Settle credit card debt » Debt Settlement Companies

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

Debt Settlement Procedures – How Do They Work?

admin — Sun, 25 Apr 2010 02:07:22 +0000

When you contact a debt settlement company to assist you in solving your debt problems there are a few things you need to do and expect. First, prior to making the first contact with the debt settlement company you should gather ALL of your unsecured debt together. A settlement company can assist you with each unsecured debt that you have. This includes credit card bills, personal loans that do not have collateral and medical or other personal bills.

When you enlist the help of a debt settlement company they are going to require a lot of information from you about your debt, your ability to repay that debt and any other factors that may affect your debt settlement. This is a long process to begin with, but well worth the time.

Your credit counselor is going to review each and every debt and begin making contact with the debt holding corporation. They will negotiate a settlement price that both parties will agree upon and then you will pay that balance off in full at that time. While the negotiations may take several weeks to accomplish, you will see a significant reduction in the amount of money that you will need to repay and this is the main advantage of this program.

Debt settlement companies have the ability to have late fees, over limit charges and other non-charged debts removed from the balance of your account. They also have the authority to request the creditor to stop or lower interest rates on the account once negotiations have begun. This alone will save you money.

You should be aware that when you use a debt settlement company that the accounts you settle on will be officially closed. This is generally a stipulation made by the credit issuing company. Your credit report will reflect that the account is closed but it will also reflect as paid in full. While closed accounts may detract a little from your credit score, a paid in full notation will boost the numbers right back up. You will be able to start reestablishing credit again within months of using a settlement program.

Once the settlement company has arranged for all the lowered payment amounts your obligation will be to pay the balance in full at that time. You will also be required to pay for the services of the settlement company. You will be debt free from all your unsecured debt once this process is complete.

By: Hector Milla

Credit Card Debt Help From Government – Is it Real?

admin — Fri, 16 Apr 2010 03:44:56 +0000

With so many government programs being passed in recent months, it’s quite likely that you’ve started to hear about credit card debt help from the government. However, you may be wondering if it is real. People who are in significant debt have probably received solicitations encouraging them to use a particular debt relief program. What exactly is being offered and can it help your situation?

The Scoop on Government Programs

There are definitely government sponsored programs that are being put into place to help Americans get out of debt. While you can probably feel confident that these systems will do what they claim for the average user, they really don’t offer a lot more than what you can do for yourself. By calling your credit card companies yourself, you can usually receive an offer to settle credit card debt for about 40% of what you owe. Because there is no middle man, you will not have to pay any fees or accompanying costs. With government options, they will take their cut like any other company would.

Is It Any Different Than Other Settlement Programs?

Using a government sponsored program doesn’t really offer you any advantages over standard debt settlement companies. The creditors are being encouraged to balance books in any way that they can and they will talk with the settlement company of your choice just as readily as a government agency. Also, most consumers are well aware that the government isn’t known for efficiency. A dedicated business, on the other hand, can not function unless it does things right.

What Other Help is There?

Besides using a credit card debt help that is directly sponsored by the government, there are several hidden advantages to the central involvement in financial affairs. First, because of bail out plans, every creditor has a distinct incentive to cut you a deal by the government’s encouragement. There also may be grants that are available that can be used to pay off consumer debt. However, they aren’t listed as such and you’ll need to search deep to find those opportunities. Finally, the government is attempting to invest in the economy and create jobs and that may lead to less consumer debt overall, if the plan is effective.

What Can I Do On My Own?

The good news is that you aren’t at all limited to the options that are being put forth by the federal government. You can still create and implement your own plan. This may include using your own middle man to negotiate payments and settlements. With enough persistence, you can also deal directly with the credit card companies and get good results from those efforts.

There are definitely real options that the government is offering for credit card debt help. However, they aren’t necessarily better or more lucrative than other readily available methods that you can take advantage of.

By: Hector Milla

Debt Settlement WARNING! (Plus 3 Rules to Avoid Trouble)

admin — Mon, 15 Feb 2010 11:32:21 +0000

Shopping around for debt relief programs? Getting quotes from different debt settlement companies? Filling out forms on the Internet, looking for help with credit card debt?

Tempted by Lower Payments?

Don’t be fooled…

DO YOU HAVE ACCOUNTS WITH ANY OF THESE CREDITORS:

Citibank, Discover or Bank of America? (Are you sure?)

JANUARY 2010 UPDATE: Target and Kohl’s have both become highly aggressive. Your program must account for the higher cost and possibility of lawsuits to be successful. Only work with professionals who require creditor information from current statements for quotes, and pass the tests below…

BUYER BEWARE:

If you receive quotes from anyone who does NOT ask you who your creditors are, you better RUN!With so many people in a financial hardship these days, many unscrupulous, untrained or ignorant people are jumping onto the debt settlement bandwagon… unfortunately this could mean big trouble for you!

