Credit Card Debt Elimination Options

© 2012 Jason L Oswald / All Rights Reserved.
www.TheDebtHelpGuy.com / www.ByeByeDebt.net
Unauthorized duplication or distribution is strictly prohibited.
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Disclaimer

The information contained in this report is to provide information on the subject of debt
elimination options, and should not be construed as rendering to you legal, financial or
other professional advice by its author. Although the author has taken steps to ensure
that the information contained in this guide is accurate and up-to-date, the information
contained herein is not guaranteed to be accurate. Please check the laws in your state
for any updates or revisions to the laws affecting bankruptcy and debt consolidation.

All information contained in this document is for educational purposes only, and it
should not be construed or mistaken for legal advice. If you need legal advice you
should seek the counsel of a competent/professional attorney.

The author and publisher of this report and the accompanying materials have used their
best efforts in preparing this program. The authors and publisher make no
representation or warranties with respect to the accuracy, applicability, fitness, or
completeness of the contents of this program. They disclaim any warranties (expressed
or implied), merchantability, or fitness for any particular purpose. The author and
publisher shall in no event be held liable for any loss or other damages. As always the
advice of a competent legal, tax, accounting or other professional should be sought.
The author and publisher do not warrant the performance, effectiveness or applicability
of any sites listed in this book. All links are for information purposes only and are not
warranted for content, accuracy or any other implied or explicit purpose.

The text contained in this document is for information purposes only. Individual Results
Can and Will Vary.

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This report contains material protected under International and Federal Copyright Laws
and Treaties. Any unauthorized reprint or use of this material is prohibited.

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Debt Elimination Options
Hello, My name is Jason Oswald, “The Debt Help Guy” and I am the author of this
report as well as many online videos and resources to help consumers in dealing with
their debts and helping them become debt free.

If you’re currently in debt, struggling to pay your monthly credit card and other debt
payments, I’m here to let you know “You’re Not Alone”, in fact millions of other
consumers are in the same situation and are struggling every single day.

Many individuals have experienced or are currently experience some type of financial
hardship(s). These hardships could range from over extension of credit card debt, loss
of employment, divorce, death in the family, medical reasons, the list goes on…….and
on……and on!

Chances are you are experiencing some type of financial hardship that has brought you
to this site, or maybe you’re just sick and tired of the way your creditors are or have
treated you in the past.

Maybe they raised your interest rate through the roof, or maybe they lowered your credit
limit which put you over your max and hit you with multiple over the limit fees and
penalties, or maybe they shut down your line of credit and are now demanding you pay
the balance in full.

Whatever the reason is that brought you to my site, it doesn’t matter…..as long as you
are here now, because even though it doesn’t seem like you have options in dealing
with your debts or the bill collectors are telling you that you don’t have any options and
they won’t work with you.

Contrary to what these nasty bill collectors may be saying to you, “You Do Have
Options” in dealing with your debts. So don’t believe what these bill collectors are
trying to tell you when they are demanding you pay your debt “Balance in full”, chances
are they are just trying to earn a larger commission check, but that’s another story.

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On the following pages I am going to show you different options you have to help you
with your debts, as well as showing you a proven system that could save you thousands
off your credit card debts and help you become debt free in as little as 12-24 months.

Debt Elimination Options

1. Do Nothing
2. Create A Budget
3. Credit Counseling
4. Using a Debt Negotiation Service
5. Do It Yourself Debt Negotiation.
6. Bankruptcy (This should be your last resort)

On the following pages I will cover these options and discuss the various advantages
and disadvantages of eac.

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OPTION 1: DO NOTHING

Consumers can make a choice to do nothing, they can continue to attempt to pay their
monthly bills or the minimum payments, or they may not pay their debts at all. Either
way, the debts generally won’t go away. Their debts will usually become delinquent and
the matters may escalate into legal action against the consumer.

Doing nothing should never be your first choice of options, but if you have a lot of debt
with very limited, or no income or assets to speak of, your chances of being sued may
be very limited, especially on unsecured debts with a balance less than $1,000.

Creditors will usually attempt to collect on a debt for a period of 6 months before placing
an account with an outside collection agency. Although this isn’t necessarily a bad
thing, because in some cases you may be may be able to work out a better
arrangement with the outside collection agency than what the original creditor would
ever offer you. In fact I cover this on the following pages in the debt negotiation
sections.

