SBN asked:


I am about 13,000 in debt (all credit cars) and signed up for a credit consolidation deal (US debt relief). They are taking 200 a month and once they have enough to bargain with my creditors they make an offer. This is taking forever. One of my friends was telling me I could get a credit lawyer that will send a letter to all the creditors asking them to verify the debt and if they don’t get it back in time the debt is removed completely along with the negative marks on my credit history. This seems way to easy so I’m wondering how true it is or how well it works. Has any one done this and is it a good idea?

Theresa

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

pinkyann1 asked:


I was wandering abou this company. They are different than a debt consolidator. When I spoke with them they never mentioned about negotiating with the creditors for a lower rate. What they said they do was put my accounts in dispute and wait until the creditor does something illegal that their attorneys will catch, then they use that as leverage against the creditor to wipe out my debt. Like, I dont have to pay it back. Which I thought was strange. All they require is that I pay them about half the amount of my total minimum payments for 18 months. I calculated about $7000 all together to get rid of all $22,000 of my debt. The money they said was to pay the attorneys. The guy said that they are 100% effective but could not give me any guarantees. I checked them out on the BBB and there are no complaints either. What do you think?

Leon

Joycelyn Crawford asked:


When it comes to such important issues, it is a good idea to use the advice of those who know about the subject. Let’s see what the Federal Trade Commission suggests on this particular topic.

The main thing that the FTC suggests is that you postpone the decision of filing for bankruptcy till after you have analyzed all the other alternatives out there. This is due to the fact that bankruptcy should be considered a last resort and the FTC strongly suggests against taking that path unless absolutely necessary because the detriment that it implies to your financial and credit situations is overwhelming.

Three Options To Obtain Debt Relief

The first alternative that the FTC suggests as means to obtain debt relief, is to talk with your creditors. Sometimes you are entitled to change the terms on your repayment program by the very contract you signed or due to the law. And even if you are not, a lender will certainly prefer to negotiate a new repayment program than to pay the costly charges of collector agencies or the legal costs of a court case.

If you are not comfortable with the above task, you can hire a credit counseling agency. These agencies will negotiate with your creditors for you and they’ll put their expertise to work so as to get for you new repayment programs, lower interest rates and sometimes even cuts on your debt interests or principal. Some of these organizations are non-profit and charge little or no money but even those that are not, won’t charge you high fees and will save you a lot of money.

The FTC suggests, as another option, to consider a second mortgage or home equity line of credit. These two alternatives are financial products based on equity that provide a fair amount of money at very reasonable rates and with a flexible repayment program. However, the FTC also states that these options should be considered carefully because the loans and lines of credit based on equity are secured with your property and thus, you risk repossession if you fail to repay the money.

Costs And Other Considerations About Bankruptcy

If the above alternatives won’t do any good for you, then, bankruptcy may be the only choice. Bear in mind however, that bankruptcy is not a simple or inexpensive process. There are two types of bankruptcies: Chapter 13 and Chapter 7. The filing fees are around $300 dollars, chapter 13 being slightly cheaper. Chapter 13 provides you with some benefits like the possibility of keeping a mortgaged property and work out a repayment plan to cancel your debts with advantageous terms without having to surrender all of your assets.

Chapter 7, on the other side, is a straight bankruptcy where all your assets are sold in order to repay your debts and only after all your debts are canceled the remaining (if any) is handed over to you and your bankruptcy is discharged. Bear in mind also that not all debt is erased with a bankruptcy process and you won’t be able to keep all your assets; not even with Chapter 13.



Kathy

Arlene Schneider asked:


Debt relief can come in many forms. What it is to you depends on what your current financial situation is and how much spending discipline you have. If you have debt and are looking for a way out, it is important that you look at all your options. There are 4 different ways that you can approach your debt and as mentioned before, not all of them will work for you depending on how much debt you have, if you are past due and how much excess income, if any; you have to apply to pay off your accounts.

Pay your debts yourself-many people think this is the only way and it can be done. This plan takes a lot of discipline and not everyone has that. You have to make a detailed list of who you owe, how much, your monthly minimum payment and your interest rate. You make minimum payments on all accounts except the one with the lowest balance. On this account you pay as much as you are able. Once it is paid off, you do the same thing again. You should be putting all extra money to the account you are currently paying off. This will work best if you cut back on your expenses and increase your income. This method will keep your credit in tact and will teach you good money management.

Debt Counseling-this is a type of debt consolidation that is not a loan. Your interest rates will be reduced and possibly even eliminated. You will no longer be accessed late fees or overlimit fees. Your accounts will be closed and you will not be allowed to open new ones while you are enrolled in the debt management program. You make one monthly payment to the credit counseling organization and they disburse it to your creditors for payment of your accounts. This is not a good option if you are more than 3 months past due on your credit card accounts. This program should take no more than 5 years. If it does, you should consider another option. The impact on your credit will be minor.

