Credit Card Applications

Let us help you find your new credit card.

Posts Tagged debt settlement

Debt Settlement Good or Bad Versus Other Options.

Nov 5

Posted by John Ames in Credit Repair | Comments off

There are two types of bankruptcies that most consumers file. A chapter 7 or a chapter 13.

A chapter 7 is the wipe out that most people associate with filing a personal BK. The laws changed in 2005 and it is now more difficult to qualify.

A chapter 13 is a 3-5 year repayment plan where the courts will determine how much you can pay (based on a calculated discretionary income) YOU MAY HAVE TO PAY OFF ALL OF YOUR DEBT. Only save interest and late fees.

Debt Consolidation is a program where you make one monthly payment to a company and they disburse it to your creditors. They typically lower your interest rate and the program is for an average of 7 years. “” Approximately 75% of the people who enter these type of programs never complete them. The companies who set you up in these programs earn most of their fees from the CREDIT CARD COMPANIES.

Your third option is Debt Settlement. Most companies are charging you a total cost of over 65% with no legal fees included. Click on the link and go to FAQ (Frequently Asked Questions) to fully understand why they are charging outrageous fees with no legal representation. There is one program out there, which is directly with an attorney with a total cost of 55% which also includes legal fees and court appearances as required.

Bankruptcy obviously has the worst effect on your credit. It will appear on your credit report for 8 to 10 years. Debt Consolidation is also a black mark on your credit due to the fact you could not fulfill your original contractual agreement. With Debt Settlement your credit score will decrease significantly in the short term (As you will pay the Attorney instead of your creditors). Once your accounts are settled or eliminated your scores will increase. Restoring or cleaning your credit is fairly simple once your accounts are closed. Most companies do not offer this service with the settlement. WHY NOT ?

John Ames is founder and president of legally settle debt. He has an MBA in Finance and over 30 years experience in Finance, Financial Planning, Debt Settlement and Credit Repair. Legal Debt Settlement

Tags: , , ,

Six Essential Facts you must Know About Debt Management Plans

Oct 24

Posted by Janet Fisher in Credit Cards | Comments off

The unpaid bills and hectoring calls have brought you to the end of your rope and you don’t know where to turn for help. You may wish to take those liabilities and find a company which will help you put them under a debt management plan. Here is some information about the process for you to see if this type of plan is something you need and can stick with.

1. Collect all your bureaucracy and bills in one place. It is important to know the big picture of what you actually owe and might consider putting into a debt management plan. It may be an uncongenial task to see the particular total but it is an essential place to begin. You cannot make a successful journey if you do not know where you are starting.

2. Choose a company to help understand your fiscal situation. Pick a company that has a debt management program as one of their options. Some firms can reduce your debts by 50-60%. Ask about their average reduction.

3. Next is the conversation. Do not be humiliated by sharing the financial situation you’ve found yourself in. You’re not the first to have gotten behind in paying debts and not the first to even be considering the drastic step of bankruptcy. This is the time to take a step towards a solution.

4. Follow through with the action plan to unravel your debt problems. This can suggest that you make one payment a month to the company and they negotiate with your lenders and pay them. It’d be a relief to have the situation under this sort of control. No more badgering calls or threatening letters. If you ever have extra money to pay, you’ll be out of debt even faster.

5. There will be a fee for the organization’s services in negotiating the reduction of your balances and a new payment schedule. The financial company knows how the medical billers and credit card corporations work. If you need legal advice, it would be best to contact an attorney.

6. Eventually , you’ll want to do everything possible to stay with the new plan. If you find that you have some extra money, send it in and you’ll be out of debt even quicker. The majority of the time you can clear the debt through one of these programs in merely a matter of months.

It is up to you to make that initial step of taking a realistic look at what you owe, choosing a provider and a program that is your kind of thing and can be customized to your present position, and then following through with one regular payment. In a few months you should be breathing simpler and enjoying your life again thanks to a debt management plan. It’s time to start and the sooner you start, the sooner you and your family will be debt-free.

