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,

Your Name
Your Address

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.

If you would like learn more about DEBT SETTLEMENT or what other options you may have to reduce or eliminate debt, click the link below or call 877-492-4109.

At some point in our lives, most of us have borrowed too much. If you're in over your head, don't despair. But make no mistake: You must learn to live on what you earn.

First, stop making excuses about why you're in debt. Don't blame the credit card companies or your parents. Put that energy into reducing your debt.

Debt can be extremely stressful, so tell someone you're in financial trouble. If you can't talk to a family member or friend, contact an organization that deals with debt reduction.

Then get a handle on how big your problem is. You can start with a free debt analysis, or you can sit down with pen and paper. When you have no idea how much you owe, simply establishing a number is a critical first step.

Don't avoid the B-word

The best way to start reducing debt is to set up a budget. It's not a punishment; it's a way of knowing exactly where your money goes. You'll need to add up your income and subtract your expenses, then set up a plan. 

Don't lie to yourself. Be honest about your spending habits and you'll end up with a more realistic budget.

• Budget more than the minimum on credit card payments. Paying the minimum is better than nothing, but you wind up paying a lot more in interest as you chip away at the balances.

• Start an emergency fund -- a savings account that should grow to at least three months of expenses. Even $10 a week can help if it means you don't have to visit a payday lender two months from now. Without an emergency fund, unexpected costs or loss of income can drive you deeper into debt.

What's your plan?

Use your budget to help you plan your debt-reduction strategy. List all of your debts, from the highest interest rate to the lowest. Aggressively pay down the highest-rate balances while making on-time minimum payments on the others. Your budget will dictate how much you can devote to paying down your balances each month.

In addition, consider these tips:

• If you have the money in savings, pay off what you can. The amount of savings income you get is usually dwarfed by interest rates you pay on your debts.

• Use any extra cash -- bonuses, extra paychecks, lottery winnings -- to pay down debts.

• Volunteer to work overtime, or get a second job.

If you can't earn more money, you'll need to spend less. Try these tips:

• Eat at home when possible. Avoid buying lattes and fast food. 

• Go cash-only. After the bills are paid, allot yourself a certain amount of cash for gas, groceries, etc. When the cash is gone, the fun is done. 

• Forgo premium cable-TV channels and high-speed Internet service. Your public library typically not only offers free Wi-Fi but computer access as well.

Face up to your credit cards

Once you're out of debt, how can you stay that way? Of course, stick to your budget. In addition, figure out how to deal with credit cards, which likely got you into this mess in the first place.

• Stop charging right now. 

• Cut up all but one of your cards, the one with the lowest interest rate. Use that card only for emergencies. 

• If you continue to use your credit cards, pay in full every month and avoid interest charges altogether.

• Pull your credit reports once a year and check them for errors. (Free Credit Report)

• Call your creditors and ask for lower rates.

• Don't use retail-store credit cards for the discounts. Chances are that card carries a high interest rate that you'll have to deal with if you don't pay off your balance each month.

When the collectors are knocking

If you've gotten in so deep that debt collectors are at the door, know your rights:

• Debt collectors may not harass, oppress or abuse you or any third party they contact. (See "What Can a Det Collector Do and Not Do?")

• They may not falsely imply that they are government representatives or that you have committed a crime.

• They may not tell you that you will be arrested if you do not pay your debts.

Whatever you do, don't give up. You didn't get into debt overnight, and you won't get out that quickly. Getting out of debt takes time and patience, but it pays big dividends down the road.

photo by: paalia

Are you trying to get out of debt but having trouble paying down your credit card bills?

If so, then there’s a good chance you are making some simple mistakes. If you go about it the right way, and you can avoid these common mistakes, then you have a real good chance of becoming debt free.

Mistake #1: Not writing down your goal

Big mistake! One of the most important things you can do when trying to reach a goal is to write it down on a piece of paper. So go grab a pen, or fire up your computer, and write down exactly it is what you want to achieve.  Give yourself a deadline and write down the steps it will take to get there.  Once it is written down you can put it in a place where you will see it often, and remind yourself that you are committed to reaching it. Try it. It works!

