Why Debt Resolution is the Best Option For You
One of the most common unifying factors in America is personal debt. It’s estimated that the average household carries over $130,000 in debt. This includes mortgages, car loans, student loans and most alarmingly, credit card debt. Of this figure, it’s estimated that the average American has over $15,000 in credit card debt. This figure is a serious wake-up call that shows just how heavily we rely on credit.
If your personal debt is starting to get out of hand, if your creditors are calling or if you are no longer able to make your minimum payments, you could benefit from a debt resolution plan. These programs work with people to reduce debts and help get you back on track to financial stability.
A New You is one of the most trusted debt resolution companies in the U.S. because of our proven methods, empathy, and passion for helping our clients.
Why is Debt Such a Serious Problem?
It’s safe to say that everyone has some debt, whether it’s a mortgage, car payment or student loan. In today’s society, accumulating manageable amounts of debt is often unavoidable. The problem comes when the debt becomes too much to handle. This is why credit card debt is such a serious issue. After the recession of 2008, many people relied on credit cards to get through hard times. Now, as the cost of living goes up exponentially, the wage growth has stayed relatively even, meaning that cost of living is now higher than ever.
Credit cards make it very easy to buy now and think later, however with high-interest rates, sometimes getting as high as 24%, it’s more difficult to make significant payments on the principal of the card. Credit card minimum payments often only cover interest and carrying a revolving balance means you are being charged that interest on a daily basis. After a while, the cycle becomes too much to handle, and a debt resolution program becomes the most viable option to resolve the debt.
Other factors that contribute to personal debt include rising medical costs, rising interest rates, feeling societal pressure to live beyond your means or experiencing job loss or other emergency cash-flow situations.
Erasing the Stigma
While debt is extremely common in our society, it’s still viewed in a negative light. Admitting to being in serious debt and needing help with debt resolution is often viewed as a sign of failure. People are embarrassed to discuss their financial hardships and sometimes avoid the situation completely. The topic of debt is often seen as taboo and many Americans plead ignorance when it comes to the state of their personal debt. Some ignore the issue out of fear or embarrassment in admitting they need help. One of the goals at A New You is to erase this stigma attached to debt. Getting debt resolution help is not shameful or embarrassing.
In fact, admitting you need help is the first step to bettering your financial situation and living a life that is debt-free. We speak openly about debt since we know it’s something that affects us all. At one point or another, everyone has felt difficult financial times; even our highly trained analysts and founders have experienced it. This is what makes debt resolution with A New You so different; we are empathetic towards your situation and can help from experience.
What Kinds of Debt Relief Options are Available?
Each person has a different experience with debt. We are all unique, so it makes sense that the best debt resolution program will take into consideration your individualized needs. At A New You, our analysts thoroughly review your file to ensure the best solution for your problem. When it comes to resolving debt, several options are available. Each option has its own set of pros and cons. When deciding the best option for you, it’s important to look at all the facts from every angle.
This is a popular choice for clients who want to avoid the public record of bankruptcy. With this option, your creditors are paid an equitable amount of the debt owed to them over a period of 1-4 years. We negotiate on your behalf and provide a sustainable plan to help get you out of debt. This approach is often considered a more aggressive option, but in the long run, it’s usually most beneficial since it allows you to save more.
We always recommend bankruptcy alternatives to the two main types of bankruptcy. Chapter 13 Bankruptcy is most common and involves paying back your creditors. Chapter 7 Bankruptcy is more difficult to qualify for as it completely wipes any debt from your name. If you’re considering bankruptcy, it’s important to find an attorney who specializes in it, since there are many ins and outs of the laws that can make it difficult to qualify.
As one of the more widely advertised debt resolution options, credit counseling involves negotiating one monthly payment that gets split between your creditors. Often, this is a lower monthly payment than you would normally make, or it is at a lower monthly interest rate than you would normally pay. This option involves paying back the balance owing in full. However, it can adversely affect your credit score.
Debt Consolidation Loan
This option is definitely not the favored method to resolve debt. It involves getting a loan large enough to cover all your debts, essentially trading a bunch of smaller debts for one big debt. It also means that you will still pay your entire debt off with interest. These loans are also dangerous because once your accounts are paid down to zero, you may be tempted to charge on the accounts again, essentially doubling your debt.