Debt settlement-this is a program whereby a debt counselor negotiates a reduction on the balances of your debts. Your debts are reduced on average from 30-50% and as much as 85%. Debt settlement can save you a lot of money and can have you out of debt in 12-36 months, but this does not come without a price. It will have a negative impact on your credit. This is a good alternative to bankruptcy and works if you have debt over $10,000 and debt that is over 3 months past due.

Bankruptcy-this is an option that is reserved for when nothing else will work. It is not the free ride that it used to be and will be a reorganization of your debts. This can remain on your credit record for up to 10 years.

You do have options for debt relief. It is just a matter of deciding which option is going to work best for your financial situation and discipline.



Pamela

foundmercy asked:


My brother is on disability, does not work, has no assets. I heard that he can have his debt cleared by sending the letter of incompetence to each of of his creditors. Is this true?

Kansieo.com

Christina Costa asked:


Are you like the thousands of people who are looking for debt relief? You should know that there is help and it is not very hard to get! Now, what you need to think about is timing. Most will realize they are in debt, but put off getting out of it and in the meantime falling even deeper. The last resort is usually filing for bankruptcy and that is when people feel all hope is lost.

Don’t lose hope; there are debt management companies available that can provide many services. These services range from debt settlement, debt consolidation and if necessary, bankruptcy.

Now, let me just say before you jump into bankruptcy you might want to review the options you have. Debt consolidation is when you take out a loan to pay off the existing debts you have. You are consolidating the debt into one lump sump basically. Then you are making one payment each month on the debt consolidation loan. This is ideal for those with great credit or if possible any collateral is offered up with the loan.

One form of debt relief can be attained through credit counseling.

The credit counseling agency will work with your creditors to get the lowest possible interest rate. Usually it will be lower than 10% and there are credit card companies that might even dismiss the interest rates. This could help you to pay off those accounts in less than five years.

Another type of consolidation loan that can bring debt relief is one where you borrow on the equity on your home. That money can be used to pay off your debts. Consider if using secured credit to eliminate unsecured debt is the way to go. You are using one of your most valuable assets in the process.

Do you have a large amount that you owe to creditors? You do not necessarily have to worry about paying that all in full. If you work with a debt settlement agency then you would get the type of debt relief that works through negotiations. Debt settlement is when your creditors will negotiate down the balance to one that could even be 40 to 60% of what you owe! This will show up on your credit as being settled, but anything is better than having a bankruptcy on your report!

Bankruptcy, in my opinion, is your absolute last resort. This is going to negatively impact your credit report, anywhere from seven to ten years. It is pretty impossible to get approved for any loan during that time period. There are a few lenders who might approve you, but the interest rate is going to be sky high.

Debt relief and help can come in many different formats. There advice on creating a budget, controlling your spending, debt consolidation and of course, bankruptcy. A debt counselor can take a look at your finances and really focus in on what is going on.

Credit counseling is a great way to learn how to improve on your finances. By creating a budget, controlling your spending and getting a consolidation loan, you can be on your way to financial freedom! Credit counseling does not show up on your credit report, so it can be beneficial and not harmful to you.

In addition to credit card counseling agencies, there are also debt settlement companies who can provide debt relief. It is time to get serious about getting out of debt, and there is no time like today to get started. Take a moment to do some research on the internet because there are free debt quotes that you can get in just seconds. No matter what, keep your goals in place and focus on becoming debt free. It will become a way of life before you know it.



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Christina Costa asked:


We look for relief in many areas of our lives, but have you ever thought about debt relief? If you feel your stress level rising when you think about your current situation then maybe relief is just what you need. Are you losing sleep? Wondering how you are going to make your payments? There is hope and a way to get out of the tough situation you are in.

First of all, let’s be realistic. If you haven’t already created a budget now is the time. You can decide if you would like to consolidate your debts, work with a credit counseling company or debt settlement. The last and final option should be bankruptcy, and avoided if at all possible. Yet, everyone is different and their debts are all different. As are the situations and responsibilities we all have to ourselves and our families.

I am just going to review a few ways you can get debt relief. Like I said, lets start with a budget. It’s pretty easy to get into debt, spending is fun right? Along with being necessary and a way for life, for some people. Not many people will sit down and keep track of where every dollar is going. This might sound like work and time consuming, but I have to say it’s necessary if you want to recognize where your money is going. It never hurts to get organized, and when it comes to your finances it can only help you!

First of all, keep track of your monthly income. Then make a list with all of your creditors and their balances. Figure out due dates and minimum payments. Next, start keeping track of what you are spending money on. Car washes, coffees, magazines, dinners out, movies, etc. they can all add up! Overspending is very easy to do, when you are not thinking about it. A budget will help you get back on track and set some limitations on yourself.

