Your potential debt solutions

Overview
Credit counseling
Debt consolidation
Cash-out refinance
Debt settlement
Bankruptcy
Do it yourself

Overview of debt options

How much do you owe?

Expected monthly payment
Number of months
Total costs (includes interest)
Total savings (versus min mo payments)
Expected interest rates
Maintain/improve credit score (w 12 mo compliance)
Keep making minimum payments...
Do nothing
0
0
0
ZERO
16 - 24%
Credit counseling
A counselor helps you lower your interest payments
0
0
0
0
6 - 10%
Debt/home equity consolidation
All your debts are bundled into one single loan
0
0
0
0
4 - 6%
Debt settlements (Best solution*)
Eliminate interest and reduce principal on your debt working with credimac
0
0
0
0
0%

If you are encountering challenges getting your bills paid every month and require reasonable debt relief, credit counseling can possibly be a great option for you.

The amount of debt you owe is not reduced by credit counseling. But rather, a credit counselor can prepare a relatively cost effective payment plan and provide lower interest rates that have been fully pre-negotiated with your creditors. With the help of credit counseling, you have the chance to enroll in a Debts Management Plan (DMP), although for a fee.

A DMP is known as a systematic way to have your outstanding debt paid down through payments to your credit counseling agency on a monthly basis, which is also saddled with the responsibility of having the funds distributed to your creditors. This is not the same as with debt resolution since your debts are not resolved for a reduced amount and the plan payments scheduled per month could be greater than your present minimum payments.

This is a strategy that could assist in protecting you from the actions of creditor collection and could keep you from delinquency. It could be a great choice for you in the event that you can afford the monthly payments, your debt amounts is reduced, and/or remain current on a minimum of a credit card.

In any case, if you are presently going through the stress of making minimum payments and find it inconvenient, with the consideration of the associated costs with credit counseling every month, then this option may not be the best for you.

If you’d like to discuss your options more, please call our Certified Debt Consultants by telephone at 833-422-3378 or by email at support@credimac.com

Pros:
  • No collection calls
  • One monthly payment
  • Lower fees and rates
Cons:
  • Closure of credit card accounts
  • No reduction in principal debt
  • Lenders may see you as credit risk

Making the choice to move high interest debt directly to a lender offering lower interest rates can possibly save on interest and get your monthly budgeting simplified.

If you are paying multiple creditors monthly and you’re overwhelmed, you may want to consider consolidating your debts and getting them paid off with a personal loan or a debt consolidation loan. Debt consolidation allows you to make only one payment per month to the lender.

Making single payment for your debts can be perhaps convenient, but you really should consider the entire cost. Personal loans and debt consolidation may mean a lower monthly payment, but it may also mean putting one of all your assets in jeopardy as these loans usually entail collateral.

The moment you agree to the loans’ terms, you agree to give up the asset to the lender if you are unable to get the loan repaid. Therefore, if your collateral is your car or your home (and it must be something of considerable value), then you are at the risk of losing them if you fail to make payment to your lender. This is a trade-off: additional risk for you and your lender is at a lesser risk, which implies a beneficial interest rate.

What if you do not have collateral?

After all, everyone is not a homeowner. Only a few lenders offer unsecured loans where collateral is not needed, however, their interest rates are typically higher due to the lender is bearing more risk. Additionally, high interest loans paid over a long repayment schedule can possibly add up to so much money – in addition to the debt you presently must pay.

Keep in mind that with a loan, your debt is not totally paid off – you are only paying off previous debt and the old debt is taken away by new debt. This strategy could be a wise one, but that’s if you can qualify for a loan interest rate that is relatively lower than the interest rate(s) you are presently paying.

Debt consolidation is not the best option for every individual. If you can’t afford a large amount of debt (a minimum of $10,000) then going into consolidating is probably not the a best solution.

Deciding on the right debt solution can be arduous, but Credimac Debt Relief is readily available to assist you make a choice after weighing the options.

If you’d like to discuss your options more, please call our Certified Debt Consultants by telephone at 833-422-3378 or by email at support@credimac.com

Pros:
  • Flexible terms
  • Flexible terms
  • One predictable payment per month
Cons:
  • Results vary
  • Require good credit
  • No principal reduction

For homeowners, another tool to pay off your unsecured debt and consolidate your bills into a single monthly payment is a cash-out refinance.

The cash-out refinance option is generally suitable for homeowners who maintain a consistent flow of income, good credit, and adequate equity in their home. Combine the amount of your debt to the mortgage balance you are refinancing, and you can make use of the additional cash to pay off all your creditors. Your unsecured debts are now paid, but now it has been added with your mortgage and your home equity is lower.

This is an option that makes sense, especially if you have many high-interest credit cards, considering that secured loans such as mortgage typically come along with a reduced interest rate. It additionally offers you the chance to refinance at a lesser interest rate when compared with your original loan.

It’s difficult to do this on your own, therefore you should work with a lender, just like a typical mortgage financing. The moment the mortgage has been approved and also (re)financed, you can make use of the extra cash to settle your debts.

Just as a cash-out refinance can be an incredible way for your debts to be paid, there are associated risks to put into consideration. Since this is a secured loan, it is particularly important to maintain your month payments in order not to risk losing your assets, which in this situation would be your home.

Additionally, bear in mind that there may be additional costs involved with refinancing. Between closing costs, appraisals, and other related fees, it can possibly result in a greater overall cost.

