Settle credit card debt » Creditors

Debt Relief And Single Mothers

admin — Fri, 24 Dec 2010 05:55:10 +0000

Single moms often find themselves with a considerable amount of debt. In many cases, they must start from scratch after a divorce. The debt quickly adds up, as they begin a new chapter in their life. However, there are options for debt relief for single moms.

If you are a single mom drowning in debt, it is important that you have a full understanding of how much debt you exactly have. In order to find relief from debt, be sure that you sit down and make a compiled list of all of your current debt. Once you have an accurate list, then you can more effectively work to eliminate it.

Many single moms do not have equity in a home. However, if you do, then you may want to consider a home equity loan that can be used for debt consolidation. With consolidation, you compile all of your debt into one larger debt. Although you are compiling the debt into a larger debt, over time you will save a considerable amount of money. Since you will only be paying one single interest rate, you will be able to save the amount of money you are paying towards interest.

If you do not currently have a home or do not have equity in your current home, you can look at obtaining a personal loan. With a personal loan, you can pay off your other debt, just like with a home equity loan. Debt settlement is one of the quickest and easiest ways to get out of debt, without filing for bankruptcy.

A debt settlement company will help to negotiate and lower your overall debt with your creditors. Your creditor will agree to accept a single payment to pay off your debt. Once the creditor accepts the single payment, they will then report to the credit bureaus that you have fulfilled your debt obligation. They will report to the bureau that you have either “paid” off your debt, “settled” or “settled for less than full amount”. When in financial hardships, creditors are generally willing to accept a lower amount than you actually owe. They do this because they realize if you file bankruptcy, they may receive nothing.

Credit counseling can also help with debt relief. Credit counselors can work with you to reduce your monthly payments and/or create a debt repayment plan. Though it may take longer to pay off your overall debt, you will be left with more money each month to pay other bills. Make sure that you choose a reputable counseling service. You can ask family and friends for recommendations or check with the Better Business Bureau.

In some instances, it may be necessary to file bankruptcy. By doing so, you can begin with a fresh start. There are two basic types of bankruptcy, Chapter 7 and Chapter 13. With Chapter 7, you will need to sell off your non-exempt assets in order to make an attempt to repay your creditors. However, with Chapter 13, you will make a repayment plan through the bankruptcy courts.

Debt relief for single moms may be easier than you once thought. There are a variety of steps that you can take in order to bring you one step closer to financial freedom. Most importantly, once you have reached a point that you are free from debt, that you stay at that point.

By: Lee Beattie

Debt Resolution – Learn 5 Strategic Ways to Resolve Your Debt

admin — Fri, 26 Nov 2010 07:27:09 +0000

Debt resolution is a hot topic these days. Debt affects more households now than ever before. Currently, the average United States household carries a credit card debt over $9,000! Consumer debt is nearing a record 2.5 trillion dollars. Most economists are in agreement this trend of high debt is bad for the country and feel people need to develop financial awareness and a sound debt resolution program. But many people don’t even know where to begin to resolve their debt. The important thing is to take action, some kind of action. We will look at 5 ways you can begin to resolve your debt today.

1. Get a Free Credit Report. Knowing where you stand with creditors is probably the first step to debt resolution. Being able to know how creditors view your credit worthiness affects everything from getting credit when you need it most, to receiving the most competitive interest rates available.

2. Monitor your Credit. This action item coincides with and should be a follow up to getting a free credit report. Many negative marks unknowingly occur on people’s credit daily. You should take action and avoid becoming one of those victims. It is a very straightforward process, simply sign up for a credit monitoring system with any reputable company. Many offer a free 30-day trial period as well as a free credit report to start. A trial period will allow you to see first hand, the benefits of a reliable monitoring system.

3. Clean up your Credit Rating. You might see a trend with this article. Although some of these things may seem obvious. You would probably be surprised at how many people leave their credit in shambles. Then, when they want to purchase a high ticket item such as a car, boat, or even a mortgage, they are denied because of bad credit. After you get a free credit report and set up a monitoring system, begin to clean your credit up tackling each blemish one at a time.

