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.

The biggest problem facing today’s consumer is unsecure debt.  When facing this financial challenge the consumer may want to consider a debt settlement program. They want to paid off their credit cards but have been struggling because of possible job loss or reduced salary or a medical emergency.

Let’s take a quick review of what it’s costing the consumer on their unsecured credit cards.  For example:

·         Credit Card debt of $30,000

·         3 years of interest at 19% is $17,100

·         5 years of interest at 19% is $28,500

The above interest figures do not calculate any principal reduction on the $30,000 outstanding. So you can see that you are not making any headway on reducing your debt only adding to your financial situation.

If you have faced a financial hardship, then consider using the debt settlement method.  Under a debt settlement program, a third party will negotiate with the lenders to reduce you debt possible up 50%.  This would mean you would cut your outstanding balances in half and would save up to $17,100 or $28,500 over the next three to five years.

Debt settlement may not be the right program for everyone.  However as a consumer, you need to call a consultant today to discuss a program that is right for you and your family.

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
• Bankruptcy
• 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.

Debt settlement is an alternative approach to the other methods that maybe available to the consumer.  A debt settlement company is a method to use by the consumer to get out of debt.  This debt is typically the consumer’s unsecured credit cards and medical bills.

The other methods which the consumer may consider are:

• Trying to manage their current debt themselves
• Debt consolidation loan
• Home Equity Loan
• Credit consulting
• Bankruptcy

Due to certain financial hardships, the consumer is not longer able to meet their monthly obligations.  This hardship has been caused by loss of job, medical emergency or death in the family. No consumer wants to file bankruptcy since that is the last course of action for the individual and their families. 

Debt settlement is an easier way to resolve the consumer’s obligations.  It is a method by which the unsecured debt is negotiated by a third party with the various credit card lenders. In most cases, the lenders are willing to negotiate a settlement of approximately 50% of what you owe on the obligations.  This is not a quick fix or an overnight process in reducing the consumer debt.  A debt settlement program can take between 12 to 48 months depending on the number of credit cards and the dollar amount outstanding. 

If the consumer is willing to work the program, then debt settlement is a way to proceed to reduce their debt. 

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!

Today the consumers are asking themselves the following questions:

·         Is there are way off this financial treadmill?

·         How do I get rid of the emotional baggage I’m carrying because of my debt?

·         I’m I ready to face the hard decisions about a solution?

As a consumer, you can’t feel like you’re the only survivor on the lost island.  According to the American Bankers Association, “ delinquencies on consumer debt has hit a record 3.23%.” The percentage of borrowers at least 30 days late have hit its highest level in 35 years. In additional, consumer bankruptcy has increased by 22% from 2008 according to the American Bankruptcy Institute.

Consumers when faced this issue are reviewing their options.  One of the options is debt settlement.  Most consumer favor this program over bankruptcy.  Bankruptcy should always be the last resort for the consumer. 

Consumer are making decisions everyday that they need to get out of debt.  The majority of consumers want to pay their financial obligations in full.  This approach is currently not possible for some consumers.  The reason being the current economic climate along with the new financial hardship faced by consumer.

When you discuss, debt settlement as an option.  You will be told it will affect your credit score. This credit score is important to the consumer because its affects your ability to borrow money. David Leuthold, of The Association of Settlement Companies, indicates that many consumers seeking relief have already seen their scores plummet. “Basically, what they’re deciding by coming on to a debt-settlement program it more important than their credit score.”

If the consumer decides to use a debt settlement program.   The consumer needs to know that if their financial situation improves then they can opt out of the program and get back on track with meeting their financial obligations.

As a consumer, we need to understand the meaning of the word credit.  Credit is considered as either secured or unsecured monies loaned to you by a lender, in return for future payment.  Lenders or creditors who have advanced to you monies to purchase your home or credit card companies/retail stores  which allow you to charge purchases with the understanding you will pay them principal and interest over a period of time.

A good credit score means you are a low risk consumer while a lower credit score means you are a riskier borrower. Credit scores from the three major credit bureau’s (Equifax, Experian or TranUnion) range from 300 to 850.

However, according to a recent article in “USA TODAY”, lenders are clamping down on credit and credit scores are taking a hit. The lenders are reviewing all of their consumer credit cards and making determinations about who is using their credit cards.  Lenders are closing credit card accounts and lowering credit limits for millions of consumers who have never paid late. When a card is closed by a lender this effects your credit score.

