Debt settlement company

How to Find a Reputable Debt Settlement Company

admin — Wed, 01 Sep 2010 18:52:40 +0000

Research from the Nilson Group says that households with at least one credit card had more than $10,000 in credit-card debt at the end of 2008. That figure has only gone up as the nation struggles through a weak economy. With the national unemployment rate rising past 10 percent as 2010 began, U.S. residents are relying more on their credit cards to pay their normal living expenses. The problem is, these debts can add up, what with the average interest rate on consumer credit cards standing at more than 16 percent in December of 2009. For many consumers who are overwhelmed with credit-card debt, the best solution might be to work with a reputable debt settlement company.

Such a company will negotiate with your creditors to reduce the amount of money you owe to them. The best companies in this business will be able to reduce your debt dramatically, significantly easing the financial burden that you face. This usually works best when consumers can offer a lump sum payment to their creditors, though skilled debt companies can still provide financial relief even if you can only afford smaller monthly payments.

Before settling their debt, though, consumers need to research the company with which they plan to work. As in any industry, the business of settling debts does have its share of unethical companies. These companies will take consumers’ money and then do little to help them relieve their debt. Or, they will charge them excessively high interest rates and fees. Fortunately, the majority of companies in the debt-settling business operate in an honest and fair manner. It is up to consumers to do their homework first to make sure that they are working with one of these reputable companies. With the power of the Internet, doing this research is neither difficult nor time-consuming.

First, consumers should run an online news search for the name of the debt settlement company they would like to work with. This will turn up any headlines that the company made. If this search turns up nothing, consumers should then check with their local office of the Better Business Bureau. This agency will list any consumer complaints filed against the company. Finally, consumers should always ask a company they are considering to list their rates, terms and late-payment penalties on paper. This way, there will be no unpleasant surprises as the work of paying down debt proceeds.

By: Hector Milla

How to Look For Debt Settlement Companies

admin — Sun, 29 Aug 2010 14:59:31 +0000

So you are knee-deep in credit card debt and your finances are no longer able to keep up with bills and expenses. At this point in your life, you might be thinking of how to reduce credit card debt and eventually settle them and clear your credit line. But in picking a company that offers debt settlement services, being choosy is something you should do.

When selecting a debt settlement company, do not settle for the first agency you come across. Make sure to check at the very least three companies and make a good assessment of their rates and services. It is best that you try to do some information digging before you make a call about their debt help services and hire them on the spot.

When you look for companies that offer credit card debt assistance services, among the things you need to look for is the company’s longevity. The longer they have been in the business, then the more likely that they are to be on stable footing. It also means they have weathered the test of time with their methods and services.

Another thing you can also do is gather opinions from past and current clients. You must ask them about the company’s debt assistance services and methods and whether these approaches satisfied them. These people should be able to give you a great grasp of how a debt settlement company works and will give you an idea whether you might hire their services or not.

Perhaps the best thing you can do is do a background check before you finally decide to get the services of a credit card debt assistance company. Try to see if the company has involved in activities that are considered questionable. You really do not want to work with a fraud agency so it is important that you keep you guard up because you are not only dealing with your debt problems, you are dealing with your entire financial future.

By: Jiles Masson

Debt Relief Network – How to Locate Professional Debt Settlement Companies

admin — Wed, 25 Aug 2010 06:02:49 +0000

You may have heard from lots of people of how they have managed to work towards coming out of debt using the power of negotiation which put creditors on the back foot. You no doubt are dying to know how they made the initial contact and how they went about it. Your first step towards working off your debts would be to get in touch with a debt relief network, plenty of which are available online. Once you sign up or give them a call, they will be prepared to give you advice, usually free of charge.

They will hear out your debt problems and will then look through a list of debt settlement companies they will have on their roster. These companies usually have a very high success rate in negotiating down debt with creditors and are manned by professionals. They are experts in the field of negotiation and are also largely drawn from the banking and credit industries, meaning they have innumerable contacts ready to listen to them.

Moving closer:-

A reliable debt relief network will only have highly reputable such companies on its rolls, those with a success rate of 90 percent or even better. They should also have an impeccable reputation, a strong network and the ability to listen to the debtor and come up with a tailor-made plan for him or her.

