Debt Negotiation Zone » get debt free

Selecting Debt Settlement

admin — Wed, 07 Oct 2009 21:32:03 +0000

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.

Why are credit card companies assholes?

admin — Fri, 17 Apr 2009 19:07:34 +0000

Credit card companies are assholes mainly because that are only interested in making money off of you. They don’t care if you get sick or lose your job, they just want your money. Credit card companies are not your friends. I looked in my wallet the other day to see what I was carrying around in there. Visa, master card, discover, chase, bank of america, I have them all. They don’t do anything for me except charge me money.

You are better off to live on a cash system or use a debit card. You will be a lot happier not having bills to worry about paying each month. There is no price on peace of mind. Don’t be a slave to your creditors, don’t go into debt. I don’t care how much you want something.

Debt Free is the way to be.

Can You Negotiate A Car Loan?

admin — Fri, 24 Oct 2008 15:15:23 +0000

People in this country are in debt. I get asked questions all the time about negotiating credit card debt. Now I am getting questions about negotiating on a car loan. For starters you can negotiate with credit card companies once your are behind on the bill. Credit card debt is unsecured debt. Car loans are different. A car loan is secured by the asset, the car. If you quit paying on your car loan, the repo man will come and get it. My suspicions are that they are getting more car repossessions now more than ever. They may not want to take the car back. It cannot hurt to call the car loan company and see if you can get a forbearance or at least try to work out other terms. With a glut of cars on the market, they are going to loose a lot of money. The car finance companies would be smarter to try and renegotiate terms just like the banks are doing for home mortgages. It costs these companies a lot of money to store and maintain these cars. Some of these cars that are repod may need to have maintenance done on them. You have to hire a whole staff just to keep on the all of these.

Stay Out Of Debt

Your best bet is just to stay out of debt. Being debt free will give you peace of mind. Debt will just give your worry. With the credit crunch going on, people are going to have to develop new habits toward debt. Buy now and pay later did not work. We are going to have to go back to the money mindset of our grandparents. They did not have credit cards. If they did not have the cash, they did not make the purchase.

Have A Cash Christmas This Year

admin — Thu, 23 Oct 2008 16:27:42 +0000

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.

Dave Ramsey vs. Suze Orman getting out of credit card debt

admin — Tue, 12 Aug 2008 22:59:59 +0000

What debt guru has a better method for getting out of debt? If you were to match Suze Orman up against Dave Ramsey and their debt free plans, who would win?

How does Suze Orman tell you to get out of debt?

Here are the steps that Suze Orman says to take to get out of credit card debt,

1. Figure out how much you are able pay each month towards a monthly debt payment for all of your debts.

2. Put an extra $10 on each minimum credit card payment you are required to pay.

3. Add up all of your minimum credit card payments and add $10 to each card.

4. If you are lucky the difference between the numbers in step 1 is more than the figure in step 3. It it is then apply the difference to the credit card with the largest interest rate.

5. One you have a card paid off, you continue on with the process until all of your credit cards are paid off.

Dave Ramsey uses the Snowball method for paying off credit cards

1. Get a list together of all of your credit cards. Put them in order from the highest balance to the lowest balance.

2. Pay as much as you can with the card that has the smallest balance and pay minimum payments on the other credit cards.

3. Once you have paid off a card, take the money you were paying and apply it to the next smallest balance credit card.

4. Keep on doing this until all of your cards are paid off. This method has also been referred to as the roll up method.

This information is of general interest only. Please contact a professional for financial advice.