However, maybe as a consumer you had a fair to good credit score.  But do to the recent economic environment you are not able to keep up with your financial obligations.  This is going to affect your credit score since late payments, mortgage modifications and high balances are now taking a bigger toll on your scores. 

So when you are looking at debt settlement program and you are informed that your credit score will take a hit. You credit score may had already taken a hit because of your late payments and too much credit with high balances prior to entering into a debt settlement program. 

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.

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.

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

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

“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

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.

When you negotiate with a debt collector you are going up against a tough and seasoned professional. Following these tips can help take the advantage away from them and put it on your side.
Know Your Rights Before You Begin
The first thing you need to do is to educate yourself on what your rights are. Your first assignment is to learn about the Fair Debt Collection Practices Act. You can also get a free brochure on the rules of debt collection from the National Consumer Law Center. Call 617-542-9595 and ask for the brochure “What You Should Know About Debt Collection”. You may also want to contact your state’s Attorney General to see what the rules are in your state.  There are things that a debt collector can and cannot do. Just because you owe them money doesn’t mean that they can harass you mercilessly. When you know what your rights are and you emphasize to the debt collector that you know what your rights are, they are less likely to use aggressive collection tactics.
Tips For Successful Negotiation
•    Your first step is to prioritize your bills. No matter what the credit or debt collector says, the most important thing is to provide for your family’s necessities. It is silly to put yourself in a position where you can’t pay for your basic living expenses.     •    Have the collection company validate the debt that they say you owe them. This action alone might stop them in their tracks. Learn more about debt validation.
•    Calculate how much you can afford to pay and pay less. I would never promise to do anything you cannot do. Do not send post dated checks or agree to electronic payments from your bank account. Once they have your payment information, you must trust that the debt collector will have the integrity to take payments at the correct time.          •    Skip the sappy story. If you think telling them the circumstances that got you into the position that you are in will make a difference, it will not. They really don’t care. They really don’t have any sympathy; they hear the hard luck stories all day long. They just want you to pay them as much money as they can get out of you.          •    Absolutely do not give them any personal information. Telling them where you live and work could be a big mistake. Keep in mind they only care about one thing: getting money out of you. They will have no problem contacting you wherever they know that they can find you. Just stick to whatever the facts are concerning your case.              •    Always keep your cool. Bill collectors make their living by rattling your cage or putting fear into you. That is how they can get people to come up with the money. The truth is that there is not much they can do until they have a court order or judgment against you.           •    If you are able, tape your phone conversations and tell them you are. Most likely they will get out of line at some point. You can then use this as leverage against them. They don’t want any trouble with state or federal agencies.               •    Take good notes. Keep all your collection letters and keep good notes on all of the calls that you receive. You may want to keep a dedicated log book by your phone. Record the date, time and the person you spoke with. Also keep detailed notes about the conversation and what was discussed.           •    Get all proof of payments in writing. I would even suggest sending them a personal check with a release written on the back of it. So even if they do not send you anything, you have a cancelled check documenting that they have released the debt. I would write something like, “By endorsing and depositing this check, said creditor fully releases and discharges said person from any future claims regarding this debt and the debt is paid in full.” This would work fine. I believe that it is always smart to have a back-up plan.           •    Make sure that they update your credit profile as part of the agreement – get it in writing that they will amend their credit reporting records on your account          •    Agree to a negotiated payoff at the end of the month. Most collectors are paid at the end of the month. This is the best time of the month to negotiate the best deal.

It is true that owing money can be no fun, but it does not need to ruin your life. It’s just money. If you are in debt, the road to getting out of debt can be daunting. The sooner you start the sooner you can be debt free. I always loved this saying, “How do you eat an elephant? One bite at a time.” It is a cute metaphor but very appropriate for paying off debt.

Due to unfortunate circumstances in our nation as well as around the world, many of us are struggling to make ends meet. We have rising prices in the cost of heating and cooling our homes and maintaining our cars. Shoppers are shocked at cost increases in groceries, clothing and other miscellaneous items. How do we manage to deal with these expenses? Those with adjusted ARM home mortgages, car and credit card payments in addition to normal costs of living often just can’t stretch their available income to cover everything and sometimes the house mortgage is one of those left unpaid.

Do Not Give In To Collectors

We frequently receive unwanted and unnecessary threatening phone calls from collection agencies for our past-due credit cards. When faced with choices of which bills to delay a month, we give into the pressure and make the minimum credit card payment. These collection agencies are quite skilled in intimidation and scare-tactics and sometimes that’s the best method for these collectors to get overdue payments as the debtors just want to get rid of the harassment.