Debt settlement is a first-rate opportunity!Before filing for bankruptcy, go to Arc Financial, we have the experience negotiating with creditors and get more information on what is a debt settlement strategy today!

Tags: , , , , , , , , ,

Debt Solutions – Take Advantage of These Proven Solutions to Become Debt Free

Sep 3

Posted by Cindy Steele in Credit | No Comments

Debt has a way of creeping up on us, sometimes unexpectedly. More people than ever are finding themselves slipping behind as the economy slows. It’s easy to feel desperate and out of control. Finding a solution to overwhelming debt will help put you back in control of your life. Credit counseling, debt consolidation, and debt settlement are all good options for getting back on top of your finances. Filing bankruptcy may also be an option but should be considered as a last resort.

Bankruptcy may seem like a quick, easy solution, but the backlash will impact your life and credit for years to come. The first course action should always be debt consolidation and/or debt settlement. These solutions will help you structure your debt into a manageable one that you can pay down without the long term handicap that follows those who file bankruptcy.

You will receive expert financial advice and guidance from credit counseling or a debt consolidation service. They may assist you in handling multiple credit balances by approaching the credit card companies for you and making arrangements on your behalf that will make it easier for you to pay down your balances and get out of debt. There are a couple of ways these services can help you.

A debt consolidation company can negotiate with the credit card companies to have your interest rate lowered so that your debt will not continue to mount. They also often work as a middle man with the credit card companies for payment purposes. Instead of paying each credit card company every month, you make one payment directly to the service. They handle payment to the credit card companies.

Debt consolidation services are able to work much more easily with credit card companies than you could as an individual because they have developed an ongoing relationship. They have experience and know how the credit card companies work and what they are willing to do.

A debt settlement service is another good option to consider. They work a little differently than a debt consolidation service in that they work with the credit card companies to reduce your credit card balance. If you owe a credit card company $10,000, for example, they may be able to get it lowered to $7,000 and have the additional $3,000 forgiven.

The remaining $8,000 will be forgiven, or written off by the creditors. The reason a creditor will be willing to do this is because they realize that if they do not, in many cases the consumer that owes them the money may go into default or file for bankruptcy. In either case the creditor will get nothing. So basically in this scenario, getting something is better than getting nothing.

The two solutions outlined above are your best options for handling your debt load when it has become unmanageable. When you seek out a business that specializes in debt settlement or debt counseling, make sure you choose a company with a solid reputation. This can be done on your own, but you often have much better success when working with an experience professional.

It’s also a good idea to check out any debt solutions company with the Better Business Bureau or another organization in your community that can provide background information and reviews of a business. When you are working with a debt counseling service, do not hesitate to ask questions. Make sure you understand what is being done for you and what your obligations will be.

If your debt is quickly becoming unaffordable then take back control with these debt solutions that have brought debt relief to millions when you visit www.debtconsolidationhelpquote.com.

Tags: , , , , , , ,

Credit Relief – Discover How to Become Debt Free

Aug 26

Posted by Seth Bullock in Credit | No Comments

by Morgan Hamilton

Credit relief organizations have begun to spring up all over the country as financial difficulties affect more and more Americans. There are now more than 1,000 such companies that specialize in debt management and as many as 500,000 people who are seeking their advice and assistance in managing their personal debt.

In many cases people really don’t know what their options are. When we talk about seeking credit relief we can basically break it down into the most popular forms which are credit counseling and debt consolidation (the two terms have basically become synonymous) and debt settlement. Let us take a closer look at these two forms of credit relief down further as we explain how they work.

With credit counseling and debt consolidation the person in debt works with a company that negotiates with their creditors on their behalf in order to get their interest rates lowered, thereby making the payments more affordable. The consumer makes a single monthly payment to the debt consolidation company who then distributes payments to each of the creditors according to the amount agreed upon.

