Settle credit card debt » Credit Accounts

Now Is The Time To Settle Unsecured Debt

admin — Sat, 03 Jul 2010 02:23:49 +0000

Debt settlement has been designed to help people whose unsecured credit accounts has fallen behind, it is an aggressive plan to help save as much money as possible in the least of time. The current economic situation of our country is dictating more and more banks seek solutions that will help them avoid losing money. Now is the time to go after settlements if unsecured credit accounts have fallen behind.

Settling unsecured debt is not easy, it is a process of tough negotiation, of patience and of knowledge. Today more banks are offering to settle accounts that are delinquent anywhere from ninety to one hundred and sixty days, this period is essential for any person looking to settle his/her accounts. First the banks want to settle in order to minimize losses and also not to send accounts to collection agencies.

Aggressive is the word that best describes debt settlement or debt negotiation, this is in fact because all accounts have a window of opportunity to be settled on as I mentioned before. This does not mean that if an account is referred to a collection agency it cannot be settled on. Yes, accounts can also be settled with collection agencies and sometimes it is better an account is let go to them. here is where the knowledge and patience part of negotiation comes into play because collection agencies play harder than original creditors.

Collection agencies will be relentless in their pursuit of a client, they will call a persons home, job, neighbors, etc.. If there is an excellent negotiations firm behind the client this stress can be minimized. Reason number one debt settlement companies or firms came into existence, to lessen clients stress.

In the case an account cannot be settled with the original creditor or a collection agency it may have to be settled with a collection lawyer. Accounts have a natural cycle and no one can stop it, the only action that can stop it is to negotiate settlements. Lawyers are extremely adept using scare tactics to bring clients into paying amounts of debt that have accumulated interest rates, late fees, etc… They will threaten with lawsuits, liens and many more tactics to get a person to buckle down and pay amounts of money not originally owed. Many actions by lawyers can also be avoided if addressed correctly by your debt negotiations firm.

Bottom line is, debt settlement is aggressive on both ends of the stick. Clients must learn to be as tough if not tougher than collectors. Patience is of the essence and not all settlements are to be taken first shot. Experience negotiating debt must be displayed, or collectors will eat a person alive. There are many firms with a reputable reputation that will do a fine job, that will keep stress levels down and not charge an arm and a leg for their services all we have to do is look and investigate far enough and we will find the solution that will help us eliminate our debt in the least amount of time possible.

By: Eric Gartle

Facts You Should Know About Before Negotiating Your Credit Card Debt

admin — Tue, 02 Mar 2010 17:03:58 +0000

Many people claim it is the debt relief programs they join that are at fault for their pain and suffering, in some cases it is true. What most people do not understand, it is their own responsibility to settle their accounts. I will explain what I mean in detail. When a person wants to negotiate or settle an account he/she is already delinquent on, what is most needed to settle such an account? MONEY!

That is right, money must come along sooner than later to be able to negotiate on a delinquent account. First of all people get in credit card debt because they have no money. If they had money in the first place they would buy everything they needed with cash. If you have no money, do not buy things you do not need. If you live by this rule it would be highly unlikely that you will end up in credit card debt. Lets assume you have delinquent credit accounts and you want to negotiate settlements on them, here is what you must be aware of:

1) Find an affordable agency to help you out. Find an agency that does not charge outrageous fees. Remember you are already in debt, some agencies will only get you deeper in debt. Find an agency with no retainer fees, monthly maintenance fees, or high commission rates. Shop around, do not join the first agency you speak with. Widen your horizons, do your homework, expensive does not always mean the best in the debt settlement industry.

2) Stay away from agencies that promise you the world. In the debt settlement industry there is nothing for certain. Do not let an agency tell you they can save you so much, that is a lie, not every person receives the same treatment from creditors or collection agencies. Discounts are given on a case by case scenario. Beware of false promises.

3) Do not ever under the advise of any agency stop making your payments. Whatever loan you are making payments on, it is illegal for anyone to suggest to you to stop making payments on it. If this advise is given, beware of the agency. This is only going to get you into more debt. Even though payments are not made, interests rates will go up, late fees and other charges will still continue to accumulate.

4) Do not send any agent any money unless you are absolutely sure they have a settlement letter in writing for you. Here is where the trust factor comes into play. If you have joined an agency after you have read all the advise given before, then you must trust your debt relief agency. Keep this in mind, most agencies will not forward a settlement letter to you unless the commission money has been paid to them. If you pay the commission money to your agent demand they fax a copy of settlement letter right away.

5) Most people fail to settle their accounts, why? Lack of money! Do not believe you have 24 or 36 months to settle your accounts. I have seen people get sued only after a few months of delinquency. That is a fact. Most agencies will lie about this fact. Be very careful, some people do get sued, have their wages garnished, leans on their properties, etc.. There must be money to settle your accounts somewhere along the road. The best time to settle your accounts could be around the sixth month of delinquency. Will you have the money then to settle on all your accounts let alone one account? In most cases I do not think so. By now you know why I told you before there is no one else to blame but yourself for the troubles you have brought upon yourself if you have stopped making your credit card payments, it is not your agencies fault, it is the lack of funds to settle with that is doing the number.

