Find out how a debt program will affect your credit score, see table below.

The table shown below states the credit score affects that incur while enrolled and prior to:

• Debt Management / Arbitration Enrollment
• Credit Counseling Enrollment
• Bankruptcy Filing

These figures are an estimation based on the average clients beacon score point fluctuation.

The illustration below list's the estimated amount of points that will increase or decrease.

Debt Program Forecast / Credit Score Affect
Debt Relief Options	Initially Enrolled or (0-12 Months)	Mid-Term Enrollment or (12-30 Months)	Prior to Enrollment	Overall
Debt Settlement	1.85	0.92	1.05	0.12
Consolidation Loans	See Risk Factor	N / A	N / A	N / A
Consumer Credit Counseling	1.05	0.21	0.88	0.38
Debt Reduction Program	0.10	0.22	0.05	0.37
Attorney-Based Debt Negotiation	1.71	0.88	0.93	0.10
Bankruptcy	1.65	1.41	See Risk Factor	3.06

NOTICE: Risk Factors Associated with Each Debt Relief Option:

Debt Prosperity's Debt Settlement Program

Debt settlement is not for everyone; however, for many people, it has been their saving grace. Debt Prosperity has helped thousands get back on track using a settlement program that involves negotiations between our firm, affiliates and your creditors among many things.

The exact impact that debt settlement will have on your credit rating really depends on where you are starting from. If you've got a poor payment history already, chances are your rating is not very good to start with, so going into debt settlement might just lower your rating from bad to poor. On the other hand, if you've been paying all of your credit card and other bills on time for years but suddenly fall on hard times, you may very well be going from a consumer with good credit to poor. Unfortunately, this means that debt settlement is a much more difficult decision for those with a good credit rating before the trouble started.

Fortunately, unlike bankruptcy by enrolling in debt settlement your credit score will gradually increase over a shorter period of time whereas with bankruptcy your credit score remains poor and your considered a high risk to creditors for 7-10 years.

Consolidation Loans, Home Equity Lines etc.
The biggest risk involved in home equity loans is risk of the borrower being rendered homeless. In the case of the borrower being unable to make timely payments of the interest and the principal, the lender can claim the existing house of the borrower. Thus a default in payment can lead to the loss of the home, which is used as collateral for the loan.

Hidden loan conditions: Consumers who do not pay close attention to the fine print may fall victim to the unforseen conditions of the home equity loan, particularly those pertaining to principal and interest payments. For example, a balloon payment of the principal may add to the debt burden of the borrower and the inability to make the payment may result in foreclosure and thus loss of the borrower's home. The lender may also impose legal and procedural fees later on in the term of the loan, which may affect the actual amount payable by the consumer.

Higher interest payments: If the equity loan is financed at a floating or variable rate, then it is subject to changes depending on the interest rate. This may be because the interest payments fluctuate out of the bounds of the borrower's reach. Besides these major risks, the home on which the loan is secured cannot be leased during the term of the loan. The loan on home equity will also effectively increase the time required to pay off the debt on the existing home. Many times, the easy availability of an equity loan can tempt a consumer to take the loan for day-to-day expenses, which actually adds to existing debt burdens. The investment made by the money raised through raising an equity loan should be financially more rewarding than the interest paid on the loan. All these factors should hence be taken into consideration before taking a home equity loan.

Consumer Credit Counseling Services

Consumer Credit Counseling can either help or hurt your credit depending on how the organization goes about consolidating your debts. Consumer Credit Counseling has gotten a bad reputation recently because many of the programs actually hurt your credit in the short run, however a properly handled organization may be able to boost your credit score as creditors like to see you manage your debt properly and consumer credit counseling can be a wise choice. Bottom line is you should pick an organization that will have minimal affects on your short and long term credit score.

Debt Prosperity's Debt Reduction Program

This program will only have a positive effect on your credit because you will be repaying all of your creditors. You may receive a better credit score compared to consolidation or consumer credit counseling services because you will be repaying a greater number of creditors. Additionally because you maintain your existing revolving credit accounts this looks good to credit companies because you have credit to fall back on in case of emergency. With this program you may keep all of your credit cards so that you may feel secure that you've got revolving credit if you need it. Our Debt Reduction Program strives to reduce each of your revolving credit card interests rates; ultimately our success depends on your paying status with your account holder.

Attorney-Based Debt Negotiation Programs

Attorney-Based Debt Negotiation Companies charge an incredibly high retainer fee. In some cases the attorney may own the company, this gives them the right to claim "attorney-based", in all actuality financial consultants are the individuals pounding your creditor's phone lines and negotiating your debts, which is all good and well. In the long run your debt solvency, payoff amount and overall results will be similar, the only difference is you payed more for the "attorney-based" label. Before you sign up with any debt management company, including us, request specific information about the services being offered. Ask about experience and how you will be charged for the services being offered.

Bankruptcy

Your credit will be negatively impacted for at least seven years and in some cases having to answer that you've had a bankruptcy in the past may hold you back for your entire life. This program is a system of last resort. In fact before you may take this option most states insist that you do a credit education class to seek alternatives as this direction causes so much damage to your credit.

Bankruptcy in itself is a long expensive process that involves lawyers and the courts which get to decide how to handle your assets, debts and accounts. Bankruptcy is designed to be protection for people who have been unable to manage their debts. Bankruptcy doesn’t remove the debt it just protects you against legal attacks in the mean time to give you an opportunity to repay those debts without liens, law suits, etc. You should only use this alternative if you have no other option and your creditors are ready or in the process of pursuing legal action against you. You may always choose to take this alternative at a later date so you should exercise all other options before taking this life altering step. Bankruptcy will cause you to be considered at the highest risk status and while you still may be able to get credit you will end up paying the highest interest possible because you are consider the highest risk possible.

In 2000, the Department of Justice conducted a study that examined the link between bankruptcy filings and credit card debt. This study examined 1,000 bankruptcy cases and found the following relationship in this population:

Credit Card Debt % of Bankruptcy Cases
Credit Card Debt Amounts	% of Bankruptcy Cases
$0	13.5%
$1 - $9,999	36.0%
$10,000 - $24,999	26.4%
$25,000 - $49,999	16.7%
$50,000 - $74,999	4.3%
$75,000 or more	3.0%

The above table tells us that 50.4% of these households filing for bankruptcy had credit card debt in excess of $10,000. Of greater concern were households - 30 of them - that reported at least $75,000 in credit card debt. Among this group, the average number of credit cards owned was 16.7, ranging from a low of eight to a high of 33 cards. The average balance on each account was nearly $6,400.

Debt Prosperity provides a debt program forecast that shows consumers how their credit rating can be affected by the various credit card debt services offered throughout the United States of America. Our Company offers a debt settlement or debt reduction program that helps consumers reduce debt 40-60% thus lowering interest rates to payoff credit card debt fast without the negative lasting affects of bankruptcy, find which debt program is in your best interest, contact our credit card debt support line by calling toll free 1-877-288-7352.