentioned above when only paying minimum payments.  By paying double the minimum payment a person with $35,000 in credit card debt would pay back a grand total of $51,114.87 to become debt free, verse paying back $99,004.57 total by paying only minimum payments.  

Paying double minimum payments can be a financial debt solution itself.

Some people cannot see the light at the end of the tunnel.  They realize that paying so much money towards credit cards each month for the next 10-20 years will be impossible.   Debt negotiation as a financial debt solution could lower an individual’s monthly payment significantly and getting them completely debt free within 2-3 years, or possibly even faster.  

Debt negotiation is often the best financial debt solution for the individual that cannot afford to continue making their mortgage payment because of how much money they are paying towards credit card debt.  Often consumers are struggling with their mortgage payment, where if they could just pay less money towards their credit card bills, they would be able to comfortably afford their mortgage payment.  Debt negotiation is a financial debt solution that would allow consumers to pay 100s and sometimes 1000s of dollars less on a monthly basis towards their credit card bills.  

An example of what debt negotiation can help a person to achieve would be if a person had $35,000 in credit card debt, on a debt negotiation plan as a financial debt solution a payment of only $630 per month could have them debt free in an estimated time of 36 months.  To learn more about financial debt solutions visit http://www.goldenfs.org/financial-debt-solutions-2/

Debt negotiation as a financial debt solution when administered properly includes state and federal compliance monitoring, an FDCPA enforcement program, asset preservation plans, monthly reviews and recommendations, legal attorney hotlines that are open for clients to call in and ask about related program questions,  litigation circumvention programs and much more!   Golden Financial Services offers compliant debt negotiation plans for consumers in qualified states.  

Golden Financial Services website and Better Business Bureau rating:  http://www.goldenfs.org/about-us/debt-settlement-bbb/.

Consumers can also learn about other credit card relief programs or financial debt solution options by visiting:  http://nomorecreditcards.com/credit-card-relief-programs/