A personal loan might be right for you, if you want to fund a big expense, or if you want to consolidate debt. Personal loans may come with lower interest rates and no compounding interest rate, so funding a big expense or project with a personal loan could save you thousands of dollars on interest payments.
Payback on a $10,000 credit card debt with 19% interest, if paid only min payments will take over 12 years and $14,700.
Your personal loan will also add another line of credit to your credit report, and if you make on-time payments, you'll build credit while paying down your debt.
Debt validation programs dispute the validity of third-party debt collection accounts. Credit card, Personal Loan, Medical Debt and Private Student Loans are the most popular type of debt that can be included in the program.
An example of how a debt validation program works:
Here’s a good analogy:
Just like when you get a speeding ticket, there’s a process you can use to challenge the ticket and get it dismissed. That same theory is used in a debt validation program. Yes, you were speeding, but that ticket gets easily dismissed when properly challenged.
Examples of what a debt validation program requires your creditors to abide by:
Keep in mind, they must provide these items within 30-days of being requested. If they can’t supply any of the following requested items, the debt collection company cannot continue collecting on the debt. The information must also be 100% accurate in order for a debt to be validated. If one “T” isn’t crossed or an “i” not dotted, your debt can be invalidated.
Now keep in mind, this is a micro-version of what is being requested on a debt validation program.
In the debt validation program that we recommend at DPF there are actually over 30-pages of documents that are sent to your debt collectors on round one! They must go through each page, line by line, and send in everything being requested — and required by laws. The case managers and debt defense team continue challenging a debt, until the debt is “fully disputed”. Every legal debt relief angle is used to force your creditors to play by the rules.
This is a great option if you are struggling with your minimum payments or you have collection accounts. Your monthly payments will be significantly lower. And your credit score will recover very quickly.