US Financial Management, Inc.

Any individual creditor may use a number of different criteria in determining that creditor’s willingness to settle a debt of the amount acceptable in settlement, including, but not limited to the amount of debt, the current status of debt, the current reasons your are seeking debt settlement, our program, the type of debt and the amount of your disposable income. 

The main purpose of debt settlement is to reduce the amount of debt by negotiating a lower amount owed (total) with your creditors.  With debt consolidation you are merely transferring the total amount of your debt to one loan (secured) without any reduction to the amount owed, which still leaves you financially vulnerable. With credit counseling, you can expect a reduction in interest rates and minimum payments, but not on the total amount owed. A good debt settlement program like MyDebtNegotiation can reduce your debt in half, establish payments that you can afford and get you debt free in less time.

Credit counseling companies typically categorize themselves as “non-profit.”  Many consumers confuse "non-profit" with no-charge or charity.  However, non-profit credit counseling companies generate millions of dollars each month, receiving most of its compensation from the donations of the creditors. This means they are basically working for your creditors, while charging you fees for their services. 

We negotiate total balance due, including any interest, fees and/or penalties.

USFM can not advise on filing for bankruptcy, as it is a very personal decision.  There are many circumstances involved in making a move towards bankruptcy. The American Bankruptcy Institute* has established a checklist with the following guidelines:

• Your wages have been garnished or your bank account has been attached

• Most of your debts are unsecured debts like credit card bills, hospital or doctor’s bills, etc.

• Your total debt, not including your car or house loan, is more than you could pay, even over five or more years

• Collection agencies are calling you at home and/or at work

• Your payments are more than 30 days behind on more than one bill

• There are lawsuits pending against you

• You have high medical bills not covered by insurance

• You owe income taxes that you are unable to currently pay

• You have few assets

•  You have little or no savings

• You have had property repossessed (such as a vehicle)

Please note that new laws passed in 2005 make it more difficult and complicated to file for bankruptcy and to be freed of past debts.  We recommend you seek the advice of competent bankruptcy counsel before deciding whether to file for bankruptcy.

*Source: American Bankruptcy Institute