"Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law"Romans 13:8

Credit Card Debt Management
Program & Counseling

Credit Card Debt Payments w/ Annual Compounded Interest
The following charts show how compounded interest affects the total amount that consumers pay on unsecured debts. Use the balances owe and interest rate you are currently being charged to find what you will pay and how long it will take, if you are only able to make the minimum monthly payments required. If the resulting total seems daunting, consider using our referral service to find a credit card debt management program that can assist you in straightening out your finances.

"Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law"Romans 13:8
The above tables use annual compounded interest to determine length of time and total payback of your debts. If your interest compounds monthly or daily, your payback will be slightly higher. Many credit card companies automatically increase your interest rate due to issues such as credit limit, late or missed payments, or failure to pay requested amount due. When you signed your credit card agreement, you authorized this increase if you do not adhere to the terms and conditions as stated on your contract.

Please note these figures are based on a person making their required payment amount on time every month without being late or missing payments. The total payback amounts would be much higher once late fees have been added in with compound interest. Credit card counseling can help reduce interest rates and increase the amount of each payment that goes towards paying off your principle balance.

3 Ways to Pay $20,000 Credit Card Debt

Option	Monthly Payments	Time to Complete	Total Paid
Minimum Payment Plan	Variable, 2.5%	30 years	$49,231 or $2.46 / $1.00 Debt
Credit Counseling	Flat 2.335% = $467	Just Under 6 Years	$33,157 or $1.66 / $1.00 Debt
Debt Negotiation	2% = $400	About 30 Months	$12,000 or $0.60 / $1.00 Debt
NOTE: All figures are approximate and based on the client average.

HAVE LOTS OF DEBT, BUT WILL MY CREDIT BE HURT?

What is the truth?

You may be in the situation of having so much credit card debt that you are feeling stressed, worried and afraid of what might happen.  At the same time, you may also be so concerned about your credit score that you hesitate to do what’s necessary to get out of debt.

In other words, you’re feeling the squeeze between the stress of your debt and the worry about your credit score.  This is not the right place to be.  I’ll bet, when you go to bed at  night, or worry during the day, that you are worrying about your debt not your credit score.  Everyone I’ve ever talked to is worried about their debt- how are they going to get out of debt, how long will it take, when will the problem ever end??  It is worry, stress and upset about your debt and NOT about your credit score.

"Just as the rich rule the poor,so the borrower is servant to the lender." Proverbs 22:7

Lets take a closer look at the DEBT side of the problem first, then we’ll look at your credit concerns.

THE 5 WAYS TO GET OUT OF DEBT

*You have only five ways of getting out of debt, you can:

1.      File Bankruptcy

2.      Do it yourself- keep making minimum payments for 30 plus years. Get a loan from a family member, try to win the lottery, or get a personal loan to handle it.

3.      Consolidate your debt with a personal loan, which is just switching debt for debt or put the debt on your house (turning unsecured debt into secured debt), none of which you will paying off anytime soon because the first half of a mortgage is ALL INTEREST.

4.      Enroll in a non-profit Consumer Credit Counseling program to help pay your debts. Getting lower interest rates allows you to pay off the debt more quickly which will in turn improve your debt to income ratio and increase your credit score.  Why pay on debt for 20 to 30 years when you can eliminate it in 3 to 5 years.

5.      You can do Debt Negotiating or Debt Settlement.

"The way of the fool is right in his own eyes,but a wise man is he who listens to counsel" Proverbs 12:15

YOUR DEBT VS. YOUR CREDIT SCORE

When it’s time to choose your way out of debt, the next big worry is your CREDIT REPORT!  In fact, concerns about your credit report can freeze you from doing anything effective about your debt, which sends you right back into your worries, stress and upsets about your debt.  That’s called a mental trap.  There are a number of falsehoods about your credit that you need to know so you can have a better understanding about your credit.  If you feel like the banks and credit card companies are toying with you when it comes to your debt and credit report, you are absolutely right!

" So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches" Luke 16:11

SCARING YOU BY USING YOUR CREDIT

First, having a good credit report is important in today’s society.  The history of credit goes back a long ways, way before there were “credit reports”.  A handshake that one would repay a debt was common in the past (but not very common today).  Having good credit gives you a person some confidence in their ability to make their way through the economics of society.

That said when a person is faced with overwhelming debt and they need to DO something about it, they can often become scared because of their concern about their credit report.  And right there is the problem.   The thought of having bad credit prevents action from being taken on your debt.

One of the best ways to scare a person is to give them one idea, then make them believe that if they don’t follow that idea, something bad will happen to them.  Whole blocks of society are built on this premise.

For example, if you don’t pay your creditors on time, no matter what the crisis is in your life, you will suffer the consequences of bad credit.  For the average person with $15,000 in credit card debt at 18% interest, the credit card companies want you to believe that it’s better for you to be in debt for the next 30 years, than have bad credit.

If you feel like you’re in a trap, well you are.  You’re trapped into the idea that you MUST have good credit, no matter what the problem, and that includes keeping your payments of your overwhelming debt.

