Debt Settlement Blog

Debt Relief Solutions, News and Advice for Saving Money
January 13, 2011

How Debt Settlement Impacts Credit

Author: admin - Categories: Debt Articles, Debt Relief Tips

Unfortunately there are a lot of myths about debt settlement and debt relief in general.  Many consumers have indicated concerns regarding debt settlement programs damaging credit.  In most cases people who complete debt settlement programs are behind on their credit card payments and typically their credit scores are already low.  Sometimes getting a mortgage refinance for bad credit is not a viable option. However, there are people with good credit scores that are considering debt relief services.

The Motley Fool published an interesting post below:

Question: How will my credit be affected if I enter into debt settlement program? -Elijah, Hattiesburg, Miss.

Answer: Let’s start with the basics of this oft-asked question. When you attempt to arrange a debt settlement, you are asking your creditors to take less than you owe them. Typically, they will only do this if they are uncertain about your ability to pay what you actually owe. In their view, getting something is better than nothing. The companies that charge big bucks to settle your debts can further this uncertainty by collecting money from you and paying NOTHING to your creditors for several months. They may see the payment you make to them as their fee while you are thinking they’re aggressively making progress on your debt. So, you must tread carefully there, and do your homework.

There can be downsides to credit card debt settlement and you hit the nail on the head in terms of this path negatively impacting your credit report and score. Ultimately, these debts will be noted as “settled-in-full” on your credit report, indicating that you settled the account for less than what you owed. For the next 10 years lenders will see those notations and definitely consider that information as they decide on interest rates to charge you should they decide to lend you money at all.  Another debt relief option to consider would be contacting a credit counselor through the National Foundation for Credit Counseling at www.nfcc.org. They will work with you to right your financial ship and, if needed, will help you implement a debt management plan. Read the original Motley Fool article.

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August 26, 2010

Credit Card Debt Declines to 8 Year Low

Author: admin - Categories: Credit Card News, Debt Articles, Debt Relief Articles - Tags: ,

Credit card debt has been a significant problem for millions of Americans.  The amount consumers owed on their credit cards in this year’s second quarter dropped to the lowest level in more than eight years as cardholders continued to pay off balances in the uncertain economy. The average combined debt for bank-issued credit cards like those with a MasterCard or Visa logo – fell to $4,951 in the three months ended June 30, down more than 13 % from $5,719 in the same period a year ago, according to Trans Union.  The credit reporting agency said it was the first three-month period during which card debt fell below $5,000 since the first quarter of 2002.  In years past homeowners would take out a second mortgage for credit consolidation, but now those types of loan programs are no longer available.  Secure debt consolidation loans, like 2nd mortgages are difficult to find without owning a home and having a lot of home equity.

Negotiate Credit Card Debt and Save!

Credit card debt remained the highest in Alaska, but slid 7 % there to $7,148. A total of 22 states recorded debt higher than the national average.  Residents of Alabama paid off the most debt, dropping their average balance by 27 % to $4,753.  More borrowers also made payments on time. The rate of cardholders past due by 90 days or more fell to 0.92 % in the second quarter, from 1.17 % last year.

That’s the first time the delinquency rate has been below 1 % since the second quarter of 2007, before the recession, said Ezra Becker, director of consulting and strategy in Trans Union’s financial services unit. The rate fluctuates during the year, he said, but the improvement is more evidence that consumers are working to make sure their credit cards remain in good standing.  That concern reflects several economic factors, from the fear of unemployment to the fact that the collapsed housing market means it’s harder to cash in on home equity when money gets tight. “You can’t buy groceries with your house anymore,” Becker said.

Reflecting the weak economies in the states hardest hit by the housing crisis, the delinquency rate was highest in Nevada, at 1.5 % of cardholders, followed by Florida, 1.24 %, Arizona, 1.11 % and California, 1.08 %. In all, 16 states fared worse than the national average for delinquencies.

