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Debt Negotiation Can Equal Debt Reduction And Canceled

Are you faced with an ever increasing amount of personal or business debt with no end in sight?

Bankruptcy is an option but it is not one to be taken lightly. The best option is to first look into some type of debt negotiation to drastically reduce and even cancel some of your debt.

Did you even know there was a process to eliminate your credit card obligation with self-negotiation? Being financially free by using self-negotiation will seem daunting and difficult because it requires that you work through the process. Thankfully, the procedure for financial relief can be simplified by finding someone or some organization to guide you through the process. One step in the process is to contact your creditors and credit card companies to explain that you are facing significant hardship and are unable to pay. You need them to restructure, eliminate or reduce your debt load in order to avoid bankruptcy. This can be done via a certified letter so that you have proof it was sent and received.

Why would they agree to this?

If you are forced to file for bankruptcy you unfortunately will completely liquidate your obligations to them and so they will receive no money at all. It is better for them to settle for 50% or even 30% of the balance that you owe. It is best to provide as much information about your current situation as possible. They need to understand the seriousness of your current situation and that you are not simply trying to get out of your responsibility to repay your debts. Complete elimination of your debts is what many people try to aim for but is usually not possible. The typical reduction is by 50 or 60 percent.

Where can I turn for help?

Debt Canceled and other web sites can provide information and sample letters to use to contact your creditors and begin the process of debt relief that you are looking for.  You will find a number of companies that will try to charge large fees to guide you through the process.  Unfortunately, many of these companies are not very good at what they do.  They can ruin your credit rating and end up adding to your actual debt load with their fees and the additional late fees generated by your creditors.

Who can I trust?

The recent credit crisis has really opened up the floodgates with many new companies trying to profit from the painful debt loads that many individuals and businesses are facing.  It can be overwhelming trying to figure out who you can turn to and who you can trust.

It is important to really do your homework and research the available options.  You want references from people that the company has already helped.  It’s important to actually call and talk to these people and find out specific details good and bad as far as what they went through.  The time to find out that a company is not as good as you had hoped before you sign a contract with them and not after.

Don’t wait until your credit is damaged beyond repair or until you can no longer make even the minimum payments to take action.  Start the debt negotiation process as soon as you realize you’re at a point that your debt is beyond your control.

Eliminate Debt, Watch Out for Scams

Millions of people search for help with eliminating their debt problems online. However, research into many of the websites aimed at “helping” people with their debt shows that many of these sites are actually misinformed, misleading, or outright scams. Read on to find out some of the things to avoid when you are searching for help with eliminating your debt.
The number one outright scams on the web right now when it comes to debt help are sites claiming that you can “legally” cancel your debt. These sites claim that you can get out of paying anything at all. Most of these websites use twisted logic and conspiracy theories to justify their methods. Of course, this sounds too good to be true because it is. These sites are simply outright lies.
Another problem those seeking help will run into is companies using misleading advertising. These companies are not generally outright scams or rip offs, but they can be very misleading. For example, many debt settlement companies advertise under “debt consolidation,” but a debt settlement program is not really consolidation at all! Furthermore, many debt settlement companies do not fully inform customers what exactly they are getting into.
There is one fairly common tactic used in debt elimination scams that is probably the most trouble of all: seemingly legitimate companies advertising seemingly legitimate services, while actually ripping customers off. This is by far the largest problem when it comes to getting help with eliminating debt online. Not only do they fool unsuspecting companies, but they cause the general public to become untrusting of the honest, legitimate companies who do provide helpful services to customers who need help in eliminating their debt.
While it is important to use extreme caution when searching for legitimate help with your debt, do not be discouraged by the unscrupulous companies online. There are still many companies who provide valuable, helpful services and give honest advice to consumers who are in need of help. The important thing is to learn how to sepArate the legitimate companies from the shady ones.
The first thing you should always do before working with a company is do your research. Learn a little about the company. Call and speak to an employee and ask a lot of questions. Make sure the organization does not have a poor record with the Better Business Bureau.
Finally, make sure that you use a little common sense. If something sounds too good to be true, it probably is, so ask a lot of questions. Proceed carefully, and you may find the help you need to eliminate your debt once and for all.

