timroland » debt

Advice on Credit Card Debt Relief

admin — Sat, 04 Feb 2012 05:04:30 +0000

Very few consumers lose their homes because of delinquent credit card debt. In fact, I would say that it almost never happens, except in certain bankruptcy cases in which the consumers voluntarily gives up his or her home. Although forcing the sale of a consumer’s home due to credit card debt is technically possible in some states, it is a very costly and risky undertaking for creditors. In addition, forcing the sale of debtors’ homes would be extremely bad public relations, as many people would be much less likely to use credit cards if they thought it could cause them to lose their homes. Unless your financial situation is somewhat extraordinary, you probably do not need to worry about losing your home due to credit card debt. Only if you own your home outright, or if you have a very large amount of equity in the house, could the taking of your home become a concern. Even in those cases, it is extremely unusual for credit card companies to seize property due to the time and cost involved. Before going into detail, I can advise you to seek a debt consultation to see if you can get help with your debts. Bills. com has many pre-qualified debt counselors who can help you sort out your problems. Visit the Bills. com Debt Help page for more information. Credit card foreclosure Before seizing any property, a credit card company would first need to file a lawsuit against you in your county courts in an attempt to obtain a judgment against you. The court process alone can take many months to complete, and there is no guarantee that the creditor will win a judgment against you, though it probably will win if you owe the debt. Once a creditor obtains a judgment, it can initiate further court proceedings to collect on the judgment. Although the execution of a judgment could theoretically involve a creditor seizing your home, there are several much easier ways to collect on a judgment which creditors usually prefer. These methods include wage garnishment and levies on bank accounts. Also a creditor with a judgment against you will likely place a lien on your home, meaning that when (or if) you sell or refinance the home, you would be required to pay the judgment out of the proceeds of the sale. Your state law dictates what methods are available to creditors to collect on judgments. For example, Texas, Pennsylvania, and North and South Carolina do not allow wage garnishment for the collection of most judgments. Keep in mind that before taking any of these actions, a creditor must sue you and be awarded a judgment by a court with jurisdiction over the case, which usually means the courts in your county of residence. Falling behind on a credit card does not always result in a lawsuit. Many people unable to make their payments suffer nothing worse than collection calls. Also, keep in mind that creditor threatens you with a lawsuit does not mean that they will actually sue you. Frequently, collectors will threaten people with wage garnishment, bank levies, or even the seizure of a home, even though the collector has absolutely no ability to follow through with the threats. See the Bills. com resource Collections Advice to learn more about your rights in collections. Reasons why a creditor may not try to seize your home If a creditor with a judgment against you wanted to seize you home, it would first be required to pay off any mortgages or home equity loans you have on the home. Only after paying off the secured creditors could the credit card company sell the home at auction. Since auctions frequently bring less than half of the actual value of the home, creditors are taking a huge risk. Since they must pay the mortgage company up front for the entire amount owed on the mortgage, if the home brings less than expected at mortgage, they can actually lose money on the deal. In addition, almost all states exempt a certain portion of the equity in a home from creditor execution; this amount ranges from $5,000 in some states to several hundred thousand dollars in others. If a creditor sells your home at auction, they must pay you your exemption amount, regardless of whether or not the creditor made that much money at the sale. As you can see, this is a complicated and risky proposition for creditors, which is why it is almost unheard of for a consumer to have his or her home seized to repay delinquent credit card debt. Some states, such as Texas, do not allow creditors to seize primary residences to repay judgments regardless of the amount of equity in the home. If you are being sued by a creditor, or think that a lawsuit may be filed against you in the near future, you should consult with an attorney to discuss your states exemption laws and what action a creditor could take against you under those laws, and what you can do to protect yourself. After speaking with an attorney, some consumers find that they are “judgment proof,” meaning they have no assets a creditor could take to repay a judgment against them. This is especially common among elderly and disabled individuals. The bottom line is that, while possible, it is extremely unlikely that a creditor would take your home to repay your credit card debts. However, as mentioned before, creditors can take other actions to collect on delinquent accounts, so you should look into ways to resolve your debts if you are struggling to repay them. Debt resolution options The first option that comes to many people’s minds is bankruptcy — if you are considering bankruptcy, I encourage you to consult with a qualified bankruptcy attorney in your area to find out if filing bankruptcy is a viable options for you. If you find that you cannot file bankruptcy, or simply do not want to file, there are several alternatives available, such as consumer credit counseling and debt settlement. To read more about these options, I invite you to visit the Bills. com Debt Help page. I hope this information helps you Find. Learn & Save. Pros and cons of debt consolidation The four primary concerns for most consumers are: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the resolution program. Be sure to evaluate each program relative to your prioritization of these factors. Since there are a variety of debt resolution options, including credit counseling, debt negotiation/debt settlement, a debt consolidation loan, bankruptcy, and other debt resolution options, it is important to fully understand each option and then pick the solution that is right for you. Credit Counseling Credit counseling, or signing up for a debt management plan, is a very common form of debt consolidation. There are many companies offering credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. Because the program lowers interest rates, it less effective for someone whose interest rates are already low. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts — but with lower monthly payments. On average, most credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan does show up on your credit report, and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy — or using a third party to re-organize your debts. Debt Settlement Debt settlement, also called debt negotiation, is a form of debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs are geared for people who have a financial hardship that makes it so they either cannot pay their bills or are about to start falling behind. Debt Settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are not paying your creditors. This means that a debt settlement solution of debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The trade-off here is a negative credit rating versus saving money. Debt Consolidation Loan Many people think first of a debt consolidation loan when seeking debt consolidation. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one loan for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt. It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30-year loan, which means that the total cost and the time to debt freedom could be very high, but the monthly payment will be lower than other options and there is no credit rating impact. Bankruptcy Bankruptcy may also solve your debt problems. A Chapter 7 bankruptcy is a traditional liquidation of assets and liabilities, and is usually considered a last resort. Since bankruptcy reform went into effect, it is much harder to file for bankruptcy chapter 7. It may be the case that a Chapter 13 bankruptcy will be the only one available. In a Chapter 13 bankruptcy, a person’s debts are reorganized. The debts are reapaid, according to the terms established by the bankrupty court. Chapter 13 bankruptcies usually run three to five years. If you are considering bankruptcy, I encourage you to consult with a qualified bankruptcy attorney in your area. Default You may be curious what may happen if you do nothing. If you stop paying your unsecured debts, creditors have the right to collect the debt. First, you will likely receive collection calls and letters from the creditor directly. If you are still unable to pay the debt after several months, the creditor is likely to refer the account to a third-party collection agency. Third-party collectors are known to be much more aggressive in their collection tactics than original creditors, so do not be surprised if the calls become more persistent, or even threatening. Thankfully, the Fair Debt Collections Practices Act has rules governing the behavior of collection agents. However, unscrupulous debt collection agents do not follow these rules. In some cases, when all other collection efforts fail, a creditor will decide to file a lawsuit against the debtor. This is not a frequent occurrence, but it is within a creditor’s rights and a possibility about which you should be aware. If one of your creditors sues you, the court will likely issue a judgment in the creditor’s favor. Depending on your state’s laws regarding the enforcement of judgments, the creditor may be able to garnish your wages, levy your bank accounts, place a lien on your property, or take other action to enforce its judgment. Regarding a credit report, default damages a credit score severely. In addition, default is a warning flag for many lenders, who will refuse to deal with a potential customer with a default on their record. As a result doing nothing and allowing default is a poor option for most consumers. Summary Although there are many forms of debt consolidation, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the debt consolidation option that fits for you. Lastly, here are some fast tips for your own quick Debt Consolidation Evaluator: 1. If you have perfect credit and have equity in your home — consider a Mortgage Refinance. 2. If you can afford a healthy monthly payment (about 3 percent of your total debt each month), your interest rates are a problem, and you want to protect yourself from collection and from going delinquent — consider Credit Counseling. 3. If you want the lowest monthly payment and want to get debt free for a low cost and short amount of time, AND you are willing to deal with adverse credit impacts and collections — then evaluate Debt Settlement. 4. If you cannot afford anything in a monthly payment (less than 1. 5 percent of your total debt each month) — consider Bankruptcy to see if Chapter 7 might be right for you. Bills. com makes it easy for you to apply for traditional forms of debt relief. I hope this information helps you Find. Learn & Save.