As I stated, doing nothing doesn’t make the debt go away, it’s just avoiding the
inevitable, that eventually your debt will need to be dealt with. Most Creditors will
review a consumer’s their situation and if they feel the consumer has assets, money, or
a stable job, you may risk your creditors taking legal action against you, in which the
creditors may be able to obtain a wage garnishment, a lien against your personal
property, bank levy, or even seize your property.

If you have other debt that you are trying to deal with such as your car payment or your
home mortgage, or just trying to put food on the table, doing nothing may be your only
option, but remember that your debts aren’t magically going to go away and will have to
be dealt with sooner or later, so keep reading to discover some great options to help
you deal with your debts.

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OPTION 2: CREATE A BUDGET

Creating a budget may help some consumers to better maintain their debts on a
monthly basis. You may have to give up certain luxuries, refinance loans, and live more
frugally so you can pay down your debt.

Creating a budget requires a strong will. You may have to change your lifestyle and
reduce some of your weekly and monthly expenses in order to have more money to pay
off your debts, but it can be done.

This can also help you maintain a good credit record if you are able to get a solid
budget under control. One thing to keep in mind that although budgeting may help
some it may not help everyone and maintaining a budget to deal with your debt will
probably be a long road towards debt freedom.

How to Create a Budget

Start putting together your household budget by listing all your income sources. Then
you need to list out your expenses and make sure you highlight the important ones -
mandatory expenses - rent, mortgage payments, travel expense to work, utilities, auto
loans, and insurance premiums. Now make a list of your less important expense -
discretionary expenses - you know, the ones that you could cut back on or eliminate if
you had to. Expensive clothing and entertainment come to mind as discretionary
expenses.

Added these expenses and income items up and make sure the "money in" is greater
than "money out." And make sure your budget is realistic and not one that is built on
future income that may never materialize.

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There are a lot of free articles and even software programs available online to help you
create a budget for yourself or your family. Simply do a Google search for “Budget
Programs” or “Budget Information”. Once again, there are a lot of FREE programs and
information online on how to create a budget, so if you end up on a page that wants to
charge you money, move onto the next website until you find a free program that you
like.

Remember this is only one of the options that you have in dealing with your debts.

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OPTION 3: CREDIT COUNSELING

Another option that you have in eliminating your debts is by using a Credit Counseling
Service. Today there are literally thousands of these organizations, some are good,
while many aren’t so good and it may be hard for you to choose one that is honest and
ethical.

A Credit Counseling organization is usually an organization that will attempt to negotiate
reduced interest rates on your debts, which in turn could or should lower your monthly
payments, hopefully helping you maintain a monthly budget.

Traditional counseling services offer free, competent budgeting advice and charge only
a small monthly administration fee. Some of these companies can instantly arrange for
a consumer to have lower monthly payments and interest rates through their pre-
established relationships with major creditors.

Credit Counselors will generally work with you to figure out what you can afford to pay
towards your debts every month. Once they have worked with you to determine what
an affordable monthly payment is they will usually prorate this amount towards your
debts.

To simplify this, every month you will pay a set amount to a credit counselor and they
will divide this payment among your creditors. So every month your creditors will
receive a set amount towards the payment of your debt. And everything will be just fine,
unfortunately that may be the case for some, but for most that’s not the case.

Consumers are generally led to believe that their creditors are willing to lower interest
rates and lower monthly payments for them. Not all creditors participate in credit
counseling programs and will actually increase the interest rate on your cards. This
could cause a lot of problems such as, your monthly payment not being met, which
means you may be hit with multiple additional charges and may also have a negative
impact on your credit.

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Many consumers’ bills actually increase each month rather than decrease -- if you can't
afford a 3% increase in your monthly payments now, than credit counseling probably
won't work for you. Some Creditors will even increase your interest rates they are
paying!

Credit Counseling also has a huge dropout rate. Estimates range from 50% to 75%.
Only about 20% of those who sign-up complete the program and a high percentage of
those who drop-out go on to file bankruptcy;

It may take you more time to pay off your debt than what a credit counselor may advise
you of. In fact, in many cases the time schedule to pay off your debt is often grossly
underestimated. Many consumers find out after a year of using a service their debt
hasn't reduced at all and it will take them at least 12 years to pay off the debt if they
stick to the credit counseling plan.

