When you contact the Debt Settlement Company (DSC), do you fee like they are more interested in getting you to sign up or do they take the time to do a complete analysis of your particular financial situation?  If so, be careful.  Read on to learn what to look for in the Best Debt Settlement Companies.

#1  The best debt settlement companies want to know several things about you and the debt you have incurred such as:

• What type of debt do you have?
• Is is secured or unsecured?
• How did you get too much debt or behind on your debt?
• Are you employed?
• What is your monthly budget?  In other words, how much to do bring home and how much do you pay out each month. VERY IMPORTANT!

• If you are retired, is your retirement income (pension, retirement fund, social security) deposited seperately and NOT CO-MINGLED with other income you might earn from another job.  This is critically important!

Click HERE for a FREE Debt Settlement Consultation!

#2 The best debt settlement companies will assign you a counselor or account representative that you can always contact with any question or concerns.

If you feel like you are getting "shuffled from one person to another", be wary!

#3 The best debt settlement companies charge fees that are consistent with the industry and comply with their particular states laws or guidelines.

#4 The best debt settlement companies will rate very high with their local Better Business Bureau (BBB). 

It is not necessary for them to be accredited with the BBB, but make sure to check out any complaints or issues this company may have had.  The best debt settlement companies should have an A  rating or higher!

Got to --> the Better Business Bureau

#5 Finally, the best debt settlement companies will follow through with you after you have requested information and or a financial analysis.  If you have to call them back or feel like they are "too busy" to help you,...keep looking!

If you have old credit card debt, you may be wondering how long a collector has to collect.

There was an interesting article in our local newspaper "The Oregonian" today, 4.2.12 entitled "More time for debt collectors".

Seems that three people sued the credit card/debt collectors (specifically Daniel N. Gordon, an attorney in Eugene that specializes in debt collection) that the creditors could not sue after 3 years because the statute of limitations was only 3 years in the state of Delaware (the state where the credit card company lists as the home office).

The Oregon Court of Appeals ruled that a creditor can have as long as the individual's state's statutes of limitation to attempt to collect a debt.

In Oregon and Washington, the statute of limitations is 6 years.

What does that mean to you?

If you have old credit card accounts that you have not paid on for over 6 years you have a couple of rights that you need to know:

If you see that debt (longer than 6 years) on your credit report, you can request that it be removed as the statutes of limitations has expired.

The credit reporting agency (usually Experian, Equifax or TransUnion) will investigate and if you are correct, remove the item.

In some listings on a credit report, you will see a notation of when this account is scheduled to be removed due to the statute of limitations being exceeded.

It is important for you to know what the statute of limitations is for your state.  You can find a listing (although you should double check on line at your State's official site) at:

                              LISTING OF STATE'S STATUTES OF LIMITATIONS

Another reason it is important for you to know your rights is if a collector sues by filing a claim in the county court of your residency, you can dispute the claim if the statute of limiations has expired (for your state of residency).

WARNING!

You need to be aware of the term "re-aging" debt.  If a collector calls and you agree to make a small payment to stop further action, etc., the statute of limitations clock is reset and basically starts over!

Therefore, if you have old debt, is is NOT WISE to talk with a collector or to make any acknowledgment of the debt.

According to the Fair Debt Collection Practice Act (FDCPA), if you make a request in writing to the collector, they must stop calling you at home or at work.

In making the request, DO NOT ACKNOWLEDGE THE DEBT!

State that you dispute the validity of the debt and that you are not responsible.

Demand that they cease from calling you at work and home or that you will report them to your state's Attorney General's office.

If you would like help, here's a link that will show you HOW TO STOP COLLECTION CALLS.

If you want to resolve an old debt rather than risk legal action from collectors, you should consider a Debt Settlement Program, where you may be able to settle the debt at 50% or less and have it removed from your credit report!

For more information, click the link below for a FREE CONSULTATION!