The lowest delinquency rates remained in North Dakota, at 0.54 %, and South Dakota, at 0.55 %.  In a twist, Becker said the foreclosure crisis could be helping to improve the timeliness of credit card payments and lower balances. When people don’t make mortgage loan payments, he suggested, they have a short-term cash boost. “That can provide extra money to pay down credit cards,” he said.  Besides paying off and refinancing debt, consumers are getting fewer new cards. Nationwide, the number of new accounts opened dropped almost 6.5 % from last year.  Trans Union predicts that the national delinquency rate will remain below 1 % for the rest of the year. However, on the high end, the Nevada rate is forecast to edge up to 1.6 %.  See the original article online

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August 9, 2010

New Debt Settlement Rules

Author: admin - Categories: Debt Relief Articles, Debt Settlement News, Debt Video

FTC to Limit Debt Settlement Companies

Debt settlement firms saw the Federal Trade Commission step in make some significant changes to the debt relief industry.  For the first time, the FTC has promised to impose new regulations that will prohibit most for-profit debt relief companies from charging a fee before they have reduced a client’s unsecured debts.   The FTC says the new debt settlement program with the new rules will take effect Oct. 27.  The new FTC law will prevent consumers from paying large up-front fees for debt settlement and debt negotiations that are not fulfilled. They do not limit the size of fees, only their timing. They do not regulate bad credit mortgage loans.

Will the New Debt Settlement Rules Kill the Debt Relief Industry?

The debt settlement industry says the rules will force most debt relief firms out of business because it will take at least a year to collect any fees.  “There are not a lot of debt settlement companies that can afford to spend month after month after month servicing clients without any money coming in,” says David Leuthold, executive director of the Association of Settlement Companies.

In a typical credit card debt settlement contract, the consumer stops paying his unsecured debts, such as credit card and medical bills, and starts putting money into a savings account that he controls. When there is enough funds in the account to settle one debt, typically after a year or more, the company negotiates with that creditor to accept less than the amount owed. This continues until all debts are settled, which in most cases takes eighteen months to three years.   Today, most debt settlement companies charge clients a percentage of the debt they bring into the contract; 15 % to 20 % is common. Some demand the entire fee up front; others spread it over the first half of the contract period. If the client drops out before completion, and most do, he is out the fee and often deeper in debt.   Instead of charging in advance, a few companies charge a portion of the debt reduced, typically 10% to 50%.

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July 12, 2010

Debt Management Versus Debt Settlement

Author: admin - Categories: Debt Management, Debt Relief Articles, Debt Relief Tips, Debt Settlement News - Tags: , ,

Both debt settlement and debt management offer significant financial benefits to consumers seeking debt relief solutions.  Debt management makes sense to consumers who are concerned with damaging their credit report now.  Sometimes a mortgage for debt consolidation is unrealistic because of credit scores and hom eownership status. Like consumer credit counseling, debt management is the process of renegotiating the interest rates of credit cards and unsecured debt.  On the other hand, debt settlement is the process of negotiating the payoff for credit cards and unsecured debt.  Typically credit card debt settlement will take 12 to 24 months whereas debt management will likely take 36 to 48 months.

Most debt management programs are not for profit companies that appoint a certified counselor to evaluate your income, expenses and debts.  After assessing your debt to income ratio, the counselor will offer a solution to lower your monthly expenses for credit cards.  Keep in mind that your creditors must agree to lowering the interest rate on your credit cards for debt management to work.

Watch Video Debt Management vs. Settlement

Consider debt settlement programs if you want a quick resolution than debt management programs offer.  If you set up a debt settlement plan, then you will make payments monthly into an escrow account set up by the debt settlement company until enough money is deposited into your account to negotiate a settlement with your creditors.

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May 19, 2010

Senate Approves No Cost Credit Score Rule

Author: admin - Categories: Consumer Credit, Credit Card News, Credit Reports

The U.S. Senate voted to adopt a new amendment that would extend consumers free access to their credit scores.  However the no cost access to credit is only granted in certain situations.  The credit report outlines the record of paying on mortgage loans, credit cards and additional debt.  Sen. Mark Udall (D-Colo.) sponsored the rule and added more legislation establishing new regulations on Wall Street financial firms, which the Senate is currently debating. It would allow consumers to obtain their credit scores for no charge from the three major credit repositories, Equifax, Experian and Trans Union, but only if the credit scores were used to make a decision that caused them to be rejected in a hiring decision.  If a consumer is turned away for credit for consolidating debt or refinancing loans the lender is not required to issue a free credit report. Are you looking for a “no credit mortgage”?

At this time, consumers are entitled to obtain free copies of their credit report once a year from each of the three major credit reporting companies – Equifax, Experian and Transunion. However, those reports only contain the details of the consumer’s credit history.  To obtain their credit scores – which are what lenders use in making determinations of whether to extend credit and what interest rates to charge – consumers currently must pay a fee.   More and more, credit scores are being used not only by mortgage lenders in deciding whether to extend credit, but in other ways as well. Employers are increasingly looking to credit scores in making hiring decisions, assuming that a higher score is an indication of how well a job candidate manages his or her personal life, and thereby is a reflection of character.  It is not sure how this new legislation will impact credit repair industry.