Mistake #2: Not Putting Away Your Credit Cards

There’s no way you can pay off your debt if you can still buy that nice shirt or dress that’s on sale with your Visa card. You don’t have to cut them up or destroy them – simply lock them up in a safe deposit box, or put them in a sealed envelope somewhere safe – and somewhere that you won’t see them all the time. You can keep one in your wallet or purse in case of emergency. But ONLY for emergencies!

Mistake #3: Not Changing Your Spending Habits

This mistake should be SO obvious that everyone should avoid making it. But it’s not. For some reason, there are people who just don’t realize that they can’t keep spending money AND get out of debt at the same time. And I’m not just talking about buying store brand bread and cereal. If your debt is out of control, then you need to make some serious changes in the way you spend money. It's time to make a budget and stick to it.  Try using this FREE budget spreadsheet to track where you are spending and see where you can really cut back.

Mistake #4:Not Realizing That This Will Take Time

Unless you’ve been doomed by some financial disaster, chances are it took you quite a while to get into debt. And unless you are fortunate enough to inherit a bunch of money or win the lottery, chances are it will take you quite a while to get out. I wish I could tell you there was some “secret” way to pay off your debt in just a few months. Or that there was some type of free government grant to help you get out of debt without paying it all back. But there are no secrets. And no free grants. But there are good companies that can help you lower your interest rates and your monthly payments, so more money goes towards your balance. Go find a good debt relief company and follow their plan. Before long, you’ll be on the road to being free from debt.

Mistake #5:Not Realizing That The Credit Card Companies Won't Offer Much Help

In a perfect world, the credit card companies would lower our interest rates to under 10%, allow us to defer payments for as long as we want, and only allow us to charge as much as we can afford – and if you think any of this will ever happen, WAKE UP!  After all, who runs the credit cards? Banks. And why are banks in existence? To make money. So as long as people like you and I keep using credit cards, and keep making payments on large balances with high interest rates, then they’ll keep making money. Working with a good Debt Consolidation or Debt Settlement company will help you reduce your interest rate, payment and can even get you out of debt for LESS than what you owe!

If you’re making any of these 5 mistakes, chances are good you’re having trouble paying off your credit card debts. Go ahead and grab that piece of paper and pencil, write down your goals for getting out of debt, and get started on the road to life without debt!

3 VERY IMPORTANT tips on how you can STOP COLLECTION CALLS:

You have to understand that debt collectors are professionals who get paid when they get you to pay as much money as possible on an old or delinquent debt.  NEVER FORGET THIS ! ! !

Although the Fair Debt Collection Practices Act (FDCPA) gives specific rules as to what a debt collector can and cannot do, most collectors violate these rules every day.

Basically, a debt collector CANNOT:

• Harass you by calling many times a day
• Call very early in the morning or late in the evening
  
• Say unkind or inappropriate things about you
• Make false statements about taking legal action against you
• Call family or friends and tell them you owe money
• Call your place of employment

So how can you put a stop to collection calls?

(1)  Get the name of the collection agency, address and phone if possible so that you can send a letter demanding that they not call you at home or work.

The letter should state that you cannot repay the debt at this time and that according to the FDCPA, you are demanding that they stop harassing you with phone calls both at home and work.

It is a good idea to send the letter by registered mail so that you have proof that the collection agency received it.

They may call you one last time just to state that they received the letter and will not be calling you again.

They will most likely say something like "Now we have no choice but to turn this over to our legal department to begin a lawsuit." or something like that.

DON'T BE SCARED!  There are alternatives to stopping this action.

(2)  Make sure you have CALLER ID

The worst thing you can do is get into a dialog with a debt collector! THEY DO NOT CARE ABOUT YOU........PERIOD!

If you get a call and do not recognize the caller, don't answer. If the caller is family or friend, they'll leave a message. But what if you happen to answer?

Simply cut the collector off by telling them not to call here anymore and hang up! 

(3) Finally, you may want to get help from a professional debt management or settlement company.

A qualified Debt Settlement Company can help put a stop the these calls and negotiate a settlement or reduced payment arrangements.

This will relieve you of the stress of dealing with the collectors yourself!

Click here for a  FREE No Obligation FINANCIAL ANALYSIS 

Or Call 1-877-492-4109

phot by: Mykl Roventine