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.

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

Every day we get asked, "What’s the best way to eliminate credit card debt?”

In order to eliminate credit card debt, you have a few options:

• Hit the lottery and pay them off in a lump sum!
• Continue making minimum payments
• Enroll in a Credit Counseling Program or Debt Management program
• Enroll in a Debt Settlement Program
• Bankruptcy

Since winning the lottery is not likely, most people make the minimum payments to their creditors.  Requiring small minimum payments is a trick the credit card industry has been fooling consumers with for a long time.  If you make just the minimum payment on your cards, it could take 10-15 years and end up costing you 3-4 times the original amount you borrowed because of the interest rates and hidden fees.

Debt Management (formerly referred to as Credit Counseling) makes sense if you can afford the required payment of the program.  Legitimate DM programs will arrange repayment plans with each of your creditors that will lower your interest and fees and usually allow you to pay off all of your cards in about 48 months.  If you can afford the payment, this makes sense.

Debt Settlement is for those who cannot do any of the above.  Legitimate Debt Settlement companies will negotiate with your creditors to satisfy the debt for around 50% of the debt.  Your credit report will show this debt as having been charged off, but then it will show that it has been “paid as agree” or “account settled”.

If you cannot qualify for any of these programs, then bankruptcy may be your best or only option.  Be sure to seek the advice of a competent bankruptcy attorney.  It’s not a bad idea to get a couple of opinions when looking into bankruptcy.

Do you need help deciding what is the right option for you? Our Solutions Specialists are ready to review your current financial situation with you and help you decide which option is the right fit for you.  Give us a call or click on the link below for a FREE Debt Elimination Analysis today!

1-877-492-4109

photo by: alancleaver_2000

Looking for a reputable Debt Settlement Company?

Here are 5 Characteristics you need to look for:

1)  HOW LONG HAVE THEY BEEN IN BUSINESS?

Years ago, there was a lot of so-called Debt Settlement Companies that started.  They offered big promises, but delivered poor results.

Most of them were nothing more than "get-rich-quick" or "fly-by-night" outfits that took advantage of many people.  The Attorneys General's office of most states were flooded with complaints and took action, levying severe fines against many causing them to shut down.

If you find a company that hasn't been around for more than 5 years...you should keep looking!

2)  WHAT KIND OF TRACK RECORD DO THEY HAVE WITH THE ATTORNEY GENERAL OF YOUR STATE?

This is easy to find out, just goggle your state's attorney general or the consumer protection division of your state.

You will be able to find a list of registered Debt Settlement Companies for states that require registration, and you will find complaints and or fines that have been levied against fraudulent companies.

3)  WHAT KIND OF BETTER BUSINESS BUREAU GRADE DO THEY HAVE?

About a year ago, the Better Business Bureau (BBB) lowered all Debt Settlement or Debt Management Companies rating due to all of the fraud and legal action that had been taken by the states and federal government.

You may not know this, but the BBB is an independent business entity and NOT associated with he government or credit bureaus in any way.

Some Debt Settlement Companies are "accredited" and other opt not to seek the BBB's accreditation.  Accreditation means the Debt Settlement Company has paid a large fee (and continuing annual fees) to have this "tag".

The real test of a companies rating is the complaints and resolution of those complaints that the BBB records.

Be aware of companies with too many complaints...something is wrong!

To see our BBB rating and report, CLICK HERE.

4)  WHEN YOU CONTACT THE COMPANY, DO THEY TRY TO "SIGN YOU UP" ON THE FIRST CALL?

There's nothing wrong with a company trying to make money helping people solve their debt problems, but BE AWARE of a company or representative who is too agressive!

In order to do a professional, thorough job, they need to take the time and have the patience to find out all about you and your paticular circumstances.

A professional, reputable debt settlement company wants to explore several options, such as:

• Debt Management (formerly called Credit Counseling)
• Debt Consolidation through a personal or equity loan
• Debt Settlement
• And yes, possibly Bankruptcy

A few outstanding companies offer more programs or services than just Debt Settlement or Debt Management.

You might think twice if a company who only offers Debt Settlement speaks negative about Debt Management Programs and vice-versa!

5)  HOW PERSONABLE OR PLEASANT IS THE REPRESENTAVIE?

If you get a bad feeling about the rep, KEEP LOOKING!

Professionally trained and experienced Debt Settlement Representatives are PATIENT AND ASK A LOT OF GOOD QUESTIONS.

The company does not have to be local to be one of the best, but on the other hand, if you feel they have out-sourced their services to an overseas company, I'd be a skeptical.

If you call back, will you be speaking with the same rep?

Bottom line...you need to have a good feeling about the rep and company or keep looking!

If you would like more information and a FREE annalysis of your debt, Give Us A CAll --->>> 1-877-492-4109

Or Click on the link below

So you’re ready to get out of debt once and for all.  The question is, how do you do it and what options do you have.  I’m going to share the options available to you as well as the pros and cons of each. 