Did you know Citibank, Discover and Bank of America are much more likely to file a lawsuit against you if you make the mistake of enrolling into a bad program over 24-30 months. Or, in some cases, even if it’s longer than 12 months?

It all depends on how much debt you have with “aggressive creditors” like Citibank, Discover and Bank of America.

You may have accounts disguised as other creditors, but and are actually owned by these same nasty creditors, like…

* AT&T Universal (Citibank)

* Most gas cards (Exxon, BP, Citgo, Chevron… ALL Citibank)

* Sears (Citibank)

* Sometimes Lowes & Sams (Discover)

* FIA (Bank of America)

* Plus many more common names you might know all too well, but didn’t know were ticking time bombs in your financial plan.

In fact, if you have too much debt with Citibank, Discover or Bank of America, then debt settlement MIGHT NOT WORK for you at all!

JANUARY 2010 UPDATE: Citibank has recently become much easier to deal with, settling account for much less and backing off on legal action. In fact, many creditors are softening. I believe this is due to the economy. Creditors want something instead of nothing, ASAP. This is GOOD NEWS for you!

These rough economic times are indeed the very best time for you to get out of debt for as little as possible, AS SOON AS POSSIBLE! A friend of mine recently had $75,000.00 of his personal credit card debt with Bank of America settled for only 10% ($7,500.00).

Take advantage now if you’ve been affected by the economy and are struggling with serious debt.

What if you enrolled in one of these debt settlement program who DID NOT account for these “aggressive creditors” (like most debt settlement companies offer today)?

If you’re like one of the many clients I’ve attempted to help when they came to me after dropping out of one of the many bad debt settlement programs like this, then you too would just get ripped off and left to deal with nasty creditors on your own. You’d be a year or two into a program that was destined to fail from the start, with a LOT more debt (higher balances due to interest and fees piling up), “a whole bunch of nothing” for a lot of money paid in fees to an unresponsive debt settlement company with a long list of complaints… and your accounts will be too far gone for a legitimate debt settlement company to do anything for you that you could possibly afford. It usually takes a large LUMP SUM at that point, roughly 65%+ of your total debt, to avoid bankruptcy or worse…Watch out for the “smoke and mirrors” most debt settlement companies are trying to pull these days.

There are literally thousands of debt settlement firms who have jumped on the bandwagon in just the past couple of years. Most of them have come from failed sub-prime mortgage companies, who were behind the slew of bad loans that helped through our economy into the tailspin we’ve been in.

“Three Rules”…Make That, “Four Rules” To Avoid Costly Debt Settlement Mistakes:

RULE #1. Only get quotes from a debt settlement company who requires statements.

Watch out for high pressure sales people or slick-sters trying to sell you on the lowest monthly payment without even looking at your specific situation. Steer clear of any company or sales person who attempts to enroll you into a program without covering everything included in the “TASC Standard Disclosure.

RULE #2. Only work with a debt settlement company who has been in business over 5 years.

If 90% of businesses fail in the first five years, why would you ever trust your financial future with an unproven start up company? Stay away from start ups or companies with a “business start date” listed on their BBB Report less than five years ago. Choose a company with a proven track record over time.

RULE #3. Only work with companies with a clean BBB Reliability Report.

Stay away from companies with a long list of complaints… especially “unresolved” complaints. This is a sure sign they over-promise and deliver poor results, probably getting their clients sued unnecessarily. You need a company, and a consultant, who will be there for ou throughout your program to see to it you are taken care of and successful in your efforts to get out of debt.

Bottom Line: Learn what a “satisfactory record”* with the BBB means and require it from any company you consider trusting with your financial future.

*JANUARY 2010 UPDATE: Because of the many unscrupulous operators in the industry, as mentioned mentioned above, the BBB rescinded Membership for many debt settlement companies in most areas of the country. It’s a case of a few bad apples spoiling the barrel. Few parts of the country still allow membership. In addition to this, the BBB has issued “D” ratings to companies just for being in the debt settlement industry, even with no history of complaints or problems with consumers.

There is currently no criteria recognized by the BBB to distinguish good companies from bad, other than the length of time in business and the number of complaints.

* The BBB’s credibility has come under mass-scrutiny. The BBB is not a government organization, but private entities who have amassed major influence over consumer buying decisions, but have become unfair and corrupt in their own business dealings.