M. Carter is an accredited credit counselor and has been helping people eliminate debt for over 15 years. Be sure to check out his site to learn more about how you can get out of debt without getting scammed.
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Top Tips For Managing Your Debts

Having financial problems? Follow our simple tips to manage your debt now.

Recently the credit crunch has never been out of the news, and rising domestic bills are putting more and more pressure on household finances. It’s not all doom and gloom though, there are a number of way in which you can take control of your debts and effectively manage your money in the future:

1.        Control Your Credit Cards – If you owe a lot of money on one or more credit cards then it’s a good idea to tryand reduce the amount of interest you’re paying each month. You can do this by looking for a card with a 0% balance transfer rate. If you choose to go down this route it’s vital that you cut up and cancel your old cards as soon as possible in order to remove the temptation to start spending on them again, which will only lead to a vicious circle of debt.

2.        Don’t Keep Borrowing – With consumer credit so readily available it can be tempting to borrow a little bit extra from another source to help pay off your existing debts. This is one of the worst things you can do and while it may work as a quick fix, it invariably leads to long term financial headaches and problems trying to keep up with the interest and loan repayments.

3.        Take Responsibility –   Burying your head in the sand and hoping your debt problems will disappear on their own will only make matters worse. Open every piece of mail you receive and if you are not able to pay that particular bill then call the company directly or ask Debt1.co.uk to do it for you to explain your situation to them rather than waiting for them to start chasing you. With over 14 million UK households relying on their overdrafts to get by each month, you’re not alone and your creditors will usually try to deal with your situation sympathetically.

4.        Review Your Monthly Outgoings – Regardless of your current level of debt, it pays to have a thorough review of your personal finances every so often to keep track of what’s coming in and out and establish where you can make savings. Shopping around every time you buy a product or service can save you a considerable sum of money over the course of a year and often you can find things cheaper online than in the shops.

5.        Seek Professional Advice – Living with spiralling debt can be extremely stressful and it may often seem like there’s no way out. There are a number of options specifically designed to help people become debt free such as debt consolidation, debt management plans and Individual Voluntary Arrangements (IVA’s).

Here at Debt1.co.uk our expert advisors can talk you through all of your available options to find out which one is best suited to your own circumstances.

Give us a call now on 0800 043 4747 to find out if we can help you take control of your debts. Chris Pracy is Marketing Manager for Accuma Group Plc. Chris manages a number of debt management and debt advice related websites including www.debtsolver.co.uk and www.debt1.co.uk

Steve Lawton is IT Support Manager for Accuma Group Plc. Steve manages a number of debt management and debt advice related websites including www.debtsolver.co.uk , www.simpleiva.com and www.debt1.co.uk
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Choosing the Correct Debt Management Service For You

When going about choosing a debt managment service, there are probably several different questions that might be running through your mind as you endeavour to get on top of your finances. If you’re able to see past the fear of being in debt, then the questions you should be asking yourself are, which companies are not scams? How much are the fees? Are there hidden costs? How do I check out the authenticity of a debt management company? Can I cancel at any time and what will my payments be? What if I can’t pay?
Here are a few tips on how you can help keep yourself from being scammed and paying too much.
First and foremost, you should look to find any charities or government organsisations that offer debt advice for free. For example in the UK, The Citizens Advice Bureau [CAB] would be a good port of call. The CAB offers a phone, online and a drop-in service. The CAB is manned with helpful staff who will do what they can to advise you on your best course of action.
You can find details of the CAB in your local telephone book as well as other companies that can help you with your debt. Put together a list of potential companies that you might do business with. From here, use the internet. Type the name of the company in and look at the results. You should also look into the FCC and the BBB to see if the companies are legitimate, non-profit and complaints that have been filed against them. If you do not have the internet, the public library usually has internet connections available to the public. You may have to join the library though or take some ID with you. Check some of the consumer websites in your country and find out what others are saying about local or national debt management companies.
Debt management is not binding as is filing a bankruptcy notice. At any time you can discontinue the agreement and begin to work on your debt without any assistance. However, when you do agree begin working with a debt management company, they will begin by doing a few things for you. First, they will call your creditors and notify them of your financial hardship. From here, they will make arrangements to pay a smaller amount of money. Usually, he or she will ask for a smaller interest rate or even remove the interest rate altogether. It should be noted that the debt management company will most likely only deal with your non-priority debts. Also, most debt management companies do not give benefits advice or financial advice so you may lose out on important information about your finances. If you’re fortunate enough to have a family member or a close friend who is a financial adviser then seek their advice as soon as possible.
In most situations the creditors prefer to work with the debt management companies, simply because they are more apt to make the payments on time every month. They are also more willing to lower your payments when you are working with a debt management company.
After the debt management company has completed the negotiations with your creditors, they will then give you a new monthly amount to pay. This will be a lower single payment each month. This payment goes directly to the debt management company. Usually, they require a certified check or to have an automatic withdrawal out of your bank account.

