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.

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!

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!

Picture it.....

Black Friday 2011.....

Not only have you paid off your credit card(s), you got an increase in your credit limit?  Awesome!  Uh-oh, there goes the evil laugh.  Oh, no--there goes the hands slapping together and rolling around while you contemplate what kind of shopping you could really do.  Yeah, you can just picture it now--remember that flat screen t.v. your spouse has been salivating for?  What about those earrings your mom has been wanting?  And Aunt Sally wanted that  purse she saw at Nordstrom's?  O, your daughter wanted a gift card to Victoria's Secret--be sure to add enough money on it because what girl can buy just one item from there.  You grab your wallet and car keys. . .Wait!  Don't walk out that door with your credit cards, you will develop a permanent foul taste in your mouth as it becomes Debt Friday when next month's bill comes.  Here are some ways to enjoy this holiday tradition without breaking the bank.

Envelope Method

In order to keep on top of your debt--no matter how small or how big the breathing room is--you must leave your credit cards at home.  Banks know how temptation works, and that is why they increase your credit limit; they hope to keep you under their thumb for years.  To keep Black Friday from becoming Debt Friday, use the envelope method to figure out how much to set aside for each bill--including gas for your car(s) and food--and put that money in their respective envelopes.  The rest can be used for Black Friday.

Christmas List

Everyone writes down what they want on a Christmas list.  While many people are very conservative because of our economy, you don't have to be stingy.  Your daughter wants a Victoria's Secret gift card, your spouse wants that flat screen, your mom wants those earrings, your aunt wants that purse from Nordstrom's, and so on. . . .Make it happen in your family:

• Get family to pool money together--each person can contribute a little in the pot for that one really cool item each person wants.  
• Stick to your budget--if pooling your money is not an option, than consider your gift giving carefully.  You don't want to buy something that is just going to sit in the back of someone's closet.

Black Friday or Debt Friday?

You don't have to have a coronary next month if you keep your credit cards at home.  Keep your money close as you enjoy Black Friday.

photo by: gadgetdude

The holiday season seems to be a season of excess. Eating too much pie or drinking too much eggnog is one thing. Charging too many gifts on your credit cards is another.

Although the holiday season may entice you to spend more than you can afford, a little self-discipline can help you keep your purchases to a manageable limit.

6 Tips to avoid Holiday Debt

1. Start Saving! Spending cash instead of using credit for your holiday purchases allows you to avoid holiday debt all together. If you haven’t started saving, it's not too late to start.  put aside something each paycheck starting now and use that to finance your holiday purchases. Start a Christmas Savings Account
2. Set a budget BEFORE you shop! Setting a spending limit and sticking to it will keep you from overspending. Be disciplined and don’t go over your budget, no matter what. --> FREE Holiday Budget Spreadsheet
3. Make a list! Santa makes a list and checks it twice, so should you. Even though you might feel compelled to splurge on everyone in your life, you don't have to. People appreciate simple and meaningful over expensive and useless.
4. Use layaway! Layaway disappeared for a few years, but a lot of big retailers, like Wal-Mart and KMart, are bringing it back for the holiday season. Starting early means you can put a little toward your holiday purchases each month. In the end, all your purchases were made and you'll be free of holiday debt.
5. Ignore "big" sales. More often than not, they're not really sales at all. Those "Buy 2, Get 1 Half Off" deals only trick you into buying more than you would otherwise. Remember, stick to your list.
6. Leave your credit cards at home. Without your credit cards, you’ll have a hard time charging them up. 

Do you have and tips for smarter Holiday spending?  Please share your tips and tricks in the comment thread below!

What is a SECURED CREDIT CARD?

A secured credit card is one on which you don’t have to make monthly payments. It doesn’t add to your debt because you have to load money onto the card before you are able to use it. The amount you place on the card is your available credit. It is not a debt that you incur, but it does give you peace of mind in knowing that you do have a credit card to use for emergencies or while on vacation.

You can obtain a secure credit card from your bank even if this bank will not approve a regular credit card for you because it is not the bank’s money that you are borrowing – it is YOUR MONEY.

How will using a secured credit card RAISE MY CREDIT SCORE?

Even though you don't have to qualify to get a secured credit card, the bank does report your use of the card to at least one of the three credit reporting agencies (TransUnion, Experian, or Equifax). This card doesn’t show up on your credit report as a secured card, but is seen as a positive item on your report. The fact that you are not carrying a balance on the card means that you don’t have any debt on the card and you have available credit to use for your needs. It's a Win Win!

If you do decide to use a secured credit card to help raise your credit score, be sure to read the FINE PRINT! There are fees associated with the use of the card, so it is important to find the one with the lowest fees, thus giving you more of your money to spend.

Also important to make sure that the issuer of the card reports to all three credit agencies. If not, it is possible that it may report to one where your credit score is seen as being in good standing and this won’t help you.

When you load money onto your account every month and make sure you have enough there to cover the fees. Most of the time, after you have been using the card for a period of time, the bank will see that you are responsible with credit card usage and will then transfer the card to one that you don’t have to pre-pay.   In the majority of cases, it will take about 6 months to a year for this to happen, which is about the same amount of time it takes for you to see any improvement in your credit score.

Key Take Aways:

1. A Secured Credit Card is a card that you get from your bank and "load" with money.
2. The bank will report your credit card usage to one or all of the three credit reporting agencies.
3. When you "load" money onto the card, be sure to put enough to cover what you plan to purchase AND the bank's fees.
4. After 6-12 months you should start to see an increase in your credit score and may be offered a regular credit card by the bank!

Already have too much debt? 

We can help with that too. 

Give us a call or click on the link below!

1-877-492-4109

My spouse died.  Am I responsible for paying off the debt?

Credit card companies and debt collectors are not very sympathetic about your loss and will try to collect on an outstanding debt even if you are not legally obligated to pay!

It is important to understand what your financial obligations are beforehand so that you know what you could encounter should your spouse pass away.  It may be a good idea to contact an attorney that can advise you on the legal details concerning your particular circumstances.

4 VERY IMPORTANT QUESTIONS TO ANSWER:

1.  DO YOU LIVE IN A COMMUNITY PROPERTY STATE?

If you live in one of the following states, your property, assets and yes, debts are considered jointly owned:

• Arizona
• California
• Idaho
• Louisiana
• Nevada
• New Mexico
• Texas
• Washington
• Wisconsin

If your spouse had opened an unsecured credit card, store card or personal loan and you live in one of these community property states, you will be responsible for the debt.

HOWEVER...

In most cases, losing a spouse may mean loss of income and or retirement benefits and you may really be strapped financially.

You should be able to negotiate a reduced balance settlement of that account.

If you need help, please let us know as we have been helping people settle debts for many years!

2.  WHERE YOU A CO-SIGNER ON THE ACCOUNT?

If you were, you are responsible for the debt. However, you should be able to get the creditor to reduce the balance!

What if you are not sure if you were a co-signer? 

• Write a letter to the creditor briefly explaining that your spouse has died and that you do not feel you are responsible for the debt (unless you live in a community property state).

• Request proof, ie. a copy of the original application.

• If they cannot produce it, you are not responsible.

3.  WHERE YOU AN "AUTHORIZED USER ON THE ACCOUNT?

An authorized user is any person who has permission to use a credit card account, but is not responsible for paying the bill.

In that way, it differs from joint credit, in which both parties are obliged to pay. In some cases, the user will receive a credit card in his or her name, even though it is linked to someone else's account.

4.  DID YOUR SPOUSE HAVE ASSETS THAT MAY BE SUJBECT TO PROBATE?

The term "probate" refers to the legal process to determine if a will was valid.

If your spouse had a will, depending on the state's laws where you reside, there may be "probate" process before assets are distributed according to the will. In many cases, there is no probate process.

For example:

If you have a joint checking or savings account and your spouse dies, then now you are the sole owner or account holder.  It is a good idea to let the bank know.

If your spouse had a life insurance policy and you were the sole beneficiary, the funds are sent to you without going through the probate process.

The reason is that a life insurance policy is a contract and unless it was part of a special estate-planning situation, acts independently.

And by the way, the proceeds of the life insurance policy are TAX-FREE!

If your spouse dies and there is outstanding credit card or other debt, you may want to consult with an attorney or with a qualified Debt Management Company.

Don't let creditors intimidate you!  Know your rights!

If you need help, give us a call!

1-877-492-4109

Money is one of the topics couples fight about most often. Debt brought into marriage is an especially troublesome part of many couples’ money problems. Research shows that debt brought into marriage is the number one problem for newlyweds. Unfortunately, debt never rests, sleeps, or goes on vacation and as long as you have debt you will be in financial bondage.

Before you say, "I do," you should get to know each other's financial health.

10 questions to ask your fiancee that can help make your future life together a successful one:

1. How many credit cards do you have?
2. What are your balances and interest rates on those cards?
3. Do you pay your bills ahead of time, on the due date or late?
4. Are there dings on your credit history that might affect our ability to reach our financial goals?
5. What is your credit score?
6. Can I see your credit report?
7. What are our financial goals (salary and saving expectations, retirement plans, future education, etc.)
8. Do you have any assets (real estate, investments, retirement funds, savings accounts)?
9. Do you want children? If so, what are your (our) financial plans for supporting them?
10. Do you owe any debt from a previous marriage? Are there any financial obligations that still need to be fulfilled to your ex-spouse?

There are no correct answers to any of those questions. However, if your spouse doesn't want to chat with you about finances, consider this a BIG red flag.

If you learn that there is a large amount of credit card debt, extremely high interest rates on those cards or too many credit cards, then the time to take action is BEFORE you say "I Do". you should consult with a Debt Solutions Specialist to discuss your options such as Debt Consolidation or Debt Settlement.

If you or your fiancee would like to learn more about how to get out of debt before your big day, click the linke below for your FREE DEBT ANALYSIS or simply give us a call. 

1-877-492-4109

Some great New Credit Card Rules were passed last year. Here's what you need to know:

In the old days (prior to 2-22-10) a credit card company could just increase your interest rate or other fees without letting you know.

Most consumers would just keep paying their minimum payments and not realize that of the $100 they paid, only $35-$40 was actually being applied towards the principal and the rest was interest and fees!

At this rate, it might take you the rest of your life (if you lived long enough!) to repay the original amount borrowed or charged.

With the New Credit Card Rules, the credit card company must send you a notice at least 45 days before they can:

• increase your interest rate
• change annual, cash advance or late fees
• make other significant changes to the terms of your card

You then have the option to cancel the card before the changes take effect. However, if you cancel your card, the credit card company may close the account and increase the monthly payment.

For example, they may require you to pay the balance off in five years.

They may also double the percentage of your balance used to calculate your minimum payment which will increase your monthly payment!

The credit card companies are now using a few "legal loop holes" to get around this new law and they do not have to send you a 45 day advance notice if:

• if your card has a variable interest rate tied to an index and the index goes up your rate will increase
• your "introductory rate" expires and jumps to the "real" rate
• your rate increases because you have made arrangements because of late payments 

Your monthly credit card bill will now include information on how long it will take you to pay off your balance if you only make the minimum payments.

It will state the current balance and the minumum payment due.

It will give you a LATE PAYMENT WARNING that says that if they do not receive the minimum payment by the date listed, you will have an additional $35 late fee charged and your APRs may be increase up to the PENALTY APR OF 28.99%!

Even though the new rules may inform you of how you are about to be taken advantage of, they really don't help that much.

If your credit card balances is so hight that you can only make the minimum payments, YOU NEED HELP!

For FREE ADVICE with NO OBLIGATION, CLICK HERE or call

1-877-492-4109

photo by: Andres Rueda