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I’m Having Second Thoughts About Signing Up With Preferred Financial Solutions. – Sarah

“Dear Steve,

I recently signed on with Preferred Financial Services to help me settle my debt of $18,000. After reading your review and a healthly number of others, Im having second thoughts on this decision and feel I should cancel my contract with them. I have a stable job and make $70,000 a year. I have always paid my credit card bills and my credit is good as of now. I dont want that to change. Im wondering if there is a better way to go than relying of a debt settlement company.

Fondly,

Sarah”

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The Answer

Dear Sarah,

Well first off, before you do anything, let’s review your situation and figure out what is the best path for you to follow.

You seem to be aware of your credit history and credit standing and your credit is important to you. If so, no debt settlement program is going to get you out of debt without negatively impacting your credit.

If you are making the minimum payments the best way to lower your payment and get out of debt faster would be to look into a debt consolidation loan from LendingClub.com. An unsecured debt consolidation loan may just give you the breathing room you need while actually improving your credit.

The next intervention with the least impact would be a credit counseling solution. A debt management plan can lower your interest rates while you continue to make approximately the same monthly payment you are now. That credit cards you include in the credit counseling program would be closed and that will not help your credit history moving forward.

If you can afford your minimum payments but don’t want to get your cards closed but do want to get out of debt in the shortest period of time without a debt consolidation loan then look at the free service provided by ReadyForZero. They offer a guided way to pay off your cards the quickest and fastest way.

Debt settlement will have a severe impact on your credit but if you are in a dire situation and need to resolve your debt for less than you owe and you are willing to tax the credit hit and possibly wind up with a tax bill, that’s the best time to consider it.

Are you struggling to get by or do you just want to eliminate your debt quickly?

Post your responses and updates in the comments section below.

Big Hug!

Im Having Second Thoughts About Signing Up With Preferred Financial Solutions.   Sarah
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Settle First

    Steve, I am with you 100%. Sarah needs to diagnose the problem before looking for the solution. Sarah, your income is significant, but that’s relative, so… First off, go through your budget. Figure out how you can apply more toward each payment. I know it sounds elementary, but every Starbucks counts. You wouldn’t believe the things people forget on their budget when they call us. Those little things add up!

    Next, As Steve suggested, a consolidation loan is the easiest way to go, hands down. And at $18k in debt, you may be able to find one. Even if it’s not for the entire amount, a smaller payment to a new loan paying off some of your debt means that you can make larger payments toward your remaining debts.

    I wont get into the Debt Management plans as Steve covered that pretty well. But know this: As the CEO of a debt settlement company, Debt Settlement it isn’t for everyone. It’s for people who are struggling. Don’t “stop making your payments and enroll a debt settlement program” – the benefits of handling your debts without a debt settlement program far outweigh the savings you will experience if debt settlement works for you if you have the means.

    Debt Settlement is for people who have had affected credit due to falling behind, or are barely able to make minimums and are going without necessities to avoid a late payment. At that rate, Debt Settlement could be a viable option. If you are still current and have good credit you have way more options than you may know.

    I am only assuming you are not in dire straits from the tonality in your message doesn’t sound like the typical “help me” from a debt settlement customer. Be careful who you get help from; it doesn’t sound like you are ready for a trip down the Debt Settlement path- be happy about that.

    You’re in good hands with Steve.

    Best of luck,

    Jonathan Harstad

  • http://twitter.com/SettleFirst Settle First

    Steve, I am with you 100%. Sarah needs to diagnose the problem before looking for the solution. Sarah, your income is significant, but that’s relative, so… First off, go through your budget. Figure out how you can apply more toward each payment. I know it sounds elementary, but every Starbucks counts. You wouldn’t believe the things people forget on their budget when they call us. Those little things add up!

    Next, As Steve suggested, a consolidation loan is the easiest way to go, hands down. And at $18k in debt, you may be able to find one. Even if it’s not for the entire amount, a smaller payment to a new loan paying off some of your debt means that you can make larger payments toward your remaining debts.

    I wont get into the Debt Management plans as Steve covered that pretty well. But know this: As the CEO of a debt settlement company, Debt Settlement it isn’t for everyone. It’s for people who are struggling. Don’t “stop making your payments and enroll a debt settlement program” – the benefits of handling your debts without a debt settlement program far outweigh the savings you will experience if debt settlement works for you if you have the means.

    Debt Settlement is for people who have had affected credit due to falling behind, or are barely able to make minimums and are going without necessities to avoid a late payment. At that rate, Debt Settlement could be a viable option. If you are still current and have good credit you have way more options than you may know.

    I am only assuming you are not in dire straits from the tonality in your message doesn’t sound like the typical “help me” from a debt settlement customer. Be careful who you get help from; it doesn’t sound like you are ready for a trip down the Debt Settlement path- be happy about that.

    You’re in good hands with Steve.

    Best of luck,

    Jonathan Harstad

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