Choosing to enroll in a Debt Settlement program with Debt Relief NW or any other company can be a tough decision.  Every day we get asked some of the same questions over and over again about the Debt Settlement program. 

Below I have answered the top 5 most common Debt Settlement question to help you in making this important and life changing decision.

When will Debt Relief start negotiating my debts?

Once you have enrolled in the program, your creditors will be notified, and the process will begin. Your debts will be resolved as funds become available through your savings plan.

Will my creditors continue to contact me?

The original creditor retains the right to contact you, until such time as the debt has been transferred to a 3rd party for collection efforts. Because you may still receive phone calls from the creditors, we will provide you with the tools you need to handle those calls. Your creditors can also contact you by mail. If you have questions regarding any correspondence you receive, you should immediately contact your Solutions Specialist. They will handle all of your creditors and collectors on your behalf.

Do all of my creditors have to be included in the Debt Settlement program?

No. We will handle only those debts that you want to include in the program. Many people retain one credit account for emergency use. Discuss your situation with your Solutions Specialist.

How long will my Debt Settlement program last?

This depends upon the amount you can save monthly and how much debt you are have. At Debt Relief, we offer programs that can fit within any budget and can eliminate your debt in as little as 18 months. However, we will work with you to create a program that specifically address your needs and objectives.

Will I be able to get credit in the future?

Yes. When you have successfully finished the program, the debt you placed in our program will have a zero balance. Good cash flow and the ability to pay are what lenders look for. Clients are able to purchase homes, refinance and obtain credit cards, and re-establish their good credit rating.

Only you can know what is the best decision for you and your family.  However, our Debt Solutions Specialist are here to answer all of your questions and help you decide if Debt Settlement is your best option or if there is another program that would work better for you. 

Please submit your questions in the comments section below or simply give us a call!

1-877-492-4109

When preparing tax returns, we all try to find as many legal deductions as possible. But, figuring out just what you can deduct can be tricky.  One question we get here all the time is, "Can I deduct credit card interest?"

The answer is not just a simple yes or now, but it is SOMETIMES.  Let me elaborate.

According to the Internal Revenue Service (IRS), personal interest, such as interest paid to a credit card company, is NOT deductible.  However, it the credit card in question is uses for business or self-employment expenses, you can deduct some or sometimes even all of the interest paid to that credit card company using a Schedule C or Schedule C-EZ.

 When you are searching the BEST DEBT SETTLEMENT COMPANIES, here are 3 questions to keep in mind -->

#1 Do they have a good rating with the Better Business Bureau?

• Look for companies that have a Better Business Bureau (BBB) rating of B+ or higher.  It takes a lot of work for a company to receive and maintain a high rating with the BBB.
• Watch out for complaints and DO NOT DEAL with a Debt Settlement company that has a long list of complaints!
• Don't worry about accreditation. The BBB is a network of private companies that make money rating companies. They offer an "accreditation" to companies for a large annual fee in order to make more money.  whether or not a company is accredited is not the issue.

#2 Can you call the Debt Settlement company and talk to someone? 

When you call in to a good Debt Settlement Company, you should be able to talk to a live person that will listen to you and work with you to find the best solution possible. 

• Can you understand them?
• Do they make you feel comfortable
• Are they listening to you or are they just trying to talk you into what they are offering?

A quality company seeks to find the right solution for your specific needs and debt settlement is not always the best fit!

#3  Does the Debt Settlement company's website give you plenty of information that without forcing you to "complete the form"?

Quality Debt Settlement Companies will provide a lot of information...FOR FREE, without enrolling in their program. Look for a company website that is informative, educational, and easy to understand.  You should be able to know what the company is about and what they have to offer before you give out your contact information.

Want to know if Debt Settlement is the best option for you?  Click on the link below or call

1-877-492-4109

to talk to one of our Debt Solutions Specialists.

If you are just starting to build your credit or if you have bad credit history and are trying to re-build, a Secured Credit Card can help. 

What is a Secured Credit Card?

A secured card requires you to put down a cash deposit that will become the credit line for that account. For example, if you put down a $300 deposit; you can charge up to $300. You can add to the deposit in the future to add more credit.  However, sometimes a bank will reward you for good payment history and add to your credit line without requesting additional deposits.

Where can you get a Secured Credit Card?

Most large banks and almost all credit unions have secured credit cards available to their customers.  Check with your bank or credit union first to find out what kinds of secured credit cards they offer and what fees and interest rates are associated with them. 

If your bank or credit union does not offer Secured Credit Cards, you can check this list of Secured Credit Card Companies.

