Debt Calculator
| $25,000 |
Standard Settlement Plan |
Bankruptcy Chapter 13* |
Credit Counseling** |
Debt Consolidation*** |
Pay Minimum Amount Due**** |
|---|---|---|---|---|---|
| Years to pay off debt | 3 | 3 | 5 | 10 | 43.1 |
| Interest Rate | - | - | 13.0% | 11.0% | 18.0% |
| Fees | $3,750.00 | $3,739.00 | $3,050.00 | $1,500.00 | - |
| Additional Interest / Penalties Paid | $2,507.95 | 0 | $6,148.80 | $16,325.60 | $48,809.28 |
| Amount of Debt Paid | $10,000.00 | $25,000.00 | $25,000.00 | $25,000.00 | $25,000.00 |
| Your Total Cost: | $16,374.95 | $28,739.00 | $34,198.80 | $41,325.60 | $73,809.28 |
| Fair Share by Creditor to CCCS | - | - | $2,051.93 | - | - |
| Avg. Monthly Payment | $454.86 | $798.31 | $569.98 | $344.38 | $562.50 |
| Avg. Settlement Percentage (40%-60%) | 40% | 100% | 100% | 100% | 100% |
| Avg. Completion Rate | 40%-55% | 32% | 21%-26% | 95% | 80% |
| Additional Cost over Debt Settlement | - | $12,364.05 | $17,823.85 | $24,950.65 | $57,434.33 |
| Negative Impact on Credit Rating | 4 Yrs | 10 Yrs | 6 Yrs | Negligible | Negligible |
| Total Fees Collected | $3,750.00 | $3,739.00 | $5,101.93 | $1,500.00 | 0 |
This chart is an example only and should be used for general comparison purposes only. Many varying factors not accounted for will create differences as to each individual’s circumstances and results.
*Assumes 3 year: Attorney fees $2000 + Filling fee $189 + 5% Trustee fee + $300 CCCS. While not all Ch. 13 bankruptcy plans require paying back 100% of the debt, this example does not add interest that may be charged under the bankruptcy plan.
**Assumes 5 year: $50 counseling fee + $50/m service fee for 5 years. Additionally, an 8% fair share of client payments are paid to counseling agency and an average interest rate of 13% are used in calculations as reported by the NFCC and cited in Credit Counseling in Crisis: The Impact on Consumers of Funding Cuts, Higher Fees and Aggressive New Market Entrants, Consumer Federation of America and National Consumer Law Center, April 2003
***Assumes 10 year loan total fees 6% of loan value and 11% interest
****80% default rate is only an estimate based on antidotal industry information on trials performed by certain Credit Card company in the 3 & 4th quarter of 2005
Debt Calculator copyright | DSA - Debt Settlement America, Inc. 03/17/2006
