If you are considering buying a home one of the first steps you should take is to get a copy of your full credit report. This means getting your credit report from Experian, Trans Union, and Equifax. You need all three because each of these are used to determine your credit worthiness in the event you apply for any type of mortgage including: VA home loans, FHA loans, and conventional mortgages through Freddie Mac and Fannie Mae.

Why are you looking at your credit report so early? Well, the truth of the matter is that you are looking to make sure that you don’t have any credit report surprises standing in your way of getting that mortgage approval when it is crunch time. Problems with your credit report can cause problems with your credit scores which together could either prevent or hinder your efforts in getting low VA rates, or FHA rates or Conventional rates for your mortgage.

Credit reports are not created equal and each credit bureau gets and reports slightly different versions of your credit. What this means is that you stand the chance of having differences between the three different versions of your report and it is in these differences where problems can lie.

Some problems to look for include: mistakes in your name spelling, former and current home addresses, former and current employers, account balances, actual accounts you had and currently have etc.

Slight variations in any of these pieces of information can lead to lower credit scores and credit report red flags. For example, let’s say that you are put on your mortgage application that you have been living in one apartment for the past 4 years, yet your credit report suggests that you had a former address that is different from a year ago. If this is the case and you don’t catch it first, you could be in for a long ride of scrutiny from the mortgage lender to ensure that you are who you say you are. Sorry, but there is a ton of identity theft and fraud out there that lenders are challenged to make sure that all the “i’s” are dotted and the “t’s” are crossed. If they see something questionable it is their job to seek the correct information.

Another example of what you need to pay close attention to is your account balances and account limits. If your accounts are paid in full but still show a balance you could have a lower credit score. Likewise, if you have accounts that show lower credit limits than you actually have you should get the correct limits reflected on your report as you could be showing a lower credit limit to balance ratio. The lower the ratio (more debt to lower limits) the lower your credit scores. While this might seem like a minor point, it could make a difference of 10-30 points which could move you up an approval tier which could result in lower interest rates and monthly payments.

The list of issues with credit reports goes on and on. The important thing to do is to get a copy of your report and review it, well in advance of starting home buying process. The same advice actually applies to you if you are considering a refinance and you haven’t checked your credit in awhile. Do yourself a favor and get your report early and save yourself some headaches.

As a consumer, you must have a clear understanding of the program you are selecting.  Do not let any lender give you answers to questions that are not clear or you do not understand.  It is the consumer’s responsibility to understand exactly what their monthly mortgage payment will be and if this payment includes property taxes.  The consumer needs to select a program what meets their financial requirements.

When meeting with the lender, the consumer must be do the following:

• Always be truthful to the lender
• Have complete copies of last two (2) federal tax returns including all W-2’s on all borrowers
• Have copy of most recent paystub for all borrowers on the transaction
• Have a copy of last two (2) months bank statements on all accounts and any stock/investment accounts
• If refinancing, have a copy of most recent mortgage statement
• If refinancing, bring copies of original documents in regard to mortgage
• Prepare a list of all assets, including names of banks, average balances along with a list of all liabilities, i.e., auto loans, credit cards, 2^nd home mortgages.  Note the lender can receive this information via a copy of your credit report.  But having the information available at the meeting is important.

At this meeting, the lender will be able to approximate, what your debt to income ratio. The final ratio is determined by credit underwriting. 

By having this information available, the lender should be able to discuss with the consumer various types of loan programs, which will meet the consumer’s financial position.  If you are a new home buyer, it is important that you have money available for a down payment. 

The question of the day is? “How am I going to get out of debt?”  I am barely able to maintain my monthly mortgage and car payments along my other monthly obligations.

People are faced with every increasing pressure to get out of debt and is now more willing to consider a debt settlement program.  The average consumer wants to pay off their credit card obligations, but the lenders are not willing to work with the consumer.

Therefore, the consumer is let with no choice but to consider either bankruptcy or a debt settlement program.  Yes, there are other options available, a home equity loan or a debt consolidation loan from a lender.  However, because of consumer’s financial situation these options are usually not available to them. 

The debt settlement program is a better option than bankruptcy for most consumers.  If a consumer is considering bankruptcy they should consult an attorney before taking this step. Whereas a debt settlement program will allow a third party to negotiate on behalf of the consumer for a settlement of up to 50 percent off their current outstanding balances.

