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.

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.

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.

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. 

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.

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.

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

“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

Henry Ford’s quote is right because every situation, we face needs to be viewed in small pieces.
You need to understand what credit scoring is and how it is used by lenders before considering debt settlement as a way out of your current financial situation. We need to break down what our credit score means and how it is used when measuring the credit worthiness of the consumer.
•    Do you monitor your score on either a monthly or quarterly basis?
•    Did you know that your credit score changes every month?
•    Do you know your credit score? The credit score range can be from300 to 850
•     Did you know that income is not considered by the major credit bureaus when calculating a credit score?
•    The lower your credit score, lenders may deny credit and charge higher interest rates
The credit score is a mathematical figure which takes into account, the  following factors but not limited to :
•    Number of accounts, either secured or unsecured
•    Length of credit history
•    Credit Limit
•    Highest Balance
•    Payment History
•    Usage
•    Public Records, i.e., tax liens, judgement, bankruptcy
One of the first question always asked is will debt settlement affect my credit score? Yes, in the beginning as your accounts start to go delinquent your credit score will drop.  However, once we start settling up your accounts and your debt ratio starts to improve, you will notice your credit score starting to go back up. Again, you should be aware that your credit score will change monthly whether you are in a debt settlement program or not.
A bankruptcy will be shown on your credit report for 10 year and will continue to drag down your credit score.  While delinquency will also affect your credit score but only for a shorter period of time. By using a debt settlement program, you will be able to start reducing your credit balances and will be showing lenders your willingness to pay your obligations.
As you paid off your debt, your credit score will start to improve and allow you to move forward.  You will stop having feelings of being so “lost” with your finances. Because you will now be in complete control of your financial future.

This information is of general interest and not legal advice.  If you need professional advice seek the services of a professional or attorney.

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 »

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 »

How does debt negotiation compare to consumer credit counseling? When you are in debt life can look like it is closing in on you. You may feel despair and hopelessness about your debt situation. The important thing is to not stop. The major choices in getting out of debt are filing bankruptcy, credit card debt settlement and CCCS.

Is credit counseling a smart choice for getting out of debt? Continue Reading »