Not only could it take you more time to pay off your debts then what is estimated, you
will actually pay every dollar you owe back to your creditors. So let’s say you owe
$40,000 in credit card debt, you will end up paying $40,000 back, plus some.

Using a Credit Counselor will help some, but it’s not for the masses. Credit counseling
can usually help individuals who are able to currently maintain their monthly payments
and credit. If you cannot afford your monthly payments even with a reduced interest
rate chances are Credit Counseling is not for you.

Once again, Credit Counseling is not your only option, so please keep reading.

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OPTION 4: USING A DEBT NEGOTIATON SERVICE
Chances are that if you are in debt and looking for help in becoming debt free, you’ve
probably heard the commercials offering debt help relief or debt negotiation help.
These companies are popping up all over and for the most part some of these
companies can help you, but of course, they come with a price and in many cases this
price can cost you thousands of dollars.

Debt negotiation isn’t for everyone and is usually for consumers who are experiencing
some type of financial hardship and are already delinquent on their credit card debts or
close to becoming delinquent on their credit card debts.

Typical debt negotiation services will work with your creditors to try to negotiate a
reduced pay-off (a.k.a. settlement on a consumer’s “Delinquent Debts”). If they are
successful, they may be able to settle your unsecured debts for substantially less than
what you owe and get out of debt a lot faster than with most of the other options
mentioned, while possibly preventing their various creditors from taking legal action
against them. So that is one great advantage of using a debt negotiation service.

Most debt negotiation services will work with you to create a budget and tailor a debt
negotiation program based on what you can afford per month. In many cases they are
able to structure a debt negotiation program that can reduce your monthly payments by
as much as 50%-75% of what you are currently paying to your creditors. This seems to
be one of the huge selling points these companies use to convince consumers to user
their debt negotiation service.

Who wouldn’t want their monthly credit card payments cut in half? Keep reading
because it comes with a price!

Another advantage is that by using a debt negotiation service you may be able to save
between 30-80% off your credit card debts or most unsecured debts. Which could
mean that you could save thousand even tens of thousands off your debts. Sounds
pretty nice, right? ……………once again, it comes with a price.

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Okay, so you’re wondering what is the “Price” I keep referring to, well here it is. Most
debt negotiation/settlement services will charge you thousands of dollars to negotiate
settlements on your credit card and unsecured debts. Many of these companies will
charge between 10-30% of the amount of debt you are looking to get help with.

So if you owe $40,000 in debt and a company charges you, on the low end, only 10% of
your debt, you would end up paying this company $4,000 to get help with your debts.
That’s money you could use towards paying off your debts on your own.

Many of these companies will also charge monthly fees and settlement fees, which
could also cost you thousands of dollars over the course of time. If you’re in debt,
chances are you don’t have thousands of dollars to pay someone to help you with your
debts and you don’t have to.

So although having someone help you in dealing with your debts and possibly being
able to save thousands off your debts may sound appealing, it could also cost you
thousands of dollars to receive that help. Even though I cover this as being an option in
dealing with your debts, I strongly advise against it, in fact I even wrote another FREE
Report giving you 10 reasons why you should never use a debt negotiation service.

If you didn’t receive this report and you are interested in receiving it, please send me an
email to jason@thedebthelpguy.com and I’ll send it to you.

In conclusion Debt negotiation is a great option to dealing with your debts, but you don’t
have to use a debt negotiation service to help you, because you can actually do
everything they can do and not have to pay a company thousands of dollars to help you.

