Debt Settlement
 Consumer Credit Counseling 
 San Diego, California, Texas, 
 Florida
SEE HOW MUCH
YOU CAN SAVE
First Name:*
Last Name:*
State:
City:
Phone:*
Email:*
What's total unsecured debt?*
What's total unsecured*
Type of debt:*
  (Min.Debt: $5,000.00)
 
Enter Captcha:
Debt Evaluation
 
Testimonials
"I cannot begin to express my gratitude for saving me several court appearances, garnished wages, and about $30,000."
- Mike Barrett
You handled this debt in a fast and cheap way after years of bill collectors trying to make us feel guilty of something we didn't create.
- Cesar Gomez
Client settles $21,000 medical
debt on his credit card account.


Watch Video
 
FREE CONSULTATION:
1.800.213.9968
Home Contact Us Sitemap Bankrupty Other 
Options Spanish
debt Consolidation loans
Debt Consolidation

The Debt Consolidation Florida Disaster

Hurricanes are a perpetual financial disaster that has pummeled Floridians. In 1992, Hurricane Andrew caused Florida over $25 billion in damages. In 2004, Hurricane's Charley, Frances, Ivan, and Jeanne pummeled the state's economy with over $42 billion in damages. In 2005, Hurricane's Dennis, Katrina, Rita, and Wilma created for Florida the second costliest weather disaster in U.S. history. Yet, hurricanes have not been the primary cause of Floridian's debts.

Besides a low state minimum wage that does not support the cost of living in many Florida communities, unemployment has been a major culprit of Floridians' debt crisis. As a result, many debtors in Florida have sought debt consolidation loans to get financial relief. However, for some a debt consolidation Florida disaster has led to more money problems.

An issue with debt consolidation loan recipients is that the borrowers are required to dedicate the equity on their homes as collateral to guarantee loan repayment. The collateral is a security interest that ensures the lender of the loan is repaid if the borrower defaults on the loan payment.

People that have taken out debt consolidation loans in Florida have been targets of predatory lenders, which issued loans without any regard to a borrower's ability to pay. Lenders have notoriously offered these loans with a variable interest rate that eventually causes a substantial spike in a borrower's mortgage payment. Consequently, many borrowers in Florida that were hit with hundreds of dollars in increased mortgage payments were forced to default on their loans, succumbing to foreclosure.

Florida borrowers have also tricked by lenders into getting debt consolidation loans with hidden loan terms, high fees, and undisclosed insurance products. Victims of "loan flipping", a scheme that teases a borrower to apply for a loan with a low interest rate or the option to get cash out, were coaxed to repeatedly refinance their mortgages, enabling mortgage brokers to make huge profits from extra points and fees. The toll of the debt consolidation Florida disaster has created steep foreclosures. As of the third quarter in 2007, Florida had the next highest total of foreclosures - one foreclosure for every 95 households.

Considering the financial ramifications, people should try to avoid debt consolidation loans. A good debt consolidation alternative could be hiring a debt settlement professional. Unlike a home equity loan, this approach does not burden borrowers with the threat of foreclosure.

People in Florida, that have pursued the debt settlement option, consider it to be a great way to avoid bankruptcy and pay back a fraction of what they owed. Plus, debt settlement can be a practical way to improve cash flow and manage essential living expenses.

Read More Articles....

a

 
   
About Us Debt Consolidation Debt-to-Freedom Plan Client Testimonials Debt Free League Blog
Press Release Debt Settlement FAQ Debt Settlement Letters Articles
On the Radio Bankruptcy Credit Card Debt Settlement Free Quote Free Credit Report
Employment   Business Debt Reduction   Find Your Creditor
Contact Us   Medical Debt Reduction   Debt Calculators
    Tax Relief    
You can debt-free in much less time than a consumer credit counseling debt consolidation program, benefiting not only from a substantial reduction on interest, but also on principal and fees.
Proud Member of The Netcheck Commerce Bureau. Promoting ethical business practices worldwide.

As Featured On :

Follow Us On :

RSS 2.0 Feed - Avoid bankruptcy Bookmark this page
Copyright © 2008 Debt Free League (www.debtfreeleague.com) all rights reserved.