Need Help Paying Off Your Old Dues and Balances? Debt Settlement is Your Best Alternative


Posted by DebtManagement

It is not at all uncommon to need a little bit of help paying down your old credit card bills. What you might have come to find out is that old debts can be especially hard to wipe out, since they have been building up interest over the years. If you are stuck with tons of old, past due debts, then you have a few different choices. You might choose to save up your money and pay off the debts in full. You might also choose to go with debt consolidation to bring down the interest payments. If you have a lump sum at your disposal, though, debt settlement is almost certainly your best possible option.

The nice thing about debt settlement is that you can take care of the entire situation right now. You won’t have to enter into any program and you won’t have to take steps to get out of debt. You just write a check and then you’ll have everything taken care of. There are some obvious challenges here, as most people don’t just have thousands of dollars laying around the house. If you do have that money, though, then you can get out of debt and stop all of the collection efforts right away, giving you the peace of mind that you deserve.

So why is this the best possible alternative? It is good for a number of reasons. One would be remiss if they didn’t mention the fact that you can save a ton of money. You will only have to pay off half of the debt in some instances and if you are good at negotiating, you can chop the amounts down even more than that. For people with debts into the thousands, this makes a lot of sense and it can set you up with significantly more money than you might have had otherwise.

It is also a solid alternative because you are starting over right away. If your credit has been wrecked by bad debt, then it’s important to get a brand new start and to get the clock ticking. Your credit report rolls over every few years, so the mistakes of your past will not kill you down the road if you are able to establish yourself financially once again. The key, though, is to make sure that you are actually putting these things in the past as soon as you can.

Debt Management Help – Viable Options For Fixing Debts


Posted by DebtManagement

People being in the clasp of multiple debts have become common today as more than 7000 loans go unpaid in UK almost everyday. So, for this huge population, there ought to be some remedies and here are they, the debt management help things.

You get into the clutch of multiple debts mainly because of your go beyond the pocket and this is somewhat psychological and indicts your behavioral pattern. You tend to spend more and here lies the problem. So, try to mend beforehand you go for management of your debts.

Anyway, there are many financial institutions that have come up with viable debt consolidation programs today. You can take any of their help. But consulting debt counselors is the best before you go. They take up your case with particular interest and bring out a comprehensive solution or a management plan for your unpaid debts.

Well, there are different financial packages these days in the market through which you can easily combat your debts. If you have multiple debts knocking at your door, there are debt consolidation loans that are proved to be enough beneficial. Here you can mush up all of your unpaid debts into a single loan and pay off all them through this. Here the main benefit is paying not only less interest but also there is a single loan instead of multiple debts and there is also a single interest rate attached to the loan, paying which is not a big matter anyway. You can take up the secured options or the unsecured options here. Secured options let you take the loan at low interest rate because of the assurance you put through the collateral pledging. Again, unsecured loans are the best for those who can not pledge any collateral for their loans.

Getting debt management help is easier online where a good many websites and web portals are flooded with articles on the debt management formulas and options. Also, lenders of debt consolidation are flocked over there and all of them are devoted to only one cause that speaks of providing a debt management plan viable for everyone.

Government Debt Help – Free and Easy


Posted by DebtManagement

The government has had no choice but to plough massive amounts of money into offering debt help to UK consumers who have serious financial problems.

Britain is sinking under a mountain of debt and 2008 is the year that attitudes towards personal finance and debt have to change if things are ever going to improve. Fortunately, the government has stepped in to offer debt help to those that need it the most.

When you approach debt management companies, they’re likely to give you some kind of spiel about government legislation allowing you to write-off large amounts of debt. This is what’s known as an IVA which is insolvency and should only be considered as an alternative to bankruptcy. This isn’t government debt help; this is often just debt help companies trying to set up an IVA so they can make a profit themselves.

The government have a section of their website dedicated specifically to debt help. It contains useful information on budgeting, reducing monthly outgoings and repaying debts. It also details the consequences of missing repayments and your legal entitlements with creditors.

The best thing about government debt help is that you know it’s impartial and that word is crucial for finding the best way out of financial difficulty. When you visit a debt management company or even your local bank you always have to wonder whether the things they’re suggesting suit your best interests or theirs.

If you’re one of the many UK consumers who continue to struggle with serious debts, make sure you see what the government can do to help before visiting your bank or any debt management company.

Shocking Facts – What Debt Settlement Companies Don’t Tell You


Posted by DebtManagement

If you’re thinking about using a debt consolidation or debt settlement service to help you get out of debt faster and save money on your monthly payments, make sure you do your homework before choosing a company. There are definitely shams and scams out there.

