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, 2nd 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.
So what is the debt settlement option? Debt settlement is a method by which a third party negotiations on behalf of the consumer with their lenders to reduce their outstanding balances. Typically, this program works only for unsecured credit cards but may include any other types of unsecured debt like medical bills.
Today’s consumer is asking themselves, “How am I going to get out of debt?” The answer to that question is to consider a debt settlement program as a method to resolve their current financial situation. Consumers have not faced this type of financial climate since the Great Depression and in that situation; they were not overburden by unsecured credit card debt. Consumers are riding a roller coaster of emotions because of their financial situation. This along with the fact they are facing financial hardships because of a lost of job, reduced salary, divorce, death or medical emergency.
The consumer needs to select an experienced debt settlement company. This company should be able to provide answers to all the consumer’s questions in a way that the consumer clearly understands how the program works. The consumer should ask for the following:
- Upfront copy of all documents along with fee and cost schedules
- A company profile
- List of accreditations or afflictions, i.e., Better Business Bureau and associations
With any program, there are pros and cons when considering a course of action. It is the consumers responsible to ask questions and do their research on the debt settlement company they select.
The con’s are:
· Tax ramifications – consumer will need to report any amount of forgiven debt that exceeds $600. This means an increase to your tax bill.
· Credit score will drop
Some of the pro’s are:
- One single monthly payment
- Avoiding bankruptcy as an option. Always consult with an attorney about this step.
- Stopping collection calls
- Possible elimination of lawsuits and other legal action
- Stop any extra charges to the credit card
The definition of debt settlement is a third party who negotiates with lenders on behalf of the consumer. Debt settlement is a method of getting out of debt for the consumer’s who have fallen on hard times.
Debt settlement is one of the methods used by consumers when they fall behind on their unsecured debt obligations. A debt settlement company may be able to reduce the consumer’s outstanding balances. The consumer may be asking why use a debt settlement company instead of trying to negotiate with the lenders themselves. As a consumer you can take this approach, however one of the drawbacks is you will be working with multiple lenders. These lenders would want the agreed amount money upfront in order to settle your account.
By using a debt settlement program, they will negotiate on your behalf and notice the lenders of your indications of using a settlement program. The debt settlement program will set up a “trust/escrow account” for the consumer. Each month the consumer is deposit an agreed to amount in order to start saving. Once the account has reach at least half of the lowest outstanding balance of one your credit cards, the company will begin negotiations with the lender.
The consumer will now be making only one monthly payment instead of multiple payments over a set period of time. It may take between 12 to 48 months to complete the cycle of reducing the consumer’s unsecured debt.
So start today and contact a representative so they can answer all your questions so you can start living debt free!!
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.
The three major credit reporting services use a numerical range of between 300 to 800. According to John UYlzhelmer, president of consumer education at Credit.com, “A 700 used to be enough to nab the best rates, but now a consumer needs a FICO score of 750.” When the consumer decides to use a debt settlement company one of the issue discussed how this will affect the consumer’s credit score. In the past, the higher your FICO (credit score) score the better risk you are to lenders. This score has meant you might be able to get lower interest rates either on your secured or unsecured borrowings.
Debt settlement is an alternative method of getting the consumer out of their unsecured debt burden. It is a program what is intended for those consumers facing undue financial hardship caused by the loss of a job, death of a spouse or medical emergency. The debt settlement option which is available to consumers is sometimes considered the last resource before filing bankruptcy.
However, if the consumer is seeking out a debt settlement program their FICO score’s have already dropped. The drop in score has been caused by late payment, over limit or high balances. In fact, paying off a card and keeping it inactive will not necessary hurt your credit score nor will it help your credit score. Recent news articles have indicated that lenders are closing or reducing credit limits on inactive or low usage credit cards. This is also having a negative affect on the consumer’s credit score.
Whether you use a debt settlement program or you try on your pay down your debt yourself. So either way the consumer’s credit score will be changed over time. The good news is as your debts are negotiated your credit score will begin to improve again.
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.
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
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.
Debt settlement is a way to manage your debt burden caused by extreme financial hardships due to loss of job, medical emergencies and out of control unsecured credit card debt. Debt settlement is one of the better ways to solve financial issued instead of filing for bankruptcy. Bankruptcy is a very serious situation and has serious financial consequences.
Though the consumer can try to work with creditors to negotiate on they own most consumer use a third party, debt settlement companies. Most creditors will work with a debt settlement company to ensure receiving at least some monies from the consumer verses the consumer filing bankruptcy and not receiving any monies.
