Beware Debt Cancel Rotating Header Image

Debt

There is No Easy Way Out of Debt

If you are in debt, you are probably hoping that it will magically disappear. I hate to be the bearer of bad news, but that just isn’t going to happen. Forget your dreams about the lottery and the ads that tell you it can be quick and easy. It just doesn’t happen that way.

There are many companies out there just looking for consumers who are desperate to get out of debt. They promise to legally eliminate your debts, or even to cancel them. But they aren’t telling you the entire truth.

The ads promise to eliminate your credit card debt. Many say that they will help you fight the legality of your credit card debt for a fee, which is charged to your credit cards and then contested by the company.

The sales pitch will be excellent. The company tells you that there is a legal basis for how consumers can legally eliminate their debt. They even quote several laws, but the laws have nothing to do with rendering credit card debt illegal. Many companies will tell you that the credit card company’s contract with you isn’t legal. However, it is. The company is just trying to scam you.

Some companies promise to show you how to force your credit card company into legal arbitration in order to get your debt fully discharged. However, they will tell you to stop paying your debt in order to do this. By not paying your debt, you are ruining your credit history. You can forget about getting credit in the future. You may end up in arbitration or possibly court, but you will not win. You will pay back every cent of your debt, plus the default interest, the fees paid to the debt elimination company and the legal fees and court costs of the credit card company.

A few companies will prepare you a legal sounding document called a “Bond for Discharge of Debt.” They tell you that when the credit card receives this with your minimum payment, that they’ve agreed to eliminate your debt by cashing the payment. This is not true.

The companies that put forth these scams are after one thing — your money. They will charge you high fees and you will get nothing in return. In fact, you could destroy your credit and end up owing much more than you started with.

If you borrow money, you have to repay the money. No company can eliminate your debt. Your credit card debt is not illegal. Never respond to ads related to your debt. Legitimate debt management companies and counselors will not advertise this way. Always know exactly who you are doing business with before you hand over any money or personal information.

If you are in debt trouble, take the time to educate yourself on the proper way to manage and eliminate your debt. It isn’t quick and it does take some work, but once you start, you will be surprised at how it becomes a part of your daily routine. Debt management is an essential part of handling your finances in today’s world. Take the time to learn how to eliminate your debt wisely.

Martin Lukac http://www.MartinLukac.com , represents http://www.RateEmpire.com , an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com
philippines travel agency

Debt Settlement Process

Debt in general terms gives people and companies a nice opportunity to purchase things

that they wouldn’t be able to obtain otherwise.

A lot of companies consider loans as a means of increasing their investments and people use debt money to purchase cars, real estate and a lot of other things too costly to buy with cash.

And although many economists consider debt as a whole as a sign of a society being optimistic of its future earnings capacity – it is obvious that nobody likes to be in debt!

Nowadays many people easily get into a bad credit situation when they start living over the budget – don’t keep track of their income and expenditure. A variety of credit cards are being offered by different credit companies and there are always those who are lured by all the credit opportunities and may easily end up making lots of purchases on credit while making minimum payments on their cards. Then, all of a sudden they realize just how much they are in debt. When the situation is getting critical “Debt Settlement” may be the option to get out of a bad credit once and for all.

A “Debt Settlement” is an agreement concluded between a debtor and a creditor to fully satisfy a debt for a reduced payoff amount. A debt settlement agreement is achieved through debt negotiation process with a creditor in case when a debtor isn’t able to fully meet his/her debt obligations due to financial difficulties and attempts by the creditor to collect on the debt haven’t been successful. As a result, the creditor agrees to cancel part of the debt and accept the remaining sum as full repayment.

A lot of people are often asking: “Why would the creditor settle with me”? What’s his incentive?

The creditor’s primary motivation is to recover funds that would be lost otherwise if the debtor filed for bankruptcy. The other key motivation for the creditor is that he can recover even more funds this way than through other collection methods. Collection agencies and collection attorneys take commissions as high as 40% on recovered funds. Collection calls and lawsuits threats often push debtors into filing bankruptcy; in this case the creditor often recovers no funds at all.

