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Debt Consolidation Vs Debt Settlement

Debt Consolidation Vs. Debt Settlement FIRST CONTACT Complimentary face-to-face, Free telephone or online telephone, or online counseling consultation to determine if debt session to determine best solution settlement is an option. to debt problems. FINANCIAL REVIEW · Budget analysis of income, expenses, · Debts should be more than six months behind or "charged-off". and debt. · Must be struggling to make payments. · Settlement companies should not agree to work with accounts that are current or · Be current with payments or less than six months behind in making payments. are past due less than six months. • Minimum debt to apply for the program · No minimum debt amount required. is around $10,000. DETERMINE SOLUTION Eligibility and availability of Review of budget and affordability of programs. debt settlement monthly payments. DISBURSEMENT · Payments are disbursed to cach creditor monthly. Monthly payment is held in a trust account. NO payments are sent to creditors on a monthly basis. · Interest rates may be lowered or Creditors are NOT paid until the eliminated. settlement account has accrued over the course of months, and sometimes years. • More money applied to principal, · Each creditor is settled individually from the trust account when enough money has accumulated. ultimately reducing total debt and shortening payoff time. CREDIT IMPACTS · Because payments are not paid monthly, accounts become further delinquent and Because payments are made to creditors on a monthly basis, harm credit scores severely. credit remains unharmed throughout the program. · Upon program completion, accounts will be marked paid as settled or agreed. FEES • Up-front fees are typically a percentage of the debt, usually 15%-18%. •Nominal set-up and monthly fee enables the organization to process • Other companies charge a percentage of the debt savinge once the debt is settled (usually 25%) as well as initial sign-up fees and monthly service fees. and maintain the accounts. •Fees cannot be more than $50 per month due to non-profit status. During the two or more years a person is paying the settlement company, the money sits in a trust account and the company does nothing but withdraw fees. © 2010 ConsolidatedCredit.org Debt Consolidation Vs. Debt Settlement FIRST CONTACT Complimentary face-to-face, Free telephone or online telephone, or online counseling consultation to determine if debt session to determine best solution settlement is an option. to debt problems. FINANCIAL REVIEW · Budget analysis of income, expenses, · Debts should be more than six months behind or "charged-off". and debt. · Must be struggling to make payments. · Settlement companies should not agree to work with accounts that are current or · Be current with payments or less than six months behind in making payments. are past due less than six months. • Minimum debt to apply for the program · No minimum debt amount required. is around $10,000. DETERMINE SOLUTION Eligibility and availability of Review of budget and affordability of programs. debt settlement monthly payments. DISBURSEMENT - Payments are disbursed to cach creditor monthly. Monthly payment is held in a trust account. NO payments are sent to creditors on a monthly basis. · Interest rates may be lowered or Creditors are NOT paid until the eliminated. settlement account has accrued over the course of months, and sometimes years. • More money applied to principal, · Each creditor is settled individually from the trust account when enough money has accumulated. ultimately reducing total debt and shortening payoff time. CREDIT IMPACTS · Because payments are not paid monthly, accounts become further delinquent and Because payments are made to creditors on a monthly basis, harm credit scores severely. credit remains unharmed · Upon program completion, accounts will be marked paid as settled or agreed. throughout the program. FEES • Up-front fees are typically a percentage of the debt, usually 15%-18%. •Nominal set-up and monthly fee enables the organization to process • Other companies charge a percentage of the debt savinge once the debt is settled (usually 25%) as well as initial sign-up fees and monthly service fees. and maintain the accounts. •Fees cannot be more than $50 per month due to non-profit status. During the two or more years a person is paying the settlement company, the money sits in a trust account and the company does nothing but withdraw fees. © 2010 ConsolidatedCredit.org Debt Consolidation Vs. Debt Settlement FIRST CONTACT Complimentary face-to-face, Free telephone or online telephone, or online counseling consultation to determine if debt session to determine best solution settlement is an option. to debt problems. FINANCIAL REVIEW · Budget analysis of income, expenses, · Debts should be more than six months behind or "charged-off". and debt. · Must be struggling to make payments. · Settlement companies should not agree to work with accounts that are current or · Be current with payments or less than six months behind in making payments. are past due less than six months. • Minimum debt to apply for the program · No minimum debt amount required. is around $10,000. DETERMINE SOLUTION Eligibility and availability of Review of budget and affordability of programs. debt settlement monthly payments. DISBURSEMENT - Payments are disbursed to cach creditor monthly. Monthly payment is held in a trust account. NO payments are sent to creditors on a monthly basis. · Interest rates may be lowered or Creditors are NOT paid until the eliminated. settlement account has accrued over the course of months, and sometimes years. • More money applied to principal, · Each