When selecting a debt settlement company, the consumer should confirm information about the company:
· Ask for a copy of the contract in advance to review
· Length of time in business
· Who is handling my account
· History of the company
Remember, any debt settlement company that tells the consumer it can reduce its debts within weeks or wipe away the credit instantly. The consumer should avoid this type of company. It may take a minimum of 12 months to negotiate that first settlement and up to 48 months based upon the outstanding balances owed by the consumer to the creditors.
A debt settlement company should explain to the satisfaction of the consumer all the steps involved in the program. Here are a few of the steps:
- Start to deposit an agreed upon dollar amount into a established “trust account” each month for a certain period of time
- Once enough funds are in the account, the settlement company will negotiate with the creditors on your behalf. Normally working on the lowest outstanding balance first and working they way up to the larger creditors.
- This negotiation agreement with the creditors can be from 50 to 60% of the outstanding balances and any additional fees
- Discuss fully with experienced staff on the extend of your debt
Getting out of debt is something that as a consumer needs to be done for you and your family. This can be accomplished through a variety of plans and programs. However, every consumer needs to explore their options before selecting a plan or program. Here are some of your options……
- Debt Consolidation
- Bankruptcy either Chapter 7 or 11
- Debt Settlement
- Do nothing approach
Before selecting a plan, the consumer needs to understand how and why they are in this current financial situation. This debt was caused by:
- Unable to payoff full balances on credit cards
- Making minimum monthly payments , charging more expenses which increased limits along with the growing interest payments
- Used credit cards to purchase goods and services
- Take on more credit cards to payoff old credit cards
A debt settlement program is a better alternative to the above referenced programs. The reason for using a debt settlement company is they will negotiate on your behalf. They will deal with the credit card companies and work to achieve a settlement of up to half of your current balance. This is not any easy program for the consumer. It requires financial discipline and an understanding of the program. It may take anywhere from 12 to 48 months to be complete free of the consumer debt burden under a structured debt settlement program.
Here are a few items which you will need to address when entering into a debt settlement program: 1) be aware that your credit score will take a hit but it probably already is low due to high balances, minimum monthly payments or late payments, 2) as debt is be negotiated your credit score can begin to rise, and 3) there maybe tax ramifications upon final negotiations with the credit card company.
Debt settlement companies work because creditors often except settlements because if they don’t the consumer most likely will file for bankruptcy. In most cases, this eliminates the any funds to the unsecured creditors.
Contact us today to discuss a debt settlement program that is right for you and your family.
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.
“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.
Will Capital One Negotiate My Card Balance if I’m behind? With the credit crisis hitting Americans hard, many are falling behind on their credit cards. I am asked often if the credit cards companies will do credit card modifications like the mortgage industry is doing loan modifications? The short answer is no. Credit card companies will not negotiate with you, they want all of their money back with interest.
What Are My Options With Captial One If I Can’t Pay My Credit Card Bill?
Your first step would be to get on the phone with them and see if they will work anything out with you. Chances are that Capital One will not budge in terms of lowering their interest rates or balance if you are behind. Your options would be bankruptcy, credit debt negotiation or credit counseling.
What Is Debt Settlement?
Debt Negotiation and Debt Settlement is a process of working out negotiated settlements for less than what you owe with your creditors. Often you can settle your debt for pennies on the dollar. Your credit could be negatively affected if you have stopped paying your bills. It is better than filing for bankruptcy however.
If you are in trouble with your debt don’t put your head in the sand, the soon you ask for help the better.
I just saw on the Phillips & Associates website that they are doing debt negotiation and debt settlement. The Phillips & Associates company is run by Jeffrey Phillips. Phillips and Associates is the same company that does DUI and Bankruptcy. Their commercials are pretty bad. It looks like they have the people read right off a card. I cannot see how the actual clients agree to go on TV an embarrass themselves. They must offer to reduce their legal bills. 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 »
Is a non profit CCCS company free? You have seen the ads on TV for consolidating your debt. Their claim is that they are a non profit foundation that is there to help you consolidate your debts into one low monthly payment. It sounds like it is free but it isn’t. A non profit debt consolidation company does charge a fee for their services. It is usually a monthly fee that is part of your payment. Many consumers are unaware that part of their monthly payment if a fee for the debt consolidation company. Continue Reading »
Can I negotiate my bills myself? Debt Negotiation, Debt Mediation or Debt Settlement is something that you can probably do on your own if you have a little education behind you. The first thing I would get familiar with is the Fair Debt Collections Practices Act of 1977. If you have thick skin for dealing with nasty and abusive creditors calling you all the time I would say do it. If you do not want the hassle you may want to hire a third party debt settlement company to handle your old collections. Continue Reading »