Top 10 Things You Should Know about CONTROLLING YOUR DEBT!

#1 Americans are loaded with credit-card debt.

The average American household with at least one credit card has nearly $11,000 in credit-card debt, and the average interest rate runs in the mid to high teens at any given time.

#2 Some debt is good.

Borrowing for a home or college usually makes good sense. Just make sure you don't borrow more than you can afford to pay back, and shop around for the best rates.

#3 Some debt is bad.

Don't use a credit card to pay for things you consume quickly, such as meals and vacations, if you can't afford to pay off your monthly bill in full in a month or two. There's no faster way to fall into debt. Instead, put aside some cash each month for these items so you can pay the bill in full. If there's something you really want, but it's expensive, save for it over a period of weeks or months before charging it so that you can pay the balance when it's due and avoid interest charges.

#4 Get a handle on your spending.

Most people spend thousands of dollars without much thought to what they're buying. Write down everything you spend for a month, cut back on things you don't need, and start saving the money left over or use it to reduce your debt more quickly.

#5 Pay off your highest-rate debts first.

The key to getting out of debt efficiently is first to pay down the balances of loans or credit cards that charge the most interest while paying at least the minimum due on all your other debt. Once the high-interest debt is paid down, tackle the next highest, and so on. Another option is to use the Debt Snowball.  This system focuses on paying off the smallest balances first. Either way, make a plan and stick to it.

#6 Don't fall into the minimum trap.

If you just pay the minimum due on credit-card bills, you'll barely cover the interest you owe, to say nothing of the principal. It will take you years to pay off your balance, and potentially you'll end up spending almost three times what you orriginally charged.

#7 Watch where you borrow.

It may be convenient to borrow against your home or your 401(k) to pay off debt, but it can be dangerous. You could lose your home or fall short of your investing goals at retirement.

#8 Expect the unexpected.

Build a cash cushion worth three months to six months of living expenses in case of an emergency. If you don't have an emergency fund, a broken furnace or damaged car can seriously upset your finances.

#9 Don't be so quick to pay down your mortgage.

Don't pour all your cash into paying off a mortgage if you have other debt. Mortgages tend to have lower interest rates than other debt, and you may deduct the interest you pay on the first $1 million of a mortgage loan. (If your mortgage has a high rate and you want to lower your monthly payments, consider refinancing.)

#10 Get help as soon as you need it.

If you have more debt than you can manage, get help before your debt breaks your back. There are reputable debt counseling agencies that may be able to consolidate your debt and assist you in better managing your finances.

NEED HELP NOW? 

Call 1-877-492-4109 Today!

STOP! Don't make these mistakes dealing with collectors!  

Dealing with debt collectors rarely is a pleasant activity. They call you up at all hours of the night, send you nasty letters and make your life a living nightmare. Bad as it may seem, you can only make it worse by making one or more of these mistakes:

1. Lying: If you lie and you're caught in the lie, you can be sued.

2. Paying without receiving a confirmation letter: If you pay the debt, make sure you get confirmation that the account is closed. Also, check your credit report two months later to see that the line on your credit report shows "closed" or "settled" or "paid as agreed."

3. Failing to dispute a charge in a timely matter: If you believe you have been wronged, you must file the proper claim as soon as possible. The statute of limitations is very specific depending on your state; if you wait too long, you could lose your legal right to dispute the claim.

4. Ignoring the situation: If the collection agency has a legitimate claim against you, especially if it knows you have a job, things can only get worse, not better. Talk to an experienced Solutions Specialist to start investigating your options.

5. Bouncing checks: This will get your case sent immediately to the creditor's legal department.

6. Becoming intimidated: In the words of Eleanor Roosevelt, "No one can make you feel inferior without your consent." Don't let the collection person bully you around. The FDCPA states very clearly what a debt collector can and cannot do.

7. Letting the creditor or collector deduct money directly from your bank account: Never give the creditor your checking account number.

