Should I File For Bankruptcy?

Should I File For Chapter 13 Bankruptcy? Bankruptcy should be your last resort. Your should explore all of your options before doing a BK. You could consider debt settlement, debt consolidation, cccs or even a debt management program. Bankruptcy should be avoided especially for a small amount of debt. A bankruptcy will stay with you for up to 10 years as it is reflected on your credit report.

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How Do I Refinance My FHA Loan?

How Do I Refinance My Fha Loan? The easiest way to refi your fha loan is to do an fha streamline refinance. You do not even need to provide income or asset documentation. Your credit is not a factor in an fha streamline refinance. You can even have horrible credit and still qualify. There is no appraisal ordered. An fha streamline refi is basically a no doc loan.

For more information on fha streamline refinance call toll free 1-888-368-6668.

How do credit card companies try to trick you

Look at your statements carefully each month. Credit card companies are famous for changing your billing cycle. If you have been on a 30 day billing cycle, it is not uncommon for them to switch you to a 20 day cycle. This is how I got a late once.

You also need to be aware that when you transfer a balance to one of those snazzy 0% offers, the rate only applies to the balance that was transferred. Any new purchases might be at a different interest rate.

Keep in mind that your credit card company is not your friend. They are predatory and want to keep you in debt.

What is Christian Debt Consolidation?

What is Christian Debt Consolidation? It is a non profit debt consolidation program run by Christians and Christian ideals. They are Christians so you can trust them. If you can't pay your bills they may be able to help.

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Should I pay off a judgment?

Should I pay off a judgment? If you have a judgment showing on your credit report your credit is probably getting hammered. You need to pay it off it you want to get your credit back in shape. I have seen credit scores jump 150 points or more just by taking one judgment off your credit bureau. For information on how to negotiate a judgment go to

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Can I negotiate my medical bills

Can I negotiate my medical bills? If you are in collections on your medical bills you can negotiate them down. You can typically negotiate your medical bills for about 50% of what you owe. You can also hire a debt negotiation company to do this for you if you do not feel like playing the game. It wont cost you anymore money to use a debt settlement firm.

Can I negotiate my medical bills

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My debt negotiation company wants me to send them money every month

My debt negotiation company wants me to send them money every month. You may want to think twice about this. Why would you want to let a third party hold onto your money. The only way that I would let a debt settlement company hand my money is through a trust account. I would put the money in and I would control it. The only thing I would let them do is to see how much money is actually in the account. I would also want to approve all of the settlements. Who knows, the negotiator may have been lazy that day and could have done better. I would like that veto power. Who knows, they could go back in and get a better deal.

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Don't Pay Your Student Loans

Don't pay your student loans. This probably is not a good idea. You will have a tough time trying to avoid paying your student loans. The government always gets their money and wont let you file bankruptcy with it. Defaulted student loans will ruin your credit and may cost you getting a job. Some employers will pull your credit and will not hire you if you have defaulted student loans on your credit report.

If you are going to take out student loans, make sure that you actually intend to repay them. If you are having a problem paying your current student loan, be in communication with the company that you took the loans out with. They will usually want to help work it out with you rather than have them go into default.

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Are there any options to bankruptcy? - bankruptcy questions

Are there any options to bankruptcy? If you are in over your head with debt and can't see the light at the end of the tunnel, you may want to consider filing a bankruptcy. Bankruptcy is a legal way to get a fresh start on life when things aren't going to well. There are consequences to filing a bankruptcy. A BK can stay on your credit report for up to ten years and you will probably pay more in interest for consumer purchases if you can even get credit at all.

What If I don't want to file for bankruptcy? Are there any other options to bankruptcy?

One of the few options to a BK is debt negotiation. I will tell you that you will need to put your time in. Debt negotiation is a process and you will need to be patient. Your creditors may not be willing to back off until they are paid. If you are willing to play the game you can save yourself a lot of money by doing a debt settlement program. Most consumers save anywhere from 40-60 cents on the dollar without any long term negative effects on their credit report.

How do I start a debt negotiation program?

Drowning in Debt?

Drowning in Debt? If you are serious about getting out of debt you need to start living by your needs and not your wants. The only things that your really need are food, clothing, relationships and transportation. You don't need a 60 inch new Sharp Aquos flat screen tv. Your old tube set will still work.

Do a budget and take a look at what all of your expenses are. Look at where you can cut back. Make sure that you have more money coming in than going out. You may need to get a better paying job or take on a second job. Being in debt sucks and I would do whatever it takes to get out of it.

