Financial Debt Solutions provide consumers a way to solve their debt issues. Golden Financial Services educates and assists consumers with finding the right financial debt solution based on their individual situation. Some consumers simply need education on how to lower their balances on their own and how to pay less interest. Other consumers need financial debt solutions such as debt management, debt settlement and even bankruptcy at times.
Debt can be accumulated by borrowing money, unexpected expenses that come up, medical conditions and hospital bills can lead to debt. Banks giving consumers high credit limits on their credit cards and consumers using that credit unnecessarily on items that they want and not need can also lead to consumers accumulating high debt. It’s easy to accumulate debt, but not as easy to find the right financial debt solution to pay off debt.
Golden Financial Services focuses on financial debt solutions and helping consumers with being proactive about their financial situations. It’s important to first identify why consumers fell into their hardship situation or how they accumulated their debt. After identifying how consumers accumulated their debt, then it’s time to move forward finding the right financial debt solution. While assisting Americans with their financial situations, Golden Financial Services believes that education is the key to preventing consumers from falling into the same path again in the future. Financial debt solutions can help consumers to reach total debt freedom, but without education consumers are likely to accumulate debt again in the future.
Financial Debt Solution
Summary of Financial Debt Solutions:
1. Pay off credit cards by paying double the minimum payment. Paying double the minimum payment can be a financial debt solution in itself. The reason why is because when paying minimum payments only consumers can be paying on credit card debt for the rest of their life.
Ruth has $50,000.00 in credit card debt.
Currently her cards have a 30% interest rate and are all maxed out. Ruth is 50 years old.
Ruth is looking at all financial debt solutions available.
By making minimum payments only, it will take Ruth 81 years and 7 months to pay off her credit cards.
Based on Ruth’s current combined balance of $50,000.00, she will pay a total of $254,135.07 in interest alone.
Ruth will pay a Grand Total of $304,135.07 to become debt free by paying minimum payments on her credit cards.
Ruth needs to find a financial debt solution because the path she is currently on is not working
At this rate Ruth will not become debt free until she is 131 years old. Therefore Ruth needs a financial debt solution to help pay off credit cards.
Ruth’s 1st Financial Debt Solution to consider is to Pay Double on her Minimum Payments.
If Ruth pays $2,900.00 Per Month towards her credit card debt, it will take Ruth 1 year and 11 months to pay off her credit cards.
Based on Ruth’s current combined balance of $50,000.00 in credit card debt, Ruth will pay a total of $14,083.73 in interest on this plan.
Ruth will pay a Grand Total of $64,083.73 to become debt free by paying double the minimum payments on her credit cards.
This is a realistic financial debt solution for Ruth if it’s feasible. Sometimes it’s not feasible for consumers to pay double on their minimum payments due to their income, job loss, unemployment, salary decrease; other unexpected expenses may have come up and for many other possible reasons. Paying double the minimum payment can also help with a consumers credit score.
2. Debt management or debt consolidation can be a viable financial debt solution. Of course there are pitfalls with debt management, like with all financial debt solution programs. However, Ruth could save 1000s of dollars when comparing this debt management plan, to how much she would pay if she paid minimum payments on this $50,000.00 in credit card debt.
Debt Management as Ruth’s Financial Debt Solution:
On a debt management or consumer credit counseling program Ruth’s payment would be approximately $1,127.90 Per Month and at that payment it would take Ruth approximately 5 years to pay off her credit cards.
Based on Ruth’s current combined balance of $50,000.00, she will pay an estimated total of $15,414.39 in interest on a debt management plan.
Ruth would pay an estimated Grand Total of $65,414.39 to become debt free on a debt management program as her financial debt solution.
Debt management is a good plan for someone that is just looking to get a lower interest rate and pay off their credit cards in a faster time frame, than if they were to continue paying minimum payments on their own. Debt management does put a 3rd party notation on a consumer’s credit report and the plans can last on average from 4-5 years. Therefore a debt counselor at a non profit consumer credit counseling company or one of the best debt settlement companies will fully analyze a consumer’s financial situation, budget, job situation and many other factors. A debt counselor will make sure that Ruth can afford to pay $1,127.90 for the next 5 years before choosing a debt management plan as her financial debt solution.
3. Debt settlement or debt negotiation is the preferred financial debt solution by many consumers due to it being the fastest way to pay off their debt, while saving the most amount of money.
When choosing a Debt Settlement Company it’s important to choose a company that is a debt settlement BBB A Rated Company, which has been in business for at least 5 years and has 0 unresolved complaints.
The best debt settlement companies will have over a 5 year track record in the financial debt solutions industry. A company that has over a 5 year track record will likely have more experience and leverage with the creditors, than a company that has been in business for only 2 or 3 years. 2 or 3 years in business is not enough time for a debt settlement company or any financial debt solution company to establish a proven track record due to consumer plans lasting for at least 2 to 3 years. How many graduated clients can a company have that has been in business for only 2 years?
Debt settlement can be the most challenging financial debt solution for consumers, but the most challenging program is what will produce the greatest rewards, saving consumers the most money and time over any other financial debt solution.
Debt Settlement as Ruth’s Financial Debt Solution:
On a debt settlement program Ruth’s payment could be approximately $763 Per Month and at that payment it could take Ruth approximately 3 years to pay off her credit cards.
Based on Ruth’s current combined balance of $50,000.00 in credit card debt, Ruth could pay an estimated Grand Total of only $27,500.00 to become debt free on a debt settlement program as her financial debt solution.
Beware of companies that quote consumers a 70%-80% reduction on a debt settlement program.
These results are just estimates and can vary. See examples of settlement letters.
Financial Debt Solutions are only a step away at Golden Financial Services. The first step to resolving your unsecured debt issues is to read and get educated. Debt counselors at Golden Financial Services can assist you with taking the next step and starting on the financial debt solution that is right for you.