– Are you one of many consumers today who have been hurt by the recession and now find yourself drowning in debt? Then it’s important to make the right decision when it comes to choosing a debt consolidation program. At www.jemcreditcards.com, we can help you choose what’s best for your specific situation.
The airwaves are full of commercials today that promise to cut your debt in half and have you debt free in in 2 years. The companies making these claims are Debt Settlement companies. They normally promise to settle debts with your creditors for 40% to 60% of the principal you owe. These companies collect high up-front fees from consumers and then take monthly payments which are saved in an escrow account until enough is available to make settlements with their creditors. During this “saving time”, no payments are sent to the creditors at all.
There are few statistics available on the success rate of consumers in a Debt Settlement program, however, a survey by Colorado’s attorney general found that from 2006 to 2008, less than 10% of Colorado consumers successfully settled their debts through these programs. An investigation by the New York attorney general into an Arizona-based debt-settlement company found that only 0.3% of clients realized the promised savings*. Consumers typically find themselves in a worse situation after stopping payment to all of their creditors and allowing the fees and interest rates to grow out of control.
People who went through a failed Debt Settlement program like this end up filing for bankruptcy or find themselves with a judgment filed against them by one or more of their creditors. They are also thousands of dollars out of pocket in fees to the Debt Settlement company and their credit scores require years to recover.
www.jemcreditcards.com is a organization that can help you in making a smart financial choices that will keep you worry free. We can develop a payment consolidation program that works with your creditors to help you reduce your interest rates, eliminate fees, stop the collection calls and, best of all, you will have one convenient monthly payment that you can afford and be debt free in five years or less.
www.jemcreditcards.com is committed to empowering individuals to improve the quality of their lives through financial education and counseling.
If all else fails, seek out help from a debt reduction specialist or counselors who can help you formulate a plan for getting out of debt and staying out. Just make sure that you check out the service in advance. Many companies are simply taking advantage of Americans in debt and charging them high service charges.
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