The biggest problem facing today’s consumer is unsecure debt. When facing this financial challenge the consumer may want to consider a debt settlement program. They want to paid off their credit cards but have been struggling because of possible job loss or reduced salary or a medical emergency.
Let’s take a quick review of what it’s costing the consumer on their unsecured credit cards. For example:
· Credit Card debt of $30,000
· 3 years of interest at 19% is $17,100
· 5 years of interest at 19% is $28,500
The above interest figures do not calculate any principal reduction on the $30,000 outstanding. So you can see that you are not making any headway on reducing your debt only adding to your financial situation.
If you have faced a financial hardship, then consider using the debt settlement method. Under a debt settlement program, a third party will negotiate with the lenders to reduce you debt possible up 50%. This would mean you would cut your outstanding balances in half and would save up to $17,100 or $28,500 over the next three to five years.
Debt settlement may not be the right program for everyone. However as a consumer, you need to call a consultant today to discuss a program that is right for you and your family.
“Everyday do something that will inch you closer to a better tomorrow”..Doug Freibaugh
The consumer needs to explore all their options when considering a way to get out from underneath their unsecured debt.
There are several ways to approach this financial situation which has been created. Some of the options are:
- Bankruptcy – Chapter 7 and 13
- Debt Consulting
- Debt Consolidation
- Debt Settlement
The above options may or may not work for a consumer’s individual needs. We will explore process for each of the above options.
1. Bankruptcy – This is a step you need to discuss with an attorney. Filing either Chapter 7 or 13 is a big step and involves more than just your unsecured debt.
2. Debt Consulting – You entry into a debt consulting program and they design a budget for you and your family. They may or may not contact your creditors and inform them you have entered into a program. Using this program the debts are still owed and continue to grow.
3. Debt Consolidation – The consumer goes to their bank to request a loan to consulate their unsecured debt. The bank may require collateral like a 2nd on your home. However you might not have enough equity in your home to qualify for this loan.
4. Debt Settlement – This program allows you to start saving money toward paying off your debt in some cases less than 50% that the current outstanding balances. This process can take anywhere from 12 to 48 months, but at the end of the program you’re debt free and your credit standing will be restored.
Debt settlement maybe the best approach for you and your family. Compared to the other options, you need to discuss a debt settlement program with one of our representatives. So take that first step today for a better tomorrow.
Is There A Difference Between Debt Settlement Companies and Debt Negotiation? I am often asked questions about the debt settlment industry. One of the most asked questions is the difference between debt settlement and debt negotiation companies. The truth is that they are basically the same thing.
What Is A Debt Settlement Company? Continue Reading »
How would you know if a debt settlement company is legitimate? When times get tough and people get desperate, the schemers and scam artists start popping up all over the place. You have probably started seeing the commercials on tv advertising credit debt settlement and debt settlement services. The concept of debt negotiation is excellent the follow through by some companies can be poor. You want to make sure that you are dealing with a reputable company. If you do a Google search on the web you will see tons of people that are disatisfied with a debt settlement company. Many debt settlement companies are scams and they have taken peoples money. Just do a Google search on Jubilee Financial. This was a debt settlement company in Scottsdale that ran off with the clients money.
How Can You Tell If A Debt Negotiation Company Is Legitimate? You may see the rip off report show up. If you see it a lot, it is probably not a good sign. Continue Reading »
In regards to communications with third parties, a collection agency may not contact other people except to locate you. When contacting other people, the collection company must state his or her name and that he or she is just confirming you location information. The collection agency may not give their company name unless they are asked. They are not allowed to state whether or not you owe a debt. A collection agency may not contact a third party more than one time unless the person allows additional communication. If the collection agency thinks the information was wrong they can call again.
Can A Creditor Call Third Parties If I Have An Attorney
If a creditor or collection agency knows that you have an attorney, they may only contact the attorney. They may only contact you if they have your permission to do so. The original creditor is always allowed to contact you. They are under a different set of rules than a collection agency would be.
Having collection accounts on your credit report will impact your credit score dramatically. It is not uncommon for unpaid collections to impact your credit score 100 points or more.