A Look at Debt Settlement of Unsecured Debts

admin — Thu, 02 Feb 2012 04:59:55 +0000

The four primary concerns for most consumers carrying significant debt loads are: i) size of monthly payment and ability to make it ii) time to debt freedom, iii) total cost to pay off the entire debt, and iv) the credit rating impact of the resolution program. Be sure to evaluate each program relative to your prioritization of these factors. Since there are a variety of debt resolution options, including credit counseling, debt negotiation/debt settlement, a debt consolidation loan, bankruptcy, and other debt resolution options, it is important to fully understand each option and then pick the solution that is right for you. Credit Counseling A Consumer Credit Counseling Service (CCCS), is one specific type of debt management plan. It is a very common form of debt consolidation. There are many companies offering credit counseling programs. In a CCCS program, you make one payment to the CCCS firm and they then distribute that payment to your various creditors. CCCS firms negotiate lower interest rates with your creditors. By obtaining interest rate concessions from your lenders or creditors, more of the payment you make each month goes to the principle balance, thereby speeding up the time it takes to become debt free. Because the program lowers interest rates, it less effective for someone whose interest rates are already low. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts, plus some interest. Often, in Consumer Credit Counseling program, the size of the payment is not significantly lower than your current monthly minimum payments you are sending to your creditors. This means that if you are having trouble making your current payment, a CCCS program may not be right for you. The program demands that you make a timely payment each month. If not, you could end dropping out of the program without having resolved the debt problem. Although there are no precise figures available, a high percentage of people who enroll in a CCCS program drop out. On average, most credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan does show up on your credit report and affects your credit rating. Unfortunately, many lenders look at enrollment in CCCS program as akin to filing for Chapter 13 Bankruptcy; in both cases you needed the assistance of an outside firm to re-organize your debts. Debt Settlement Debt settlement, also called debt negotiation, is a form of debt consolidation that reduces your total debt. Savings can be as much as 50% and debt settlement programs will significantly reduce your monthly payments. Debt settlement programs are geared for people who have a financial hardship that makes it so they either cannot pay their bills or are about to start falling behind. Debt Settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are not paying your creditors. This means that a debt settlement solution of debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The trade-off here is a negative credit rating versus saving money. Debt Consolidation Loan Many people think first of a debt consolidation loan when seeking debt consolidation. It is really the only true consolidation, where the original debts are paid off by a lender who assumes the new debt. The most common forms of debt consolidation loans are home loan refinancing, taking out a second loan on a home (or a home equity line of credit) or, obtaining an unsecured loan. Since the credit crunch occurred, obtaining an unsecured loan at a reasonable interest rate has become quite difficult or impossible. In a debt consolidation loan, you exchange one loan for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt. It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation. If there is ever a chance that you cannot afford the new mortgage payment, you put yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30-year loan, which means that the total cost and the time to debt freedom could be very high, but the monthly payment will be lower than other options and there is no credit rating impact. Bankruptcy Bankruptcy may also solve your debt problems. A Chapter 7 bankruptcy is a traditional liquidation of assets and liabilities, and is usually considered a last resort. Bankruptcy is a public matter. You need to stand in public and declare that you are unable to pay your debts. Notices are published and your credit report will show that you filed for bankruptcy for at least 7 years. Since the most recent federal bankruptcy reform went into effect, a few years ago, it is much harder to qualify for Chapter 7 bankruptcy. It may be the case that a Chapter 13 bankruptcy will be the only one available. In a Chapter 13 bankruptcy, a person’s debts are reorganized. The debts are repaid, according to the terms established by the bankruptcy court. Chapter 13 bankruptcies usually run three to five years. If you are considering bankruptcy, I encourage you to consult with a qualified bankruptcy attorney in your area. Default You may be curious what may happen if you do nothing. If you stop paying your unsecured debts, creditors have the right to collect the debt. First, you will likely receive collection calls and letters from the creditor directly. If you are still unable to pay the debt after several months, the creditor is likely to refer the account to a third-party collection agency. Third-party collectors are known to be much more aggressive in their collection tactics than original creditors, so do not be surprised if the calls become more persistent, or even threatening. Thankfully, the Fair Debt Collections Practices Act established rules that govern the behavior of collection agents. However, unscrupulous debt collection agents do not follow these rules. If you know your rights, you can protect yourself from improper creditor contact. In some cases, when all other collection efforts fail, a creditor will decide to file a lawsuit against the debtor. This is not a frequent occurrence, but it is within a creditor’s rights and a possibility about which you should be aware. If one of your creditors sues you, the court will likely issue a judgment in the creditor’s favor. Depending on your state’s laws regarding the enforcement of judgments, the creditor may be able to garnish your wages, levy your bank accounts, place a lien on your property, or take other action to enforce its judgment. Regarding a credit report, defaulting on a debt damages a credit score severely. In addition, default is a warning flag for many lenders, who will refuse to deal with a potential customer with a default on their record. As a result doing nothing and allowing default is a poor option for most consumers. Summary Although there are many forms of debt consolidation, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the debt consolidation option that fits for you. Lastly, here are some fast tips for your own quick Debt Consolidation Evaluator: 1. If you have perfect credit and have equity in your home — consider a Mortgage Refinance. 2. If you can afford a healthy monthly payment (about 3 percent of your total debt each month), your interest rates are a problem, and you want to protect yourself from collection and from going delinquent — consider Credit Counseling. 3. If you want the lowest monthly payment and want to get debt free for a low cost and short amount of time, AND you are willing to deal with adverse credit impacts and collections — then evaluate Debt Settlement. 4. If you cannot afford anything in a monthly payment (less than 1. 5 percent of your total debt each month) — consider Bankruptcy to see if Chapter 7 might be right for you. Bills. com makes it easy for you to apply for traditional forms of debt relief. Recommendation Now that I have provided a general framework, allow me to address your specific situation. You can negotiate the $10,000 unsecured debt with your credit card issuers yourself, or you can hire a debt resolution firm to do the heavy lifting for you. A settlement amount of 50 cents on the dollar is certainly possible, especially if you can offer lump-sum payments instead of payments over time. I hope this information helps you Find. Learn & Save.

