Nowadays, many people can get into a bad credit situation if they do not keep track of their income and expenditure. Many young executives suddenly find that they are being offered credit cards by various companies. Those who are sensible will find a credit card that suits their needs, sign up, keep track of their purchases, pay off their credit card bills in full each month, and ignore offers from other companies.
There are others who may be dazzled by all the credit on offer and will end up with credit cards from several companies. They may easily end up making lots of purchases on credit while making the minimum payments on their cards. Then, one day they realize just how much debt they are in when they need a debt consolidation loan to get out of a bad credit situation.
At the Debt Consolidation and Debt Reduction Service, we do not give you debt consolidation loans. We help you reduce your debts by 40 percent to 60 percent and your payments by 40 percent. We see to it that you pay no interest, late fees, or penalties. We get you out of debt, and out of a bad credit situation, within three years. We ensure that you receive no more harassing phone calls from creditors by negotiating with them.
We can help you create a debt reduction plan. You begin by listing all your debts, estimating your income, and creating a workable monthly budget. You then have to find the money to pay off all your debts. We also offer credit counseling to our clients. We begin by advising our clients to stop using their credit cards—this automatically stops their debt situation from worsening. By helping you estimate your income and create a monthly budget, we ensure that you know how much you earn each month and how you spend what you earn.
You can consult us if you have debts that are over and above $5,000. You cannot hope to get out of a bad credit situation if you only pay the minimum amounts due every month—you cannot hope to get out of debt for a lifetime. If you decide to go in for debt consolidation—where the numerous payments you have to make each month are consolidated into one small sum—you can hope to get out of debt faster. If you are in a bad credit situation and need help with debt consolidation, fill out the form on our Web site. We will help you get out and stay out of debt for the rest of your life.
Wednesday, May 7, 2008
Debt Reduction Tips
If you are overwhelmed by debt, there are options you can take that will help you pay off what you owe without the stigma of filing for bankruptcy. We’ll examine four ways you can get your debt under control and start working back on the road to financial recovery.
1. Contact your credit card companies. Ask each credit card company for help. They aren’t likely to forgive you your loan, but they may be willing to reduce your interest rate. If your interest rate is currently 12% or more, ask if they would be willing to cut their rate in half. Why would they consider doing this? Well, creditors do not want you to default on your loan and they want their principle back. Sure, a nice fat interest charge would be ideal too, but if they sense you are ready to default on your loan, you can expect that a lower rate will be offered instead.
2. Consider a debt consolidation loan. You can pull all of your debt together into one account, preferably one featuring a fixed, low interest rate. You can use the proceeds from the loan to pay back your other creditors and then make monthly payments back to the loan consolidator.
3. Home refinancing. Refinancing your loan may be just the debt reduction help you need as the funds saved by you each month with lower mortgage payments could be used to pay off other debt. Caution: you are placing your home “at risk” if you opt for this choice.
4. Visit a credit counselor. There are credit counseling companies who help consumers by offering debt reduction plans to tackle debt. Essentially the way this works is that you will meet with an advisor and lay out a plan to repay your loans. The counselor will negotiate with lenders on your behalf for the lower rate which, in turn, will reduce your monthly payments as well as keep your credit rating intact. Credit counselors work for private companies as well as for government agencies or nonprofit firms. Be careful: a lot of what these people do you can do on your own. Read the fine print to make sure you understand any fees involved; make sure that your credit rating is not adversely affected too.
Don’t despair if you are well over your head in debt. Recent changes in U.S. bankruptcy laws have made filing for personal bankruptcy a less attractive option for consumers. Still, if it is your only resort visit an attorney specializing in personal bankruptcy to learn what your options are. Do not be bullied by anyone to make a decision that you will regret later.
1. Contact your credit card companies. Ask each credit card company for help. They aren’t likely to forgive you your loan, but they may be willing to reduce your interest rate. If your interest rate is currently 12% or more, ask if they would be willing to cut their rate in half. Why would they consider doing this? Well, creditors do not want you to default on your loan and they want their principle back. Sure, a nice fat interest charge would be ideal too, but if they sense you are ready to default on your loan, you can expect that a lower rate will be offered instead.
