Got Wedding Debt?

The average wedding costs approximately $26,000. No wonder many couples find themselves entering their new marriage in debt. Money troubles are the number one cause of marital discord and you don’t want them hanging over your new marriage. Here’s how to enjoy your life as newlyweds free from debt.

First determine how much money was given as a wedding present. Many guests give money rather than a registry item. Instead of using this money on your honeymoon, or on other things that you want to buy, save yourself some interest charges and put that money towards your debt as soon as possible.

Put off the honeymoon. Couples are beginning to do this more and more as they see the advantages of starting their life together with a good cash flow. If you really want to go away with your sweetie directly after the wedding, consider going to a bed and breakfast somewhere within the country above jetting off abroad. This is extremely romantic and allows you to enjoy some alone time together without driving yourselves further into debt.

Sit down with your new spouse and create a budget. Every penny you make cannot possibly go towards paying off your wedding as you still have all of your regular bills and living expenses as well. Creating a budget will tell you how much you can afford to pay every month and where that money will be distributed. After setting your budget, it’s extremely important that you stick to it.

When you are putting the figures down onto paper, see what loans have the highest interest rate. Usually these are credit cards with interest rates being as high as twenty-one percent! It’s important that you pay these off quickly otherwise, you will end up collecting huge interest charges every month and it will become increasingly harder for you to clear your debts. The next step is to pay off the loans with the largest amount. Decreasing the loan amount decreases your interest and the loan will become more reasonable, changing from the one that doesn’t seem as though it will ever be paid off to the one that can be paid off next month!  Another option is to use the Debt Snowball method.  Whatever method you choose, stick to it!

If the bills seem too overwhelming, seek professional help from a financial consultant. These people you can meet with to review all of your income and expenses and will help you allocate where your money should be going on a monthly basis. Remember an objective third party does not have the same emotional attachment to your money you do. Once they have given you a plan, make sure that you follow it.

The most important thing when it comes to wedding debt is not to argue about it. It makes it very difficult on a new marriage when you not only have money troubles but are also fighting over them. You both enjoyed a wonderful day and you’ve both got to determine how you’re going to pay for it, together. You have a lifetime ahead of you, having to figure out how things are going to be paid for. Now is the time to find out how you work together to solve the problem.

Is there anything you can do about credit report errors?

YES!  If you find errors, you can contact the three main credit reporting agencies:

• Equifax

• Transunion

• Experian

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Experian (714) 830-7000

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What do you need to dispute a Credit Report Error?

• A statement or settlement letter from the creditor showing that the account balance was paid or settled-as-agreed
• A copy of the canceled check proving payment was received

Follow up in about 2 weeks if you do not receive any confirmation that the error has been corrected.

BEWARE OF COMPANIES THAT CLAIM TO BE ABLE TO CORRECT ERRORS AND IMPROVE YOUR CREDIT SCORE! ! !

The Federal Trade commission (FTC) has good information on how to correct credit report errors.  CLICK HERE

For a FREE Credit Report, go to www.annualcreditreport.com.

If you need professional help, we have been helping clients for almost 10 years to settle debts for much less than they owe!

For mor information on fixing Credit Report Errors or to get help eliminating your debt, Give us a call!

1-877-492-4109

or Click on the link below

The doorbell rings and you are handed a summons regarding one of your past due credit accounts.

Now what?

First…DON’T PANIC!

• You are not going to jail!
• You most likely (about 99.9% of the time), will not go to court!
• They are not going to come take all of your belongings!

Next…DO NOT IGNORE THE SUMMONS!

For the sake of this article, we're talking about unsecured debts such as:

• Credit cards
• Personal loans
• Medical bills
• Personal line of credit
• Store cards, etc.

When a creditor cannot get a consumer to pay as agreed they may choose to start legal action in order to collect the debt.

A CLAIM will be filed in the county court where you reside.

Then, you will receive a SUMMONS. This is usually hand delivered.

The summons will state something to the effect that you have 20 or 30 days after receipt of the summons to APPEAR IN COURT TO ANSWER THE CLAIM.

An ANSWER is your side of the story if you feel you do not owe the amount of the claim.

Now, just because you don't like the additional interest, late fees and now court costs that have been added to the claim doesn't matter!

So, if you owe the debt, there is no reason to spend the time or money for an answer and NO, YOU DO NOT NEED TO GO TO COURT.

OK, THEN WHAT SHOULD YOU DO?

CONTACT THE CREDITOR OR COLLECTION ATTORNEY FOR THE CREDITOR!