The rule would require that consumers automatically be given their credit score if they are turned down for a loan or purchase, pay a higher interest rate on a loan or receive unfavorable terms on a credit card, or are not hired for a job due to their credit rating.  “For too long, consumers have been at a disadvantage because banks and home loan lenders use these credit scores against them while they have no idea what their actual score is,” Sen. Udall said. “A person’s credit score affects the terms of home loan terms, their ability to buy a car, rent an apartment or set up a new utility account. It’s simply not fair for lenders to have access to a consumer’s all-important credit score without the consumer being given free access to it.”  The original article was written by:Kirk Haverkamp.

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May 10, 2010

Controversial Debt Settlement Bill

Author: admin - Categories: Consumer Credit, Credit Card News, Credit Card Settlement, Debt Articles, Debt Relief Tips, Debt Settlement News - Tags: ,

Washington appears to be going for the throat of the the debt settlement industry. On Wednesday, U.S. Senators Chuck Schumer, D-N.Y., and Claire McCaskill, D-Mo., introduced the “Debt Settlement Consumer Protection Act,” which would limit the fees that debt settlement firms can charge and mandate written disclosures before services are performed, including the right to cancel for a full refund.  Unlike a refinance mortgage, enrollment in a debt settlement program usually involves making payments into an account administered by the firm, which uses some of the money for fees but also to negotiate with creditors and settle credit card debt when the account has enough funds for an offer. Meanwhile, many debt relief companies advise consumers to stop paying their creditors to make the lenders desperate even for a partial payment.  They do this because that is what the credit card companies need to even consider a debt negotiation.

Bank Rate Debt Adviser Steve Bucci mentioned in his column, that consumers will hurt their credit score. While that is true, he may be overlooking the fact that most of these people do not have the ability to pay back their credit card companies with their present income.  It is also important to note that credit counseling and bankruptcy also damage the consumer’s credit scores.  According to debt relief advisor, Jeff Morris, “Getting more credit is not the top priority for a struggling American who are buried in credit card debt.”  Morris continued, “There is plenty of time to implement some credit repair programs after the person eliminates their credit card debt.”

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Debt Settlement vs Consolidation Loan

Author: admin - Categories: Credit Card Settlement, Debt Articles, Debt Relief Articles, Debt Relief Tips, Debt Solutions - Tags: ,

eHow published an article recently that compared debt settlement to debt consolidation.  In years past many finance advisers would recommend debt consolidation to homeowners because they could take out a second mortgage to consolidate debt and debt settlement to non-homeowners because they were not eligible for secure home equity loans because they had no real estate to be used as collateral.

Here are the 3 steps that eHow reccomends when comparing a consolidation loan to a debt settlement program.
1. Compare the short-term advantages of each debt solution option.
2. Compare the long-term benefits of each debt relief solution option.
3. Determine which debt solution is best for you. Which program do you qualify for? Which one offers the best overall benefits? Which one can you afford?  Do you want to settle credit card debt?

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April 14, 2010

Tips for Credit Card Debt Settlement

Author: admin - Categories: Consumer Credit, Debt Articles, Debt Relief Tips, Debt Settlement News, Second mortgage

Is your credit card debt is rising, but you are still unable to stop using your credit cards. Millions of Americans have become dependent on credit cards for buying products on a whim.  But, if you find yourself buried in credit card debt, you must purchasing with your credit cards and consider debt settlement or a debt loan that consolidates the high interest accounts into a simple interest loan that is more affordable.

1. Do you qualify for a debt consolidation loan?  Do own a home, have really good credit scores and enough home equity to qualify for a fixed rate second mortgage that consolidates revolving debts?  If not, consider debt settlement.  You don’t need to own a home and your credit score is irrelevant.  Many consumers that were turned down for a bad credit debt loan find a solution with debt settlement.  Simply closing your credit cards and negotiating with your bank is time consuming and rarely produces the results achieved by a professional debt settlement company.  Debt settlement has the ability to save you 40-60% by negotiating a reduced pay-off with your credit card accounts in 9-18 months.

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Obama Credit Card Debt Reform

Author: admin - Categories: Credit Card News, Debt Articles, Debt Relief Articles, Debt Relief Tips

American consumers continue to seek credit card debt settlement and relief because they owe more than $945 billion in credit card debt.  Last year President Obama signed a debt relief bill into law that is intended to limit the ability of credit card companies to raise interest rates and fees.  President Obama said, “With this bill we are putting in place some common sense reforms designed to protect consumers.” People who rent their house are not eligible for a second mortgage consolidation.