2. Consider a debt consolidation loan. You can pull all of your debt together into one account, preferably one featuring a fixed, low interest rate. You can use the proceeds from the loan to pay back your other creditors and then make monthly payments back to the loan consolidator.
3. Home refinancing. Refinancing your loan may be just the debt reduction help you need as the funds saved by you each month with lower mortgage payments could be used to pay off other debt. Caution: you are placing your home “at risk” if you opt for this choice.
4. Visit a credit counselor. There are credit counseling companies who help consumers by offering debt reduction plans to tackle debt. Essentially the way this works is that you will meet with an advisor and lay out a plan to repay your loans. The counselor will negotiate with lenders on your behalf for the lower rate which, in turn, will reduce your monthly payments as well as keep your credit rating intact. Credit counselors work for private companies as well as for government agencies or nonprofit firms. Be careful: a lot of what these people do you can do on your own. Read the fine print to make sure you understand any fees involved; make sure that your credit rating is not adversely affected too.
Don’t despair if you are well over your head in debt. Recent changes in U.S. bankruptcy laws have made filing for personal bankruptcy a less attractive option for consumers. Still, if it is your only resort visit an attorney specializing in personal bankruptcy to learn what your options are. Do not be bullied by anyone to make a decision that you will regret later.
Monday, March 31, 2008
How to Find a Debt Reduction Agency
If you are planning to reduce your debts, it is best to search for a reputable debt reduction service. You can opt for a debt reduction program that many companies offer to reduce your monthly payments or consolidate multiple debts into a convenient one-time payment. You can even expect them to take up the matter of lowering interest rates, and late fee reduction or waiver with your creditors. Such matters can be managed efficiently by reputable debt reduction agencies only.
How to Find a Debt Reduction Agency
How to find a debt reduction agency is an easy task, but you need to find a debt reduction program that helps you get rid of debt in a legal way. You will have to consider a number of factors before finalizing a debt reduction agency that will suit your purpose. When you think that, you cannot manage debts on your own; discuss the matter with a certified counselor recommended by your financial company.
A counselor will be able to recommend some reputable debt elimination companies to help you reduce your debts. Working with lesser-known companies has its shortcomings like hidden fees, and certain ambiguous clauses that work in their favor.
Finding the right reputable debt elimination companies can take long, which may test your patience. Do not fall into the trap of lesser-known companies just because of their impressive PR efforts or promotional strategies. You can also approach your local Better Business Bureau, Consumer Protection Agency, or your state Attorney General who can suggest you the right companies for debt reduction and or debt elimination.
You may also seek the information from the Attorney General’s office whether debt reduction agencies need a license to operate in the state, and whether the company you intend dealing with has a license or not.
Lower doesn't mean Better
Companies that offer the lowest interest rates are necessarily not the best companies. You should go through their terms of consolidated credit minutely and look to read between the lines. There could be some hidden costs involved, or other clauses that can spell trouble later.
Explain to your debt reduction agency the extent of your debts and ask for a plan that will make it convenient for you to pay off your debt. Some reputable debt elimination companies may offer free, no obligation consultation for debt reduction and debt consolidation. In addition, they may also offer you advice on how to manage your expenses and avoid falling in the debt trap again. This will help you rebuild your credit rating.
While opting for debt consolidation, you could choose a lower interest rate by paying a higher amount upfront. If you secure your debt consolidation plan with collateral like your home, you can bargain for a lower interest rate. Your debt consolidation company can ask for collateral if you have a bad credit history. Debt consolidation companies would certainly like to feel secured while dealing with people with bad credit histories; hence, the collateral.
It will be in your best interest to work with reputable debt elimination companies, since you would be dealing with the one you choose for a long time.
How to Find a Debt Reduction Agency
How to find a debt reduction agency is an easy task, but you need to find a debt reduction program that helps you get rid of debt in a legal way. You will have to consider a number of factors before finalizing a debt reduction agency that will suit your purpose. When you think that, you cannot manage debts on your own; discuss the matter with a certified counselor recommended by your financial company.