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Should I do credit counseling?

Should I do credit counseling? If you just want to lower your interest rates on your credit cards and you are in good financial condition, the answer is no. Joining a credit counseling program should only be if you are experiencing a financial crisis. You may be over the limit or have rolling late payments and are getting saddled with late fees and over the limit fees. Once you start this cycle, your creditors will raise your interest rates that are commensurate with the universal default rate that is in your credit contract. Once you start a cccs program the creditors will stop the over limit and late fees. You will also be given lower interest rates. The rates will depend on the creditor. They are all different. I like Bank of America in general. If you do join a credit counseling program, they lower their rates to 0%. Other credit card companies can be across the board when it comes to rates.

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Should I do debt negotiation?

Should I do debt negotiation? I would say it depends. If you have the ability to make payments you should keep doing so. After all you do have a contract with your creditor for repayment. Debt Settlement is not about trying to get out of paying your debts. It is for financial crisis only. Debt Negotiation would be a possibility if you are unable to meet your monthly obligations each month and are considering bankruptcy. Debt Settlement is an alternative to bankruptcy so you will need to look at all of your options and decide which is best for you.

How does Debt Negotiation work?

Debt management, Debt Donsolidation, cccs, Consumer Credit Counseling, they are all the same thing

What is the difference between debt management, consumer credit counseling, credit counseling, debt consolidation and cccs? They are actually the same thing. So the next time you hear these terms, just know that they are the same thing.

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Why debt consolidation loans don't work

Why debt consolidation loans don't work. If you already have a lot of debt, getting a new loan may be difficult. Nobody wants to give you a loan if you are already in trouble. Often these debt consolidation loans will have you end up with a higher interest rate than you were already paying. Carrying a lot of debt will usually result in lowering your credit scores. Your credit score is a major factor in what type of interest rate you will get. You would be better off trying to see if you can get your credit card company to lower your rates than to go with a debt consolidation loan. You may also want to consider a debt management program as an option if you can't get anywhere with your credit card companies. Once you join a consumer credit counseling program, the creditors have to lower your interest rates.

The best bet is to just not get into debt. Once you are in debt there just aren't that many good options.

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Paying off old debts is no longer bad for your credit scores

It used to be that if you had an old debt that was unpaid and then paid it, it would drastically drop your credit score. According to Liz Pulliam Weston this glitch has been corrected. If you settle a debt make sure that the creditor will change the status on your credit report from unpaid collection to a paid collection. Leaving it as an unpaid collection can wreak havoc on your credit score. Believe it or not a paid collection is looked at as a positive mark for your credit score. You don't need to try to get a paid as agreed, most creditors wont want to give you that anyway.

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What types of debt collections practices are prohibited?

What types of debt collections practices are prohibited? A debt collector may not harass, abuse or oppress you or any third parties they contact. They may not use threats of harm or violence, obscene language, repeatedly use the phone to annoy or publish a list of consumers who refuse to pay. The only company that can publish a list of debts is a credit bureau like experian, transunion or equifax. A debt collector may not use any false or misleading statements when collecting a debt. a debt collector may not falsely imply that they are lawyers or work for the government. They may not falsely imply that you have committed a crime. They may not falsely represent that they operate or work for a credit bureau. They may not tell you that papers being sent to you are legal forms when they are not and vice versa. If you have any additional interest in what a debt collector can and can't do, you may want to read the Fair Debt Act.

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Can a debt collector talk to other people about my debt?

If you have an attorney, the debt collector can only contact the attorney and not you. If you do not have a lawyer, a bill collector can contact other people but only to find out where you are. The cannot tell you about the debt and their opinion about you and the debt. Most collectors are usually prohibited from contacting such third parties more than once. Usually the collector may not tell anyone other than you and your lawyer that you owe money. If you have any questions about collections, you should read the Fair Debt Collection Practices Act.

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What is the Fair Debt Act?

Credit Builders - Simple tips to raise your credit score

Credit Builders can be free and easy if you know what the rules for credit reports are. Don't cancel your credit cards even if you are not using them. Roughly 15% of your credit score is based on your credit history. If you cancel the cards, you are canceling the credit history with it as well. Pay your credit card balances off or pay them down to at least 30% of the available credit. The amount of your debt load will account for over 30% of your score. Paying off debt can have a big impact on your credit score.