8. Making promises you cannot keep: Sometimes you will be tempted to just say, "The check is in the mail." But when the check doesn't arrive, they'll call even more frequently. They may even try to sue you for lying.

9. Avoiding the calls: They will only occur more frequently. You can stop the calls by taking a few simple steps.  

photo by: Qfamily

If you receive a wage garnishment, knowing your rights may save you hundreds of dollars!

It is a common misconception that a creditor can automatically garnish your wages if you fail to pay your debts!

If a debt collector is unsuccessful in collecting for unpaid debts, they may decide to file a claim in your local county court.

You would receive a SUMMONS, which is usually hand delivered to you.

The summons basically states that you have 20-30 days (varies by state) to "answer" the claim.  An answer is what you would do if you disputed the claim.  To file an answer will usually cost you a court fee and is a waste of time and money if you owe the debt.

If you do not contact the collector and arrange a repayment plan, usually called a STIPULATED AGREEMENT, then a court date is set and the creditor or PLAINTIFF will be awarded a DEFAULT JUDGEMENT.

In other words, the creditor wins the judgment by default because there was no reason for you to contest the claim since you owe the debt.

So now that the creditor has the judgment, what can the creditor do?

If you have a job and earn normal, W-2 income, your creditor can apply for a WRIT OF GARNISHMENT. This will be sent to your employer and the employer has no choice but to comply with the WRIT.

DON'T PANIC! There are several sources of income that are exempt from garnishment:

If you receive any of the following types of income, they are exempt from wage garnishment:

• Social Security benefits
• Supplemental Security Income (SSI)
• Welfare or public assistance
• Spousal support or child support
• Public or private pensions
• Veterans benefits and/or loans
• Disability proceeds of life insurance policies
• Cash surrender value of life insurance policies
• and many others

For a complete listing see Oregon Garnishment Forms.

Let's say you earn $15 per hour and work 40 hours per week.

     $15 x 80 hours =                                     $1200

2.  Total deductions withheld by law                $ 360

3.  Net Disposable Wage (2-1)                        $ 840

4.  Normal exemption (OR 75% of line 3)          $ 630

5.  Minimum exemption (OR $435 for 2 wks)      $ 435

6.  Greater of line 4 or 5 = exempt wages          $ 630

7.  Nonexempt wages (6-3)                             $ 210

In this example, $210 would be withheld from your BI-Weekly check to satisfy the garnishment until the entire amount of the debt is repaid!

If you are SELF EMPLOYED, receiving 1099 or commission income, is is unlikely that an attempt of wage garnishment by a collector will be successful.

Click below for FREE INFORMATION

How to Stop Wage Garnishment

How to Eliminate Your Debt for Less

How to Stop Collection Calls

If you have questions or would like more information, please give us a call!

877-492-4109

Have you heard of Credit Card Skimming?  No? Well, neither had I until today and yet I was a victim of it several months ago.  I've often wondered how someone was able to clone my card and go on a shopping spree at the Home Depot.  Today I finally got my questions answered.  

Here's how they did it:

Thanks to those magnetic strips on the back of credit cards, you can pay for gas at the pump or buy groceries at the checkout with one quick swipe through a card reader.

We all love this because it is convenient, but thieves have used this technology to create a new kind of fraud -->> Credit Card Skimming. It's one more danger we must guard all watch out for and another maddening example of how crooks find ways to turn technology against us.

Here's how it works

The bad guys buy magnetic card readers (readily available online) and attach them to legitimate card readers at ATM machines, gas station pumps, movie rental kiosks, or anywhere they think they can get away with it.

The counterfeit card reader captures the credit card information of everyone who uses the machine. (On ATM machines, crooks also attach tiny video cameras to steal PIN numbers.)

They then remove the phony device and use the stored information to buy stuff online or write the data onto new magnetic strips to make counterfeit credit cards or ATM cards.