People who use debt settlement services are those who are experiencing legitimate financial difficulties, cannot repay their debts through various debt management plans offered by consumer credit counseling agencies and who also aren’t willing to file bankruptcy. That is why, debt settlement programs can be viewed as a link between consumer credit counseling services and bankruptcy filing.

Debt settlement services are provided by third party debt resolution companies who set up payment plans, and then by means of debt negotiations with a creditor achieve a certain settlement amount to be paid by a customer. Most of debt settlement companies have rich experience in convincing creditors that this is their only chance to recover anything and that they won’t be able to collect anything from their client if they sue and even if they win in court.

Usually, debt settlement companies are able to cut the monthly payment contributions to approximately half of the typical monthly credit card payments, and get consumers debt free in a relatively short period of time.

Den Braun is an expert in finance. The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. Den Braun writes about <a href="http://www.debt-settlement.ws/” rel=”nofollow”> Debt settlement & debt negotiation and other related topics on the debt-settlement website.
To learn more about debt and finances in general, visit http://www.debt-settlement.ws

win back ex girlfriend

The Uniform Debt-management Services Act

New legislation targeting debt counseling and settlement services seeks to protect consumers from fraud. Industry and consumer groups have split opinions on the law’s usefulness.

Understanding the ins and outs of the Uniform Debt-Management Services Act (UDMSA) is like learning how to survive on twigs and berries when lost in the woods—undoubtedly useful expertise, but something you hope you’ll never need.

The UDMSA is legislation that covers debt settlement and credit counseling services, which helps people who may be in need of debt consolidation programs. Currently, these services are regulated at the state level, which means debt-ridden consumers in California who seek help are probably treated differently than their counterparts in Maine. It also means that there’s no national oversight of credit counselors, debt consolidation programs, and debt settlement companies. The National Conference of Commissioners on Uniform State Laws (NCCUSL) believes consumers stand to benefit from a more consistent approach to the regulation of these services. For this reason, the NCCUSL is asking state governments to adopt the UDMSA. Understanding UDMSA

The UDMSA has three main sections: registration, agreements, and enforcement. Provisions include:

Debt Consolidation: Just Another Scam?

You have probably heard so many bad reviews about debt consolidation programs that you think that debt consolidation agencies are nothing but groups trying to rip off customers who are in desperate need of fixing their debt problems. Sadly, there are many companies that can easily fall into this category but there are some others that do provide debt consolidation services and help people with their financial difficulties.

It can sometimes be very difficult to know which companies are legit and which are not. However, you will be able to find online reviews with plenty of information and links to different debt consolidation programs that have already been tested and proved to work seamlessly. Just search the net for debt consolidation and you will find plenty of information on these companies.

Prior to deciding which company is best for you, you need to understand how they work and what differences you can find between them. With all this information you will be able to make a conscious decision which is essential on matters of this importance. A debt consolidation program will affect your finances and your credit for a long time; choosing your debt consolidation program carefully is the smartest thing to do. What To Expect

When hiring a debt consolidation agency’s services you can expect them to ask you details on your debt, on your income, expenses, and other information regarding your financial and credit situation. They will probably provide you with a budget and a debt consolidation plan and ask you to authorize them to take control of certain aspects of your finances. You may be asked to close accounts, cancel credit cards, etc. All this is normal procedure if you want to reduce your debt and bring some ease to your financial situation.

They will also contact your creditors and negotiate with them new schedules for repaying your debt. This negotiation will eventually be finished and you will end up with new repayment programs with extended terms and lower monthly payments that you will be able to afford without difficulties. The Scam

Though there are some online companies which provide financial mediation and other services financial related that charge membership fees or administrative fees upfront, if a debt consolidation company that provides nothing but debt consolidation services asks for money upfront, you are facing a scam. The law prohibits these specific companies to charge money upfront unless they provide other services than debt consolidation and they can only charge money for those services. Any fee for debt negotiation or consolidation can be claimed only after the debt consolidation program has been executed successfully.

