Debt settlement company » Debt Settlement Program

Does Debt Settlement Affect Your Credit Score

admin — Tue, 01 Mar 2011 16:40:39 +0000

If you’re buried deep in credit card debt, you probably shouldn’t be asking if debt settlement affects your credit score. Instead, you may want to consider if you should really care what your score is. Think about your situation very seriously for a moment. You’re losing sleep and can barely make the minimum payments due on your credit cards. This situation is making you nervous and you can’t shake the sick feeling in the pit of your stomach because you’re always thinking about the money you owe and how you’ll be able to pay it back. Should you be worried? Probably, because this is a legitimate concern, and one that has the potential to remain for several years if you continue making minimum payments.

Now, jump over to the other side for a moment. Let’s say you’ve struggled and sacrificed to make your credit card payments each and every month. Because of this, your credit score is relatively high. So what? Is it worth feeling stressed out just to have a good credit rating? If you should enter a debt settlement program and your credit score is lower than you’d like it to be for a year or two, would you be awake at night thinking about your credit rating? It’s doubtful. If you’re like most people you’ll probably be so relieved to be debt-free, your credit score will be about as significant as your neighbor’s sister’s dog’s puppies.

Entering into a debt settlement program may or may not affect your credit score, depending on what your current situation is. Chances are, if you’ve made some late payments already and/or your credit cards are carrying high balances, your score is probably not as high as you may think it is. Negotiating reduced settlements with your creditors, through debt settlement, however, can save you thousands of dollars, help you avoid bankruptcy and finally get you to the point of being debt-free and stress-free in less than two years – very possibly even sooner.

If you should decide that debt settlement is your best option, be sure to hire a company you trust. If the first representative with whom you speak sounds like a salesperson and not really interested in your concerns regarding your current financial situation, there’s a good chance you’re not going to get the customer service you desire and deserve once you become a client with this particular firm. While going through the process of debt settlement, you’ll want assurance that your questions and/or concerns will be addressed promptly by the company you’ve chosen.

In summary, you should probably take a good look at what matters most to you – a lifestyle free of debt and concern, or a high credit score. When it comes right down to it, the choice really is yours, so be sure to make the decision you’re most comfortable with.

By: Marie Megge

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

Is Debt Settlement Legal?

admin — Sat, 10 Apr 2010 01:36:36 +0000

The simple answer to a complex question is YES. Debt settlement is a legal solution used by thousands of Americans to help them avoid bankruptcy. The theory behind debt settlement is very simple: negotiate deals with credit card companies that are mutually beneficial for both parties. This ultimately leads in the credit card company receiving a lump sum payment, and the consumer paying off the entire debt for a percentage of the outstanding balance. The greatest advantage for the credit card company is that they avoid any future problems with collecting on the debt, and any concession made on the creditor’s part is most obviously tax deductible. The consumer is at no time breaking any laws or committing any illegal acts.

So, if the answer is so simple, then why is the question so complicated? The problem with debt settlement is not the legality of the practice, but the ethics of those who practice it, namely debt settlement companies. Unfortunately, a number of unethical debt companies have been found to take advantage of consumers’ financial strife to boost business.

They essentially promise clients unrealistic results and then charge them outrageous administration fees for services they never provide. Thus, we see that legislation is not so much to protect credit card companies, but in fact to protect unknowing consumers. For this reason, a number of states are requiring debt settlement companies to complete forms and register activity with the state’s Attorney General in order for them to be more easily tracked. This helps the government to identify unethical companies in a legal and ethical industry. The idea is to eliminate those companies that have

So, if you are considering joining a Debt Settlement program, relax! What you are doing is legal, ethical, and morally correct; just make sure that the company you chose is also!

By: Scott Wallitsch

Guide To Debt Settlement Programs

admin — Mon, 15 Mar 2010 14:47:35 +0000

What are Debt Settlement Programs?

Debt settlement Programs (a.k.a Debt Negotiation or Debt Reduction Programs) are debt relief programs that help you negotiate with your creditors to significantly reduce your overall unsecured debt (includes the original debt amount + interest charges and late fees). In layman’s terms, experienced negotiators help you alleviate your debt and pay up only a small portion of your total debt by identifying the best debt settlement program that suits your needs. Most debt companies can reduce your debt from 22% – 55% of your total debt. This allows you to settle your debt much more quickly. This kind of program is perfect for those who want to eliminate their debt in a couple of months.

Most debt settlement companies charge a client 9% – 14% of their total debt.
How does it work?

Step # 1
Decrease your Main Debt amount
Most debt settlement programs start by negotiating your main debt amount. On the average, the main debt amount is decreased by 35 % to 50 %.

Step # 2
Decrease Late fee charges
One of the reasons why debts increase to unmanageable amounts is the accumulation of late fees. In some cases, late fees can be more than the main debt amount. Most Debt Settlement programs work to remove the majority, if not all, of your late fees.

