Bryan Burbank asked:


Debt consolidation would enable you to take out one loan to pay off many others to give you relief. This is done often so you can secure a fixed interest rate, secure a lower interest rates or for the convenience of servicing only one loan.

You can use Debt consolidation to simply be a number of unsecured loans rolled into another unsecured loan, but more often it involves a secured loan that would be use against an asset that serves as collateral, this is most commonly a house that you own. A mortgage is security used against the house. The risk to the lender is reduced so the interest rate offered is lower by using the collateralization of the loan. This allows a lower interest rate, because by collateralizing, the asset owner agrees to allow the forced sale or foreclosure of the asset to pay back the loan.

A lot of times debt consolidation companies can discount the amount of the loan. When the debtor is close to bankruptcy, the debt consolidator will buy the loan at a discount. A wise debtor can shop around for consolidators who will pass along alot of the savings. Consolidation can be affected by insuring the ability of the debtor to discharge debts in bankruptcy, so the decision to consolidate must be weighed very carefully.

for more information: Get Debt Relief today visit the Debt Consolidation Resource

Debt consolidation is often advisable in theory when someone is paying credit card debt. Credit cards can carry a much larger interest rate than even an unsecured loan from a bank. Debtors with property such as a home or car may get a lower rate through a secured loan using their property as collateral. Then the total interest and the total cash flow paid towards the debt is lower allowing the debt to be paid off sooner, incurring less interest. In practice, many people are in credit card debt because they spend more than their income. If that habit continues, the consolidation will not benefit them much because they will simply increase their credit card balances again.



Jeanne

Jane Y asked:


Okay. I graduated college in 2006. I am working for the university and have a pt job. I had to buy a car (Living in LA, you must have a vehicle).

The car and student loans I can deal with. It’s the stupid credit cards that are causing me to drown… I can and have made ALL my payments and I am not late, but after all the bills are paid, I literally have $106 a week to live on.

So, to make ends meet I buy gas and junk on credit.

Here is a little break down of what I owe:

28K credit cards/personal LOC
17K student loans
9K car loan

TOTAL is approx 56 K.

I make about 35K a year, but I have to live, typically on Credit Cards.

I have looked into two companies (Nova Debt, and Freedom Debt Solution)

One of them (NOVA) said I could pay off my credit cards in 4 & 1/2 years by paying 700 a month. But all my accounts would be basically closed/frozen. Q: Would that mean my “credit” would not longer be good? Would it affect my credit score?

Freedom Debt Solution is a company that basically has you stop paying your creditors, then tries to negotiate with them to settle your debt for a fraction of the cost. Again, it would freeze/close my credit cards and wreck my credit.

Keep in mind, my credit score is good! I have never been late and I always make min payment plus $10.

I also live with family and pay no rent. I’d really like to be able to move out and on with my life. With the job market, it’s not looking good for me to find a new job anytime soon, tho I am looking.

I need help. I am totally open to questions, comments, concerns.

Steven

William Onedge asked:


Prioritising your payments is a very important step. You must choose the creditors that are most important to you e.g. your mortgage payment and your utility companies.

Next are the credit cards and store cards which charge the most interest, by paying off the cards with the most interest you can reduce the amount of interest calculated on your next bill.Transferring your credit card balance onto another card, with a 0% interest period is also a recommended action. This allows the full monthly payment to be deducted from your balance, without incurring any interest. Prioritising your payments can help with debt relief.

Always remember to pay off your debt with any available money you may have at the end of each month. Doing so prevents any arrears and a build-up of interest on credit cards and store cards.

Improving your situation is one of the best ways to acquire extra money. Try to think of ways to maximise your full income e.g. is it possible for you to work more overtime, can you claim any benefits, and do you have anything of value to sell? Also can you afford to cut back more?

If you are experiencing money problems, do not be afraid to contact your creditors as they will try to help you. Due to the process the creditors have to go through to get money from you if you do fall into serious money problems, it can work out quite expensive to your creditors. Contacting them could lead to negotiating a new payment plan. Prioritising your payments can help with debt relief.

Before contacting your creditors, make a comprehensive list of all the outgoing and a realistic amount that you can pay each month. After you have completed a list of out goings, make a list of all creditors remembering to prioritise from most important to least important. Upon completion of this list, prepare a formal letter explaining your situation and proposing your payment plan.

It just takes a few steps to get control of your debt. Prioritising your payments can help with debt relief and get you on the right track to solving your debt problems. It all can be accomplished with a little discipline and the desire that you can get rid of debt in less time than you think. It’s a great feeling when you can live free of debt. You can do it, you just need to get started and the rest will be easy.



Roland

Kevin Muir asked:


As an alternative to corporate bankruptcy under Chapter 11, some companies seek help using business debt negotiators. While firms offering debt negotiation look good, you should be careful which one you use. Many of them are in trouble because of false claims and promises.

How Business Debt Relief Works

Firms advertising business debt relief negotiate reduced interest rates and payments to your creditors. Many troubled companies use them instead of going through a long formal bankruptcy process. If you go this route, all you have to do is pay the firm’s service fee.

Before you decide to use a debt relief firm, there are several things you should know. First, make sure this firm does not work the “collections” side of debt negotiations. This means they are working both sides of the equation. They may claim this gives them leverage. But you must ask yourself, “do they have my best interests at heart?” The answer is, probably not. However if you do want to use a debt negotiation firm, talk to several. Compare how much each one is going to save you and make sure you feel comfortable with their operations.

Second, consider that you can do your own negotiations with creditors as well. Be aware that it may be more difficult. Sometimes it helps to have a third party involved. If you negotiate yourself, your creditors may not give you much of a break and you will find it to be an emotionally trying experience. But you can handle matters yourself.