4. Reduce the interest of your credit. Many people pay 15%, 20%, and even 25% interest rates on their credit cards. This is unfortunate because many can pay much less with a little bit of due diligence. Lowering your interest rate can save hundreds and even thousands of dollars every year on interest charges! Many credit cards charge unacceptable rates. This is a fact. You can fight back by getting a credit card with a much lower interest rate. Better yet, negotiate with your current credit card company for a lower rate. This in itself is a great way to way to reducing your debt.

5. Stop Paying Penalty Fees. Again, this is obvious, but many people succumb to needless penalty fees on a regular basis. Simply pay your bills on time. You will be surprised how much you can save.

Well, there you have it. At least 5 ways you can start reducing your debt and on your way to a debt resolution plan. Don’t wait until tomorrow, begin today to plan for your future.

By: Dan DeRoeck

Using Debt Consolidation to Settle Your Debt Problems

admin — Fri, 05 Nov 2010 05:19:00 +0000

If you are struggling with debt, the very first thing you must do is stop using your credit cards. Slice them up and throw them away. Taking on more debt is not an option until you have taken care of your debt problem. Pay off the smallest debts while paying minimum payments on your bigger debt, then start putting more into the larger debts. If you are still struggling, look for help through debt consolidation.

Be cautious when choosing debt consolidation. There are a variety of ways to consolidate debt so be sure to choose the one that suits your needs. If you are a homeowner and have enough equity in your home to cover your debts, look into a home equity loan that has a lower interest rate than what you are currently paying.

If you do not have home equity, some debt consolidation companies may still be able to help you. Find a service that offers to talk to your creditors about lowering interest rates and settling some debt with less than you do owe. They will then combine the rest of your debt and charge you one payment a month with an additional fee for their service. Sometimes they do this through an unsecured loan. Other times, they take your one payment and pay each of your creditors for you.

Don’t pick a debt consolidation company too quickly. Look into the backgrounds of several of them by checking with consumer agencies such as the Better Business Bureau and by talking to people who have used the companies you are considering. When you find one that looks reputable, call them and ask for details on how they work and exactly what they charge. A company that offers debt counseling is your best option. These services are invaluable when it comes to getting out of debt fast and staying out from under debt for the rest of your life.

If you have done all you can and debt consolidation is not a viable option for you, then you might consider bankruptcy. Don’t go that far unless you have exhausted every other avenue. Debt consolidation can be a very good thing if you choose the company wisely.

By: Philip McClarence

Tips for Writing a Professional Debt Negotiation Letter

admin — Tue, 05 Oct 2010 10:41:28 +0000

When it comes to the task of debt negotiation and settlement, you are faced with two options, both of which will require you to do some work. Some people choose to take care of business themselves and negotiate with their creditors one on one. Others take the easier route, which is to hire a debt negotiation service to help you straighten everything out and settle.

If you’re one of those brave souls choosing to negotiate your debt on your own, the first task you’ll need is to learn how to write a debt negotiation letter. Convincing creditors to settle at a lower amount of debt than you owe is quite the challenge, however done the right way, it can be done.

Before you start writing and sending out letters, carefully go over all of the pros and cons of self debt negotiation. If any of it seems like it may be a little too much for you, don’t hesitate to contact a lawyer of a debt settlement company. They will be more than happy to help you with any questions you have. Here are a few pieces of advice on how to write a legally binding debt negotiation letter:
Get to know the terms and conditions of your debt. This includes all of the fees, surcharges, taxes, and interest rates that apply. Put together some numbers of the total amount you owe, including all fees and taxes. Knowing what you owe and how much you have helps you have a better understanding of what you can ask for with your creditors. They will be asking for about three quarters of the balance, not the full amount so be sure to have at least that much. If you offer to pay too little or pay in low increments, most creditors will not take your letter as serious as you like. You want your settlement request in writing. Make your settlement request in writing. If there is any way you can, hire a lawyer or debt negotiation counselor to check over your letter for any inconsistencies or unnecessary items. The first one you write needs to be relatively low but also reasonable. If the creditor denies this first request, you can always raise your settlement request up enough without putting yourself in further financial duress. As you are writing out your letter, don’t threaten anyone in it or suggest that you are going to simply file bankruptcy if they don’t work with you. These tactics will only make things more difficult for you and less likely any creditor will work with you. Ok, the creditor has approved your request, now you need to show them that you are acting on good faith. Make all of your payments in full and on time. Be sure to get a written confirmation of the receipt of payment. Talk to a debt counselor to see what your other options are if the creditor denied your request or will only meet you halfway. Keep a record of all the correspondence you have with your creditors. Promises and agreements made over the phone are difficult to verify if something falls through the cracks. A paper trail, in this case, is good thing since it provides documentation of all your work. It also helps you to find important information more quickly if a question or problem arises. Any agreements which were made should be followed up on to ensure they all have been completed. An example of this would be if one of your creditors agrees to clear or partially clear your debt, check that the clearance appears on your credit report within the following few months.