If you are employed  and receive normal W-2 wages(not self-employed, we’ll  get to that later), then you should try to work out a repayment plan so that they don't proceed with legal action.

The Plaintiff is the Creditor and since the collection agency failed to get some kind of payment or repayment plan from you has decided to take the legal route in order to force your hand.

And, IT WORKS! You might have ignored the letters and calls up until now, but now they have your attention!

If a repayment plan cannot be agreed upon, then the creditor may decide to go ahead and apply for a court date.

They will win the judgment in favor of the plaintiff by default, as there is no need for you to show up as you have no defense…you owe the debt!

With a judgment entered in favor of the plaintiff, they can now seek to:

• Garnish your wages or
• Levy you bank account

But again, DON’T PANIC!

A wage garnishment is usually 25% of you net take-home pay, and your employer has no choice but to comply with the court order.

For most people, losing 25% more of your income would be devastating, and you would have to seek bankruptcy protection (Chapter 7 or 13).

But hold on… there is another option:

Most creditors will agree to a STIPULATED AGREEMENT.

It is an agreement (sometimes filed with the court) whereby you agree to pay $XXX.00 per  month until the entire balance (including court costs, attorney fees and back interest) is paid-in-full.

If you can and do get such an agreement, GET IN WRITING before sending any funds!

If you have a source of funds available (401(k), family, friends) so that you could get around 50% of the balance all at once, the creditor may accept that and close the claim.

Once again, GET IN WRITING before sending any funds!

BUT WHAT IF YOU ARE UNEMPLOYED, SELF EMPLOYED OR RETIRED?

Certain forms of income are exempt from wage garnishment:

• Unemployment income
• Social Security or Pension income
• Disability income
• Child support
• And in most states, net income

For more information about wage garnishment, visit: US DEPARTMENT OF LABOR.

If all of this is a little intimidating, you may need our help. We have been helping our clients settle accounts and avoid wage or bank garnishment for over 8 years and have the experience that you may need.

For a FREE, NO OBLIGATION review of your situation, click here.

In most states, a wage garnishment for non-payment of debt is approximately 25% of your net, after-tax income.

For most people, this would be FINANCIALLY DEVESTATING!

First, you need to understand how wage garnishment works:

• Your debts become delinquent because of non-payment.
• The calls and letters start.
• If repayment agreement cannot be arranged, the account is charged-off and placed with a collection agency and/or lawfirm/collection agency.
• More calls and letters.
• Again, if a repayment agreement cannot be arranged, the creditor may instruct the collector/law firm to FILE A COMPLAINT.
• Once the file is processed, you will receive a SUMMONS.  It states that you have 20-30 days to ANSWER or give cause why you do not owe the debt.
• Again, if a repayment agreement cannot be arranged, then a court date is set, the creditor or PLAINTIFF wins a DEFAULT JUDGMENT.
• Once the JUDGEMENT has been awarded to the PLAINTIFF, they can apply for a WRIT OF GARNISHMENT to your employer.
• Your employer has no choice but to comply with the WRIT OF GARNISHMENT or will face a fine from the court!
• You get your paycheck with an additional 25% reduction!

What can you do to stop a Wage Garnishment?

At this point, you need to contact the attorey for the plaintiff and try to negotiate a repayment agreement called a STIPULATED AGREEMENT.

A Stipulated Agreement is an agreement between you and the attorney/plaintiff/creditor that you will pay so much per month until the balance of the debt is repaid.

You may need to give the attorney financial proof that you are unable to pay, but most likely, they will agree to a plan whereby the monthly payment is something your budget can handle.

If you cannot come to an agreement, then you may be forced to contact a BANKRUPTCY ATTORNEY and seek BANKRUPTCY PROTECTION.

We have helped hundreds of clients, just like you, not only avoid wage garnishment, but also settle debts at a substantial reduction!

1-877-492-4109

Are creditors calling you at all times of the day and night?  Are you embarrased by collections agencies calling your workplace?  You don't have to put up with it! 

Federal law prohibits creditors from taking certain actions in attempting to collect debts. A creditor has the right to call or contact you if you are delinquent in your payments, but they must do so within the guidelines of the Fair Debt Collection Practices Act FDCPA.

Follow these 2 easy steps to stop creditor calls once and for all:

1. Submit a letter to the creditor demanding that they do not call you. To do so, you will need the address of the creditor. If you do not have a recent statement or letter with that information, you may need to call the creditor or go online.

Simply state that you intend to repay this debt (unless you are going to dispute it), but are not in a financial position to do so at this time. State that you do not want them to call you at home or at work about this matter anymore and that if they do so, you intend to contact the Federal Trade Commission FTC and the Attorney General in the state where you reside.

