Never get the impression that this blog will be about saving the BMW or Mercedes from repossession because I can tell you to cash out on them now while you can find some money to get adequate transportation. We are talking about owning the transportation you need to get your daily routine taken care of. If you are that caliber of person perhaps you should read The Millionaire Next Door to understand what I am talking about. The Millionaire Next Door gives you an idea of true wealth amongst high income people and that you do not necessarily need a big income to become wealthy. You will find nothing in this blog that will tell you I have any sympathy for those who have the need to keep up with the Joneses. It is a part of American Society that is more of a fable than the American Dream. In fact this is only the dream that advertisers and big banking want you to believe. I am tired of falling for their myths and tricks how about you?
Ok! You have gone through everything that you owe with the pay-off dates. Then look at your budget and think of what you can do without to pay back your debt and become solvent. Look to see if you own property and if you have some equity you can cash out on. When I say this forget about what your banker told you. Get banks and bankers out of your head. They only tell you what they want you to hear. Get an estimate of what your loan to value is on your property. If you have no property you can still follow this plan so please read on what I am going to tell you may surprise you.
Federal Credit Unions are for the regular everyday person. When the banks tells you they can do nothing for you means they lend to people that can secure their debt (wealthy people). Banks lend to the rich and big business and any unsecured debt is where they make their money by charging more for their services. Big banks are not interested in helping you pay less your debt unless you can secure these loans. Big Banks mean only secure loans with individuals yet they will take chance with big business investments as we saw in 2008.
Enough of that! If you can benefit from a lower payment and you are willing to sacrifice some credit card accounts a Federal Credit Union may be able to help you. If your credit score is at least in the high 600s you may qualify for an unsecured loan through a Federal Credit Union. You do have to prove that you can pay the money back. The criteria for Credit Unions are different from regular banks as far as lending. If you do have some equity in your property and a bank will not let you cash out again the criteria is different with a Credit Union. Credit Unions will go up to 90% loan to value on your property where banks will go only to 80% Loan To Value. Banks charge you processing fees for your financing where Credit Unions do not. This can make a big difference in what you receive in the funding you get in your loan. Not to mention all the loan programs with credit unions are fair with their interest rates and more tailored to the individual.
When all options are exhausted you may want to consider Debt Settlement. Debt Settlement at this point may or may not be better than bankruptcy. What you have to consider with Debt Settlement is the time it takes to get the negative entries off your credit report. Even if the accounts you settle are marked paid and current they will also be marked as settled and prevent your credit score from going up. It will take an additional seven years from the time all your accounts are settled to successfully get them off your credit report.