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Posts Tagged ‘debt negotiation’

Our glorious nation is facing dangerous financial problems at the present moment.  For starters we’re  in the midst of the most crippling economic collapse to strike since the great depression, we are also struggling with two wars and may end up getting stuck in a third, and to top things off consumer credit card debt is reaching an all time high.  All of these issues are leaving our countrymen struggling pretty badly when it comes to their finances.

For most Americans it would be great if they could find a method to get out of debt soon, thus allowing these folks to free up space in their monthly budget and maybe escape the terrors this recession is bringing to millions of families nationwide.  It’s pretty bad that most consumers don’t know just how great of a negative effect credit card debt can have on their financial well being.  

Credit card monthly minimum payments are devised to take at least three decades to completely pay down, and during this pay off period the debtor will wind up paying back over six times the original balance in interest alone; and take note these numbers are with a low APR.  The end goal of the credit card organization is to get the interest rate up to the default, which will at least triple all the figures listed above.  

When it reaches this point most debtors think a Chapter 13 is their only choice to get rid of debt, but the actuality is there is another much more dependable answer that has been vastly helping US residents all across the nation.  

This plan is credit card debt negotiation a process where the debtor can expect to save cash and time on the path to financial freedom.  Throughout the debt negotiation process saving up to sixty percent of how much is owed on the current balance is extremely common.  The system itself is not all that easy, but thankfully for indebted Americans there are debt negotiation companies that can tremendously aide consumers in setting up the correct plan to help them escape this debt headache.

The truth is that anyone who is trapped in debt during this recession would greatly advantage from getting rid of debt.  No one should jeopardize their families future by continuing to pay monthly minimum payments that will last until death and drain someone’s bank account all for the profit of the credit card companies.   The credit card companies are not the mates of American consumers all they are concerned about is making as much profit as possible and they don’t remotely sympathize about their customers heartache.

Unless you have been living in a cave your must be aware that we here in the USA are trapped in the midst of a miserable economic collapse.  Without having to mention this is causing tremendous loss to many families.  There are an almost a never ending number of foreclosures plus high levels of unemployment.  To make matters worse credit card debt is on the rise.  This is leaving millions of people in predicaments with their debt that is very hard to cope with.  Somewhere along the line people start considering reaching out and getting some assistance with their debt situations when they come to understand that there aren’t very many options available to them.  The two most popular of credit card debt reduction programs are consumer credit counseling programs occasionally known as a debt consolidation plan and credit card debt settlement often times known as credit card debt negotiation.  

Both of these plans do have the potential to help people get out of debt much faster than if they were to just hang out on the credit card debt treadmill and pay monthly minimum payments.  But both of these plans are very different from each other.  

A consumer credit card debt counseling program has very enticing benefits; one being they can typically get the interest rates reduced.  Another extremely nice part of this plan is that you will just make one monthly payment to the credit counseling firm in which they pay out to your creditors on your behalf; thus making your life much more simple in terms of paying monthly bills.  Usually a credit counseling program can last anywhere from 5-8 years to get out of debt.  

Credit card debt settlement is a much different type of a plan.  For starters you actually reduce your balances not your interest rate.  So you end up saving a lot of money, in many situations the debtor will see a savings of 50% or more of what they owe.  Another extreme difference from a credit counseling plan is that you will be out of debt much sooner with debt settlement, in most cases no more than four years.  But there is one downside, in order for the credit card companies to be in position to negotiate a debt settlement the credit card accounts must go past due; the credit card companies will never negotiate when you’re up to date with the payments.  So this does have a adverse effect on the credit history.  

The damage done to the credit report is not permanent though and it will go back up towards the end of the credit card debt settlement program.  For the vast majority of folks in credit card debt one of the two plans reviewd above will be of assistance.  Those debtors who have no real issue paying their minimum payments right now should go for credit counseling; but those who have a large amount of credit card debt and have a tough time maintaining there payments then credit card debt settlement would be a better fit.

On a recent post on Debt Cures Reviews, there was a discussion of which method of debt elimination was better – do it yourself or hire a debt settlement company. There are benefits of choosing either way so you cannot do too wrong by choosing either.  However, the cost between the two may make a big difference in how much you save in your credit card debt relief efforts.

When you are trying to eliminate your credit card debt, you are doing so because you are tired of making someone else rich while you struggle to just put food on the table.So why spend thousands of dollars hiring a company like Credit Solutions? While it is true that they have saved almost $900 million dollars for consumers, they have also made several million dollars in fees by providing their services.  

For the most part Credit Solutions can help you get out of debt within 12-36 months.  They can drastically reduce your credit card balances better than debt consolidation or credit counseling.  And it does not ruin your credit like bankruptcy for 7-10 years.  

But, then there is a company called Zipdebt.  Zipdebt will teach you how to settle your own credit card debt and cut out the middleman.  This allows you to reap even more savings on your debt elimination efforts.  When Zipdebt, you negotiate with the credit card companies on your own and work out your own settlements.  And if you need help crafting a good debt settlement letter, you can get that service too.  The founder of Zipdebt has over a decade of experience on both sides of the debt settlement industry so he has just as much expertise as Credit Solutions and he knows what works and how to get the best results.  And Zipdebt costs a whole lot less than hiring a debt settlement company.