This option will usually take 4 to 5 years to completely pay off the debt depending on how much the individual can afford to pay each month. There may be some negative marks on the credit history of the consumer but they will be erased in short time. The credit reporting agencies see that the individual is working with the creditors that they owe in a responsible manner and therefore do not levy any serious negative marks on their credit history.

Debt settlement however, works in a completely different manner. With debt settlement the borrower agrees to pay a percentage of the total amount that is owed to the lender and the remainder of the amount is forgiven. So for instance, if you owe $30,000 to a creditor that you can no longer afford to repay it is possible to negotiate that amount down to $20,000.

The reason that a lender or creditor would accept debt settlement as a debt solution is because they realize in many cases that getting something is better than getting nothing. Oftentimes finding effective debt solutions will keep an individual from filing for bankruptcy or defaulting on the money that they owe. Debt settlement will however negatively impact your credit rating and will remain as a negative mark on your credit history for many years to come.

In either case when seeking debt solutions be sure that you thoroughly check into the companies that you are considering doing business with. You can begin your search on the Internet and contact the companies that you feel may be a good fit for your financial situation. Write down any questions you may have in advance so that you will not forget to ask them. If you feel that your questions are not being answered fully or that the company is not completely forthcoming then eliminate that company from consideration.

You will then want to inquire with the Better Business Bureau (BBB) and other consumer protection organizations to make sure that the company has no outstanding complaints against it and that it is indeed a reputable organization. Credit relief is within your reach so by all means become proactive and seek out the best solutions available to you to help you become debt free.

About the Author:
Explore your options for credit relief through debt consolidation and debt settlement. Find out the choices you have to help you become debt free when you visit www.debtconsolidationhelpquote.com.

Tags: , , , , , , ,

Understanding Debt Settlement Information

Aug 22

Posted by Chris Blanchet in Credit | No Comments

by Chris Blanchet

When folks are heavily indebted to credit card companies and find they are unable to repay their entire debt, they will often seek debt settlement information as this not only provides an alternative to bankruptcy but can provide debt relief.

Debt Settlement Explained

Typically in debt settlement, the credit card company or collection agency will reduce the balance owing and the borrower will repay this amount (usually 35-50% of the original amount) instead of the original balance. Upon acceptance of the settlement, the borrowers will either have to provide a full payment up-front or will need to make regular monthly payments, much like a debt management system, to the creditor.

Debt Settlement Costs

Some companies who will negotiate on the part of the borrower will often charge a fee for their service. Some will charge up-front, some will include their fee in the monthly payment schedule, and others will take a lump sum only once the settlement has been approved by the creditor. Ideally, borrowers should look at companies who charge only a percent (20% is viewed as acceptable) of the reduced amount. So, if an individual has debt of $50,000 and the debt settlement company agrees to reduce the debt by $25,000, the borrower should pay $5,000.

Debt Management

Insofar as debt management is concerned, debt settlement is not a recommended debt management tactic. The reasons are abundant, namely that borrowers will suffer from reduced credit scores and settlement will only address credit card balances, not student loans, car loans or mortgages. With only credit cards eligible, borrowers are usually only addressing part of their debt problems, not the whole picture.

Tax Implications

When digging through debt settlement information, borrowers who decide to take this avenue should understand that there are tax implications to debt settlement. The bottom line here is that creditors will issue a 1099-C that the borrower will include when they file their taxes. The amount included as taxable income is the amount that the creditor agreed to reduce. As such, debt settlement may not be as attractive as bankruptcy options.

It should come as no surprise that there is an abundance of debt settlement information out there, especially now with the economic situation being what it is. In a few instances where credit card debt is the only (or almost only) type of debt, debt settlement makes sense. But as a debt management strategy, settlement is not all that great.

About the Author:
With more than 16 years of financial services experience, Chris has provided thousands of people with debt settlement information. His blog about debt management can be found at HowToRepayDebt(dot)com.

Tags: , , , , , , ,