Meet Your Living Expenses Before Paying Credit Card Debt

Although it’s not proper to neglect to pay your just debts when money is limited, decisions need to be made as to importance of the bills you are facing. Being on limited income and continuously facing higher costs of living, it’s a necessity to decide on what takes priority for payment and what can take a “backseat” for a month or two.  Housing, car payments, utilities and food costs must be met. Also, to be considered are insurance premiums. In some communities, medical needs will not be met unless one carries insurance, although the cost of these premiums can increase budget costs. State laws require car insurance, because should you not carry liability coverage and are involved in a car
accident, serious legal consequences will follow.

Prioritize Your Bills

After planning your budget and paying the most necessary bills, then should you have money remaining, make those credit card minimum payments. If left without any money, then don’t be stressed out over the unpaid credit card bill(s). It is not likely your wages will be garnished. You will probably receive more unpleasant phone calls from credit card collectors, so calmly explain you’ve paid your main housing/living expenses and have depleted your funds.  If bill collectors get nasty, lose their temper or start being obnoxious, you could lay phone down without hanging up and walk into another room. Losing your “cool” and responding to their verbal abuse lets them “win” which is their real motive or intention.

Catch Up Later On Credit Card Debt

After your financial circumstances improve, plan on catching up on all your overdue bills especially clearing up your credit card indebtedness. Try to pay off the least amount owed first, and then apply that amount to the next higher bill. Eventually, you’ll be able to get yourself out of debt. But be careful that, after doing so, you use wisdom by using credit cards only when absolutely necessary, and if possible by paying the entire balance off each month.  Remember though that the most important issue is in keeping current on your house payments and normal living expenses.  If you want more information on negotiating with bill collectors Negotiating with Collection Agencies, Bill Collectors, and Debt Collectors – 10 Tips.

Debt Free Dave has been in the mortgage and consumer finance business for over 10 years. He has a Finance and Real Estate degree from the University of Arizona. This Article is designed to be of general interest and should not be considered legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.

Will Capital One Negotiate My Card Balance if I’m behind?  With the credit crisis hitting Americans hard, many are falling behind on their credit cards.  I am asked often if the credit cards companies will do credit card modifications like the mortgage industry is doing loan modifications?  The short answer is no.  Credit card companies will not negotiate with you, they want all of their money back with interest.

What Are My Options With Captial One If I Can’t Pay My Credit Card Bill?

Your first step would be to get on the phone with them and see if they will work anything out with you.  Chances are that Capital One will not budge in terms of lowering their interest rates or balance if you are behind.  Your options would be bankruptcy, credit debt negotiation or credit counseling.

What Is Debt Settlement?

Debt Negotiation and Debt Settlement is a process of working out negotiated settlements for less than what you owe with your creditors.  Often you can settle your debt for pennies on the dollar.  Your credit could be negatively affected if you have stopped paying your bills.  It is better than filing for bankruptcy however.

If you are in trouble with your debt don’t put your head in the sand, the soon you ask for help the better.

Is There A Difference Between Debt Settlement Companies and Debt Negotiation?  I am often asked questions about the debt settlment industry.  One of the most asked questions is the difference between debt settlement and debt negotiation companies.  The truth is that they are basically the same thing.

What Is A Debt Settlement Company? Continue Reading »

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 »

Should I file for bankruptcy?  This is a very tough question to answer.  It would depend on what your situation is.  If you have more debt than you could ever conceivable pay back you may want to talk to your attorney about filing bankruptcy as an option to get out of debt.  Filing bankruptcy over small amounts of money might be a silly choice as well.  I have seen people file for bankrupty for as little at $8000 dollars.  That is crazy.  Your filing fees are going to about $2000 or more.  For that much you could just do a credit debt settlement program.  A credit settlement can cut your debt in half or more and you would not have to have all of the money together at once.  You could actually pay your creditors back over a period of a few years.

How Do Debt Settlement Programs Work? Continue Reading »

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 »

What are the rules for being in a debt settlement program?

1. DO NOT tell the client to tell their creditors that they are enrolled on a debt settlement program. In fact, if they ask you, “Mr. Sales Rep, what should I tell my creditors now that I have agreed to do this thing?” , tell them to not take any action at this particular moment in time until they speak with your servicing department (us). DO tell them that you will be sending their file over to your servicing department for approvals, and once they are approved, an experienced orientation representative will contact them and tell them exactly how to handle the creditor calls. 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 »

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 »