Will A Collection Agency Take Payments? Continue Reading »
What to look for when selecting a debt negotiation company. When picking a debt settlement company, deciding on what company to have settle your debt can be confusing. You are probably already under stress and trying to make a decision that will impact you for years can be daunting. So what questions do you really need to ask.
How Big Is Your Debt Settlement Company? Continue Reading »
When is the best time to try to negotiate your debts? In life timing is everything. The same can be said for debt settlement and debt negotiation programs. If you try to negotiate to soon and you wont get anywhere and if you negotiate to late, you may end up in court or needing the services of a bankruptcy attorney.
How do I know when it is the right time to settle my debts? Continue Reading »
Can a debt arbitration company stop creditor from harassing me? If a debt negotiation company guarantees that they can stop creditor harassment or creditors from call you, run for the hills. In my opinion telling a consumer that a debt settlement company can get creditor calls to stop is a lie. A creditor has the right to call a debtor for a legitimate debt. This is covered in the Fair Debt Collections Practices Act. A good debt settlement company at best can try to stop the calls but nobody should be making any guarantees however.
A debt negotiation company can help stop creditor harassment Continue Reading »
How do I know if I should do debt settlement or debt mediation? Financial troubles are now facing millions of Americans due to the credit crisis. Many Americans will have to make hard decisions about their personal debt. Unfortunately there are not many great choices you can make when you are in debt. You can choose from debt consolidation, cccs, debt settlement, debt negotiation, consumer credit counseling or bankruptcy. Each choice has its advantages or disadvantages.
Is debt consolidation like doing a chapter 13 bankruptcy? Continue Reading »
What is Debt Negotiation? Debt Settlement is a process where a debtor negotiates with a creditor and the creditor agrees to a reduced principal amount of payback. Debt Settlement is also know as debt arbitration and debt negotiation. Debt Arbitration is considered to be an honorable way to settle your debts.
Will a creditor really settle debt with a debt negotiation program? Continue Reading »
How does debt negotiation compare to consumer credit counseling? When you are in debt life can look like it is closing in on you. You may feel despair and hopelessness about your debt situation. The important thing is to not stop. The major choices in getting out of debt are filing bankruptcy, credit card debt settlement and CCCS.
Is credit counseling a smart choice for getting out of debt? Continue Reading »
When you settle debts through a debt negotiation program, will you get a 1099 for what you save? You will not get a 1099 if you can demonstrate that you are financially insolvent. IRS Publication 908 states that you must owe more than you have in assets at the time of the debt settlement agreement with your creditor. You would only pay tax on the amount of solvency you have. If you save $5000 on a debt settlement agreement and have $1500 in assets, you would pay tax on $1500. Speak with a tax adviser or tax professional to see how this would apply to you before registering into a debt settlement program.
Do I have to pay income tax if I am in a debt negotiation program? Continue Reading »
How do I stop credit harassment? The FDCPA or Fair Debt Collections Practices Act has strict rules about what collection agencies are allowed to do when trying to collect on a past due debt. Debt Collectors could try and have you pay a debt that you do not owe or are beyond the statute of limitations of debt collection. Continue Reading »
What can I do if the creditor is wrong? Just because a bill collector is requesting money from you does not mean that you actually have to pay them. Just because they claim to have documents supporting the debt does not mean that they actually do. Do not let them push you around into paying money that you do not owe. There are two things you can do to to prove you do not owe the money and the debt collector is wrong. Continue Reading »
How do you settle collections and old debt? If you have old bills and collections that need to be paid, you may want to think twice about just handing over the money. Just handing over money to a collection agency may not help your credit score. The credit must be willing to report the collection account as a paid collection rather than an unpaid collection account on your credit report. Most creditors will be happy to take your money, they just wont bother to change your credit. Make sure to get it in writing that you are going to pay them only if they agree in writing to change your credit report. Continue Reading »
What is the Fair Debt Act? The fair debt act are the rules that must be followed by a creditor when trying to collect on a debt. A collection agency does not have full reign to call and harass you whenever they want. Continue Reading »