Debt Elimination

Learn more about debt consolidation programs and start eliminating debt today.

What is Debt Elimination?

A debt elimination plan focuses on all unsecured debt. A good plan strives to eliminate this debt in a period of up to 3 years. Most importantly, it concentrates on eliminating debt for the lowest possible cost. This is achieved by contacting all creditors to whom you owe unsecured debt and negotiating the lowest possible price to settle these debts. Payments are then issued to these creditors monthly.

Why is this negotiation important? If you do not actively strive to eliminate debt now, and simply pay off monthly charges - or worse yet - pay off nothing, your debt continues to grow at an alarming rate. Doing nothing to eliminate debt means it will take you 15-20 years to pay off any debt already owed, and it will cost 3 times the money than it would if you have a debt consolidation strategy in place. This is the case if you don't incur any new debt. Any new debt simply makes these alarming numbers even worse.

What debt elimination requires is a financial commitment from you - and a solid plan from professionals.

Debt Elimination Services

There are literally thousands of companies and "not for profit" debt elimination services available today. Who you hire to work to eliminate your debt is the first vital step to being successful. Careful consideration is required. Did you know that the majority of not for profit debt elimination programs are sponsored by banks and other huge lenders? In other words, they exist because the very creditors you want to negotiate with subsidize them. Are they working for you - or for your creditors? In addition, most of these debt consolidation services automatically report to one or all of the CRAs, informing them that you are participating in their debt consolidation programs. This information impacts your credit report for up to 7 years, and is viewed as negatively as filing for Chapter 13 bankruptcy by your future creditors. Understand these risks by visiting our page on debt consolidation services.

Good Debt Elimination programs work with you as an individual. These programs work for you - not your creditors. Using the services of licensed attorneys and/or paralegals is the best decision you can make. Not only do you have genuine lawyers on your side - you have their years of expertise in negotiation. Letting your creditors know that you have qualified legal professionals on your side is the first step to showing your creditors you are serious about eliminating debt, and also serious about getting the best negotiated deal possible.

Eliminating debt from Unsecured Credit

Understanding the type of debt that can be eliminated is important. There are two primary 'types' of debt - unsecured debt and secured debt. Debt elimination programs focus on unsecured debt, defined as "debt that is not tied to property". Unsecured debt includes:

• credit cards

• Medical Bills

• Repossessions

• IRS

• Judgments Garnishments

• Finance Companies

• Personal Loans

• Attorney Fees

Secured debt is tied to property, for example, debt owed on a house or a car. Creditors can issue foreclosures or repossessions in order to regain this collateral in the event of default. Secured debt is not addressed through debt elimination programs.

It is critically important to understand what your unsecured debt is costing you. Only then will you truly appreciate the need to obtain professional debt elimination advice now.