The latest applicant has asked some really good questions about debt service relief and the associated costs. Debt relief service costs are real and they are charged by the companies that will help you with your debt solution. How much they cost really depends on just how much debt you have and what option or options you eventually decide on as solutions to your debt problems.
We always like to first learn how much debt the customer has and what it is costing him or her today. The customer should know this as well. Unfortunately this applicant only told us that they had credit card debt. Credit card debt is usually in the 20% range for most bank credit cards and 30% for store based credit cards. For example on forty thousand dollars of credit card debt, this client might be paying as much as $8000 a year in interest charges alone. Compared to a 7% loan, that charges interest on the declining balance this is very expensive. Remember that store credit card debt has even higher charges.
Debt releif service costs can include the following, again depending on the solution that is selected. There are transfer fees to transfer the debt to a new loan, hopefully at lower interest rates. There may also be registration fees and miscellaneous processing fees. There may also be an annual management fee for as long as the company is managing your debt. There will be also an interest charge on the outstanding debt which should be much lower than the rate that was paid on the credit cards, unless your credit rating indicates that you are a high risk client. In this case fees and interest rates my be higher to reflect the high risk that comes with a bad credit rating.
As a consumer who is in this kind of situation, they need to compare the costs they are currently paying along with the monthly payments to the total fees and monthly payments they would pay under a debt relief situation. This comparison should tell them which is the better solution. Neither solution is going to be very good, however you are selecting the best one available given your situation.
DEFAULT LOAN APPLICATION FOR BORROWER’S INFORMATION
Home/Mortgage Loan Amount :: $40,000
Do you currently have a mortgage? :: no, I rent an apartment in a highrise
Bank Name and Branch :: Wells Fargo, Gene Autry
What City/Town, State and County do you live in? :: Palm Springs, California
What is your employment field? :: I am a property manager for a local condominium
Employment Position :: Property manager
When are you paid? (monthly/weekly/biweekly):: biweekly
Your credit rating to be – excellent, fair, or bad? :: not very good probably, but I am not sure what it is really
How did you find us? :: Looking for debt relief service solutions and costs online
How are you paid? (direct deposit/paper check):: direct deposit to my checking account
Gross Amount Per Paycheck ::$ 1846
Do you agree to have this information published online, without your PRIVATE information of course? :: sure, I am desperate and I do not want to lose my job
Extra information here please (some detail):: I have gotten myself into a real problem and I am really not sure where to turn. I have somehow accumulated a lot of credit card debt and now it is beginning to cost me a lot of money in monthly payments and also interest charges. I make payments every month and yet I cannot seem to reduce the amount that I owe. I finally did smarten up and stopped charging to my cards, but I cannot seem to reduce the balance. I am looking for debt relief and wondering how much do debt relief services cost? Would I just be making the problem worse or would one of these companies really help me?
Note to Lender :: I have three credit cards and they each have a large credit limit on them. Unfortunately I have charged them all up to the maximum. One card has a ten thousand limit on it while the other two have fifteen thousand dollar limits on them. I wish the credit card companies had never increased the limits so much. They start off with low limits when you first get the card and then they increase the limits as you use them. Next thing you know they have really high limits and you have charged them to the full amount. Who can pay off ten thousand dollars in a month let alone two other cards at fifteen thousand each?
I need a debt solution or at least debt relief so that I can get it under control. I work as a property manager and do not make the kind of money to pay these kinds of amounts off quickly, so I know that it will take a few years before I can get out of this problem I have created for myself.
What will the monthly payments be? What will the fees be? And is this a better debt solution than just continuing to make the monthly payments on the credit cards?
|Category: Home Mortgage Loan||APR 7%||APR 7%||APR 7%|
|Length of Term||5||5||5|
|Amount to be paid||$23,557.67||$35,336.50||$47,115.33|
|Total interest paid||$3,557.67||$5,336.50||$7,115.33|
|Paid per installment||$387.25||$580.87||$774.50|
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