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| Debt Negotiation Program | ||||||||||||||||
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| Life After Debt Negotiation | ||||||||||||||||
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So you reduced debt, avoided bankruptcy, and finally completed
your debt negotiation program, now what? There should be two top
priorities after debt negotiation: 1) build savings and 2) rebuild
your credit. In order to determine the best method to build savings
you must first establish a set of clear goals. You’ll need to
determine what you want your savings for (retirement, college for
your kids, etc.) and how frequently you’ll need access to it. The
following are 4 resources that every debt negotiation client should
explore upon settlement of their debts: (Please note: Franklin
Debt Relief is not a credit repair services organization. If you
are looking for help with your credit, then please consult an
organization that specializes in this area). Gas / Department Store Cards – Gas and department stores tend to be much easier to qualify for upon completion of your debt reduction program than regular credit cards. The key to rebuilding your credit is to use credit frequently and responsibly. That means using your gas or department store card every month, paying much more than the minimum payment, and never using more than 50% of the credit line at any time. Once you’ve shown positive payment history, try requesting a larger credit line. This can also improve your credit history after our debt relief program. Secured Credit Cards – Secured credit cards are even easier to qualify for after your debt negotiation program than gas or department store cards. A secured credit card is much like a debit card in that your purchases are automatically withdrawn from the amounts you have deposited. Obtaining a secured credit card should be your first step toward rebuilding your credit after debt settlement. Money Market Accounts – These are very much like your standard savings account, but they pay higher interest and generally require at least $2500 as a minimum initial deposit. They are FDIC insured up to $100,000 like a savings account. You can withdraw all of your money at any point without a prepayment penalty, but unlike a savings account, the number of withdrawals on a monthly basis is limited. Certificate of Deposits (CDs) – Unlike money market accounts, CDs generally require you to deposit your money for a set period of time. The interest rate depends on how much you deposit and how long the term lasts. Debt negotiation clients will find this investment vehicle suitable if they have long-term savings plan because there is a prepayment penalty associated with early withdrawals. There are “risk free” CDs that do not have prepayment penalties, but most do punish you for doing this. |
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