Debt Consolidation Advice And Help to Save

admin — Thu, 26 Jan 2012 05:27:11 +0000

If you want a free debt consolidation help savings quote from one of Bills. com’s qualified providers, click here: Free Debt Consolidation Help Savings Quote Now, lets get you some advice on what is the best debt consolidation program for you. Debt Consolidation Help comes in many forms, from payment plans to loans to resolution strategies, so it is important that you spend some time prioritizing your own personal finance needs, concerns and financial situation before signing up for any debt consolidation help program. The four primary concerns for most consumers are: i) monthly payment, ii) time-to-debt freedom, iii) total cost, and iv) credit rating impact of the debt consolidation program. Be sure to evaluate each program, relative to your prioritization of these factors. Since there are a variety of debt consolidation options, including credit counseling, debt negotiation/debt settlement, a debt consolidation loan, and other debt resolution options, it is important to fully understand each option and then pick the solution that is right for you. I will walk you through each, in turn. Credit Counseling – Credit counseling, or signing up for a debt management plan (“DMP”), is a very common form of debt consolidation. There are many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts — but with lower monthly payments. On average, most online credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan DOES show up on your credit report. . . and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy — or using a third party to re-organize your debts. This is typically a good form of debt consolidation help if you have lots of high interest credit card debt and just want a lower monthly payment. Debt Settlement and Debt Negotiation – Debt settlement, also called debt negotiation, is a newer form of debt consolidation help that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years — so they are a short programs with low monthly payments that can save you the most money while avoiding bankruptcy. It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Bankruptcy. The trade-off here is a negative credit rating versus saving money. Debt Consolidation Loan – Many people think first of a debt consolidation loan when seeking debt consolidation help. Usually, this is reserved for home owners with equity in their homes that can be tapped to payoff other debts. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one or more loans for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt. It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30 year loan, which means that the total cost and the time to debt freedom could be very high. . . but the monthly payment will be lower than other options and there is no credit rating impact. Although there are many forms of debt consolidation help, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the debt consolidation help program and option that fits for you. Bills. com makes it easy for you to apply and get a free consultation with a pre-approved partner, by following this link: Debt Relief Savings Quote Hopefully, one of the several options I have described above may be able to help you. I encourage you to explore the Bills. com Debt Help Information page to read more about these and other options available to you. I hope this information helps you Find. Learn. Save.

Debt Management Plan: Steps TO Make You Debt-free

admin — Sun, 22 Jan 2012 05:10:14 +0000

The financial plight and mental condition of a debtor is understandable by anybody who understands the value and power of money. Being under debt might incite many tumultuous thoughts and worries in a debtor’s mind, but the time would require him/her to think and act tactfully with practical and wise solutions to come out of all indebtedness. Federal Trade Commission and US government, has thus taken several initiatives and extended its helping hand by empowering and authenticating the Debt Settlement companies and Credit Counseling Agencies with their effective Debt Management Plans and Debt Relief options. A simpler definition of a Debt Management can be the regular practice of financial discipline and the habit of spending less than one earns, but in professional terms it implies the organized and legal method of bringing the debtor’s debts under control by a third party through application of relevant debt relief options like Debt Settlement, Debt Consolidation, Credit Counseling etc. Debt management is a structured repayment plan by the debtor to the creditor as a result of a court order or personal intention. Secured debts of car loans and home loans do not basically fall under debt management plan. The process involves a series of thoughtful and systematic steps by the Debt settlement company where they negotiate with the debtor and the creditor on some levels so that the debtor gets debt-relief without filing for bankruptcy and the creditor too is repaid an amount affordable by the debtor. Firstly, a list of all the creditors is compiled along with the amount owed to each by the debtor is totaled. Next, an assessment of the debtor’s total income and expenditure is made, such as car payments, rent payments, cost of living, household expenses etc and the same are totaled too. Later, the third party will fortify the debt settlement process by assisting you to determine the maximum amount of available money, allocable for debt repayment. In many cases the debt management plan attempts to reduce the debt amount to be paid and sometimes it waives off the high interest rates making it easier for the debtor to repay the amount, in case of high burdens to debts. One has to understand that participating in debt management can have an impact on the credit scores when for a period of time, the available credit may be inaccessible. Moreover, debtors having less than 10,000 dollars (USD) of debt are not applicable for debt management plan. However, after the changes in bankruptcy laws since 2005, many people find the option of debt management plan as a better debt solution option, rather than filing for personal bankruptcy. It is most likely that any debtor seeking for debt relief would opt for the best debt settlement option and thus should make it sure that the assisting Debt Management company is reputable and registered with the ‘Better Business Bureau’ and follow the rules and regulation mentioned by Federal Trade Commission’, which would ask for a small and nominal fee from the debtor for its debt management services.