FreedomDebt.com, for example, was an Accredited Member of the BBB until summer 2008 when the company’s membership was rescinded because of the industry the company is associated with in the state of Texas. This, the BBB assured, had nothing to do with the company, its performance or service to customers. Maintaining a good reputation and trust with clients since 2002, regularly invited back to news programs and talk shows for live TV interviews all over the country, FreedomDebt.com (Debt Freedom, Inc.) services many thousands of clients nationwide, and still maintains an outstanding track record with the BBB (only two resolved complaints in the company’s entire eight-year history).

RULE #4. Only work with a debt settlement law firm under a licensed attorney instead of a non-attorney based company.

This is because attorney’s are governed by the BAR Association, not the FTC like non-attorney based companies. Pending FTC regulation is a threat to all non-attorney based comapnies, whereas law firms regulated by the BAR Association will not be affected by this future regulation. For this reason, you should only consider working with a legitimate debt settlement law firm to avoid future regulation affecting your financial future.

In 2009, the FTC began cracking down on the debt settlement industry due to the many unscrupulous, fly-by-night companies sprouting up in recent years who have taken advantage of consumers for quick profits.

Additionally, with an attorney representing you there are significant advantages in dealing with creditor calls or potential lawsuits far beyond that which a non-attorney based company. With a top debt settlement law firm you may often obtain better results, lower settlements and greater savings.

Make No Mistake, Debt Settlement *May* Be the Best Option For YOU (By Far), If You’re Facing Financial Hardship…

…But *only* if it’s a quality program that will work for you, in YOUR SPECIFIC SITUATION, and offered by a trusted representative of the small handful of reputable debt settlement companies.

Of course, receiving personal service and expert knowledge are also nice, especially in the sea of ignorance and desperation swarming the TV, radio and Internet these days..

REMEMBER: You Can Settle Credit Card Debt Yourself

While there are many benefits to having a professional negotiator or debt settlement lawyers do it for you, you can also settle credit card debt yourself.Being in the debt settlement industry myself for over seven years, working with most of the major players and watching bad companies come and go, I SAW THE NEED FOR THIS DEBT SETTLEMENT WARNING FIRST HAND.

My experiences not only inspired me to write this article, but has also driven me to spend the past two years developing and creating a financial education program to help people like you make your best choice, and avoid these costly mistakes and the devastating consequences that follow.

By: Jesse Niesen

Debt Settlement – How to Settle Credit Card Debt Legally and Ethically

admin — Wed, 14 Oct 2009 20:34:55 +0000

If your credit card debt is enormous, beyond your capabilities, you are likely to get frustrated. Bankruptcy looks like a straight and simple answer to all your questions and confusions. Either declare bankruptcy to avoid further harassment from the credit card companies and the collection agency or pay off the whole debt amount with nothing left to eat or to wear. Bankruptcy is no better than suicide. Don’t give up even in the worst circumstances, if you think carefully every coin has two faces, and the same is true for every situation. With some effort and research you can find a way out of the credit card debt also.

Debt settlement is a negotiation on the debt you owe to the creditor. You can try it on your own, give a call to your creditor and explain the situation. Make a commitment to pay if the debt amount is reduced. There is no harm in trying, who knows, the creditor might agree for a reduction and you gain back a debt free status. However there are equal chances of getting the request rejected. You might be a victim of circumstances and be refused of assistance in any form. You may then require a settlement company as an intermediate.

Debt settlement companies talk to the creditors on your behalf and try to negotiate the debt you owe. Before you start with a settlement program, make it a point to check if the company has legal rights to practice trade in your state.

The federal trade commission has found several debt settlement companies practicing illegal trade and canceled their license in the respective states. In fact these companies are not allowed to exist legally in states like Mississippi, Arizona, Georgia, Hawaii etc. The Attorney General’s Office is a relevant place to check this.

Trade Associations like United States Organization for Bankruptcy Alternatives and The Association of Settlement Companies list information about the settlement companies and whether their business is in adherence to industry standards.

Make sure the company shows in the Better Business Bureau website and carries a logo of BBB on its website; this is to confirm it is accredited by a reliable source.

Do not hesitate to confirm the officer handling your debt in a settlement program is certified by the International Association of Professional Debt Arbitration.

By: Aditya Nath

Credit Card Help – When to Consider Professional Help to Settle Your Credit Card Debt

admin — Tue, 21 Jul 2009 00:20:16 +0000

Have you forgotten what it means to have a peaceful sleep with sweet dreams each night? Do you constantly have debts on your mind? Well, don’t feel alone. There are thousands of people in the United States going through the exact dilemma. If you feel your debts have spiraled out of control and you can see no way out, breathe, and know, that there is help around the corner.