You will not have to locate the companies yourself but the debt relief network will do it for you. They will find you a compatible `partner’ and let you two decide how to go about things. Conducting a search on your own could be a futile and thankless job, not to mention time-consuming. Networks know what they are talking about and have conducted thorough background checks on the companies on its rolls. And after a conversation with one you it should be just a matter of minutes before they come up with a company who would measure up to you standards.

Till date, few complaints have been received from consumers who have gone to a legitimate network for help. Inevitably, they seem to emerge satisfied once negotiations are over indicating the network has done a good job in playing matchmaker. The organizations have benefited a lot of people and are seen as the first stepping-stone to getting out of debt, which in any case is a reason for cheer.

By: Katherine S. Young

Taking a Look Into Debt Settlement Companies

admin — Thu, 17 Jun 2010 07:34:57 +0000

Debt settlement companies are growing enormously in popularity and they are doing so for good reason. Many people are in a situation where their debt is completely out of their control and they need a reliable means of paying off their amassed debt. Paying the minimum payment every month simply will not get a person out of debt. It will only delay the payoff until it becomes impossible. That is why companies that offer a means of being able to settle debts are so helpful. They can allow a debtor to close out an account and put an end to such piles of delinquency notices.

But, what does a debt settlement entail? It is a rather simple process that is not even very complicated to engage in. Basically, a debt settlement program offers a lump sum payment with the intention of closing out an account. That means if you owe $4,000 on a credit card, an upfront, lump sum payment of $2,000 could be offered and once the credit card company received the payment, the bill would be considered paid in full. The credit card balance would be zeroed out and no more payments would be required for the debt. Yes, debt settlement companies can push such a deal through on your behalf and this will certainly allow you to get your financial accounts in order.

Some may wonder why the credit card companies would accept such a deal. The reason is simple. This is the best option they will have to acquiring a payment since a person who is headed into an out of control debt situation will surely present a potential default threat. If the person goes into default, the credit card company will have a very difficult time collecting anything on what is owed.

Also, when someone is heavily in debt, the possibility of filing for bankruptcy will rear its head. This can be a nightmare scenario for both the lender and the borrower. For the lender, bankruptcy could mean they will receive next to nothing as a payment on the money owed. The credit cards would have to rely on a judge’s decision in terms of what they will collect and this is not a good scenario. Hence, they would be much more open to what the debt settlement companies are willing to offer.

For the borrower, a debt settlement is a much more painless process than dealing with the complexity of bankruptcy court. Debt settlement is less involved and is much more immediate. As such, it is a much better plan to engage in than walking into the trap of bankruptcy court which can take weeks and even months to get worked out.

Of course, it is also important to select the right service to handle your debt settlement offer. While most debt settlement companies are top of the line, there are a number of scams out there. That is why it is best to perform a little due diligence research on any company you opt to deal with. This way, you can avoid being taking advantage of when you seek to close out your credit card debts.

By: Jon Arnold

How to Locate Reliable Debt Settlement Companies Online

admin — Tue, 15 Jun 2010 03:45:32 +0000

The Internet service has increasingly become a highly important tool which is widely used by many level of society for effective searching. One can basically search for anything which he or she needs through the Internet. For anyone looking for a debt settlement company, surely Internet is the best and most efficient way of searching for this kind of information.

Debtors who wish to have their debt liabilities eliminated, need to get himself a reliable debt settlement provider who he can trust and seek advice from through the online debt settlement programs. Here are some of the key tips which may help you to locate for your reliable debt relief service providers with ease;

1. Keep close contact with a few good debt relief networks so as to make sure you are aware of where to get useful debt relief information or programs as and when you needed to. Seek for advice from those people whom had went through this searching process will be extremely helpful as well.

2. Only through related legitimate online programs, we are able to tell between a legitimate and registered settlement company against a counterfeited debt settlement company. This is the key reason why consumers are willing to pay for their service out-front to any of these legitimate debt relief program even before any service is granted because they have great faith in those real legitimate settlement companies.

3. Consumers may visit some of those free networks where you can compare many of the best performing debt relief programs to gauge the best deals. While at the same time, you will also be able to find yourself some of the best debt settlement companies which you can trust on. These networks keep the regulation of good debt relief firms to be highly consistent in the market.

