Debt Consolidation Florida

Resources to resolve ​debt

If you're facing an overwhelming amount of debt, you're not alone. Half of American families are living paycheck to paycheck and are unprepared for a financial emergency. One illness or change to income can push you to the brink of financial ruin. 

It's important that you prioritize paying off debt so that, should an emergency happen, you have disposable income that can be used to keep your family afloat. That being said, there is good news. Consumers have many options ro relieve the burden of debt. Here, we outline 8 of the most common strategies for resolving debt so that you can determine which is the best choice for your situation. With each option, it's important to evaluate your unique situation and remember that results vary.

Strategy How it Works Pros Cons

Minimum payment

Through budgeting and discipline, and the use of tools, you can start making the necessary payments to repay your debt.
  • No credit impact
  • Requires time and discipline
  • Repay full amount plus interest
  • Minimum payments can take decades to pay off debt

Credit counseling 1

A counselor will review your situation, help you budget, attempt to lower interest rates and create a management repayment plan.
  • Potentially, pay less interest and fees
  • Help with budgeting
  • Accounts are closed
  • Shows on credit report
  • Balances not reduced

Debt consolidation 2

Consolidate your debt into one loan to pay off all of your debt, ideally with a lower interest rate and affordable monthly payment.
  • Single monthly payment
  • Generally better interest
  • Requires good credit
  • Repay full amount plus interest

Bankruptcy 3

A legal process to relieve you of your debt obligations. Chapter 7 and Chapter 13 most common bankruptcy types used by consumers.
  • Creditors cannot attempt to collect.
  • Generally a quick process
  • Debt is no longer owed.
  • Can be difficult to qualify
  • No longer able to use accounts
  • Long term damage to credit
Our Speciality

Debt Resolution 4

Make a single monthly payment for a predetermined term. A company then negotiates with your creditors to settle for less. The settlement and fees are paid with the funds from your monthly payments.

  • One low monthly payment
  • Spend less time in debt
  • Significant savings
  • Reduces the amount owed and required to pay.
  • Increased collection activity
  • Temporary negative effect on credit
  • Settlement results vary
Our Speciality

Takeout Loan

After six or more months enrolled in the debt resolution program, clients can qualify for an unsecured loan to pay off all of the accounts at our settled rates. The Takeout Loan combines the benefits of a consolidation loan with our new reduced settlement offers.

  • Settle accounts at reduced rates
  • Low single monthly payment
  • No creditor calls
  • Accounts being paid results in a speedy credit recovery
  • Temporary impact on credit until approval

401(k) Withdrawal 5

A retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes are not paid until the money is withdrawn from the account.

  • Quick Access to funds
  • 10% early withdrawal penalty for those younger than 59 ½
  • Puts retirement in danger
  • Lost opportunity for tax-deferred growth

Home Equity Line Of Credit (HELOC) 6

A home equity line of credit, also known as a HELOC, is a line of credit secured by your home that gives you a revolving credit line to use for large expenses.

  • Instant access to funds
  • Interest rates are often lower than revolving accounts
  • Your home is at risk. If you use the money from your HELOC and cannot afford to pay it back, you could be in danger of losing your home.
  • Unpredictable payments. Variable interest rates mean that if interest rates increase, so will your payment.
  • Fees & Penalties. HELOCS can come with annual fees, prepayment penalties, cancellations and inactivity fees.
  • You risk not having available equity for a major life event (such as a death or job loss).
  • MINIMUM PAYMENT
  • CREDIT COUNSELING 1
  • DEBT CONSOLIDATION 2
  • BANKRUPTCY 3
  • Our Speciality DEBT RESOLUTION 4
  • Our Speciality TAKEOUT LOAN
  • 401(K) WITHDRAWAL 5
  • HOME EQUITY LINE OF CREDIT (HELOC) 6

HOW IT WORKS

Through budgeting and discipline, and the use of tools, you can start making the necessary payments to repay your debt.

PROS

  • No credit impact

CONS

  • Requires time and discipline
  • Repay full amount plus interest
  • Minimum payments can take decades to pay off debt

HOW IT WORKS

A counselor will review your situation, help you budget, attempt to lower interest rates and create a management repayment plan.

PROS

  • Potentially, pay less interest and fees
  • Help with budgeting

CONS

  • Accounts are closed
  • Shows on credit report
  • Balances not reduced

HOW IT WORKS

Consolidate your debt into one loan to pay off all of your debt, ideally with a lower interest rate and affordable monthly payment.

PROS

  • Single monthly payment
  • Generally better interest

CONS

  • Requires good credit
  • Repay full amount plus interest

HOW IT WORKS

A legal process to relieve you of your debt obligations. Chapter 7 and Chapter 13 most common bankruptcy types used by consumers.

PROS

  • Creditors cannot attempt to collect.
  • Generally a quick process
  • Debt is no longer owed.

CONS

  • Can be difficult to qualify
  • No longer able to use accounts
  • Long term damage to credit

HOW IT WORKS

Make a single monthly payment for a predetermined term. A company then negotiates with your creditors to settle for less. The settlement and fees are paid with the funds from your monthly payments.

PROS

  • One low monthly payment
  • Spend less time in debt
  • Significant savings
  • Reduces the amount owed and required to pay.

CONS

  • Increased collection activity
  • Temporary negative effect on credit
  • Settlement results vary

HOW IT WORKS

After six or more months enrolled in the debt resolution program, clients can qualify for an unsecured loan to pay off all of the accounts at our settled rates. The Takeout Loan combines the benefits of a consolidation loan with our new reduced settlement offers.

PROS

  • Settle accounts at reduced rates
  • Low single monthly payment
  • No creditor calls
  • Accounts being paid results in a speedy credit recovery

CONS

  • Temporary impact on credit until approval

HOW IT WORKS

A retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes are not paid until the money is withdrawn from the account.

PROS

  • Quick Access to funds

CONS

  • 10% early withdrawal penalty for those younger than 59 ½
  • Puts retirement in danger
  • Lost opportunity for tax-deferred growth

HOW IT WORKS

A home equity line of credit, also known as a HELOC, is a line of credit secured by your home that gives you a revolving credit line to use for large expenses.

PROS

  • Instant access to funds
  • Interest rates are often lower than revolving accounts

CONS

  • Your home is at risk. If you use the money from your HELOC and cannot afford to pay it back, you could be in danger of losing your home.
  • Unpredictable payments. Variable interest rates mean that if interest rates increase, so will your payment.
  • Fees & Penalties. HELOCS can come with annual fees, prepayment penalties, cancellations and inactivity fees.
  • You risk not having available equity for a major life event (such as a death or job loss).