Debt Help Advice After A Bankruptcy

admin — Thu, 12 Jan 2012 05:07:21 +0000

I can think of several possible solutions to your problem, depending on how old your debts are, your financial situation and how much money you can afford to allocate to your debts on a monthly basis. If you follow the links below, I can put you in contact with a company that may be able to assist you in resolving these debts. If you own a home, a secured debt consolidation loan may be right for you. This type of loan is essentially a home equity loan which is used to pay off your other creditors. Secured consolidation loans help many consumers by consolidating all of their debts into a single monthly payment with a lower interest rate and payment amount. However, be careful before you borrow money against your home to pay off credit cards and unsecured loans; you are converting what was previously unsecured debt into secured debt. This could cause you problems down the road if for some reason you are unable to make your payments, or if life circumstances force you to file bankruptcy, as you may not be able to discharge the secured debt as you would unsecured debt. However, secured debt consolidation loans work for many people, so this is an option to consider carefully–the Bills. com Savings Center is a great resource to help you find a lender for this type of loan. Bills. com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at: http://www. bills. com/mortage/refinance/. Another option to consider is a Consumer Credit Counseling Service, or CCCS. CCCS companies offer numerous services, such as financial counseling and budget planning, as well as Debt Management Plans (DMPs). In a DMP, the CCCS would arrange a new payment amount with each of your creditors, usually based on a reduced interest rate. You would then make a single monthly payment to the CCCS which would distribute the funds to your creditors, based on the new payment amounts. There are several drawbacks to CCCS, though. First, depending on your creditors, it may not be able to reduce your monthly payments enough to improve your financial situation. Second, it may have a negative impact on your ability to obtain a loan, so you may not wish to enter into a DMP if you anticipate any large purchases, such as home or an auto, in the near future. Third, the average DMP takes around five years to pay off your debts, so you must be willing and able to commit to a long-term repayment plan. You may also want to consider the services offered by debt settlement firms. Rather than making monthly payments to your creditors, these programs negotiate lump sum settlements with your creditors, frequently reducing your debts by 50% to 60% of your principal balances. These programs usually take only 2-3 years to complete, so this is a good option for many people to rid themselves of debt in a relatively speedy manner. In many cases they can also reduce your monthly payment toward your debt. There is one major drawback to debt settlement programs, though–they will significantly damage your credit while in the program and for at least a year or two afterwards. However, if you are currently unable to afford to pay your creditors, the hit to your credit may be worth the benefit of ridding yourself of credit card debt. Depending on your income and the type and amount of debt, one of the several options I have described above may be able to help you. I encourage you to explore the Bills. com website, http://www. bills. com/debthelp/, to read more about these and other options available to you. I hope this information helps you Find. Learn. Save.

How Would a Debtor Find About The Various Debt Relief Options?

admin — Fri, 30 Dec 2011 05:01:09 +0000

The presence of multiple debt relief options like Debt settlement, debt consolidation, credit counseling etc, give comfort to the debtors, but only to a certain extent, as they often get confused and mislead by the various debt settlement options in the market. The first organized step to get rid of your debts is to contemplate calmly and sensibly on your financial status and come across the most suitable solution that will make you debt-free in the shortest possible time, without much of its ill-effects. Let us consider thoroughly the actions and decisions that involve common sense and presence of mind, which helps a debtor to think clearly and act readily to become debt-free. Assess and evaluate carefully your monetary position, including your income and outstanding that you owe to the creditors, along with your necessary expenditures. Chalk out a proper and well-calculated budget and check whether you are capable of paying off the debts without any debt-relief options. If yes, contact your creditors and negotiate with them about the interest rates, period of payment and the debt amount, and fix up the payment procedure accordingly. If no, then go to the following actions. Talk with your close friends, neighbors and relatives about your financial dilemmas, they might be able to provide you with some wonderful solution from their own experiences, or even could help you out with some personal references. Check out the Better Business Bureau site and your nearby Federal Trade Commission office to know more about the most relevant option as per your condition. This could help you in finding out the legitimate, reputable and non-profit debt settlement companies. The Association of Settlement Companies (TASC) website and offices can also guide you about the same, and let you know about the best debt relief option for you. The internet provides numerous relevant and significant details about various debt relief options, debt settlement organizations with their websites, blogs, articles, bulletins, reports etc. Though there is a chance of bombardment of information, one often finds out the needed enlightenments through a focused and correlated search. The online forums, conversations and discussions are vital in its aspect of providing valuable and reliable sources of facts and data regarding debt, bankruptcies and debt relief options, to the debtors who visit and take part in these symposiums. Many archives can be found where a debtor has been hugely benefited from these forums, wherefrom he got the guidance and solutions from fellow experience holders. Lastly, contact and build a rapport with your local bankruptcy