Step # 3
Decrease the APR (Annual Percentage Rate)
Just like late fee charges, the APR can also accumulate and add a whopping amount to your outstanding debt. Agencies negotiate to decrease this fee to a much affordable amount.

Step # 4
Pay the Monthly Settlements
Once your agency has settled the reduction of your total debt you must then make sure that you pay your settlements regularly. Keep in mind that your agency worked hard in reducing your debt to a manageable amount. Missing any payment might cause you more problems than what you had to begin with. The amount you have to settle is based on your current financial situation.

TIME FRAME
In most cases, the debt settlement process takes around 4-8 months. This timeframe, however, is not a strict rule. It can be reduced or stretched depending on the client’s request and capability of settling their account. It is not uncommon to hear that a normal credit card debt settlement can last up to 4 years or sometimes even more.

Why make use of debt settlement services?
Many countries all over the world are slowly waking up to the dangers of paying liberally through their credit cards. In many cases, even students right out of college are accruing debts that seem monumental. Bad debts can seriously affect your creditworthiness, making it almost impossible for you to get loans when you really need it. By availing of the services of a debt settlement agency, you can work out the easiest way to pay off your loans.

One of the best ways to get in touch with the best debt settlement companies is through online services that will give you access to a nationwide network of qualified debt relief providers. These services search the ongoing trends in the debt relief market and give you the best solution based on your unique financial needs. They do not require you to provide them with any secure or sensitive information. In most cases, you will get comprehensive data just by entering your debt amount, state and pin code into their search engines. With services such as these, debt settlement has never been easier.

By: Devendra Mishra

The Pros And Cons Of Using A Debt Settlement Company For Debt Help

admin — Sat, 13 Feb 2010 12:16:12 +0000

Unfortunately, like everything in life, there are pros and cons of using a debt settlement company for debt help. For those of us that are in debt and facing the possibility of bankruptcy, debt settlement seems like the best debt help option available. However, there are pros and cons which people should be aware of before they decide to move forward and enroll their debt in a settlement program.

Cons:

1. A debt settlement program can increase your probability of being sued: No one really knows what prompts a creditor to sue. A former debt collector, now an employee of DebtAbcs revealed that while collecting for creditors, the debt collectors received direct orders from their supervisors to send all accounts that were with a debt settlement program to their legal offices. Keep in mind that this doesn’t mean all creditors will sue you for being in a debt settlement program. It just means that there are creditors out there that don’t like the idea of debt settlement programs and will do what is necessary to make sure you continue to pay.

2. You can get lower settlements on your own:

The concept of debt settlement is not new. If you are disciplined enough and have strong negotiation skills, you can settle your own debts and probably pay less money than if you were to hire a company. It is not an easy process; if you have the extra time and skill, it is definitely something to think about before hiring a company.

3. You chose the wrong company:
Using the Internet to find help with your debt could put you at risk for stumbling upon a fraudulent organization. There are plenty of good companies out there, but there are also a ton of bad ones. Do your homework before taking that leap and risk being further in debt.

Granted there are some scary elements to hiring a debt settlement company. However, there are reassuring aspects as well.

Pros:

1. Great alternative to bankruptcy:

If you can find a debt settlement company that is reliable, trustworthy and acts in good faith, then you can get out of debt without ever having to file for bankruptcy. The approximate total time it will take to be out of debt and repair your credit will hover around five years. In the long run, when compared to bankruptcy, it’s the more attractive debt help option.

2.Convenient:
When enrolled in a debt settlement program, you only have to worry about making single monthly payments. Communication is now between your creditors and the debt settlement company. The embarrassing task of having to explain your financial hardship falls to the debt settlement company. You save time to devote other priorities in your life.

3.You save money:

As an example, you enroll 20k worth of debt into a three-year program. While in the program interest still accumulates on the debt at 29 percent, resulting in 30k in debt. The standard settlement rate is 45 cents on every dollar. Including the 15 percent company fee, after three years you will have paid about 18k. By comparison, repayment of 20k dollars with compounded interest becomes a 60k debt repayable in 45 years. You save 42k dollars if enrolled in a debt settlement program.

By no means, there are no perfect debt settlement company programs. However, at DebtAbcs we intend to analyze the pros and cons of company programs. This gives the consumer the opportunity to make an informed decision on the best debt option for their situation. We hope that this information we have provided will give you an objective perspective to consider when weighing all the pros and cons to using a debt settlement company for help with your debt. Stop by our website for more debt help information and advice.

