Debt Relief

Getting out of debt can be a major accomplishment.  As we understand, there are several options. There are many things to consider when contemplating your debt situation. Please take time and review the debt relief alternatives listed below as these will help you determine which option best suits your needs.

OPTION #1 – Your Least Painful Option

You can actually eliminate your credit card debt for just pennies on the dollar.  We have been helping families since 2002.  Our process is not widely known and the negotiators will never tell you about it…  Check out your options and let us know your questions…  Office hours 9-5 Mountain time, 940—762—9667  US and Canada Only.


A bankruptcy can stay on your credit report for seven to ten years (dependent on the type of
bankruptcy and state obtained). It can make it very difficult to obtain future credit, buy a home or
car and sometimes even get a job. Almost every creditor, lender, and employer asks if you have
ever filed bankruptcy. Due to the severity of this option I would consider it as a last resort.
You can Wikipedia’s Definition of Bankruptcy here.


This option may work if you have good credit and a large amount of equity in your home.
However, please remember that by going this route you will convert your unsecured debt (credit
cards, etc.) into secured debt, which puts your home in jeopardy. If something was to happen and
payments are missed or late, you could lose your home. Also consider that if some other
emergency came up and you needed some money, where will you turn if your equity is already
used up? In addition, when establishing credit, more often than not, you will be advised by a financial planner that applying for a home equity or debt consolidation loan should be a last
resort to remedy any negative financial situation. Don’t turn your home into Debt!


These companies will negotiate for you with the creditors. Usually they will negotiate the debt
down to around 35%-50%. They are only legal in some states! Their fee is usually 15% of the
total amount of debt that you have. They will have you save up money in your own account or
have you send them the money to save for you (in this case they will make the interest on your
money). When an amount is settled upon with the creditor, the settlement company will send a
lump sum to zero out the account. There’s One Big Problem: They neglect to tell you that you
could be sued later by a debt collector.


Also known as Debt Management Programs (DMPs) or Debt Consolidation Programs. These
programs typically take about 5-7 years to complete. You are usually charged a setup/enrollment
fee in addition to monthly service fees for the duration of the program. Most companies also
pressure you to make ‘voluntary contributions’, another way to obtain more fees. Credit
counseling companies TRY to get creditors to lower their interest rates. Even if your interest
rates are lowered, most creditors will actually require your minimum monthly payment to be
much higher than it was before in exchange. You are required to send your monthly payments to
the credit counseling company, NOT directly to your own creditors. Because of the way this type
of program is designed, the following negative outcomes occur more often than you may think:
Even if you are never late or miss a payment to a credit counseling company, don’t forget that
once they receive your payment they are in control of your money. Unfortunately, this means any
mistakes, computer ‘glitches’, etc. can alter the day your creditors receive payment. Many
creditors have strict policies on dropping you from their program when payments are late or
missed REGARDLESS of whose ‘fault’ it was. After being dropped, you must start making your
own payments to the Credit Card Company or bank all over again. If the bank or finance
company does not receive a payment within six months, they will write if off their books and sell
it off to 3rd part debt collectors (you don’t want to deal with these nasty people). Credit
counseling companies are considered as a 3rd party agent, in control of your debt and money,
and will appear on your credit report as a 3rd party mark. This is typically viewed as an
equivalent to Chapter 13 Bankruptcy.


The purpose of consolidation is to bring together all your existing credit cards, store cards,
personal loans, and overdraft debts into one single loan or under one umbrella (agency). Since
the individual is already having difficulty, the credit record will reflect this as well. This results
in a consumer loan with a relatively high interest rate. The payment is lower than the total being
paid currently, however, the length of time to pay off the loan is significantly longer. This will
take several years. Some consolidation companies advertise their program will take 10 years.
This is actually based on the loan period, and the fact you must keep the monthly payments

Consolidation usually includes credit counseling through a credit-counseling agency of some
type. Credit-counseling agencies primarily negotiate unsecured debt, such as credit cards,
installment loans, retail finance plans, medical bills and personal debts. Contrary to popular
belief, credit-counseling agencies cannot force creditors to accept their proposals. Unlike a
lender providing a “debt consolidation loan,” when consumers consolidate their debt through a
nonprofit credit-counseling agency, the agency does not then become the creditor. In this regard,
the agency is, in essence, a conduit for disbursing payments to their client’s creditors.
The last form of consolidation is a Debt Reduction Settlement. This is a process used to settle a
debt for less than what is owed. The process is also called Third Party Debt Negotiation. If
negotiated properly on behalf of the debtor, it can reduce the consumer’s debt.

I’ve been told that settlements typically range from 40% to 80% of the current debt, with the
typical debt settled for around 50%. After a year, sometimes two, the individual in Consolidation
has not reduced his debt significantly. If a loan was secured with equity from the home, this
property is further tied up by a second mortgage. Usually, the consolidation consumer ends up
choosing Bankruptcy.


We recommend Identity IQ. This is a 7 days trial for only $1 and you can cancel anytime.  You get all three major credit reporting agency report plus all your credit scores.  If you’re working with a credit restoration company, you’ll want to keep the service for several months to watch your progress.

Every year you can get all three of your credit reports from Experian, Equifax, and TransUnion at but you won’t get your FICO scores. Scores are vital in determining how you will restore your credit ratings. This is the only site authorized by Federal Law.  This site it totally free. In other words you don’t have to purchase anything to get a copy of your credit report like the companies that advertise on television.

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