Showing posts with label Debt settlement. Show all posts
Showing posts with label Debt settlement. Show all posts

Friday, November 20, 2020

The 2020 Quick Guide To Solve Debt Quickly

Struggling with debt has reached epidemic levels in America. According to recent data, there is massive growth in consumers' ratio approaching credit card companies to declare a debt settlement. 

The majority of these consumers have been facing many problems because of non-response from their credit card companies, making them more pessimistic about trusting banks and lenders.

Where To Turn?

Today, the U.S. economy has a severe problem, with millions of families facing many issues due to their increased dependency on lines of credit. However, they are facing financial issues and a lot of mental and physical stress, due to which they have resorted to bankruptcy

With this, it is a common practice among consumers to choose debt settlement programs because this process of debt elimination can help them avoid many problems in the future.

Now, if you consider these facts, you will see a clear picture. Debt settlement programs are a legitimate solution to these issues, and consumers can easily avoid many financial problems, such as having precious personal items repossessed. 

These programs help consumers consolidate their loans into a single loan amount that can be manageable and paid down quickly, which can be done by approaching a legitimate relief service.

Who to Trust?

First of all, do your homework and know which companies are sincere and yet another parasite out for your blood. That might be dramatic, but it's shocking how many of these companies prey on struggling families and individuals.

Not only will a lot of credit card or lending companies refuse to negotiate or settle a debt with you, but a lot are also unwilling to deal with individual debt relief companies as well. This is because of their dubious dealings in the past. 

It's crucial that you study up on these companies. Read any reviews you can online, look them up in the Better Business Bureau, and ask any friends or colleagues if they have dealt with any companies like this in the past.

There are also simple red flags to look out for. Like promises or "guarantees." Debt settlement companies can't promise to settle all of your debt for a certain reduced percentage (no one can). There is no "new government program available" that helps bail people out of their credit card debt. 

It would help if you also were wary of any company charging fees before they settle any of your obligations. This is important because you shouldn't have to pay anything until you reach a deal that you agree to. They also can't stop all debt collection phone calls or lawsuits. And a reputable debt collection company will never tell you to stop communicating with all your creditors.

What Can Debt Relief Companies Do For Me?

Once you do settle (so to speak) on a company you know you can trust, they can help you sort out exactly what you need and don't need depending on your specific situation. They should know which loans or debts should be tackled and which should be left alone (for now).

When consolidating what you owe, a company may be able to get your interest waived altogether, reducing your principal balance, having monthly payments reduced into a single payment that you can manage, and only have you pay off a fraction of the total amount you owe.

While some drawbacks can include your credit score is affected and possibly getting approved for credit in the future, the positives most likely outweigh these. You can avoid filing for bankruptcy and the looming prospect of repossession. Not only that, but did you know it also costs you money to file for bankruptcy? 

You can save thousands or tens of thousands of dollars that you otherwise would have had to pay not only in your balance but in interest, and you also get the added benefit of ending those harassing phone calls and emails every month or every few weeks.

The burden of debt settlement can be a long and scary road, but these are things you can do and avoid to make the journey easier. Remember that your debt does not define you, and you can always take your debt back into your hands and settle it the way you need to.

Thursday, August 22, 2019

Use The Best Debt Settlement Approach and Get the Most Expected Benefits

At present, many people are facing lots of debt problems in their lives and think about how to solve such problems easily. They focus on the best techniques to reduce their debt and improve their credit score further. 

They can consider everything related to the debt settlement and make use of the professional guidelines to get rid of their debt within a short period. They can consult with the debt settlement FL and make a good decision to settle the debt issues on the whole. 

The complete details about the professional services from experts in the debt management these days encourage everyone to directly prefer and use such services.

Focus on the debt settlement at first

Well, experienced attorneys specialized in the debt settlement these days consider everything related to the overall debt problems of their customers. They assist their customers to deal with the debt issues from the beginning to the end. 

They are skilled at negotiating with every creditor to settle their customers’ debt for less than they owe. It is the right time to visit the official website of the Debt Quest USA and make use of the best suggestions to get the debt relief. 

You can seek advice from trained and knowledgeable professionals in the debt management right now. You will get the absolute assistance and be satisfied with the hassle-free approach to get the debt consolidation in Florida. 

