Personal Loan Alternatives
When you need help determining which debt resolution option is best for you, turn to the debt resolution professionals. They will review your situation and qualifications, determine which program is best for your needs, work with you one-on-one to establish a plan, and negotiate with your creditors on your behalf.
Consumers in trouble have options. Shoreline Finance can help you find them. Few lenders today are doing private loans to consumers with good credit. Even fewer are willing to work directly with consumers struggling with debt and poor credit. The success rate for a struggling consumer to do it alone is extremely low.
We have the experience to know which debt resolution option may be best for your situation and we have established valued relationships with lenders to make funding happen. All our consultants are trained and experienced. What you get at Shoreline Finance is knowledge, integrity, and exceptional service.
Common Reasons For Resolution
- Consumers and business owners in need must be struggling with unsecured financial debt and in a position where they are unable to repay their debt
- Consumer and business credit rating is not an issue
- Consumers in need contact by phone or by completing the online application
- Trained and experienced consultants review the consumer’s application and contacts them within hours
- Consultants confidentially review the consumer’s application and debt challenges.
- This review requires only a 40 minute phone conversation with the applicant
- If accepted into the program, consumers with debt work with the same consultant, from beginning to end, during the application and agreement process
- There’s no risk to the applicant/consumer until there is a successful and agreed-upon solution to the applicant
The debt management programs are 100% compliant with the Federal Trade Commission. Consumers needing debt resolution should know, debt resolution is NOT an overnight resolution to solvency. For the average consumer, paying off negotiated debt is a process that usually requires 3 years to complete. Some consumers complete it sooner dependent on their means. Every case is unique and varies based on different attributes of every client.
Debt Resolution can help with these types of debt:
- Credit Cards
- Unsecured Loans
- Unsecured, Private Student Loans
- Unsecured Personal Loans
- Unsecured Personal Lines of Credit
- Autos in Repossession
- Medical Bills
By law, there are some debt terms cannot be settled. They include:
- Utility Bills
- Government Loans
- Government-backed Student Loans (these may be consolidated, however, to reduce monthly payments)
- Secured Debts
- Home Loans and Mortgages
Juggling heavy, unsecured debt with high interest rates and looking to get your financial situation under control? Shoreline Finance can assess your situation and see if debt management is right for you.
Debt management is a tailored repayment program designed by a third-party finance management professional to help consumers, buried by unsecured debt and high interest rates, pay off that debt.
A debt management plan is a hardship program that benefits consumers meeting specific criteria. It is not for everyone. Qualifying consumers must adhere to a strict set of requirements that will be outlined and explained by the finance management professional.
What is unsecured debt? Unsecured debt is unpaid debt in the form of:
- Credit cards
- Charge cards
- Lines of credit
- Unsecured personal loans
- Debt that is not tied to an asset, such as a house or vehicle.
Debt Management vs. Debt Resolution Plans: There is a difference.
- Debt management is a program for consumers struggling with unsecured debt and financial hardships. Not everyone qualifies for this program.
- It is for consumers who need help when simple budgeting actions fail to help them pay off unsecured debt.
- Debt management allows third-party finance professionals to negotiate with your creditors on your behalf in an attempt to reduce the interest rates and late fees on your outstanding bills. If successful, a debt management plan can help you solve your financial problems and teach you how to budget and self-manage your finances in the future, after you get out of unsecured debt.
- Debt resolution—*Helps consumers strapped with unsecured debt reduce their outstanding debt balance by as much as 60 percent of what is owe.
- Debt resolution gives you the opportunity to get out of debt quickly, without filing for bankruptcy. It does not teach you how to budget or manage finances in the future.
Understanding Debt Management
When a debt-plagued consumer is qualified to enter a Debt Management program, a finance management professional will work with both you and your creditors in an attempt to meet an agreement that helps get your heavy debt paid while simplifying the repayment of your unsecured debt obligations.
Once enrolled into the debt management program, they will work to consolidate your payments and disperse them on time to your creditors on your behalf.