Also beware of those companies that ask you for one or two thousand dollars to pay for the costs of closing a consolidation loan deal for you. If there are any closing costs, they can always be included in the overall loan costs and be part of the loan installments. Just follow your instinct, paying to a lender to get approved for a loan makes no sense. If the company claims to be a lender and asks for money upfront, chances are that you are also facing a scam.

What Is The Better Option: Consolidation Or Negotiation Of Debt

Today, unfortunately, many people find themselves under debt and are struggling to find a way out of their situations. There is no shortage of plans and schemes out there offering a way out of debt. At this time, it should suffice to deal with two major approaches to solving your debt problems and alleviating your financial woes. The first one is debt consolidation while the second is called debt negotiation. Either may prove to be an effective means to remove the weight of your debt load.
Debt Consolidation
If you are considering debt consolidation, you have a few options available to you. Many credit card companies and creditors offer customizable debt repayment plans can consolidate all of the debt and put it under a single payment that has a lower interest rate. There are also debt consolidation companies that specialize in the area of debt assistance. If you apply with one of these services, all or most of your outstanding debts are consolidated into a single monthly payment. This payment is typically lower per month and is offered at a lower interest rate than most creditors will allow.
Since this payment will be at a better rate and cost than you would have paid to credit card companies, you will likely save money each month, which can then be applied to future payments to pay the debt off faster. The big plus that most people attach to debt consolidation plans is that you will be able to silence the voices of multiple creditors as long as you consistently pay the new arranged payment amount with the consolidation company or other provider.
One of the cons of using debt consolidation is that you will be required to cancel all of your current credit cards that are represented in the consolidation plan. There are also fees associated with the plan, such as administration fees, that will affect the amount going towards the actual payment of your debt. Many fees are set at flat rates or set rates for each representative creditor. Bear all of these factors in mind.
Debt Negotiation
Another term for debt negotiation is debt settlement. This is an option that is often related to debt consolidation because most of those who choose to negotiate or settle their debts have shown that they are unable to keep up with the monthly payment associated with a consolidation plan. The person who believes they will not be able to pay that minimum amount, may want to look into debt settlement options to reduce credit and debt issues.
It is an attractive option for many people who have serious debt loads because they can essentially stop paying their creditors if they’ve enrolled with a debt negotiate company. These companies represent the client and work to negotiate a settlement price to wipe out the debt with the creditor. Any payments you make to the debt negotiation company are saved in an account for future use to pay off the negotiated settlement. This is usually a one-time payment that clears the client’s debt load.
One notable drawback with these types of services is that your credit score is often lowered by association with the company for the duration of the relationship. Of course, to offset this, most of the settlement companies will have the creditors gather a new credit report that that notes the total payoff of debt. Furthermore, any other negative effects on your credit can be fixed by credit repair services many of which are offered by the debt negotiation companies.

Peter Kenny is a writer for The Thrifty Scot, please visit us at Debt Consolidation and Bad Credit Remortgage
Visit How secured loans can prove beneficial
frosted window film

Keep Bankruptcy as Far as Possible With Debt Consolidation

The bankruptcy menace is always latent for those who cannot control their debt. If your income to debt ratio is too low, any unexpected circumstance that worsens your financial situation can easily lead to default and eventually to bankruptcy. In order to avoid such a threat, you can always resort to debt consolidation.

Are your bills pilling up? Debt keeps accumulating? You can’t pay even the minimum payments on your credit cards? No one will lend you money due to your bad credit? You’ve entered what some consultants call the vicious circle of debt. Debt accumulates and due to interests and not enough income people can’t reimburse the money they owe and debt keeps growing more and more.