Debt Reduction Companies

admin — Tue, 27 Dec 2011 05:30:03 +0000

Debt reduction is also known as debt negotiation or debt settlement. It is one of several debt relief options available to consumers who find themselves drowning in unsecured debt, such as credit card debt, medical debt, deficiency balance, payday loan, or other consumer debt. All debt resolution options — whether it be bankruptcy, credit card counseling, or debt settlement — have pros and cons. Like other debt relief options, debt settlement / negotiation has positive and negative aspects you need to understand. Pros and cons of debt settlement Instead of making monthly payments to your creditors, these programs negotiate lump sum settlements with your creditors, frequently reducing your debts by 50% to 60% of your balances. These programs usually take two to three years to complete, which is typically the fastest option for a consumer to reach debt freedom. The first, immediate drawback to debt settlement programs is that they reduce the consumer’s credit score during the duration of program and for a year or two after completion. The score reduction is not permanent, and credit scores are known to self-repair when the accounts are resolved. Because credit score calculations are based primarily on an consumer’s recent credit history, as the accounts are settled and age they tend to have less of an impact on the overall credit score. Typically, the fact that a consumer is working with a debt settlement company does not appear on a consumer’s credit report. As a result, the report will appear as if the individual settled the debt with the creditors directly, as opposed to filing bankruptcy or using a credit counseling program to eliminate the debt. Visit What You Need to Know about Your Credit Score to learn more. The second drawback is that collection activity will be taken against the consumer. This is because the consumer stops making regular payments to creditors. As a result, creditors will make multiple phone calls and send collection letters to the consumer’s residence. For many consumers, a creditor’s collection calls can be more stressful than the drop in their credit score. No honest settlement company guarantees they can stop collection attempts completely. Creditors and collection agencies have a right to collect on a debt owed. However, depending on the state where one lives, there are regulations that can help reduce call volume and collection activity. This can be accomplished using a cease communication form-letter that demands the creditor or its collection agent communicate through letters rather than phone calls. Some states have more consumer friendly laws than others, so the effectiveness of a cease communications letter varies. Consumers in debt are protected by the Fair Debt Collection Practices Act, a by a federal law that limits the activities a collection agent and creditor who collect on debts can take when contacting a consumer. Effective debt settlement firms will be able to assist you in reducing the headaches caused by collection agents and creditors. To learn more about collections please see Collections Advice. A third drawback is that some creditors may not settle an account for less than the face value. All creditors have a stated policy of not negotiating or settling debt. The stated policy is in place to discourage consumers from using debt settlement companies, and to encourage consumers to pay the full balance on their accounts. However, the reality is that all creditors have a history of resolving accounts. Before we explore the reasons why a creditor may not resolve a particular account, let us first review how creditors look at their accounts receivables. First, accounts with regular payments are considered current. When an account becomes 120 to 180 past due, the creditor is required to reclassify the account as non-current. Most creditors will then place a discounted value on past-due accounts and either sell them to a collection agent or transfer them to a department at the creditor that tries to collect on delinquent accounts. As an account ages, creditors will tack on fees and interest as a form of negative reinforcement to encourage the consumer to pay-off the account quickly. This means an account balance can increase over the course of the program. However, when the account is settled it is usually much less than the original balance. Generally speaking, the greater the amount of time since the last account activity occurs, the less the account is valued. Some collections agents will buy debt accounts from creditors at steep discounts — 5 to 50 cents on a dollar. Therefore, when an account is settled with a collection agent the agent often makes a profit even with a steep cut from the face value of the account. As mentioned, creditors have a stated policy of not settling accounts for less than the face value. The existence of debt settlement companies is proof this policy is words only. However, creditors will choose to refuse to resolve some accounts for less than the face value. Which accounts a creditor will not negotiate is a result of many factors. For example, if an individual made a large purchase, balance transfer, or cash advance shortly before defaulting a creditor may see this as an intent to commit fraud that the creditor does not wish to forgive. Another reason a creditor may not want to settle is that they may believe the consumer has sufficient assets or income to pay the debt owed. It is difficult for a creditor to determine a consumer’s liquid assets with accuracy. Some creditors have a policy of selling past-due accounts quickly, and others are more patient and negotiate sharply. There is no science to when and why a creditor will not want to settle. A significant advantage of working with a settlement / negotiation company is the history negotiators accumulate with each creditor. A debt settlement company’s underwriting department can assess the risk of a creditor not settling. The final drawback to debt settlement / negotiation is a potential tax