The ClearOne Advantage
There are many options for managing debt, but the ClearOne Advantage program has several advantages over other recently publicized choices. Below is our ClearOne Advantage decision model:
ClearOne Advantage Decision Model
| Continue to Pay Minimum | Equity in House | CCCS | Ch. 7 | Ch. 13 | ClearOne Advantage | |
| Starting Debt | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 |
| for ClearOne Advantage to 24-40 months | 15-35 Yrs | 10 Yrs | 4-6 Yrs | Immediate | 3-6 Yrs | 24-40 Months |
| Estimated Payment Per Month | $1,200 | $400* | $600 | $0 | $600 | $500** |
| Estimated Total Debt Paid Off | $90,000+ | $48,000+ | $45,000+ | $1,500+ | $20,000 | $17,000-$20,000 |
| Short Term Credit Effect | None | None | Negative | Negative | Negative | Negative |
| from Postive to Positive** | None | None | Negative | Negative | Negative | Negative*** |
* Assuming a 10% interest rate.
** All figures include ClearOne Advantage fees.
*** Disclaimer - For illustration purpose only. Not available in all states, individual results may vary and are dependent on successful completion of program and ability to save funds. ClearOne Advantage does not assume or pay any debt, nor does it provide legal advice or offer credit repair. Read and understand the contract terms before enrolling.
Continue to Pay Minimum
Paying the minimum payment on revolving interest rate credit cards is a tough battle. To just maintain the balance without going deeper into debt, one must pay 4% of the total balance. Even at this rate it will take upwards of 35 years to pay off the balance. As you see above this is the most expensive and timely option.
Home Refinance
With the downfall and uncertainty of today's housing market and depreciation in home values, consolidating unsecured debt into a secured mortgage debt can be an uncertain option. Also remember that you will be paying on this interest and debt for 15 to 30 years. The goal of our program is to settle your debts.
Refinancing is a less desirable option, because people may get turned down or not qualify based on income, time on job, and equity in their home. Between the up front appraisal fee, title fees, escrows fees (taxes and insurance) and origination fee-which could end up costing you a total of up to $15,000-you are not getting rid of your debt but only transferring it from your credit cards to your home, while losing equity. If you hit a hardship and can't afford the new higher monthly mortgage payment you are now in risk of losing your home to foreclosure.
Consumer Credit Counseling
Their debt option can be for up to 5 years or more, while the ClearOne Advantage program is between 2-4 years. The CCCS program may show up on your credit as the borrower in a "consumer serving program". In contrast, during and after completion of the ClearOne Advantage program, the account will appear on your credit as "settled for less than full value." It will appear as if you handled the pay off in debt on your own, which will look more favorable for you.
Bankruptcy
Chapter 7
While this option might meet some individual needs, the credit repercussions are great. A bankruptcy may stay on your credit for up to 7-10 years and should only be looked at as a last option.
Bankruptcy not only affects your credit but may even affect your ability to secure certain job promotions or positions. Chapter 7 also includes possible significant up front costs for a lawyer to represent you in bankruptcy court and the program does not guarantee acceptance even after payment of your lawyer's fees.
Chapter 13
This debt option is for 5 or more years, while our program is between 2-4 years. Like a chapter 7 your credit repercussions may be significant. A chapter 13 bankruptcy will stay on your credit for up to 7-10 years and should only be looked at as a last option. This option may also require significant up front costs, while our upfront costs are zero.
ClearOne Advantage is an associate member of (TASC) The Association of Settlement Companies. This trade association has developed a standardized industry disclosure for consumers.
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Membership in TASC as a vendor does not mean that TASC, its Board of Directors, or any of its member companies has approved or reviewed any of the business practices of the vendor. Each customer of this vendor should exercise their own diligence as to legal and business issues prior to use.
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