Debt Elimination Program
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Debt elimination programs come in a variety of forms through a variety of for profit and not-for-profit organizations which can be accessed online or in a local business area. A debt elimination program usually consists of a debt settlement agreement or a filing of bankruptcy. Bankruptcy law can only be learned and advised through a practicing attorney, however many financial service companies have an attorney on staff to offer the assistance necessary to determine if bankruptcy is right for specific individuals. It is important to note that filing for bankruptcy does not pay off the debt, nor does it release the consumer from all types of debt.
For example: Student loan debt cannot be eliminated through standard bankruptcy proceedings. Income to debt ratios are also taken when considering, through a debt elimination program, whether to file for bankruptcy or not. These programs provide the debtor with all of the information and tools necessary to make the debt process more understandable and easier to work with. American consumer debt has surpassed 2 trillion dollars. This means that help should be available to every consumer regardless of age, income, employment, previous credit, or any other unfair disadvantage.
Most debt elimination programs are free of charge to the debtor. If the financial firm wants to make money, they will get it from the creditor. The creditor typically will pay the debt elimination program a percentage of any monies received as payment from the debtor. Debt settlement negotiations are a way for debt elimination programs to receive payment. A debt settlement is an agreement between the debtor and creditor using a third party (the debt elimination program) to negotiate debt balances to a lower amount in order to be paid as one lump sum. The typical percent range a debt elimination program will receive is between 5% and 20% of that lump sum.
The Lord God said in the book of Romans 13:8 "owe no man anything". God knew that a debtor is in slavery to the creditor until the debt is paid off. Debt causes so much undue stress, anger, and anxiety that it robs us of our joy and freedom in life. We can only serve one master. The goal of Christian debt elimination programs is to ensure that God is that one master. It is recommended that before enrolling in any programs, a consumer review the complaints and ratings of the program through the BBB or Better Business bureau. The BBB can be fully accessed online.
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