Tag Archives: debt relief - Page 2

Don’t Fall Victim to Debt Relief Scams

Posted by on July 30, 2010 Comments Off

For many consumers drowning in debt, finding a debt-eliminating solution is a priority. While many television commercials and Internet advertisements claim to help people fix or repair their credit, how can customers be sure they are working with a legitimate agency?

Falling victim to companies with less-than-honorable intentions, many consumers, seeking debt relief help, have actually had their credit worsen and have been scammed out of thousands of dollars. As with any purchase, investment or service, consumers need to be aware of debt relief scams and choose their credit-rebuilding agencies carefully; always remembering to perform thorough research on the company.

Legitimate debt help is available to all consumers. Help can either be in the form of informative, consumer-directed articles and advice, or by means of visiting a non-profit consumer credit counseling agency. The first option is the least expensive and allows consumers to try to improve their credit standings on their own. Advice on debt reduction, interest rate negotiation, and pay-off plans is designed to help consumers inventory, manage and eventually eliminate their outstanding debts.

Not-for-profit, consumer credit counseling agencies do require fees for services. Different from those usually involved in debt relief scam operations, fees will be smaller and the company will have a positive rating with your city’s local Better Business Bureau. Appointments will usually be made in person and the agency will have a long-term, established reputation within your city’s business community. A free or low-cost consultation will usually be provided to see if the agency can help you or if you would be better suited to visit a bankruptcy attorney. If the agency is able to help, a contract may need to be signed; outlying the agency’s fees, assistance provided and consumer expectations. Be sure to read everything in great detail and if unsure of any terms or conditions, consult with a qualified third party before turning over any payments or personal information.

Once you have decided the debt relief agency and yourself are a good fit; always maintain a proactive and involved approach. When advice is given; follow through with it to help your credit improve as scheduled. If payments are made directly to the debt agency, make sure creditors are receiving their payments on-time, as the number one scam of many so-called, “debt relief agencies” is to pocket people’s payments; intended to go towards their bills. Adhere to the discussed time frame with scheduled payments and your debt will be eliminated by caring, legitimate professionals.

How to Successfully Negotiate your Debt

Posted by on June 24, 2010 Comments Off

Credit card debt is a problem that many of us face. It can also be a hindrance from making financial progress, building wealth and making investments. Debt negotiation is a method that may help you overcome your debt. The main purpose of credit card issuers is to make a profit. When you are unable to make your payments, and file for bankruptcy, the creditors have to forgive all your debt. The creditors would rather get less of a payment from you, than make a complete loss. They do this by adjusting the payments you are required to make.

To successfully negotiate your credit card debt for better payment terms, the first step is to call up the credit card company, and let them know that you are unable to keep up with paying debts with your current situation. It is very likely that they will be willing to negotiate your debt with you so that although they won’t get a complete payment from you, they would get some of it compared to nothing. Better payment terms may include waiving or lowering interest rates, late fees, or other penalties. If you feel that you are unable to do this effectively you can use a debt negotiation service to do all the work for you. However, it is important to know that this option isn’t cheap.

Another option is negotiate a debt settlement. To do this you need to convince them that you have exhausted all your resources, and are on the verge of filing bankruptcy, unless they are willing to settle your debt. This means you pay them a fixed amount that both parties negotiate and agree to. However, with a settlement, you are required to pay a lump sum upfront so you would need to have this amount on hand. Also, the debt that is forgiven is legally considered a regular income so it is taxed. Also, it largely affects your credit score.

So negotiating better payment terms is often a better option. To successfully negotiate your debt for better payment terms, it is important to convince the issuers that you are desperate and really want to improve your situation.

When filing bankruptcy is your only option

Posted by on June 17, 2010 Comments Off

If your financial situation has become so serious that you cannot possibly get out of debt then it is time to think about filing for bankruptcy. It is important that you have tried every other option before you consider bankruptcy because it will stay on your credit record for at least 7 years and will impact on your ability to be approved for any financial products during this time. However, if you have reached this situation it is time to learn how to file bankruptcy so that you are prepared for the process.

The first step that most people take is to hire a bankruptcy attorney. They are specialists in the field because they know all about how bankruptcy works and can help you with your claim so that it stands the best chance of being approved. They will help you decide which chapter of bankruptcy that you will need to file and once this is decided you will be briefed about what documentation is required from you and be taken through the application process. Although hiring a lawyer is not a cheap option, it is a popular choice because if you try to do-it-yourself and make a mistake with your application which causes it to be rejected a 180 day exclusion period applies.

The next step is to make sure that you complete all the required forms and have provided copies of all the required documentation to go with your claim. Once you have done this the lawyer will check that everything is in order. Once the claim in submitted a decision will be made within six weeks. You will be notified of the success of your application and be made aware of any special conditions at this time.

Getting into serious financial trouble can be the cause of a great deal of stress, especially if the creditors don’t stop calling. Although bankruptcy isn’t an option that should be taken lightly, it is the best option in many cases.