The President signed the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 (H.R. 627).  This debt relief bill largely codifies regulations imposed by the Federal Reserve in 2008, but became effective on February 2010.  This debt relief bill limits the abilities of credit card finance banks to increase the interest rates of existing customers, charge account maintenance fees and assess penalties will be greatly restricted.

“20% of consumers are currently carrying credit card debt that has been charged interest rates above 20%.”  Card issuers will also be banned from enacting rate increases on existing balances due to “any time, any reason” or “universal default” and severely restricted from imposing retroactive rate increases due to late payment.  In addition, credit card companies will be required to disclose all terms of their credit contracts online and in language that consumers can see and understand so they can avoid unnecessary costs and manage their finances.

Complete details about debt relief and solutions like credit counseling, credit debt settlement and a secured debt consolidation loan are available online.

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April 5, 2010

New Debt Relief Programs

Author: admin - Categories: Debt Articles, Debt Relief Articles, Debt Relief Tips, Debt Settlement News

Millions of American consumers have been in jeopardy of defaulting on credit cards as the unemployment rate soars and interest on charge cards soars.  Debt Settlement Nationwide was pleased to announce that their debt negotiation program was helping people get their finances back on track.  With bankruptcy laws and mortgage underwriting tightening more and more consumers have chosen credit card debt settlement to relieve them of the high rate burdens that go hand in hand with unsecured debt.  Debt reduction is now available to more Americans because credit card finance companies are encouraged and incentivized to forgive credit card debt greater than $10,000.  Check out our debt settlement program with no application fee and no obligation.

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February 23, 2010

Debt Settlement Versus Bankruptcy

Author: admin - Categories: Bankruptcy News, Debt Articles, Debt Relief Articles, Debt Relief Tips, Debt Settlement News

With credit card debt at an all time high, debt settlement and bankruptcy continue to soar in popularity as debt relief has hit “main street.” Many critics sneer at the fact that the bankruptcy offers the same level of financial protection that settlement and debt reduction loan offers. Both have a negative impact on the credit score and both help the individual.

Well, if the two concepts are compared in such a literal sense, there’s no doubt that both are debt relief options. However, as one of America’s most favorite President said, there’s a difference in the security offered by a grave and security offered by peace. In case of bankruptcy, you will enjoy the security of the grave. However, you will find it impossible to lead a respectable financial life after that.  It will become public knowledge that you opted for bankruptcy. You will be publicly ridiculed for having failed to keep your debts under control. On the other hand, debt settlement is a completely different thing. You receive a boost from your lender in the form of 50% to 70% waiver. Even more importantly, you are offered 2 to 3 years within which you have the opportunity of repaying the balance amount in full.

Your credit score will come down. However, prompt repayment of the balance amount will itself indicate that you have controlled the finances. They will quickly identify that you have successfully overcome the problem and have shown discipline for the past 1 to 2 years. Remember that lenders are in the business of assessing risk. There’s no such thing as zero risk. You just have to convince your future lenders that you pose a low risk. If that is done, you can be rest assured that you will get loans despite having a poor credit score due to settlement.  Hence, do not to worry too much about the risk of settlement. The only point you should take care of is to avoid dealing with fraudulent companies. Choose the right resources like the debt relief companies online and even this debt risk will come down to zero.

If you have over $10,000 in credit card 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. To get free debt help check out the link below:

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Debt Settlement vs Debt Consolidation

Author: admin - Categories: Debt Articles, Debt Relief Articles, Debt Settlement News, Featured News Article

If you have $10,000 in unsecured credit card debt, you have options for debt relief. US consumers are choosing between debt settlement, debt consolidation and consumer credit counseling. Debt settlement provides quick payment relief for debt elimination.  According to finance expert, Jeff Morris, “Debt settlement can save you 40 to 60%! ”

Consider your options with credit card debt consolidation and debt settlement from trusted debt relief companies.  Remember that with bill consolidation and home equity loans, there are qualification requirements for borrowers, so if you don’t have any equity you likely will not qualify.  Read the original article online > Debt Relief Options

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January 31, 2010

How Stimulus Plan Allows Debt Settlement

Author: admin - Categories: Debt Articles, Debt Relief Articles, Debt Relief Tips, Debt Settlement News

The debt settlement selection has become a respectable choice for debt elimination, because it works. The debt settlement choice has become a more popular option for debt relief in recent years.  however took lots of effort and the credit definitely goes to the federal stimulus money. The federal stimulus package released as a part of the fiscal policy helped stand many financial units that were knocked down. The benefits of this trickled down to the common mass as well. Debt settlement has been one of the biggest benefits to consumers as a result of the stimulus money. If you have over $10k in unsecured debt you can realistically eliminate 50% of this with the help of a trusted debt relief company.  Utilizing credit repair after debt negotiations is an effective way to restore your damaged credit scores. Many consumers that own a house will utilize home equity mortgages, but the credit score requirements are often very high.

