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 majority of consumers want to payoff their obligation either monthly or in full. However they are having a hard time of making ends meet in today economic climate. The consumer is on an emotional roller coaster and is seeking ways to make ends meet.
Today’s consumers are overwhelmed with unsecured credit card debt. They are unable to maintain making the monthly minimum payments on their credit cards. The reason why the consumer is seeking some type of debt relief is because they have incurred a recent financial hardship.
One of the options that consumers are considering is using a debt settlement company. A debt settlement company is a third party which will negotiate with the lenders on behalf of the consumer. In most cases, a debt settlement company is able to reduce the consumer’s outstanding balances by up to 40% to 50%. So considering that a consumer may have more than $10,000 in unsecured credit cards this debt might be cut in half. The savings to the consumer is monthly interest on their cards and the debt reduced from $10,000 to $5,000.
The consumer is asking, “Why would a lender accept half of the obligation due to them.” The answer is simple. If the consumer files for bankruptcy, historically there is no money available for the unsecured lenders. In other words, the lenders are willing to take something rather than receive nothing on the obligation. If a consumer does file bankruptcy then the lender has to write-off as a bad debt this obligation which affects their bottom line.
Using a debt settlement program is not a quick fix or an overnight solution to the consumer’s situation. However what it does is allow the consumer to save monies into a “trust/escrow” account over a period of time. Normally, this amount is less than what their combined monthly minimum payments are on the debt. The debt settlement company begins negotiation with the lender when at least half the monies are saved against the lowest outstanding debt.
Debt settlement is an option for many consumers today. Therefore, call your debt settlement expert today to discuss how they can help you.
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.
Adversity comes upon us when we least expect. Were asked to take a reduction in pay or perhaps we experience a job loss. As a consumer who is unable to meet the monthly minimum credit card payments you need to find a way out of this financial situation!
First thoughts are to just do nothing and walk away from the debt. But that is not the right solution. So you need to start investigating different methods to correct your financial situation.
The most often methods discussed for consumers in trouble are:
- Consolidation Loan
- Home Equity Loan
- Consumer Consulting Services
- Debt Settlement
In a prefect world, the first three programs would help rearrange the financial situation. Since you would have money or equity in your residence to qualify for a loan or need assistance in understanding how to better manage my money.
Bankruptcy should always be the last step when considering how to get out of debt. As a consumer, do not want to walk away from my debt but somehow pay them back to the lenders. Bankruptcy needs to be discussed with an attorney, who can explain the legal process and its affect on the consumer.
Therefore, debt settlement was a more managed approach to resolving my financial situation. The one lesson learned during this financial downturn was to tighten my belt and save for the future. I should use my credit cards only when I can actually repay each month what I spend on the card. I have learned my lesson.
So now as a consumer, struggling with credit card debt over $10,000 now is the time to call your debt settlement expert.
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.
In today’s society many Americans are addicted to buying almost everything on credit. The retailers make it possible for us to thrive on this concept with buying everything on credit. Perhaps out of convenience – to simplify their life or maybe out of personal or economical hardship.
However, it doesn’t take long before your wallet is filled up with bank cards and department store cards. Most people think that it is easy to pay them off at the end of the month. Easier said than done. Many people start to justify reasons to use the cards. It’s easier than to part with cash. Then it’s the Holidays, presents to buy, short trips, dinner out with friends, the reasons are endless.
The debt builds up slowly with no major purchases to show for. And before you know it – you can be thousands of dollars in debt with no end in sight. This type of consumer debt is considered unsecured debt verses secured debt. The difference between the two types of debt is at secured debt is backed by some type of collateral with fixed payments to reduce the debt while unsecured has high interest rates, no tax advantages and is not collateralized.
The consumer continues to build up debt because they are paying only the bear bone minimum. The credit card companies only require you to make a minimum monthly payment of between 2 to 3 percent of your balance in order to continue using your card while continuing to add a monthly finance charge to your balance along with late fees and over limit fees in some cases.
In the beginning, the consumer feels it’s alright about repaying only the monthly minimum payment because they believe the next month they will be able to paid more on their account. This gives the consumer a feeling of confidence to continue to spend more freely and leads them down the path of spending more than they earn each month. However this spiraling debt only continues to grow and the consumer is now facing added pressure to met their financial obligations.
Because of this spiraling debt, the consumer needs to consider how to get out of debt. One of the options for the consumer is debt settlement. Debt settlement is a method by which a third party works on the consumer’s behalf to negotiate with the credit card companies. This process requires the consumer to stop using their credit cards, budget their finances and start saving a certain amount of money each month. This money is placed in a “trust” account and until it achieves at least half of your lowest balance credit card before the third party company can start negotiating. This process may take between 12 months to 48 months to clear all of your unsecured debt.
Now is the time to explore how our debt settlement company can help you out of the depths of financial problems.
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.
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, there are a lot of people who are looking for debt relief on their credit card debt. In order to successfully tackle your financial situation you need to get organized and understand your situation. So, understanding the type of debt you have is a good place to start.
There are two types of debt secured and unsecured. In a secured loan, the debtors personal assets are guaranteed as collateral for the loan. In some cases, if the debtor is unable to repay the loan on time, then the lending agency can assume the assets as collateral.
Credit card debt is considered “unsecured ” debt and the most common of the two. In unsecured debt there is no collateral to collect if you default therefore the credit card company has the right to sharply increase your interest rate which can make it nearly impossible to payoff particularly if you are making the monthly minimum payments. Needless to say, you can start sinking further into debt.