4. Through these networks, consumers can easily identify between a false company against those which are legitimate. False company will charm consumers into signing them by advertising and promising lots of attractive deals but none of them are actually real. Getting an authentic debt management company is very crucial if you are serious about solving your financial obligation cleared with good credit position.

5. One can also refer to the website ranking for these debt settlement companies as a good reference point. These ranking is based on the company performance, financial status and also customers’ feedback. One can always refer to this ranking to identify some of the best debt settlement companies.

Last but not least, remember that debt management is not a permanent solution for credit card debtors. It is recommended to get yourself a good and effective debt consolidation company as soon as you possibly can to reduce your debt amount effectively.

By: J.J. Yong

What Debt Settlement Companies Do Not Tell You

admin — Sun, 30 May 2010 16:13:09 +0000

A debt settlement company negotiates on a consumer’s behalf to help them settle debt. Negotiations are made between the company and the creditor to begin the repayment of debt. If you are considering working with a debt settlement company, it is recommended that you do plenty of research before deciding on a particular company. It is easy to fall into one of many scams that are present today.

Debt settlement does look to be very appealing because of the lower interest rates and lower payments. However, it has been found that the lower payment does exist but not because it is lower, it is because the extension of the term. If the debt is carried out longer, you will have a lower monthly payment, but it is also true if you stay in debt for a longer period of time, you will end up paying more money. This is the reason why these companies stay in business and continue to succeed.

There are many things that debt settlement companies do not tell consumers:

1. It is not the same as debt negotiation.
2. Sometimes the program charges hundreds of dollars as an initial fee to set up the account, plus a monthly fee. The fees and the amount of the total debt to be paid varies with each company.
3. There are companies who take payments each month but do not pay creditors monthly. Instead, they put the money in a trust fund while negotiating and then make a lump sum payment when the debt can be paid in full.
4. Creditors may sue you and your wages could be garnished in the time it takes to complete the entire settlement.
5. It is not asked that all interest, over the limit fees and late fees be stopped from accruing.
6. Creditors are not legally obligated to listen because they are not law firms.
7. About 15% of the total debt is charged in fees upfront.
8. Debt settlement is not right for everyone who has debt.
9. Your credit will suffer with the settlement.
10. Any debt balance that is forgiven and is more than $600 is taxable income.

Before you decide on debt settlement, it is highly recommend that you research and find a company that is reliable and trust worthy. You want to feel comfortable with the company itself before you feel comfortable with them handing your debt. While this article could sound negative, be certain that there not one but several reputable companies in this field.

By: Hector Milla

Negotiate Unsecured Debt

admin — Thu, 27 May 2010 00:10:52 +0000

Delinquent is a term used by creditors and collectors to describe accounts which payments are no longer being made on. As soon as a payment is missed an account becomes delinquent. These accounts must be at least 90 days behind in order for creditors to consider settlement offers on them. Meaning for three months before the account can be negotiated on the account is accumulating late fees, penalties and increased interest rates. Some accounts are usually better negotiated on with the original creditor before they are sent to a collection agency and some are better off going to a collection agency for negotiation. This information is key when negotiating unsecured debt.

Who knows this information better than an unsecured debt negotiator? Not too many people do. That is why it is best to let a professional handle all negotiations on delinquent accounts. The experience and the know how a debt negotiator possesses is unique and invaluable.

If collection calls and letters, threats from collectors are too much too handle maybe it is time to seek help. Debt negotiation companies can help lessen that stress greatly. Debt negotiation companies will contact creditors and collectors and aim for all phone calls on a client’s behalf to go to them. Not all calls will be stopped but they will lessen. Negotiators will use a document called a Power of Attorney to try and give clients a chance to eat dinner in peace. If accounts are delinquent and phone calls from collectors are a problem, debt relief is a great option.

Negotiating on unsecured debt is a way to save large amounts of money. Depending on how many months delinquent the account is and who is collecting on the account will dictate a savings that is much needed after allowing the account to accumulate late fees and penalties for non-payment. Settlements can range anywhere from 30 to 70 cents off on the dollar. It may be worth exploring the possibility of settlement to get back some of the money lost on late fees and penalties.

