Debt relief for over leveraged consumers has become bigger than ever. There is over $13 Trillion of consumer debt, with almost $2 Trillion of that amount in revolving debt. With rising interest rates and exploding debt levels, what does this mean for the American family? It means you better either be debt free, have rising income levels, have equity in your home… or start looking around for debt relief.

There are as many forms of debt relief out there as there are ways to get into debt. You’ve probably heard terms like debt consolidation and credit counseling, but have you heard of debt resolution, debt settlement and debt roll-up? Since there are so many debt relief alternatives, it is important to learn about all of the options and then assess what your primary needs are – so that you can pick the debt relief option that best fits your needs.

When evaluating debt relief, the four primary concerns for most consumers are: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the consolidation program. Be sure to evaluate each program, relative to your prioritization of these factors.

Credit Counseling
Credit counseling, or signing up for a debt management plan, is a very common form of debt relief. There are many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. So if your primary concern is to lower your monthly payment a little bit, then evaluate if credit counseling is your best form of debt relief. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts – but with lower monthly payments. On average, most online credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan DOES show up on your credit report… and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy – or using a third party to re-organize your debts. So if your credit profile is a concern for what debt relief program you select, be aware of how your future lenders will perceive credit counseling.

Debt Settlement
Debt settlement, also called debt negotiation, is a form of debt relief that cuts your total debt, sometimes over 50%, with lower monthly payments. Sound good? For most people, saving money with a low payment meets their debt relief needs. Debt settlement programs typically run around three years. It is not a perfect debt relief solution, however, and it is important to keep in mind that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The debt relief trade-off here is a negative credit rating versus saving money.

Debt Consolidation Loan
Many people think first of a debt consolidation loan when seeking debt relief. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one loan for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt. It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! This means that debt consolidation, as a form of debt relief, can actually cause a bigger problem than what you originally had. In the case of a debt consolidation loan, most mortgages are 30-year loan, which means that the total cost and the time to debt freedom could be very high… but the monthly payment will be lower than other options and there is no credit rating impact. So if you are a homeowner and your credit rating is your primary concern, then debt consolidation may be the best form of debt relief.

Net-net: while there are many forms of debt relief, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the online debt consolidation option that fits for you.

Regardless of the form of debt relief that you select, it is equally important to find a reputable provider. Make sure the company you select is a member of the better business bureau (www.bbb.org) or evaluate their history and legitimacy by doing reference checks and make sure that your program will be as successful as the sales story you will hear on your consultation. Also, make sure that education information and advice is free of charge… they should be getting you debt free, not charging you for what should be part of the program. If you need help evaluating alternative providers, Bills.com makes it easy for you to find a provider, by following this link: https://www.bills.com/debthelp/debt/

So look around, evaluate your own concerns, and then pick a debt relief provider that meets your needs.

Source: http://www.bills.com/debt-relief-article/

Popularity: 2% [?]

Issues such as what course to study, where to study and whether to stay at home are central to any would-be-student’s concerns. But the latter of these issues simply isn’t an option for many students, unless they are lucky enough to live within commuting distance of their university of choice. Also, many see moving into halls and meeting new people as being an integral part of student life. So, even before university life has begun, there are real financial obligations that must be met.

Furthermore, there is now more flexibility in terms of what universities can charge for tuition fees, meaning students can pay anything up to £3000 per year in fees, almost three times the amount of only a few years ago; so in short, studying is a very pricey venture and for many students debt is a simple fact of life that has to be faced and managed accordingly.

It’s also worth noting that even after graduation, that lucrative dream job may not – and frequently does not - happen immediately. With this in mind, it’s worth perhaps looking at the numerous debt solutions that are out there, to help stave off the creditors and manage the debt sensibly, sooner rather than later. It probably goes without saying that the last thing that is needed is to go down the bankruptcy route.

Before bringing in any external parties to help manage the debt, there are small steps that can be taken to help alleviate the burden of debt. Firstly, check all the interest rates on those maxed-out credit cards, as the rates may not be as favourable as they could be. Many credit cards offer 0% interest on balance transfers for anything up to a year; so a considerable amount of money could be saved by doing very little.