If you are like most everyone else out there, this recession has been a loud wake-up call to cut back on frivolous expenses, and save more. Now that the economy is slowly bouncing back, consumer spending is starting to rise and savings rates are going back down.

There’s nothing wrong with spending a little on unnecessary items once in a while, don’t neglect your long-term financial goals, like paying off debt, building an emergency fund and saving for retirement.

Here are 3 easy ways to save money and free up extra cash to meet your financial goals.

Tip #1: Create a Money Routine & Stick to it!

Having a routine when it comes to your money is one of the best ways to master your personal finances and avoid unnecessary expenses like overdraft fees and late charges. Most people don’t intend to make late payments or overdraw their bank account, but basic money management can fall through the cracks when you don’t have a money routine.

The solution for staying on top of your finances and never getting hit with expensive late fees is to create and stick to a Money Routine. Set aside a couple of hours, one day each week to balance your checking accounts and pay bills or set up bill payments online. 

By sticking with your routine, you will accomplish more in your financial life, like following a budget, closely monitoring your investments, and SAVING MORE MONEY! It’s also a great way to catch a would-be identity thief who could wreck your finances.

Tip #2: Calculate how much TIME that item will cost you before you buy

A great way to rein in spending is to consider what an item costs you in time, rather than dollars, before you buy it.

I’ll use Sarah as an example. She works as an administrative assistant in an insurance office and earns $15 per hour. Whenever Sarah is trying to decide whether to buy something, she divides her hourly wage into the price to figure out how much working time the item would cost her.

For example, if a new outfit cost $100, and you devide that $100 by $12 (the amount you make per hour), that new outfit will cost you a full day's work before you pay taxes!  Do you love that new outfit enough to spend that much time earning it?  If the answer is no, just walk away, and save your hard earned money for something that is worth it.

Tip #3: Be a Smart Grocery Shopper

Most people think they can save money by eating more home-cooked meals. But don’t be fooled.  Buying groceries won't automatically save you money. If you show up at the supermarket hungry and without a plan, you can easily buy more than you need or make expensive choices.

To save on groceries, always plan a menu for the week.  Make sure to plan a couple of nights to eat up those left overs you are sure to have. Try making the main dish of one meal without meat to save more and eat healthy. Coupons can certainly help lower your food bill, but don’t get lured into buying something you don’t need or that isn’t a healthy option, just because you have a coupon for it.

When you’re at the grocery store, only buy what you can eat. Prices for non-food and some non-perishable items—like paper towels, soaps, toothpaste, and drink mixes—can be too high. Do your research to see if prices are lower at local discount warehouse stores or drugstores.

You might be surprised by how much small changes can reduce anxiety about money, improve your financial life, and make you feel more in control of your financial future.

Do you find it difficult to manage multiple debt payments and due dates each month?  If you don't stay organized you can easily pay your bills late and that can add up to hundreds of dollars in late and over limit fees. 

One way to help with this problem is to combine your debt into one low interest Debt Consolidation Loan. 

5 Benefits to Debt Consolidation Loans

#1 Consolidate Your Debts Into One Monthly Payment: Using debt consolidation loans, you can pay off all or most of your unsecured bills (credit cards, payday loans, medical bills etc) at once. You're then left with a single loan, which you'll repay through an affordable payment plan.

#2 Eliminate collection calls: You can use your Debt Consolidation Loan to pay off debts that are past due or in collections.  This will eliminate harrassing calls and letters from your creditors and collection agencies.

#3 Reduce Your Interest Rate: Debt Consolidation Loans are often offered at lower rates than credit cards.  By combining your high interest credit debt into a low interest Debt Consolidation Loan, you will reduce your monthly payment and save money.

#4 Easier Monthly Budgeting: A Debt Consolidation Loan offers a monthly payment that stays the same over the course of the loan.  This one consistent monthly payment makes monthly budgeting much easier.  Create your household budget using this FREE BUDGET WORKSHEET.

#5 Improve Your Credit Score: When you pay off multiple debts with a single Debt Consolidation loan, and making consistent monthly payments, your credit score will improve quickly.

