Their focus should be pointed towards helping folks, rather than making money, according to Golden Financial Services.
What is wrong with America!
Companies often advertise by using phrases like debt consolidation, bankruptcy, debt negotiation, debt elimination, debt settlement, debt reduction programs and many more names. However most of these programs mean the same thing as the other.
So how do consumers actually get educated on the real debt relief options available?
The only safe way for consumers to find a reliable debt relief company is to first get educated on their debt relief options.
Philis Tanson, a managing director at Golden Financial Services said, "I constantly hear consumers complain to me about how they contacted some debt relief company that they found online, and they were then pressured into signing up on a debt relief program that they did not want."
There is a huge need for debt settlement, consumer credit counseling, consolidation loans and bankruptcy. However, a person must get set up on the right program in order for it to be beneficial.
If a person joins on the wrong program it could ruin their financial future.
A person should understand their options, do their research and then make an informed decision that actually improves their financial health in the end.
Let’s take a look at the different debt relief options currently available in the United States and how they defer.
1. Debt Consolidation Loans – Do you have high interest rates and lots of credit card debt? Go to your bank and apply for a low interest consolidation loan. This is definitely the best option for you to take if you can qualify for the loan. However, only get a loan from the bank if the interest rate is below 4%. If it is higher than that, then what is the point?
Once you get the loan, pay off all of your high interest credit card debt in full. Then you will be left with only one low interest, and low payment loan to pay back. Sounds great, right?
Unfortunately most folks that have high credit card debt cannot get approved for a low interest loan from the bank. The problem is that when you have a high debt to income ratio the banks will usually deny you for a low interest loan.
2. What is debt settlement – debt settlement is a program that may get you out of debt fast. During the program you are responsible for paying one monthly payment each month.
Creditors are not paid on a monthly basis with debt settlement, but rather in lump sum payments. A person must first go into default status on their accounts, and then settlements will occur after their accounts are sent to a third party debt collector.
Since a debt collector will purchase delinquent credit card accounts at a drastically reduced price, they are also willing to settle it at a reduced amount, to where they will still reap astonishing profits. That is why a debt settlement company will wait until a person’s accounts are sent to a collection agency before they negotiate and settle.
Debt settlement will lower your credit score and in the end a person will be left with late and collection marks on their credit report.
The good news is that you can always rebuild your credit score, but it will take time, credit education, determination and persistence. If you are planning to join on a debt settlement program then just be sure to find a company that is highly rated with the Better Business Bureau and that has been in business for ten or more years.
When is debt settlement a good option for me? Take a look at the answer, by Golden Financial Services. http://nomorecreditcards.com/
3. Consumer Credit Counseling – Can you afford to pay minimum payments, but your interest rates are sky high? If you can afford to pay minimum payments, then consumer credit counseling might be the best option for you. The reason why is because the consumer credit counseling company will negotiate with a person’s creditors and obtain a lower interest rate for them. A person would then make only one consolidated payment to the consumer credit counseling company each month. Out of that monthly payment the consumer credit counseling will then disperse the funds each month to their client’s different creditors. http://nomorecreditcards.com/
Contact Golden Financial Services for a free consultation by calling 866-376-9846. During the consultation consumers can learn about debt settlement and debt consolidation for credit card debt, get program quotes and gain financial education.