| The 29-Year Problem: MINIMUM
PAYMENT DUE
Each month, in millions of homes across
America, the scene is the same. Bill-paying time. If
you're like most people, seven of those bills are credit
card statements, each one demanding a MINIMUM PAYMENT
DUE. You do the math and realize the number you saw
on your bank balance will barely cover it. Again. Sound
familiar? The struggle just to make the minimum payments,
that battle between your credit card statements and
your checkbook.
Here's the problem. You might
win the battle, but you're losing the war. Why? Because
credit-card companies are in it for the long haul. That
MINIMUM PAYMENT DUE is designed to keep them in business,
now and far into the future. So even if you scrape and
stretch and emerge from this month's battle victorious,
you're in for a long war. How long? About 29 years.
And the worst part is, thanks to the interest you're
paying on those balances, you really haven't even won
the battle. Here's one more fact you won't easily find
on your credit card statement. That minimum payment?
The one you struggle to make each month? It's mostly
interest. Every month, you're throwing away hundreds
of dollars, and barely making a dent in your balance.
You're fighting a losing battle (see chart at right).
You know you have to take action.
Do something. But what? Unfortunately, most of the possible
solutions are more downside than upside. You could:
-
Get those balances down faster
by making more than the minimum monthly payments. Well, that's the whole
problem, isn't it? If you could, you would. Next?
-
Consolidate your debt. Debt
consolidation companies help you by combining all
your balances. You still owe the money, and you're
still paying the interest. Sure, it's easier to
write one check each month instead of three, or
five, or seven... but isn't that solving the wrong
problem?
-
Go to a credit counseling service. Again, the issue is the money! These nonprofit agencies
work to reduce your interest rate, but not your
balance. Sure, 15 years is better than 29 years...but
not by much. You need to owe less money. A lot less.
Next?
-
File bankruptcy. Okay, great! Your debts go away. Problem solved.
Except...recent legislation has made it much more
difficult to file bankruptcy. It stays on your credit
report for 7-10 years, but beyond that, most creditors
now ask if you have EVER filed bankruptcy. The process
can take months to complete, and lawyers don't come
cheap. If you could pay a lawyer, wouldn't you be
better off paying yourself?
Here's the good news.
There is a better way. A
way to reduce the total amount you owe. A way to reduce
your monthly payments. A way to get started without
spending a fortune up front. It's called debt settlement,
and it's what we do better than anyone.
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The Solution... |
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