*Please note:* This is a hardship program for which not everyone is eligible. Those eligible to participate benefit by becoming debt-free in 3 to 5 years. They make the same payment each month, on time, at a reduced interest rate set by the creditors. This does not guarantee that your monthly payment will be lower or at a reduced interest rate. Not all creditors will reduce their interest rates.
An Overview of How it Works
- A debt management plan involves a series of requirements that the consumer must follow:
- List all your creditors to whom you owe unsecured debt, and the amounts owed to each
Secured debt—vehicle loans, home mortgages, student loans — are not eligible
- $5,000 current unsecured debt minimum and it must offer benefits (i.e., reduced interest rates, old utility bills, debt not in collections)
- $3000 current unsecured debt minimum accepted for consumers with exceptionally high interest rates and benefits
- Accounts must be less than 60-days delinquent when you enroll
- Accounts past 60 days must be set up for creditor payment within 30 days of enrollment date
- Historically, accounts past 60 days have a high chance of going to collections, offer no benefits to a debt management plan, and are usually rejected from the program
- All credit card accounts and personal, unsecured loans must be ‘mature’, meaning, open for a minimum of 9 months before a proposal requesting benefits can be sent to creditors
- There must be no activity for the past 60 days on all credit accounts in the program, or the proposal for that creditor will be rejected
- Interest rates must be above 18%
- Interest rates as low as 15% have been accepted, but none lower
- Consumer must be able to make minimum payments on all cards
- Program stipulations and key verification
This is a debt relief and consolidation program. This program is not designed to allow consumers to acquire new unsecured debt while paying off old unsecured debt.
All accounts put into your debt management plan will be closed by your creditors. If you hold more than one credit account with the same creditor, all accounts must be put into your debt mortgage plan and will be closed. You may keep 1 major credit card (Visa, MasterCard, Discover, or American Express) for “Livelihood” (work-related) emergencies only from a creditor that is not in your debt management plan. Refrain from opening new lines of credit or financing for up to 24 months while participating in the program. Current accounts enrolled in your debt management plan must be kept current until the first full creditor payment is received, otherwise you will receive late fees, phone calls, and letters, until all negotiations with all of your creditors are finalized.
FICO scores are not affected by your debt management plan
Your creditors do retain the right to state that you are in a debt management plan on your credit report. Upon successful completion, creditors may report your plan is completed or remove footnote. Monthly administrative fees vary from state to state; the amount is dictated by the laws of your state and is built into your monthly payment.
Debt Resolution vs Bankruptcy
For any consumer looking for a way to eliminate debt, bankruptcy might seem like a viable option. While people with severe debt problems might benefit for filing for either Chapter 7 or Chapter 13, many individuals have no idea how damaging the consequences can be in both the short and long term.
Bankruptcy can be like financial chemotherapy. It can eliminate the problem (in this case, debt) but it also causes a number of other serious side effects.
When the Federal Trade Commission (FTC) warns consumers about false advertising, it highlights the following misleading claims about bankruptcy:
- Consolidate your bills to one monthly payment
- Stop harassing phone calls from creditors, stop foreclosure, repossessions, tax levies and garnishments
- Keep your property
- Wipe out your debts
What these ads don’t explain is that filing for bankruptcy can ruin your credit and cost you attorneys’ fees. There are a number of challenges you may face by filing for bankruptcy, including:
- Bankruptcy does not eliminate all debt problems, including alimony, child support, some legal debts and more.
- Bankruptcy will destroy your credit rating for up to a decade, and may not allow you to keep all of your property depending upon the type of bankruptcy you file for.
- Also, bankruptcy attorneys won’t inform you of the many other debt resolution options you can explore before filing for bankruptcy. If you have severe debt problems, bankruptcy may be the answer, but there are other options.
If you would like to check out your eligibility for Bankruptcy and what chapter you might qualify for, please contact a Bankruptcy Attorney for more information.
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