Counterfeit Credit Card Trends

Portable skimmers (small enough to fit in a palm) can be used by anyone who handles your credit card, such as a waiter. All they have to do is get your card out of your sight for a second. That's enough time to swipe it through the device, and steal your information without you suspecting a thing.

Here's an example of what a credit card skimmer would look like on an ATM machine.  Notice the tiny pinhole camera.  Who would even think to look for that?

Follow these tips to protect yourself from Credit Card Skimming:

• Don't let your credit card out of sight. Watch carefully anyone who handles your card.

• Keep track of receipts and check your credit card statements regularly to make sure you authorized all purchases.

• Report any unauthorized purchases immediately to your credit card companies.

• Don't use a credit card reader if there are any signs of tampering. Don't swipe your card through devices that offer to clean the magnetic strip. Those are scams designed to capture your credit card information.

Have you been a victim of Credit Card Skimming?  If so, how did you resolve the issue?  I'd love to hear your story.  Let's chat in the comment stream below!

photo by: shawnzrossi

Need help eliminating your credit card debt?

Our Debt Consolidation and Debt Settlement programs can get you out of debt fast and save you money.  Click on the FREE Debt Summary link to get more information!

If you are behind in your credit card payments, it won't be long before you are contacted by debt collectors!

Here are 3 Illegal Debt Collection Practices to look out for!

#1  CALLING OVER AND OVER AT ALL HOURS OF THE DAY

According to the Federal Trade Commission (FTC) which enforces the Fair Debt Collection Practices Act (FDCPA), collectors are prohibited from using abusive methods to try to collect a debt.

A collectors main tatic is INTIMIDATION and their favorite method is to call several times a day at all hours.

The FDCPA states that a collector MAY NOT contact you before 8am (your time zone) or after 9pm at night.

#2  HARASSMENT

Again, the FDCPA specifically states that a debt collector MAY NOT:

• Use any threat of violence or harm
• Publish your name on a list of people who refuse to pay their debts
• Use obscene or profane language, including telling you how bad a person you are for not paying your bills!

#3  MAKING FALSE STATEMENTS

A debt collector also MAY NOT:

• Falsely claim to be an attorney or government representative
• Implying that you have committed a crime
• Falsely claim that they work for a credit reporting agency
• Tell you that you may be arrested if you don't pay
• Flasely claim that they will seize, garnish or sell your property UNLESS they are permitted by law to take action or THEY FOLLOW THROUGH.
• Send you anything that looks like an official court document if it isn't


What can you do if you have been a victim of these Illegal Debt Collection Practices?

To put a stop the harassing phone calls, you need to send a letter demanding that they stop.

Click here for a FREE GUIDE TO STOP THE CALLS.

You can contact your state's attorney general's office or the FTC to file a complaint. Most state's have separate divisions to handle consumer complaints.  (For example, in Oregon, you would contact the Oregon Department of Justice.)

If you feel overwhelmed, you may want to contact an experienced company that specializes in helping people deal with debt.

The point is...YOU DON'T HAVE TO TAKE IT!

I've heard a lot of buzz lately about the Debt Snowball method of paying off your debt.  Curiosity finally got the better of me and I decided to do a bit of research.  Here is what I discovered:

What is debt snowball?

Debt snowball is a process by which you list all your debts from lowest to highest and attack the lowest debt first. You need to pay minimums on each bill except for the lowest one. Pay as much as you can towards the lowest debt so that you can get rid of it as soon as possible. Next, you move on to the second lowest debt and the process continues till you are free from debt.

What are the advantages of debt snowball?

According to personal finance guru Dave Ramsey, “Personal finance is 20% head knowledge and 80% behavior”. Debt snowfall is based on this view. It rightly assumes that paying off smaller debts gives a sense of victory which motivates people to pay off all other debts.

It is relatively easy to pay off bigger debts using debt snowball method. Here you clear the smaller debts first. So by the time you reach the bigger debts, the extra amount that you can pay towards them increases. Consequently, it is possible to eliminate them quicker.