This is not a quick fix or easy step for the consumer. This program can take been 12 to 48 months depending on the consumer’s obligations. Basically, the program requires the consumer to place a set dollar amount aside each month into a “trust/escrow” account.  Once there is at least half of your lowest credit card balance, then the debt settlement expert will start to negotiate with your lender. The key to this program is that the lenders are more likely to accept some monies from the consumer than receiving nothing from the consumer if they file bankruptcy.  Under bankruptcy, normally the secured lenders receive their monies first and in most cases the unsecured lenders receive up to little or nothing.  By receiving nothing, the lenders have to write this off as a loss or bad debt on their financial statements.

So call today and learn more about Debt Settlement.

Before entering into any program, the consumer needs to understand how the program works and its affect on them.  Debt settlement may not work for everyone.  It is not a quick fix or overnight miracle for the consumer.  So if anyone tells you they can wipe way your debt instantly or in less than one month. You need to seek out another company, since the process can take between 12 months to 48 months. 

When you sign up with a debt settlement company, the consumer should ask the following questions:

• How long has they been in business
• Is the staff trained and certified
• What are the exact fees for this service
• What is the name of the bank and officer responsible for the trust account
• Are they listed with the Better Business Bureau
• Who will exactly be handling my account
• Ask for a contact list for the company

A legitimate business should able and willing to answer any questions you might have about their services. Also how your account will be handled on either a day to day bases or monthly bases once you have established the parameters.

As a consumer, you need to also know the drawbacks of a debt settlement program.  However, these drawbacks are less serious than filing bankruptcy or doing nothing about your situation:

·         Credit Score may be hurt – but your score has already dropped because of late payments or non-payments. You score will improve as your payoff the debt.

·         Tax ramifications – The IRS requires you to report as taxable income any amount of debt settlement in exceed of $600. This means an increase to your income.

·         Collections – The consumer may continue to receive calls from the lenders until they are informed you are using a debt settlement program. However the call may continue since it up to the individual lenders.

·         Fraud – As a consumer you might select the wrong debt settlement company.

The key to a successful resolution to your financial situation is to understand the progress and know the debt settlement company you are working with.

Again, this is no easy progress, but with determination and a willingness to solve the problem. A debt settlement program can and will work for you and your family.

Today consumers are facing a  hardship that  has been caused by not only the economic climate of losing their jobs or reduced hours to part-time but also by a medical emergency. Perhaps only making the monthly minimum payments on their credit cards but they were able to meet their monthly mortgage and car payments on time.

So during these trying economic times, the consumer is not only stressed out because of their job lost but their inability to meet their obligations.  The consumer must decide what is best for them and their family. Because of the emotional toll it is taking on them.

After the consumer, has reviewed the various options such as, debt consolidation, debt consulting, bankruptcy, do nothing or debt settlement.  They will see that a debt settlement option may be their best method to unburden themselves.

As what is debt settlement? Debt settlement is a managed approach used by a third party company.  This company will negotiate on behalf of the consumer to reduce their debt by up to 50% of the outstanding current balance.  Basically, the consumer places a set amount of money each month into a “trust account” until approximately half of what is owe on their lowest credit card balance. It is when the debt settlement company will start to negotiate with the lenders.  The lenders are more willing to take something on the balances than have the consumer file bankruptcy on them.  In a bankruptcy case, depending on the assets of the consumer, normally secured lenders get repaid first then the unsecured lenders.  In most cases, the unsecured lenders receive no money from the consumer.

The consumer wants to do the right thing not only for themselves but their families. A debt settlement program can take from 12 months to 48 months to complete based upon the outstanding credit card balances.  This program may cost the consumer less than their current monthly minimum payments.  It is not a quick fix program but a program that will allow the consumer the ability to repay their debt and repair their credit score.

Debt settlement is an alternative approach to the other methods that maybe available to the consumer.  A debt settlement company is a method to use by the consumer to get out of debt.  This debt is typically the consumer’s unsecured credit cards and medical bills.

The other methods which the consumer may consider are:

• Trying to manage their current debt themselves
• Debt consolidation loan
• Home Equity Loan
• Credit consulting
• Bankruptcy

Due to certain financial hardships, the consumer is not longer able to meet their monthly obligations.  This hardship has been caused by loss of job, medical emergency or death in the family. No consumer wants to file bankruptcy since that is the last course of action for the individual and their families. 

Debt settlement is an easier way to resolve the consumer’s obligations.  It is a method by which the unsecured debt is negotiated by a third party with the various credit card lenders. In most cases, the lenders are willing to negotiate a settlement of approximately 50% of what you owe on the obligations.  This is not a quick fix or an overnight process in reducing the consumer debt.  A debt settlement program can take between 12 to 48 months depending on the number of credit cards and the dollar amount outstanding. 

If the consumer is willing to work the program, then debt settlement is a way to proceed to reduce their debt. 