A counselor will be able to recommend some reputable debt elimination companies to help you reduce your debts. Working with lesser-known companies has its shortcomings like hidden fees, and certain ambiguous clauses that work in their favor.
Finding the right reputable debt elimination companies can take long, which may test your patience. Do not fall into the trap of lesser-known companies just because of their impressive PR efforts or promotional strategies. You can also approach your local Better Business Bureau, Consumer Protection Agency, or your state Attorney General who can suggest you the right companies for debt reduction and or debt elimination.
You may also seek the information from the Attorney General’s office whether debt reduction agencies need a license to operate in the state, and whether the company you intend dealing with has a license or not.
Lower doesn't mean Better
Companies that offer the lowest interest rates are necessarily not the best companies. You should go through their terms of consolidated credit minutely and look to read between the lines. There could be some hidden costs involved, or other clauses that can spell trouble later.
Explain to your debt reduction agency the extent of your debts and ask for a plan that will make it convenient for you to pay off your debt. Some reputable debt elimination companies may offer free, no obligation consultation for debt reduction and debt consolidation. In addition, they may also offer you advice on how to manage your expenses and avoid falling in the debt trap again. This will help you rebuild your credit rating.
While opting for debt consolidation, you could choose a lower interest rate by paying a higher amount upfront. If you secure your debt consolidation plan with collateral like your home, you can bargain for a lower interest rate. Your debt consolidation company can ask for collateral if you have a bad credit history. Debt consolidation companies would certainly like to feel secured while dealing with people with bad credit histories; hence, the collateral.
It will be in your best interest to work with reputable debt elimination companies, since you would be dealing with the one you choose for a long time.
Debt Reduction Services for you
Do you have several credit cards that have reached their limits and you find that paying the minimum monthly requirement is getting difficult? If you add the expenses of car payments, insurance, and mortgages on top of your mounting debt this can lead to a feeling of being financially overwhelmed. The way a debt reduction service operates is when you owe a particular balance to a creditor and negotiate to pay a lower balance. This differs from debt consolidation in that when you consolidate you pay a lump sum to an agency that then disperses the monies to the creditors that you owe. Creditors will agree to debt reduction if they believe that it is in their best interest.
Typically, those who request debt reduction services are individuals who are considering the option of bankruptcy as a form of clearing out their debt. Certain situations affect the pay off amount that creditors will offer. They will look at your credit report to see how you are paying your other debts. If it appears, you are paying everyone else in a timely fashion and neglecting them, they will most likely offer a high settlement based on the fact you appear to have the finances to be faithful to your other obligations. On the other hand, if they notice that your credit report shows you are not paying anyone they may offer a lower settlement. If their offer is in your opinion to high, then you can gather your financial information, including all incomes received and outgoing expenses to negotiate for a lower settlement offer.
When you have received a settlement offer either through a company you have hired or through negotiating yourself the creditor expects you to pay off the settlement with a one-time lump sum payment. There are exceptions to this rule such as if your debt is significantly high the creditor may consider payment arrangements over a short period. Usually they will offer up to six months. Another option is in using a debt reduction service that can negotiate for the settlement payments to stretch over a period up to four years.
The idea of using debt reduction services as a form of reducing your debt in and of itself sounds like a great idea. There are some points to consider if you are an individual who has good credit and has found himself or herself in a difficult spot financially, consider carefully before engaging in a debt reduction service. Once you do use this method, it will significantly lower your credit score, making obtaining credit more difficult. If you, on the other hand, are someone who has had a history of poor credit actually using a debt reduction service can change your bad credit rating from poor to good thus enhancing your credit status.
Typically, those who request debt reduction services are individuals who are considering the option of bankruptcy as a form of clearing out their debt. Certain situations affect the pay off amount that creditors will offer. They will look at your credit report to see how you are paying your other debts. If it appears, you are paying everyone else in a timely fashion and neglecting them, they will most likely offer a high settlement based on the fact you appear to have the finances to be faithful to your other obligations. On the other hand, if they notice that your credit report shows you are not paying anyone they may offer a lower settlement. If their offer is in your opinion to high, then you can gather your financial information, including all incomes received and outgoing expenses to negotiate for a lower settlement offer.
