Debt settlement is the fastest and least expensive way to get out of debt. Often referred to as debt negotiation or debt arbitration, Debt Settlement is a direct and ambitious approach to debt reduction and it is best suited for individuals that have considered filing for Bankruptcy.
How it works
Hutton and Dougherty negotiates with your unsecured creditors (Bank cards [Personal and Business], retail store cards, medical bills, judgments, personal loans, repossessions, etc.) on your behalf to settle for an amount much less than the balance owed. Once the settlement amount has been paid, the creditor will issue a letter to the credit bureaus stating the debt has been "Paid", "Settled", and/or "Settled for less than full amount."
With Debt Settlement, you get to move on with your life and rebuild. You won't have the stress associated with rude collectors threatening you of lawsuits, garnishments, or jail. When you choose Diversified Debt Solutions, you will immediately have peace of mind and start to see the light at the end of the tunnel.
If making your minimum payments is getting you no where but deeper into debt, then Hutton and DoughertyDebt Settlement program can help you to negotiate reductions on your debts, avoid bankruptcy, and come to an agreement with creditors on your terms, not theirs. By working through a plan based on your specific situation, we can typically settle your debts over the next 12-48 months, and potentially at a 50-70% discount to what you owe.
Credit Counseling
Involves working with the credit card companies to lower the interest being charged. With consumer credit counseling services a consumer can be debt free in 5 to 6 years and able to save some money on their high interest credit cards. Realize, however, that these companies are usually set up by the credit card companies in order to collect as much of the debt as possible. Don't be fooled by their non-profit status... all the profit they make beyond their operating expenses goes back to the credit card company. Also, when working with one of these companies, any debt that they help you with will show as TPA (third party assistance) on your credit report. In some instances, the strategies can be just as bad for your credit score and rating as a bankruptcy!
Debt Consolidation
Also called a Consolidation Loan, Debt Consolidation is the replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. Unfortunately the credit markets have tightened in recent months due to the fallout from the Subprime Mortgage crisis. The effect that it has had on Fair and Poor credit individuals is particularly concerning. Whereas a debt consolidation loan might have been available 6 months ago to these credit classes, there are no loans currently available. If your credit score is less than 660 your options for an unsecured Debt Consolidation Loan are going to be severely limited. If you own a home you have other loan options, but remember that these loans involve the risk of placing your home as collateral. By consolidating your unsecured debt with a home equity loan, you run the risk of losing your hard earned assets if you default on your payments. You will still pay the full balances on your unsecured debt and must have a low debt-to-income ratio to qualify. What's more, the costs of consolidation loans can add up. In addition to interest on the loans, most lending institutions charge "points" with one point equal to one percent of the amount you borrow. Still, these loans may provide certain tax advantages that are not available with other kinds of credit.
Do Nothing
The decision to reach out for help with your debt is not one that's easy to make. You were raised to "do the right thing", but now it's nearly unbearable. You struggle along while your creditors are turning up the heat. And now you're at the point where the late fees, penalties and interest expense make it impossible to keep your head above water. That's why you started looking for help. That's why you are reading this page. The worst thing you can do at this point is to Do Nothing. You owe it to yourself to speak with a Debt Management professional as soon as possible. Complete our Free Debt Evaluation form and you'll be contacted by a Debt Management professional right away. They will explain all of your options to you and you'll have the ability to make the decision that's right for you.
Bankruptcy
Bankruptcy is a way to potentially get out of your debts. Unfortunately, it leaves a long lasting scar, and comes at a high price - financially, emotionally, and socially. It is a long and painful process and the repercussions can last for over a decade. The financial impact is severe; a bankruptcy will stay on your credit report for 7-10 years. Every time you apply for credit, whether it is a home, a car, a lease, or insurance, you may be impacted. The long-term effect of higher rates may greatly outweigh the shorter-term impact of filing bankruptcy. Additionally, most people do not realize that bankruptcy can stay on their court records for over 20 years - which means it can follow someone for the rest of their life. If you apply for a job, a loan, rent an apartment, or even insurance your bankruptcy filing may be easily uncovered. Lastly, we have yet to find someone who is proud of filing bankruptcy so make this option your last resort.Bankruptcy is not an easy or even quick fix. It is a very serious decision with serious consequences. If you are considering bankruptcy, you should contact a lawyer to discuss this option.
