Century First Credit Solutions has multiple specialists certified with the IAPDA (International Association of Professional Debt Arbitrators). Our mission is for every single CFCS client to get into a better financial position through knowledge and education.
■ Credit card debt
■ Store Cards
■ Medical Bills in Collections
■ Unsecured Personal Loans
■ Repossessed Car Loans
■ Gas Cards
As opposed to bankruptcy proceedings, Americans have the ability to enlist certified debt specialists to help them get rid of their unsecured debts through monthly plans that are as affordable as their creditors' monthly minimums.
A SHORT HISTORY OF DEBT SETTLEMENT
In theory, lenders have been allowing debt settlement for a very long time. The debt settlement as a business, however, has become prevalent in America during the late 1980s and early 1990s when the banks deregulated. This change relaxed credit lending practices for consumers. It came about so as to reverse an economic recession. Consumers were allowed more credit, at higher interest rates to improve the US economy. This practice, unfortunately, placed consumers in financial hardships where unsecured debt became increasingly tough to handle, let alone payoff in full and eliminate.
With charge-offs prevalent(debts written off by financial institutes), the banks created their own departments for debt settlement which were allowed to negotiate with debtors to bring down outstanding balances so as to recover some of the funds that would otherwise be eliminated if the debtor filed for Chapter 7 bankruptcy. Settlements were usually made up of 3 payments and ranged anywhere between 40% and 70% of the outstanding principle.
Alongside the unprecedented increase in personal debt, there has been another rather important change - the 2005 legislation change that made it far more difficult for the average American to claim Chapter 7 bankruptcy protection. As it currently stands, if a person filing for bankruptcy does not meet the Internal Revenue Service's ‘means test’, they would instead be forced to file under a Chapter 13 debt restructuring plan. Chapter 13 forces the borrower to pay back some or all of their financial debt to all of their various unsecured lenders. These Chapter 13 repayments may extend up to 100% of the debt owed to unsecured creditors.
Americans, currently, have the right to enroll certified independent debt specialists to help eliminate their own debts through plans that are as feasible as their monthly minimum payment plans. Consumers are allowed the choice of “Settlement” to help eliminate their outstanding unsecured debts, where they would otherwise stay in debt or have to declare Bankruptcy.
AMERICA IN DEBT
Debt Settlement has become very popular as a way to financial survival with the “Great Recession” beginning in late 2007. This recession eventually caused stock markets to crash in October of 2008. Many Americans were caught completely off guard to this shock. Life savings plans connected to securities and other types of investments disappeared almost overnight. Workers were suddenly laid-off from their positions as institutions were made to cut back on overhead or declare bankruptcy. Secured assets such as mortgages went belly up and people were now fighting for their homes.
For years before the recession, consumers had gotten used to running up large balances on their credit cards and paying down these balances was not a major worry. This recession led to a “credit crunch”, a strong indicator to the impending collapse. Now unemployed, and having large mortgages, many Americans began to use these unsecured credit lines to help replace the income they had recently lost. During this period, credit tightened and interest rates greatly increased. This change put Americans in a tough spot. They kept using their cards, only to become stuck in a revolving debt cycle due to high interest rates.
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