Today everyone is looking for a path to financial freedom during this difficult economic climate.  They are looking for ways to safeguard their reputation and keep their buying and borrowing power.

The consumer knows that loans, bills, mortgages and credit card charges can increase very quickly, in particular the credit cards used for day to day expenses, it is a challenge to maintain the monthly payments.  So in order to safeguard the consumer’s reputation and credit score rating, they need to review and relearn ways to protect themselves.

Some of the things the consumer needs to revisit are the following key ideas:

• Am I borrowing wisely and paying back promptly?
• Have I identified, avoided and recovered from various financial pitfalls?
• Have a gotten a recent copy of my credit report and do I understand it?
• Does my family have a financial plan for the future

The key to being a good credit risk is based upon the consumer’s credit score.  This score is a numerical number assigned to the consumer based upon their credit history. This history is based upon number of opened and closed accounts, payment history, including late or missing payments and collection referral, original credit limit, current balances, etc. The higher your credit score is the better your ability to borrow at more favorable interest rates.  The lower the score the consumer is charged a higher interest rate or decline altogether.

Basically, the consumer needs to obtain a copy of their credit report from one of the following three credit bureaus: Equifax, Experian or TransUnion.  Once you have this report, the consumer needs to set down and review this report for accurate information. 

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.

 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!!

One of the ways to get relief is to use a debt settlement program.  This program is not an easy fix or an overnight miracle for the consumer, this program can take between 12 to 48 months depending on the size of your debt.  Basically the debt settlement program works with the consumer to establish a payment plan by which monies are placed monthly into a “trust/escrow account.” When a less half of the monies owed to a lender on your lowest balance credit card, then the debt settlement expert will begin to negotiate on the consumer’s behalf.  The monthly payments into the account are normally much less than the current minimum monthly credit card payments.  The debt settlement company is usually able to negotiate a 40 to 50 percent reduction of the consumer’s debt. 

As a consumer you are asking why, would a lender expect this type of negotiation? The underlying answer is the lenders are more willing to take something against the outstanding debt than to have the consumer file bankruptcy.  Normally, when a consumer files bankruptcy, the secured creditors are pay first from the consumer’s assets and the unsecured creditors receive little to nothing from the consumer.  It is a win-win for everyone, the consumer and the lender. 

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.

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!

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.

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.

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.

You receive an offer in the mail for a credit card.  You send in back and within weeks you have a credit card at your disposal.  It becomes the perfect recipe for a financial disaster.  It seems as though many people are living beyond their means.  While convenience is wonderful with regards to your credit card it also comes with a price.

Even fast food retailers know that consumers will be more likely to spend more on plastic than with cash.  Needless to say, they are racing to make it easy that every outlet is now card friendly.  The last thing you would want to do is purchase that hamburger on a credit card.  Especially, if you’re buying it on credit, paying it off slowly or worse, finding out that your credit card company has increased its interest rates.

You need to read those little booklets that often come in the mail.  Do not discard the material – if you have questions call your credit card company.

Finally, if you find yourself in doubt – pay the minimum payment on time.  Big payments do not impress lenders: timely payments do.  For example – if you make a late payment your lender may waive the late fee however your other credit card company’s can raise the interest rate even if you made no late payments to them.  How can they do this?  It’s called “universal default”.  The basics of universal default are simple – if you’re more than 30 days late on a payment to anyone the interest rate on any card with a universal default clause can increase your interest rate.

With that being said – don’t take anything for granted.  read the small print and if you have any questions – give your card carrier a call.  Be proactive not reactive to the situation at hand.

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.

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.

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.

“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 2^nd 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.

Do you have more than $5,000 in debt on more than 3 credit cards? One of your options is to consider debt settlement negotiations.
There are basically two types of debt – unsecured  and secured.  The debt which causes us the most problem is the unsecured debt on your credit cards.
Understanding how we got into this problem and finding ways to resolve the problem is the first step in giving you  a piece of mind.
The credit cards were flexible and easy to use for everyday expenses. But something happened along the way, I started just paying the monthly minimum and my balances continued to grow.  The interest rate  and fees increased on your credit card. That is no longer acceptable because you are drowning in debt.
It may be tough in the beginning to made concessions and accept the fact you have a problem.  But once you understand the problem and the solution to your credit card problem the easier your life will be for you and your family. This allows you to  get started placing the money into a saving on a monthly basis. You will begin to build up the monies needed to pave the way for the debt negotiations settlement process to work for you and your family.
An experienced debt settlement company has the resources and the ability to negotiation on your behalf.  They will work with you to structure a plan that fits your current financial situation.  The way for debt negotiation to be successfully is the consumer faithfully following the plan.  The financial plan may take as little as 12 months or more than 48 months depending on your outstanding unsecured debt position.

Con 1 – The creditor who lowers or completely stops charging you interest will most likely freeze your account or even close your account so you can’t use it once you are in this program. This will happen even if you had been paying them perfectly before. You being in the program suggests to them that you are in trouble. It does not suggest that you are getting help and that they should be considerate of that.

Con 2 – Being in credit counseling is marked on your credit report. Each creditor who you include in your program will probably note on your credit report that you are in credit counseling. Most often I have seen it noted something like: “Customer in CCC”. This notation supposedly doesn’t hurt your credit score, but it definitely will impact someone who reviews your credit report looking to make a decision about giving you credit.

Con 3 – If you are trying to get a mortgage, some loan programs won’t allow you to qualify if you are in the program. The viewpoint on credit counseling has gotten better over the years, but in some cases, in terms of loan qualification, being in credit counseling is looked at just as bad as bankruptcy. Again, this doesn’t seem quite fair as you put yourself into credit counseling so you could pay your debt, make things right, and avoid going bankrupt. Go figure.

Con 4 – This is only a problem if you don’t start the program correctly. When you are going to start a credit counseling program it could take several months for the program to be set up to start paying your creditors. You must make sure that you continue to pay your creditors until your payment plan starts. If you don’t make sure these bills get paid and you had good credit your credit will suffer dramatically.
Only You Can Decide

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 »

Credit Debt Settlement Is Better Than Bankruptcy For Settlement Of Debt?  Millions of Americans are facing a mountain of debt and unsure about how to pay for it.  What are the options of getting out of debt when you have your back against the wall?  You can consider credit settlement, debt management, debt settlement program or debt consolidation.  Continue Reading »

Total Debt Minimum: $5,000

Min Debt Amount per creditor: $350

No Less than 3 creditor accounts per client

Monthly draft never less than $250

No more than a 48 month program

What kind of debt we will take for our debt settlement program

1. Unsecured credit cards

2. Repossession balances. (Car and house are typical) Continue Reading »