By: Jade Lee

Debt Settlement Program – How to Locate a Legitimate and Established Debt Settlement Company Online

admin — Sun, 31 Jan 2010 18:41:50 +0000

While most of the people are aware of debt settlement as an option to eliminate debt or avoid bankruptcy, it is now important for them to be aware about the legitimate companies. Taking advantage of the situation, there are several fraudulent companies that have crept into the market blending in with the legitimate debt settlement firms. They promise to help you eliminate 90% of your debt or provide free service with hidden conditions. Be careful not to fall into their deadly trap and learn where to find legitimate debt help.

Some of the key points that would help you associate with the right settlement program.

A legitimate settlement will analyze your debt structure right before joining. They will study the amount you owe in secured and unsecured amount, in order to determine consolidation or settlement. Loans from multiple sources can be consolidated. If you have over $10k in unsecured debt a settlement is probably the most appropriate decision. The average settlement in this market is around 60% meaning if you owe $20k you should expect to settle for $8k with the help of a legitimate debt settlement service. The settlement company will check your debt and advise the appropriate action plan and will usually provide free counseling to determine the best course of action. They can charge you only after the settlement program begins and negotiation is signed. They will negotiate with the credit card company on your behalf to reduce the loan amount, once the negotiated amount is signed, the lender cannot make further calls to disturb you or sue you. Also the settlement firm should ensure that you don’t get any harassing calls from collection agencies.

The above listed points are the main task a relief firm would do for settlement. Besides, it is important to verify the credentials and authentication of the firm. I saw an advertisement of the debt relief company that had BBB engraved at the bottom of their homepage, but when tried to find its name in the BBB listing you could not see one. This is just an example. You must carefully verify:

The company is a member of The Association of Trade Settlement Listed in the Chamber of Commerce Accredited with BBB

You will save much trouble later, if you are a bit careful in the beginning. The best way to verify you are getting a legitimate company is to use a debt relief network.

By: Erik Stump

Debt Settlement Company – Four Things to Expect Before Visiting a Debt Settlement Company

admin — Sat, 30 Jan 2010 22:29:36 +0000

You might be thinking on how to overcome your debt problems and you have been searching for real guides and tips on how to settle this particular problem before it really disrupt your lifestyle. There’s one saying – “Let time heals your pain”, it means that you leave problems solved naturally as time passed by; but bear in mind that every minute counts and you have make use of it to get rid of your debt gradually. You should say this to yourself – “Time waits for no one!”

Before you decide to look for debt consolidation, you still have chance to eliminate your debt via debt settlement. The first thing would be on your mind is to find a debt relief company. Then, you would spend most of your time searching for the right debt relief company.

You’re planning to settle your debt by approaching a debt relief company, and then you have spent most of the time searching for the right debt relief company.

In order to avoid some hassle during your first visit to the company, there are few things that you need to expect:

1. Meeting with a credit counselor

You’ll be expecting a counselor to understand your current financial situation and this person in charge will make possible arrangements between you and your creditors. You’ll be consulted about the changes of your credit extensions from the creditors. Remember to bring along your supporting documents for verification.

2. Be honest about your current financial situation

You are required to reveal your current financial situation in order that they can see whether they can help eligible for their debt settlement program.

3. Negotiation between the debt relief representatives and the creditors

Once you’ve disclosed your financial situation to the counselor, there will be a negotiation between the debt relief representatives and the creditors so that the creditors would decide whether you’re capable to settle your debts within certain period of time.

4. Once you’re eligible for the settlement plan – start making payment!

The company will then set up a payment plan as you are required to make a fixed monthly payment to the creditors.

As mentioned earlier, “Time waits for no one” – you have to be fully prepared and start to take actions by calling up debt settlement companies at your area. Take this opportunity to tackle your debt problems as it requires perseverance and self-discipline to achieve debt-free life.

By: Jaden J Jones

How to Choose a Debt Settlement Company

admin — Sat, 07 Nov 2009 16:19:17 +0000

The only one that is going to get you out of debt is you. That doesn’t mean that you have to do it alone. There are many programs available that can assist you in becoming debt free.

One of those options is to hire a Debt Settlement company to negotiate your debts with your creditors on your behalf. Debt Settlement has been recognized by Master Card as a legitimate course for individuals looking for debt solutions, read more by visiting:
www.mastercard.com/us/personal/en/securityandbasics/debtknowhow/payoffyourdebt/index.html

Some readers have emailed us asking advice about choosing the right company. Here are some of the questions you should ask:

1. How many customers have they serviced?

2. What is their current dollar amount of debt under management?

3. What is their average settlement rate with creditors?

4. What type of customer support do they have in place (i.e.; amount of staff in their call centers)?

5. Do they have 24/7 customer account access?

In addition to the above, make sure that the account you set up to put funds towards your debt settlement program is controlled and accessed only by you. Also, make sure that the company is a member of a professional trade organization such as TASC (The Association for Settlement Companies). They ensure that their members meet the highest industry standards and practices. To find out more about task visit www.tascsite.org

Based on the above criteria, we have identified two great companies that have the right answers to these questions.
Top 2