2. Send the letter by certified mail, but make sure you keep a copy for you file. It is worth the small fee to pay for a “return receipt” so that you can prove that they received the letter.

It's that simple.  The creditor may only contact you once again to state that they will not contact you again or that they intend to take action such as filing a claim for a lawsuit.

Sending the letter does not get rid of the debt, but it should stop the collector for calling for a few months at least. When a collection agency fails to collect a debt for their client (Citi, Chase, etc.) within 90-180 days, most creditors will take that account back and send it to a different collection agency. If this happens, you may need to repeat the process with the new collector.

1-877-492-4109

School's Out For the Summer!

Along with the warmer weather of summer in most cases also come extra expenses of summer. While you may budget your monthly expenses, it is also important to figure out what extra expenses you may have over the next few months and work them into your monthly budget instead of having to charge them.

Some examples of extra expenses are graduation and wedding gifts, summer vacation and kids activities. Graduation and wedding gifts can add up and if you have a number of weddings to attend you may have expenses besides the gifts such as travel, and extra clothing costs.

Especially, this year with other costs such as gas and food prices going up it is more important than ever to make room in your budget for the added expenses of summer activities. So, Before summer vacation burns a hole in your budget, take some time to plan ahead for those extra expenses

Here are some Budget friendly Summer ideas:

• Let’s Go Camping! A mainstay for school-aged children is summer camps, whether a day camp or overnight, and these activities can be expensive. According to the American Camp Association, more than 11 million children and adults attend camps each year. The average cost for a summer day camp is $184 per day. It’s easy to see how this expense can quickly drain the household budget. Community organizations such as the YMCA or Boys and Girls Clubs of America often offer less expensive campoptions for kids. For information on camps, parents can visit http://www.acacamps.org/.

• Fair weather sports. This is the time of year when people start participating in sporting activities, even those who aren’t avid sportsmen start participating in activities such as softball leagues, swim lessons and
  golf. Be realistic and budget conscious when outfitting yourself, or your child with sports apparel. Check out a thrift store, online store (like Ebay) or a used sports equipment store to save money. Choose a local public course to do your fair-weather golfing. The grass may not be as green as professional courses, but you will keep more green in your pocket.

• Gas prices are on the rise. Summer is the time of year when the price of gas goes up. Traveling consumers feel the impact when going on vacation, but they'll also notice the increased burden placed on the day-to-day budget. Faced with rising costs from other summer activities, higher gas prices have the ability to inflict pain on the wallet. So how do you prevent yourself from becoming one of the casualties of high gas prices? Pay attention to where and how you are driving. Plan out your day's
  activities and combine trips when possible.

• Let's have a party. Summer is a perfect time to gather friends and family, and celebrate the good weather and great food. Hosting a party however, can be expensive, when you factor in food, drink and other costs. When planning a party, involve your guests in menu planning. Ask friends to bring a dish to share to alleviate the burden on the host. You'll enjoy the extra savings, and the extra time with your guests.

• Greener pastures. A brown lawn in the dead of summer? Heresy. It goes against the keystone of homeownership – keep your yard looking beautiful at all times. But showering your lawn with affection, and water, can quickly drive up utility costs. Consider watering half as much, and only turn on the
  sprinkler in early morning or evening hours, instead of in the middle of the day. You'll maximize the impact and minimize the cost.

• Go for a swim. Taking a dip in the neighborhood pool can also take a dip in your wallet. Instead of paying for costly club memberships, use the park district or local recreational center instead. The costs are often less and the instructors are every bit as qualified. If you are considering a pool membership, inquire about seasonal memberships, from Memorial Day through Labor Day, instead of paying all year long.

• Taking a vacation. Don't let your summer trip take your budget for a ride. Think about alternatives. You can still do something memorable with a shortened vacation. Stay closer to home to save on travel expenses or, take a vacation that is just one or two nights away rather than a week-long expenditure. Bring groceries and cook on your own when possible to avoid costly meals at restaurants. Additionally, play tourist in your own hometown.

• Talk to a budget expert. Summer activities can add up, and planning for those extra expenses can mean the difference between busting a budget and maintaining one. If you are struggling with current budgeting
  expenses a Debt Relief Solutions Specialist can work with you to develop a game plan for your  day to day budget and make room for summer fun.

Call 1-877-492-4109

Unless you've been living under a rock, you've probably heard of Dave Ramsey and his Total Money Makeover.  In this video, Budgeting Money "Makeover", he talks about budgeting and becoming the CFO of You, Inc.  What a concept!