Beginners to the debt settlement these days think about whether this approach is suitable for them or not. If they are behind on the debt payments, unable to make the debt payments, considering the bankruptcy and cannot afford to survive, then they can choose and use the debt settlement program from a professional team. 

They get enough assistance and reap benefits from the proper use of fast debt settlement assistance. If you are feeling burdened and overwhelmed with credit card payments, then you can prefer and use the debt relief process. 

There is no need to worry about problems like when you find yourself completely falling behind on your payments or able to make the minimum payment. This is because you can choose and use the debt settlement process as per your requirements.

Use the professional service on time

Different categories of debts are eligible for settlement. Some of these categories are credit card, medical expenses, utility bills, personal loans, apartment leases, cell phone bills, auto repossession balances, private student loans, and mortgage short pay balances. 

Easy-to-understand details about the debt settlement give you the most expected guidance and encourage you to use this process.

Experts in the debt management these days suggest the debt settlement FL services for everyone who requires the hassle-free method to reduce their debts and become debt-free within a short period. 

You can focus on everything related to the realistic budgeting techniques and use the debt relief services as per your requirements. You will get an array of benefits from the debt consolidation and focus on different aspects of the bankruptcy in detail. You will be satisfied with debt settlement and encouraged to use the professional service.

Monday, July 10, 2017

Debt Settlement- Debt Relief Solution for Saving Money

Debt settlement gives you a way to pay your creditors back while saving money. It helps you deal with financial challenges by enabling you to reduce the outstanding balance, avoid collection harassment and get rid of debt fast. 

If your goal is to eliminate debt faster through a manageable debt relief option, settling debt is a worthwhile solution.

Choosing a Debt Relief Option

Choosing the most ideal debt option for your situation involves looking at reviews, learning how the program works, finding out how much you can save and comparing the different options that are available. 

A strategic approach to your financial problems will make it easier to pick a suitable debt relief option according to your situation and adjust to another option as your financial circumstances change. 

Bills and Budgeting

Along with implementing debt settlement, you need proper budgeting to help you manage your bill payments and control expenses. 

A clear budget plan is essential for allocating the funds to pay bills, lowering unnecessary expenses, making payments regularly to avoid costly penalties and improving your credit score over time. 

Debt Settlement Services

You will be able to restore your financial life when you are proactive about your debts. There are debt settlement services and relief companies that can help you settle, renegotiate or alter the current terms of your debt to creditors. 

They negotiate with creditors to lower the total amount that you owe. Read debt settlement reviews here.

Consider your options when you seek to negotiate directly with creditors and get out of debt. Working with your creditors to create a manageable and affordable debt repayment plan can help you overcome debt. 

Before you embark on negotiations with creditors to reach a settlement, find out as much as you can about the debt and the functionality of the plan to ensure that you make a reasonable proposal.

Settlement Negotiations

Prepare for settlement negotiations and a realistic repayment agreement by understanding the debt, planning for a settlement proposal and negotiating a worthwhile agreement with the creditor. 

Learning more about debt constitutes aspects such as the entity that is owed or creditor and the total amount owed. You need to be sure about the creditor you owe and the amount. 

Making Repayment Proposals

When you want to make a repayment proposal, there are a number of factors that you need to keep in mind.

  • Be realistic about the amount you will be able to pay every month. 
  • Assess your priorities to avoid paying off debt while neglecting other bills that can cause further problems. 
  • Create a summary of your income and expenses that include how much you plan to repay and other payments. Make an effort to allocate some of your income to emergencies and unexpected expenses.
  • Make a decision regarding the overall amount that you will pay as settlement for the total debt. This may be in the form of a series of payments or lump sum. It is important that you focus on paying what you can afford. 
  • Effective negotiations with creditors while using a proposed plan for repayment are based on a clear explanation of your financial situation. 

Monday, December 19, 2016

2 Steps to Get Rid of Debt

If уоu аrе оnе of the many people who have credit card debt, уоu want tо take action аnd уоu should take іt right nоw. 

Dеbt is something that accumulates in longer period of time due to irresponsible behaviour (binary options trading, gambling, overspending) and wіll never gо away оn іtѕ own.