You can save more money when you do your own debt settlement but you don't have to learn the whole process when you hire a company.It would be wise to do your research on debt settlement and debt negotiation and see how it can benefit you.  You can talk to Credit Solutions for free and hear their plan before you sign anything.  And you can try out Zipdebt for a full year and get your money back if you are not satisfied.

Are you suffering from the current financial crisis?  Have you been laid off and need some help with your credit card bills? Are you considering bankruptcy because you see no other alternative?  If any of these apply to you, read this article before you make a decision.  There is an alternative to bankruptcy and it is called debt negotiation but there are some things you should know about it before you decide to go down this route.

Debt Negotiation Advice

The first thing you should know about debt negotiation is what exactly it is and what it can do for you.  Debt negotiation is the process of negotiating with your credit card companies and getting your balance lowered.  You show them that you cannot pay your bills and if they do not negotiate with you, you will be forced to file bankruptcy and they will get no money.  So you point out that it is in their best interest to accept your settlement offer. 

What kind of results can you expect from debt negotiation?  On average, you can save 40-60% off your balances.  You can reduce what you owe significantly.Your settlement results will vary.  Your credit card company has to aggree to your settlement for you to save money.But, if they refuse to negotiate with you, you can wait until the account gets sent to a debt collection firm who may be more willing to settle your debts. 

Here’s more debt negotiation advice: if you choose to do it yourself debt negotiation, it will cost you nothing to settle your debt.You could also hire a debt negotiation firm and pay 15% of your credit card debt as their fee.When you compare the debt settlement fee to the fee for bankruptcy, bankruptcy will seem cheaper upfront.  Bankruptcy can cost you $500-$2000 and ruin your life for 7-10 years.  Debt negotiation can cost you $3750 if you have $25,000 of debt, $7500 for $50,000 of debt.  But when you settle your debt, you can start reestablishing your credit in as little as 2 years. 

What else should you know about debt negotiation?Your FICO score will drop when you negotiate down your debts because you won't be making your payments as you save up money to offer a settlement.  Since you do not plan to use credit cards anymore because they got you into this mess in the first place, this should not be a concern. 

So if you are considering bankruptcy, take time to look into debt negotiation and see if you can settle your debts for less than what you owe and get back your financial life in 2 years versus 7-10 years for bankruptcy.

There are a thousand and one commercials out there on debt management. It seems every time you watch TV, you see a couple of debt related commercials, right in between the Visa and MasterCard ones! This reflects how important debt management actually is.

The reason is because millions of us are dealing with more credit card debt than we can pay off. Their mailboxes are full of second, third, and final notices. Their phones are ringing off the wall with calls from bill collectors.

People can start struggling with debt for many reasons. Sometimes the reason is because of emergencies like sickness, injury, or the loss of a job that was believed to be secure. These things happen.

Sometimes people find themselves in deep debt because of their careless spending and oftentimes find themselves drowning in their sea of debt because of their inability to plan and budget. There was a time when debt management companies were more like social services than for-profit businesses. These debt management companies were nonprofit, and they were known as consumer credit counseling services (CCCS) affiliated with the National Foundation for Credit Counseling (NFCC).  But you could also go with debt settlement as well.

As more and more Americans became deeply embroiled in debt, companies began to spring up that are generally classified as debt management companies or debt settlement companies. These businesses do charge fees and their object is to make a profit.

Debt management agreements with debt management companies really are not for everybody who has a debt problem. The best way to assess for yourself whether a debt management company can help you is to add up all of your payments, and if you unsecured minimum payment obligation exceeds 20% of your take-home pay, then you might need their services.

Remember that only unsecured debt is covered by debt management companies. Unsecured debt is generally credit card debt. Your mortgage payment and your car payments are not unsecured debt.

Credit Solutions

As we start a new year, one common resolution people make is to get better control over their finances. And this year is no different, you want to get out of debt.  So you start exploring ways to get out of credit card debt and you find hundreds of solutions. Each ad you read or company you talk to says they are the best way for you to get out of debt and you should go with them.

A lot of companies make big promises.  One company that has been around for over 5 years is called Credit Solutions. In this article you will find a review of Credit Solutions, one of the largest debt settlement companies in the US.

Credit Solutions Review:

Credit Solutions will work with your credit card companies and negotiate down your credit card debt.  They aim to achieve a debt reduction of up to 60%.  Can you imagine getting your credit card balance reduced by 60%? Talk about a half off sale.

But it doesn’t always work out that easy.  You see, your creditors have to be willing to negotiate with Credit Solutions for you to have any chance of getting your debts reduced. If your creditors do not agree with what Credit Solutions wants then they cannot do anything for you.

And keep in mind that Credit Solutions cannot do anything that you cannot do yourself.Even though they may claim they know secrets about getting the best settlements.  All debt settlement companies will claim this.They want 15% of what you owe as their debt negotiation fee.

Do your research before you decide to sign with any debt settlement company promising to slash your credit card bills in half. There are ways to get out of debt, debt settlement is one of them.  It is only one step away from bankruptcy though.  So it will have a negative effect on your credit score.