Some Tips On Doing Your Own Debt Negotiations

First understand that there are no debtor’s prisons. If you cannot pay your creditors because of a failing business, you are not a criminal. As long as you has not been involved in fraudulent activities, your creditors cannot threaten you will jail and they do not have the right to harass you personally.

Second, you must stand your ground with these creditors. Creditors will call you day and night. Each one will demand that you pay them before anyone else. Make the decisions that are right for your business’s survival. Determine your own priorities on who absolutely must be paid and in what order. Also do not ever post date a check to pay someone, even if a creditor asks for it. This can get you in bigger trouble. In fact sometimes, this can be interpreted as check fraud.

Third, do not make promises you cannot deliver on with creditors and collection agencies. Do not take money needed to operate the business and pay unsecured debts. Remember the only hope you have to pay your creditors is to turnaround your business. You cannot do this if the business does not run.

Finally, remember that most creditors would rather reach an agreement out of court as opposed to in court. Court caseloads are high costly and judges would much rather see these matters negotiated outside the courtroom. So stand your ground, don’t do anything illegal to get business debt relief, and focus on making a profit. You may just pull your business out of the fire.



Wayne

V G asked:


Which is better for credit card debt relief: American Financial Service (http://www.americanfinancialservice.org/) or Federal Debr Relief System (http://www.fdrs.org) ? Has anyone had any experience with any of them? Or is there a better one? Thanks.

Yolanda

Cornie Herring asked:


If you are a bad credit rating, we have less option to resolve your debt issues. And if you are at the disparate condition to pull yourself out from debt and get rids of all the harassing phone calls from your creditors, there are a few options of debt relief for bad creditors.

Consumer Credit Counseling

There are many Consumer Credit Counseling service (CCCS) around to help you to solve your debt problems. You can enroll into their CCC program to get counseling on personal finance and follow their plan to resolve your debt problem. Normally CCCS is a non-profit community action organization whose staff members have the training and experience to help you help yourself. In many cases, CCCS assists consumers by contacting their creditors and arranging lower monthly payments. Some services are provided free to consumers. CCCS was founded by creditors to aid their financially distressed customers totally free of charge.

A CCC program will not lower your credit score, but it will be noted on your credit report and hurt your ability to get and the interest rates you pay on a home loan, a refinance, or a car purchase. Once again, be careful when selecting a CCC company as there are good ones and bad ones out there. Search online for any negative information that may be out there and use the Better Business Bureau to see a company’s record there.

Debt Settlement or Debt Negotiation

Debt settlementis an aggressive approach to debt reduction, which is appropriate for debtors with a serious amount of debt or who are considering bankruptcy. Debt Settlement offers you a chance to reach a negotiated settlement with your creditors, paying back far less than you currently own.

Debt Settlement is a way to get out of debt in the shortest amount of time, and with the least amount of money without filing for bankruptcy. There are some drawbacks though. Debt Settlement will hurt your credit rating in the short term, because you must choose to go delinquent on your bills. However, because it will get you out of debt more rapidly than any other option aside from Bankruptcy, you can start to rebuild your credit rating sooner.

Bankruptcy

Bankruptcy can be the best choice for you, but it should be an option of last resort. It will hurt your credit rating severely and is not a pleasant process to undertake and your bad credit record will remain on your credit report for 7-10 years.

Bankruptcy will free you from overwhelming debts so you can make a fresh start, subject to some restrictions. If none other options available to you, declare a bankruptcy can be your best choice. After filling the bankruptcy, you can start to rebuild your credit and improve your credit rating by open up a new credit card from banks like Orchard Bank (Orchard bank has credit card plan designed specially to help people rebuild their credit after bankruptcy). Use this new credit card responsibly and make the monthly payment timely to rebuild you good credit record.

Summary

Although less option available for bad credit debtors, debt relief options are still available. No one option fit everyone, review all the options available to you and choose the one best fit your financial condition.



Jerome

chaly asked:


My summons is not signed by the “clerk of the court” (i am in cook county, chicago area )- based on what i read on the affidavit, the collection agency “purchased the account from the original creditor”. I do not know what this is for - since the court date is schedule for next week, am i supposed to contact the attorney or the company to see what and how they got my information. I never received any notices from this collection agency. I do admit that i do not have the best credit and am making minimum wage. There are accounts on my credit report that are from 2000 thru 2003 , but i have been trying to pay them off. Where can i turn to for help? I cannot afford to pay the $2425.95 + cost as liisted in the summons.
What type of lawyer is necessary for this particular situation? And where should I search?

Alvin

gsforgrace asked:


I am looking for a debt consolidation or debt relief company that is reputable and will do the job. I need to consolidate medical bills, pay day loans and credit card bills.

Brittany

Harold W asked:


For debt consolidation.

Shirley

Bryan Burbank asked:


Negotiating a Credit Card Debt can sometimes be intimidating because you owe money and you feel like you should do anything to pay this debt off. The truth is that you are in control when coming to terms with your credit card company. They want you to pay the money and it is up to them to accommodate you so do not be ashamed or feel like they have the upper hand.

More Information on getting : Debt Relief Today

Most of all you need to make sure that you have records of any communication that you have with the credit card company and this is best done by mail. Be careful when you speak with someone over the phone because they can lie to you and make you feel like you are a crook. It is important that if you make any agreement it is in writing so that if you have a problem later on you have proof of the settlement you have made.

Learn How to Get a : Government Grant Now

It is also very important that if you are negotiating credit card debt that you try to talk to the original creditor and not to a collection agency. These agencies can be very deceptive and try to threaten you into paying all the money you owe. They will also call your family members and tell them they are going to be held liable. All of these tactics are illegal and you need to be aware of this.

Remember that when negotiating credit card debt it is always best to get the professional advice that can help you get the debt relief that you deserve.



Wanda