Consumer Technology

Don't Refinance Your Home to Pay Off Credit Card Debt - There's a Better Way

Ever received one of those offers in the mail that seems like the solution to all your problems? It may have said, "Your home is an untapped resource. Refinance your loan with us and you'll get quick cash to buy a car, fund college or pay off your credit card debt."

You may have been tempted by the idea, but hopefully you didn't bite. There are better ways to solve problems with debt. An option you may not have known about but should really consider is debt settlement, the consumer equivalent of a business hiring a turn around specialist to help them settle their debts with creditors and get the company back on track.

"Debt settlement is really the best option available to people who have found themselves in dire straights. If you're living from paycheck to paycheck, and unable to pay your bills every month, you obviously need help. We will work with your creditors to get them to accept a smaller amount of cash to wipe the slate clean," says Jamie Greene of Debt Settlement America a company that has helped hundreds of people out of financial difficulty during the 7 years it has been in business.

On average, settlement officers are able to negotiate debts down by 40 to 60 percent, which can make a huge difference. Say you have $9,300 in credit card debt, the average amount carried by each American family according to the nonprofit Consumer Counseling Service in Dallas. If you cut 40 percent of that amount, your new balance would be $5580; cut 60 percent and your balance drops to $3,720, both much more manageable amounts to deal with for someone on a tight budget.

"Not only do we negotiate down the debt, we work with consumers to set up a payment plan that works for them," says Greene.

The ideal candidates for debt settlement include people dealing with a hardship such as illness, disability, divorce, job loss or reduction in pay; people with debt in excess of $10,000 at high interest rates; those who are having trouble staying current with their accounts; and those who are considering bankruptcy, but would like to avoid it.

To find out if debt settlement is the solution for you, log on to www.debt-settlement-america.com and fill out a quick online form. A counselor will follow-up with you to schedule a free consultation.

Copyright © 2006 ARA Content