When you have received a settlement offer either through a company you have hired or through negotiating yourself the creditor expects you to pay off the settlement with a one-time lump sum payment. There are exceptions to this rule such as if your debt is significantly high the creditor may consider payment arrangements over a short period. Usually they will offer up to six months. Another option is in using a debt reduction service that can negotiate for the settlement payments to stretch over a period up to four years.
The idea of using debt reduction services as a form of reducing your debt in and of itself sounds like a great idea. There are some points to consider if you are an individual who has good credit and has found himself or herself in a difficult spot financially, consider carefully before engaging in a debt reduction service. Once you do use this method, it will significantly lower your credit score, making obtaining credit more difficult. If you, on the other hand, are someone who has had a history of poor credit actually using a debt reduction service can change your bad credit rating from poor to good thus enhancing your credit status.
Saturday, March 15, 2008
Avoid Bankruptcy On Individuals By Debt Reduction Services
Do you have several credit cards that have reached their limits and you find that paying the minimum monthly requirement is getting difficult? If you add the expenses of car payments, insurance, and mortgages on top of your mounting debt this can lead to a feeling of being financially overwhelmed. The way a debt reduction service operates is when you owe a particular balance to a creditor and negotiate to pay a lower balance. This differs from debt consolidation in that when you consolidate you pay a lump sum to an agency that then disperses the monies to the creditors that you owe. Creditors will agree to debt reduction if they believe that it is in their best interest.
Typically, those who request debt reduction services are individuals who are considering the option of bankruptcy as a form of clearing out their debt. Certain situations affect the pay off amount that creditors will offer. They will look at your credit report to see how you are paying your other debts. If it appears, you are paying everyone else in a timely fashion and neglecting them, they will most likely offer a high settlement based on the fact you appear to have the finances to be faithful to your other obligations. On the other hand, if they notice that your credit report shows you are not paying anyone they may offer a lower settlement. If their offer is in your opinion to high, then you can gather your financial information, including all incomes received and outgoing expenses to negotiate for a lower settlement offer.
When you have received a settlement offer either through a company you have hired or through negotiating yourself the creditor expects you to pay off the settlement with a one-time lump sum payment. There are exceptions to this rule such as if your debt is significantly high the creditor may consider payment arrangements over a short period. Usually they will offer up to six months. Another option is in using a debt reduction service that can negotiate for the settlement payments to stretch over a period up to four years.
The idea of using debt reduction services as a form of reducing your debt in and of itself sounds like a great idea. There are some points to consider if you are an individual who has good credit and has found himself or herself in a difficult spot financially, consider carefully before engaging in a debt reduction service. Once you do use this method, it will significantly lower your credit score, making obtaining credit more difficult. If you, on the other hand, are someone who has had a history of poor credit actually using a debt reduction service can change your bad credit rating from poor to good thus enhancing your credit status.
Typically, those who request debt reduction services are individuals who are considering the option of bankruptcy as a form of clearing out their debt. Certain situations affect the pay off amount that creditors will offer. They will look at your credit report to see how you are paying your other debts. If it appears, you are paying everyone else in a timely fashion and neglecting them, they will most likely offer a high settlement based on the fact you appear to have the finances to be faithful to your other obligations. On the other hand, if they notice that your credit report shows you are not paying anyone they may offer a lower settlement. If their offer is in your opinion to high, then you can gather your financial information, including all incomes received and outgoing expenses to negotiate for a lower settlement offer.
When you have received a settlement offer either through a company you have hired or through negotiating yourself the creditor expects you to pay off the settlement with a one-time lump sum payment. There are exceptions to this rule such as if your debt is significantly high the creditor may consider payment arrangements over a short period. Usually they will offer up to six months. Another option is in using a debt reduction service that can negotiate for the settlement payments to stretch over a period up to four years.
