Monday, December 28, 2009

Is Using A Debt Settlement Law Firm Smart?

Unless you are residing under a rock, one should know that in the last couple of years our United States economic system has really gone down south. Folk have been losing employment, their pieces of property, and many their sanity. A single burden that has in reality been haunting everyone since this has happened is extraordinary amounts of unsecured credit card debt. People have been attempting to control large monthly premiums that under no circumstances seem to go down in addition to apr's which are extremely ridiculous.

One strategy that has been certainly proving to be a safe bet for most people is debt settlement; however there are two forms of credit card debt settlement programs. You can find business models that can be set up with a lawyer and then programs that can be setup with a regular business. The former is what will really offer consumers a superb possiblity to become debt free in the least amount of time with the least amount of concerns.

Using debt settlement the client will have to go late on their monthly installments and save money on the side. This will allow them to later on bargain for a one time lump sum final payment and close the balance due out. On many occasions the consumer will save just about 1/2 what they owe plus find themselves out of debt in just a couple years.

This is very good; however there are a couple of downsides with debt settlement that can make employing a lawyer much more opportune for the client. For starters once people go late on the bills the credit card banks will try and collect the debt by way of phone calls. A lawyer will have the ability to legally prevent collection agencies from consistently harassing the client, where a company can't.

One more negative for the debt settlement program is the possibility of getting sued. With having employed a law firm, then they will be able to under legal standing approach and still settle with a creditor who would be attempting to take someone to the courtroom. This is a tremendous benefit for an individual when using a debt settlement law firm over a company.

Perhaps though the most important grounds to use a lawyer is because credit card debt settlement businesses are going extinct. The FTC along with other regulatory bodies want to close down credit card debt settlement services which are not developed accurately and the vast majority are not founded right. Hence making the usage of a lawyer must more beneficial. When a debt settlement corporation is going bust and does not have the money to pay back its consumers who they currently can not service, who gets screwed? The client!

Consequently if you have have discovered you and your family to be drowning in sizeable measures of bad credit card debt then contacting a debt settlement law firm can be a very sensitive thought for you and your families personal safety. Staying stuck in consumer credit card debt that may never go away is a awfully dumb economic move to make and makes investing money almost impossible for the everyday American. You may come to realize how much less complicated month to month budget management will turn out to be when you no longer need to worry about high credit card expenses that must be paid with no finish in view.

Research a Debt Settlement Program

Tuesday, May 12, 2009

Get Out of Debt and avoid being scammed!

I have been getting quite frustrated lately with how much debt relief companies have been pretty much nothing short of scams. Simply promising people the world and not delivering. Seeing how long I have been in the business I figured I would write an article speaking about how to get out of debt without being scammed. This article goes in great depth of how to interview a debt analyst to ensure they have your best interest at heart and will do a job that benefits you in getting out of debt quickly and save you a lot of money. It is imperative that you know what to look out for when you are speaking to on of these representatives. There are certain red flags that can tell you right away not to deal with the company.

Thursday, January 8, 2009

You MUST Read This Article To Find Out Whether Your Credit Card Debt Relief Company Is A Scam Or Not!

Many people are in such bad shape and so desperate it puts them at a state of mind that makes it easy for them to get taken advantage of by an unscrupulous credit card debt relief company. After you get done reading this article you will have a much better understanding how to differentiate between a bad company and a good one.

Will Debt Ruin Your Life?

We have all heard countless horror stories about being stuck in credit card debt and the severe negative effects it can have on someone’s life. Debt is pretty much the evil twin brother of wealth; because people who are in debt are not wealthy and vice versa. Right now we are at a time financially that is very trying for us Americans. We are officially in a recession and can very easily end up in an all out depression. Needless to say people need more money to stay afloat and having credit card debt will keep you from having that money and like the title says can potentially ruin your life.

One of the biggest eye openers to this problem is watching the movie “Maxed Out” this documentary goes in depth just how bad of an effect debt can have on peoples lives. One of the most gut wrenching scenes in the documentary is when two parents were interviewed who both had children in college commit suicide because of credit card debt. People have lost so much because of what debt can do, one of the leading causes of divorce in this country is due to financial problems and one of people’s main financial problems is do to their debt situations.
The credit card companies themselves have devised a brilliant scheme to make the most amount of money off of people as possible. They do this through the minimum payment. Minimum payments will stretch out the time you are paying off your debts to over thirty years and you will lose at least four times the original balance to interest alone. The way they pull this off is when people start running large balances, then like a sucker punch the interest rate gets raised up putting people in a very compromising position. At this point most people could barely even afford the minimum payment let alone anymore and to make matters worse the vast majority of the payment is going directly to interest. So essentially you would be just as good off if you just flushed your money down the toiled bowl.

Many people have found that the best method of credit card debt relief is that of debt settlement. This is the fastest way to get out of the creditors money sucking web. Plus the savings off of a debt settlement are tremendous.

Tuesday, May 13, 2008

Who are the Best Debt Negotiation Companies?

Debt negotiation, also called debt settlement has become very popular over the past 4 years. Since the change in the bankruptcy law in 2005 debt negotiation has become the best alternative to people who otherwise would need to go bankrupt. Therefore opening up a huge market for debt negotiation services. But how can one tell the best debt negotiation companies from the ones who are rather inept.

For one any good service will be listed in the BBB, and have a good track record. This almost goes without saying. Second a company should charge a portion of their fee based on their performance. And by performance I mean how low of a settlement they can get for you. The lower the settlement the more money you as the debtor will save. There are far too many companies out there that charge just only a flat percentage of your total debt amount and collect 100% of it upfront before any settlements have been made. This fee setup leaves no incentive for the negotiator of the company to get the best settlement because they have already earned all of their money. When a negotiator works off of performance they will earn more by getting a better deal and saving the client more. Resulting in a win-win situation.

