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 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.

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. 

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.

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.

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

“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.

Let face it, times are tough.  Worry and fear are going to be your worst enemies if you let them take over.  Once you have overindulged in negative thinking, it’s hard to get your brain back on track.  Think of it as a diet.  Losing weight can be tough once you have packed on the pounds.  The habits of eating can be tough to change.  The same it true for your thinking.  Once you have gone down the path of negative thinking, it can be tough to bring yourself back to being present to the miracle of being alive.

How Do I Stay Positive In A Bad Economy? Continue Reading »

This Christmas season use cash to pay for your holiday gift purchases.  Using credit cards to buy your holiday gifts can be a trap.  There is a lot of social pressure to buy gifts for people.  My motto if you want to stay debt free over the holidays give up worrying about what people are thinking.  They are not going to help you pay your credit card bills when they come.  Buying gifts for people is not worth it if you cannot afford to.  Going into debt to buy gifts just because you think you should is not a good enough reason to do so.  Suffering over money is a terrible thing.  It is not worth it, so do not worry about what people are think.

If you do not have the money do not buy it.  Try using a debit card this holiday season or just carry cash with you.

Tough times call for tough decisions when it comes to money.  If you are facing a mountain of debt in a slow economy you should be nervous.  Large debt is what brings people down fast.  Once you start getting behind on your bills, it may be impossible to catch up.  It is important to tackle you debt head on and pay it off as soon as possible.  If you have to eat kraft macaroni and cheese and top ramen every meal it will be worth it.  You need to start living by your needs and not your wants.  Your wants are what got you in a pickle in the first place.  Just think that you are learning a new habit.  It may be painful at first but you can do it.

Cut Back On Expenses Where You Can To Pay Off Bills Faster Continue Reading »

Many debtors will wake up one day and ask the question, how did this happen to me.  How did I get in this much debt?  The truth is that it does not happen all at once.  Debt is a consequence of a series of decisions that are usually lies to yourself.  You may tell yourself that you will pay the bill in full when you get it, only to pay the minimum payments.  There may be emotional triggers that push you to buy things that you really do not even want.  You may be trying to fill up that empty hole inside of you.  Unfortunately it is short term pleasure and long term pain.  The joy of a purchase may only last a few minutes or even a few seconds but the reality of paying of a credit card purchase can last for years or even decades.

What Is The Long Term Cost Of Being In Debt? Continue Reading »

Contrary to common thinking, you are not what you eat. Rather you are what you think. What got you into debt was not a lack of money but what thoughts you where indulging in in you head. All of the fantasies and stories that you told yourself that were not real about why you needed to buy things that you did. I’ll pay it back at the end of the month, this is what you tell yourself only to make the minimum payment. But next month I’ll pay it back in full.

The More You Think About Debt, The More Debt You Will Attract Continue Reading »

Being in debt can be like being trapped in a vicious circle.  I am not talking about money.  I am talking about the conversation that you have with yourself that go on in your head.  Being in serious financial crisis may trigger memories from your past.  You may be dealing with times in your past where you have failed or it did not work out.  This only validates you current experience of making yourself wrong or blaming others for the situation that your are in.

The Little Voice In Your Head Is Not A Cheerleader Continue Reading »

Just because you are in debt does not make you a bad person. You are only human. If you were perfect you would be a perfect being and not a human being. You can learn from your mistakes and become a better person for it. I promise that you will come out of your financial circumstances better than when you went into them. Continue Reading »