It can be difficult to qualify for a Debt Consolidation loan. If you are not able to qualify for a Debt Consolidation loan, you may want to consider enrolling in a Debt Consolidation Program instead.  These programs combine your monthly debt payments into one lower payment while reducing your interest rate and eliminating your debt in just 3-5 years!

For more information on Debt Consolidation and other Debt Elimination programs, please give us a call or simply click on the link below for a FREE DEBT ELIMINATION SUMMARY!

Have funds been taken from you bank account by one of your creditors?

If you get behind on your payments to your creditors, they can legally seize funds from your bank account!  Are you behind on any debts such as:

• Credit Cards
• Pay Day Loans
• Personal Loans
• Car Reposessions
• Medical Bills
  

If you are behind on your payments, don't worry quite yet.  A creditor can take a number of steps to collect, but they cannot contact your bank and take money out of your account without a WRIT OF GARNISHMENT OR LEVY.

A creditor can attempt to collect an unpaid, unsecured debt with:

• Phone calls (stop the collection calls --> CLICK HERE)
• Letters
• Summons to be awarded a DEFAULT JUDGMENT

Even if you get behind a month or so on a credit card bill, your creditor cannot go to your bank to request funds without first going through a series of legal attempts to collect.

Having said that, a creditor/collector is PROHIBITED from violating the Fair Debt Collection Practices Act (FDCPA). If you feel that you are being harassed by creditors, take some time to LEARN ABOUT YOUR RIGHTS.

If a credior has been awarded a judgment concerning the debt you owe, then they can go after your bank funds!

There are ways to stop a bank levy or to recover funds taken or frozen due to a writ of garnishment or levy having been presented to your bank. We can help.  Give us a call or click the link below for a free consultation!

Can a debt collector call me at work?

Creditors are notorious for violating the Fair Debt Collection Practices Act (FDCPA).  This LAW is supposed to protect consumers from unscrupulous and ILLEGAL debt collection activity!  However, most consumers are unaware of their RIGHTS UNDER THE LAW and are intimidated.

The Federal Trade Commission (FTC) has very good information that every consumers should understand.  Click her for a FREE GUIDE FOR CONSUMERS.

A debt collector is PROHIBITED from calling you at work IF they have been told (orally or in writing) that you are not allowed to receive calls at work.  If you are getting calls at work, here's what you need to do to STOP THE CALLS.

1. Write a letter demanding them to stop contacting you at home or at work.
2. Send the letter by registered mail so that you have proof that the collector received it. (pay for a "return receipt")
3. Make a copy of your letter. 

Once the collector receives your letter, they may not contact you again, with two exceptions:

• A collector can contact you to tell you there will be no further contact or
• A collector can contact you to let you know that they or the creditor intend to take a specific action, like filing a lawsuit.

If they continue to call, you can report their ILLEGAL ACTIVITY to your state's Attorey Generals office.

Did you know? A debt collector in prohibited from:

• Calling before 8am or after 9pm at night.
• Using harassment such as making threats, using obscene language or repeatedly calling many times a day.
• Making false claims such as claiming to be an attorney or government representative.
• Misrepresenting the amount you owe.
• Making false statements.  (They cannot say that you will "go to jail" or "be arrested" or even claim to take legal action if in fact, they do not do so.)

If you have been receiving collections calls and would like help with stopping the calls and eliminating the debt once and for all, our Solutions Specialist are here to help.  Give us a call at 877-492-4109 or click on the link below!

Can Social Security be garnished?

"I got a call today and the collector told me that if I didn't send them money today my social security benefits could be garnished." -Anonymous

Before you start to panic, you need to know your legal rights according to the Federal Trade Commission and the Fair Debt Collection Practices Act. 