One more thing to look out for is whether a company is under investigation by the Attorney General. You should look up the states AG office for the company you are considering doing business with, and if they are being investigated then stay far away.

And of course a good debt negotiation service should have a very capable and friendly client services departement, that is capable of handling the day to day operations of the business. Way to many companies neglect to really improve and take pride in their client services resulting in the client not getting what he or she thought they were going to get.

One of the best debt negotiation companies around is the US Consumer Advocate, this organization has a stellar BBB record and works based on their performance, for people in debt needing help they are definitely worth talking too.

Wednesday, April 9, 2008

Which debtors are well suited for debt settlement?

To start off I would appreciate for my readers to first understand which consumers are in need of debt settlement as a means to become debt free. One illustration of those in need are the consumers who pay only the monthly minimum payment. Another prime candidate for debt settlement is the person who has already fallen behind. The next individual who is ready for debt settlement is the person who owns a home with money coming in who is sincerely thinking about filing for bankruptcy.

At this point you must be thinking what is debt settlement? Debt settlement is a method of gathering enough money to arrange a one time payment that is negotiated down to a lower amount than the original balance owed. The first issue that pops into mind for most debtors at this point is, how in the world do you get your creditors to agree to a lower amount?. Well the answer is pretty simple, you need to fall behind on the debts owed. The reason being no credit card issuer in the world is willing to negotiate on a debt that is current. Which is logical why would the creditors negotiate for less if they think you can continue to pay their monthly minimum payments for the next thirty years, earning them large amounts on interest. So one must come to grips that in order to achieve a decent settlement you need to go behind on payments.

So what are the advantages of going through this process? The greatest advantage of settling your debts is that of saving money. Which in turn correlates with the next benefit, which is saving years of time. With the debt settlement process a debtor can expect to save around forty to fifty percent of what is owed, and become free of debts within 2-3 years.

When searching for a establishment to employ for debt settlement one should do their research before contacting the company. To ensure the establishment you will be using is reputable and can get the job worked out the right way. A good spot to start is too check up on the Better Business Bureau, most good standing companies will be registered with the BBB. Another extremely wise measure to take when seeking out a organization to do debt settlement is checking the Attorney General. Many states' Attorney General will list any company that is being investigated. As you can tell any company being investigated will not be a decent company to sign up with.

Tuesday, March 25, 2008

Please do yourself a favor! Avoid Bankruptcy

It crosses many debtors minds when struggling in debt, at one time or another have contemplated the option of going through a bankruptcy proceeding. In this brief writing I am going to give you three very serious reasons why you should keep away from bankruptcy at all costs, if possible. Many people do not understand the deep negative blow a bankruptcy can have.
1. Filing for bankruptcy has an enormously negative effect on your credit rating and becomes a lifetime public record!

A bankruptcy proceeding is one of the worst derogatory remarks that you could have put on your credit report. Thus making any additional credit you try to get extremely hard, and if you do get credit it usually comes with a pretty elevated interest rate. Plus, it will remain on your credit history for between 7-10 years. Even when it gets removed from your credit history it stays a public record for the rest of your existence. So whenever you apply for new loans at any point in the future, if they ask whether you have ever gone through a bankruptcy proceeding by law you must answer yes.

2. Brand New Bankruptcy laws in 2005!

In 2005, Congress approved a law which forces anyone filing for a Chapter 7, which will wipe the table clear of all your debts much more difficult. Basically if you have an income producing job and assets than most assuredly you will go into a review to find out if you should do consumer credit counseling first for at the minimum 6 months. According to NFCC close to 80% of people who apply can't abide by the very regimented rules set from them to complete the program thus throwing them back into the bankruptcy proceeding. That's when Chapter 13 comes into the situation which is a form of personal bankruptcy in which the judge will decide how much you will pay back each collector you list based on your budget.

3. Court Controlled Income with Chapter 13!

Before the new law was approved in 2005 many people that would be able to claim Chapter 7, were now forced to go Chapter 13 in it's place. Chapter 13 requires that you review with the judge and make available all of your finances. You must show all sources of income and assets. The court will go over your expenses compared to your income and then figure out how much money you will have to dish out each month. The court decides this for you, leaving you with no say in this process. If you have liquid assets such as a paid off car they can force you to sell them, within State law, to pay down your debt. There are scheduled reviews each year and if your income increases you must tell this to the judge, this could bump up the amount you pay back. If you have two family cars you could have to sell one to help pay off your debts. They basically tell you what you can do with your income. If you have the higher costing cable you will be forced to cut back to basic cable, if you consume high priced steaks every day you will need to cut back to cheeseburgers. This can be a very hurtful and embarrassing process.

These are all extremely unattractive proceedings that debtors must be made aware of before dealing with a bankruptcy attorney. Many attorneys will not disclose these negative facts of bankruptcy. Bankruptcy is available for a reason and for some individuals they have no other debt relief system available to them and must file bankruptcy, however a lot individuals go into bankruptcy when it could have been avoided. A very attractive substitute option to bankruptcy is credit card debt settlement. With debt settlement in many cases you will save way more money than you could have with a Chapter 13, plus you will be out of debt much quicker, and not experience the multitude of negative consequences of a bankruptcy hearing.
Steve Bis is a credit card debt analyst with the US Consumer Advocate, which practices in debt relief.