Another advantage of debt snowball method is the reduction of the total amount owed to creditors in a single month. This can save your neck in case you encounter an unforeseen situation like loss of job or medical emergency.

Is debt snowball the right choice for you?

Debt snowball is a simple debt reduction method which is suitable for people who have a wide range of balances. It gives you tangible results and motivation which is missing from other similar approaches. While is it most effective for people who need some encouragement in the form of quick results, individuals with a lot of patience will benefit more with avalanche approach because it is cheaper.

Debt snowball can certainly help you to climb up from the trenches. However, you should remember that it cannot make you debt free with the wave of a wand. But if you stick to it till the end then your patience will be certainly rewarded.

What if you can't even keep up with the minimum payments?

The debt snowball method sounds like a great idea, and for a lot of people it would make sense.  But what do you do if you can't even keep up with the minimum payments? 

If you need to get your minimum payments reduced, you should consider a Debt Consolidation program.  A Debt Consolidation program works along the same premise, but it also reduces your interest rates and monthly minimum payments!

If the payments of a Debt Consolidation program are still too high, then it's time to consider Debt Settlement.  A Debt Settlement program will significantly lower your monthly payment and eliminate your debt for less than what you owe. 

It's hard to decide which approach is your best option.  If you would like a free analysis of your current financial situation and some guidance in determining which option is right for you, our trained Solutions Specialists are here to help! 

Get answers TODAY 877-492-4109

What are your thoughts on the Debt Snowball?  Have you tried this method or are you considering it?  I'd love to hear from you.  Please post your thoughts or questions in the comment form below!

photo by: House Of Sims'

Beware of credit repair scams! 

Many so-called Credit Repair companies make claims like:

• "We can remove bad loans, bankruptcies, judgments and liens and improve your credit score!"
• "We can erase bad credit!"
• "Bad credit history?  We can improve your credit score in 30 days!"


Sound a little too good to be true?

Credit Repair companies target consumers with bad credit histories or low credit scores promising to clean up or eliminate negative items on their credit report...FOR A FEE!

You may have received a call or email and wondered..."How did they get my name and information?"

The credit reporting agencies sell information to companies! 

Nice to know!

Anyway, the truth is, these companies cannot provide an improved credit report by using methods or tactics that you could not do yourself!

Step 1:

If you haven't done so already, request a FREE copy of your credit report from each of the 3 major credit reporting agencies:

• Equifax
• Experian
• TransUnion

You can receive your FREE report by going to www.annualcreditreport.com

Step 2:

If you find inaccuracies and/or errors, you will dispute them by:

Write a simple dispute letter stating the dispute and provide copies of documents that support your dispute:

• Paid off statements
• Settlement agreement with copy of processed check
• copy of the error on the credit report

Step 3:

Mail your letter with supporting documents to the credit reporting agencies by CERTIFIED MAIL, return receipt requested so that you can document that the agency received it.

For addresses of the three major credit agencies, click here.

Credit reporting agencies must investigate your claims within 30 days.

They must forward all the relevant data that you provided to the company to the company.

Once the information provider receives notice of a dispute from the consumer reporting agency, it is required to:

• investigate
• review the relevant information
• report the results back to the credit reporting agency

If the investigation proves that your dispute is true, the information provider has to notify the credit reporting agency so that they can correct it in your file.

As you can see, this may take some time and effort, but you could certainly save yourself several hundred dollars by doing-it-yourself.

For a complete report from the Federal Trade commission, click below:  Credit Repair: How to Help Yourself

1)  KEEP MAKING MINIMUM PAYMENTS

The credit card industry loves this!  They know that if a consumer just makes the minimum payment each month, it may take 10-15 years before they ever pay off the account.

When you add up all of the interest and fees they charge, you could end up paying 3-4 times the original amount you charged!

2)  SECOND MORTGAGE OR EQUTIY LOAN

If you have equity in your home, you may be able to qualify for a 2nd mortgage or equity line of credit.

