New Vision Debt Relief

Debt Relief Options

Even though we believe our Debt Settlement Program is the best option for our clients, there are other alternatives to solving your debt. In order to assure that our applicants are making an informed decision, we are happy to educate you on all debt relief options. These alternatives include: credit counseling, debt consolidation, and bankruptcy.

Credit Counseling

Consumer Credit Counseling allows consumers who are experiencing financial hardships, and are unable to make minimum payments to reduce the interest rates and fees on their debts. While Credit Counseling organizations act similarly to our program, in that they negotiate with your creditors, in an attempt to allow you to pay off your debt by reducing such fees, the process is a much longer one, and can take up to five years. Also, you will be lowering the interest and fees on your debts, as opposed to your balances, meaning you will end up paying 100% of your balance, plus interest. This option would require you to pay a much higher monthly obligation in contrast to a debt settlement program.

When considering a Credit Counseling service, keep in mind that if the organization is non-profit, it may be funded by the same credit card companies you are making your payments to, it often becomes a conflict of interest if your Credit Counselors are collecting fees from you and your creditors alike. If you know that you can afford a high montly obligation, as those required in a Credit Counseling Program, then this may be the right option for you. If not, we advise you to take a look at other debt relief options.

Debt Consolidation

A Debt Consolidation Loan is the replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. Although Debt Consolidation is often a popular solution, it can actually deepen your financial burden. With a consolidation loan, your payments will appear lower but in actuality your are not reducing the amount you owe. In fact, you are still paying back 100% of the consolidation loan along with interest.

Most importantly to keep in mind, is that once you have enrolled in a debt consolidation, your loan will have gone from being an unsecured debt to a secured debt, which puts your personal assets, such as your home, car, at risk. Meaning, if you reach a point where you cannot pay your bills, your creditors will have the power to seize your personal property.

Debt Consolidation is a sure way of temporarily avoiding your debt problems. However, it can be a good option for someone who is not at risk of falling behind on payments, and can resist the temptation of charging up your credit cards that now have available credit. It is our strong recommendation as professionals, that those who are struggling to make payments, consider a more direct solution, such as Debt Settlement.

Bankruptcy

Bankruptcy should always be considered as a last resort option. The personal and financial repercussions of bankruptcy may be severe and all options should be carefully weighed before consideration. Once you  file for a bankruptcy, it will remain on your credit report for a span of 7 to 10 years. This will affect your ability to apply for credit for a home, a lease, a car, or insurance. Bankruptcy also can remain on your court records for over 20 years. It is a long and painful process that can haunt you for most of your life.

Bankruptcy is not a quick fix debt relief option. It should be taken seriously, and once should seek legal assistance before taking any further steps. There is a way to become absolutely debt free, without having to undergo painful personal and financial impact. Let New Vision Debt Solutions’ Debt Settlement negotiators settle your payments and free you from financial burden, without negative consequences. Don’t hesitate to contact us for a free, no risk consultation.