There are also graduate loans available at most banks, tailored specifically for recent graduates. These are becoming an increasingly popular method of debt-consolidation for graduates and are a much easier way of managing the debt. Once these options are explored and there are still clear, seemingly insurmountable financial hurdles, it may be worth looking for help externally.

A debt management company can be used to help administer the debt and act as the middle-man with the creditors. They will negotiate an affordable set monthly payment and even collect the money themselves and distribute accordingly amongst the creditors. Alternatively, there is an IVA (individual voluntary agreement), whereby a formal plan is drawn up with creditors to make reduced payments towards the total debt, and after 5 years a percentage of what is owed is paid and the debt can be considered as settled.

With rising university fees and increased living costs, debt is a simple fact of life that must be faced for many students. It’s how this debt is managed that will be key to financial security for many years after graduation.

Popularity: 12% [?]

Debt settlement, in simple terms, means paying up what is owed in one lump sum, or in a number of installments. A debt settlement solution usually takes only a few months to complete, and afterwards, all debt is written off as if it never happened. Sometimes, the amount required for paying up is significantly less than the original amount of debt. There are times that you will only be made to pay about 40% to 60% of your original debt.

Going into debt settlement as a solution to alleviating one’s self of debt is not as simple as it is defined, however. If you are looking into debt settlement as an option and a solution to your financial problems, you need to do a little bit of work to get it done. The first thing you need to do is to choose the right service that will get your debt settlement solution carried out. There are a number of services that offer solutions towards debt settlement, but bear in mind that there are no quick fixes towards paying off debt. A real and legitimate debt settlement solution company will not give you a discounted rate on your payables until after negotiations with your creditors.

Before you choose a service that will help you come up with a solution for your debt settlement concerns, investigate the credentials of the company you choose. Ask for references; a good debt settlement company will not hesitate to provide you one.

Again, remember that a decent company that can provide you with solutions towards debt settlement will never be able to throw a realistic figure at you within minutes of your first contact with them. They will not give you any false promises either. They will need to negotiate with your creditors before they could throw you a figure that you could pay off.

Once the solutions company that you have engaged to act in your behalf on your debt settlement has done its part in the negotiations and finally names the amount that you need to pay up, make sure that you have the money at hand. It could be anywhere from 5% to 95% of the original amount that you owe, but it usually falls from 40% to 60%. The best thing you could do is to prepare yourself to pay 50% of what you actually owe. In case the amount you become required to pay up is smaller, then you would have some money left for savings after your debt settlement. If it is more than 50% though, give your creditors the money that you have prepared and ask them to allow you to settle the remainder within 60 to 90 days.

Check these links to learn more:

http://www.curadebt.com/debt-relief-solution.asp

http://www.curadebt.com/consolidation/default.asp

Popularity: unranked [?]

Fair Debt Collection Practices Act (FDCPA)

The FDCPA is the consumer protection act designed to prohibit abusive practices by debt collectors. The FDCPA specifically defines a collector as any person that collects debts owed to others, and may include attorneys that collect debts on a regular basis. Note that the language indicates “debts owed to others”, and therefore excludes original creditors from its scope.

Getting Started

When a debt collector initiates a collection effort they must send you a written notice indicating: 1) How much you owe, 2) The name of the creditor to whom the debt is owed, 3) Notice that unless you, within thirty days after receipt of the notice, dispute the validity of the debt or any portion thereof, the debt will be assumed valid by the debt collector, 4) That if you dispute the debt in full or in part within thirty days, the debt collector will obtain verification of the debt and mail it to the consumer, and 5) Upon written request within thirty days, the debt collector will provide you with the name and address of the original creditor, if different from the current creditor.

Exercising Your Rights

Your rights under the FDCPA, as indicated above, allow you to dispute the validity of the debt in full or in part within 30 days of receiving written notice. Your legal rights, as in all credit repair efforts, are the tools that you will use to establish the facts. An extra benefit of disputing the validity of the debt is that the collector must cease all communication until they have furnished the documentation that you have requested. In many cases, especially with older debts where documentation could be hard to obtain, you may never hear from the collector again.