Alexander West holds the Financial Planning Certificate. One of his passions is learning and teaching people about finances. You can read the rest of this article, and join others and join others getting on top of their finances at Click Here
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Debt Consolidation Loans: Paying it All With One

The dream of anyone who is buried in debt is to get rid of all those bills and credit card balances. However, though debt can not magically disappear, you can improve your situation by obtaining a consolidation loan, repaying all your debt and ending up with a single lower monthly payment easily afforded that can save you money and hassles.

The idea is simple, you get a single loan for a fair amount with which you repay all your outstanding debt and obtain all the benefits associated with this procedure. Not only the process is simple but also the requirements needed to get approved for a debt consolidation loan are definitely easy to achieve.

Benefits Of Debt Consolidation Loans

Debt consolidation loans can easily reduce the number of payments you have to do each month. Since the money obtained from a debt consolidation loan is used for repaying all your outstanding debt, then, the only debt left is the consolidation loan which implies a single lower monthly payment each month instead of the multiple payments that you had before which combined were surely a lot more expensive.

The interest rate charged for the money you will owe on your consolidation loan will be significantly lower than the overall average rate charged for your credit card balance payments, cash advance payments, unsecured personal loan payments, etc. Thus, the resulting monthly installments will be significantly lower.

In the long run, a lower interest rate reduces the overall interests paid for your debt. Thus, by consolidating, you will be saving thousands of dollars over the whole life of the loan. If you destine these savings to repaying your debt, you can get debt-free sooner and with less hassles than if you decided to repay your debt as it was.

Requirements And Approval

The approval process for debt consolidation loans is fairly simple. You just need to fill some online forms as most lenders have online sites featuring their financial products. After you submit your application, it will be considered and in a matter of minutes, a response will be sent to you as to whether you have been pre-qualified.

Then, you will be required to submit some documentation backing up your application statements like copies of your pay checks, tax receipts, etc. With this documentation the final loan review will take place and you will be contacted as soon as the loan has been approved. The money will be then made available either in cash or by depositing it into your bank account.

However, if you work with a consolidation agency, they will retain the amount and proceed to cancel all your outstanding debt with it. This is due to the fact that consolidation agencies want to make sure that the money is used for the purpose it was intended to and not for incurring on other expenses.

As to the requirements, you need to have a fair credit and income. Some credit delinquencies can be overlooked but the income requirement is essential. You need to prove that you will be able to meet the monthly payments on your consolidation loan without sacrifices. Moreover, in most cases, to get a low interest rate on your consolidation loan you will need to have equity available on your home in order to secure the loan.

Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about <a href="http://www.speedybadcreditloans.com/christmas-loans-for-people-with-poor-credit.html” rel=”nofollow”>Fast Christmas Loans and <a href="http://www.speedybadcreditloans.com/bad-credit-personal-loans.html” rel=”nofollow”>Loans for Bad Credit you can visit her site http://www.speedybadcreditloans.com/
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Credit Card Debt Solutions

Most people have credit card debt for one simple reason: they spend more than they earn. However, there are other reasons why you might have credit card debt, such as a medical emergency, a one-time emergency expense, rising costs, or impulse control. No matter how you got into debt, there’s a solution. Review the situations below to find the right credit card debt solutions for you.

Overspending

If you spend more than you earn, the first step is discovering why. It could be because your mortgage has recently shot up, leaving you with little money for other expenses. It could also be because you make a lot of impulse purchases on your credit card. If you have high fixed costs, you should consider scaling back on luxuries like cable television, movie rentals, and eating out.

If you spend too much because you like to buy stuff, then you need to learn to ask yourself if it’s something you really need. Wait two weeks before making any purchase. Chances are you won’t really want it anymore. Once you control your spending, you’ll have an easier time paying off credit card debt.