By: TL Kleban

When and How to Use Debt Consolidation to Settle Debt

admin — Sun, 19 Sep 2010 21:28:44 +0000

The first thing you need to do if you are under a mountain of debt and are not able to make timely payments that do more than cover interest is cut up all your credit cards. Do not take on more debt until the debt you have is paid. Address what you can fix on your own and then look for help. Debt consolidation may be the answer you need for getting out from under high interest and multiple bills.

Debt consolidation should be considered after you have done what you can personally do to take care of your debt. Not all debt consolidation is the same so you will need to be careful when choosing a consolidation company. If you own your own home and have paid a substantial amount on it, you may be able to get a home equity loan to cover your debts. These are tax deferrable and likely lower in interest than your individual debts.

If a home equity loan is not an option, start looking into other debt consolidation companies. A good consolidation company can talk to creditors and be successful at lowering interest rates and getting some of them to settle debt for a lower amount. They will either pay off the rest of your debt and then charge you one lower monthly payment plus a fee for their service or they will be the “go-between” that collects one payment from you and divides the money up amongst your creditors. The one payment includes their fee in this case.

To find a reputable debt consolidation company, use the internet to find consumer reports. The Better Business Bureau’s online site may have information on the companies you are considering. Read all the reviews and talk to other people who have used the company. Then, call the company and ask about their services. Make sure to ask them for detailed information on fees you will owe them and exactly which services they offer. A good company will often offer credit counseling. This kind of counseling can not only help you get out of debt but can help to keep you out of debt.

Never consider bankruptcy until you have at least looked into debt consolidation. If you go through a quality company, you will be glad you chose to consolidate.

By: Philip McClarence

Excessive Credit Card Debt Solutions

admin — Sat, 04 Sep 2010 06:34:06 +0000

Of all the things you can do to resolve your excessive credit card debt, the first thing to do is to stop creating more. I’ve seen more than one person get out of debt briefly, only to fall back into it. Start changing those habits. Regardless of how quickly you change your habits, though, if you have the debt, you want to knock it down. Here are some suggestions.

Excessive Credit Card Debt Can Be Discounted

You may be able to settle debts for a discount. When I collected debts for a living, we often took 50% as payment in full, when we thought it was the best we could do. The point is that if you really can’t handle your payments, you may be better off to borrow from family to settle your debts for 20% to 60% of face value. Credit card companies sometimes take 50% or less as payment in full if they are convinced you are headed towards bankruptcy. (Note: this is still possible, but more difficult now with the new bankruptcy laws.)

Send a nice letter explaining your situation, and how you will get the money for the pay-off. Tell them you’ll most likely be filing for bankruptcy, but would like to settle up with any willing creditors before that happens. That let’s them know they may be left with nothing if they say no, and you split your remaining assets between other creditors.

How To Pay Debt Most Efficiently

When trying to dig your way out of debt, always pay high-interest cards first. If, for example, you have $200 budgeted to apply to your cards each month, pay the minimums only on all others, then put the rest of the money towards the card with the highest interest rate. When that one is paid off, work on the next highest.

This powerful technique saves a lot on interest charges. Suppose you have three cards. You would pay the minimum of (let’s assume) $40 on two of them, and apply the other $120 to the highest interest card. When that card is paid off, you continue to put $40 towards one card, and now apply $160 to whichever of the two remaining is the higher interest credit card. It is the fastest way to pay down credit card debt.