The idea of using debt reduction services as a form of reducing your debt in and of itself sounds like a great idea. There are some points to consider if you are an individual who has good credit and has found himself or herself in a difficult spot financially, consider carefully before engaging in a debt reduction service. Once you do use this method, it will significantly lower your credit score, making obtaining credit more difficult. If you, on the other hand, are someone who has had a history of poor credit actually using a debt reduction service can change your bad credit rating from poor to good thus enhancing your credit status.
Debt Reduction In Mortgage And Loans
Most of America is held in the death grip of mortgage debt, student loans, and credit card bills. It's not your fault, so why should you suffer for it? It's one thing to borrow money and pay it back, but it's quite another when you live in a system which practically requires putting yourself in debt as soon as you hit adulthood. Except the system doesn't care that it's forcing you to sacrifice your quality of life -- as long as they make money, they're happy! There are many debt reduction tips out that can speed up the process of getting out of debt and relaxing again.
* Tip #1: Debt Worksheets
Debt worksheets are great for people who like to stick to a system. You can easily make your own planner worksheet for debt with just a chart that lists your daily income, your required minimum payments for bills, your other expenses, and any money left over. People are often surprised that just by laying everything out in one worksheet can reveal an obvious problem that they never noticed for a long time. Keep a calculator handy, and don't take shortcuts by leaving it to your memory or trying to get away with mental math!
* Tip #2 Debt Reduction Snowball
If the debt reduction planner doesn't give you any ideas, use it as the basis for what's called a snowball. Write down all your required bill payments and incomes, and make notes of the minimums required every month. Start by paying the bare minimum for all but the smallest debt balance -- any money you have left goes towards this smallest one until it's paid off. Once that one's gone, take all the money that used to go towards that particular debt and put it toward your next smallest bill. Keep doing this to build up your debt snowball. Pretty soon you'll be chopping substantial chunks off the bigger debts.
* Tip #3: Roughing It
It's the oldest trick in the book, but you can really quicken the debt reduction by cutting corners everywhere. Don't buy candy, don't go to the movies, cook more often. Look for bargains between stores and clip out coupons. It's been said that time and money are interchangeable; spend one and you'll save the other. Whatever extra bit of money you can save at the end of the month should go right toward your debt.
As you can see, most of this stuff is about careful planning and common sense. But, if you're really drowning in debt, there are some really incredible secrets out there. I can't get into them here, but a visit to this website has been a rapid turning point toward a debt-free life for a lot of people. If your debt is bad enough that you don't see an end to it anytime soon, I highly suggest you consider that.
* Tip #1: Debt Worksheets
Debt worksheets are great for people who like to stick to a system. You can easily make your own planner worksheet for debt with just a chart that lists your daily income, your required minimum payments for bills, your other expenses, and any money left over. People are often surprised that just by laying everything out in one worksheet can reveal an obvious problem that they never noticed for a long time. Keep a calculator handy, and don't take shortcuts by leaving it to your memory or trying to get away with mental math!
* Tip #2 Debt Reduction Snowball
If the debt reduction planner doesn't give you any ideas, use it as the basis for what's called a snowball. Write down all your required bill payments and incomes, and make notes of the minimums required every month. Start by paying the bare minimum for all but the smallest debt balance -- any money you have left goes towards this smallest one until it's paid off. Once that one's gone, take all the money that used to go towards that particular debt and put it toward your next smallest bill. Keep doing this to build up your debt snowball. Pretty soon you'll be chopping substantial chunks off the bigger debts.
* Tip #3: Roughing It
It's the oldest trick in the book, but you can really quicken the debt reduction by cutting corners everywhere. Don't buy candy, don't go to the movies, cook more often. Look for bargains between stores and clip out coupons. It's been said that time and money are interchangeable; spend one and you'll save the other. Whatever extra bit of money you can save at the end of the month should go right toward your debt.