There are free online debt management classes are also available.  If you are considering debt settlement it would behoove you to use a debt relief network first. Debt relief networks are affiliated with several financial institutions and debt settlement companies and pair consumers up with legitimate debt settlement companies.

Did you know if your debt is more than $10,000, you can get a waiver of 60 % on it, and be able to clear off the debt in 2-3 years only? Taking advantage of the situation there are a lot of fraudulent companies out there who simply want to make money, without any intention to help people settle their debt.

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January 20, 2010

Debt Settlement Referral Program

Author: admin - Categories: Debt Articles, Debt Relief Affiliate, Debt Relief Tips, Debt Settlement News

Now you can earn up to $2,500 for just referring a client to Debt Settlement Nationwide. We offer a full suite of debt relief services, including debt settlement, debt management and debt consolidation loans.  In addition, we do all the work, process the debt negotiation application and more importantly compensate you for the referral.

Debt Settlement Nationwide provides debt relief solutions and there are no fees to sign up for these programs and much more.  Sign up now and start earning more income while helping improve the financial state of your clients!

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November 16, 2009

Eliminate Credit Card Debt

Author: admin - Categories: Debt Articles, Debt Relief Tips

Credit cards are what known as “toxic debts” meaning they are depleting your financial resources and they are tremendous burden on your wallet.  You’re willing to pay potentially several hundreds of thousands of dollars for one purpose to maintain your ability to obtain more debt while keeping your credit score good.  Most people in your situation are trying to get “out” of debt not keep it.

If you are to do a debt loan you will pay on that credit card interest for 20 to 30 years.  That is money you could put into retirement, other investments, pay your home off, etc.

If you were able to successfully settle that debt you could cut the balance down close to 1/2 of what you owe, make the “same” payments you’re making right now, and have it paid off in 2 YEARS – as opposed to 30 years.  Your credit score will dip a bit during the debt settlement but who cares?  You don’t plan on getting new debt – you’re trying to get rid of it.  When you pay everything off your scores should sky rocket.  I’ve been doing 2nd mortgages and have seen credit scores skyrocket very quickly.

Think about how much it’s going to take you to eliminate those credit cards. No matter what route you go, other than debt settlement, it’s going to eat up hundreds of thousands of dollars if you make minimum payments.   Don’t wait until interest rates go higher either, because it may become even more difficult to qualify for credit and you may be forced into bad credit debt consolidation.  You think your payments are high right now?

Interest rates are at an all time low.  When they go up your payments will skyrocket.

Keep it in mind.  This is a business decision that, if you can qualify, may be one of the best financial decisions that you ever made. Think about it and do the math -$25,000 versus potentially $250,000 in interest.  Article written by Jeff Morris

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August 28, 2009

Debt Relief Leads

Author: admin - Categories: Consumer Credit, Credit Card News, Debt Relief Articles, Debt Settlement News - Tags:

Debt Settlement Nationwide has put together some great lead generation campaigns for debt settlement, bill consolidation and loan modification agreements. If you are currently working in these areas this is the time to jump on some good debt relief leads. We are seeing great closing ratios on all of our debt leads.  The mortgage modification industry is alive and well and continues to pick up stream. The debt relief industry continues to grow steadily. Get these consumers into the right program now!

Debt Settlement Nationwide has debt relief candidates who are beginning to default on the credit card obligations.  This is a great to contact them as they just begin to run late and they still care about their obligations. Wall Street can set the criteria for the amount of debt and length of delinquency. We are finding the most active candidates are the ones who are maxed out the credit cards with a jumbo mortgage loan. These consumers are responding well to alleviating their debt to save their home. We also have been seeing good response from homeowners with large equity lines of credit or second mortgages. The response has been overwhelming at getting rid of the large debt amounts caused by the home equity and second mortgage. Get in touch with these motivated consumers now. We have internet leads, live transfer leads and direct mail marketing programs trageting consumers with high rate credit card debt.  Call Debt Settlement Nationwide today start consolidating tomorrow!