Large One-Time Expenses

If you have credit card debt because of a large one-time emergency like car repairs, your first goal is to pay off that bill as quickly as you can by reducing spending in other areas. Once that’s done, use the extra money to build an emergency fund. Tap the fund for true emergencies, like car repairs or emergency room visits, so you don’t have to go into debt again.

Extended Medical Emergency or Illness

If your family is experiencing a major medical emergency or long-term illness, sometimes credit card debt is the only way to get by, especially if the primary earner is the one who is sick. In this case, your best bet is to negotiate with the doctor or hospital to reduce the medical bills. If the bills are more than you can ever reasonably pay, you may have to consider bankruptcy. Medical bills are the reason for 50% of all bankruptcy filings.

Extended Job Loss or Other Financial Hardship

Many people find themselves relying on credit cards to pay basic expenses after they lose their jobs. If you’re one of them, your first step should be to reduce every possible expense. Cancel cable, cut back on clothing and food purchases, don’t take vacations, do whatever it takes to cut your spending. If you have student loans, apply for forbearance. If you have a mortgage, find out if your lender can also extend a temporary forbearance. If you still can’t pay off your credit cards, consider contacting a credit counseling service for help. They’ll review your finances and may recommend a debt management plan, debt negotiation, or bankruptcy.

Once you get back on your feet, dedicate as much money as you can to debt repayment. You should also establish an emergency fund and continue to spend wisely so that you never find yourself deep in debt again.

For more articles visit: http://www.bills.com/credit-card-debt-solutions/

Justin has 5 years of experience as financial adviser; his key areas are consolidation, debt relief, mortgages etc. For more free articles and advice visit http://www.Bills.com.
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Debt Consolidation- Is it Right for You?

As the bills continue to pile up, and money seems to run thin you don’t know what to do. Being in debt can be frustrating and overwhelming. Sometimes it feels like it will never end, and getting out of debt on your own is very challenging. Creditors and collectors make it difficult to get out of debt. They want you to be in debt, because that’s how they make their money. However you don’t have to do it alone, there are options on how to get out of debt.

Debt consolidation is a great way to customize your payment options. By using debt consolidation, which is done through a third party, you are taken out of direct contact with the creditors and collectors. Debt consolidation combines all your debt in one monthly bill. The debt consolidation organization takes over the payments from your creditors, and you pay one monthly payment of an agreed amount to the debt consolidation organization. Most credit card companies prefer working with debt consolidators because they are more confident that they will get their money back. By using a debt consolidator you take yourself out of the heated and stressful situation.

You will be required to cancel your credit card accounts, this is highly beneficial since you will be forced to change your spending habits. This will make it easier for you to watch where your money goes and you will be focused on buying only what you need. You will be able to drop the mentality about paying it off later.

You can’t let debt consume your life. You have to be able to ask for help, because sometimes you just can’t do it alone. Asking for help is most important step. Not only do debt consolidation organizations help you to reduce your debt, but they can give life altering information on how to budget for your lifestyle, and money saving tips. Most debt consolidation organizations are non-profit and are only there to assist you in time of financial difficulty.

Debt consolidation is not for everyone, however it is an option that works for many. When one becomes serious about getting out of debt, they should sit down and clearly write out all the solutions that could help get them out of their debt solution and pick the one that fits best for them. As well, there’s always the option of calling upon a credit counselor that is trusted and have them suggest some options to getting out of debt. These are only suggestions, so it doesn’t hurt to continue to do researh to help you in your steps to over coming your debt.

Understanding Debt Management Services

When some people become overwhelmed with debt and find it hard to pay their bills, they often turn to a debt management service. These services can often be found through credit counselors, and you should only use a service that you’re comfortable with. This service should be more concerned with helping you than with making a profit.

What Do Debt Management Services Do?

The debt management service transfers payments from their clients to the creditors. In return, they may take out a commission from the transfer or will receive fees from the lenders. While debt management services may work with a wide variety of different loans, they usually focus on debt that is unsecured. They are different from credit counseling services. Those with auto loans or mortgages are usually not referred to debt management companies.

