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Reduce Debt “Do I Pay My Mortgage or Credit Cards This Month?"
Golden Financial Services feels that consumers need to be better informed with ways to reduce debt and should not be scared of losing their home. This article outlines ways to reduce debt and really concentrates on reducing credit card debt.
By: Sammy Katherine
Ruth Adorno, with Golden Financial Services says "reduce debt to where you can afford your bills each month and still have money left over. Lately too many consumers ask the question," “do I pay my credit cards this month or my mortgage payment?"
The thought of a consumer losing their home because they cannot find a way to reduce credit card debt can be a hard thought and almost like a nightmare. The fact of the matter is that your home is a priority over unsecured liabilities. Reduce debt, but don’t lose your home. Credit cards are an unsecured liability and should be a 2nd priority when being compared to a person’s home. Therefore it would make sense to reduce credit card debt payments each month on a program if possible, instead of falling behind on your home where it could then get foreclosed on.
There are loan modification programs with reputable companies where they will not charge any money until your loan is modified. Loan modification companies that charge upfront fees are operating illegally so consumers should beware. A loan modification with a reputable company could be the answer for a consumer that is looking to reduce debt payments on their mortgage.
However if a loan modification is not something that a consumer qualifies for, then what’s plan B? Consumers can also visit free information sites like Hope.com, where help to reduce debt payments on their home can be obtained.
In a perfect world people would never get into a predicament like this, but unfortunately we are not in a perfect world. Yes bankruptcy can at times be a viable option to reduce debt or eliminate debt, but quite frankly who wants to declare bankruptcy when there are better options available to help with reducing debt. Golden Financial Services is adamant in saying that one should “avoid having to declare bankruptcy at all costs”.
It’s much harder to rebuild a person’s credit score or credit worthiness when having bankruptcy on their credit; it can be embarrassing and would prevent consumers from being approved for future loans for at least the next 5 years.
For consumers with high credit card debt, debt settlement or debt negotiation can reduce debt payments being paid towards unsecured debts. After reducing credit card debt payments consumers will have an increase in their monthly cash flow, where the extra money can now be put towards the mortgage payment.
With a reputable company debt settlement is a safe and reliable option to ethically pay off credit cards, but at a reduced amount based on how well the debt settlement company can negotiate and the hardship that the individual has.
On a debt settlement plan companies that have been in business for a long time will often lump together 100s of client’s worth of debt on a daily basis when negotiating with the credit card companies. This creates leverage, leading to better settlements or discounts with the creditors.
Debt settlement companies will set the consumer up with one monthly payment, smaller than what the consumer is paying on their own. A debt settlement plan will reduce credit card debt payments on a monthly basis and the plans are designed to get the customer completely debt free in less than 36 months.
Golden Financial Services provides real debt settlement letters and proof of success on this page at their website: http://www.goldenfs.org/
Golden Financial Services has partnerships with some of the most reputable loan modification companies, free resources companies, non profit debt management companies and offers compliant debt settlement, all aimed towards helping consumers with reducing debt. http://www.goldenfs.org
If consumers are struggling with reducing debt or reducing high credit card debt and their mortgage at the same time, they can also read more on a page that discusses, “how to reduce high credit cards, helping consumers to stay current on their mortgage.” http://nomorecreditcards.com/