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.
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?
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