Which debt program is best for me; Consolidation loans - Home Equity Loans / Second Mortgages - Consumer Credit Counseling Services or...

Debt Settlement / Debt Negotiation & Debt / Interest Reduction Programs with Debt Prosperity?

Consolidation Loans and Home Equity Lines

Because credit cards carry such high interest rates, then you've probably already considered consolidating your debt into one lower cost through a personal loan or by take out a second mortgage or home equity line. however there are serious advantages and disadvantages to consolidating your debt, especially if you use your home to secure that debt. "Instead of having to worry about five or six different credit card bills you'll just have one bill, at a lower interest rate and the interest is deductible," the problem, though, with consolidating debt by taking out a second mortgage or a home equity line is that you are exchanging unsecured debt (credit cards) with secured debt (the debt is backed by your home and if you default, you lose your home). This may alter your decision, perhaps cause you to fully re-consider consolidation loans altogether!

Many financial advisors believe if you didn't have the discipline in the first place and wound up charging too much, things won't change when you take out a home equity loan. You'll end up running up your credit card debt (again) and now you will also be saddled with a huge home equity line to pay off, putting you, your family and home at risk!

Consumer Credit Counseling Services

Or you can work with a Consumer Credit Counseling Service and reduce what you owe. You can get your debt restructured into one, smaller payment per month, but it comes at a price: generally, you'll be delinquent while negotiating your debt down, which means you'll be getting dunned for payment and you'll end up temporarily wrecking your credit rating in the process.

You also have to be careful. People in financial crisis tend to be very vulnerable and there are a lot of unscrupulous companies out there. Most credit counselors are nonprofit entities, but that doesn't mean that they're good or legitimate. Keep in mind that while your hiring your debt counselor, his or her company gets paid by the credit card companies, so who are they most loyal to? "Try to avoid any port in the storm," You don't walk into a dealership, point to a car, and pay whatever price the dealer comes up with. No, you shop around. Use the internet to research your options, check references and ask your local Better Business Bureau or State Attorney's office to see if complaints have been lodged against the company.

If the counselor overpromises— "We'll consolidate your $60,000 in debt into one easy monthly payment of $20— don't believe it. Read through all contracts and make sure you understand the process, how it will work and how much it will cost.

Debt / Interest Reduction Programs with Debt Prosperity

At Debt Prosperity our interest and debt reduction program offers solutions that will help maintain your credit rating and in many cases improve it. Often, people who choose payment arrangements or consulting with debt counselors as a solution find out they have damaged their credit rating. The result of using other solutions may remove the debt but leave you crippled when it comes time apply for something requiring credit. At Debt Prosperity, removal of the debt is just one step in the process, we help you Maintain your credit because you will need it again. Having credit allows you to apply for a mortgage for a new home, or finance a new car, but a credit rating can be used for many more things we acquire these days, for example - Insurance, rentals, credibility, etc. Basically, any time you want to borrow money from someone, your chances are much better if you have borrowed money and repaid it on a timely basis in the past, Debt Prosperity can help you do just that!

NOTICE: Debt Prosperity's Interest Reduction / Debt Reduction Services are for people who choose to save money every month, build and/or maintain a high credit score. Our average Debt Reduction Enrolled client obtained $3,000 + Dollars of credit card debt but is still in good standings with creditors.

Debt Settlement / Debt Negotiation Programs with Debt Prosperity

Debt Settlement / Negotiation is often regarded as a financial solution that satisfies both the creditor and the debtor. This is because the debtor avoids bankruptcy and a long term blotch on their credit report and the creditor is not out all of their money. Bankruptcy sends a message to your creditors that they are never going to see the money they lent you and you are left with higher interest rates, poor credit and a uncertain financial future. You have also borrowed money in good faith and it's your responsibility to pay that debt. Of course, in many cases bankruptcy is a necessary step for some, but make sure you are getting good advice from a professional before you move forward with such a drastic solution.

When you start negotiation processes with creditors, they will offer you a settlement initially. Many people grab this first offer just because they want to get the whole thing over with, but if you have Debt Prosperity in your corner, you'll end up with a better deal in the long run. If you are going to try and negotiate yourself, set your resolve and be patient. Remember that the purpose of all of these activities is to relieve your financial burden so you can move forward!

At Debt Prosperity we make sure that when your debt negotiation and settlement has been reached the creditor reflects your account as 'Satisfied in Full' on your credit report. Anything less may harm your credit score and make your financial road a little bumpier in the future.

NOTICE: Our Debt Settlement Programs is beneficial to people living with an unsecured debt amount that ranges from $8,000 +, therefore Debt Prosperity requires our consultants to enroll people that meet or exceed a debt amount of or above $8,000 U.S. Dollars. Our average client is enrolled in our debt settlement program for 12-24 months, however various clients get out of debt in 4-7 months. Your Debt Amount and Budget are the 2 main time determing factors to take into consideration with regards to your program enrollment period.