Settling accounts in delinquent status will also help credit scores begin to repair by lessening the debt to income ratio. This is extremely important if there are wishes to take on new loans such as buying a house. Think of it as getting back your financial health. Additional help may be required by credit repair companies to speed up the process of repairing the credit score to good standing. Ask the debt negotiation or settlement company to try and negotiate with creditors and collectors to remove the information they have reported to the credit bureaus.

Negotiating unsecured debt can bring back peace of mind for many people as long as it is done in a responsible manner, consult various debt settlement, negotiations companies before deciding on one of your choice. Remember in order to settle delinquent accounts funds must be made available to close the offers brought back by your negotiator, this is perhaps the most essential part of any negotiation, money.

By: Dan Delgado

Secrets to Negotiating a Debt Settlement with Your Credit Card Company

admin — Sun, 09 May 2010 22:23:22 +0000

Come Prepared!

Pssst … Want to know how to get your credit card company to stop hassling you for your payments? Or, how to get them to reduce your payments significantly? Or even how to get them to slash their interest rates on your card significantly? Well, you could always … ask.

Yes, that’s all it takes sometimes. Like any other big business, credit card companies are out to make money. But they can’t make money if you’re too bogged down in credit card debt and other forms of debt to make your payments every month. So many credit card companies are open to discussing options like debt settlement with you. And it’s relatively easy if you know what you’re talking about.

Before you approach your credit card company — or have someone approach them on your behalf — about negotiating a debt settlement, know what you want to say. Explain your situation and ask about any settlement options that they offer. Will they reduce your total balance if you pay a set amount up front? How much can you afford to pay off today?

Knowing is half the battle. If you can present a strong case, chances are they’ll work with you on a debt settlement option.

Letting a Financial Advisor Negotiate for You

Some people — in fact, most people — are probably not comfortable with the negotiation process when it comes to haggling down numbers with a credit card company. Because of this, you may wish to retain a financial advisor to help you with the settlement. This is a great option because it allows you to present all your information to him and her and get an honest opinion on how you should approach the settlement.

He or she will work with you to figure out your monthly budget and to see how much you could reasonably settle with the credit card company for. You’re probably eager to remove the debt but he or she will help you to see the benefits of settling for a certain amount under certain conditions. A financial advisor can be a great way to clear the debt off your credit card and start anew.

Get Results Immediately

The great thing about a credit card debt settlement is that, in most cases, it is the quickest and easiest way to reduce your debt in a very short period of time. Aside from just saving you money, it’s a way to wipe the slate clean and start over again. Do whatever you can to convince your credit card company to settle your debt in a short period of time. Your credit report will thank you and you’ll certainly be able to lead a much fuller and worry-free life in the near and immediate future.

By: Dometri Quick

Signs of a Legitimate Credit Card Debt Settlement Company

admin — Sun, 09 May 2010 12:38:49 +0000

If you are in a business, you will know that everything in business is negotiable, but did you realize that this includes your credit card debt as well. However, as in any good negotiation, you can only win your arguments if you know what to say and to whom in just the right way. In other words, you need to know the rules of engagement.

The best way of settling the money owing is to negotiate for debt settlement.

Debt Settlement

Debts can be resolved by a mutually made agreement between the creditor and the debtor. When the debtor is unable to meet his or her financial arrangements, it may be necessary to negotiate the debt, finding an amount that the debtor can afford to pay and the creditor is willing to receive. This negotiation can slash as much as 60 percent of the total amount owed. However, while negotiation is possible, it takes considerable skill and strategy to persuade the creditor to accept less than the full amount owed. For this reason, a financially savvy third party may be invited to do the negotiation on behalf of the client.

Finding A Legitimate Credit Card Debt Settlement Company

Bearing this in mind, you will want to look for a legitimate company to help you with resolving the charge card bills that are ruining your life. You will need a company that may even be able to help you negotiate a discounted payment of as much as 60 percent. This will enable you to pay off the entire amount you owe and begin a new financial life in 2010.

Since the economy has taken a downturn, so too has the level of indebtedness in the economy. This has resulted many debt relief companies appearing, and, unfortunately, many of them are not fully qualified to represent your interests, lacking either in professionalism and legitimacy.

How, then, do you find a legitimate company to represent you? What are the qualifications that you should be looking for in the company itself as well as the training of its representatives?