6) Let us say you do have funds to settle with. Great. Bad news is not all credit companies or lenders settle. Do not let your agency of choice tell you because you have funds to settle with you are going to come out smelling like a rose. That is a lie. Yes, you will probably settle many of your accounts, reach payment plans on others, the likely hood of getting sued will diminish. It does not mean because you have money to settle with you are going to get everything you want. That is why it is called Debt Negotiation, because that is exactly what it is, a compromise, two sides have to agree, or come to a common ground and then settle. Debt settlement in most cases is not a complicated process, but some negotiations take more time than others even if there are funds available to settle with.

7) After all this you are wondering if it is really worth it to have an agency negotiate on your behalf. I say you can negotiate for yourself. My question is, do you have the know how, the contacts, the experience or the time to do it on your own? If you answer yes to all these questions, then my answer is, in the form of a question, why are you in debt in the first place? Most people think they can negotiate on their own, some can to a certain extent, but remember what I asked before, are you really ready for it?

Promises, false promises. No agency can keep your creditors off your back 100%. Big lie, people are told this as a hook to join an expensive debt settlement program. We will handle all your creditor calls, big lie. 80% of the time your calls are not followed up on. We contact every creditor once you join our program, big lie. If that was done then you would probably have to settle your accounts all at once. We can save you 80% off your total deb, big lie. I have been in this business for many years, no one knows how much they can save anyone at a specific time, all we can go on are averages of many negotiations with the same company. You will not get sued, our program will allow you 36 months to settle your accounts, big lie. No one knows have much time before legal action is taken, any time you decide to stop paying your creditors you are rolling the dice on legal action. We will refer you to legal council if you get sued, big lie. You will get sent to your local court house to file a legal answer.

9) Be careful of all promises and lies, there are more but I can continue writing forever, just do your homework, stay away from fancy agencies that promise you the world. If I were in debt I would rather hear the truth, and you?

By: Eric Gartle

The Credit Report Credit Card Debt Settlement Effect

admin — Thu, 04 Feb 2010 03:07:36 +0000

When you settle credit card debt with a consolidation agency or directly with your card provider, several things happen. You pay a lump sum to the lenders that is less than the total sum of your debt, which is probably financed by a third party lender. The net result is that you will have a new debt, and your old debt will be reported to the major credit agencies as settled, which is a different status from ‘paid as agreed,’ late, or defaulted accounts. There will be an impact to your credit score that you need to anticipate when you choose this route.

It is important to understand the effects of each component of this transaction. First, the settlement of your debt will reduce your credit score, but much less than bankruptcy. Secondly, if the account you settle is a loan or other fixed debt, the account will close, which will also reduce your credit score very slightly. If you settle the debt of a credit card, then your account may stay open, though this is subject to your card agency’s decision.

Because most settlement programs include a consolidation loan, there will be two events that affect your score. First, the agency making the consolidation loan will require a credit check to assess the breadth of your debts and your history of payments in order to understand how to structure your consolidation loan. This inquiry will mean a small hit to your credit score, as would happen with any application for a major financial service. Secondly, you will have a new loan account opened to cover your consolidation payments. Having a new account will be helpful insofar as you will have an extra account on your report, but when it is brand new it will reduce the average age of your credit accounts until the loan has aged a bit.

Overall, your credit score will take a hit from settlement, but this hit is definitely preferable to alternatives like bankruptcy and default. Because you will be completing your obligations on terms agreed to by your lender rather than abandoning your agreement or forcing your lender to accept a bankruptcy claim, you can salvage much more of your creditworthiness by using settlement than you would have otherwise. This can be a very important factor in deciding if credit card debt settlement is right for you, as keeping your credit can be an essential part of maintaining your financial health.

By: Hector Milla

Settle Multiple Credit Card Debts Through Debt Consolidation

admin — Fri, 14 Aug 2009 22:47:38 +0000

Debt consolidation is fast becoming the choice for many Americans who want to get out of credit card debt. There are numbers of assistance organizations who offer debt consolidation as one of their main services. But what is involved with this type of consolidation? Many Americans own more than one credit card and keeping up with multiple credit accounts can have an adverse effect on anyone’s finances, especially if one is barely making enough income. And it is no secret that many individuals are indebted to at least two card companies.

When their finances can no longer keep up with their debt because of the accumulation of the amount plus the interest rates and other late charges from various accounts, the usual method to remedy the situation is through the aforementioned consolidation.

Debt consolidation happens when a person fuses all his accounts into one and pays them all off by taking another loan. What makes this a popular alternative for people with huge debt is that they are left with one single account to worry about. Another good thing is that with the help of a one of these assistance experts, a person can get a loan together with terms and payment schedule that are easy to adhere to and keep track of.

Truth be told, many people have been pulled out of debt and ushered into a debt-free life through consolidating their accounts. If you are one of those who have huge debts on their name, it is an imperative that you eliminate debt now before it grabs hold of your life. You can discuss more about consolidation with a credit card debt help professional and explore other settlement options that are immediately available to you.

By: Jiles Masson