Filing for bankruptcy may seem like the best option at present, helping you avoid paying off your debts. Think again. If you do file for bankruptcy, this will tarnish your credit history and you will not be able to get credit in a hurry from any loan granting agency. So, why not consider professional help to settle your credit card debt?
Search the internet, speak to financial agencies, and take advice from friends and relatives to find professional help. There are hundreds of debt settlement agencies in the market, who can guide you step by step on eliminating your debts.

After you zero in on a legitimate and reputed settlement agency, work with them step by step. This company will deal with the bank or credit card company on your behalf. You will no longer be plagued by calls from the banks or collection agencies.

Debt settlement companies share a wonderful professional rapport with the banks and other institutions which will help you. They make the creditor understand that the customer is on the verge of filing bankruptcy, which means that the creditor could very well receive no payment at all. This makes the bank sit up, and decide on going ahead with a negotiation process. In the meanwhile, the debt settlement company will open a trust account for the customer. This is where you will need to save some money each month, while the negotiations are still underway. The debt settlement company will negotiate in its professional capacity to reduce your debt amount by almost fifty percent. You need to save up that amount in the trust fund, as they buy time for you to do this. So now you see why considering professional help to settle your credit card debt makes all the difference.

After negotiations, you merely have to pay up the amount in full, and get rid of your nightmares. You could use this route to eliminate all your credit card debts one by one, starting with the card which charges the highest amount of interest. So, start living a debt-free, happy life!

By: Sankalan Baidya

How to Make Credit Card Debt Settlement Yourself

admin — Tue, 17 Feb 2009 17:33:02 +0000

You may want to make credit card debt settlement yourself because you either do not trust the hundreds of credit card debt settlement agencies you see around or you cannot afford to pay the high fees they charge. What ever may be your reason, there is an answer for you. Read on to find out the major reasons why you must settle your credit card debt yourself and why you need one affordable solution.

The reason why you must do it yourself are numerous, including the following facts; You will be in total control of what credit card debt you want to settle and how much you want to pay for each. It is no more news that more and more creditors are refusing to work with debt settlement companies. Fees of credit card debt settlement agencies are constantly going up s and some charge high fees upfront. They falsely claim that they can dictate to the creditors sizable discounts on your debt. This is risky for you.

With these facts, you should be convinced why you must settle your credit card debt yourself. First, get a helpful low cost guide that gives you a genuine blue print of exactly want it takes to settle your credit card debt yourself. Once you get it, you should take appropriate measures to ensure that whatever guide you have to settle your credit card debt, it will not mislead you. Why not check up by typing the name of the guide+ scam or fraud on your favorite search engine. Asking in forums or getting a truthful testimonial will do. the advantage of this is that you do it professionally as well as avoiding high cost and risks involved with agencies.

By: Grace James

How to Definitely Settle Your Credit Card Debt

admin — Mon, 09 Feb 2009 09:50:02 +0000

Most people today are struggling to make ends meet and some have to resort to maxing out their credit cards just to do that. Hence, many people are now stuck with huge debts and unpaid balances. Debt settlement is one of the options you have when faced with overwhelming card debts. And there are many choices with which you can finally settle, or at the very least, reduce your credit card debt to a more manageable state.

You’ve probably heard of debt settlement companies who specialize in creating solutions on how to remedy your debt situation. But before you scan and surf the web for a company for some professional debt assistance, it is always best that you try to settle this matter yourself. Such move would give an impression that you are serious when it comes to your problem.

That said, if your debt is no longer within your control, then that’s the time you should call in the debt help experts. And here are some of the options you can exercise to reduce your debt.

The first and perhaps the most popular choice for settling credit card debts is by debt consolidation. Debt consolidation works best when you owe more than one credit card company. What happens is that you consolidate, or merge, all your balances and pay them all with one loan. This type of debt settlement eases the burden on your finances by cleaning all your debts and leaving you with one loan to take care of.

Another option is by applying for a lump sum settlement. With this option, a credit card company will ask you to pay 50-70% of the total amount and the rest of your balances will be forgiven. For instance, if you owe $10,000, and company asks you to pay a lump sum of 60%, all you have to pay in total is $6,000, with the remaining $4,000 forgiven. The catch with this form of debt settlement is that you have to raise and pay such amount within a given period. There is a relative difficulty of getting the amount, depending on the schedule and the availability of your financial sources.

These are just a couple of options a credit card debt assistance company may offer you. Of course, there are still some choices that would fit your financial profile and preference. It would be best that you really talk with your debt management expert about your options and explore your possibilities before you make a move.

By: Jiles Masson