In the beginning, the consumer used the card judiciously and paid off the balance in full monthly. However over time, the consumer started paying only the monthly minimum payment. From time to time because the economic climate was on the upswing, the consumer had equity in their homes. Because of the equity, the consumer would refinance their homes at a lower rate and take monies out to pay off their unsecured debt.  This way of handling finances was alright as long as the economic was in a positive position.

Due to today’s economy – consumers are facing financial hardships, lost of job, reduced salaries, and divorce or faced a medical emergency along with the adjusted interest rate on their mortgages and increased unsecured credit card debt. 

The consumers are faced with the reality of how to get out of debt. In most cases, this is the first time many consumers were faced with these uncertain financial times.  So the consumer start looking for ways to pay off their financial obligations.

One of the options the consumer is selecting is a debt settlement program.  Debt settlement is a method by which a third party negotiates with the lenders to reduce your obligation by up to 50% of the outstanding debt.  The consumer puts aside a set amount of monies each month into a “trust/escrow” account over a period of 12 to 48 months depending upon the amount of their credit card debt.  The debt settlement company starts to negotiate when at least half of the lowest balance is in the account.  This proceed is repeated until all debts are settled.

This is not an easy fix.  However, the amount of monies placed into the trust/escrow” account is normally less than the combined monthly minimum payments. By entering into this program, it will show the lender you want to repay your obligations but need help because of the consumer’s most recent financial hardship. The majority of lenders are willing to accept a settlement of half because if the consumer files bankruptcy the odds are the lenders will receive nothing.  By receiving nothing this affects the lenders bottom line and is reflects as loan losses on their financial statements. So call your debt settlement expert today to discuss

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!!

Has your monthly spending continued to outgrow your earnings? Have you suffered an medical emergency or lost your job? This is very typical of our economics in today’s reality and if this is your situation then a debt settlement company may be the solution.

Debt settlement is a method by which a third party negotiates with your lenders to reduce your unsecured credit card debt. With that said – it’s important for the consumer to have an understanding of their options and various alternative that may solve their finances.

The alternatives available to the consumer are: debt consolidation, debt counseling, equity loan on home, bankruptcy or debt settlement.

So a quick review of these alternatives:

·         Home equity loan – This allows the consumer to borrow against their personal residence.  There may or may not be enough equity in their residence to qualify for this loan.

·         Bankruptcy – This is a major step for the consumer.  The consumer needs to discuss with their attorney.

·         Debt consolidation – This approach allows the consumer to pick and choose which debts to consolidation into a term loan with a lender.  A term loan is normally secured by collateral from your lender and can try up to 5 years to repay.

·         Debt counseling – The consumer meets with a counselor to determine an set budget to pay off your debt to the lenders. The consumer is still required to pay off their entire balances.

·         Debt settlement – The debt settlement company establishes a monthly repayment plan. After at least half of your lowest outstanding unsecured credit card balance is achieved. The third party will negotiate with your lender to reduce your debt.  This negotiation can be from 40 to 50% of the balance. This process can take between 12 to 48 months depending upon your debt burden.

When compared against the other alternatives it appears to be a better method in changing your financial situation.  If is important for the consumer to understand all the step involved in a debt settlement.  Call today to speak with a representative!

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

“Never let life’s hardships disturb you..no one can avoid problems, not even saints or sages”  Nichiren Dasihonen

The above quote rings true for the consumer who is struggling with their unsecured credit card debt. The consumer not longer can avoid the problem, the unwanted telephone collection calls and letters from the credit card companies or collection companies. The time is now for the consumer to take action.

The consumer needs to know that they are not alone when facing issues in regard to mounting unsecured credit card debt. Once the consumer decides to take that first step they will start to feel better about their situation. 

One of the fastest ways to find debt relief is using the debt settlement option program.  When compared against other options, bankruptcy, debt counseling or do nothing approach.

As with any debt settlement program there are drawbacks. These negative issues might include, the forgiven balance is considered taxable income by the IRS and the settlement will be noted on your credit report.