But, what if you miss one payment, or more?  Maybe you already have.  Well, your credit score will start to drop.  How awful, or is it??

Let’s put all of this together.  What the banks and credit card companies want you to believe is that it’s better for you to be in credit card debt for 30 years, making your payments on time, every month, rather than miss payments and have bad credit for the next couple of years.  But, that doesn’t seem tight to be trapped in debt for 30 years of paying creditors to avoid a drop in your credit score.  Something is wrong with the logic of this “idea”.

"Keep out of debt and owe no man anything"  Romans 13:8 

YOUR CREDIT REPORT AND YOUR OPTIONS TO GETTING OUT OF DEBT

Let’s look at how the above circles will affect your credit report. Doing a bankruptcy, (see Psalm 37:21) falling behind on payments and Debt Negotiation will all have a negative affect on your credit score. At the same time, if you’re overwhelmed with debt and are having a hard time paying your creditors, EVEN IF YOU DO PAY THEM ON TIME, you will have poor credit.

            There are TWO points of concern about your credit score even if you make your payments on time. One is your income to debt ratio, meaning how much money you bring in and how much you spend each month. If you are spending all of your income on bills and expenses, you are considered a credit risk.

            In addition, if you have used most or all of your available credit, then you will have a lower credit score, even if you pay your creditors on time. Again, they consider you a credit risk. This is CRITICAL information that your creditors don’t want you to know. They want you to keep making your minimum payments, on time, so they get their money.

THE REAL VALUE OF YOUR CREDIT REPORT

I have talked to people again and again that are overwhelmed with debt that is destroying their lives and are also worried about having bad credit. The question to ask is this-how valuable is your credit report when you are overwhelmed with debt? Why would your credit report do for you if you owe too much? What will you be able to use your credit for? The fact is, with overwhelming debt and no way out, lenders will likely not give you another loan! How much confidence would they have in your ability to pay it back? Again, credit is valuable, but only when you can sue it! If your worry about your credit is trapping you into your debt problem so that you feel that you must keep paying your creditors on time, or face the consequences of bad credit, what are you going to do? You HAVE to do something, or the debt problem will continue to consume you and your life will be full of worries, upsets and stress!!

MAKING A DECISION ABOUT YOUR DEBT FIRST!!

If you see that you are getting no where with your debt, how do you expect anything to change if you do not take action! For any person, the idea of “maybe I should do this and maybe I should that” back and forth, back and forth is a wicked position to be in. what you need to do is to get out of the STRESS, WORRY and FEAR that are happening as a result of your debt. THAT is where you have to make your decision. Credit can always be improved, just through time. Debt will persist, and persist and not go away until you do something that is effective!

 "Just as the rich rule the poor,so the borrower is servant to the lender." Proverbs 22:7

THE REAL CATCH ABOUT OUR CREDIT

Here’s another thing that the credit card companies and banks  DON’T WANT YOU TO KNOW.

Getting out of debt, regardless of the consequences on your credit score, will improve your income to debt ratio. In other words, when you get out of debt, you will be eligible for more credit.

As pathetic as it is, your income to debt ratio is so important to the banks and credit card companies. When you improve it, by no longer having debt, you become a “debt candidate” to the banks and credit card companies. Even if you were to go into bankruptcy, (which most individuals are no longer eligible for) in all likelihood, you would be able to get credit cards about 18 to 24 months after you filed for bankruptcy. I have talked to people that had that happen to them, 18 months later they were able to get back into debt.

WHY?

For 2 reasons;

1. Their income to debt ratio is improved

2. They can’t file for bankruptcy for 10 years.

This means that the creditors know they can get a person back into debt and keep them there for at least 10 years without that person being able to get out of it through bankruptcy. If you think this is crazy, your right!

Debt goes on for 30 to 40 years and credit can be fixed in a couple of years, the real decision you need to make is that you need to get out of debt!  PERIOD

IN SUMMARY

You may be a person that is worried, or even overwhelmed by your debt. The problem is frozen in place by the fear that if you really DO something about your debt, your credit report will be in bad shape.

Your credit will be affected by ANYTHING you do to try and get out of debt if you have TOO MUCH DEBT.

If you are barley able to make your payments to your creditors, even if you make them on time, you will have credit that is of little worth.

Bankruptcy, falling behind on payments, and debt settlement will also have an  adverse affect on your credit report.

The point is this-YOU NEED TO DO SOMETHING ABOUT YOUR DEBT! The problem will not go away unless you do something about it. You need to make an informed decision.

We can help you make that decision.

We offer all forms of debt elimination and will take each person through all of your debt elimination options. Even if we are not the right choice, we will help you find the correct one.

We don’t have a 5 or 10 minute conversation about your debt and just tell you how we’re the best. We go through your options so you can choose the right one.

"The godly man is a good counselor because he is just and fair and knows right from wrong" Psalm 37:30-31 

Let’s get the right solution for you!

CALL NOW!

Call for your FREE DEBT CONSULATION at my TOLL FREE NUMBER