Other Debt Relief Options

Debt Consolidation

A Debt Consolidation Loan is one of the most common solutions people think of when they fall into financial difficulties. This can be a problem for some, because some people who obtain a debt consolidation loan find themselves in much deeper financial trouble than they were in to begin with. A debt consolidation loan will not reduce the amount you owe. You will still have to pay back 100% of the loan plus interest. The interest rate may be lower than before, but this is because debt consolidation loans are secured loans, and this is a HUGE PROBLEM. Once you sign up for a debt consolidation loan, you have just gone from an unsecured debt to a secured debt and have put your personal assets at risk. Now if you can't pay your bills, your creditors can come and take your property away from you.

Consumer Credit Counseling

Consumer Credit Counseling (CCC) programs have a greater than 70% failure rate. Not all creditors work with credit counseling companies, which means you will have to handle those creditor accounts left out of the program on your own.

The main problem with consumer credit counseling organizations is that they are not working for you, they are WORKING FOR THE CREDIT CARD COMPANIES. This may seem unbelievable, but it is true. Most consumer credit counseling agencies are alleged non-profit organizations that claim to be independent. But in fact, these non-profits are funded and supported by the very people you owe money to - the credit card companies. That is why consumer credit counseling companies do not negotiate your debts balances down. All they do is bring your interest rate down a little because they want you to keep paying the full balances.

In BlueChip Debt Relief's "Fresh Start Debt Relief" program, your debt balances will be settled for lower amounts based on your current financial capabilities. This will save you thousands of dollars compared to consumer credit counseling programs where you’ll pay the full balances plus interest. Also, our programs can be as short as 3 years, so you can be out of debt 2 years faster and for a fraction of what you'd be paying into a CCC debt management program.

Why not become debt free as soon as possible, as opposed to being stuck in a consumer credit counseling program for two more years? As soon as you learn about the alternatives, the decision becomes easy to choose BlueChip Debt Relief's "Fresh Start Debt Relief" program.

Continue To Make Minimum Credit Card Payments

Sadly, this is the choice for millions of Americans who are struggling with their debts. Most of these people keep doing whatever they can to continue making minimum credit card payments for the rest of their lives, including subsidizing their expenses by using one credit card to pay the others. If you are only meeting your minimum payments, you are paying almost entirely interest charges and not paying down your actual debt balances. If you are using your credit cards to subsidize your expenses, you may be in a negative cash flow situation and NOT EVEN KNOW IT. This is a no win situation. And if you can't keep making the minimum payments, the creditors will start calling. If you ignore their calls, you can end up with judgments and garnished wages as well as liens against your property.

BlueChip Debt Relief has programs that are designed to resolve and settle your debts based on your financial capability, not so-called industry averages, so you can move on with your life. We will structure a debt settlement program for you that you can afford, given your current financial capabilities. This monthly amount is typically a fraction of your current monthly credit card payments. After enrolling in BlueChip Debt Relief's "Fresh Start Debt Relief" program, your life becomes very simple. All you have to do is set aside this affordable amount each month into your own bank account. Final settlement agreements will be conveyed to you, which shall be performed at your direction.

Bankruptcy

Chapter 13 bankruptcy plans have a greater than 60% failure rate. Although bankruptcy is a way to potentially get out of your debts, it leaves a long lasting scar, and comes at a high price - financially, emotionally and socially. It can be 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 could be impacted. The long-term effect of higher interest rates can greatly outweigh the shorter-term impact of filing bankruptcy. Additionally, most people do not realize that bankruptcy is a matter of public record so others can find out about it. If you apply for a job, a loan, rent an apartment, or even apply for insurance, your bankruptcy filing could be easily uncovered. What's more, with the new bankruptcy reform bill, it has become much more difficult to declare Chapter 7 bankruptcy. If you are seriously considering bankruptcy, you should contact a lawyer to discuss this option.

At BlueChip Debt Relief, we believe bankruptcy should only be considered as a last resort. To potentially avoid bankruptcy, call us toll free at (888) 9 DEBT RELIEF (888-933-2873) to find out if you qualify for our "Fresh Start Debt Relief" program and exactly what your monthly payments will be. One of our professionals will review your financial situation and determine a solution based on your current financial capabilities that will fit into your budget and help you avoid bankruptcy.