Credit card debt is almost a way of life in today’s economical time’s.   It’s so very easy to take out our credit cards and purchase everything from groceries to our utility bills on plastic. Some of the time people can pay these off the next month and they do not carry a balance moving forward . However, for others – this is just a way of life.

Which leads us to the question of what if the unthinkable happens?  I’ve been living paycheck to paycheck and living beyond my means.  Of course this will lead to a degree of worry, anxiety, fear and perhaps to denial of the severity of your financial situation.  Because  you don’t have a reserve or back up plans.  So, y ou have become obsessed with your money problems of missed payments, bill collectors calling and possible litigation.

Needless to say, it’s common for the consumer to avoid the collection calls which further adds fuel to the fire because the collectors just become more aggressive in their tactics.  You begin to experience depression but you need to get back to reality and deal with the situation head on!!!

In visiting Dave Ramsey’s website I came upon this comment….”Laziness is a character flaw.  You need to be willing to work and sacrifice in order to fix the situations that you created with your own irresponsibility.  If you are not willing, then you cannot be helped.”  I agree with this statement 100 percent. 

The consumer needs to toll up his sleeves and get ready to work hard.  You need to rip up the credit cards and start by being honest with yourself and your creditors.  It’s time to get proactive and deal with your situation today.

Contact a consultant who can answer your questions and put you on a path of financial freedom!

Today the consumers are asking themselves the following questions:

·         Is there are way off this financial treadmill?

·         How do I get rid of the emotional baggage I’m carrying because of my debt?

·         I’m I ready to face the hard decisions about a solution?

As a consumer, you can’t feel like you’re the only survivor on the lost island.  According to the American Bankers Association, “ delinquencies on consumer debt has hit a record 3.23%.” The percentage of borrowers at least 30 days late have hit its highest level in 35 years. In additional, consumer bankruptcy has increased by 22% from 2008 according to the American Bankruptcy Institute.

Consumers when faced this issue are reviewing their options.  One of the options is debt settlement.  Most consumer favor this program over bankruptcy.  Bankruptcy should always be the last resort for the consumer. 

Consumer are making decisions everyday that they need to get out of debt.  The majority of consumers want to pay their financial obligations in full.  This approach is currently not possible for some consumers.  The reason being the current economic climate along with the new financial hardship faced by consumer.

When you discuss, debt settlement as an option.  You will be told it will affect your credit score. This credit score is important to the consumer because its affects your ability to borrow money. David Leuthold, of The Association of Settlement Companies, indicates that many consumers seeking relief have already seen their scores plummet. “Basically, what they’re deciding by coming on to a debt-settlement program it more important than their credit score.”

If the consumer decides to use a debt settlement program.   The consumer needs to know that if their financial situation improves then they can opt out of the program and get back on track with meeting their financial obligations.

As a consumer, do you feel like the title of the 1961 Broadway play, “Stop The World – I Want to Get Off.” The consumer is not sure where to turn or how to get off the treadmill which is causing emotional and financial stress to them and their family. This is how many consumers are feeling with their mounting debt based upon financial hardship.

One of the alternatives to this situation is to consider a debt settlement company. The consumer is wondering how these companies know of their financial situation.  Basically, these companies have established credit parameters with the various credit companies and receiving list of names and addresses such as, debt over $10,000 or high balances whether you are current or not on your payments.

The consumer should ask the debt settlement company the following:

·         What are your proven strategies?

·         What is your success rate?

·         Are you listed with the Better Business Bureau?

·         How long have you been in business?

The consumer should be aware that if they try to negotiate with a lender on their own. The lender in some cases will not talk to the consumer unless they are already 60 to 90 days delinquent.  If you are already delinquent this is going to hurt your credit score and can not be blamed on a debt settlement company.

One of the key’s in using a debt settlement company is establishing:

• The consumer has some ability to pay a set amount each month
• That the debt settlement program is sound
• That a debt settlement is better than a charge off on their credit report
• The consumer needs to be upfront with the debt settlement company about their financial situation
• The consumer needs to stay in involved in the process.
• The consumer needs to document all contact with the settlement company and have a clear understanding of the program.

The consumer needs to remember it is their responsible. There is no quick fix for solving the consumer’s debt issues.  However, there is a way out of this situation.  Contact our debt settlement expert today to discuss your options and get started on your pre-approval.

There are several questions a consumer must ask themselves when faced with overwhelming unsecured credit card debt. One of these questions is “why use a debt settlement company?”  Or why not seek out other methods?.

