Debt Relief Tips

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. 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.

July 12, 2010

Debt Management Versus Debt Settlement

Author: admin - Categories: Debt Management, Debt Relief Articles, Debt Relief Tips, Debt Settlement News - Tags: debt management, debt relief solutions, renegotiating the interest rates of credit cards

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. 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.

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: debt settlement program, settle credit card debt

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.”

Debt Settlement vs Consolidation Loan

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

eHow published an article recently that compared debt settlement to debt consolidation. In years past many finance advisors 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?

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.

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.”

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.

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.

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 debt settlement 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:

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.

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.

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!

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

Debt Settlement Blog

How Debt Settlement Impacts Credit

Debt Management Versus Debt Settlement

Controversial Debt Settlement Bill

Debt Settlement vs Consolidation Loan

Tips for Credit Card Debt Settlement

Obama Credit Card Debt Reform

New Debt Relief Programs

Debt Settlement Versus Bankruptcy

How Stimulus Plan Allows Debt Settlement

Debt Settlement Referral Program

Eliminate Credit Card Debt

Free Loan Quote

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