1. DebtXS, LP – Addison, TX http://www.debtxs.com or call at 800-841-9785

2. Knock Out Debt – Los Angeles, CA http://www.knockoutdebt.com or call at 888-443-3328
As always, if you want to
learn more about your financial options, log onto www.debtreliefoptions.com

Jon Noble

Staff writer

Debt Relief Options

asktheexperts@debtreliefoptions.com

By: Jon Noble

How To Select A Debt Settlement Company

admin — Thu, 06 Aug 2009 18:09:16 +0000

A debt settlement company works towards negotiating the amount of debt with creditors. These companies devise a monthly savings plan, based on the total amount of debt a borrower has. When a borrower saves enough money to fully settle the debt, he or she can write a check to clear the debt. In addition to their service charges, debt settlement companies charge an initial administration fee to set up a borrower’s account. Different debt settlement companies have various sets of standards, and their service fee depends on the total amount of debt a borrower has. Settlement of debt refers to relieving a borrower’s debt, for a minimum possible amount, in the shortest possible time, without filing for bankruptcy.

A debt settlement program actually reduces the total amount of loan to a manageable size. Hence, borrowers need to understand the following points regarding debt settlement: -

- Good debt settlement companies negotiate with creditors to bring down the loan repayment by up to 40-50% of the existing loan, including all agency fees.

- Borrowers are advised to be well informed, and not rush into signing a contract with any debt settlement company.

- It is advisable to look for IAPDA (International Association of Professional Debt Arbitrators) certified professionals, because they have an in-depth knowledge of the laws of debt settlement, and are trained to fully understand the financial condition of borrowers. Most borrowers are able to liquidate their debts within 2 to 3 years using debt settlement programs.

- The service charges should be known well in advance to avoid confusion.

- Borrowers should ask the company’s IAPDA certified professional how his/her money will be used.

- Avoid a debt settlement company that takes the initial payments for its fees, because the major portion of this money should go towards loan repayment.

- The borrower’s monthly savings should be used towards the payment of loan within the stipulated time. Ascertain the amount of monthly income to be paid in the debt settlement savings account.

- Good debt settlement companies do not report to credit bureaus. Therefore, borrowers should choose such a company so that their credit report does not show negative remarks, or a low credit score.

- It is important to find out whether a debt settlement company provides any service guarantee. A contract should be signed between the borrower and the debt settlement company, stating that all or part of the client’s service fee will be refunded, if the company fails to settle the loan.

- Ask as many questions as possible. Borrowers need to familiarize themselves with all the terms and conditions of a debt settlement company before opting for it.

- Find out if the debt settlement company is a member of the Better Business Bureau.

- Choose a settlement company that keeps its client’s interests in mind.

- Borrowers should research their options before being enrolled in a debt settlement program of a company.

Debt settlement is a debt relief option that prevents a vulnerable borrower from declaring bankruptcy. Borrowers should choose a debt settlement company that guarantees debt relief.

By: Joseph Kenny

Legitimate Debt Settlement Companies – How to Find a Legit Company Online

admin — Mon, 13 Apr 2009 03:52:33 +0000

There are many downsides associated with the debt settlement program. A legitimate debt settlement companies will carry out the entire process keeping your interest in mind. If you can find a legit company then you might end up saving considerable amount that you owe to your creditors.

However if you get trapped into claws of one of the fraudulent companies then your debt will never be eliminated. Instead of getting freedom from debt, you will keep paying thousands of dollars to the scammers helping them to accumulate wealth.

There have been many reports of people being cheated by many fraudulent companies. They just kept dragging the settlement process. Sometimes their credit account were closed just before the due date where the client ended up paying more than their original debt as they also had to pay the commission of settlement company as well as the other costs of settlement.

The clients also have to face many other problems as the creditors increase their collection activities when the debtors initiate debt settlement. If you don’t have a fallen behind credit account you carefully need to consider this risk. To handle your debt case efficiently you need certified professionals having knowledge of the fair debt collection practices Act as well as other laws governing the debt settlement industry.

There are many government and non government organizations that help you to find a legit company online. If you approach any debt settlement company through these organizations then you can be assured that you are dealing with companies with verified and proven track record. To be a member of reputed debt relief networks or any of these organizations the debt settlement companies need to comply with all the standards of settlement industry.

To locate the best performing legit company online instead of directly approaching the company it is better to go through a reputed debt relief network. You can also approach the Better Business Bureau to find a trusted company. The Association of Settlement Companies (TASC) will also help you to locate a reliable program. In addition you can also trust a legitimacy of the company if it is member of the International Association of Professional Debt Arbitrators.

With little care you can avoid lot of scammers and serious consequences of the bad debt settlement program offered by the scammers. All the above mentioned organizations are reputed sources to find legit company operating to provide best debt settlement programs to their clients.

By: Diane Sheridan