Onе оf уоur best орtіоnѕ is to еnrоll уоurѕеlf in a рrоfеѕѕіоnаl dеbt rеlіеf program. Bу doing ѕо, уоu get еxреrt help аnd advice. 

Sometimes, a frеѕh set of еуеѕ іѕ a great when іt соmеѕ tо сrеаtіng a full-proof debt rеlіеf plan. 

Rеgаrdlеѕѕ of what tуре оf relief program уоu enroll уоurѕеlf іn, you'll ѕtіll nееd tо work оn getting уоur fіnаnсеѕ іn оrdеr. Keep rеаdіng оn fоr some hеlр tірѕ tо dо ѕо. 

1. Decide Hоw Muсh You Can Pау

Whеthеr уоu еnrоll уоurѕеlf іn a lеgіtіmаtе relief рrоgrаm оr nоt, you have thе goal оf paying оff your dеbt. 

Tо еnѕurе success, уоu want tо create a goal fоr уоurѕеlf. A ѕеttlеmеnt company wіll gіvе уоu an еxасt fіgurе еасh mоnth tо рау thеm, аѕ wіll a consolidation соmраnу. 

If уоu аrе doing dо-іt-уоurѕеlf dеbt relief, decide оn a figure yourself.

Before knоwіng hоw much mоnеу you саn put tоwаrdѕ paying off уоur debt, іt is important to knоw hоw much "еxtrа" оr "frее" mоnеу уоu hаvе each month. 

Sо here іѕ whаt уоu ѕhоuld do. Get ѕtаrtеd bу grаbbіng a реnсіl аnd ріесе оf рареr. Nеxt, write уоur іnсоmе аt the tор оf thе раgе. Thеn, write аll уоur mоnthlу аnd wееklу еxреnѕеѕ. 

Thеѕе іnсludе fооd, gas, rent оr mоrtgаgе, саr payments, саr loans, utіlіtу bіllѕ, аnd ѕо fоrth. Add uр аll thе mоnеу уоu spend аnd ѕubtrасt іt frоm hоw much уоu mаkе. Thіѕ is the mоnеу уоu ѕhоuld аррlу towards gеttіng оut оf dеbt. 

Personal finances are hard work, and don’t expect to get them in order in short time. This process should be seen as a long-term financial strategy. 

2. Determine Hоw Muсh You Cаn Sаvе

Bу implanting thе ѕtер аbоvе, уоu ѕhоuld hаvе a figure. Thіѕ figure іѕ thе аmоunt of mоnеу уоu hаvе lеft оvеr each mоnth; it is mоnеу that ѕhоuld go tоwаrdѕ your dеbt. 

Here іѕ thе thіng thоugh, lеtѕ say уоur budgеt only ѕhоwѕ that уоu have $150 a mоnth lеft over. If уоu оwе $300,000 іn debt that wіll take уоu уеаrѕ tо рау off. 

So now your gоаl becomes ѕаvіng mоnеу; freeing up ѕоmе mоrе.

Sаvіng money іѕ a lot easier thаn іt sounds. Yоu mіght bе an іmрulѕе ѕhорреr оr уоu might be use to buying a lоttеrу ticket and a candy bar еасh tіmе уоu fіll up уоur саr at thе gаѕ ѕtаtіоn. 

A good mеthоd іѕ to ѕtаrt out ѕmаll. Only buy your lunсh at work once a wееk іnѕtеаd оf thrее, аnd ѕо fоrth. If уоu аrе ѕреndіng cash, limit thе саѕh уоu carry аrоund wіth уоu. 

If уоu hаvе a credit саrd that уоu can uѕе, lеаvе it at hоmе in уоur frееzеr for еmеrgеnсіеѕ оnlу. Thеrе аrе juѕt a few suggestions, but I аm ѕurе уоu gеt the роіnt.

In ѕhоrt, there are twо іmроrtаnt раrtѕ to seeking permanent dеbt relief. Fіrѕt, уоu ѕhоuld соnѕіdеr ѕееkіng professional help. 

Then, you muѕt work оn gеttіng уоur fіnаnсеѕ in оrdеr. Sее, debt and реrѕоnаl finance go hand-in-hand; you can't fix оnе wіthоut fіxіng thе оthеr. Good luck!