BUT BEWARE!  Right now, these credit cards are UNSECURED.  If you default, you have not pledged anything as collateral.

If you take out a loan against your home's equity and default, your home is at risk!

On the other hand, if you are disciplined enough to pay off the 2nd or equity line quickly, you could end up saving thousands of dollars in interest and fees.

3)  DEBT MANAGEMENT PROGRAM

If you are able to make the minimum payments and maybe a little more, then you should consider a DEBT MANAGEMENT PROGRAM.

If you qualify:

• You will have ONE MONTHLY PAYMENT
• Th payment is disbursed to each of your creditors for you
• Most creditors will LOWER your INTEREST RATE and ELIMINATE late or over-the-limit fees
• Creditors will not be calling
• You should be DEBT FREE in about 48 months or so

 4) DEBT SETTLEMENT PROGRAM

It is not unusual for people in today's economy to find themselves in a financial situation they have never been in before.

This could be due to several factors including:

• Unemployment
• Reduced hours
• Medical bills
• Divorce

If this is the case and you CANNOT AFFORD THE MINIMUM PAYMENTS, much less the payments required by a Debt Management Program, the a DEBT SETTLEMENT PROGRAM may be you best option to pay off credit card debt.

In this program, an amount of money you can afford is set aside so that at some time in the future, an offer to settle your account can be made.

You may be able to settle your accounts at 50% of the balance.

But, DEBT SETTLEMENT IS NOT EASY and most people cannot do it by themselves.

You may want to consider seeking professional help.

5) BANKRUPTCY

If you cannot make the payments required by either a Debt Management Program or a Debt Settlement Program, then your only option may be bankruptcy.

DON'T PANIC!

Get an appointment with a couple of BANKRUPTCY ATTORNEYS in your area.

There should not be any charge for your initial consultation.

You most likely will qualify for a Chapter 7 or 13, and the attorney will explain the differences.

If you would like a FREE CONSULTATION with NO OBLIGATION, then click below and we will send you some information that may be very helpful.

photo by: alancleaver_2000

You recieved a summons, now what?

If you have past due accounts and can't afford to make any payments, sooner or later you will get a summons.

It may be delivered by a police officer or someone else, but regardless, it is not a pleasant experience.

What should you do?

DO NOT IGNORE THE SUMMONS!

For the sake of this article, we're taking 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 and attempts to work out a plan or even after collector intimidation (you know...10 phone calls a day!), 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.

That means that if you wish to dispute the validity of the claim, you can follow your county's court procedure to give an ANSWER TO THE CLAIM.

The 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, NOW WHAT?

FIRST DON'T PANIC!

• You are not going to jail
• You most likely will not go to court
• Since we're talking about unsecured debt, no one is going to take your personal property
• Your not going to have to sell your home, car, boat, etc.

The creditor is hoping that you will call them and make arrangements for full repayment of the debt (plus all the interest, fees and costs) as you are afraid.

AFRAID OF WHAT?

If an arrangement or agreement cannot be reached, the creditor or PLAINTIFF, will be awarded the JUDGMENT.

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

• Garnish your wages or
• Levy you bank account

CONTACT THE CREDITOR OR ATTORNEY FOR THE CREDITOR! 

If you are employed (not necessarily self-employed) and receive normal W-2 wages, then you must try to work out a repayment plan so that they don't proceed with a writ of garnishment.

Most of the time the creditor or attorney will agree to a STIPULATED AGREEMENT OR JUDGMENT.

This says that if you make $XX.00 payments for some many months they will not continue with legal action.

If you get an agreement, MAKE SURE YOU GET IT IN WRITING!

You most likely will make a "check-by-phone" arrangement whereby they take the monthly payment directly from your checking account, so keep good records.

If you have access to make a one-time or lump-sum payment for 60%-80% of the balance, the creditor may accept that and remove the judgment.

Again, if you arrange this, GET IT IN WRITING!

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, we can help!

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