Debt Settlement Nationwide has loss mitigation candidates that are currently 30-60-90 day late on their mortgage. You can select the size of the mortgage and the length of delinquency. We have a lot of independent attorneys that are mailing these lead on their own.  Previously they were stuck in the clay and running in the red on their marketing. After switching into high octane Debt Settlement Nationwide data they are once again achieving phenomenal results. If you are not getting the results you need to be successful? Call Debt Settlement Nationwide and get back on the right track today!!

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August 17, 2009

Credit Card Debt Charge Off Update

Author: admin - Categories: Consumer Credit, Credit Card News, Debt Relief Articles, Debt Settlement News

Credit card debt has exploded, with bankruptcy and debt settlement cases rising continue to rise at alarming rates.  The rate of U.S. credit card defaults showed signs of stabilizing last month, an indication that American consumers may not be in as bad shape as feared despite job losses and the housing slump.  Are credit card companies hiding their losses?

 

o    BofA credit card charge-offs edge lower

o    Capital One defaults rise, stock falls 1.1 pct

o    JPMorgan, Citigroup, Discover say defaults drop

o    Capital One Defaults rise

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August 11, 2009

Consumer Credit Declines Again

Author: admin - Categories: Consumer Credit, Credit Card News, Debt Relief Articles - Tags: ,

Credit card debt continues to calculate negatively for consumers straddled with high rates.  With delinquencies soaring the banks have been forced to cut available credit line for consumers across the country.  Consumer credit fell $10.3 billion in the U.S. in June, or at a 4.92 percent annual rate, to $2.5 trillion. It was the fifth straight month of decline, as banks cut limits on credit cards and some consumers remained wary of borrowing money for big purchases.  Home foreclosures have not slowed down and fears of more job losses have contributed to the credit reduction from banks and lenders

Economics blog Calculated Risk has this chart (it gets bigger each time you click on it) showing that in percentage terms the declines in consumer credit are the worst in at least the past four decades:

Looking at subcategories within the Federal Reserve report, credit-card debt fell $5.04 billion, or 3.8%, to $1.59 trillion — a record 10th straight monthly drop in credit card debt. And non-revolving credit, such as auto loans, fell $5.04 billion, or 3.8%, to $1.59 trillion.  Doesn’t seem consumers are ready to save the economy quite yet.  Article written by Mathew Padilla

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July 29, 2009

Conference Call Campaign Producing Quality Live Leads for Debt Settlement Companies

Author: admin - Categories: Debt Relief Articles, Debt Settlement News, Debt Video - Tags: , , , , , ,

Today …we have a very special guest Edward Thomas from America’s Debt Solutions…He’s the founder of America’s most aggressive firm for removing debt from consumers and he is going to share some of his secrets today.

Find out why debt settlement companies that work with our marketing firm have increased their conversion ratios by 60%!  We offer unique hot live transfers that will connect your sales associates with consumers ready to settle their credit card debts.  Ask about our exclusive debt conference campaign that can be customized to generate leads for your debt relief company. 

Check out the latest conference call from Borris Bryan’s radio show, Debt Secrets Banks Don’t Want You to Know About.  If you are on this conference call right now you have been invited by someone you know…someone who cares about you and paid for this call. 

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June 4, 2009

Loan Negotiations to Prevent Foreclosure

Author: admin - Categories: Bankruptcy News, Debt Relief Articles, Debt Settlement News, Foreclosure Prevention, Loan Modification Articles, Mortgage Refinancing - Tags: , , , , ,

Debt settlement plans, chapter 7 bankruptcies and loan modifications continue to implode as unemployment rates rise and home equity decreases.  Borrowers are modifying their second mortgages in high volumes as well.  Second mortgage lenders are typically quick to renegotiate terms, because bankruptcy and foreclosures yield huge losses.

 

A sudden, drastic drop in income last year had Bob and Roxanne Curry fearing they would become another foreclosure statistic.  He works at a brokerage firm and she runs a child care business out of their Queen Creek home. In mid-2008, her weekly income fell from $1,000 to $300 as fewer parents could afford day care.“I was robbing Peter to pay Paul to make ends meet,” Bob Curry said. “I started charging up credit cards and taking money from my 401(k), and then, in November, there was finally no more money to rob Peter from. That’s when we started to get behind on our mortgage.”  