Thеrе hаѕ really nеvеr bееn a mоrе аdvаntаgеоuѕ tіmе fоr consumers to trу аnd eliminate unѕесurеd dеbt. 

Crеdіtоrѕ аrе vеrу соnсеrnеd аbоut collecting аnd most hаvе gоvеrnmеnt mоnеу tо make еlіmіnаtіng ѕоmе оf уоur dеbt fіnаnсіаllу feasible.

Monday, December 29, 2014

Debt Management: Is Settling Right for You?

You've probably heard the claims of companies able to "settle your debt for pennies on the dollar." If you feel like you're drowning in debt, that probably seems like an attractive option. Though the financial relief that comes from no longer having your debt is a huge step forward, the hit that your credit score will take may make you change your mind. Carefully consider all of your options before you make a decision to settle debt.

Debt Settlement Companies

A debt settlement company acts as an intermediary between you and the companies to which you owe money. They'll ask you to stop paying your bills and send them a monthly payment, instead. Part of this monthly payment is a fee to the company, and the other part goes into an escrow account for making the settlement. The settlement company will then contact your creditors and offer to make a settlement.

Perhaps the biggest downside to this method is that you're actively ignoring your bills without telling the creditors what you're doing. All of these missed payments will go on your credit report, where they will stay for seven years. As your payment history accounts for almost 35% of your credit score, even a single delayed payment can drastically lower it. This can be especially devastating for those with good credit. However, the debt relief that can come from settlement is significant and may be the only option for one who has found themselves deep in debt. A bad credit score can be recovered, while debt may increase over the years if it is not taken care of early on. 

DIY Debt Settlement

Another option is to eliminate the middle man and contact your creditors by yourself. To do this, you need to be able to pay the settled amount immediately, so save up a chunk of money or use your tax refund. When you have that money saved up, call the company and make them an offer. Like working with a debt settlement company, this method typically works better when you've missed several payments. At that point, the creditor may have written off your debt, or feel that it's better to take whatever amount they can get. This method may work better on debt that came from a sudden unexpected expense, such as medical expenses. Those who have incurred debt over time, as is often the case with student loans, would do best to seek professional financial advice for their settlement.

Not everyone is equipped to handle their own settlement. Unless you have considerable financial knowledge (and, preferably, a legal background), you should seek professional advice before you go forward on settling your own debts. When it comes to debt and money management, a small mistake can end up costing your for years to come. 

Impact on Your Credit

Not paying your bills has a huge impact on your credit score, and in order for debt settlement to work, you usually have to stop making payments for a while. For example, a payment that's 30 days or more late can reduce your credit score by 50 points. When a payment is delayed even longer—and you have more than one account that's reporting late—the results can be even more significant. The company will also report that you've settled to the credit bureaus, which some might perceive as a risk.

Debt settlement can work for many people, while others should look into other options. Consulting with a financial advisor, who can assess your unique financial situation, is the best way to know where you stand and what option is the right one for you.

Informational Credit to Hudson & Company Insolvency Trustee Inc.

Friday, June 20, 2014

Getting Your Creditors To Meet You Half Way

If you are like many consumers, you may carry high balance on your credit card accounts. With high balances come high monthly payments, and you may find that these payments are unmanageable with your budget. If you find it difficult to make your minimum monthly credit card payments, you may consider asking your creditors to meet you halfway.

What Your Creditors Have to Lose

Your principal balance on credit card payments equates to funds you owe to your creditors. If you default on that debt, such as by filing for bankruptcy, your creditors may not receive any of the money you owe them. They are aware that your financial struggles can equate to monetary loss for them, and they may be willing negotiate terms for you. 

Adjusting Financing Terms

You can consider asking your creditors to adjust the financing terms. For example, some creditors may be willing to reduce your interest rate. The interest rate is one of several factors that affect your minimum monthly payment, so a reduction in the rate may result in lower and more manageable payments.

Writing Off Debt

You can also ask your creditors to write off a portion of your debt. Some creditors may be willing to forgive a portion of the debt if they are assured that they will receive the rest of the money that you owe them. Some may request that you make a good faith payment with a large sum of cash in exchange for this settlement. When the principal balance is reduced, your monthly payments may decrease considerably. However, keep in mind that the IRS may consider the portion of debt that is written off as taxable income.