creditor is settled individually from the trust account when enough money has accumulated. ultimately reducing total debt and shortening payoff time. CREDIT IMPACTS · Because payments are not paid monthly, accounts become further delinquent and Because payments are made to creditors on a monthly basis, harm credit scores severely. credit remains unharmed · Upon program completion, accounts will be marked paid as settled or agreed. throughout the program. FEES • Up-front fees are typically a percentage of the debt, usually 15%-18%. •Nominal set-up and monthly fee enables the organization to process • Other companies charge a percentage of the debt savinge once the debt is settled (usually 25%) as well as initial sign-up fees and monthly service fees. and maintain the accounts. •Fees cannot be more than $50 per month due to non-profit status. During the two or more years a person is paying the settlement company, the money sits in a trust account and the company does nothing but withdraw fees. © 2010 ConsolidatedCredit.org Debt Consolidation Vs. Debt Settlement FIRST CONTACT Complimentary face-to-face, Free telephone or online telephone, or online counseling consultation to determine if debt session to determine best solution settlement is an option. to debt problems. FINANCIAL REVIEW · Budget analysis of income, expenses, · Debts should be more than six months behind or "charged-off". and debt. · Must be struggling to make payments. · Settlement companies should not agree to work with accounts that are current or · Be current with payments or less than six months behind in making payments. are past due less than six months. • Minimum debt to apply for the program · No minimum debt amount required. is around $10,000. DETERMINE SOLUTION Eligibility and availability of Review of budget and affordability of programs. debt settlement monthly payments. DISBURSEMENT - Payments are disbursed to cach creditor monthly. Monthly payment is held in a trust account. NO payments are sent to creditors on a monthly basis. · Interest rates may be lowered or Creditors are NOT paid until the eliminated. settlement account has accrued over the course of months, and sometimes years. • More money applied to principal, · Each creditor is settled individually from the trust account when enough money has accumulated. ultimately reducing total debt and shortening payoff time. CREDIT IMPACTS · Because payments are not paid monthly, accounts become further delinquent and Because payments are made to creditors on a monthly basis, harm credit scores severely. credit remains unharmed · Upon program completion, accounts will be marked paid as settled or agreed. throughout the program. FEES • Up-front fees are typically a percentage of the debt, usually 15%-18%. •Nominal set-up and monthly fee enables the organization to process • Other companies charge a percentage of the debt savinge once the debt is settled (usually 25%) as well as initial sign-up fees and monthly service fees. and maintain the accounts. •Fees cannot be more than $50 per month due to non-profit status. During the two or more years a person is paying the settlement company, the money sits in a trust account and the company does nothing but withdraw fees. © 2010 ConsolidatedCredit.org Debt Consolidation Vs. Debt Settlement FIRST CONTACT Complimentary face-to-face, Free telephone or online telephone, or online counseling consultation to determine if debt session to determine best solution settlement is an option. to debt problems. FINANCIAL REVIEW · Budget analysis of income, expenses, · Debts should be more than six months behind or "charged-off". and debt. · Must be struggling to make payments. · Settlement companies should not agree to work with accounts that are current or · Be current with payments or less than six months behind in making payments. are past due less than six months. • Minimum debt to apply for the program · No minimum debt amount required. is around $10,000. DETERMINE SOLUTION Eligibility and availability of Review of budget and affordability of programs. debt settlement monthly payments. DISBURSEMENT - Payments are disbursed to cach creditor monthly. Monthly payment is held in a trust account. NO payments are sent to creditors on a monthly basis. · Interest rates may be lowered or Creditors are NOT paid until the eliminated. settlement account has accrued over the course of months, and sometimes years. • More money applied to principal, · Each creditor is settled individually from the trust account when enough money has accumulated. ultimately reducing total debt and shortening payoff time. CREDIT IMPACTS · Because payments are not paid monthly, accounts become further delinquent and Because payments are made to creditors on a monthly basis, harm credit scores severely. credit remains unharmed · Upon program completion, accounts will be marked paid as settled or agreed. throughout the program. FEES • Up-front fees are typically a percentage of the debt, usually 15%-18%. •Nominal set-up and monthly fee enables the organization to process • Other companies charge a percentage of the debt savinge once the debt is settled (usually 25%) as well as initial sign-up fees and monthly service fees. and maintain the accounts. •Fees cannot be more than $50 per month due to non-profit status. During the two or more years a person is paying the settlement company, the money sits in a trust account and the company does nothing but withdraw fees. © 2010 ConsolidatedCredit.org

Debt Consolidation Vs Debt Settlement

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Debt Consolidation and Debt Settlement are not the same. This infographic compares important aspects the two.

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