How Does Debt Resolution with A New You Work?
When you call A New You for help with debt resolution, you are putting your trust in a company with a proven track record of resolving debt and helping clients. After admitting you need help, you will be accepted into our program and assigned an analyst to your file. Once the expert analyst has reviewed your file, they will contact you with follow-up questions to get a better idea of your situation. Right from the start, openness and honesty are encouraged. We are on your side, and easy communication between your analyst and you will ensure we can help make the best decisions on your behalf.
Your analyst will then provide you with several debt resolution plans to choose from. You have the power to choose the program that works best for you. Since the journey is about making you comfortable and taking care of your debts, we want to make sure you are happy with the plan we provide
Once the program is selected, we will begin to put aside a set amount of money per month in preparation to settle your accounts. The amount per month and length of time of your program are all set by you. Of course, setting aside more per month means you will be out of debt sooner. As this is happening, we will contact your creditors on your behalf and negotiate a settlement. During this time, our account managers will be in contact with you to ensure things are going well and provide you with progress updates.
As your account begins to accrue money, the account will mature. Once there is enough money in the account to cover the settlement, we will contact you and let you know. Typically, creditors reach for two types of settlements, a term settlement, which involves you making a monthly payment to the creditor for a set term, or a lump sum payment, which involves one payment to bring the account to zero. Regardless of the settlement reached, once it’s been made your account will be brought back to zero and the debt resolution plan is complete.
Signs of a Reputable Debt Resolution Company
With the increasing number of people seeking help with debt resolution, many programs and companies are cropping up claiming to be able to get rid of your debt. Choosing a company to work with can be difficult. One thing to consider when deciding on a company to handle your debts is the method of payment they accept. Keep in mind that all companies who deal with resolving debts must make money somehow; even non-profit services have fees. Whether it’s an upfront fee or a fee hiding in an interest rate, you can be assured that you are somehow paying for this service.
This is why we often do not recommend debt consolidation services. These services offer simple loans with the interest being paid at the start of the term. Non-reputable companies who offer these services often charge additional interest or receive kickbacks from the banks or creditors. Banks prefer these loans to other debt resolution methods because it protects their best interests and makes them more money.
At A New You, we protect your best interests, rather than work for the bank. Similar to other reputable companies, we do not charge an upfront fee and instead charge a flat rate percentage of the total debt included in the program. This transparent pricing strategy protects our customers and is aligned with our goals to put the client first. We also offer a “Pay per Performance” structure, which puts our payout in line with your savings. In other words, we don’t get a penny unless you see results.
Other Reasons to Work with Us
In addition to providing solid debt resolution advice and debt resolution help, A New You remains one of the most reputable debt resolution companies in America. Industry professionals with over 16 years of combined experience formed our program after realizing that millions of Americans are struggling every day with personal and unsecured debt. Wanting to provide alternative options to consolidation loans and bankruptcy, our program was borne out of the desire to create something better for our customers while providing trusted advice and help from people who care.
A New You is also accredited by the American Fair Credit Council (AFCC) and works in accordance with their strict code of conduct. The AFCC began in 2011 to protect consumers and advocate for the fairness, transparency and trustworthiness of debt resolution businesses. Since its inception, the AFCC, and all accredited partners have helped resolve over $2 billion worth of debts in the U.S. Further proof that our methods work.
Call Us Today for Expert Debt Resolution Advice
Ignoring your debts is a surefire way to develop bad credit or even repossession of your car or home. The first step in getting help is admitting you need it. If you have lost track of how much debt you’re in, or if you are struggling to make your minimum payments, you could benefit from debt resolution solutions. A New You can help provide an individualized program designed to get you out of debt sooner.
Our proven programs can take the stress out of being in debt while saving you money on future interest payments. We have your best interests in mind when we negotiate a settlement for you.
For more information about our services and programs, call 888-835-4088 or fill out our online form and get in contact with one of our expert financial analysts. Financial freedom is just around the corner, so put an end to the cycle of debt today and call us now.