liability. Under federal tax law, forgiven debt is considered income. Accordingly, a creditor is required to submit a 1099 to the IRS for any debt forgiveness exceeding $600 in value. Therefore, a consumer would be wise to consult with a certified tax preparer, CPA, or tax attorney with respect to the implications of being taxed on the forgiven debt. Generally speaking, many creditors do not issue 1099s, and as a result consumers do not pay additional taxes on the forgiven debt. Consumers who do receive 1099s do not see a significant tax penalty because their severe financial hardships are usually the result in significant loss of income, or events that allow for tax credits. IRS Form 982 covers certain hardship situations that may exempt or offset the tax liability caused by a large 1099 debt forgiveness. How to find a reputable debt settlement company The first step to finding a reputable debt settlement company is to consult with The Association of Settlement Companies (TASC) Web site. TASC is a non-profit organization with the goal to “to bring professionals, legislators, and consumers together to promote good practice in the debt settlement industry,” as stated on its home page. This organization was created in response to the lack of federal regulation of the standards and practices of the debt settlement / negotiation industry. Any debt settlement firm that seeks TASC membership must comply with standards that require members to provide consumers full disclosure of not only the pros of debt settlement, but also the cons. TASC enforces these rules on members by performing audits. For example, TASC “mystery shops” its members. Mystery shopping is where TASC contacts a member and acts as a consumer. TASC grades the member on how it represents its services. Some debt settlement companies have been barred from TASC for failing to meet the requirements of proper disclosure not only on paper, but also on the telephone (which is the most common way consumers enroll). There are different tiers to TASC membership. For instance, an accredited member is one that has had its company audited completely, which includes audit of at least two years of financial results. TASC is highly involved in working with state legislators to promote regulation of the debt settlement industry in order help protect consumers from “fly by night” companies that are only concerned with making a short-term profit, and not concerned with resolving consumers’ debts. The second step to finding an effective debt settlement / resolution company is to determine if the company is an International Association of Professional Debt Arbitrators (IAPDA) member. The IAPDA requires that its members have their debt consultants and account executives pass a certification test that requires them to understand and communicate the pros and cons of debt settlement to their clients. Finally, learn how long the firm has been in business. A long history is good because, as previously mentioned, a company with long history will have experienced underwriters and negotiators who have demonstrated an ability to negotiate effective settlements with a variety of creditors. The Better Business Bureau and the Debt Settlement Industry The Better Business Bureau (BBB) once rated debt settlement companies the same way the BBB rates other industries. Recently, the BBB adopted a policy that it will not give debt settlement companies a favorable rating. This is due to that fact that the industry lacks uniform regulation currently, and therefore it is difficult to assess debt settlement firms according to objective standards. The other issue cited by the BBB for debt settlement / resolution to work a consumer must be in a default status with creditors. In default, creditors are encouraged to negotiate an account. A consumer in default means the consumer is in breech of contract with their creditor. The BBB looks disfavorably at this aspect of debt settlement / resolution programs. However, by the same logic, the BBB should give negative ratings to all attorneys who practice bankruptcy or family law, because both consult with their clients about breaching contracts with creditors and others. The BBB came under scrutiny by Los Angeles Times columnist David Lazarus in his archived article Grading firms on a peculiar curve. What he and others are concerned with is the lack of consistency in the BBB’s grading policy. The Web site BBB Roundup illustrates this apparent conflict of interest found in BBB’s ratings. Google, which it is not a member of the BBB, merits an F rating. Yahoo, which is a member, merits an A. Both are well-respected organizations. Starbucks, a business known for excellent customer service, rates an F. It, like Google, is not a BBB member. BBB is not an arm of the federal or state governments. The BBB is a private organization that supports itself by collecting membership fees from the members it rates, and therefore it would be wise for consumers to take into account a business’s membership or non-membership when considering a business’s BBB rating. See the Wikipedia Better Business Bureau Criticisms section for more on the BBB’s business ratings. Choosing a debt settlement / negotiation company First, consumers should weigh the benefits and the costs of debt settlement / negotiation before deciding if it is the right option. See the link to the resource cited below for a discussion of debt resolution options. Second, when considering a debt settlement company, look at the company’s longevity. Make sure it is a member of TASC and IAPDA. Third, avoid a company that requires you to pay all fees up front. Debt settlement companies provide the service, so it is understandable they charge a fee. But make sure that the fee is rolled up into monthly payments and are spread out over the course of the program. That way you will see settlements occur while paying fees. For more information about debt settlement / negotiation and other debt resolution options, see What Are My Debt Consolidation Options? I hope this information helps you Find. Learn. Save.