The following benefits ARE NOT SUBJECT TO GARNISHMENT:

• SOCIAL SECURITY BENEFITS
• SUPPLEMENTAL SECURITY INCOME (SSI)
• VETERANS BENEFITS
• CIVIL SERVICE and FEDERAL RETIREMENT and DISABLILTY BENEFITS
• MILITARY ANNUITIES and SURVIVOR'S BENEFITS
• RAILROAD RETIREMENT, MERCHANT SEAMAN WAGES
• LONGSHOREMAN'S and HARBOR WORKER'S DEATH and DISABLITLY BENEFITS
• FOREIGN SERVICE RETIREMENT and DISABILITY BENEFITS
• FEDERAL EMERGENCY MANAGEMENT AGENCY FEDERAL DISASTER ASSISTANCE

Although these benefits are EXEMPT, it is very important that you are extremely careful about the funds in your bank account!

As long as the funds in your checking or savings account only came from benefits (such as above) and ARE NOT CO-MINGLED with income you may earn in addition, then your account cannot be levied.

CO-MINGLED means that you deposit exempt benefits (such as above) with other income:

• W-2 income from you job
• Part-time income
• Funds your receive from any other outside sources

 DO NOT DEPOSIT WITH THE FUNDS FROM

YOUR EXEMPT FUNDS!

If you have another job, make sure to either just cash that check or open another bank account, preferably in another bank for those funds.

If you have a substantial amount of un-secure debt such as credit cards, personal loans, collections, or medical bills, and are not able to keep up with the payments, you need help!

Since most debt collectors are professionals, trained to say anything in order to get you to send them money, you should consider the services of a DEBT MANAGMENT COMPANY.

They may be able to:

• Limit or stop the harassing calls
• Negotiate a reduced settlement help lower your payments and fees
• Help improve your credit score as debts are paid off
• GIVE YOU PEACE OF MIND!

Did you receive a Summons? If so, we can help you. Request more information or give us a call for a FREE consultation!

photo by: aflcio

Even though you are behind on your debts, your creditors do not necessarily have the right  to garnish your wages!  An Oregon wage garnishment can be stopped, but you must understand the process.

Once your account is delinquent 150-180 days , and you have received numerous calls and letters, your account will usually be turned over to a collection agency. If, after the collection agency has called you morning noon and night, they may decide to FILE A COMPLAINT.

After the collection agency files a complaint, you would receive a SUMMONS.  If you have received a SUMMONS, you can read more by clicking here -->>  "I Received a Summons".

Although it can be frightening to have someone knock on your door and serve you with a Summons, try to stay calm.  Most of the time, a STIPULATED AGREEMENT can be negotiated.  When a stipulated agreement is reached, the collections company will agree to accept payments and not apply for a garnishment.

A Stipulated Agreement can help if:

• You currently receive W-2 income from your employer.
  
• You usually keep a substantial amount of money in your bank account.

Why is a Stipulated Agreement better than a Wage Garnishment?

In a wage garnishment, an employer would be forced to deduct an average of 25% of your net take home pay each pay period! For most people, this would prevent them from paying their important bills like the mortgage or rent, food, and utilities.

By accepting a stipulated agreement, your monthly payment should be quite a bit less that the amount you would be garnished.

What types of income CAN'T be garnished?

• Pension
• Social Security
• Unemployment
  
• Disability
  
• Self-Employment Income (It is very difficult for a wage garnishment to be enforced as most self-employed people take a very small "income" and in most states, this would be exempt from wage garnishment.)

*If you have any income coming in other than those listed above, do not co-mingle the two income sources!  If you deposit your Social Security check into the same account that you deposit your paychecks from a regular job, ALL of the funds would be subject to garnishment.

Can you Stop and Oregon Wage Garnishment and settle the debt for less once you have been served the summons?

YES!  If you have access to funds that equal anywhere from 50% -70% of the balance, you may be able to negotiate a LUMP SUM SETTLEMENT.

However, once the judgment has been awarded, and the Writ of Garnishment has been applied, the collection agencies are not usually willing to take a low settlement.

KEY TAKEAWAY -  THE WORST THING YOU CAN DO  IS TO DO NOTHING!