What’s the Catch?

As with any financial decision you make, you need to do your research and read ALL of the fine print.  There are great companies out there that charge low fees and will treat you well. But watch out for the few really bad companies out there!  There are some that will give you a Secured Credit Card, but require you to pay for an account insurance policy for $50 each month.   

The FTC has organized a crackdown on companies like this, but you still want to be careful. Gather plenty of information before you apply for a card.

What is the Best Way to Use Your Secured Credit Card to Build Your Credit?

Use your new Secured Credit Card to make a few small purchases each month, but NEVER charge more that you can pay off in full!  This is not the kind of card that you want to use to carry a balance.  By making purchases and paying off the balance each month, you will prove your credit worthiness and quickly build your credit!

Earlier this week, in the post Money Makeover for the New Year - Part 1, I talked about the first four steps toward making positive changes to help you achieve financial fitness in the New Year:

Step 1: Set Your Financial Goals

Step 2: Live Within Your Means

Step 3: Stop Using Your Credit Cards

Step 4: Keep and Eye on Your Credit Report

Today I will finish up this two part series with the final 4 steps of your Money Makeover:

Money Makeover for the New Year - Part 2

Step 5:  Creat an Emergency Fund

When life throws an unexpected event at you, and we all know this will happey, having an emergency fund can make all the difference.  Make a committment to save 5% of your income for the first 3 months.  Then bump that up to 10% for the next 3 months.  By the end of the year, saving will become a habit and you will have begun to build a sizable emergency fund. 

To help make this savings plan automatic and "pain-free", set up and automatic transfer of funds from your checking to your savings account after each pay day. Breaking up your savings over them month will seem easier than coming up with the whole ammount at once.

Step 6: Always Pay More than the Minimum Payment

I can't stress this enough, so I will repeat it...ALWAYS PAY MORE THAN THE MINIMUM PAYMENT!  Even if you can only add $5 or round your payment up to the nearest even number.  Every extra dollar you pay will help you eliminate your debt faster and save you thousands on interest over the life of your debt.

Step 7: Contribute to Your Employers Retirement Plan

Most employers will match your contribution into the companies retirement plan such as a 401K.  Not only are your preparing for your future, you are getting FREE MONEY from your employer!  If you are self-employed or if your employer does not offer a retirement plan, you can invest in an Individual IRA, Roth IRA, and/or plan for self-employed persons.

Step 8: Don't Hesitate to Ask for Help if You Need It!

After you have taken a close look at your budget and your overall financial situation, you may feel like eliminating your debt is never going to happen.  This couldn't be further from the truth.  You have several great debt relief options available to you. 

If you have made financial New Year's resolutions in years past without success, don't give up!  Try again using these 8 steps to a Money Makeover to build new habits and provide a better financial future for you and your family.

Welcome to 2012!  It is a new year, and most people are thinking about a total body makeover.  That's right, it's time to start that diet and get back to the gym.  But I bet your finances could use a makeover too.  Now is a great time to take a close look at your financial situation, set some goals, and make positive changes to help you achieve financial fitness in the New Year!

Money Makeover for the New Year

Step 1: Set Your Financial Goals

Before you can reach your goals, you first have to figure out what those goals are.  Do you need to eliminate debt, start saving for retirement, or maybe buy a house?  These things won't happen on their own.  Start by putting your goals in writing, so you can make a plan to achieve them.

Step 2: Live Within Your Means

Creating a monthly spending plan is aboslutely essential to your Money Makeover.  Start by making a list of your FIXED monthly expenses (rent, mortgage, utilities, car payment) and your VARIABLE expenses (groceries, entertainment, "mad money")  Use this FREE BUDGET SPREADSHEET will help make sure that you don't forget anything. 

Now comes the "hard" part.  Keep track of your spending each and every day.  At the end of your first month, you will be able to see how well you were able to stick to your new spending plan and make adjustments as necessary.  Maybe you don't need as much for groceries as you thought.  That extra money can be added to your savings or used to pay more to your credit cards to help your reach your financial goals even faster!

Step 3: Stop Using Your Credit Cards

In step 3 you learned how to live within your means.  That means only spending what you make and NOT reaching for those credit cards!  If you are scared to cut up your credit cards, you can freeze them in a block of ice to make them very difficult for to use! 

Instead of using your credit cards, look to your budget and only use cash, checks or debit cards.