Excessive Credit Card Debt – Other Tips

Never buy the credit card insurance. This insurance typically stops your payments when you are injured or unemployed. It’s one of the most over-priced insurances out there, and doesn’t eliminate the debt, but just delays it.

Never buy credit card security insurance. This insurance pays for unauthorized charges when your card is stolen. Since you are only liable for the first $50 if you report the theft in any case, and many cards already have 0 liability, this isn’t needed.

Be careful with consolidation loans. Never consolidate debt into a home refinance unless you have a definite plan for paying the loan off early. 10% isn’t cheaper than 18% when it is for 30 years instead of 5.

If you’ve tried some of these techniques without success, and just can’t seem to do it on your own, consider contacting a credit-counseling service. Sometimes they can help you negotiate lower rates with your banks, and otherwise counsel you on how to reduce your excessive credit card debt.

By: Steven Gillman

How Can I Settle Credit Card Debts Myself?

admin — Thu, 02 Sep 2010 05:11:58 +0000

The average American family these days owes at least $10,000 of credit card debt, plus a mortgage and at least one car payment. Many consumers have fallen into the trap of only being able to make the minimum monthly payment or worse make the payments on an irregular basis. Does this sound like you? Have you wondered “How I can settle credit card debts myself?

The answer to that question is through debt settlement, convincing your creditors to take less than the full amount owed. Like the pharmaceutical advertisements on TV, debt settlement isn’t for everyone.

Your accounts must be at least 6 months over due. In other words no payments have been made for 180 days. At that point the bank or credit card company will have written off the balance of the card. It is still a valid account but its worth to the bank is close to nothing. If you make a payment on the account its value increases and the creditor won’t negotiate.

You must have some funds available to pay at least 50% of what you owe. Most creditors won’t agree to anything much lower when negotiating with an individual creditor. Of course start the discussions with an amount that is 35% to 40% of what you owe so you have some wiggle room.

It’s fine to start the debt settlement procedure with a phone call but it’s best to get everything in writing. Your job is to convince the creditor that there is no way that you can possible pay more than what you’re offering to settle for. It may not be pleasant but if you’ve lost your job, gone through a divorce or have major medical bills to pay, the creditor needs to know that.

The creditor may insist that you make a payment, even just a small payment immediately, to show your good faith. But remember, if you do that you bring the account to day 1. Accounts must have had no payments for 180 days to be eligible for settlement.

Until the creditor has agreed, in writing, and you’ve made the settlement payment, the creditor can pursue legal action. As soon as you receive an debt settlement agreement, send in a check for the amount with a copy of the agreement by registered mail or overnight delivery. Some advisers say it’s best to put on the back of the check where it would normally be endorsed a statement that says For payment in full of account (and then your account number.

Debt settlement is one answer to the question: How Can I Settle Credit Card Debts Myself?

By: Dee Power

Consumer Credit Card Debt Relief Scams! Are They Real?

admin — Tue, 31 Aug 2010 16:13:58 +0000

I have been in the credit card debt relief industry for just about 10 years now and have been in the financial industry for over 20 years. The point of this article is to give people a heads up on debt relief companies also known as debt settlement or debt negotiation companies. I will give you the pro’s and con’s of this process and what to watch out for when interviewing a company to help you get out of debt. Before I go on I want to let you know that this will be a rather long article and by the end of it my goal is to have you understand how the debt negotiation/settlement process works in case you don’t already know and I would like you to understand the tactics of companies out there that do not truly have your best interest at heart.

First I would like to state that the process of debt negotiation as your means of consumer debt relief is not for everyone, some people are better suited for bankruptcy and others do not have the correct mindset to go through this process.

I would like you to first understand what debt negotiation is and how it works. The goal of a debt negotiator is to obtain a debt settlement for you on the current debt amount you owe your creditor. So for example you may owe one particular creditor $10,000 so the goal of the negotiator would be to have you end up paying back say $6,000. The two main benefits of going through this process are to save money on what you currently owe your creditors and to save time. By just paying the minimum payment with even a modest interest rate you will be looking at 30 or more years to become debt free, with a sound debt negotiation program you will be out of debt within 2-3 years or sooner depending on your current financial situation.

