Free Credit Report Repair Guide

Pay off $49,000 in credit card debt in 5 years.

Have you seen commercials and internet advertisements offering to eliminate your debt in just a couple short years? No matter how much debt you have? Does it seem to good to be true? So what is the deal? Well there are two methods that can achieve this type of radical debt pay off.

The First method is debt settlement:

DEBT SETTLEMENT or DEBT NEGOTIATION:
“You make an offer to your lender to pay off 30% to 50% the current balance you owe. This is pre-collection agency. This process can take 6 months or more and it’s not for the weak of heart.”

This method can work to get you out of debt but it will trash your credit. It’s a trade off and some see it as an alternate to Bankruptcy.

The Second Method:

DEBT SNOWBALL or DEBT ROLL-UP:
“The overview for this program is you pay more a month than your monthly minimum on one debt while you stay current on all your other debts. You start applying the extra money every month to the smallest balance, and once that balance is paid off you apply all the money from that debt to the next largest balance. This will create a snowball effect in paying off your debt.”

This method is championed by the likes of Dave Ramsey and John Cummata.

If you would like to read a real life story about people who got really motivated and paid off large amounts of debt in a short period? Check out this article and get a bit of motivation.

Technorati Tags: credit card debt, DEBT SETTLEMENT, DEBT NEGOTIATION, DEBT SNOWBALL, DEBT ROLL-UP, Dave Ramsey, John Cummata

This entry was posted on Monday, November 13th, 2006 at 8:51 am and is filed under Debt Relief . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.