I just saw on the Phillips & Associates website that they are doing debt negotiation and debt settlement.  The Phillips & Associates company is run by Jeffrey Phillips.   Phillips and Associates is the same company that does DUI and Bankruptcy.  Their commercials are pretty bad.  It looks like they have the people read right off a card.  I cannot see how the actual clients agree to go on TV an embarrass themselves.  They must offer to reduce their legal bills. Continue Reading »

As you all know, Labor Day marks the end of summer and  the beginning of a new month. Because I really don’t have any interesting tidbits to tell you about the history Labor Day or what the month of August used to mean in SomeYear BC, I’ll move on to the good stuff.

For the month of August, $650,555 worth of debt was settled at an average of 44%, handling 120 of our client’s accounts. Additionally, as a running total, there have been 67 graduations in the last year, 9 of which were in the last month (and more to come!). Continue Reading »

When you settle debts through a debt negotiation program, will you get a 1099 for what you save? You will not get a 1099 if you can demonstrate that you are financially insolvent. IRS Publication 908 states that you must owe more than you have in assets at the time of the debt settlement agreement with your creditor. You would only pay tax on the amount of solvency you have. If you save $5000 on a debt settlement agreement and have $1500 in assets, you would pay tax on $1500. Speak with a tax adviser or tax professional to see how this would apply to you before registering into a debt settlement program.

Do I have to pay income tax if I am in a debt negotiation program? 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 »

Tips on Negotiating your Debt with Bill Collectors and Collection Agencies

Many Americans now feel that their debts are spiraling out of control and there is nothing they can do but have an attorney file for a bankruptcy. Most debtors believe all of those freighting stories told by the bill collectors of the impending doom that faces them. The biggest scare tactic used is utterance of a wage garnishment and seizure of property. The collection agencies usually fail to point out that they will first need to go to court and get a judgment to be able to do anything to you. I recommend that bankruptcy would be your last option in trying to get out of debt. Most debtors jump to quick to do a bankruptcy before examining all the possibilities that exist to resolve the debt. Usually this option is exercised out of fear and wanting it to go away quickly. I hope that this information will educate you in this area of the unknown for you. Continue Reading »

How Does Consumer Credit Counseling Work?

This information going to discuss the advantages of doing a Consumer Credit Counseling program. You may have heard of debt consoladation referred to as Consumer Credit Counseling, CCCS or debt management. To clear up the confusion, they are pretty much the same thing. Doing a debt management program is much different than doing a debt settlement program. In debt settlement you are negotiating down the amount of principal to pay back and debt consoladation you are negotiating the interest rates. In consumer credit counseling you will pay all of the principal plus interest. Debt negotiation will save you a lot of money in the principal but your credit score will get wrecked during the process. In debt negotiation you will pay back less than you originally borrowed. As you can imagine your creditors do not like that too much. Continue Reading »

Debt Settlement vs. a Home Equity Line to pay of your Credit Card debt

Getting yourself into debt can be a scary as well as a frustrating experience. Getting hounded by debt collectors night and day can be exhausting as well as emotionally draining. But there are options that you can take to take care of the problem quickly. The two that we are going to discuss in the article are refinancing your home to pay off the debt or doing a debt negotiation program. Continue Reading »

Debt Settlement tips from the experts – Debt Negotiation

Most consumers have questions about debt settlement and debt negotiation programs for their past due accounts and collections. This article is a commentary about the debt settlement industry. I think the first thing to talk about is what debt settlement and debt negotiation are not. Debt Negotiation is not about avoiding paying your bills. This is just a wishful thinking. If you borrow money from someone, they are going to want it back. This is only reasonable. If you borrowed money from someone, they can come after it for you. Some will come after you very aggressively. Creditors do have rights to contact you for repayment. Debt Settlement is not Bankruptcy. Continue Reading »

10 Tips on how to do your own Debt Negotiation and work with collection agencies, bill collectors and creditors

If you are going to do your own debt negotiation you are probably going to go up against a tough and aggressive pro. By following these steps you can take the upper hand and save yourself thousands by doing a debt settlement.

I think the first step in the game is to know what the rules of debt collection are. The more information you know about debt collection practices, the less harassment you will get. If a debt collector knows that you know the game, they probably wont mess with you as much. You need to become very familiar with the Fair Debt Collection Practices Act of 1977. You can also get a free booklet for the rules of debt collecting form the National Consumer Law Center. Continue Reading »