credit card debt consolidation services

Why is it that people are very scared of running into debt problems today? Is it because unsecured lenders are charging high interest rates? That cannot be the reason because unsecured loans have always been very expensive loans. Is it because debt collection agents are being very harsh and strict in demanding regular repayments? Again, that cannot be the case because that has always been a notable feature of collection.

The primary reason why people are worried of debt problems all the time is because of the drastic reduction in the income of the families. The recession has led to high unemployment. Further, it has led to drastic reduction in demand for goods and services.

This has brought down the profits earned by various business and institutions. The end result is that the average monthly income of the average American has come down drastically.

With less income to utilize, there always is a fear that the finely balanced monthly budget will go awry if any sudden financial emergency strikes. That is the reason why medical debt causes such a huge problem. When people find it difficult to pay the deductible on time, where is the question of repaying another $2000 to $3000 over and above the payout made by the insurance policy?

If you have adequate income in your house, then you can confidently take on the task of repayment of medical debts. On the other hand, if you do not earn lot of money or if your spouse has lost his or her job and the entire establishment is running on your salary alone, then you should make use of various debt relief options.

It does not hurt to know more about the debt relief, does it? You can learn more about debt settlement on the World Wide Web.

Debt settlement has the potential of bringing your debts down by 50% to 70%. You will have to repay the balance amount owed over a period of 24 – 36 months. On the other hand, debt consolidation involves taking a single big loan to repay all your existing unsecured loans, medical debts included. The biggest advantage here is that high interest charging loan can be replaced by a single low interest charging loan.

Other remedies include getting in touch with the lender and requesting a deferment of the installment payment. Or, in case of medical institutions, you can ask for installment facility to repay the debts over a long period of time.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called “Free Debt Relief Networks” that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms.

erase credit card debt

Debt relief needs to be tailored to meet the requirements of the debtor. There are many solutions being offered for eliminating Credit card debt. What ever the solution being adopted, it needs to be seen if it makes financial sense. Let us take a look at the various solutions available and their financial implications.

Debt counseling is a way of managing the debt in a better fashion. You can get it reorganized at a new rate of interest that could be much lesser than earlier. However it could also mean that you will be paying back the debt in a longer time frame. Thus you are not only paying back the debt in more time but are also paying more money in the longer run.

Most users who are struggling to keep their head above the water would prefer to clear their debt rather than prolong it any longer. This requires them to use special methods to get rid of the debt in half the time. One such solution is debt settlement. In a settlement you negotiate the total amount of debt with the creditors. If your debt is more than $10.000 you are eligible for a debt settlement.

The creditors have to be fully convinced that your only option is bankruptcy. Offering you a settlement does not make financial sense in the short term to the creditors. They will have to waive a large part of your debt. However, if you consider the possibility of the creditor filing for bankruptcy, debt settlements make a good choice for the creditor as well. For the debtor in any case it is a good choice since the overall amount of debt is cut down to as less as 50%. The debtor has to arrange to make a one time payment to the creditors.

The only place where the debtor looses is his credit score. There will be a temporary damage to the credit score which will take 1 to 2 years to be undone.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.

credit card debt consolidation services

Negotiating a debt settlement with the creditors is one of the preferred methods of debt relief in these times of recession. However negotiating a settlement is a difficult art and requires professional help. You can either speak to the creditors on your own or go through a debt settlement company.

Although settlements have become popular instruments of debt relief it may take a lot of cajoling and convincing your creditors to make them agree for a settlement. The process will usually consist of two parts. First is the making sure that you are eligible for a debt settlement. The second part is negotiating an actual deal in your favor with maximum benefit.

The Credit card company needs to be fully convinced that you have no other means of clearing the debt than bankruptcy or a debt settlement. Let us take the case of Laura who had three Credit cards. She had piled up a debt of $12,000 on one Credit card. She was careful with the other two cards and collected a debt of $1000 on the other card and remain current with the third card. There was no amount due on the third card. When she asked for a debt settlement for her first card, naturally, the Credit card company objected. Their point of view is that if Laura could find money to pay for the other two cards she had adequate money to pay for the third as well. Thus you have to fully convince the creditors that there is no option open to you and you are heading the bankruptcy way.

The next part is the negotiation of the total amount of money to be paid. Here the settlement company that you hire needs to act tough and ask for at least 50 percent waiver of your outstanding amount. You can offer a percentage of the savings as fee to your settlement company. This will act as an incentive for them to obtain waiver on the maximum amount. You can also offer a cash bonus it the amount waived is more than 50 percent.