Step 4: Keep and Eye on Your Credit Report

You should check your credit report at least once per year. This is quick and easy at www.annualcreditreport.com. By checking your credit report regularly, you can easily find and correct any errors.  For more information on DIY Credit Repair click here -->> What You Need to Know About Credit Card Debt Repair

Get started on these first 4 steps to your Money Makeover for the New Year, and check back later this week for part 2!

3...2...1...HAPPY NEW YEAR! 

It's that time of year again.  Time to ring in the New Year and make your resolutions.  But before the ball drops on December 31st, follow these 3 End of the Year Tricks to Save Money on Taxes!

#1: Donate to your favorite charity

Donating to charity is a great way to save money on your taxes.  When you make a donation to a qualified organization, you are eligible for a tax deduction.  If you're not sure tha an organization qualifies, use this IRS charity search tool, to look up organizations by name and location. In order to make your donation tax deductible, it has to be made before the end of the year and you must itemize deductions on your tax return.

How Do You Itemize Deductions?

Itemizing is simple and it can save you a ton of money. Each year you are allowed to claim either a standard deduction for your tax filing status or you can list out your deductions on Schedule A of IRS Form 1040.

The standard deduction in 2011 for a single taxpayer is $5,800. If you spent more than $5,800 during the year on certain types of deductible expenses—like charitable donations, mortgage interest, and a portion of your medical care—then you will save money by itemizing.

#2: Contribute the Maximum Ammount towards your Retirement Account at Work

If you have a retirement plan at work (401(k), 403(b), 457, or government Thrift Savings Plan) Find out how much you’ve contributed this year. In 2011, you can contribute up to $16,500 or $22,000 if you’re 50 or older.

Every bit that you contribute to a retirement plan on a pre-tax basis is income that you don’t pay tax on until you take a future withdrawal.

To do this, contact your benefits administrator at work to increase your final contribution for the year so you can max out the account or get as close as possible.

#3: Prepay as Many Deductible Expenses as You Can

Because you have to itemize to be eligible to claim most of available deductions, prepaying increases the likelihood that you’ll have enough to itemize in the current year.

Here are some deductible expenses you can prepay:

• Home Mortgage Interest: Pay your January mortgage payment by December 31 so you have extra interest to deduct for this year.

• Property Taxes: Most people receive a property tax bill in November, but it isn’t due until the following year. Paying the tax before the end of the year gives you another deduction, and maybe even an early-pay discount.

• Student Loan Interest: Even if you don't itemize, you are allowed to deduct up to $2,500 of interest paid on a student loan. However this is subject to annual limits on your income. By prepaying your January student loan payment by December 31, you will have a little more tax savings for the current year.

You can find what additional deductible expenses you can prepay by looking at a Schedule A.  (medical costs, legal fees, and unreimbursed business expenses, etc)

By taking the time to do a little End of the Year tax planning, you can save a bundle! If you want to make sure you are saving as much as possible, consider meeting witht a tax professional.  They review your situation and make sure you are not paying any more tax than absolutely necessary!

Only 10 shopping days left until Christmas!  It's not too late to make your list and check it twice. But if you are planning to credit cards to buy your gifts this year, you will pay a lot more than you bargained for.

Sometimes, using your credit cards is a necessary evil.  If this is the case for you, a good rule of thumb is to not put more on the cards than you can pay off in ONE MONTH!  According to ecomerce-guide.com 52% of Americans plan to spend $500 or more this Holiday season.  I don't know about you, but I'd have a hard time coming up with that much to spend out of my budget for one month. 

Use these tips to ensure that you keep your spending under control and have a DEBT-FREE HOLIDAY!

Tip #1: SET A HOLIDAY BUDGET

Before you head out to the mall, decide exactly how much you can afford to spend.  Try to allow a small buffer just in case.  Make a list of each person you need to buy for and allocate a set amount of your Holiday Budget for each person.

Tip #2: Make a List

Just like Santa, you need to make a list! Write down each person you need to buy for and allocate a set amount of your Holiday Budget for each person on your list.  Don't forget gifts for teachers and office party gift exchanges.

Tip #3: Don't Sign Up for a Store Credit Card

The discounts offered for signing up for a store credit card often sound like a good idea.  However, these store credit cards often come with unreasonably high interest rates.  If you can't pay off the balance in full, the interest will cost you far more than what you saved by opening the card in the first place!

Tip #4: Shop Online

Shopping online allows you to easily compare prices from many different companies from the comfort of your own home.  There are no pushy sales people there to talk you into spending more than you planned, so it is much easier to stick to your budget.  Also, always remember to search for a coupon code or promo code before you make any online purchase.  You can almost always find some sort of additional discount when you shop online.