The answer to the first two questions are a debt settlement company has the means and the experience to negotiate with your lender on your behalf to reduce your outstanding unsecured balances.  The other methods are doing nothing and working with a credit counseling company which pays the bills for you on a monthly basis. They do not reduce your debt nor do they normally get the interest rate lower. 

The debt settlement company will establish the dollar amount which needs to be placed in a “trust/escrow” account and will determine how long it will take to reach the first plateau of your goals.  This plateau is normally half of your lowest outstanding credit card balance.  At that point in time, the debt settlement company will start to negotiate on your behalf.  Here is an example:

·         Estimate new monthly payments of $750 (less monthly fees)

·         Under new debt settlement plan it will take between 12 to 36 months to payoff

·         Owe $19,000 on 4 credit cards ($3,000,$7,000,1,500, 7.500)

·         Currently monthly minimum payments of $2,300

·         Divide your debt by 40% for a new outstanding balance of $7,600

Yes, a debt settlement company does have some drawbacks.  However, your financial situation requires some type of action.  The consumer needs to investigate all the in’s and out’s of a debt settlement program and how it will work for them. 

Today’s debt continues to mount each month for  the consumer even as they started to tighten their financial belt. Needless to say, they are facing overwhelming unsecured credit card debt

Debt settlement may be an alternative to trying to work your way out of debt yourself. Depending on the amount of you debt, you could reduce your debt in half between 12 and 48 months.  This figure considers the amount of your debt, the number of credit cards and the amount the consumer is willing to put into an “trust/escrow” account each month. 

A recent article on MSNBC.com,  tells how one family eliminated $106,000 in outstanding debt over a five (5) year period of time. This family used a consumer redit counseling service. The article indicated the counseling service was taking approximately $2,000 from the couple to distribute to their credits.  This dollar amount was about half of the consumer’s monthly take-home pay.  This caused the consumer to take on a second job.

This is an example of paying off the entire balance including interest and all fees. Based upon information provided, this means the couple paid approximately $120,000 over five years. ($2,000 @ month times 60 months = $120,000).  

This method may have been the best solution for this couple.  You want to congratulate this couple on taking on this task and paying off their bills in full. However, if you compare this situation verse debt settlement.  The debt settlement company may have been able to reduce the couple’s debt in half from $106,000 to $60,000 and may have been able to do it in less time. 

Every consumer needs to decide for themselves which is the best approach for them and their family.  Call us today and see if this will work for you and your family.

Today’s consumer is overwhelmed with both secured and unsecured debt. This debt burden is causing not only a financial crisis but an emotional crisis within the consumer’s family.  When a family is overloaded with debt and trying to keep their head above water several things need to occur to assist with this situation.

The consumer needs to step off the financial and emotional treadmill they have built for themselves. There are several ways to approach the problem.  The consumer need to investigate the solutions that are currently available for them and their particular financial situation. 

The most common methods are:

·         Bankruptcy – This is the most serious of solutions to your problems.  Please consult an attorney.

·         Debt management/debt counseling – Basically, this program works to get the interest rate lower but the balance is not reduced.  These type of programs are reflected on your credit report.

·         Debt settlement – A third party works on your behalf to negotiate with your lenders to cut your balance from 40 to 50%.

·         Home  equity loan – This is 2nd mortgage against your home if you have any equity in the property.  This is normally an interest only loan with the rate floating at prime rate plus some percentage above prime.

·         Do nothing – This is not a good way to fix the problem.

This is not an overnight solution for the consumer.  If you select debt settlement, you will need to understand all the steps involved in the process. However, it is a method  to reclaim your finances and relieve yourselves from the pressure of the mounting debt burden.  

According to debt expert Gerri Detweiler, author of “The Ultimate Credit Handbook”, “It’s a little-know fact that when you fall further and further behind on your payments, creditors would much rather agree to settle your debts than have you file bankruptcy and not get paid at all.”

So call an expert today to find a solid solution for your problem.

What is debt settlement? The consumer has been bombard with unsolicited mailers and advertisements on television about debt settlement.  So, with that being said what do I need to know before moving forward?

Is Debt Settlement a good alternative to get out of debt?  Debt settlement is when a third party company negotiates on the behalf of the consumer to reduce outstanding unsecured debts.  The consumer needs to be aware of all the steps involved in using a debt settlement company. Before deciding on a debt settlement company, the consumer needs to ask themselves the following questions:

• Does the consumer understand have their credit score will be effected
• What has caused my financial situation, i.e. lost job, medical emergency
• What are my alternatives, debt consolidation, debt counseling, bankruptcy
• Is the consumer ready to work their way out of debt

When selecting a debt settlement company, the most important issue is having a clear understanding of how debt settlement program works. Here are a few steps to determine if a debt settlement program will work for the consumer:

• List all of your unsecured debt. Is it more than $10,000?
• What is the total of your current monthly minimum payments.
• What can you afford to pay monthly?
• Are you currently late on your unsecured credit cards?
• Are you committed to establishing a budget and living within you current means?