This is not an uncommon situation but it is really dangerous to your financial health and with luck, even if you can avoid bankruptcy you have at least two years ahead of you where you’ll have to fight to rebuild your credit score and improve your credit history. During this period, your ability to get finance will be considerably reduced. Debt Consolidation: Escaping The Vicious Circle

One way of interrupting this process of debt accumulation is to consolidate your debt. This can be achieved by negotiating directly with your creditors or by hiring the services of a debt consolidation agency. Depending of the expertise of the agent assigned to your case, you can get up to a 65% debt reduction under the right circumstances. However, unless the debt consolidation agency has special agreements with creditors, your credit score will be affected negatively if you choose to consolidate.

Nevertheless, if your debt has become unbearable, a reduction on your credit score due to undertaking a debt consolidation program is a price you’ll have to pay. After negotiating with your creditors you’ll end up with lower monthly payments, a considerable debt reduction and the peace of mind that comes with knowing that you are no longer at risk of loosing all your properties. Continued timely payments on your remaining debt will help you recover your credit score and achieve a good credit tag.

Sometimes, after debt negotiation or as an alternative to it, you can obtain a debt consolidation loan. Debt consolidation loans provide a considerable amount of money that has to be used to cancel outstanding debt. You get debt relief by obtaining lower monthly payments and a lower interest rate than the average of your previous debt and the lender in return makes sure he is your only creditor and will have priority when it comes to recovering his money.

If you choose not to resort to a debt consolidation loan you can also get a single monthly payment since most debt consolidation agencies, as part of the negotiation process, agree with the creditors that they will handle the payments on your behalf. Thus, you’ll pay each month a single amount to the debt consolidation agency which in turn will deliver the money to the creditors. If you choose to take advantage of these services, make sure you get the corresponding receipts that prove that payments where actually made in order to avoid missed payments from appearing in your credit report.

Devora Witts is a certified loan consultant with several years of experience in the credit area who instructs people regarding credit recovery and approval for personal loans, home loans, consolidation loans, car loans, student loans, unsecured loans and many other types of loans. If you want to understand <a href="http://www.badcreditloanservices.com/bad-credit-personal-loans.html” rel=”nofollow”>Guaranteed Bad Credit Loans and <a href="http://www.badcreditloanservices.com/unsecured-and-secured-credit-cards.html” rel=”nofollow”>Unsecured Credit Cards thoroughly you can visit her site http://www.badcreditloanservices.com
Heavy Metal Music and Bands

Debt Consolidation – Preventing Debt Problems at an Early Age

Why has ‘debt consolidation’ become such a common phrase nowadays? Unfortunately, the answer’s straightforward – it’s because debt has become a way of life for so many. It’s a sorry reality for even the youngest adults in our society, as illustrated in a recent publication from Rainer, the national charity for under-supported young people.

Published in May 2008, the report looks at credit, debt and other financial issues confronting today’s youngsters. It ‘picks apart some of these challenges and, drawing on the direct experience of the young people facing them, sets out the action required to overcome them’.

‘Unavoidable route into debt’Joyce Moseley, Rainer’s Chief Executive, talks of the ‘often unavoidable route into debt’. On Rainer’s behalf, research and consulting organisation YouGov found that 90% of the young people questioned were in debt by the age of 21. One in five 18-24 year-olds had already found themselves more than £10,000 in debt.

As they start their adult lives, most young people find themselves with very little disposable income anyway, so once debt repayments start taking a ‘slice’, it’s all too easy for their finances to deteriorate rapidly. This goes a long way towards explaining the popularity of debt consolidation loans among young people…

Consolidation – a route out of debt For many young borrowers, the most important benefit of debt consolidation is simply a reduction of monthly outgoings. Replacing multiple debts with a single consolidation loan gives them a chance to arrange affordable repayment terms. This can mean the debt will take longer to pay off – and possibly cost more in the long run – but cost less each month.

At the same time, a consolidation loan may well come with a lower interest rate than the debts they’re paying off, especially if they’re high-interest debts from (for example) credit cards, store cards and overdrafts.