Debt Consolidation

PROS:

• Lower interest rates on your credit cards. 
• One REDUCED monthly payment
• Stop harrassing creditor phone calls
• Eliminate your debt in just 3-5 years!

CONS:

• Pay back the full amount owed
• No room for error - If you are late or miss a payment, the creditors will remove you from the program
• Accounts will be closed by the creditor

Debt Settlement

When you enroll in a Debt Settlement program, you are hiring a team of Debt Negotiaion Specialist to work with your creditors and settle your debt for less than what you owe.  Debt Settlement is an excellent option for someone who has fallen behind on their monthly payments an is trying to avoid bankruptcy.  You can include unsecured debt such as Credit Cards, accounts in Collections, Repos, and Medical Bills in a Debt Settlement Program.

PROS:

• You will eliminate your debt for much less than what you owe
• You only have to make one small monthly payment
• It will improve your credit over time much faster than going through bankruptcy

CONS:

• May hurt your credit score
• Creditors may continue to call you
• Debt Settlement cannot help with secured debt such as a home or car loan

Bankruptcy

Bankruptcy is the process of declaring yourself unable to pay off your debts.  This does not mean it will get rid of all of your debt but most of it.  The typical bankruptcy for consumers is Chapter 13.  This is where lawyers will negotiate with your creditors and collection agencies to pay back less than what are owed.

PROS:

• You pay less than what you owe.  The typical amount you will pay back on any certain debt will be anywhere from 30 to 80 cents on the dollar.
• They work a payment plan out for you.  This will allow you to creditors back over period of time.

CONS:

• Hurts your credit for the next 7 years from the point of discharge.  You will not be able to get a loan of any kind.
• Costly.  Bankruptcy can cost a lot of money.  If you’re already in a lot of debt it may be tough for you to come up with the money to even go through this process.
• Bankruptcy is also very time consuming.  Don’t expect the process to go very fast.  In most cases it will take several years to pay back all of your debts.

Would you like to learn more about what option is right for you?  Our Solutions Specialist can work with you to determine which option best fits your financial situation. 

For a FREE no obligation consultation,

give us a call TODAY!

1-877-492-4109

photo by: Helga Weber

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

I received a summons for a credit card I cannot afford to pay.  Can my Social Security check be garnished?

If you are retired or disabled and your only income is from Social Security, that income cannot be garnished!

Debt collectors prey on elderly or retired people by using scare tactics.  It is not unusual to hear one of our clients report:

I got a call today and the collector told me that if I didn't send them money today they would garnish my monthly check or take all of my money out of my bank account!

According to the Federal Trade Commission and the Fair Debt Collection Practices Act, many federal benefits are EXEMPT from garnishment including:

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

But, in certain cases, such as delinquent taxes, alimony, child support or student loans, federal benefits may be garnished.

Be very careful about your bank account!

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

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

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

They may be able to:

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

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

1-877-492-4109

 photo by: alfcio

What is a 1099-C?

If you or a Debt Settlement Company has helped you settle a debt for less than the balance, the difference is reported to the IRS by the original creditor as a loss.

The IRS looks at this settled or "forgiven" amount as if the money was returned to you, even though it wasn't. The IRS is thinking that you will have to include this amount as additional income and therefore pay additional tax on it!

Sadly, most tax preparers and/or accountants are not aware of how to EXCLUDE a settled debt from being included as additional income.

HERE'S WHAT YOU NEE TO DO IF YOU RECEIVE A 1099-C:

According to the IRS, the amount of forgiveness (for the sake of this article, we are talking about unsecured debt) IS EXCLUDED if at the TIME OF FORGIVENESS, you were INSOLVENT.

INSOLVENT means that your liabilities are more than your assets or in other words, you have a negative net worth.

Sounds terrible, but in reality, in this case, it is good for you.

Let's say that when you list all of your assets:

• Home equity
• Net value or current value of your car
• Home items (furniture, tools, stuff)
• Savings accounts (stocks, bonds, yeah...right!)

Now offset that by all of your debt:

• Mortgage
• Car payment
• Student Loan(s)
• Medical Bills
• Credit Cards
• Personal Loans
• Equity Line of Credit

Most likely, your net worth (Assets - liabilities) will be negative.

Using IRS Form 982, you will check the box in Part 1, on line 1-b that states Discharge of indebtedness to the extent of insolvency.

It is also helpful to write a brief (I said brief...don't say too much) explaining why you were insolvent.

Attach this with the Asset-liabilities Worksheet together with the Form 982 and send in with your tax return.

That should do it!  If you would like a more complete explanation of how the IRS treats forgiven debt and insolvency, click here.

Do you still have debts that need to be settled? We can help! Click the link -->> FREE DEBT ELIMINATION SUMMARY or give us a call!

1-877-492-4109

photo by: alancleaver_2000