Yet this type of people are vulnerable to economic ups and downs. These people credit is acceptable in fico score and Radio for income to debt. I.e. that they have the ability to be able to pay its debts if clipped extra expenses that handle. Banks usually give them a little more ease in personal loans or for medium-sized purchases. This classification is where the majority of homeowners are concentrated. This kind of people, in the event of economic stability, always give priority to your home, thus pushing them to stop paying, their insurance, then your credit cards and loans personal and at the end, before you stop paying your House, they lose their cars.

Usually such people incur in more problems by having properties and lose their economic capacity. These people have three options to get out of debt bankruptcy, which the judge surely ruled that the customer can pay its obligations and after having carried out the credit counseling program is assigned the chapter 13 where prompted to reach an agreement of payment which will virtually keep you in the pit where he was before but now without any chance of applying for credit for more than 5 years and with the impossibility of applying for a loan to start a business of life. Consolidation, these companies freeze debt (closing the account, which is a bad thing to credit but as reworking the customer in anyway give equal) and reduce a 20% interest. This means that if you have an interest of 23% and reduce him that 23% 20% which will be reduced in average interest to 18.4%. I.e. above 4 percentage points in reality is not of much help and if you add the consolidation company fees, because payment is practically the same but with the negative of having closed the account.

The radius of cancellation of this type of program is 75%. I.e. from 100 people who come to these programs only 25 not cancelled. And of these 25 people only 10 get reduce your interest more than 20% mentioned above. Customers who could not or did not want to complete this type of programs end up going to bankruptcy or debt settlement. The negotiation of debt for these customers option is only for when they are already behind on their payments or know that already will be delay. It must be remembered that the debt settlement is the program where to reduce total balances of the debts. The interest is not reduced because the payments have to be delayed until there is a negotiation. Success is high in this type of programs, especially as the economy is. Such programmes should last less than 30 months to achieve effective negotiations and without otherwise affecting the customer. Once more, we recommend the debt-free company call them at 1-800-213-9968. At the end you should know as you are and no blog, commercial or adviser will come you to tell you how it feels to be in debt. You should know whether you can pay or live check to check or not. Try to be free of debt as soon as possible, because 70% of divorces come from economic problems and 50% of heart attacks are caused by financial problems.