 

The couple’s loan servicer wasn’t interested in working with them until they were at least two months behind on the home loan. Bob Curry then compiled a 39-page document requesting a loan modification, with advice from Jeff Underwood, vice president for the Central Chapter of the Arizona Association of Mortgage Brokers. Underwood is also with AmeriFirst Financial in Mesa.  “It took two months from the time that we first faxed in the paperwork for it to finally come to a close,” Curry said. “We did all that we could do. We didn’t get into a home we couldn’t afford.”  The couple was able to get their mortgage interest rate cut from 7.45% to 5%, and all late fees and charges were moved to the end of the loan.“Basically we saved about $700 a month,” Curry said. “The mortgage loan is fixed for five years, and so hopefully when that time comes we’ll be able to do what we need to do.”


The Currys are part of a growing trend of distressed homeowners reaching deals with their lenders to get back on track with their mortgage payments and remain in their homes. “We’re seeing more (mortgage) modifications and we’re also seeing for the first time … balance write-downs as part of a modification to avoid any sort of foreclosure,” said Andrew Loubert, vice chairman of the Arizona Foreclosure Prevention Task Force. “What didn’t work six months ago is working today. We are seeing the lenders more proactive in their understanding that the market has substantially dropped and as a result they need to be more flexible with how they handle balances and things like that.”


In April, 270,000 modified mortgages and repayment plans were completed nationally, according to Hope Now, a private sector alliance of mortgage servicers, nonprofit counselors and investors. It was the largest number in any month since Hope Now began compiling data in July 2007. It has not yet released any 2009 figures for Arizona.  In the Valley, President Barack Obama’s Homeowner Affordability and Stability Plan prompted some increase in mortgage loan modifications, Underwood said. “I do think that banks have opened up a little bit to the reality that if we don’t work with these folks, it’s most likely going to go to a foreclosure process and that’s not what the housing market obviously needs,” he said.

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April 27, 2009

Debt Settlement Versus Debt Management Program

Author: admin - Categories: Credit Card News, Debt Relief Articles, Debt Settlement News - Tags: , , , , ,

The major difference between a Debt Management Program and Debt Settlement Program is that through a debt management option, creditors are being paid monthly whereas in debt settlement options the creditors are no longer being paid until such time as the debtor has built up sufficient funds to allow the debt settlement company to initiate negotiation procedures to reduce the amount of the debt and enact a lump sum settlement.  

Either way, in most cases, settling credit card debt or enrolling in a credit counseling program should eliminate harassing phone calls from bill collectors and collection companies.

Debt settlement can have a significant effect on a debtor’s credit score and rating as a whole, whereas a debt management after a period of time may have a positive effect on a debtor’s credit score, but may still be damaging to the debtor’s credit worthiness.  The good news is that credit can be repaired and credit repair solutions are affordable.  Take your time, when considering debt negotiations or any type of credit counseling.

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March 31, 2009

Thousands of Credit Card Consumers Report Credit Line Reductions in 2008

Author: admin - Categories: Credit Card News, Debt Relief Articles, Financial News - Tags: , , , , , ,

Bad credit mortgage options remained non-existent for struggling homeowners seeking home refinancing with fixed rates and reduced monthly payments.  Millions of homeowners have been turned down by mortgage lenders across the country, because of low credit scores, delinquent mortgages, negative equity or employment instability.  Some homeowners may qualify for loan modification plans if they happen to have their mortgage collateralized by Fannie Mae and Freddie Mac.  However, only conforming home mortgages qualify for the federal mortgage modification program.  Jumbo mortgage loans do not qualify for the FHA mortgage, FDIC or federal foreclosure prevention plan, even if the homeowner resides in a high cost area like California, New York, Virginia or New Jersey. 

 

Today the Minnesota-based credit score developer FICO released the results of a study measuring the breadth of credit card limit reductions as well as the subsequent impact to consumer’s FICO credit scores. The study is the first of its kind since credit card issuers began to heavily ramp up their credit limit reduction activity in early 2008. Here are some highlights of the FICO study: 16% of the U.S population had their overall available revolving credit reduced between April and October of 2008. With credit bureau databases holding 200+ million consumer credit files, this would seem to indicate that at least 32 million cardholders lost some of their credit limits during the study timeframe of April 2008 through October 2008.


11% of the U.S. population, or 22 million consumers, lost some of their credit limits for a reason other than risky credit activity such as making payments late, having accounts go to collections, or having a negative public record added to their credit report during the study time frame. Credit card inactivity or low balances likely caused the lowered credit limits for this group. The median FICO score in this group is 770, so the adverse changes to their credit limits are not a result of poor credit risk.