If you have answered yes to any of the above questions then you are a candidate for debt settlement.  The key to completing a debt settlement program is knowing 1) you can make the new established programs monthly minimum payment, 2) know that the debt settlement company will start to negotiate with the lenders when you have approximately half of your lowest balances in an trust account, 3) know your credit score will be effected in the beginning, and 4) know you maybe subject to taxes on the unpaid balances.

It’s time for you to move forward and speak with a representative today!

As a consumer you have been bombarded with ways to get out of debt.  If you have unsecured debt of more than $10,000 and  you have been receiving letters from various companies or attorney’s for debt settlement companies.  But as a consumer you need to determine if debt settlement will work for you and your family.

As a consumer you need to know the steps involved in this process and if it is the solution for you and your family. Debt settlement is a way to approach your outstanding unsecured credit card debt. The debt settlement company is a third party company who on your behalf will negotiate with your various lenders. 

Here are a few of the steps of that process:

·         Consumer stop using their credit cards

·         Consumer stops making monthly payment to the lenders

·         Consumer starts making a set dollar amount each month into a “trust account”

·         When this account reaches approximately half of the outstanding balance of your lowest balance debt ( owe $4,000 and $2,000 in account)

·         Debt settlement company starts to negotiate with lender

·         This process is repeat until all of your debts are settled

·         Establish a financial budget for the future

You must ask the questions of your debt settlement company and understand their answers. You need to be clear on what the steps are and how this process will affect you and your family during this financial crisis. 

Debt settlement is an alternative to the other options available to the consumer.  If the following options like debt consolidation, debt counseling or bankruptcy do not appear to be the right approach for you.  Then consider a good debt settlement company as a way out of your current financial situation.

As the new school year begins it’s time for the consumer’s to take hold of their unsecured debt.  This debt will only grow over the next several months as the holidays approach and will continue to add pressure to the family situation.

So how does the consumer stop this pressure and get out of debt?  One of the ways to put the brakes on this situation is to consider a debt settlement program. A debt settlement program is designed to reduce the overall unsecured debt of the consumer.

The debt settlement program will have some possible drawbacks for the consumer which need to be considered.  The consumer’s credit report will take a hit in the beginning of this process however the consumer’s credit may already been hurt by:

·         Too high of outstanding balances

·         Late Payments

·         Too much credit

·         Tax liens, judgment’s, repossessions, etc

The program establishes a “trust account” into which monthly payments are make until there is enough money to begin to negotiate with the lender. In most cases, the debt settlement company can reduce your debt up to 50% or more. This may be a better  alternative than to file bankruptcy or doing nothing about the situation. If you are considering bankruptcy please consult with an attorney before taking that step or at least call a debt settlement company to understand your option.

Other consideration that the unpaid balance maybe considered income and is therefore taxable under your normal tax rate.

If the consumer does consider the debt settlement option.  They then had started the journey of getting out of debt.  One of the positives to possible come out of this unfortunate situation is the consumer is now motivated to learn how to handle their expenses and money in the future. 

There is no easy fix to large amounts of unsecured debt. But the consumer needs to face the situation head-on a deal with it in a responsible manner.  So call Debt Negotiation Zone  today to discuss the complete ins and outs of the program.  Give you and your family a new peace of mind and start anew.

In today’s society many Americans are addicted to buying almost everything on credit. The retailers make it possible for us to thrive on this concept with  buying everything on credit.  Perhaps out of convenience – to simplify their life or maybe out of personal or economical hardship.

However, it doesn’t take long before your wallet is filled up with bank cards and department store cards.  Most people think that it is easy to pay them off at the end of the month.  Easier said than done. Many people start to justify reasons to use the cards.  It’s easier than to part with cash.  Then it’s the Holidays, presents to buy, short trips, dinner out with friends, the reasons are endless. 

The debt builds up slowly with no  major purchases to show for.  And before you know it – you can be thousands of dollars in debt with no end in sight.  This type of consumer debt is considered unsecured debt verses secured debt.  The difference between the two types of debt is at secured debt is backed by some type of collateral with fixed payments to reduce the debt while unsecured has high interest rates, no tax advantages and is not collateralized.