Consolidation of Your Debts

Many debt management services offer debt consolidation loans. All of your bills and outstanding debts are combined into one bill. Once this has been done, it is up to the debtor to make the monthly payments on the loan. If the debt management service reduces the interest or balances on your loans, this can effect your credit. Many lenders will view you as being a high risk client when looking at extending future credit. Despite this, the effect on your credit is less than things such as continuous late payments. A debt management service is also an excellent alternative to filing for bankruptcy.

What’s In It For Them?

It is common for debt management companies to earn up to 10% of the money transferred from their clients to the creditors. This along with the fees paid to the debt management companies from the creditor can lead to very large profits. As can be expected, some companies will try to abuse their power by persuading clients to sign up for a service which is driven by profits instead of helping them manage their debts.

Save Some Pennies For Those Rainy Days

Because many people find it hard to adapt to a debt management service, emergencies may come up where money is needed. It is important to find out what will happen if you miss payments before you commit to using the service. Each company is different, and some companies may have large penalty fees for customers who don’t make their payments on time. With the rise of debt management services, people have often been advised to look for institutions that are non-profit. The idea was that organizations for profit would focus more on profits than with helping clients manage their debts.

Profit or Non Profit?

Despite this, many debt management services that are for profit will advertise themselves as being non-profit. Using a non-profit organization doesn’t guarantee you will get better service than you would from a for profit organization. It is best to use services that are accredited with the National Foundation for Credit Counseling. Accredited services are not likely to charge outrageous fees or attempt to take advantage of their clients. Before you look at a debt management service, you should call your creditors to see if they can lower your interest rate.

Getting a Cheaper Rate

Many credit card companies will lower your interest if you call them and inquire about it. It may also be possible to use a standard lender as opposed to a debt management service. Under some circumstances it may be necessary to file for bankruptcy. You could also get an unsecured loan to pay off all your debts if your credit is good.

You should also be wary of debt management services which are late making your payments. If this occurs you should immediately call them and get an explanation. Your credit can be damaged if they make your payments late, and if they are charging you high fees you should cancel their service and look at other options.

Joseph Kenny writes for the Personal Loans Store and offer more information on debt consolidation loans and other loan topics available on site.
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Debt Consolidation in the Perspective of Debt Negotiation

Debt consolidation versus debt negotiation are two options that are available to you if you need debt assistance. When your monthly bills become too much for you to handle, it makes sense to use debt consolidation or debt negotiation for solving debt and credit problems.

Debt Consolidation

Debt consolidation services have prearranged debt repayment plans with most credit card and collection companies. When you sign up with a debt consolidation company you are offered a lower overall monthly payment based on a lower interest rate they have arranged with the creditor.

This payment is lower than what the credit card companies offer you, saves you money every month and is often the best way to consolidate debt.
One benefit of a debt consolidation repayment plan is it will stop you from getting harassed by your creditors as long as you make the new, lower monthly payments.

The downside of the debt consolidation repayment plan is that you have to cancel all credit cards that you include in the plan. You are also charged your first payment you make toward the program and an additional monthly administration fee. This administration fee ranges from flat fees of $10-$50, while others charge a $5 fee for each creditor. That means you’ll pay about $30 a month that doesn’t go to paying off your debts.

The debt consolidation program benefits you if you have high interest rates or have higher credit card bills than you can manage. Some people like to make only one payment to one company for all of their debts.

Debt Negotiation

Is sometimes referred to as debt settlement. This is most often offered to people who can’t handle a debt consolidation program. If you can’t make the minimum payments of a repayment plan or haven’t made payments in the past 3 months, a debt negotiation program is the next step for solving debt and credit problems.

One benefit of a this program is you stop making payments to your creditors. The debt negotiation company either takes monthly payments from you and keeps it in an account, or lets you keep the money in your own account.

While you are making these monthly payments to the debt negotiation company, they negotiate with your creditors for a lower payoff of around 40-50% of your total amount of debt. Once the negotiated settlement is agreed upon with your creditors, the debt negotiation company makes a one time payment to them.

A downside of this program is, it lowers your credit score for as long as you are in the program. However, most debt negotiation companies require the creditor make the credit report show paid in full so it doesn’t show up as a negative on your report once your account is settled.

Some debt negotiation companies include a credit repair service that will remove the negative items caused by the debt negotiation program. You pay for this service as part of their program.

Now that you have an idea what debt consolidation versus debt negotiation is choose which one will work best for solving debt and credit problems for you.

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