Consolidating debt also makes it simpler to manage. Remembering one payment per month is much easier than remembering five. Lenders often issue penalty charges for late / missed payments, so a consolidation loan can actually help people keep their debts from growing.

Consolidation – do it the right way However, there are risks involved with debt consolidation. When someone pays off their debts (overdraft, credit / store cards, etc.), they have to be careful they don’t let these debts start growing again. In fact, it’s often a good idea to cancel cards and overdraft facilities, since it’s all too easy to borrow a bit here and a bit there until they’re in a worse situation than they were before they consolidated their debts – they’ll have to make payments to the consolidation loan every month as well as to the new debts they’ve run up!

Find out more about debt consolidation loans here, including advice on how to stay out of debt.
WP Autoblogging Plugin

Debt Consolidation – Preventing Debt Problems at an Early Age

Why has ‘debt consolidation’ become such a common phrase nowadays? Unfortunately, the answer’s straightforward – it’s because debt has become a way of life for so many. It’s a sorry reality for even the youngest adults in our society, as illustrated in a recent publication from Rainer, the national charity for under-supported young people.
Published in May 2008, the report looks at credit, debt and other financial issues confronting today’s youngsters. It ‘picks apart some of these challenges and, drawing on the direct experience of the young people facing them, sets out the action required to overcome them’.
‘Unavoidable route into debt’
Joyce Moseley, Rainer’s Chief Executive, talks of the ‘often unavoidable route into debt’. On Rainer’s behalf, research and consulting organisation YouGov found that 90% of the young people questioned were in debt by the age of 21. One in five 18-24 year-olds had already found themselves more than £10,000 in debt.
As they start their adult lives, most young people find themselves with very little disposable income anyway, so once debt repayments start taking a ‘slice’, it’s all too easy for their finances to deteriorate rapidly. This goes a long way towards explaining the popularity of debt consolidation loans among young people…
Consolidation – a route out of debt
For many young borrowers, the most important benefit of debt consolidation is simply a reduction of monthly outgoings. Replacing multiple debts with a single consolidation loan gives them a chance to arrange affordable repayment terms. This can mean the debt will take longer to pay off – and possibly cost more in the long run – but cost less each month.
At the same time, a consolidation loan may well come with a lower interest rate than the debts they’re paying off, especially if they’re high-interest debts from (for example) credit cards, store cards and overdrafts.
Consolidating debt also makes it simpler to manage. Remembering one payment per month is much easier than remembering five. Lenders often issue penalty charges for late / missed payments, so a consolidation loan can actually help people keep their debts from growing.
Consolidation – do it the right way
However, there are risks involved with debt consolidation. When someone pays off their debts (overdraft, credit / store cards, etc.), they have to be careful they don’t let these debts start growing again. In fact, it’s often a good idea to cancel cards and overdraft facilities, since it’s all too easy to borrow a bit here and a bit there until they’re in a worse situation than they were before they consolidated their debts – they’ll have to make payments to the consolidation loan every month as well as to the new debts they’ve run up!
Melanie Taylor is associated with Thinkmoney.com, delivering a comprehensive range of debt, loan & banking solutions. It defines its mission as ‘To educate, rehabilitate and advise on all aspects of financial management’. Think Money’s wide range of financial solutions means that you don’t need to shop around. One call puts you in touch with an expert who will find the right solution for you.