The consumer continues to build up debt because they are paying only the bear bone minimum. The credit card companies only require you to make a minimum monthly payment of between 2 to 3 percent of your balance in order to continue using your card while continuing to add a monthly finance charge to your balance along with late fees and over limit fees in some cases.

 In the beginning, the consumer feels it’s alright about repaying only the monthly minimum payment because they believe the next month they will be able to paid more on their account. This gives the consumer a feeling of confidence to continue to spend more freely  and leads them down the path of spending more than they earn each month.  However this spiraling debt only continues to grow and the consumer is now facing added pressure to met their financial obligations.   

Because of this spiraling debt, the consumer needs to consider how to get out of debt.  One of the options for the consumer is debt settlement.  Debt settlement is a method by which a third party works on the consumer’s behalf to negotiate with the credit card companies.  This process requires the consumer to stop using their credit cards, budget their finances and start saving a certain amount of money each month.  This money is placed in a “trust” account and until it achieves at least half of your lowest balance credit card before the third party company can start negotiating.  This process may take between 12 months to 48 months to clear all of your unsecured debt. 

Now is the time to explore how our debt settlement company can help you out of the depths of financial problems.

The old saying is you can’t take it with you.  But, does that apply to credit card debt? A number of factors including the state you  reside in, who applied for the card can radically alter the situation. Unfortunately, there is no cut and dry answer. 

Here is the simple scenario – if the card was yours alone, with no joint account holders the debt is yours alone too.  When you die, your estate is responsible for paying off the balance.  If your estate goes through probate your executor will take a look at your assets and debts and be guided by the law to determine in what order the bills should be paid.  If your estate or assets don’t cover the bills – the  credit card companies will be notified and the debt is written off.   

Another scenario however in which someone else could end up with the debt is if you share the account.  If though, the second cardholder is merely an authorized user – didn’t sign the application, just has charging privileges they are not responsible.  If a spouse or family member signed the credit card application as a co-signer then that person could be liable for the balance on the card along with the estate. 

Community property states:

·         Alaska

·         Arizona

·         California

·         Idaho

·         Louisiana

·         Nevada

·         New Mexico

·         Texas

·         Washington

·         Wisconsin

The above states generally are regarded as assets accumulated during a marriage are considered joint property and in some cases so are debts. Please keep in mind that all states have variations so you need to ask more questions. If you late spouse has a separate account and has a debt it possible the debt could pass to the spouse.

Finally, the executor should notify the credit card companies that the account holder has died.  You will need to send in a certified copy of the death certificate.  Also, keep a copy for your records as proof of what was sent and when.

That is a question that people are asking themselves every day.  Our backgrounds are different but the circumstances are very similar in our behavior.  A spouse’s lack of financial maturity and cooperation left one family falling further and further behind.  A  young couple trying to fix their financial failures and live well beyond their means suddenly are meant with the unexpected.  And finally  a single parent taking out thousands of dollars in credit card advances to pay for medical bills. Thus developing symptoms that become common in all of us – procrastination, inertia, helplessness and cluelessness in all things being financial.

We then try to place blame for our financial picture however the following is of our misgivings:

• Most people lie about the severity of their debt while others live in denial
• Anxiety or fear
• Not having enough money
• Lacking sufficient time to pay off our credit cards
• Uncooperative spouse
• Laziness

So, with that being said  – there are options to these  financial circumstances.  In order to work with a debt settlement company, a consumer needs a lump sum or build up enough funds over a pre-determined time.  Once enough funds are built up the negotiation process can begin.  The debt settlement company negotiates on the borrows behalf with creditors to reduce the overall debts in exchanged for an agreement upon regular payments to be made.  Only credit cards debts can be handled, not student loans, auto financing or mortgages.

Researching and comparing debt settlement companies will allow you to determine the company that meets your specific situation.

A historical look at a debt settlement program is nothing new for the consumer or for the lenders in regard to unsecured debt.  Some type of settlement practice has been in place for over 100 years.  The plan may not have been called debt settlement it might have been know as debt relief or debt forgiveness depending on the amount of the settlement.

The only form of relief for a consumer was bankruptcy, debt counseling or debt consolidation. Debt settlement was a little known way for consumer’s to find a way out from unsecured credit card debt. 

If you call your credit card company to work out a deal, they typical will work out a payment plan for the whole outstanding balance.  Therefore, the consumer is not gaining any ground is trying to get out of debt. Plus the consumer might simply walk away from the debt altogether, by filing bankruptcy then the credit card companies received almost nothing on the outstanding debt.  This hurts the financial bottom line of the credit card companies.  Therefore, they are more willing to work with a debt settlement company and receive at least 50% or less on the outstanding debt than maybe nothing at all from the consumer. 

