Thursday, February 10th, 2011
When you are experiencing a need, asking for help is not easy. When it comes to asking for financial help, it is even more difficult. Finances are personal and deciding that you need to talk to someone about the debt you have incurred is stressful enough without finding out too late that the company you chose is not a reputable business.
As the cost of living continues to increase, debt is keeping up pace as more and more individuals look to credit cards and loans to supplement their already slacking income. The result is that they are falling deeper into debt faster than they can climb out. What makes it worse is that many charlatans are taking advantage of the fact that when individuals feel the pressure of rising debt, they become vulnerable. Those who are looking to make a quick buck off others distress comes into play this moment. You are ready to seek help and they are ready to offer and take your money; leaving you in a worse financial condition than when you started. How can you tell the charlatans from the legitimate debt management companies?
To begin with, it is very important that you research the debt management companies you are considering. Talk to others who have used their services, call the Better Business Bureau to inquire as to the company’s business practice. If you have concerns at all, do not use them. If you have narrowed your search down to a few companies, talk more in depth with their counselors. Be inquisitive ask many questions such as:
* Will all of the monthly payment be applied to your creditors
* Will any portion of what you pay to the company to into their pocket before going to your creditors
* Are there any hidden fees
These questions are very important because that is how the less reputable companies are making a profit from your financial difficulties. They will pocket the first payment you make without ever sending it to the creditors. Or they will only send in a portion of your payment. If this happens you will most likely be facing penalties and finance charges for not making the agreed upon payment. It is vital that you know up front how much of each monthly payment you make will be applied to your debt. The majority of debt management plans will tell you that it can take anywhere from three to six years to get out of debt. If you inadvertently work with a company who does not have your best interest in mind it will take several years longer. Be wise, do your research, and read the fine print before making your final decision. Not all debt management companies are looking to defraud you but it takes only one to ruin your credit.
By: Mike Singh
Tags: Credit Cards, Financial Difficulties, Reputable Companies
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Friday, January 28th, 2011
Not paying unsecured debt means that you will accumulate more debt each month. If you do not pay your credit card debt for a few months in a row, you will see your credit score decrease drastically, and can even be served a lawsuit by the creditor. To avoid permanent damage to your finances and your credit score, and stay out of court, take the following measures of action today.
Take Control
Face your debts on the head. Do not overlook, or let grow out of control to become impossible. The credit card companies want your money, and will take action to recover any outstanding debt. To get out of debt and then stay clear of debt, you need to fight to hold on to your money more than them. Ignoring your debt, or not pay the credit card debt, will not make it disappear. Only exacerbates the problem and makes this time much more stressful and overwhelming.
Stop Using Plastic as Money
For those who do not pay credit card debt, the first thing to do is stop using your credit card. If you keep using the card, you will have more debt. Do not cancel your credit card, as this will affect your credit score. Instead, simply stop using the card. Instead of using plastic money as invisible money, use real, tangible cash purchases. You will soon realize that it is much more difficult to separate with, unlike using plastic which does not seem like real money at the time.
Analyze Your Situation
When you understand what a bad decision it is not to pay debt, you will begin to learn ways to relieve your debt. After the awareness of what is actually owed, and not ignoring the reality of the debts puts you in control and you can deal with the debt. Start collecting all necessary documents related to liabilities such as bank statements and canceled checks. Then make a detailed overview of debt liabilities, so you can compare your records with them and evaluate the potential for inconsistencies or inaccuracies.
Have a Plan
Companies provide credit cards that most debtors do not understand the ins and outs of debt or just too lazy to understand. Empower yourself by being aware of the interest rate, that your credit card will be charged. If you currently are charged a high rate, find a credit card that offers a lower rate. Otherwise, you voluntarily and knowingly throw hundreds of dollars each year on interest payments. Also pay special attention to the hidden costs of your credit card company.
Not paying unsecured debt can create a larger problem, take control and plan your way out of debt.
Not Paying Unsecured Debt!
© copyright Wing Family Trust. All rights reserved worldwide June 2010.
By: Maricar Wing
Tags: Credit Cards, Plastic Money, Unsecured Debt
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Friday, November 12th, 2010
If you’re considering using debt settlement to help you pay off your credit cards, here are 5 tips to help you decide on a company to help you.
Keep in mind that hiring a debt settlement company is no different than hiring any business to perform a service for you – so make sure you find the one that fits your needs the best. Not all debt settlement companies are the same. Like with any industry, there are good ones, and there are the rest.
Unfortunately, when it comes to settling credit card debts, you often hear more stories about people who complain than those who receive good service (and there are many).
How do you determine which settlement company will offer you the best service?
1) Shop around
When hiring a settlement company, you should contact at least 2-3 different businesses and compare the services and terms they offer. Not only will you find the best company to represent you, but you will learn a lot about how debt settlement works, and how it can help you.
2) Check with the BBB
While not everyone with a complaint contacts the Better Business Bureau (so a clean record may be misleading) if there are several unresolved complaints, that is a “red flag” to find out why there are unhappy customers. If the complaints have been resolved, that is a good sign that the debt settlement company offers good customer service. You can search for company records online at http://www.BBB.org.
3) Check references
While debt settlement is a confidential process, and therefore you may not find many companies willing to give out names of happy customers, it is worth asking. Talking to a former customer will tell you more about a company than any brochure or website.
4) Get all the details in writing first
This is an absolute MUST – you should never agree to anything, sign any paperwork, or send in any money until you get all the terms and conditions in writing. A written contract will help you understand what service you should receive, how much it will cost you, and protect you if an issue comes up.
5) Ask lots of questions
If you have any questions (and the more settlement companies you talk to, the more questions you will have) make sure to ask them – and get the answers you want. If a company is not willing to take the time to answer your questions now, how will they respond to you once you become a client and your money is at stake?
Bottom line, it is your responsibility to “do your homework” and research the best company to help you settle your debts.
If you take the time and effort to find the company that will fit your needs the best – just like you would when hiring any professional – you will greatly reduce the chances of a major problem occurring.
Settling your credit card debt is a big decision for anyone to make, so don’t make the decision lightly!
By: Kris Bickell
Tags: Bbb, Better Business Bureau, Business Service, Check References, Company Brochure, Contact, Contacts, Credit Card Debts, Credit Cards, Debt Help, Debt Settlement Companies, Good Customer Service, Lot, Money, Paperwork, Red Flag, Settlement Company, That Fits Your Needs, Unhappy Customers, Unresolved Complaints
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