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OPTION 5: SETTLE YOUR OWN DEBTS & SAVE
Previously I talked about using a debt negotiation/settlement service to help you with
your debts and hinted at some of the advantages of using one of these services, such
as saving thousands – even tens of thousands off your debts, becoming debt free in as
little as 12-24 months as opposed to decades etc.
I also covered the fact that most of debt negotiation/settlement companies will charge
you thousands of dollars to help you with your debts and I sort of hinted at the fact that
you can do everything they do, yourself.
That’s right, everything that a debt negotiation/settlement service claims they can do for
you, you can actually do on your own, without paying one of these companies
thousands of dollars to help you.
You Can Easily Negotiate Your Own Debts and potentially save thousands off your
delinquent credit card and unsecured debts. All you need is the right tools; knowledge
and support to help you successfully negotiate with your creditors and debt collectors.
If you’re looking for a way to become debt free and save thousands off your debts
without paying someone thousands of dollars of your hard earned money to help you,
then there is an alternative solution for you.
On the following page is a link to a “Powerful Money Saving” program that will show
you the “Inside Secrets, Techniques & Strategies” that debt negotiation/settlement
services use to help consumers with their debts. The only difference is, this program
won’t cost you thousands of dollars as using a debt elimination service would.
Debt negotiation is considered to be the #1 bankruptcy alternative and this system has
helped thousands eliminate their credit card and unsecured debts for pennies on the
dollar saving them thousands and can help you do the same.
Most individuals can usually save up to 70% or more off their credit card debts and can
usually settle all their credit card and unsecured debts in as little as 12-24 months as
opposed to 5-15 years. Imagine being able to pay off your cash draining credit card
debts for a small fraction of what you owe. What would you do with all that extra cash?

==> CLICK HERE FOR MORE INFORMATION

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OPTION 6: BANKRUPTCY (LAST RESORT)

If your financial situation is very serious and you’re struggling to even afford your priority
household expenses, such as your rent or mortgage payments, grocery, and utility
expenses, then your credit cards should come last and you may want to consider filing
for bankruptcy.

Maybe you’ve been told that bankruptcy is the easiest way to eliminate your debts,
hopefully you've also been told that it also the most painful. You could lose your
home, your car and still wind up owing people money. Legal fees are expensive and
judges don't always show compassion.

Bankruptcy could wipe out a significant amount of debt in about four months if you filed
Chapter 7, but it isn't a good idea for those who have substantial property and assets
that they want to keep. In fact, if you have property and assets you may not even qualify
for bankruptcy under the new “Means Test” that is required for consumers to take
before they file for bankruptcy.

Bankruptcy should be considered as a last resort and there are other viable solutions to
dealing with their debt that should be explored before a consumer even consider filing
for bankruptcy.

Every option that I’ve covered has its pros and cons and bankruptcy is no different.
Some of the pros and cons of bankruptcy are:

Pros--

1. If you qualify, you can liquidate many unsecured debts, such as credit card and
medical debts;
2. If their bankruptcy is a simple one, the whole process will be over in about six
months to a year;
3. Can be a good solution for those with limited income, no property, few assets,
and a modest net worth;

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Cons--

1. Consumers may now have to take a “Means Test” as well as 6 months of credit
counseling if they past the means test in order to file for bankruptcy.
2. They may not qualify if there has been any recent activity or purchases on their
credit cards in the past few months;
3. Might have to liquidate their assets or sell their home;
4. It is not a good alternative for those with expensive possessions or if they have a
substantial amount of equity in their homes;
5. Will have a bankruptcy notation on their credit report for 10 years, which will
result in having a hard time getting financing for the next 2 to 3 years, and what
financing is obtained will usually be at a higher interest rate.
6. If they hire an attorney, it will cost them at least a $1,000 for a simple bankruptcy
and $3,000 to $5,000 or even more for a complex one.

As you can see, bankruptcy has a lot of cons and this is why bankruptcy should only be
considered after exploring all of your other options. If you feel that bankruptcy is your
best option, then you should consult with a knowledgeable legal professional to discuss
your options and to determine if you qualify.

A lot of individuals who are struggling financially and dealing with their debts decide to
use debt negotiation as a viable means to dealing with their debts, most have great
success in saving thousands off their debts.

If you are looking for a proven method to eliminate your credit card and unsecured
debts and you want to save a ton of money doing so, then do yourself a favor and check
out the information on the very next page and “Discover The Secrets Creditors Don’t
Want You To Know” and “Start Saving Yourself A Ton of Money Today!

Regardless of what option you choose, I hope you made the right choice for you and
your family and wish you the best of luck in your journey of becoming debt free.

Sincerely,
Jason Oswald
Jason Oswald
“The Debt Help Guy”

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