So, broker the most beneficial deal for your debt.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.

credit debt counceling

Life in the US revolves around Credit cards. Most people would find it quite impossible to survive without them. Most of the users also do not make timely repayments finding themselves deep in debt. Thereafter they are struggling for debt relief.

Let us take a case study of two users, Victor and Michael. Victor has accumulated a debt of $10,000. He has been using his Credit card for the last four years. After loosing his job Victor has not been able to pay his bills. He would prefer to go in for a reduction of his debt if it is possible. He would prefer to eliminate the debt entirely since he does not have a regular income anymore. Oh the other hand Michael has a steady job that pays him less but pays him regularly. Michael has almost maxed his three Credit cards. He has collected a debt of $11,000 and is not sure how to eliminate it. The high rate of interest of his cards has made the payment of monthly bills near impossible. He would prefer to cut down on his monthly pay out and does not mind making small payments for a longer period.

Here are two cases that sort of require opposite treatment. Victor needs to go in for a debt settlement. He does not have a regular income and can not pay monthly installments for long. Once a settlement is negotiated the debt is likely to be reduced to $5000. Victor can pay this amount using his saving or going in for a fresh loan.
Michael needs to go in for a consolidation exercise. He is assured of a monthly income although relatively less in quantum. He needs to get his rate of interest reduced. He can put all his debt under one head and go in for a reduction of interest. He could also spread his repayment over a longer period. Thus consolidation will help him in this critical situation.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.

consolidated credit debt

Most people are casual about clearing their Credit card bills leading to such massive debts that they require special means of debt relief. Once the user is swamped with Credit card debt he has to look for ways and means of clearing his debt. There are many options open to Credit card users to clear their debt. Debt settlements are said to be one of the best options. Let us take a look at the process that takes place before a settlement.

Debt settlement is one method that is being said to be the most preferred method to clear debt. This concept is relatively new in the Credit card industry. The creditors and debtors agree for an out of court settlement to clear the dues of the debtor. The negotiations are held with the aim of reaching a settlement amount that is acceptable to both the parties.

The debtor has to give a written request to negotiate the debt. The creditors will take stock of the debtor’s record before arriving at a decision. The following factors will be borne in mind before deciding to go in for the settlement:

• How old is the account?
• What is the net outstanding amount? For a settlement the debt has to be more than $10,000.
• What is the record of payment of the debtor? This gives an indication of the finances of the debtor.
• When was the last repayment done?
• Are there any other Credit cards where the debtor has paid monthly installments recently?

Based on the answers to these questions the company decides to offer a debt settlement to the user. The user could be asked pay up part of the debt in lump sum and the balance is written off by the company. However if the company is convinced that the user has other means of income and does not need a settlement it may not agree for the same.

So go ahead and look for a debt settlement in your favor.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.

credit card debt settlements

I would say the new year has a lot of cheer to offer to you. Take advantage of the downturn in the economy and recession to your advantage.

You may think I am crazy. Though it sounds crazy yet it is true. You can take advantage of the recession and the stimulus money and get rid of your debt. Read on to know how. Let us commence by taking a look at the various options for debt relief available to you. Broadly speaking these options can be divided into three categories, Bankruptcy, Debt settlement, and Debt Consolidation. Each has its own nuances and plus and minus points.

Tracy has been having three Credit cards. She has about 2 to 3 thousand rupees of debt on each card. She pays an interest of 12.5%, 14% and 16% on each of these cards. She makes monthly payments on different days of the month. She is finding it very difficult to keep a track of her monthly payments.
Jim has a debt of more than $12,000. He does not have a regular source of income. The surmounting rates of interest have been killing him. Half of his debt consists of interest and late fees. He needs to get rid of his debt very soon.

Taking Tracy’s case first if we analyze it we can see that she needs to consolidate her debt. Making three different payments itself is unmanageable. She needs to transfer her entire debt to the Credit card with 12.5% rate of interest. This will also cut down on her interest costs.

In the case of Jim he can either go in for a debt settlement or bankruptcy. If he goes in for a debt settlement he can get the entire debt knocked off in one go. Bankruptcy will involve a drop in his credit score and it will take him almost a decade to recover. Thus debt settlement is the best option in this case.
These are some takes on debt relief solutions. You decide what is best for you.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.

credit debt collectors

The recession has brought in a new set of dynamics in the game of debt relief. What you need to understand is the recession has hurt the power brokers and the financial institutions more than the Credit card users.

Debt has always moved in a concentric circle of borrowing. Credit card users keep utilizing their credit limits. They spend more than what they can pay back. Since they can not pay back the entire amount they opt to pay only the minimum amount each month. Interest charges start piling up from the very first day and finally become a mountain. Credit card users borrow from other sources and go in for a balance transfer. This vicious cycle of debt would go on for ever and the creditors made a pile of money.