First let me say that debt consolidation is *not* the same as debt settlement/negotiation, which most people don’t realize.

Debt settlement companies charge hundreds of dollars as an initial “admin fee” to set up your account, plus a monthly service fee. The fees vary depending on the company and the amount of your debts.

Such companies take your money every month, but don’t make monthly payments to your creditors! Instead, they put it in a trust account, negotiate your debts with your creditors, then make a lump-sum payment when there’s enough in your account to pay a creditor in full.

That can take *years* depending on the amount of debt you have with each creditor. Meanwhile, you can be sued by your creditors and your wages can be garnished! (Or just don’t make payments to your creditors. You’ll end up in the same spot without paying someone to help you get there!)

Settlement companies don’t ask your creditors to stop all interest, late fees and overlimit fees from accruing. That means while the negotiations are ongoing, your bills will continue to grow! So if you’re sued and a judgement is brought against you, you’ll owe more money than before!

And shoddy companies, which there are alot of, don’t tell you *any* of this up front. I call it “getting permission by omission” because they simply don’t tell you how their program works *before* you sign an agreement with them. Or after, for that matter. But if you ask the right questions, eventually you’ll figure it out. (Or when the crap hits the fan. Whichever comes first.)

Let me give you an example of how debt settlement works.

Let’s say you have $20,000 in unsecured credit card debt. You owe $10,000 to one credit card company, $6,000 to another and $4,000 to a third. You agree to a 5 year plan where you pay $250 a month to the settlement company. (After all, $250 a month for 60 months is only $15,000, so you’re saving $5,000 and you’ll be debt-free in 5 years, right?)

The admin fee will cost you $750. Your first 3 monthly payments go towards that and nothing gets put into your trust account until your 4th month.

The settlement company keeps $50 of your $250 payment each month for the service fee. That means $200 a month is being added to your trust account.

Most debt settlement companies claim to be able to negotiate your debt for about 50% of what you owe. So let’s use the lowest credit card debt as an example.

If you owe $4,000 and your creditor agrees to accept $2,000 as payment in full, it will take 10 months at $200 per month to have enough in your trust account to pay off just that one credit card.

But remember, your first 3 payments to the settlement company only paid the admin fee. That means your first credit card settlement is 14 months *after* you started sending them money.

So what’s the problem? It’s simple. Your creditor won’t agree to accept half of your actual debt unless, or until, it can be paid in full. Otherwise, you’re expected to make your normal monthly payments.

Since you don’t have $2,000 in your trust account, and you won’t have it until more than a year after you stopped paying your creditor directly, they’ll probably take you to court and request that your wages be garnished long before you have that $2,000 built up.

And what about your other creditors? Well, they’ll be waiting even longer to get their money from the settlement company. The $6,000 debt will take 15 *more* months to pay off, assuming your creditor waits that long and agrees to 50%. And that $10,000 bill? You do the math.

On the other hand, if you signed up for a 3 year plan with the settlement company, your debts would be paid off sooner. But, the question is, will your creditors wait that long? Probably not.

The facts are, you can negotiate with your creditors yourself. Most will agree to take a smaller monthly payment from you and stop all interest and fees from accruing. And, of course, you’ll save thousands of dollars in fees to a settlement company.

Before signing up for any service, please be sure you check out the company thoroughly. And don’t let the words “non-profit” fool you either. Alot of debt settlement companies claim to be non-profit.

Going back to the example above, if you pay them $15,000 over a 5 year time frame and they settle your debts at half of what you owed, they’ll make $5,000 from you. I’d call that a profit, especially since they might not have actually helped you in any way.

Most companies will allow you to cancel your account and get a refund of what you’ve paid, less the non-refundable admin fee and the monthly service fees. If you feel you’ve been mislead about their program, don’t hesitate to argue til the cows come home. File a complaint with the Better Business Bureau or hire an attorney if you feel you’re getting nowhere.

You can visit the Better Business Bureau’s website ( http://www.bbb.org ) and find reports on hundreds of companies. Here’s a small listing of companies that have poor reputations with the BBB:

National Consumer Debt Council LLC – Irvine, CA (A.K.A. NCDC, United Consumer Law Group)

Financial Rescue Services – Burbank, CA

Debt Legal Services – Anaheim, CA

American Debt Relief – Los Angeles, CA (A.K.A. A M Debt, American Debts Relief, Debt Relief)

Please be very cautious when choosing a debt help company and ask lots of questions before agreeing to anything. If you find they’re evading your questions, run fast and run far. There are reputable companies out there, so keep looking until you find one.