Debt settlement is a process which debtors can turn to. The debt settlement company negotiates on your behalf with creditors to reduce the overall debts in exchange for an agreement upon settlement. The consumer makes payments on a monthly basis and over a period of time enough funds are built up allowing the settlement negotiations to begin. The debt settlement companies typically have built up relationships with the credit card companies and can reach an agreement rather quickly.
Living in debt can be very scary and sometimes it just takes patience and doing your homework and understanding your own financial situation. Once you make the decision – debt settlement can put you on the path of living debt free.
Start today by calling 1.866.963.9988
What do I do If I can’t pay my Christmas credit card bills? Is Credit Debt Settlement a good option. Many American feel an obligation to provide gifts at Christmas. It seems that the media is pushing the sense that we should be providing a gift for everyone at holiday. The truth is that many Americans are still trying to pay off last Christmas while piling on more debt for this one. The truth is that is just doesn’t work. It is more like short term pleasure and long term pain. Once the holiday is over you are left with the credit card bills to pay. It usually ends up being more like worry and fear. You mind will become occupied with strategies about how you are going to pay for everything. Millions wont be able to keep and and will fall behind on their credit card payments.
What Are My Options If I Can’t Pay My Credit Card Bills? Continue Reading »
Can you go to jail if you do not pay your credit card bill? No, If you stop paying your credit cards, your life will become a lot more difficult. The first thing that will happen is that your credit score will drop like a rock. A few late payments can drop your fico score as much as 200 points. Your credit card company is going to raise your interest rates and start tacking on late fees.
When Will Creditors Starting Calling Me If I Get Behind On My Bills? Continue Reading »
Consumers filing for bankruptcy must obtain consumer credit counseling within 6 months prior to filing date. Some jurisdictions require that you obtain CCCS counseling at least the day before you file the BK or your case can be dismissed. This does not, however, mean that a consumer must develop or create a repayment plan before filing the bankruptcy.
How Do I Get Credit Counseling? Continue Reading »
The ugly truth about credit card balance transfers
Your mailbox is probably being pounded of credit card offers with low introductory interest rates. I see a 0% credit card offer at least once a week. Many of these rates are just teaser rates and they can jump to over 29%. 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 »
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 »
Is Ameridebt still in business? Ameridebt was forced to shut down its debt consolidation operation as part of a settlement with the FTC. The Federal Trade Commission charges that it deceived consumers into paying at least $170 million in hidden fees. The FTC charged Ameradebt with misrepresenting that it was a non profit credit consolidation company and that it show consumers how to manage their money for no up front fees. The FTC also charged Ameridebt with deceptive business practices and with violating the Gramm Leach Bliley act by not providing customers with the required privacy notices.
Is debt consolidation through a credit counseling company bad? 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 »
Did you know that July was originally called Quintilis which is Latin for “fifth month”…and that it was then later named after Julius Caesar in 44BC? It’s true! But on a much more important note… here is some information you might want to know! Continue Reading »
How do you use a credit card? The credit card industry has changed the way we buy consumables. You see Visa, Master Card, Discover and American Express logos everywhere now. You can even buy your hamburgers at McDonalds with a credit card. It is now convenient to make purchases even if you don’t have the money. Anyone who survived the depression would probably cringe. Back then if you didn’t have the money you didn’t buy it. Bank loans were tough to come by. So if you couldn’t afford something you just made do. Now you can go buy something an hope to figure out how to pay for it later. This type of thinking has made us a nation of debtors. At no point in our history have we seen such an abundance of debt and financial issues facing people. Bankruptcies in our country are at an all time high with no relief in sight. Continue Reading »
What is the best debt consolidation company? I think it might be better to ask what can I do to get out of debt other than signing up for credit counseling or a debt consolidation loan? If own a home and have equity in it, you have the ability to do a refinance and pull money out to pay off your bills. Continue Reading »
Should I refi to pay off my debt? Being in a financial jam can be a frustrating as well as an unsettling experience. Getting harassed by bill collectors and creditors day and night can be annoying as well as emotionally draining. But you do have options that you can take to take care of the situation. The two that we are going to discuss in the article are refinancing your home to pay off the debt or doing a debt settlement program. Continue Reading »
TASC stands for The Association of Debt Settlement Companies. The goal of TASC is to promote solid practices in the debt settlement industry and protect the interest of consumers and debtors. TASC also lobbies at the federal level on behalf of debt settlement companies. Continue Reading »
What does USOBA stand for? It is the United States Organizations for Bankruptcy Alternatives. USOBA was founded by the debt negotiation industry for representation for the debt negotiation and debt settlement outside of the consumer credit counseling and bankruptcy industry. The focus of USOBA is to cause advocacy and agenda for the debt negotiation and debt settlement industry. Continue Reading »
What does CCCS mean? CCCS simply stands for consumer credit counseling services. They will consolidate your debt and lower your interest rates. They can have you out of debt in 4-6 years. Once you have missed a few payments, your credit card companies will raise your interest rates. Some credit cards will charge you over 30%? They can do this due to the universal default rate that is in your credit card contract.
At this point a request for lower rates will do nothing. They have you pinned against the wall. Your only option for lower interest rates is to do a credit counseling program.
If you are considering debt consolidation, you may want to look at a debt negotiation program as an option. For a no hassle debt review call 1-888-368-6668 or go to DebtNegotiationZone.com and fill out the request form.