How to Get Started

Negotiating with your creditors can be beneficial to you, and many creditors are willing to work with you to set up a debt structure that is affordable for you if they know that you are struggling financially. However, some consumers have discovered that they receive more favorable terms with debt negotiations and settlement when they work with a company, such as Paddon & Yorke Inc, that specializes in this area. You can attempt to contact creditors on your own, or you can seek professional assistance by doing a consumer proposal in Toronto.

Debt balances can easily get out of hand, and the payments on your debts can stress your budget. If you find yourself challenged by your debts, your creditors may be willing to meet you halfway. You can reach out to your creditors to request adjustments to the loan terms or the balance owed, or you can seek professional assistance from a debt settlement firm.

Saturday, January 4, 2014

Grounds for Seeking Business Debt Help

Financial mistakes are a common thing that takes place when you run a business of your own. No single entrepreneur can run a business successfully without making a single financial mistake throughout his life. Mistakes happen and we learn from that. However, there are times when it gets very difficult to find out the correct way to come out of financial debts. The amount of debt sometimes keep accumulating wherein they reach such a point that it becomes way beyond your affordable limit to pay off the debt to the creditors. In such a situation, it is extremely necessary that you seek for a business debt help from a well-known debt consolidation company.

Top Reasons for Taking Business Debt Help

You might be having sleepless nights as the creditors are continuously chasing you for money. You are getting harassed day in and day out. The situation has reached a level where your creditors won’t stop harassing you until they receive their money back from you. Arguing with them is of no use as the calls keep coming from the customer care department and every time it is a different person who you have to deal with.

Bearing harassment regularly is something which is too disgusting and hence it is better to reduce the creditors. The best way for you would be a commercial debt negotiation with your creditors so that they come to an agreement to sort out your debt issue. This will stop the harassment right away.

On contacting one of the debt consolidation companies, you will be able to bring some reduction in your high rate of interest. They are the right people who can negotiate with your creditors on your behalf. It is very important as they will help you largely in getting your interest rate reduced quickly so that you can pay off the debt faster.

Debt consolidation companies come to big help as they can play a vital role in reducing your late fees and limit the same. They through their years of experience have learnt how to deal with the creditors and will do everything possible in order to get you out of your debt related problems.

The precarious financial situation stands as a hindrance for many individuals as they do not have the money to pay off the debts. This is where you can take business debt help from a debt consolidation company who will negotiate in their way to bring some reductions in your payment plans that is completely suitable for your situation.

The debt consolidation companies also offer you with a plan keeping into account your income and expenses, and your creditors whereby they try to offer you as much as help possible in order to save your maximum money.

You have to pay a certain amount of fee to the debt consolidation company for their suggestion. Some of them won’t charge you anything for their initial consultation. So fetch one of them and resolve all your debt issues instantly today! What are you waiting for?

Thursday, March 28, 2013

Will My Family Have To Pay My Debts When I Pass?

Finance - Financial injection - Finance
Finance - Financial injection - Finance (Photo credit: @Doug88888)
As we get older, we tend to think of things that we never found ourselves thinking about in the past. Questions like “Will my family have to pay my debts when I pass?” are often asked as we reach retirement. Unfortunately however, the answer isn't quite that clear when we do a search online. Some articles say yes and some say no. Another unfortunate part of this is that many articles I've read on this topic have misinformation all through them. So, without further ado, here is the REAL answer you've been looking for... 

Will My Family Have To Pay My Debts When I Pass? 

The bottom line is that you and you alone own and owe your debts. However, the topic gets a bit interesting when an estate is taken into consideration. If you have anything of monetary value to your name when all is said and done, this is also something that you own. Because you own your debts, your estate may be used to pay our debts before it is passed on to your family. Therefore, when you pass, if you have more debt than you do monetary value in your estate, chances are, nothing will be left for your family. However, this is a topic that is best addressed with an estate planning attorney or another estate planning expert. 

How To Pay Your Debts Quickly And Protect Your Estate 

Chances are, if you are reading this article, you may not have too much time left to plan for leaving something behind for your family. However, it's never too late to protect your estate by paying off your debts. Here are a couple ways that you can do that while avoiding debt scams... 