If you’d like to discuss your options more, please call our Certified Debt Consultants by telephone at 833-422-3378 or by email at support@credimac.com

Pros:
  • Tax-deductible interest payments
  • High interest debts paid off
  • Reduced monthly payments
Cons:
  • Contributes to mortgage debt
  • Require to own a home
  • High foreclosure risk

For consumers battling with a lot of unsecured debts, settlement services and comprehensive debt negotiation are necessary.

Debt Settlement is also regarded as debt resolution or debt negotiation, and it is made for individuals who can’t pay the minimum costs and/or are thinking about credit counseling or bankruptcy. It provides a relatively low program deposit per month and might assist people in resolving debts very quickly. It generally does not apply to secured debts, like an auto loans or mortgage.

An organization that offers debt settlement usually does not try to negotiate lower interest rates for you or send any payments you make to your creditors. Rather, it tries to negotiate directly with your creditors to agree for less than the remaining balance of the debt. At that point, you make payments for the lower amount of the debt.

If you registered in a debt settlement program, you will have to make payments per month into a dedicated account. Once you’ve accumulated enough in your dedicated account, the debt settlement organization gets in contact with your creditors and tries to negotiate settlements for you. Generally, these organizations can get your interest rate reduced (even to zero) and reduce your principal amount owed.

Based on the amount you owe and the person you owe, your debts could be settled in a minimum of 24-48 months.

Credimac has a unique approach to debt settlements. We don’t have a “one size fits all” approach. We take a deep look at your debt, your situation, and your goals to design a program tailored for you towards success. And, we don’t charge you any fees until the negotiation of your debt settlement is successful.

If you’d like to discuss your options more, please call our Certified Debt Consultants by telephone at 833-422-3378 or by email at support@credimac.com

Pros:
  • Much faster
  • A low monthly program deposit
  • Reasonable savings for making minimum payments
Cons:
  • Results obtain vary
  • Legal risk, effect to credit
  • Debt collection calls

Because of the devastating effect bankruptcy can have on your credit and way of life, it is usually considered your last resort.

In the event that you are simply do not have the financial resources to cover any of your debts, bankruptcy may be the best decision.

Some types of bankruptcy include:

Chapter 7

This type is the most popular form of bankruptcy filed in the United States, and can usually absolve you of any duty to pay your unsecured debt. It’s like a financial reboot or beginning your financial life from the scratch. However, the consequences can be severe. This could tarnish your credit for many years, and all your assets may be sold to repay your debts. The Chapter 7 bankruptcy cannot clear you of any debt related to a federal student loan or most tax obligations. If there is any balance you have on these, you will still have responsibility for making those payments. Qualifying for Chapter 7 has become much more difficult since The 2005 Consumer Protection Act and The Bankruptcy Abuse Prevention began stricter means testing.

Chapter 13

Since it’s now difficult to qualify for Chapter 7, more individuals are left with no other option than to consider Chapter 13. In the event that you decide to file for Chapter 13 bankruptcy, you will still eventually need to get some or your debts repaid over time, however, in some cases, some of the debts you have to pay may be reduced. The moment a repayment plan has been prepared, payments have to be made to the court. At this point, the court distributes the funds to your creditors as directed by a court-appointed trustee. It can be an extremely intrusive procedure.

Additionally, the time and costs are higher for Chapter 13 bankruptcy, when compared to Chapter 7. However, homeowners who are savvy enough to prepare a repayment plan alongside their bank might have the capacity to keep their home.

These two types of bankruptcy will seriously harm your credit; therefore, deciding to file for bankruptcy must not be taken lightly. Consult a licensed attorney in your jurisdiction prior to settling on this option.

Regardless of fact that you may feel bankruptcy is your last option, there might be another alternative.

If you’d like to discuss your options more, please call our Certified Debt Consultants by telephone at 833-422-3378 or by email at support@credimac.com

Pros:
  • The process can take up to 3 to 6 months (Chapter 7)
  • Creditors are prevented from trying to collect on debts
  • Debt obligation can be possibly cleared (Chapter 7)
Cons:
  • To qualify for Chapter 7 may be hard
  • Critical, long-term damage can occur to the credit
  • Losing all credit cards

This could possibly be the best solution for you if you have the capacity to pay beyond the minimum balance due per month.

Making your minimum payments may make you look great on paper or your credit score, but it can also be expensive. You avoid late fees, not being reported as delinquent to the credit bureaus, and can usually maintain a solid credit score. So what’s the problem? Interest. You make a really, extremely heavy payment for making just your minimum payments.

Basically, minimum payments are the way credit card companies make money. The moment you make just the minimum payment, a huge portion of your payment goes towards your finance charges or interest.

Just making the minimum payment on your accounts is a very expensive long-term proposition. Interest owed and fees pile up rapidly and may even result in making payments beyond what you initially owed. Also, it typically can take as much as 30+ years to pay off. If you are battling with debt, it is probably time to look for help.

There are various online resources and tools that can assist you in the calculation of the interest and principal payments required to get the debt paid off by a specific date. However, if you find yourself battling with paying the minimum on your accounts, then this strategy may not be suitable for you.

Rather, you can settle on debt resolution as a better alternative. The structure of Credimac Debt Relief program is made in a way that the deposits of your monthly program could be lesser than your present minimum payments. That implies that you could be working to settle your debt, while typically saving money every month.

If you’d like to discuss your options more, please call our Certified Debt Consultants by telephone at 833-422-3378 or by email at support@credimac.com

Pros:
  • No credit effect
  • Optimized payments
  • No required costs
Cons:
  • No principal reduction
  • There’s no change in interest rates
  • Needs strict budgeting

Credimac can offer low monthly payments, reduction of debt, and interest rate reduced to ZERO.

Or call 833-422-3328
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