Advice on How to Get Out of Debt Consolidation Loans

admin — Sat, 24 Dec 2011 04:59:32 +0000

First, I want to assure you that you are not alone in this predicament; many consumers find themselves buried in debt before they even know what happened. Thankfully, I can think of several possible solutions to your problem, but which option is the best for you will depend on how old the debts are, if you own property, and how much money you can afford to allocate to your debts on a monthly basis. If you follow the links below, I can put you in contact with a company that may be able to assist you in resolving these debts. Very quickly, if you want a free debt consultation with one of Bill’s approved debt help partners, click here: http://www. bills. com/debthelp/debt/ If you own a home, a secured debt consolidation loan may be right for you. This type of loan is essentially a home equity loan which is used to pay off your other creditors. Secured consolidation loans help many consumers by consolidating all of their debts into a single monthly payment with a lower interest rate and payment amount. However, since your husband is unaware of your debt problems, a consolidation loan secured by your home may not be a practical solution, as keeping this type of loan from your husband could be difficult. Also, be careful before you borrow money against your home to pay off credit cards and other unsecured loans; you will be converting what was previously unsecured debt into secured debt. This could cause you problems down the road if for some reason you are unable to make your payments, or if life circumstances force you to file bankruptcy, as you may not be able to discharge the secured debt as you would unsecured debt. However, secured debt consolidation loans work for many people, so this is an option to consider carefully?the Bills. com Savings Center is a great resource to help you find a lender for this type of loan. Bills. com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at: http://www. bills. com/mortage/refinance/ Another option to consider is a Consumer Credit Counseling Service, or CCCS. CCCS companies offer numerous services, such as financial counseling and budget planning, as well as Debt Management Plans (DMPs). In a DMP, the CCCS would arrange a new payment amount with each of your creditors, usually based on a reduced interest rate. You would then make a single monthly payment to the CCCS which would distribute the funds to your creditors, based on the new payment amounts. There are several drawbacks to CCCS, though. First, depending on your creditors, it may not be able to reduce your monthly payments enough to improve your financial situation. Second, it may have a negative impact on your ability to obtain a loan, so you may not wish to enter into a DMP if you anticipate any large purchases, such as home or an auto, in the near future. Third, the average DMP takes around five years to pay off your debts, so you must be willing and able to commit to a long-term repayment plan. You may also want to consider the services offered by debt settlement firms. Rather than making monthly payments to your creditors, these programs negotiate lump sum settlements with your creditors, frequently reducing your debts by 50% to 60% of your principal balances. These programs usually take only 2-3 years to complete, so this is a good option for many people to rid themselves of debt in a relatively speedy manner. In many cases they can also reduce your monthly payment toward your debt. There is one major drawback to debt settlement programs, though?they will significantly damage your credit while in the program and for at least a year or two afterwards. However, if you are currently unable to afford to pay your creditors, the hit to your credit may be worth the benefit of ridding yourself of credit card debt. Because of your financial difficulties, you may want to stop focusing on the importance of your credit score. Although you may have a good credit score, because of your low income and large debt amount, most lenders will likely see you as a high risk borrower, and may not be willing to extend you credit, so your actual credit rating may not good as you believe. A debt settlement program is probably the fastest way to resolve you debts, and once you repay your debts, you should be able to rebuild your credit score through careful management of your credit accounts. Hopefully, one of the several options I have described above may be able to help you. I encourage you to explore the Bills. com website, http://www. bills. com/debthelp/ to read more about these and other options available to you. I hope this information helps you Find. Learn. Save.