The phrase, “a bird in hand is better than nothing” can apply to why credit card companies are willing to negotiate with a debt settlement company. It’s a process which requires discipline by the consumer, but it is a better way to handle your outstanding debts, without having to file bankruptcy or doing nothing about your debt. 

One question that every consumer asks is, why would a credit card company, be willing to work with a debt settlement company instead of with me the consumer directly?  The answer to that question is simply. The debt settlement company has a better understanding of the consumer laws and has experience dealing with the credit card companies.

So take at first step and talk to an experienced debt settlement representative today!

In today’s economical climate – debt can make life difficult to enjoy.  It’s part of our reality.  Two possible solutions to resolving this burden can include bankruptcy or debt settlement.  Let’s examine these possibilities.

You first need to determine if you can pay down your debts with your present income.  If your current expenses exceeds your basic living expenses debt settlement may help you resolve your financial situation. If your income does not exceed your expenses such as mortgage, utilities, car payment and insurance and your basic household needs then debt settlement is not a solution for you. Examine the pros and cons of committing to a debt settlement company You want to work with a reputable debt settlement company. Look for companies with a sound history and proven track record.   Also, ask how a debt settlement program will impact your credit in the future and what the long term effect on your credit as well.

If you have no other option for resolving your financial situation begin to do your research on bankruptcy.  You need to determine if you even qualify for bankruptcy by reading the most current U.S. Bankruptcy Code’s. Depending on the types and amounts of your debts, a bankruptcy will not necessarily rid you of your obligations to pay some of your bills even though you filed bankruptcy.   Make an appointment to discuss your financial situation with an attorney who specializes in bankruptcies.  It is important to have the attorney give you a written quote for their services to represent you in court.

Finally, consider whether filing bankruptcy will resolve your financial situation. Keep in mind that a bankruptcy filing remains on your credit report for ten years and can have a significant impact on your future and your ability to re establish  yourself.

There are various kinds of options that consumers are given to get rid of their debts. In your credit  card debt payments have spiraled to 25 percent to 50 percent of your take home pay, you probably need some help with getting that problem corrected.   In today’s economy you are probably reeling from the weight of your credit card bills.  As painful as the situation is – you can fix your financial situation with Debt Settlement.

The debt settlement company negotiates on the borrowers’ behalf with creditors to reduce the overall debts in exchanged for an agreement upon regular payments.  The debt settlement companies typically have relationships during their normal business practices with the credit card companies and can come.

You see, debt settlement consist of long term payment agreements which can last from 12 -48 months.  If you are considering a Chapter 13 Bankruptcy that involves a long term repayment schedule from 5-7 years The process of Debt Settlement can be completed in a matter of months, depending on your ability to  pay the reduced settlement balances to your creditors. 

If your anxious to put your debt behind you sooner rather than later, you’ll be pleased with your decision to choose debt settlement to resolve your current financial situation.

As a consumer, you need to know the definitions and differences between debt settlement and debt consolidation.

Debt consolidation is described as taking out a loan to pay off other unsecured financial obligations. When the economic climate was better, a consumer would go to their bank and apply for a home equity loan as a method of consolidating debt.  However, a consolidation loan normally involves securing this new loan against an asset which serves as collateral for this obligation.  A home equity loan was cheaper than the combined interest rates on the consumers outstanding unsecured credit card debt. The interest rate was normally a floating rate associated with prime rate plus a specific percentage above prime. But this does not solve the problem for the consumer, since they only added new debt to their current situation and repeated the cycle of using their credit cards. 

So in today, economic environment, the consumer’s primary asset is their home.  But as we know, the equity positions in the home’s are not holding their value. The majority of banks in today’s market are not lending unsecured monies to consumers for consolidation loans with some type of collateral.

A debt settlement program, is a process to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full. By using a debt settlement program, in some cases the outstanding debt by can be reduced by more than 50%. The process involves you putting aside a certain amount of money each month to accumulate monies for the negotiations to begin on your behalf. 

 Debt settlement when compared to debt consolidation is a better option.  Because as a consumer you are taking charge of your repayment plan.  You are reducing debt not adding more debt by using a debt settlement company.

Consumer’s today  are buried under a mountain of unsecured debt and their largest asset, their home is losing value. One of the goals for consumer’s in today’s economic climate is to improve their financial condition.

So what does the consumer need to did to get back on track?

Here are five options to consider:

One option is to continue to pay the minimum monthly payments to your creditor for the next 10 to 15 years. This does not eliminate the debt it will continue to climb depending on your interest rate.

