Debt settlement company

Do you want to know how to go about reducing debt? Well, we all do. Reducing debt is the key to gaining financial freedom and building wealth. And without debt, no matter how much we make, we can all build our way to financial freedom.

Credit card debts are the main source of debts that trouble Americans. There are a number of ways to go about reducing debts. Here are three simple ways:

Pay double the minimum payment Set up automatic payments with your bank Pay more frequently than once per month Let me talk briefly about each of these methods:

Pay double the minimum payment

When you’re really struggling with credit card debts, this sounds painful. But it’s key to reducing debts. By paying double the minimum payment, you will reduce (in the long run) the interest you pay and you will have less cash available to yourself (that’s the hard part!) so you will be likely to spend less. This all adds up to you spending less money and reducing debts.

Set up automatic payments with your bank

This is a great method for reducing your debt because once it’s set up, you don’t even have to do anything. Set it up with your bank — you can usually do this online — so that a certain amount is sent to pay your credit card debts immediately after you are paid. This gets you in the habit of reducing debt.

Pay more frequently than once per month

This is rarely talked about, but it is an effective strategy. If you pay $100 on a credit card each month, pay $50 of it in the middle of the month and the other $50 at the end of the month. This will help you to reduce the interest that accrues on the account (because the average balance on the card will be lower for half of a month. In the long run, this adds up and help you in reducing debt and eliminating your credit card debts.

Credit card debts don’t have to control your life. You should control your credit cards. These three tips will help you with reducing debt. If you want to eliminate all of your credit card debts, you need more than just those three tips. You need to stay on top of your finances, set a budget, and have a plan. Find a program that you can follow and learn as much as you can about finances.

By: Michael M Thomas

What happens if you do not pay credit card debt seems be a question that many people are asking during today’s economy. This question will not be answered the same depending on what you plan to do about not being able to make your credit card payments.

If you fall behind on credit card payments and become paralyzed to the point where you ignore the situation you are in, you are going to have problems. You will get collection calls from your credit card company for about six months. After that time, your credit card company may sell your account to a third party collection agency. They can be very harassing and down right nasty.

With the economy being what it is, more and more credit card companies and collection agencies are taking legal action. They will place a judgment on your credit report and in many cases will garnish you wages for the outstanding balance on your account. This is something you want to avoid at all cost. So, the sooner you face reality and begin to deal with your situation the better off you will be.

It is best to work with your lender and see what type of hardship programs they offer. Credit counseling may also be an option for you, but you will still have to make a 2 percent payment each month. Your collection calls will stop, your unsecured debt will be consolidated into one monthly payment, your fees will stop and your interest rates will be reduced significantly. But not everyone is able to make a minimum payment.

Debt settlement is growing in popularity as many people are being faced with bankruptcy. This is an alternative that can have you debt free in 12-36 months. Debt settlement is a debt help option where your credit card balances are reduced through negotiation.

By: Marjorie Salada

Amongst the many things you need to be leery about when signing up with debt a settlement service, one of the largest problems, is the actual program term. Since the program term will determine, not only the total amount you end up paying, but it also will determine your monthly payment.

Some companies will stretch their monthly term to 48 or 60 months, we have even heard of a company that offers an 80 month term.

You have to be careful with those types of companies. Since programs like that will most-likely get the client sued by the creditor, and they are most likely a scam debt settlement service. The company plans on the client being sued and take their fees from you long before it happens.

A debt settlement or debt negotiation program should not be over 36 months. And if you have under $70,000 in debt your program term should much shorter.

Since the faster the creditor gets paid, the less negatives can happen against you. First negative being, less late payments on your credit report and second being, less chance of being sued by your creditor.

Can you be sued? Yes, and don’t let any company tell you otherwise.

Is it likely you will be sued for a judgment and income garnishments? It will all depend on your situation, and whether it is “cost efficient” for the creditor.

So if your term is short like 12 to 30 months, your minimizing the risk, by paying them back faster. Plus it gets you out of debt faster too!!

The best way to go, is a term under 36 months with “No Pre-Payment Penalty” then you are in control of the term and you can pay more when you can afford to and the minimum payment other months. This way you are still assured the program in done in under 3 years but it could be much faster depending on your settlement amount and how much you pay each month.

By: Jeff T Forman