Welcome to Rock Bend
Consumer Credit Counseling
Consumer Credit Counseling (CCC) companies were first started by the credit card industry to provide debt relief to the enormous amount of people who began to fall delinquent on their payments. The majority of credit counselors and credit counseling agencies are paid a commission from your creditor based on how much debt they can recover from you and they may also charge a service fee.
In some cases, the debt help of a true nonprofit credit counseling agency and credit counselor may be helpful, as the interest rate reduction may be enough to alleviate the financial strain a consumer faces. Nonprofit credit counseling agencies also require you to learn how managing debt in the future will help you live debt free
Debt Management Plans
A reputable credit counseling organization will help you set up a debt management plan. A debt management program is a way to roll all your payday loans and other unsecured debt into one payment. It is not a way to consolidate debt as there is no loan and it is not settlement because you still pay the full amount and full interest rates.
However, all too often the debt management plan's monthly payments required by a credit counseling organization can be too high for many to afford. The monthly payments can be as high, or higher, than the minimum payments a consumer was paying prior to enrollment with the consumer credit counselor. Once you start the program they will contact your creditors and enter you into a “Hardship Program” or debt management plan.
Bankruptcy / Consult an Attorney
Today, more than ever, people are filing personal bankruptcy as a way of getting away from the burden of their debt. Statistics show that the number one reason people are filing for bankruptcy is the harassment and pressure from companies trying to recover their money. For some people, bankruptcy is the only realistic options for debt relief.
The biggest benefit of bankruptcy is that this approach may provide immediate relief and can put an immediate stop to the harassment. In some cases, all of your unsecured debt is forgiven and you can get a “clean slate”.
New laws were passed that make it considerably harder and less desirable to file for bankruptcy as a way out. With this in mind, even if you are able to file for bankruptcy, there is a good chance you will still have to pay some or all of your debts over a period of time. On the plus side, bankruptcy does offer some financial protection for your home and some income.
To determine what type of bankruptcy you may qualify for we strongly encourage you to speak with an attorney in your state. Only a licensed attorney in your state can review what debt help is available to you through bankruptcy.
Debt Consolidation Loans / Credit Card Debt Consolidation
When falling victim to financial problems, debt consolidation loans are one of the most common debt solutions people think of for credit card debt consolidation. In some instances, this option may be a good fit for you if you have excellent credit and can obtain a personal loan with a much lower interest rate and a manageable monthly payment. However, many people who choose to go this route may find themselves in much deeper financial trouble then they were to begin with.
Most consolidation loans issued through a financial institution are secured by collateral, such as your house, car or other personal property. By obtaining this type of loan all you are really doing is exchanging an unsecured debt for a secured debt that you will still need to pay interest on. Another downside is that it may put your assets in an accessible position for the loan company to go after in the event of default. In this case, all the leverage shifts over to the creditor.
This option can make sense if you can obtain a new credit card debt consolidation loan with a much lower interest rate and a payment the comfortably fits within your budget.
Only Making the Minimum Payments
Unfortunately, if you are struggling to meet your monthly payments, just making the minimums or behind on your payments, you may be in a situation where your debt will take many years to pay off — if at all. By simply paying the minimum each and every month, as much as 85% of your payments are going to interest and it may take you 25 years or more to pay off your debt in full!
In the long run, paying the minimum is not a solution to your financial situation. Consumers should consider factors such as expected future income as well possible budget changes when determining whether it makes sense to try and pay off credit cards on their own versus other debt solutions such as debt settlement or bankruptcy.
For instance, if a consumer is expecting to be making more money in the near future, or has simply had a temporary financial setback, continuing that minimum payment might make sense. Conversely, if someone is on a fixed income and has analyzed their budget, continuing to pay minimum amounts on debt payments may not make sense and other debt solutions such as debt settlement, credit counseling or bankruptcy may be appropriate.
Consumers may also wish to contact their creditors directly and attempt to negotiate lower interest rates or payment terms on their own prior to seeking other debt relief options. Some creditors will offer short-term hardship programs or lower payment terms. In many cases, creditors will not offer debt help unless the consumer is already past due.
Debt Negotiation
Debt negotiation maybe your best option to reduce your debt substantially. In a debt negotiation program, the debt negotiation company negotiates with creditors and debt collectors to lower the interest rate and the total amount owed. While you can do this on your own, a debt negotiation company knows which creditors are more likely to negotiate. Our debt negotiation programs work with most major credit card companies and have developed an excellent reputation for negotiating unsecured debt.
Most debt negotiation companies deal only in unsecured debt like credit card bills, medical bills, and personal loans. While debt negotiation is not for everyone, it can drastically turn around your financial situation.
If you are eligible for a debt relief solution and follow through with the requirements, you can be debt free within two to four years