Debt Settlement Blog

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.

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.

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.  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.”

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.

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!!

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

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