A good debt settlement plan combines all the outstanding unsecured credit card debt and establishes a budget for monthly savings which is in the best interest of the consumer.  This plan establishes the timeline for the exact amount of the monthly savings which might be less than the combined monthly minimum payments on all debt. Then estimates how long it will take before negotiations begin with the credit card companies.  The key to how long is based upon monthly savings and outstanding balances. This process can take been 12 to 48 months.  The consumer needs to remember that if their financial situation changes, they can opted out early and payoff their debt themselves.

So, take that first step today and call 866.963.9988

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!

If you have borrowed money on credit cards, owe some money on a personal loan, borrowed money from a bank or are paying a mortgage, by definition you are a debtor. If you get behind on paying your creditors or go into collections, you can be contacted by a debt collector. Yes, you did borrow the money and yes the creditor wants it back but they do not have free rein to harass you.

Know Your Rights as a Debtor
The last I checked in this country there is no debtors’ prison. There are consequences for not paying your bills but you do have rights as a debtor. The Fair Debt Collection Practices Act offers you many protections as a debtor. The Act states that a creditor must treat you fairly, and it strictly prohibits certain tactics in the collection of a debt. Keep in mind, however, that this consumer protection does not erase any legitimate debt that you have.

The types of debt covered are family, personal and household debts.  This would include money borrowed to purchase a car, credit card, charge accounts and medical bills. A debt collector is defined as any person who regularly collects debts that are owed to others. Third party debt collectors, collection agencies, and attorneys also fall into this category.
Dealing With Debt Collectors
A debt collector has many options when it comes to contacting you about the repayment of a debt. They may contact you by mail, telephone, fax and telegram. A debt collector is not given free rein to contact you whenever they feel like it. They are allowed to contact you from 8 am to 9 pm unless you agree to be contacted outside of this time period. A debt collector is not allowed to contact you at work if they know that your employer does not allow such communication to take place during work hours. All you have to do is tell them to not call you at work the first time they call you and they must stop calling you there.

If you are behind on your bills and are being hounded by your creditors, the experience can be unsettling.  Many people are curious as to how long it takes for their past due accounts to be turned over to a third party collections company or collection agency.

It Can Take 90-120 Day For Your Account To Go Into Collections Continue Reading »

What will happen if I stop paying my bills? It is important to know what will happen if you are unable to pay your monthly debt obligations. The first 30 day late that you have your credit score is going to drop like a rock. I have seen credit scores drop as much as 100 points just for one 30 day late. Your interest rates will probably go up as well. You credit card contract has a provision call the universal default rate. This is the rate they can charge you when you do not make a payment. Continue Reading »

When can a creditor call me? I think that most consumers believe that a collection agency cannot make calls to try and collect a debt on Sunday. A creditor is allowed to call you on Sunday. The provision that allows calls to be made on Sunday is spelled out in the Fair Debt Collections Practices Act.

Can a creditor call me on Sunday if the debt is with a collection agency?

If the debt is still with the original creditor they can definitely still call. Even if the debt is with a collection agency they can call from 8am to 9pm. If the collector calls outside of these times, they could be in violation of the fdcpa or Fair Debt Collection Act.

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 »

How do bill collectors operate? Debt Collection companies work on behalf of a creditor who wishes to collect on a delinquent debt. Typically the original creditor does not have the time or resources to go after delinquent credit accounts. Collection Agencies are specialists in the world of debt collection. They have the people and resources that specialize in collecting debt. Continue Reading »

Does paying off collections help my fico score? Having open collection accounts can do major damage to your credit score. Just one collection account can drop your credit score over 100 points. This can be the difference between buying a home or not buying a home. Having bad credit will limit the types of credit that you can get as well as the interest rates that you will get. As you can image, having unpaid collections on your credit report can put you in a higher credit risk category. This would most likely cause you to get higher interest rates when you apply for credit. Continue Reading »