Facts to Consider About Debt Relief

Are you like the thousands of Americans who feel very overwhelmed by debt? Sometimes, relief seems like it is nowhere in sight. If you are looking for debt relief and would like to get out of debt, there are a few options to consider.
The process might seem complicated, but if you are dedicated at becoming debt free it can be very simple. It is possible to get the debt relief you need but it takes some time and patience on your end. Be prepared to budget your finances, keep track of what you’re spending and start saving money.
If you are looking for debt relief help there are a few things to consider. If you are a home owner, you can take out a Home Equity loan. The equity in your home can be used towards paying off any debts that carry a high interest.
A home equity loan is one that is secured, so you will be able to get reasonable interest rates on your loan. People who are looking to get out of debt, if they own a home they are very fortunate since the lower rates can help them to manage their debt.
Another option to consider is trying to renegotiate the terms of your credit line. By talking with creditors, you might just be able to work out a negotiation that is favorable for the both of you.
If you let them know what terms you are able to pay them on, they might be willing to lower them. It really is in their favor if they help you. If you have to file for bankruptcy, then they will never get paid for the account.
If possible, try to pay more than your minimum balance every month. This is the quickest form of debt relief, if your budget allows you to do so. By paying the minimum every month you will be in debt for years!
This will result in thousands of dollars in interest fees alone. If you can pay more each month, you will get out of debt faster and of course avoid paying extra in interest.
There is credit counseling available for people who need it. Consider working with a debt settlement or debt consolidation company. Debt consolidation is when the company you are working with will arrange for you to have one, lower monthly payment based on a lower interest rate. You do have to cancel all accounts with your credit companies.
Debt settlement is usually considered by people who feel that the consolidating is not right for them. If you are unable make your minimum payments to the debt consolidation program, then negotiating those debts is usually the next step.
If you decide to use a business to help with your debt relief, then make sure you do the research. Find out if there are any complaints and make sure you are dealing with a reputable company.
Know up front how much they will be charging. The quotes will be free (or they should be) from these companies, but it will cost you something to have them work to settle your debts.
Just do your research, know what the company is providing and what they will do for you. Get it all in writing, and get started on finding the debt relief you deserve.

Christina Costa, a freelance writer, recommends eQuoteGrabber.com for debt relief where you can receive help with all of your personal debt settlement needs in seconds! Visit http://www.eQuoteGrabber.com
stained glass window film

How to Avoid Debt While Using Credit Cards

There is no doubt that credit cards are very useful for paying for goods and services. They are safe, convenient and it means you don’t have to carry large sums of money around in your pocket. Carrying large sums of money can be very risky because if your money is lost or stolen, it is gone forever. Whereas with a credit card, you can just report it missing it will be immediately cancelled and a new one will be in the post the next day. Of course buying online with a credit card is the most popular, easiest way to buy goods and you have the protection of your credit card company.

However, if misused, credit cards can lead to debt and financial destruction. It is far too easy to spend money you do not own and before you know it, you can’t afford to pay back what you owe and get into financial difficulty. The simple fact is that if you borrow money, you must pay it back – and with interest. There is no such thing as free cash. If you don’t take immediate action then things can spiral out of our control which can be devastating.

If you in the situation that you have spent too much money and are in financial difficulty then it is time to stop using your credit card and re-access your financial position. You may need to change your lifestyle spending habits and make cut backs in order to clear your debts. Change your way of thinking – there is a way out of debt but you will need to make changes.

You must first recognize that you actually have a debt problem. You cannot attempt to sort out your finances unless you admit there is a problem and face up to your debts.

You then need to assess exactly how much it is that you owe. So many people do not actually know how much they owe. This maybe that they have so many debts that they can’t keep track of them all. By checking your credit card balances you will know exactly how much you owe and what interest you are paying. You should always aim to pay at least the minimum payment of your credit card bill. If you don’t do this it will affect your credit score rating.

When you are in the position of knowing how much you owe then develop and plan of how to pay the debt off. Do not just carry on paying the minimum interest repayment; it will take years to pay off your debt if you do this. A popular option is debt consolidation whereby you put all of your debts into one which organize your repayments into one affordable payment. Another option is to transfer your balance to a lower interest rate credit card, or even one that offers 0% balance transfer.

Only you can make the changes necessary to get out of debt and this must be done sooner rather than later, before things get too bad.

The author has several years experience in the finance industry. For more great tips on how to avoid debt and for help and advice to solve all of your debt problems go to Me Debt Free
Powered by Yahoo! Answers