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An Alternative to Consumer Credit Counseling or a Debt Consolidation Loan

Our Debt Negotiation and Settlement Program can help you get out of debt in a few short years, and you will only pay approximately 55% of what you owe, including our fees. If you are experiencing a financial or personal hardship, that is hampering your ability to pay your bills, some of the options you have are:

1. Filing bankruptcy. While bankruptcy is a legitimate route to get out of debt, it negatively affects credit from 7-10 years.

2. Consumer credit counseling. These programs can take 6 years or longer to complete and you still pay back 100% of the debt plus interest. You also can be kicked out of their program if you miss a payment. (See below for more information on CCCs.)

3. Debt consolidation loan. This only works if you have good credit and equity in your home. If you have overbearing debt, then you likely do not have good credit. Also, you do not get out of debt; you only rearrange it. And why would you want to jeopardize your home by converting your unsecured debt to secured? If something happened, you could lose your home. (See below for more information on these loans.)

4. Continue minimum monthly payments to credit card companies. This can take 30+ years to pay back, cost thousands in interest alone and require you to pay back over three times what you now owe. This is the slowest and most costly way to get out of debt. (See below for more information.)

OR

5. The Debt Negotiation and Settlement Program - one of the quickest, most effective ways to eliminate your debt at a fraction of the cost. If you want to get out of debt, complete our online application to see if debt negotiation and settlement is right for you.

Your actual results will vary depending on many factors, including what you owe, how much you can pay per month, and for what percentage your creditors are willing to settle.

The projection assumes the following:
The $30,000 debt is composed of four separate debts owed to different creditors: Two $3000 debts, a $10,000 debt, and a $14,000 debt.

  Minimum Payments: Credit Counseling: Debt Shield's Program:
Payment: 2% of debt/month $628.00/month $573.00/month
Term: 36 years 5 years 2.5 years
(This could be adjusted to two years with a $675 monthly payment or three years with a $495 monthly payment, depending on your needs.)
Interest rate: 17% 10%  
Total Cost: $96,569.09 $41,846.57

With this program you would save $54,722.00 over making minimum monthly payments.

$16,750.50

With Debt Shield's program you would save $79,818.59 over making minimum monthly payments.

Debt Consolidation Loan or Home Equity Loan

To get a loan, you must have the ability to pay and a good credit score. Even if it could happen, your situation would only get worse. Instead of helping you get out of debt, a consolidation loan may increase your debt. Here are some more facts that you might not know about consolidation loans:

  • You must qualify. Those who qualify are usually not debt settlement candidates.
  • It requires ownership of a home or a pledge of collateral.
  • A transaction fee is usually required upon closing or built into the interest rates.
  • Missing payments could cause you to lose your home or the collateral you pledged.
  • You would pay back the full amount of credit card balances, plus interest.
  • Payback can be 10-20 years depending on debt balance and your ability to pay.
  • You are exchanging your unsecured debts for a secured debt.
  • The home equity loan reduces the future equity available in your property.
Continue to Make the Minimum Payments or Don't Pay Anything at All
  • You would pay nearly 50% of your original balance in interest alone over the first 3 years. You wouldn't be making a dent in your principal balance.
  • Interest rates are usually 15% or higher and creditors can raise rates at any time.
  • If your interest rates are 25% or higher, it is literally impossible to pay off your debt by making minimum 2% payments.
  • With a high interest rate, it would likely take you between 20 to 40 years before becoming debt free.
  • Until you pay off these debts, your ability to get any other credit is substantially hindered.

If you have already stopped making payments to your creditors, you are destroying your credit without eliminating any of your debt in the process.

Disclaimer: Debt Shield, Inc. does not provide legal, tax or investment advice. Debt Shield, Inc. does not assist in the repair, modification, improvement, extension or correction of credit entries or reporting.

Don't go for a debt consolidation loan or consumer credit counseling. Instead, consider our debt consolidation and settlement program. It's one of the most effective ways to eliminate your debt.