As you can see, most of this stuff is about careful planning and common sense. But, if you're really drowning in debt, there are some really incredible secrets out there. I can't get into them here, but a visit to this website has been a rapid turning point toward a debt-free life for a lot of people. If your debt is bad enough that you don't see an end to it anytime soon, I highly suggest you consider that.
Monday, February 25, 2008
Debt Consolidation Advice And Solutions
If you are one of the many millions of people who are has a debt problem you may at this stage think that the whole world is against you. Despite your best efforts, working as hard as you possibly can and spending as little as is humanly possible, each month the amount you owe becomes higher and not lower. The interest from loans and credit cards is crippling you and it is very hard to know what to do next. In this article I will be writing about the ways in people can start to turn the tide, ways which can eventually lead to a life free from debt.
The time has arrived, you have spent far too long burying your head in the sand hoping that this horrible debt problem would just disappear on its accord. Lets face it that was never going to happen, you were never going to win the lottery or meet that millionaire, it is up to you to find the solution and find it you will.
I think the first and possibly the most important thing to do is to be honest with your immediate family about the scale of debt that you are in. This is without doubt likely to be very hard to do but you are at a stage where you need the help and support of those closest to you.
I would then contact people like the National Debt Line who will have heard similar stories to your own on a daily basis and will therefore be able to give you some sound advice. They can point to you in the direction of companies who can arrange a freeze on the interest of your debt and an affordable repayment program.
Alternatively there are specialist debt consolidation companies who can provide advice and potential solutions.
Start to act today before the debt problem becomes even worse.
Dealing With Critical Debt Relief Issues
Among millions of people the world over, debt reduction is a critical issue that they not only must deal with, but they must master if they are to become financial free. The spending habits of many a person have resulted in many persons falling deeper and deeper into the seemingly bottom-less pit of debt.
Some of the main causes of debt are:
- Poor budgeting - Not planning and/or executing your budget properly. Good budgeting focuses on actual net income and not projected. It also differentiates expenses between wants and needs. It also takes a lot of discipline to live by your budget.
- Living beyond your means - Your expenses surpass your income. many persons try to live lavishly on a net income that simply cannot afford it.
- Being swayed by trends and trying to match stride with the "Jones ' rather that living by what you can afford.
That being said, if you are caught in the debt trap, chances are you won't be able to get out that easily. It will take some effort on your part as well as possibly some professional assistance to get out of it. Here are some steps you can take towards successful debt reduction .
- Do some honest examination of your self. Honestly ask yourself, "Am I a chromic buyer? Do I have a problems resisting the urge to make purchases? If the answer in yes, or even if you are not sure, then you owe it to yourself to seek assistance from financial counselors. Many of the companies that offer debt reduction solutions also offer financial counseling. Make full use of this.
- Know your debt and who your debtors are. Also know when your debt is due to be liquidated based on current payment schemes.
- Know your spending habits. Be truthful enough to differentiate between wants and needs and disciplined enough to live by it.
- Create a realistic budget that you can live by. As mentioned before, your budget should focus on real and not expected income. Within your budget, cater for changes in the weather that results in changes in the cost of utilities. That way, you can avoid going to creditors in times when there is a greater demand to cooling or heating.
- If your expenses are too close to, or even greater than your income, then you may need to take a look at debt reduction and/or consolidation options that are available to you.
- Avoid credit! Use cash or a debit card. If you have to resort to credit for what can be considered as normal transactions, then you simply cannot afford it. You might be living beyond your needs here.
- If you can - no matter how small the amount - maintain a savings account. If you believe that you have problems spending, then maintain such an account in an institution or location that makes it difficult to access. Further more, if you recognize that you do have problems with your spending, make sure not to take out a debit card on your savings account, and set up a standing order to transfer a fixed amount to that savings account.
Admittedly, there will be times when you cannot save and you may even spend more that we actually make. This should be more of an exception than a norm. Everyday personal debt solutions as those outlined above, make sense, thee reduce personal debt and can then be applied toward debt off indefinately
Good personal debt reduction practices start with an honest and thorough re-evaluation of the money you spend and the money you make. It also required the personal resolve and commitment to do better by bringing the debt cycle to an end.
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