If talking to your creditors and/or collection agencies frightens you, our professional and experienced Debt Negotiators can help!  Give us a call or click on the link below for more free information.

DIY credit repair is not as hard as you think!

If you think you have errors on your credit report, there are steps you can take to correct them without paying a so-called "credit repair company".

BY THE WAY...DO NOT FALL VICTUM TO SO CALLED CREDIT REPAIR SCAMS THAT CLAIM THEY CAN REMOVE NEGATIVE ITEMS AND INCREASE YOUR CREDIT SCORE...FOR A FEE!

First, you need a FREE COPY OF YOUR CREDIT REPORT.

Each of the three major credit reporting agencies will have on line information on how to submit challenges to errors on their reports:

• TransUnion
• Experian
• Equifax

1.  Get proof of payment or settlement for the account in question:

Let's say you paid off a credit card bill and yet there is still an outstanding balance showing either to the original creditor or to a collection agency.

• Request copies of cancelled checks from your bank
• Print online report from your bank
• If you have the last statement show a zero balance...even better!

2.  Follow the instructions for each reporting agency to submit or open a challenge to your report.

You will be assigned a FILE NUMBER.  Make sure to write it down or better yet, make a copy of the page.

3.  The credit reporting agency will contact the creditor about the account in question. 

This may take up to 30-60 days.

4.  If you do not receive an email or letter within 45 days, check back with the credit reporting agency to get an update on your open file.

Your proof of payment should do the trick, but in some cases you may need to MAIL copies of proof of payment with explanation. The point is...DON'T GIVE UP! The credit reporting agencies want to provide an accurate report and will correct errors when proven to be errors.

If you are having trouble paying off credit card or other unsecured debts, we can help!

If you find that you have legitimate balances on some of your credit card accounts, a Debt Settlement Plan could be the answer!

Contrary to Michael Scott's opinion, you can't declare bankruptcy by simply saying it in public!

But that is not the only Bankruptcy Myth that is going around.  It is important to know which Bankruptcy Myths are true and which ones are just plain silly!  Here are 4 common myths that are absolutely NOT TURE!

Myth #1: You Can Only File Bankruptcy Once

You CAN file bankruptcy more than once. In fact:

• You can receive a discharge from a Chapter 7 Bankruptcy once every 8 years

• You can receive a discharge from a Chapter 13 Bankruptcy every 2 years

Also, if you complete a chapter 7, you must wait 6 years before filing a chapter 13. And if you complete a chapter 13, you must wait 4 years to obtain a chapter 7 discharge. 

Myth #2: A Bankruptcy Hurts Your Spouse

If you’re married, filing bankruptcy doesn’t affect your spouse’s credit. However, if you’re struggling to pay debt that’s in both of your names, then you should file bankruptcy together. Otherwise, creditors will simply demand payment for the entire amount from the non-filing spouse.

Myth #3: You Can Go to Jail if you Don't Pay Your Debts

No matter what anyone says—especially an aggressive debt collector—it’s not against the law to owe money. There is no such thing as debtor’s prison in the United States. 

Creditors can sue you, take you to court, lien your property, and garnish your wages, but they can’t send you to jail. You can only be arrested if you commit a crime, like fraud, hiding property to avoid a judgment, or refusing to pay income tax.

Myth #4: Bankruptcy is Expensive

The filing fees for chapter 7 and 13 bankruptcies vary, but aren’t more than $300. The real expense is hiring an attorney, which could range from $2,000 to $4,000, depending on the firm and the type of bankruptcy you choose. You can file bankruptcy without an attorney, but I don’t recommend it. A less expensive option is to hire a bankruptcy paralegal.  They can do everything an attorney can do, but usually charge much less!

While bankruptcy may be inevitable for you, there are other options that can help you to eliminate your debt without filing bankruptcy.  Debt Consolidation and Debt Settlement are some of the choices you have when you are struggling to pay your debt.  For more information, click on the link below or ask a question in the comments section at the end of this post!