Debt consolidation is pretty much what it sounds like. Taking all of your debt and putting it into one loan. This can be accomplished by taking out a second mortgage or home equity line of credit. If you are able to get a loan with a lower interest rate, usually by putting up your home as collateral, you can pay off your debts quicker. This usually though can only apply to people who are in good standing with their credit. And if you do not pay off the loan, you have now risked losing your home.

If you decide some counseling might be for you, there are credit counselors that can help you. Here you will get advice on how to manage money and be responsible with your credit. They can take a close look at your situation and help you with your budget. Also, credit counselors can help you work out a repayment plan. I think if you choose credit counseling, do it in person for the best results.

Debt Settlement is another option to help get some relief. A debt settlement company will work with your creditors and get them to negotiate down what you owe. Once they reach a balance they will be paid off in full. Debt settlement can be very beneficial because most creditors are willing to negotiate down 40-60% of what you owe! This usually will only work if you are more than 30 days behind on your payments. If you are current and are showing that you are capable of paying, creditors are not willing to settle.

Bankruptcy is really the “last resort” because it has the most serious results. This will stay on your credit report between seven and ten years. That is a long time if you think about it, and in that time you might want to purchase a home or apply for a new job. Your credit report is looked at in professional situations and seeing the word “bankruptcy” doesn’t show you to be very responsible. Your credit report is not sympathetic. It doesn’t feel sorry for you if you lost your job, got ill or just had some hard times. Your credit report just shows the facts that you were late on paying off your debts.

Now for some people, bankruptcy is the only option. My advice, just wait until every other option proves you wrong. Debt settlement is usually the last road taken before filing for Chapter 7 or 13. If you do have to file bankruptcy, you will end up getting a fresh start, even if it takes many years to build back up good credit.

These are a few options you have when looking for debt relief. Find the solution that works best for you. Know that there are many reputable companies available and can help you now. The internet is a wonderful tool for researching these companies and there are debt specialists who will help you start repairing your credit immediately. You might be in debt now, but it doesn’t have to last long. Relief is available!



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Ted Batron asked:


Secure your credit card debts using credit card debt relief immediately if you want to put an end to your debts. Expenses are always increasing in great proportion to the income. Your grocery bills and gas prices would not go down and the increasing prices have left many people as debtors. Increasing credit card debts would mean an increase in the amount of loan you have to pay back. Nobody wishes to stay as a debtor. If you don’t secure your debts now, you will be scratched by your creditors at some point in your life. Therefore, it is best to seek credit card debt relief.

Paying your bills as one of credit card debt relief options

If you are able to pay only the minimum amount on all your credit cards, it is a sign that you’re buried with your credit card debts. When the credit card companies start calling you often, then you should be alarmed that you are going to fall into the pits of debt. Credit card debt relief steps should be taken immediately to recover from your dues.

The most sensible credit card debt relief option on this part is to pay back all your credit card bills every month. Chuck Hoskins from the website http://www.No-Debt.Net says that “basically anything short of paying your bill on time, and in full will affect your credit score. But you can minimize the impact of insolvency, avoid bankruptcy and get back in the credit good graces a lot faster by negotiating and paying rather than just avoiding your debt”. You have to cut down your expenses and start using your extra money to pay your creditors. If you are not taking appropriate steps for credit card debt relief, then your credit report will be badly affected.

Negotiate with your credit card company: a credit card debt relief alternative

Under tight financial situations, you may miss credit card bills for several months. This will result in accumulation of huge debts because the credit card companies will charge higher interest rates right then and there. One great solution that credit card debt relief offers is for you to talk with your credit card company and negotiate interest rates. When you have lower interest rates, you have to make lesser payments and you would be able to clear off your debts soon. Negotiating with your credit card company is a good credit card debt relief procedure for you and the company. Your credit card company would surely listen to you because they are also interested in getting their money back.

Debt settlement companies

There are many companies that would help you obtain credit card debt relief. These companies would mediate and talk to your creditors on your behalf. They would try their best to negotiate for the reduction of your loan amount. They would not take the responsibility to pay your bills, though. Their role in credit card debt relief is to help you get rid of your debts in an easy way.

Filing for bankruptcy as a form of credit card debt relief

The last option for credit card debt relief could be the possibility of filing for bankruptcy. If you have filed bankruptcy, you need not pay back your debts because you are declared insolvent. Filing for bankruptcy may not be a tough process, however the effects are painful. This credit card debt relief option would be present in your credit report for 10 years preventing you from acquiring any type of loan.

There are various credit card debt relief options. You may choose from one of these alternatives in order to stay debt free. Only a debt free man can live happily and spend his money in the way he wishes. Your personal freedom in this aspect depends upon your willingness to obtain credit card debt relief.



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