Option #1 – Financial Hardship Programs 

Due to recent economic hard times, many lenders have started to offer financial hardship programs. When it comes to credit cards, these programs are often called balance liquidation programs. When it comes to mortgages, these programs can be referred to as mortgage modifications. No matter what type of debt you are dealing with, chances are, your lender has an option that will help. All you will need to do is give your lender a call to find out if they are willing to help and how much they will help. However, it's important to remember that financial hardship programs may take years to pay off. Therefore, if you feel as though you don't have this time, you may want to consider debt settlement. 

Option #2 – Debt Settlements 

Although, I don't generally advise debt settlement because of the incredibly negative repercussions it can have on credit scores, in cases where consumers only have a year or two to pay their debts off completely, this is a viable option. When you enroll into a debt settlement program, your representative will help to create a payment plan that will meet your goals. As you make payments, they will not be given to the lender. Instead, they are held in a special purpose savings account until there is enough money to settle a debt. At that point, the debt settlement company you choose will negotiate the amount of debt owed with the lender and settle it for a lesser amount. 

The Bottom Line 

Although your family will not be held liable for your debts, it's important to remember that your estate will pay your debts before anything will be left for your family. With that said, if you feel as though you don't have much time left, it's always best to start aggressively paying down your debts. This way, your estate will be left to your family and not to pay your financial obligations! 

About The Author – Joshua Rodriguez 
This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance writer. Joshua's most recent work online has been his balance transfer credit card series. Join the discussion about this article, Joshua's series or any personal finance topic of your choice on Google+!

Sunday, February 24, 2013

3 Tips to Avoiding Bankruptcy with Credit Card Usage

Every day, millions of people all across the globe us a credit card. Credit cards can be used for anything from shopping to business expenses. A credit card makes it easy to purchase the items we need or want now, without having to pay any of our hard earned money upfront. 

However, credit cards can be a mean tricky devil. It is important for every credit card owner to be mindful of their expenses and usage so that they do not end up in debt. Many credit card users can fall behind on payments very easily and eventually have to file for bankruptcy to avoid the large sum of money debt they now owe credit card companies. It is best to avoid this situation and below is three helpful tips to allow you to do just that!

Set Credit Card Limits/Usage

It is important for every credit card holder to set a limit or usage amount. If you have one credit card that you use for gas purchases, then make sure you use the card only for that purpose. If you have a card that can only hold $1,000 then do not go over this amount. Be sure that the amount your card holds is an amount that you can pay. If you cannot make the credit card payments then do not make the purchase. Too many times, credit card holders will see an item they want and purchase it, with no thought to how they will pay for the item later. Think out each purchase so you are sure that you will not go into debt.

Emergency Only

A smart idea for credit card holders is to have one card that is for emergency use only. And by emergency use, I do not mean late night pizza and beer runs. One credit account should be open that allows you enough credit if your vehicle breaks down, you need an emergency flight to a loved one, etc. you need a line of credit that is good and upstanding so you have an option if something comes up that you cannot afford. However, be sure that you consider this card as an emergency option only.

Pay Your Debts

If you are going to use your credit card on a regular basis, then be sure to Pay Your Debts!!! It is essential that you never miss a payment. If you miss one payment, a fee is tacked on to the amount you owe. If you miss again, another fee is added. This can cause your bill to continue to rise and since you already owe a large amount of money, added debt is not something you want! This is why it is so important to be sure that you can pay the debt you owe. Make sure the monthly payment is something you can handle and always add extra to your payment, if you can, so the amount will be paid off quicker.

The basic goal is to use your credit card only when you need to and make sure you can make and do make your payments. If you stick to this golden rule then you will be able to have a successful line of credit and stay away from monster debt or bankruptcy.

Visit the author’s suggested site for Small Business Credit Cards.

Wednesday, November 14, 2012

Get Help to Get out of Debt

Debt Mummy Art
Debt Mummy Art (Photo credit: Brad_Chaffee)
Being in debt can be really bad for your mental health. The stress and pressure that it adds to your life can affect your relationship, your sleep and your general well-being. 