If you do shop online, shipping costs can really add up.  Keep an eye out for free shipping promo codes or check out freeshippingday.com where a huge list of online stores offer free shipping on December 16th!

Tip #5: Re-Evaluate

Since Christmas is right around the corner, you may have already purchased most of your gifts.  If you have already overspent, don't hesitate to re-evaluate your purchases.  You can return any excess gifts or exchange them for more budget friendly items.  Also, keep an eye out for last minute Christmas sales.  Stores often discount items right before Christmas.  If an item you have already purchased has gone on sale, consider taking it back to the store for a price adjustment.

If you follow these 5 Last Minute Shopping Tips, you will have a less stressful Holiday celebration.  When you stick to your budget, you can relax and celebrate with your family and friends in peach without worrying about the bills to come in January!

Happy Holidays Everyone!

NO!! Stop!  Don't do it. . . .you'll regret it!  After filing for bankruptcy, you will be wailing like the witch from Wizard of Oz, "No. . .I'm melting. . .aaaaa!"

Although bankruptcy gives you a reprieve from your current bills, it will be on your credit report for 10 years.  Now, ask yourself this, would you rather have a ding--or rather a huge dent--dogging you for ten years or a small ding for two to three years by using Debt Consolidation or Debt Settlement programs?  Hold that thought while we take a trip into understanding a bankruptcy vs. debt consolidating and debt settlement programs and their affect on your score.

Bankruptcy And Your Credit Score:

In the latest report by the National Bankruptcy Research Center, there has been a slight decrease in bankruptcy filings as people are slowly pulling themselves out of the economy dump.  It also states that this year's first eight months have seen a 10% drop.  That is a start, but the national average shows that one out of 285 people are still filing to get the debt out from under them.  FICO has recently made available examples as to how many points a bankruptcy can actually have on your credit rating:

• Ironically, those that have a very high score can have a significant drop, indicating not even a dent, but a train wreck--could be 240 points or more
• Those who are already having problems with their debt may have just a dent--could be as low as 130 points

Even after filing, lenders require at least two years before applying for credit again.  They do this to give the person the time to begin rebuilding their credit.  Don't be a statistic.  Bankruptcy will only tell future lenders that you failed in meeting previous creditors' requirements.  There are better options. 

Debt Consolidation and Settlement Programs And Your Credit Score:

• Debt Consolidation is a combining all of your debt into one lower monthly payment.  You will generally get a smaller monthly payment, lower interest rate, and few if any fees.
• Debt Settlement Programs work with your creditors to settle the balance for less than owed. (Most of the time less than HALF of what you owe!)

Your score is affected, yes.  However, the score is far less affected than if you were to file bankruptcy, or do nothing.  Ten years is a long time to be haunted by bad credit.  In the two years it takes to apply for credit after filing bankruptcy, you can have your credit score back on track with Debt Consolidation and Debt Settlement programs.

For more information on your options, click on the link below or call 1-877-492-4109

photo by: photosteve101

It's almost impossible to live debt-free; most of us can't pay cash for our homes or our children's college educations. But too many of us let debt get out of hand.

Ideally, experts say, your total monthly long-term debt payments, including your mortgage and credit cards, should not exceed 36 percent of your gross monthly income. That's one metric mortgage bankers consider when assessing the creditworthiness of a potential borrower.

It's far too easy to spend more than you can afford, especially when you pay by credit card. The average U.S. household with at least one credit card carries nearly a $10,700 balance, according to CardWeb.com, and personal bankruptcies have hit record highs in recent years.

Of course, avoiding debt at any cost is not smart either if it means depleting your cash reserves for emergencies. The challenge is learning how to judge which debt makes sense and which does not and then wisely managing the money you do borrow.

Good Debt vs Bad Debt

Good Debt

Good debt includes anything you need but can't afford to pay for up front without wiping out cash reserves or liquidating all your investments. In cases where debt makes sense, only take loans for which you can afford the monthly payments.

Bad Debt

Bad debt includes debt you've taken on for things you don't need and can't afford (that trip to Bora Bora, for instance). The worst form of debt is credit-card debt, since it usually carries the highest interest rates.

Sometimes the decision to borrow doesn't hinge on how much cash you have but on whether there are ways to make your money work harder for you. If interest rates are low, compare what you'll spend in interest on a loan versus what your money could earn if it were invested. If you think you can get a higher return from investing your cash than what you'll pay in interest on a loan, borrowing a small amount at a low rate may make sense.

photo by: images_of_money