This inspired me and I know it will inspire you too.  At the bottom of this post is a link to a FREE budget spreadsheet to get you up and running immediately! Enjoy

Key Takeaways from this video Budgeting Money Makeover:

1. Be the Money Manager of your own life!
2. A WRITTEN BUDGET is your money goal!
3. Spend your money on paper BEFORE your month begins!

If you have worked our your budget, and have found that there is litterally not enough money to go around then it's time for you to make some changes.  Dealing with Financial Stress is something no one wants to face. 

If you need help working out your monthly budget or you would like some advise or assistance in getting your monthly credit payments reduced, our Solutions Specialist can help.  Give us a call at 1-877-492-4109 or click on the link below for a FREE Personalized Debt Analysis.

If a debt collector contacts you and claims you owe a debt, how can you make them prove that you still owe it?

Under the Fair Debt Collection Practices Act (FDCPA), you have the legal right to make the debt collector prove the validity of the debt.

Every collector must send you a written “Validation Notice” telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don’t think you owe the money.

When you receive a letter from a debt collector, it basically states that you have 30 days to dispute the validity of the debt and that if you do not, then the debt will deemed to be valid. If you don't think you owe the debt, then you must send a WRITTEN REQUEST to the collector within 30 days of receiving the validation request.

Your Debt Validation letter should say something like:

Dear XYZ Collections:

I am sending this letter in response to a letter (or phone call) I received on (date).

Your reference number is 123456789.

I am requesting that you provide validation of this debt according to the Fair Debt Collection Practices Act.

If you do not provide validation, I will file a complaint with the Federal Trade Commission and your state's Attorney General for Civil and/or Criminal claims.

Sincerely,

It is best that you send the request via certified mail with a return receipt request.  This way, you can prove that they received it.As soon as the collector receives the written request, they cannot contact you unless it is to provide you with proof that the debt is valid.

After receiving your request, the collection agency must send you proof that it owns or has been assigned the debt by the original creditor. It is not considered validation for the collection agency to state that you owe the debt. They must provide documentation from original creditor. 

If the debt collector does not respond to your request within 30 days, they may not continue to attempt to collect the debt from you nor can they list the debt on your credit report. However, if the debt collector does list the debt on your credit report, you can dispute the debt with the credit bureau.

Key Debt Validation Takeaways:

1. You have the legal right to make any debt collector prove the validity of the debt they are trying to collect.
2. Once you receive a collections letter, send them a Debt Validation Letter via Certified Mail.  The creditor mus receive this letter within 30 days.
3. If a creditor falsely reports a debt to your credit report, you can dispute the debt with the credit bureau.

Tired of Collection Calls? Click the link below for a Free Report:

phot by: Eleaf

Many consumers are drowning in debt such as:

• Credit Cards

• Store Cards

• Personal Loans

• Medical Bills

One solution is Debt Settlement.

When an account becomes very delinquent, it is often charged off by the original creditor and the account is assigned or sometimes purchased by a collection agency.

The goal of the collection agency is to get as much money from the consumer as possible.  Of course, they use methods that are border-line illegal or out-right in violation of the Fair Debt Collection Practices Act (FDCPA).

I’m not going to get into the techniques and how to combat them now, but if you would like free information, CLICK HERE.

After several months, a collector should be willing to accept a reduced amount to settle the account.

Depending on various circumstances, the reduction could be anywhere from 35% -50% of the current balance.

If a collector agrees to a settlement, there are a few things that you must do to protect yourself:

1.  Get a written settlement agreement before authorizing any payment!  Never agree to a settlement just with a phone conversation!
2. Once you have the settlement agreement in hand, then you can mail a check (my favorite) or authorize a check-by-phone (my least favorite) according to the terms of the agreement.
3. After the payment has cleared, get a copy of the cleared check or details of the check-by-phone for future proof.

It is not common, but once in a while a settled debt my resurface at another collection agency or still be showing as an outstanding debt on your credit report.

Creditors are supposed to send you a letter after the settlement stating that the debt has been officially settled as well as notify the credit bureaus of the same.

But, very few do.

If you get a letter concerning a settled debt, you can easily prove the settlement by faxing:

• A copy of the settlement agreement
• A copy of the canceled check or proof of check-by-phone from your bank statement.

Correcting a mistake on your credit report takes a little more time and effort, but you can do it yourself.

Contact the agency and send them the same proof as above.  You will need to follow up as they tend to take a long time to remove an incorrect or settled account from your report. There is no need to pay a “credit repair” company.