Too often, people who are in debt don’t seek out help soon enough, instead they bury their heads in the sand and hope that the problem will somehow go away. Of course, it doesn’t. The problem with debt is that if you do nothing about it, the amount you owe just grows as each missed payment will mean that more interest is added onto the amount that you already need to pay back.

If you are ready to admit that you need help with debts, then there are some different ways to go about finding that help.

First, be honest with your partner. As the old adage goes, a problem shared is a problem halved, and while this might not actually do anything to change the amount of debt you have, it will ease some of the guilt and pressure if you have been trying to hide the debt from your partner. They may also be better at managing the income that you have and help you begin to pay the debt back through careful budgeting.

If this isn’t the case, you can always talk to a friend or relative who is ‘good with money’. They can help you go through the list of your expenses and debts owing, and look at your income and then see the best way to start reducing your living costs and clearing the debt.

Your debt levels may be so significant that self-help is not enough. In this case you can contact one of the many debt management companies that are now in operation. They will help you devise a debt management plan or if necessary, organise a debt consolidation loan – where you borrow a lump sum in order to pay off all the individual creditors who you owe money. This means you will still be in debt, but only to the debt management company and you’ll only need to find one monthly payment. Although this may cost you more overall than paying off the individual debts separately, it will take a lot of the stress and pressure out of the situation as you won’t have different creditors chasing you.

Whatever step you take to start clearing your debts, it’s positive that you are taking the decision to tackle the problem and move forward, and that in itself is very motivational

Tuesday, February 22, 2011

5 Things You Need to know When Dealing With Debt Settlement Companies

We have had our experiences with debt collectors. The calls all day long and on weekends also. Starting in the morning, sometimes starting at 9:00 A.M. Sunday morning. We have learned to screen our calls but it's still annoying.

Two of our children have had some credit card debts go into default. The debt collectors started to call. There are probably 5 different debt collectors that still call on a regular basis. I talk to them to explain that my kids don't live here anymore and that they are wasting their time. It usually goes well, the caller is business like and we're done but I had one bad call with a nasty debt collector who was insulting. I can see how the tactic works. They make you feel so upset that you give them the rent money to make them quit calling.

With the constant daily calls you become desperate to in trying to pay your debts. That's when you think of trying that debt settlement company. Most debt settlement companies don't succeed in cleaning up your debt. The fees are enormous and the process is long and stressful. Sure there are some that succeed but the success level is low. When dealing with these companies you have to very careful. I have listed a few tips to help you navigate them.

1. Most debt settlement companies charge regardless of whether they ever settle your debts. They usually collect most or all the fee from you long before they have helped to eliminate your debts. You pay the fee whether your debts are settled or not.

2. Debt settlement services don’t provide instant relief. Most debt settlement services require you to deposit a specific amount of money in a bank account each month until you have enough to make a reasonable settlement offer. While you are trying to save, the debt settlement company’s fees are being deducted from your bank account. Saving enough for a settlement can take a year or more. If you have multiple debts, you will save for them one-at-a-time, so the whole process could take several years.

3. Debt settlement services can be very expensive. The charge is often based on a percentage of the total amount of debt that you want help with when you sign up for the service. A typical fee of 15 percent (some are even higher) on four credit card accounts totaling $20,000 would be $3,000. You would pay that amount regardless of how many of the accounts, if any, are actually settled.

4. Claims for success rates can be very misleading. Debt settlement companies advertise big savings but those claims often don’t take into consideration the number of accounts that are never settled or the fees that customers pay. Industry figures show that the majority of debt settlement customers drop out of the programs within the first six months, after they have paid a large portion of the fees but before their debts are settled.

5. Debt settlement programs don’t stop debt collection. Banks and debt collectors don’t have to cooperate with debt settlement companies and they can keep trying to collect the money you owe. While you are saving for a settlement, your debt may increase because of interest and penalties, you may be hounded by collection agents, and you can be sued for the debt.

Debt Settlement companies are everywhere they want your business and may make promises they can't keep. At first, they may stay on top of your program but as time passes either you or the companies lose interest and your case just becomes another account in their computer. There are better ways to settle your accounts which I will cover in another post.

Here are some additional posts about debt:

The Early Warning Signs of Debt

Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics