A recent article in our Portland, OR newspaper, The Oregonian, stated that one in every three people in America are facing debt collection.  If you are one of the 33%, what are your options?

Sadly, when faced with the annoying and often harassing tactics used by many debt collectors, people are often given only one choice...debt settlement.

But, after over 11 years helping people deal with having too much debt, I want you to know that although debt settlement is often a very viable choice, and often the only choice to prevent bankruptcy, it is not the only choice. In other words, ONE SIZE DOES NOT FIT ALL!

Unfortunately, many debt settlement companies ONLY offer and therefor ONLY recommend debt settlement as the solution to dealing with a severe debt load.

Let's briefly look at the various options:

There are so many different possible scenarios or various financial circumstances that people are facing that a quality, experienced company that assists people with debt will do a thorough analysis to determine the proper program.  It is much like a doctor who should do a thorough exam before prescribing a drug or procedure!

The first step is to determine what kind of "DEBT" you are dealing with.

For example, SECURED DEBT, such as a mortgage, auto loan, or any other loan that is secured by property (usually the property itself), must be dealt with differently than UNSECURED DEBT.

Some of the more common forms of UNSECURED DEBTS are:

• Credit Cards
• Store credit cards
• Personal or Signature bank loan
• Medical bills
• Private (not Federal) Student Loan
• On Line shopping sites such as QVC, EBay, and others that offer credit

Once we have identified what type of debts you are facing (and there are usually a combination), then we need to determine where you are FINANCIALLY.  In other words, after you pay all of your basic bills to live...mortgage or rent (all secured debts), as well as... food, utilities, gas, medicine, insurance, etc., is there any money at the end of the month to pay towards those debts?

The easiest way to determine where you stand is to complete a simple, Household Budget Worksheet.  

Once you've detemined where you stand, then we can look at the various options.

A DEBT MANAGEMENT PROGRAM (often referred to as Credit Counseling), has been used by people with debt problems for years.

This program is designed for someone who is currently making all of the minimum payments required on their unsecured debts, but because of the HIGH INTEREST RATES (APR) and ANNUAL FEES and OTHER FEES (late fees, over-the-limit fees, etc.), realize that they are not making any progress to actually paying off these debts.

For example...

Did you realize that if you have a credit card with a balance of say, $5,000 and an annual percentage rate (APR) of 19%, it may take you 15-20 years or more to pay the card off by making the monthly minimum monthly payment required.

For more information:  DEBT CONTROL: 4 PROGRAMS THAT WORK!

If you are barely making all necessary payments (secured) as well as your monthly minimum payments, but there is nothing left over, then a Debt Management Program may be best for you.

But, if you actually have (or can make some living adjustments to find) and extra $100-$200 per month to put towards your debts, then you should consider:

A DEBT ACCELERATOR PROGRAM

Originally called by various names such as a "Snowball Plan" or a "Roll Up Plan", in a DEBT ACCELERATOR PROGRAM, you are going to pay off your debt in an average of 4-5 years without enrolling in a Debt Management Program (which may or may not harm your credit score).

Basically, in a Debt Accelerator Program, you will be making the normal minimum payments each month as before, but you are going to increase one of your debts by say $150/month.

There are several theories about whether you should accelerate the highest balance or interest rate first, but I don't want to get into that here.

I recommend that you start with the lowest balance first, make the minimum due plus the additional $150, and pay that one off quickly...you'll be amazed!

And, not only amazed, but excited to go to the next debt!

Now, you take the former minimum payment (say it was $50) and after adding the $150, were making $200 per month instead of just the $50 and you add that $200 to the next card or debt's minimum due.  Let's say the next one is $75.

Now you are making a total of $275 towards the next card ($50 + $150 + $75 = $275).

Get the idea?  Soon, you keep "Accelerating" each debt and you will be DEBT FREE in a much shorter time and save thousand of dollars in interest and fees!

SOUND GOOD, BUT...

What if not only do you not have any extra money to put toward a Debt Accelerator Program, you can't even make the minimum monthly payments your unsecured debt require now?

THIS IS WHERE A DEBT SETTLEMENT PROGRAM MAY COME TO YOUR RESCUE!

Rather than opt for bankruptcy, millions of people have used a Debt Settlement Program to pay off all of their unsecured debts and avoid bankruptcy.

Debt Settlement is a program designed for those who are really in trouble, fincially.  Usually, most or all of their debt have gone to debt collectors who are are calling severaly times a day and sending threatening letters!

You will be making a monthly contribution to a bank insured (FDIC) account to hold those funds until there is a reasonable amount built up to make a SETTLEMENT OFFER.

Again, depending on several factors, most settlement offers are going to be around 50% of the balance.  Some are for more, other less.

People often ask if a Debt Settlement Program hurts their credit score.  But, they are not thinking the process through.  If you're accounts have gone to debt collectors or judgments, your credit score has all ready suffered!

Once you get all of your debts settled...ie., you have $0 balances, your credit scores will improve!

OK, but what if you can't even afford to make a contribution to a Debt Settlement Program?

Then, it is time for you to seek BANKRUPTCY PROTECTION from your creditors!

Again, unfortunately, their are many Debt Settlement Companies that only offer one solution to everyone's debt problem.  But, as you can see, ONE SIZE DOES NOT FIT ALL, when it comes to dealing with debt.

Seek the counsel and advice of a qualified Bankruptcy Attorney.  You should be able to have a FREE Consultation and hear about your options.  In fact, good bankruptcy attorneys will work with you as far as their fees go. If not, seek out another bankruptcy attorney!

I hope I have made my point that when it comes to DEBT SETTLEMENT, one size does not fit all!

Photo by: DRNW

Calls from debt collectors can be very annoying. For some, the calls are so bothersome that phone numbers have to be changed or disconnected to stop debt collection calls.

When Can Debt Collectors Call

The Fair Debt Collection Practices Act (FDCPA) is the Federal law that states what debt collectors can and can't do. For starters, they aren't to call you about a debt that you don't owe. When a debt collector first contacts you about a debt, you have the right to request them to verify the debt is yours. If the debt collector can't come back with proof that you owe the debt, they're not allowed to contact you anymore. DEBT VALIDATION

Even without sending a validation request, debt collectors have certain rules they must follow when it comes to contacting you over the phone. For example, they can't call you before 8 a.m. or after 9 p.m. your local time. They can't call you repeatedly, and they can't call you at anytime you've previously stated is inconvenient. For specific situations timing of debt collector calls check out.

Stop Debt Collection Calls

There's no law that says you have to communicate with a debt collector by phone. If you hang up on a debt collector there is nothing they can do about it. But, if the collector continues to call you repeatedly even after you have hung up on them, they are in violation of the FDCPA.

All you have to do to stop debt collectors from calling you is tell them that you prefer to communicate with them in writing. Written communication works in your favor because it gives you a record of everything that is said. If the debt collector violates the FDCPA, you have hard evidence that could lead to a lawsuit in your favor. Keep in mind that, by law, the debt collector does not have to honor this request.

The surest way to stop debt collectors from calling you is by sending what is known as a cease and desist letter. In the letter, state that the collector should cease and desist further communication with you. Note that the cease and desist letter only applies to debt collectors, not the original creditor.

Can Debt Collectors Contacting You About Someone Else's Debt?

People who've recently changed their phone numbers are often plagued with calls from collectors trying to reach that number's previous owner. You might have this problem even if you've had the same number for years. Unfortunately, telling the debt collector that they have the wrong number may not be enough to stop the calls for good.  If calls persist after the cease and desist letter, report the collector to your state Attorney General and the Federal Trade Commission.

Debt collectors might also contact you trying to locate another person, like a friend or relative. Somehow in their background check, your contact information has been liked to the debtor. The law does allow debt collectors to contact a third-party to get a phone number, address, and employment information, but the collector can only contact a specific third-party once and they can't reveal any information about the debt. A debt collector is violating the law if they continue to contact you for contact information even after you've told them what you know.

What Happens After the Cease and Desist

Once the collection agency receives your cease and desist letter they can communicate with you once more, via mail, letting you know one of three things:

• that further efforts to collect the debt are terminated,
• that certain actions may be taken by the debt collector, or
• that the debt collector is definitely going to take certain actions.

When you send the cease and desist letter to the debt collector, send it via certified mail with return receipt requested. This will provide proof that the letter was sent and received. If the debt collector communicates with you beyond the single instance allowed by law, this evidence will allow you to seek punitive action against the debt collector.

Summary:

Debt collectors earn their money from getting you to pay...period.  If you think they want to play fairly or show sympathy for your situation, well, as the saying goes...WAKE UP AND SMELL THE COFFEE!!!

You do not have to put up with Debt Collector Abuse, so  take action.

Finally, get help!  You don't have to "go-it-alone"!

Photo credit: www.flickr.com/photos/kitby/4883787012/

You do not have to put up with abusive debt collection practices.

Debt collectors must abide by the laws spelled out in the Fair Debt Collection Practices Act (FDCPA) or could face severe fines!

The  Federal Trade Commission (FTC)  is the nation's consumer protection agency and has published guidelines for consumers that explains what a debt collector can and cannot do.

Here are just some of the most abusive debt collection practices and violations:

Calling you many, many times a day at all hours of the day!

A debt collector may not call you before 8am (local time) or after 9pm (local time), unless you have agreed to it.

The best thing you can do to put a STOP TO DEBT COLLECTORS CALLS, is to send them a letter that demands that they stop calling you both at home and (if employed), your employer!

It is a good idea to send the letter via certified mail so you have proof that they received it.

You should also keep a copy of the letter.

The debt collector may only contact you once more to tell you they received the demand letter.

If they continue to call, you should report them to your state attorney general's office by going on line to file a complaint.

You should keep a log of all calls, time of day, etc.

A debt collector cannot discuss your debt with neighbors, family or friends without your consent!

A debt collector can only contact others to find your address, phone number or where you work.

Harassment!

• Debt collectors are prohibited from:
• using obscene or profane language
• making many, many annoying calls (many times via computer dialer)
• using threats of violence
• making false statements, such as threatening a legal action if they do not follow through
• falsely claim to be a government agency
• threaten to seize, garnish or sell your property to pay the debt (unless they have been awarded a legal right through the courts)

 What can you do if a debt collector has been awarded a judgment against you?

You may want to get advice from an attorney (yes, expensive), but it is VERY IMPORTANT that you don't ignore a summons, notice of levy or garnishment.

Once a debt collector has been awarded a judgment, they can apply for a writ of garnishment and also for a levy of your bank accounts.

The best thing you can do is to contact the debt collector immediately after receiving a letter and do you best to settle the debt.

Debt Relief NW can help you:

• Stop collection calls
• Negotiate debts for 50% or less in many situation
• avoid garnishments and bank levies
• avoid bankruptcy

FOR A FREE CONSULTATION WITH NO OBLIGATION, CLICK HERE TODAY!

Debt collector harassment can be stopped!

A consumer is protected from debt collector harassment by the Fair Debt Collection Practices Act (FDCPA).  Here are some FAQs about Debt Collector Harassment:

Here are just a few of the unlawful practices that are prohibited by the FDCPA:

• Call before 8am or after 9pm (your time zone)
• Call you at work if you have told them you are not allowed to receive calls at work
• Threaten any type of violence
• use obscene or profane language
• call many times a day
• Disclose any information about your debt to a third party such as family or friends

A debt collector may not make false statements such as:

• They cannot claim to be attorneys
• They cannot pretend to represent the government
• They cannot claim that have committed a crime by not paying or that  you could be arrested unless you pay

A debt collector cannot make threats such as:

• they are going to seize your property or
• garnish your wages unless they intend to take action or follow through with legal action

If you feel that a debt collector has violated the FDCPA, you can contact your state's attorney general's office and file a complaint.

For example, in Oregon, CLICK HERE.

You can also contact an attorney. The FDCPA states that if the debt collector has been found guilty, the debt collector has to pay your attorney fees. 

This means that an attorney can help end the harassing and unlawful conduct at no cost to you! 

The FDCPA also prohibits the debt collector from calling you again when you are represented by a lawyer.  The FDCPA also states that you may be entitled to up to $1000 in damages as a penalty for the debt collector’s violation of the law. 

If you feel like you are being harassed by your creditors, we can help you to eliminate that debt and get them off your back.  Give us a call at 1-877-492-4109 or click the link below for FREE information.

How can you Stop Debt Collector Calls?

Debt collectors are paid to collect money that you owe!  So, is it any wonder that they will use any and all methods (legal and illegal) to get you to pay?

Do any of these situations sound familiar?

• You are sitting down to relax after a long day and the calls start!
• You check your phone messages and you have 14 calls...ALL IN ONE DAY!
• You start receiving calls from creditors at work?

The Fair Debt Collection Practices Act (FDCPA) outlines what a debt collector can and cannot do.  If you are being harassed by collectors, you should click on the link above and print a copy!

The FDCPA says that debt collectors CANNOT do any of the following:

• Contact you before 8am or after 9pm (your time zone)
• Contact you at work if they are told that you are not allowed to get calls. This can be orally or in writing.)
• Contact third parties (including family or friends) other than to get information on how they can contact you.  They CANNOT DISCUSS YOUR DEBT!
• Contact you after you have sent them a letter stating that you do not owe the money and request verification of the debt.

A Debt Collector is PROHIBITED FROM HARASSMENT, such as:

• Making threats of violence or harm
• Using profane or obscene language
• Call over and over again, many times/day!

A Debt Collector is also PROHIBITED FROM MAKING FALSE STATEMENTS, such as:

• Claiming to be an attorney or a government representative
• Claim or insinuate that you have committed a crime
• Claim that they are going to take "LEGAL ACTION", when in fact, they do not.
• Claim that they will garnish your wages or levy your bank account.  They cannot even start to take legal actions until a claim has been filed and a SUMMONS is delivered to you.

Ok, but How do you STOP debt collector calls?

1) Send a letter like this:

Although I fully intend to repay this debt, it is impossible for me to do so at this time.  I am in a very desperate financial position and cannot pay the minimum payments required for my account.

According to the Fair Debt Collection Practices Act (“FDCPA”) 15 USC, 1692c(c), I am making an official request that you immediately terminate any telephone contact with me or any members of my family regarding any matter concerning the collection of the alleged debt.

You have repeatedly called me at home and at work which must stop!

If you do not, then I will be in contact with the attorney general’s office of my state and file a complaint.

Sincerely,

(Print and sign your name)

2)  Send the letter using REGISTERED MAIL, so you will have proof that they received it.

Once they have received your written notification to stop calling you, they may only call you one more time.  Usually they will be either very nice or very nasty.

Either way, now the calls should stop.

We have been helping people with debt issues for many years. 

If you would like a FREE EVALUATION of your situation, let us know!

Debt collector harassment can make your life miserable!

I read an article today from the Oreonian entiltled "Eugene woman sues after bill collector sends cops to house".

You can click on the link above to get the complete story, but here's a summary:

• Retired, 85 year old woman got behind on her Wells Fargo Mastercard
• Wells Fargo turned the account over to a collector
• Collector repeatedly calls and harasses her
• Collector uses one of the cruelist, unprofession and I think, illegal tactics that I've ever heard of.  He calls the police and tells them she is suicidal and of course they come to her house.
• As a result, they "forcibly" took her to an emergency room with a warning not to leave (according to the claim)
• Now she has additional medical bills from the fiasco!

I do not know what prompted the collectors action.  Hopefully, the lawsuit will sort this all out.

But, are you serious?  Can a debt collector harass a senior citizen to the point of possible suicide and not suffer severe consequenses? 

It seems so...but we have rights.  Hopefully her lawsuit will help.

The Fair Debt Collection Practice Act  is the law about what a collector can and cannot do, and in my opinion, this collector has violated the law.

According to the FDCPA, these are practices that are off limits for debt collectors?

Harassment

Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:

• use threats of violence or harm;
• publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
• use obscene or profane language; or
• repeatedly use the phone to annoy someone.

False statements

Debt collectors may not lie when they are trying to collect a debt. For example, they may not:

• falsely claim that they are attorneys or government representatives;
• falsely claim that you have committed a crime;
• falsely represent that they operate or work for a credit reporting company;
• misrepresent the amount you owe;
• indicate that papers they send you are legal forms if they aren’t; or
• indicate that papers they send to you aren’t legal forms if they are.

Debt collectors also are prohibited from saying:

• you will be arrested if you don’t pay your debt;
• they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
• legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.

Debt collectors may not:

• give false credit information about you to anyone, including a credit reporting company;
• send you anything that looks like an official document from a court or government agency if it isn’t; or
• use a false company name.

Unfair practices

Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:

• try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law allows the charge;
• deposit a post-dated check early
• take or threaten to take your property unless it can be done legally
• contact you by postcard.

If you or someone you know (especially a senior citizen) is receiving harassing calls and/or illegal activity from a debt collector, you have options:

• Click here for a free guide on HOW TO STOP COLLECTION CALLS.
• Contact your states attorney general a file a complaint. 

           In Oregon, Click Here:

 photo by: BLW Photography

If you have fallen behind on your credit card payments, you know just how annoying the debt collector calls can be. Some people are so bothered by creditor calls that they change their phone number or even disconnect their phone to get some peace and quiet. 

Although your creditors have the right to attempt to collect an unpaid debt, a creditor must do this within the limitations for the Fair Debt Collection Practices Act (FDCP).

A CREDITOR CANNOT:

• Make frequent or harassing calls!  In other words, they cannot dial you you 10 times a day!
• Call you at work!  If you are getting calls at work, it could jeapordize your job and your employer will certainly not think well of you!
• Make threats of legal action without following through!  "If you don't send us money now, we will start a lawsuit against you".  Well, if they say it, they better start it, or you can file a complaint with your state attorney general.
• Call family or friend and tell them you are  delienquent!  They can call a family member or friend in an attempt to get information about how they can contact you, but they cannot discuss your debt with them or mention your situation in any way!

Download this FREE GUIDE -->

How To Stop Collection Calls

The best way to stop collection calls is to write a letter to the collector stating that you intend to pay your bill, but you cannot at this time.  Tell them that you are giving them legal notice according to the FDCPA to stop calling you immediately or you will report them to the attorney general.

It is best to mail the letter as registered mail so that you have proof that they received it.

After a collector receives the request in writing, they can only call you one more time to state they received it and what their intentions are in the future. If they call you again, it is time to to go online to your state attorney general's site and file a complaint.

You can try to simply fax the letter to the credior.  In most cases this will stop the calls, but legally the creditor does not have to stop without the written request by mail. In some cases, a creditor may honor you request by phone, but this doesn't happen often.

If you are intimidated by collectors, then we can help. Simply click the link below to find out about your options.

photo by: Mykl Roventine

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.

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