Debt Types - A Crucial Factor

The type of debts you hold may be the most important factor when you are deciding whether to try for a debt consolidation loan or program, or apply for a debt reduction settlement with Aegis.

The following debt types cannot be included in a Debt Reduction Settlement (which is what Aegis specializes in), nor a Credit Counseling-type of program.

Mortgages
Car Loans
Most Secured Debts*
Child Support
Bounced Checks
Legal Fines such as parking tickets, speeding tickets, some kinds of court judgments.

* Some secured debts may be settled when the security interest has diminished in value to the point where repossession is impractical. An example might be a car that has been purchased with a loan, but has been written off due to an accident.

The following types of debts may be settled for less using an Aegis Debt Reduction Settlement, but may NOT be included in a Credit Counseling-type program.

Taxes*
Student loans*
Business Credit Cards
Debt Stemming From Lawsuits
Rent Owed to Previous Landlords
Auto Leases
Lease Defaults
Repossession Deficiencies
Liens
Judgments
Office Leases
Equipment Leases
Business Debts

* Government sponsored student loans and IRS debts are non-negotiable, period. However, Aegis can help you make new "payment arrangements" and "offers in compromise". Because these debts are government backed, this is the best any agency can do.

Be Sure The Claims Are Correct

Although some credit counseling agencies claim they can help obtain better results with the following types of debt, it is usually a negligible result. These types of debt, however, can be settled for less using an Aegis Debt Reduction settlement.

Installment Loans
Signature Loans
Billing Disputes
Attorney Fees
Accounts Payable in Full Within 30 Days
Gas Charge Cards

The following debts may be placed in both a Credit Counseling-type program and a Debt Reduction Settlement like Aegis offers its clients. It should be noted, however, that Credit Counseling-type problems merely help extend your payments and lower your interest. Debt Reduction Settlements do this, but also settle your debt principals for 40-80% less than what you began with.

Credit Card Debt
Medical Bills
Store Charges
Service Contracts or Charges
Past Due Utility Bills (from previous service providers)
Subscriptions
Memberships and Dues

Some Important Notes On Credit Counseling Vs. Debt Reduction Settlements

For acceptance in a Credit Counseling program, applicants must qualify for enrollment through a consumer credit counseling agency. Typically, these agencies will have you complete a Full Disclosure Budget to determine your financial state. If there is no need for the program or if the applicant will not be able to make consistent monthly payments, as is frequently the case with people encountering severe financial difficulties, the applicant should not be accepted in the program.

On the other hand, Debt Reduction Settlements are based primarily on your ability to raise the required funds to settle a debt, or any number of debts. This is a solution that works primarily for families experiencing hardship because of their accumulated debt, and a real need for debt relief must be apparent.

Important Acceptance Guidelines

This is why at Aegis, we rarely help clients with under $10,000 in unsecured debt. Instead, our clients are often those with debt levels high enough that they are encountering difficulty maintaining minimum payments, or are making their payments, but see no end to their debt.