Debt consolidation, equity loans, credit counseling, debt management plans, even Chapter 13 bankruptcy – it doesn’t matter which of these debt programs you’re talking about. They all suffer from one fatal flaw, the number one problem that causes most people to fail at eliminating their debts through these techniques. Can you guess the problem?

It’s probably not what you’re thinking. It’s not the fees, interest rates, or the quality of the companies behind these debt solutions. No, the number one problem with most debt programs is that they require FIXED monthly payments without exception. This major flaw is the main reason that very few people make it through a credit counseling program or a Chapter 13 bankruptcy plan.

Do you make exactly the same amount of money each and every month? If you are like most people, the answer is probably NO. It’s easy to understand why. Salespeople, for instance, often experience ups and downs based on how much commission they earn from one month to the next. Seasonal workers experience boom and bust times depending on the time of the year (think retail workers getting lots of overtime around the holidays). Overtime hours come and go depending on company workloads. Part-time jobs may offer hours that vary widely from week to week. And so on.

Now, what about your expenses? Do you spend exactly the same amount of money each and every month? Sure, your mortgage or rent and your car payments are a set amount each month. But doesn’t your utility bill go up and down depending on the weather? What about your phone bill? How much will you spend on car repairs over the next 6 months? Medical bills? Dental bills? Can you predict such variable expenses with any accuracy?

If you have lots of room in your budget, with money left over at the end of the month, then fluctuating income and expenses are probably not a major issue for you. However, if you are struggling to make ends meet, living from one paycheck to the next, then an unexpected expense can destroy your monthly budget.

People enter debt relief programs with the best of intentions. Take credit counseling, for example. You enter a program to get some help in bringing your credit card debts under control. The monthly payment of $500 sounds good. You’re humming along just fine for a few months, then wham! The water heater blows up. Time to shell out $800 for a new one. Unless you like cold showers, you’ll need to skip the $500 payment to the agency this month, and part of next month’s payment as well. Where does that leave you with the credit counseling program? Back on the street, that’s where. You simply CANNOT miss payments into that type of plan and expect anything but failure.

Charles Phelan ZipDebt

Debt Relief CONSULTATIONS, Affordable & Confidential

Consultations offered by Charles J. Phelan. Get affordable professional advice on dealing with collection agencies, settling debts, and much more!

Click here to see the full range of consultations available.

Or look at Chapter 13 bankruptcy, where the court requires you to pay a set monthly amount to your creditors over a 5-year period. The court will set your monthly budget for you, based on what the IRS says it should be for your state and county. This is simply unrealistic, and is one of the key reasons approximately two out of three people filing under Chapter 13 get dismissed before completing the plan, when they fail to maintain the required payments.

Again, the big problem with most debt relief programs is lack of flexibility. You cannot call your loan officer, the credit counseling agency, or the court trustee and say, “Hey, my kid broke his leg and I had to pay the hospital $500 to cover my insurance deductible, so I’ll need to skip my debt payment this month.” If you could, then these plans might have a chance of working. But such inflexible programs simply do not reflect the unpredictable nature of the average household budget.

So is there any debt program that does provide this flexibility? Yes. It’s called debt settlement, or debt negotiation. It’s certainly not for everyone. Debt settlement is an alternative to Chapter 13 bankruptcy. It’s not for people who can pay their bills in full without hardship. But it can be a real blessing for those seeking relief from a crushing debt burden.

The reason debt settlement is so flexible is simply because YOU control the cash. You build up money in a separate savings account until you have enough to make a reasonable offer to one or more of your creditors. Like any debt program, debt settlement has its downside and its risks, but no other program provides this level of flexibility. Because the monthly payment is going into a negotiation fund that you set up and control, a bad month simply means you have less money to settle with. If you can make it up later, that’s great. If not, that’s life. When you have enough to settle ONE account (usually between 35% and 50% of the balance owed), then you make an offer. If your creditor takes the deal, then you start building up funds to knock out the next debt, and so on. It’s the only program out there that recognizes a basic reality: Your budget should set the pace for your debt elimination program. Not the other way around!

Again, debt settlement is not a magic bullet. It won’t cure every debt problem. But if you need to skip a month, or adjust up or down a little to reflect what’s going on in the real world, it doesn’t mean the end of the program. It’s truly a shame that the financial “experts” who have set up the bankruptcy rules, consolidation loan terms, credit counseling plans, and debt management programs haven’t figured this out yet. If they would just recognize this fundamental problem, then the success rate on their programs would increase dramatically and they could stop misleading the public about what works and what doesn’t in the world of debt relief.

Hundreds of Client Success Stories

ZipDebt has been in business for over a decade and has helped settle millions of dollars and debts with our clients. The hundreds of debt settlement success testimonials we have received are proof that ZipDebt’s Do It Yourself Debt Settlement Program really works!

Trusted Company, BBB A+ Rating

bbb-accreditedThere are no shortage of scams that prey on people when they are most vulnerable financially. It takes hard work, dedication, determination, and experience to be successful in this industry, which is precisely why a majority of traditional debt settlement companies do not carry A+ ratings with the Better Business Bureau!

ZipDebt = Fast Relief

Debt settlement is an ethical and honest alternative to bankruptcy, but hiring a professional third-party negotiation firm can be an expensive decision costing you $1000s in unnecessary fees when you can least afford it. ZipDebt's professional services will guide you through Do It Yourself Debt Settlement for a fraction of the cost of a traditional debt relief program.

Free 20-Minute Consultation

Speak with Debt Negotiation Expert
Charles J. Phelan

Would you like to talk about your debt situation?

Need some friendly professional advice without the sales pitch?

Get Your Free Consultation Now

NOTE: There is no cost or obligation for the consultation, and your information will be held in strict confidence.

Contact Us

Manchester Publishing Company, Inc.
1835 S. Centre City Pkwy
Suite A-507
Escondido CA 92025

[email protected]

(866) 515-2360