A recent Fair Isaac report indicated that 10 million consumers acknowledged that their credit limits were reduced by a credit card company or home equity lender.  The financial companies that hold the debt on these credit cards claim that the maximum revolving debt for these accounts changes “because of some sort of risky credit activity including late payments, accounts in collections, or a negative public record added on their credit reports.”  However thousands of consumers with good credit scores ( borrowers with no late payments and no increased risks) reported to have their credit lines cut or significantly reduced without any changes in the credit profile.  Many of these consumers also claim that the reduction in credit limits caused their credit scores to drop on average of 40 points. 

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March 18, 2009

Best Ways to Eliminate Credit Card Debt

Author: admin - Categories: Bankruptcy News, Debt Video, Financing Tips - Tags: , , , , ,

Suze Orman was wondering if you have you ever wondered why people continue to use credit cards even after letting them bury you in high rate interest? In this video Suze seems to be backing CCC (consumer credit counseling over debt settlement because the debt negotiation firms usually trash their credit. First of all Suze, as an experienced mortgage broker I have seen hundrerds of borrowers with credit that was significatntly impaired from consumer credit counseling, because with their programs the consumer stardts paying the creditors less than agreed.  Their credit rport starts reflecting that each month and it lasts a heck of a lot longer than debt setttlement. Second of all, the consumers that incurred the debt should have some responsibilty with regrads to their credit scores being trashed…

To your surprise, you actually need to have a credit card these days. But you do want credit card debt. Suze Orman explains the benefits of credit cards, but warns about carrying adjustable rate debt from these credit cards.


Is Debt Consolidation a SCAM?

If you really want to work with an company, look for one who can help you reduce your debt.  Consider, Debt Settlement, Consumer Credit Counseling or an Unsecured Bill Consolidation Loan or a Secured Home Equity Loan.

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March 9, 2009

Home Loan Payments Over 90 Days Delinquent Rising

Author: admin - Categories: Bankruptcy News, Debt Relief Articles, Financial News, Loan Modification Articles, Mortgage Refinancing - Tags: , , , ,

Serious “bottle necks” are being reported where properties are significantly delinquent, meaning loan payments are over 90 days past due. Potentially, this could make the foreclosure inventory explode, according to the data. About 6.3% of mortgage loans were seriously delinquent during the fourth quarter, compared with 3.62% during the same period a year earlier. The administration aims to help up to 9 million homeowners either refinance mortgages or attain a loan modification that keeps them out of foreclosure. 

 

The states that took the biggest losses continue to be California, Florida and Nevada, but Louisiana, New York and Georgia have also seen sharp increases in delinquencies, indicating that the recession is spreading, the group said.  On a related note, the House voted for legislation that enables bankruptcy judges to modify and restructure the home loans of distressed borrowers seeking mortgage relief for their owner-occupied property. The See the complete article > Obama Team Announces Loan Modification and Housing Relief Plan

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Home Loan Delinquencies and Foreclosure Action Increases

Author: admin - Categories: Debt Relief Articles, Debt Settlement News, Financial News, Loan Modification Articles - Tags: , , ,

The increase in debt settlement and home loan delinquencies and foreclosure actions in the state came as no surprise to Joe Cox, a community organizer for housing advocate group Maryland ACORN.  “Mortgage service companies and home loan lenders have been avoiding meaningful loan modification at every step of the way,” Cox said yesterday.

 

Chris Traczyk, a real estate agent with Long & Foster in Elkridge, said most of the listings he has been showing to new home buyers recently have been foreclosed properties.  With several of his clients, “that’s all they’re requesting to see because they’re thinking they’ll get a great deal,” despite knowing the house must be bought in as-is condition, and the bank must approve the price.  But the competition from home foreclosures makes it tough for sellers of other homes, who often have to settle for reducing their sales prices, Traczyk said.

 

Banks have said they are taking steps such as Citigroup’s plan, announced earlier this week, to lower mortgage payments for some borrowers to an average $500 a month for three months if they lost their job. But ACORN contends banks are just offering short-term solutions, such as tacking a missed loan payment to the end of the mortgage balance, that do little to help borrowers.  Many homeowners come to ACORN fearing they will become late on payments but say their lending company will not consider a mortgage modification unless their payments become delinquent, Cox said. The group says it wants to see mortgage loan modification programs offered more with terms like lowering the mortgage rate or reducing the monthly payments simply by extending the amortization schedule of the mortgage.  “The message people are getting is ‘Don’t try to work this out ahead of time. Wait until you have a problem,’” Cox said.   Sun reporter Jamie Smith Hopkins and the Los Angeles Times contributed to this article

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