Pay It Off With Debt Management Programs

admin — Sun, 18 Dec 2011 04:56:17 +0000

Credit card debt is quickly on the rise in the United States and the rapid growth is somewhat worrying. According to Federal Reserve’s consumer credit department, Americans owed almost $2 trillion in debts in 2003; that was seven years ago! The number one reason being a lot of Americans spend way more than they earn. The American so-called ideal lifestyle is what compels most of us to swipe our credit cards more often than we really should. Credit card companies also now offer lower interest rates so most of us believe that creates a safety net for us to spend more without considering the consequences. It is definitely advisable for you to start considering getting some help in debt management if you feel like you are heading towards financial trouble. The signs are usually quite obvious but most of us would never admit that we are having problems with our finances until it is too late. Some of the signs that you need professional debt management help are as follows: · You are only paying the minimum balance every month; · You take frequent cash advances; · You borrow money to pay off your debts; · You are denied credit due to low credit scores. If you are going through any of the above, it is time to admit to yourself that you are facing a problem and that you need a professional third party to guide you through the process of clearing your debts. It is not always easy to trust a stranger with your financial woes especially since the majority of us do not even share our money problems with our closest friends and families. But the professionals are trained to be objective and will try to help you manage your debts without resorting to filing for bankruptcy. One of many ways to get your debts in check is with the debt management and debt consolidation services offered by many companies that specialize in helping the public manage their personal debts. Basically, consolidating your debt means you will be taking out a new loan to pay off your existing loans. Be advised though that you should never ever consider taking a loan from an unlicensed money-lender as that will put you in a whole other definition of trouble. Check with your professional consultant to see if it is a feasible option for you to consolidate your debt before you actually do so. This is to avoid adding more debts to your portfolio and end up paying a much higher interest rate than before. It is always essential that you restructure your debts so you could be more in control in managing your own personal debts. By consolidating your debts with the help of financial consultants, you will be able to discipline yourself in terms of consistently paying off your debt. Many banks now offer low interest rate on loans so as long as you start to consistently pay off your consolidation loan immediately after you paid off all your other debts, you are on your way to freeing yourself from being buried knee deep in debt. All of this might sound peachy to you but be advised that it is always best to seek help from a professional before you decide to consolidate your debts. Your consultant will advise you on the best option as there is no one standard formula on how to settle your debts. Under different circumstances, debt consolidation might not be the best option for you so you might want to consider other debt management relief options such as debt reduction and credit counseling. Your consultant will advise you on the various ways to settle your debts while giving you the freedom to make your own informed decision. You need to bear in mind that your consultants will advise on your financial situations but ultimately it lies on your own initiative and determination to settle your debts for good. You need to be focused and disciplined in order to permanently be rid of your debts. So although your consultants offer many solutions to your predicament, remember that it is all up to you to dig yourself out of your debt grave.

Unsecured Debt Consolidation No Hassle Debt Resolution to Regain Credit Ratings

admin — Wed, 02 Nov 2011 04:57:40 +0000

You now understand that the loan debt can be very difficult with high interest rates on all loans. It may not be enough money to pay your debts. This problem is not uncommon for people with credit card debt. Credit rating reduced card debt and increase again. Debt consolidation can offer troubleshooting credit card debt successfully. Debt brings all unsecured debts into one loan, which can be repaid with a single rather than multiple monthly payments. The number of unsecured debt consolidation loan can be defined in a single unsecured loan or an asset by the borrower acts as a safety enhancement. Debt Consolidation Company, such as DebtConsolidation123 provide work experience for people with financial difficulties because of the many credit card debts with high interest rates. The solution for your financial emergency, a debt consolidation loan with bad credit. Bad consumer loans at a low level on their credit reports due to reporting errors. These errors can prevent them from receiving loans premium. A bad credit records that the remedial actions, suits, judgments, federal tax, student loans. And more questions, late payments, depreciation, collection accounts, bankruptcy, paid or unpaid liens and unpaid student loans. Apply now to reduce your debt. . . !! Free no obligation consultation with non profit debt consolidation organization of independent credit takes you to the idea of introducing a debt calculator. Your average gross monthly income and earn extra income and regulate your responsibility to ensure effective debt can be made monthly operating costs and also allows you to provide, dollars saving for future emergencies. Qualified professionals with a company credit card debt consolidation is the creditors who lose everything during the negotiation of their debtors in bankruptcy. A debt consolidation loan with a lower interest rate and low cost affordable single monthly payment would be that even a drop of up to sixty percent of the outstanding debts to save money and lead you to debt free.