Now you must understand these are great benefits but as with anything in life there are drawbacks, nothing is perfect and this consumer debt relief procedure is no different. For starters your creditors will not be willing to negotiate a debt settlement at all if you are current with your monthly minimum payments. They would prefer you to stay on their credit treadmill for the next thirty years and pay them back over four times the balance in interest alone. So you must fall behind on your payments to put the creditors into a position where they will be willing to settle. Once you stop paying them the ball game changes completely and they will then be willing to talk in terms of negotiating a settlement.

So obviously for some people the beginning of this process will have a negative effect on their credit score. For those who are already falling behind then the negative effect will be no different than it already is. Unfortunately for some people this will be the deterring factor that keeps them from going into debt settlement making them a slave to their creditors for the next thirty years. The good news is that this negative effect does not last forever, in fact once the settlements start coming through your credit score will begin to rebound and go back up. The reason being over 30% of your credit score according to MyFICO is based on how much debt you owe. But if you are stuck in a bad debt situation even if you are current with your payments your score is probably not all that good in the first place, and besides when stuck deep in debt your focus should be on how to get out of debt as quickly as possible, not on your ability to accrue future debt.

Now by falling behind on your debts you must understand that these creditors are just not going to roll over and play dead, they will be calling to try and collect the debt. For some this is not a problem at all, for others it is, that is why I stated above this process is not for everyone and the consumer must be in the correct mind set. From my years of helping people there is no rhyme or reason to how many calls you will receive some clients of mine barely get calls while others get them almost everyday. Something to keep in mind too is that no company has the power to legally stop the calls, so any company that tells you they can is flat out lying.

As you can see like I said earlier there are pro’s and con’s, but if you can accept the con’s you will be quickly on the road to financial freedom and will save a lot of money in the process. Now to get to the meat of the matter and why I named this article “consumer credit card debt relief scams”.

We here in America over the past couple of years have been experiencing a very negative downturn in our economy. Thus putting many consumers in a compromising position financially, leaving boat loads of people stuck in credit card debt. So naturally this opened up a much larger market for debt negotiation. Many fly by night companies have been popping up all over the country, many of which are ex mortgage brokers who sold people bad loans and helped them get into this sticky position in the first place. Now I use the word scam which can take on a few meanings, while yes there are some companies out there that are flat out scams and have no intent on doing any work for you at all, most of the times that is not the case. Instead many companies simply do not give people all the facts on how debt negotiation works nor do they truly put them on a plan for success, which I will explain in a minute.

One common issue that most consumers have with debt settlement companies is they do not fully tell them about how the process works, instead they sugar coat things and just preach about the great benefits. I have spoken to countless amounts of people who have signed up with companies and were under the impression that they were going to stay current with their creditors and will never receive any calls. So needless to say this became a huge problem once they began.

Another major problem a lot of these companies have is deceiving people into the kind of savings they will be getting on their debts. Some companies will say they will save you 70% of what you owe. Now while they may get settlements that low what their opting not to tell you is how much you will be saving after you have A) paid them their fees, and B) paid back the creditors. Honest companies will tell you what your true savings will be. If you will save somewhere between 40-50% of what you owe including their fees and paying the creditors than that is pretty darn good. Plus many of these companies will try and guarantee a certain amount of savings, if you hear this run for the hills. NO one in this industry can guarantee a certain amount that is why it is called DEBT NEGOTIATION! They are negotiating to get a settlement for as low as they can get.

Then there are the companies who will let you pay whatever you can to get on their program. These are the worst because they do not truly have your interest at heart and know they are setting you up to fail and not succeed. You must understand to achieve the type of savings I stated above this process should take no more than three years, preferably two or less. And the bottom line is some people simply cannot get it done in that time frame and should realistically be looking into bankruptcy. What these unscrupulous consumer debt relief companies will do is put you on a program for 4 or more years and basically accepts whatever payment you can afford. Knowing full well you are not going to be saving much of anything and will more than likely fail off the program, all they care about is getting the fees and that is it. An honest company will diligently review your budget with you and make sure this is something that you can manage, as well as fully explain to you both the benefits and drawbacks of doing this. And let you make the conscience decision as to whether this is the best consumer debt relief method for your situation.