Here are some of the things that you should look for in a legitimate company:

1. It is an accredited company.
2. It is a member of The Association Of Settlement Companies.
3. It is a member of the Better Business Bureau.
4. It is a member of the local Chamber of Commerce.
5. It is licensed and bonded in your state.
6. It has professional counselors, staff who are certified debt arbitrators.

Although it is possible to manage debt settlement by yourself and it is possible to find many debt relief companies to assist you, your fastest results with the biggest discounts on your debt will come when you do your due diligence and find a company that meets most, if not all, of the 6 point criteria.

By: Hector Milla

Served a Summons Or Credit Card Debt Lawsuit – Don’t Call the Creditor!

admin — Fri, 30 Apr 2010 17:01:52 +0000

I receive e-mails every week from people who have had the misfortune of receiving a summons notice on their doorstep or the joy of having a stranger sidle up to them and say, “You’ve been served.”

Not fun. Oftentimes, these same people tell me that the first thing they did was to pick up the phone, call the collection agent or collection attorney in many cases and try to work out a payment plan or settlement agreement. This is WRONG, WRONG, WRONG.

Once you have been served a summons, this means that the collection agency is SUING YOU. You are being sued and the collection agency is now the Plaintiff and you are the Defendant. Any and ALL communication with the Plaintiff should be done via written correspondence only.

It’s too late for “I’ll send you $50 buck a month, I promise.” Way too late. Now is the time to take responsibility for your financial future and face your fears (debt) head on. Even if the collector was to agree to a payment plan, they cannot be trusted. While you are “working it out” they could be in the process of putting a lien on your property and searching for your bank account information in order to seize your assets.

Here’s what you need to do. First of all, DO NOT BE INTIMIDATED. This is difficult, after all I’m sure you feel badly about the debt in the first place and it’s probably been haunting you for years. The sad truth is that many of these debt lawsuits are brought about on out-of-statute debt and the collection agencies and debt attorneys are notorious for re-aging the DOLA or Date of Last Activity on your credit report. It’s in your best interest to dig up any old credit reports and bank statements to prove the the date of the last payment you made on the defaulted account. If that date is past your state’s statute of limitations on open credit card debt, they have the right to try and collect, but they cannot sue you and must drop the lawsuit.

Additionally, very rarely is a debtor sued for the actual amount they owe…penalties, interest, and other assorted fees are generally tacked on to the balance. Make them prove their case!

There are many other defenses that can be raised against one of these collectors. The key is that you need to communicate with them through the court system. They don’t expect you to fight back, over 96% of debt lawsuits end in default judgment. The chances of them backing off and dropping the lawsuit are HUGE if you take the time to properly format what is called a Notice of Appearance, Answer, and Certificate of Service.

It takes some time and research to properly file these documents, but it’s your financial future at stake. A default judgment can not only freeze your bank account or garnish your wages but it will also ruin your credit for a minimum of 7 years. A few states offer basic templates for the forms you will need to file with the court, a simple Google search should offer up some resources. You can purchase Word templates (w/ affirmative defenses for third-party debt collectors) for the “Answer to Complaint” document and more at www.IHaveBeenServed.Info and alternatively there are very helpful people on several internet “debt” message boards who can offer up advice when drafting your own documents.

Additionally, you should fax and mail (certified, return receipt) a Cease & Desist Letter to the creditor informing them that they must communicate you with via written correspondence only and now that they know how to communicate with you they must refrain from contacting any of your neighbors, friends, relatives or employees in an attempt to collect their debt. If they violate your request, you can threaten to sue them for an infraction of the FDCPA (Fair Debt Collection Practices Act) which allows $1,000 for each violation.

Now is the time to action. If you do nothing, the creditors will find your assets and take them. Bottom line. File your Answer and other supporting documents and wait and see. The best that can happen? They won’t want to fight you in court and drop the lawsuit (they rarely have the supporting documentation to back up their claims) or you’ll receive a courtdate and you’ll be given the chance to work out a settlement agreement at that time. Either way you will have avoided a default judgement which is looked upon as poorly as bankruptcy in many cases.

Fight back! You have nothing to lose and everything to gain.

By: Jay M Johnson