At Debt Direction we help you find the best possible solution for your unique situation. Not sure what would be best for you? Don't worry, we're here to help you figure it out.
Work with your creditor to agree upon a reduced balance, that will be considered payment in full.
Counseling can help resolve your poor financial habits, teaching you to be more responsible.
Otherwise known as debt negotiation or debt resolution, this option may be the perfect solution for you. Your provider will help you agree on a lower balance, which you will pay in full.
The company helping you will negotiate directly with the creditor to lower your outstanding balance of debt. You will make one monthly deposit into a bank account, and as the balance of that account increases, the company will contact your creditors to negotiate settlements for less than what you owe.
Pros: Reduce total amount owed, low monthly program payment, fees only on resolved debt, company acts as consumer's credit advocate
Cons: may negatively affect credit score, you may still be contacted by collectors
If you're making payments to many different creditors every month, debt consolidation might be perfect for you! Making one single payment for all your debts might be more convenient, but you'll need to remember that your interest rates might be higher, or you might have to leverage an asset of your own to secure the loan.
The most common type of debt consolidation loan is cash-out refinance. Qualifying people must have sufficient equity in homes, strong incomes, and good credit. This option shifts several of your unsecured debts into one, single new debt that is secured by an asset of your own, like your home.
Pros: possibility of lower interest rate(with secured loan), simplifies into one payment, makes larger debts are more manageable
Cons: personal assets(like your home or car) may be at risk, will not reduce your total owed, interest rates are not always lower
If you're having a hard time paying your bills each month, but you only need a moderate level of debt relief, this may be the perfect option for you!
A credit counselor can help you set up an affordable payment plan, as well as offer a lower interest rate that they pre-negotiated with your creditors. If you have more serious debt however, this may not be the best option for you.
Pros: assists with budgeting tools, negotiates lower interest rates with creditors, sends monthly payments to creditors, may not negatively impact your FICO score
Cons: must repay 100% of debt, must make timely payments each month, usually takes longer than debt settlement
Bankruptcy is often considered the option of last resort. It allows you to start over financially, but with enormous consequences. It is difficult to qualify for Chapter 7 bankruptcy, so must people file for Chapter 13 instead. With this option, you will still need to repay some or all of your debts, over time.
With Chapter 13 bankruptcy, you will negotiate a repayment plan with the court. You will then make payments to the court, which will distribute your money to your creditors, at the direction of a court appointed trustee.
Pros: (may be) best option for people with serious debt, more effective than other alternatives, cleared of obligations to repay unsecured debts(with chapter 7)
Cons: dramatically harms your credit, remains on credit report for up to 10 years, costs to file, difficult to qualify for chapter 7 bankruptcy.
"I was $60,000 in debt when I found DebtDirection. They helped me consolidate all my different debts into one easy payment. After two years, I am 100% debt-free!!"
"I made some bad decisions in my early 20's...after 5 years of fighting with debt collectors I had had enough. I used DebtDirection to help me declare bankruptcy and stop the harassment."
"It's never too late for debt counseling. I started with DebtDirection a year ago and I only wish I had signed up earlier."