Options

Let us look at the options available when dealing with your debt:

1. Do nothing and hope things get better
2. Debt consolidation
3. Enroll in a credit counseling or debt management program
4. File bankruptcy
5. Enroll in a debt settlement program

This option is, unfortunately, a popular route.

If you do nothing, you can expect more of the same: Frustration, despair, family tensions, financial gridlock, and possible health issues!

Francois and Associates would like to offer you welcomed alternatives: hope, support, education, and debt relief.

Check out our “Cost-of-Debt Calculator” to see exactly how much your unsecured and credit card debt is costing you.

Debt consolidation is considered by many when it comes to solving their financial woes. However, debt consolidation loans simply move your debt from one place to another. In the end, you will still pay back 100% of the principal (amount) due, plus interest.

In some cases a debt consolidation loan may offer a lower monthly payment and interest rate, but generally involves a longer repayment period. As a result, you could end up paying more before finally freeing yourself from debt.

If your consolidation loan involves applying for a second mortgage (equity loan) your unsecured debt now becomes secured debt and your assets are at risk should you default on this loan. Further, the recent reduction in property values and melt-down in the mortgage industry make it difficult to qualify for this type of loan.

Caveat Emptor: “You can’t borrow your way out of debt.”

Consumer Credit Counseling Services (CCCS) typically work with your creditors in an attempt to reduce interest rates and fees on your unsecured debt. There is no attempt to develop a plan to mitigate the debt owed.

In the end you will end up paying 100% of the debt owed plus interest, which generally requires a significantly higher monthly obligation than a debt settlement program.

Francois and Associates believes that in certain instances CCCS is a valid option and our recommendations would be based on the findings uncovered during a FREE consultation.

This is just another example of the value we provide consumers regardless of their enrollment status.

Filing bankruptcy for many a consumer is a worse case scenario. This option has the most negative effect on your financial future and should be carefully considered after all other options have been exhausted.

There are two types of bankruptcy options available to you the consumer. Chapter 7 involves the full discharge of your debts. Chapter 13 entails the debtor paying a percentage of the debt owed.

Recent bankruptcy reform by the government has made it tougher for many Americans to file for bankruptcy. If you do declare bankruptcy, all creditors will cease in their direct collection efforts. However, you should be aware that when a bankruptcy is discharged, it remains on a consumer’s credit report for 7-10 years.

Debt Settlement is an aggressive, effective alternative to the above mentioned debt relief options. It is important to note that debt settlement is not without its risks in resolving a consumer’s burdensome unsecured debt. However, by successfully completing the terms and obligations agreed to in a personalized debt settlement program that Francois and Associates prepares for you, a client can expect to see a substantial reduction in their total debt obligations.

1. A substantial reduction in the amount of debt owed.
2. Faster results
3. Regaining control of your financial future

1. A debt settlement program cannot guarantee specific results
2. You may be sued by your creditors
3. During the course of a debt settlement program creditors my still call until the debt has been settled
4. You may have to pay taxes on the debt that is forgiven by a creditor
5. There is generally a short-term negative impact on your credit score

We strongly recommend that your call us at 800-355-1082 to learn more about debt settlement and how Francois and Associates can help you.