Bringing an Attorney into the Picture

If you have an attorney, the debt collector must contact the attorney instead of you. This is a good way to put an end to abusive collection calls. The collector will undoubtedly be on best behavior when communicating with an attorney and a good deal of grief may be avoided. In many cases unscrupulous collectors sense weakness in the consumer and take advantage, often acting illegally to extort payment. We highly recommend hiring an attorney for anyone that feels out of their depth and uncomfortable when speaking with a pushy collector.

Cease Communication Letter

If you would like the debt collector to stop contacting you altogether you can send a letter asking them to stop. Once they receive your letter, they are allowed to contact you only one additional time for the purpose of telling you that they intend to take a certain specific action. This strategy is often recommended by credit repair companies, but be aware that in some cases, especially with recent or large collections, your letter may push the collector into taking legal action to recover, such as filing a lawsuit.

Statue of Limitations

Many collections efforts are not legitimate. Statutes of limitations for collecting debt are typically far less than the statutes of limitation for reporting debt on your credit report. Debts may be collectable for as little as three years. It is crucial to understand that the statute of limitations clock starts with the original creditor. For most states the statute of limitation starts on the day you made your last payment on the account. This date can not be reset by the passing from creditor to collector, or from one collector to another. But beware that in some states partial payment can reset the statute of limitation clock. Check your state statutes of limitation, easily found on the internet, or speak with a credit repair expert before assuming anything.

Bad Behavior

The FDCPA prohibits a wide range of specific inappropriate behavior by collectors. Prohibited practices include contacting you before 8 a.m. or after 9 p.m., calling you at work if you tell them that your employer does not approve, use of threats, obscene language, repeated calls designed to scare you into making payment, implying affiliation with the government, or implying that you have could be arrested for not paying a debt. In the credit repair business we are regularly asked about specific collection practices. Many of the stories we hear detail outrageous and illegal behavior...

Pick up the Phone

If you feel that a collector is behaving in an improper or illegal manner, the ultimate resource for answers is the FTC. If you find yourself on the telephone with a collector in such a situation it is entirely appropriate for you take careful notes: Ask their name (the FDCPA prohibits the use of false names), ask them to repeat anything that you are uncomfortable with, and then call the FTC. They welcome phone calls. The toll-free number is (877) FTC-HELP. That’s easy!

Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.

Popularity: unranked [?]

As the cost of living keeps increasing with the passage of time, people are trying to find various means to meet their rising demands and diminishing incomes. Loans, credit purchases and installment schemes have; therefore, become an integral part of the life of an average UK citizen. However, the increasing burden of debt due to such expenditure pattern induces a pressure situation where more and more individuals are falling prey to bad debts and arrears, thereby adversely affecting their credit history. In such situations, the debtors need to look for alternative means to find a way out of these multiple debts, if they want to avoid the state of bankruptcy. One such feasible solution to handle these multiple debts in a planned and systematic manner to achieve freedom from debts is through the convenient and efficient debt management help UK that is provided by select financial companies.

Every category of debtors, be it individuals suffering from poor credit rating, bad debts, arrears, defaults or CCJs, can apply for the debt management services UK, to get rid of all their multiple debts. The company providing the debt management services UK offers many other services that are of immense benefit to the debtors. A solid debt management plan and debt consolidation of the existing loans is what the debt management companies have to offer. Often, their executives will negotiate with the lenders and creditors in order to reduce or freeze the charges and penalties on the existing loans, which helps to bring down the loan amount to an affordable level.

Most of the companies providing the debt management services UK also have their own online website, which is the best source of information regarding all their services. It is easy to apply for such services as the debtor only needs to fill up an online application with few basic details and the executives of the company will then get in touch with him promptly. Once the requirement of the client has been assessed and approved, the company then goes on to consolidate all the multiple debts into single, affordable payment. A debt consolidation loan is then extended to the debtor to help him repay all the debts at one go and thus achieve instant freedom from all multiple debts that had been piling on for so long and avoid bankruptcy.

The debt consolidation loan offered by a company providing debt management services UK, come at a much lower rate of interest and hence, is much easier to handle than all the multiple loans of the debtor. The individual can then gradually pay off this single loan through easy monthly installments, which allows him to not only achieve freedom from debt but also have more disposable income at the end of each month. So,, if you too are suffering from the burden of multiple credit card or other loans and debts, then opt for a reliable company offering suitable debt management plans and find an easy way out of debts and start life afresh.

Popularity: unranked [?]