What went wrong with the recession that most Credit card users lost their regular source of income. With no income coming in most debtors started heading the bankruptcy way. Just imagine 80% Credit card users filing for bankruptcy. This meant the Creditors will get nothing from 80% of the users. With this scenario there was a serious threat of the economy breaking down completely.

The US government decided to introduce a stimulus package to boost the financial institutions and prevent them from breaking down. Part of this stimulus money is being utilized by the Credit card companies to offer debt settlements to the users.

An out of court settlement is negotiated with the user. The user is offered a waiver of up to 50 percent of the net outstanding amount. In exchange he is to pay the balance 50 percent in one go. Thus the users get to eliminate their debt legally and creditors are also happy to recover some amount from the debtors. This is how you can benefit from the stimulus money.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.

credit debt counselling

There can never be a common solution to all the problems. For each case of debt the peculiarities are different. You need to examine the peculiarities and decide a custom made solution in each case.

In a debt consolidation you go in to put all the debt under one head. Bruce has three Credit cards with different rates of interest. His rate of interest on American Express is the least at 12%. He needs to go in for debt consolidation and put all his debt under the American Express credit card. This will make sure that he has only one monthly payment to make. He will also save a lot of money on rates of interest.

Bankruptcy and settlement are options for those who are deep in debt and can not eliminate their debt by any other means. One of the basic requirements to qualify for debt settlement is you need to have more than $10,000 in unsecured debt. Bankruptcy is an official procedure to get over debt. It is a legal process and may take almost 6 months or more for the proceedings. Let us compare both the methods:

• You need to qualify for both the methods.
• Bankruptcy is a legal procedure where as a settlement is an out of court settlement.
• All types of debt are not discharged by bankruptcy. All types of unsecured debt can be discharged by using a debt settlement.
• Your credit score gets severely hammered by bankruptcy, where as a relatively lesser damage is done by a debt settlement. Conversely it takes about 1 to 2 years to recover from the effects of debt settlement and 7 to 8 years or may be even more to recover from the effects of bankruptcy.
• Some states may not have any exemptions in bankruptcy. In that case you can even loose your house in case of bankruptcy.

Each case of debt relief needs to be considered on its own merits and demerits. Choose the solution that suits you the best.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.

legally eliminate credit card debt

There are many ways of obtaining debt relief. An online search for debt relief will land you with a few hundred pages. You will not know hoe to narrow down the search. Bye the ways most of the results that you have obtained by your Google search could be scams. So how do we draw the dividing line between the good companies and the scams?

There are many ways to set apart a genuine debt settlement company from the run of mill companies. Take a look at the vital stats of the company to get a sure fix solution to the problem. You first need to learn how to distinguish a good company from the others.

Here are a few tips to indicate to you the characteristics of a good and legitimate debt settlement companies. Look for these points in the company you will be selecting:

• Look for affiliation with a network. A good debt settlement company will always be associated with a debt settlement network.
• Check out the Better Business Bureau in your state.
• See the client list of the company. This will also show you how old the company is. As a thumb rule do hot select any company that is less than 3 years old.
• Ask the company if they are willing to give any guarantee.
• Never depend on verbal promises. Always ask for a written contract. The terms and conditions must be vetted by you.
• Bargain and obtain a good deal for the fees being charged. Some companies may ask for a percentage of the money saved. You can negotiate this.
• Never pay without the results being delivered.

By following these guidelines you can select a good company and obtain debt relief.

eliminating credit card debt

Most people who are down with Credit card debt have been searching for debt relief. It is not surprising that this disease has affected the students too. Most students have been hit by Credit card debt.

One of the first steps in fighting debt is to go through a counseling session. Many non profit organizations run debt counseling sessions. What you may not know that the counseling agencies act as an interface between you and the creditors. They will help you to get over your inhibitions and get the best deal for you. So be frank and forthright when you go in for debt counseling.

Take the case of John, a civil engineer. He has been out of job for more than a year since the recession. He is finding it very difficult to handle his debt. After great difficulty he has found a new job that pays him okay. But he is on probation for the first six months. It is only after six months that he will be getting his enhanced salary. So how does John manage his debt for the next six months? The interest charges will pile up out of proportion till then. John is looking for an interest free period for the next six months in exchange for regular repayments thereafter. However he is apprehensive in asking the creditors to do so.

The counseling session is here to help John. The counselors will negotiate with the creditors and secure an interest free period for the next six months. They will also fix up regular repayment thereafter. This was one question that John was always afraid of asking. Debt counseling has come to his rescue. You too could benefit from debt counseling.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.