How Long Will You Suffer the Burden of Bad Debt?

Overwhelmed by too much debt? Emergencies, illnesses, and family matters happen to all of us. It's called life. We have answers to help you get your financial life back on track.

You're NOT alone. Some chilling debt statistics:

  • The average household carried nearly $8,700 in credit card debt in 2008

  • Consumer debt in 2008 stood at $2.6 trillion

  • Each year, roughly 2.0 to 2.5 million Americans get help from a credit counselor

  • Most folks seeking help have experienced a job loss, an illness, the illness of a close loved one, or a divorce / separation.

  • The average person had $43,000 in debt, of which $20,000 was consumer debt and $8,500 was revolving debt when they decided they needed help

  • There were 1.5 million consumer bankruptcy filings in the 12 months ending in June 2006

When is enough enough?

It's never too late to start creating a plan to get out of debt. The good thing is, you don't have to do this alone. There are professional services companies out there that can assist you in reducing your debt. Some - pennies on the dollar!Reduce my debt

FREE debt help - You could reduce debt to just pennies on the dollar

  • Reduce your credit card debt 50%
  • Avoid bankruptcy
  • Homeownership not required
  • Be debt free in 12-36 months
  • Make one low monthly payment
  • Pay off debt faster
  • Free, no obligation consultation
  • Reduce your stress

Managing your debt - good vs. bad debt.

When it comes to debt, there is good debt and bad debt. Good debt is usually associated with the purchase of an appreciating asset, like a home. Think of this debt more as an investment whivh is expected to increase in value over time. Secured loans are loans that are associated with something tangible like a house or car. Another good rule to keep in mind is that good debt is also usually associated with a lower interest loan. Generally, the higher your credit score, the lower your interest rate. If you have a loan now with a high interest rate then you should consider repairing your credit and refinancing at a lower rate. Make sure you review your credit report for any innacuracies that could be dragging your score down. You can get a copy of your free credit report here. Increasing your credit score could mean hundreds of dollars in savings every month. Couldn't you use the extra cash in your pocket?

Bad debt is usually associated with credit cards or other forms of unsecured debt. Unsecured debt is debt that is not directly backed by something tangible. In other words, you can't sell this thing to pay off the debt. Credit card debt is the biggest type of unsecured debt.

If you're knee deep in debt. Now is the time to buckle down and put a plan together. You don't have to live in debt forever. Get free debt help from professional services that exist solely to help individuals and families get out of debt.

Own a home and need a lower rate?

Are you looking to pay less every month when it comes to your mortgage? Perhaps it's time to take a closer look at your credit. Negative items may be keeping your score low. By removing negative and inaccurate items, you may be able to increase your credit score and refiance your loan at a lower rate, saving you hundreds every month.
Call 1-800-292-0204 for your free credit consultation or sign up for one here.

The letters below are REAL credit reports with negative listings legally deleted. This couple went on to not only purchase a home, but got a low rate to boot!

Lexington Law helped to delete the negative items above. See what they can do for you. FREE Credit Consultation.

How does credit repair work?

Credit repair consists of two phases.
  1. Removing the negative listings from your credit report
  2. Adding new, positive listings
Since most creditors will reject you if you have even one or two negative listings, your first priority should be to repair any negative listings.

For instance, after bankruptcy your credit report will show many negative listings including the bankruptcy filing, bankruptcy discharge and numerous "included in bankruptcy" listings. (such as any credit cards included in the bankruptcy)

While removing a bankruptcy from your credit report is no easy proposition, it is possible and surely worth the effort.

Top 5 most damaging negative credit items - double check your credit report for these items

Charge Offs - a charge off often results in two negative listings - one from the original creditor and any successive collection agency

Judgment/Public Record - a judgment can often attach to your home or personal assets

Collection - even a single default can lead to a string of collections on your credit history

Bankruptcy - a bankruptcy remains on your credit for up to 10 years (this is 3 additional years as compared to other types of delinquency)

Repossession - repossessions are a major headache when applying for a mortgage or car loan

“Spot” demonstrates the value of having good credit in today's world

What Spot gets with having “POOR CREDIT

More loan rejections
LESS home for more $$$ because he only qualified for a loan with a much higher interest rate
HIGHER interest rates on loans and credit cards for the same end product = more money lost

What Spot gets with having “GOOD CREDIT

More loans approvals
MORE home for the same amount of $$$ because he was able to get a loan with a lower interest rate
LOWER overall interest rates on loans and credit cards = more money saved