Another very good way to evaluate a company is to make sure they are registered with the BBB (Better Business Bureau) and that they are in good standings with very few complaints. And if there are complaints make sure they were resolved to the clients liking.

By: Stephen Bis

Consumer Credit Counseling Services Provide Debt Relief Help

admin — Sun, 22 Aug 2010 09:13:23 +0000

Many people who are suffering the financial strain of having too much debt turn to consumer credit counseling services to get their finances back on track. They have the experience and resources to teach you how to successfully put together a monthly budget that will help you better manage your money.

This is the financial downfall of many people, not managing their money properly. Once you are able to create a personal budget showing your income and expenses it becomes easier to control where your money is going. Too many people have lost control of their money and spend most of the time between pay checks wondering where it all went.

This is where credit counseling services can be of help. They have helped hundreds if not thousands of people in the same circumstances come to grips with their financial problems. They understand the straights you are in and will work to help you come to terms with building a workable and sustainable budget. In addition to reviewing all your financial data and making recommendations as to how best approach your current debt situation they should also begin to work with you on your long term financial goals.

A good consumer credit counseling service will also teach you how to and help you make arrangements with your creditors that will allow you to meet your budget every month. This will help to stop the threatening phone calls and letters and give you an opportunity to make good on your debt that works for you. Many debt collection agencies are quite happy to leave you alone as long as you do send them something every month. This can also help you avoid legal action that some creditors can take when trying to recoup what you owe.

All these services will charge some sort of fee if you decide to seek their help. Be sure to check around and compare the cost of doing business and avoid those companies that charge higher prices. In fact there is a good chance that there is a non-profit credit counseling service in your area. They normally cost less then for-profit companies and the advice you get will generally be some of the best. If you are not sure if the company you are dealing with is a non-profit contact your local IRS office where they keep records on all business and there status as non-profit or for-profit.

A consumer credit counseling service will give you the best results for your money if you are honest with yourself and them about your financial problems. You will need to reveal all your income, expenditures, and debts you owe and those you are having trouble paying or are behind on. They will give you the best advice and help you meet your financial goals if they can see the whole picture.

By: Andrew Bicknell

Settle Your Own Debt ‘Only If’

admin — Fri, 23 Jul 2010 20:44:19 +0000

Time is valuable. Most people can not afford to lose time from work to negotiate settlements on their debt. Phone calls, and correspondence must to be answered. Complete contact must be kept with creditors and collection agencies, every detail of the debt being negotiated on must be known. Can everyone afford to do this, YES, if they are home unemployed! Arrangements sometimes may take up anywhere from one day to six months , this is why I say negotiating debt is time consuming.

Collectors will test your patience. The phone calls become unbearable, one call after
another, collection agencies do not give up. These calls come at all times of the day, and they are computer generated, knowing the stress you are going through just being in debt are you willing to add extra stress because you think you might know what you are doing? This is where many people quit their own efforts and contact debt relief agencies. Trust me I have the gray hair to prove it, collection calls are not easy to deal with.

If you are a car mechanic chances are I will trust you with the brakes on my car. I do not think I will go to my local garage to learn how to become debt free. The know how is not only how to speak, most of us know how to negotiate, it is not complicated. Working on oyur own debt is knowing when to say certain things and when not to. negotiating is like a boxing match, one must know when to take a punch and when to hit back. This is called experience, just like that car mechanic who knows when to change those brakes, debt negotiators know when to go in for the kill. Unless you are extremely good at knowing when to punch and when not to, debt settlement is not the business for you.

The contacts. Most people laugh when I mention this, the fact is this business is repetitive. What to say, what to do and whom to work with. Believe it or not, there are nice people collecting debt. It takes time, patience and the know how to find these people. Once you find them, you never let them go. You make your enemy your ally, in this case debt negotiators learn to work with debt collectors. They work up a rapport, they sometimes become friends, that is why it is so important to seek the proper help.

If you think you have what it takes to negotiate on your behalf, by all means go ahead. Keep in mind the road is not going to be easy but not impossible. It is highly rewarding to know you can make a difference in peoples lives, as a debt negotiator I take great pride in helping those in real need of debt relief, people with a real hardship. I wish you great success in your efforts.

By: Dan Delgado