The second option is debt consolidation loan which is another way of dealing with your debt by consolidating into one monthly payment. But this does not eliminate your debt it only adds to your problem.

The third option is Bankruptcy. But this is not a pretty way to go for the consumer. As the law’s have changed over the years, it’s not as easy as it once was. You need to contact a lawyer to discuss the differences between Chapter 7 and Chapter 13.

The fourth option is credit counseling / debt management. This is a program offered through non-profit credit counseling agencies. Basically they work out a plan with your creditor in which you pay a specific amount each month and the monies are divided between your creditors.  Again, this is not eliminating debt just adding more interest  to your debt.

The last option to consider is debt settlement.  This is a program in which a third party acts on your behalf to negotiate with your creditors.  Each month you set aside a certain dollar amount as that amount grows, the third party starts negotiating to settle your debt. This process can in some cases eliminate up to 50% of your outstanding debt. 

Debt settlement is the option that many consumers are taking to eliminate credit card debt.

Due to unfortunate circumstances in our nation as well as around the world, many of us are struggling to make ends meet. We have rising prices in the cost of heating and cooling our homes and maintaining our cars. Shoppers are shocked at cost increases in groceries, clothing and other miscellaneous items. How do we manage to deal with these expenses? Those with adjusted ARM home mortgages, car and credit card payments in addition to normal costs of living often just can’t stretch their available income to cover everything and sometimes the house mortgage is one of those left unpaid.

Do Not Give In To Collectors

We frequently receive unwanted and unnecessary threatening phone calls from collection agencies for our past-due credit cards. When faced with choices of which bills to delay a month, we give into the pressure and make the minimum credit card payment. These collection agencies are quite skilled in intimidation and scare-tactics and sometimes that’s the best method for these collectors to get overdue payments as the debtors just want to get rid of the harassment.

Meet Your Living Expenses Before Paying Credit Card Debt

Although it’s not proper to neglect to pay your just debts when money is limited, decisions need to be made as to importance of the bills you are facing. Being on limited income and continuously facing higher costs of living, it’s a necessity to decide on what takes priority for payment and what can take a “backseat” for a month or two.  Housing, car payments, utilities and food costs must be met. Also, to be considered are insurance premiums. In some communities, medical needs will not be met unless one carries insurance, although the cost of these premiums can increase budget costs. State laws require car insurance, because should you not carry liability coverage and are involved in a car
accident, serious legal consequences will follow.

Prioritize Your Bills

After planning your budget and paying the most necessary bills, then should you have money remaining, make those credit card minimum payments. If left without any money, then don’t be stressed out over the unpaid credit card bill(s). It is not likely your wages will be garnished. You will probably receive more unpleasant phone calls from credit card collectors, so calmly explain you’ve paid your main housing/living expenses and have depleted your funds.  If bill collectors get nasty, lose their temper or start being obnoxious, you could lay phone down without hanging up and walk into another room. Losing your “cool” and responding to their verbal abuse lets them “win” which is their real motive or intention.

Catch Up Later On Credit Card Debt

After your financial circumstances improve, plan on catching up on all your overdue bills especially clearing up your credit card indebtedness. Try to pay off the least amount owed first, and then apply that amount to the next higher bill. Eventually, you’ll be able to get yourself out of debt. But be careful that, after doing so, you use wisdom by using credit cards only when absolutely necessary, and if possible by paying the entire balance off each month.  Remember though that the most important issue is in keeping current on your house payments and normal living expenses.  If you want more information on negotiating with bill collectors Negotiating with Collection Agencies, Bill Collectors, and Debt Collectors – 10 Tips.

Debt Free Dave has been in the mortgage and consumer finance business for over 10 years. He has a Finance and Real Estate degree from the University of Arizona. This Article is designed to be of general interest and should not be considered legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.

What is Christian Consumer Credit Counseling?  I have done some research on what Christian Debt Management is and honestly I do not know how it differs from regular mainstream debt consolidation and debt reduction.  It does seem that the advertising uses a lot of reference to the bible.  It appears to be just a marketing ploy to make people feel at ease about signing up for a debt management program.  My guess would be once you pull up the hood and take a look, it would just look like any other debt management company. They are probably just interested in signing you up to make money rather than serving God.  People are untrustworthy when it comes to money.  Good church people with throw integrity out the window for money. Be careful.

Check Out A Christian Debt Company before you sign up with them

Before you sign up for Christian debt services make sure that you check them out.  I would Google them, call the better business bureau and even contact your local consumer protection agency.

God helps those who help themselves.  Don’t take their word for it, check it out thoroughly before you sign up with a Christian Debt Outfit.