What is the Fastest Debt Relief Solution?

1. Lump sum debt settlement – Assuming the program is successfully completed and all the accounts in the program are settled, this is the fastest debt relief option available to consumers (outside of bankruptcy) and what Franklin Debt Relief specializes in. To better understand how it works, consider this example: Jim owes $10,000 on a credit card and he is already behind on his payments (accounts that are current cannot be settled).  He wants to pay off the full balance, but he only has $5,000 available for payment. Jim contacts Franklin Debt Relief to negotiate with the credit card company. FDR negotiates with his creditor on his behalf to come to an agreement where he pays a lump sum of money for less than the balance to satisfy the debt. In this situation, Jim pays them a lump sum of $5,000 and $1,500 to FDR in fees. In turn, they clear the entire debt and report to the credit bureaus that Jim’s debt was “settled”. This process typically usually takes between 4 and 12 months to complete.

2. Debt Settlement - This is another rapid debt reduction option available to consumers, but it takes longer than the scenario described above because there is not a lump sum available to speed up the process. Instead a client makes a set monthly payment each month, part of which goes to our fees and the rest goes into a savings account, of which the funds will be used to settle the client’s unsecured accounts.  Once enough funds have accumulated and assuming a creditor has agreed to a sufficient settlement, they are paid with the money from the savings account. This process normally takes between 24 and 60 months to complete assuming the client manages to complete the program, or almost one-tenth the amount of time it takes to become debt free when paying the minimums on 19% interest credit cards.

Other Fast Debt Reduction Options

1. Credit card balance transfers - For consumers with high interest credit cards, this is one way to quickly reduce the time it takes for you to pay off the balances. Unfortunately, many of the balance transfer offers expire rapidly, and consumers may find themselves in a bigger predicament down the road.  However, it is certainly worth investigating because there is not a negative credit impact, which will likely occur in our program. 
2. Home equity loans - Consolidating your credit card debt in a second mortgage is another way to quickly reduce the time frame it takes to pay off your debts. Since the interest is tax-deductible and often times very low, it is a much faster debt reduction option versus paying the minimum payments. Unfortunately, by securing your debts with your home, you are risking a lot if you default.  That said, this is also a good option to consider if it is available to you because you’ll also not suffer a credit impact by choosing this option. 

Tips for Quickly Reducing your Debt

1. Create a budget. In cases where a consumer's debt load is manageable, budgeting is oftentimes the simplest way to put yourself in the position to rapidly reduce your debt. Simply put, by monitoring where your cash goes every month, you will be able to figure out ways to cut expenses and use the surplus cash for making extra payments.

2. Attack the card with the highest interest first. By eliminating the card with the highest interest first, you end up paying less to become debt free. When you pay less overall, you become debt free faster.

3. Make weekly payments. Because the way our calendar falls, you will make the equivalent of an extra monthly payment by following this plan. For example, let's say you paid $100 every week instead of $400 per month. By the end of the year you will have paid $5200 versus $4800. When your goal is quick debt relief, anything helps.

4. Sell your assets. If you're really in trouble and you find that none of these fast debt relief solutions are helping, consider selling your assets and settling your debt with the proceeds.