Alternative Ways to Handle Unsecured Debt

New statistics demonstrate that most Americans are struggling with a minimum of $8,000 in unsecured debt.  Making matters worse they are attempting to pay that debt back on a median income of less than $50,000 a year, which for most is difficult to do.  Unfortunately many people are choosing bankruptcy as a way out of their financial troubles.  Why, you might ask?  Most are simply not aware of some more consumer, and creditor, friendly options out there for them to try.  I don’t disagree that bankruptcy does serve a purpose but humor me today as we look at some alternative solutions; credit counseling and debt settlement.

First, let’s define what “unsecured debt" means.  Unsecured debt is debt not secured by any property or collateral, meaning that a creditor cannot place a lien against your property and that your property cannot be taken away in order to pay the debt.  Some examples of unsecured debt are credit cards, certain medical bills, department store cards, and cell phone bills.

Second, how does credit counseling and debt settlement work?  Let me start by stating that credit counseling and debt settlement should always be done through an experienced entity like AmeriFree.  When a consumer enters AmeriFrees credit counseling program they are essentially contracting with us to contact their creditors, propose fixed payment plans, take creditor calls and distribute monthly payments for up to 5 years.  That’s right…within 5 years you can eliminate your unsecured debts by enrolling in our credit counseling program.  Our debt settlement is similar to credit counseling except that your individual accounts are actually settled with your creditors.  Debt settlement programs typically run 2 to 3 years and require you, the consumer, to deposit funds in an escrow account that builds up until there are enough funds to adequately settle individual enrolled accounts.  Once there are enough funds available to settle our negotiators work directly with your creditor to come up with a mutually agreeable settlement amount.  Debt settlement can save you money with the average settlement, including fees, costing much less than your original amount owed.  Please review our debt settlement information for all of the ins and outs.

I hope this information opened some new doors on alternative ways to handle your unsecured debt!  Please check back often as new information is continually being added.

Matthew

Debt Blogger