Almost Half of America is Living Paycheck to Paycheck
The Corporation for Enterprise Development (CFED) has released information stating that 44% of people in America have less than $5,887 in savings for a family of four. Less than that amount of money can disappear quickly when there are 4 mouths to feed. Liquid assets are crucial if you hit a tough patch. Considering spending habits, this means that nearly half of americans are living paycheck to paycheck. And none of this is even considering the amount of debt many of us may have.
That’s a scary thought!
You can peruse the CFED findings yourself at the following link: http://assetsandopportunity.org/scorecard/
- Takes your existing debt and try to settle with your creditors for a lower amount. If you pay off the settled amount, your debt will be considered paid in full.
- Negotiates with your creditors on your behalf.
- Fee based on a percentage of your total starting debt or a percentage of the debt they save you.
- Most settlement companies have you create a separate "escrow" account where you will make monthly contributions over a certain amount of time to contribute to your settlement. Once there is a substantial amount of funds to show your creditors, the settlement company will try to negotiate a lower amount of debt.
- Combines all your debts and creditors into one monthly payment.
- Allows you to pay one monthly payment to the consolidation company, instead of multiple payments to different creditors.
- You no longer owe your original creditors; instead you pay one monthly payment to your consolidation company.
- Consolidation companies can help negotiate lower interest rates on your debts and help lower your total debt payment in the long run. A lower interest rate will lower the amount you owe in the end.
- Allows you to consolidate all your different debts into one personal loan that can be paid off over time.
- Can offer borrowers a lower interest rate with a longer payback term (compared to high-interest credit cards or medical bills). This will lower the amount of money required to pay off the loan over time.
- Personal loan debt consolidation can be an effective way to raise your credit score quickly (within 3-6 months).
- Borrowers can receive funds from their loan within only a few days.
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