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Instant Credit Builders - pay off your old bills

Instant credit builders are for real. When you pay off or pay down debt, your credit score will be impacted almost immediately. Doing debt negotiation and paying of a collection can raise your score 200 points or more in some cases. This could be the difference between buying a home or continuing to rent. The other thing that has an impact on your credit is what percent of your credit limit you have used on your credit cards. Once you go over 30% of your available credit on your credit cards, your score will be negatively affect. So if you have the money and want to raise your credit scores, just pay them down to 30% of what you owe.

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What is the statute of limitation on credit card debt?

What is the statute of limitation on credit card debt? The statute of limitation limits the amount of time that a creditor is allowed to collect from you. In most states it is a period of 7 years that a creditor has to collect repayment from you. If the collection account is off of your credit report and the statute of limitation has been full filled, you should be home free. I recommend that you seek legal advice in your state to find out what the rules are. I would also recommend speaking with a lawyer regarding debt settlement and collection law.

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What is a defaulted loan?

What is a defaulted loan? A defaulted loan occurs when the schedule of repayments for that loan have not been kept. The schedule of repayment can be weekly or monthly. Most loans are made on a monthly basis. A defaulted loan can have serious consequences on your credit report and credit history.

If you receive a defaulted loan notice, do not ignore it. Do so may have you end up in court or possibly even a wage garnishment. It is in your best interest to contact the creditor that you have a default with and try to work out payment arrangements. You may also want to seek out debt counseling or debt negotiation as an option to get the debt settled.

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Does debt consolidation work?

Does debt consolidation work? Debt consolidation does work but you need to do the work yourself. You still need to make your debt payments on time. If you don't you can potentially be dropped from the debt program. If this were to happen you would be on your own again. Most debt management programs will have you out of debt in 5 years or less. Be sure only to register into a non profit debt consolidation program. There are for profit debt management programs but not all creditors will work with them.

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I want to be debt free

I want to be debt free. If you want to be debt free, you will need some discipline. Stop spending money, have more coming in than going out. Sounds simple right? Do you feel a sense of entitlement that you should have nice things? If you do, you may be in trouble. Bad habits are bad habits, the sooner you can recognize this, the sooner you can gain healthy spending habits. Having a lot of stuff wont make you happy. In fact spending too much money can actually make you miserable. Once you are in debt, the mechanism of worry and fear will probably kick in. Now your life will be about working to pay for all your new stuff. If you are lucky, mommy and daddy can bail you out. If so you will probably end up in the same place again, in debt and broke.

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What is CCC?

What is CCC? CCC stands for consumer credit counseling. Another way you may see it abbreviated is CCCS which simply means Consumer Credit Counseling Services. The majority of consumer credit counseling programs are run by non profit companies. Just because it is a non profit company, doesn't mean that they don't charge you a fee. If you are considering joining a non profit company, you may want to check a few just to see what the difference in fees is between companies. There are some consumer credit counseling firms that are for profit. Just be aware that some creditor do not work with for profit ccc, cccs or debt management companies.

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Can a creditor call me at work?

Can a creditor call me at work? A credit can call you at work until you tell them now to. You have rights under the fair debt collections act. Creditors do have a right to call you if they owe you money but they must follow the rules. If you are getting harassed by a creditor or collection agency, it would be a good idea to become familiar with the fair debt collections practices act of 1977. If a creditor knows that you know what the rules for collection are, they will probably back off. They can be fined by the government for violating the debt collections laws.

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Can my credit card company sue me?

Can my credit card company sue me? If you stop paying your credit card bill, your credit card company can sue you for payment. They will tack on late fees and interest as well. Your best bet is to just keep paying your bills on time and stay out of trouble.

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My credit is screwed

My credit is screwed. There is always something you can do to rebuild your credit.

Tips to rebuild your credit

What is debt negotiation?

What is debt negotiation? Debt negotiation is a way for you to negotiate with your creditors and pay pennies on the dollar to settle your debt. Many people look to debt negotiation as a way to avoid filing a bankruptcy. If you are looking at doing a bk, you may want to give debt negotiation a look as an option to get out of debt. Debt negotiation will not have a negative effect on your credit as it is not reportable to the credit bureaus. Doing a bankruptcy can have a negative effect on your credit report for up to 10 years.

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What is debt consoladation?

What is debt consoladation? Debt consolidation will give you one payment instead of many. If you are getting behind on your bills and are experiencing late payments and over the limit fees, debt consolidation may be for you. It is a way to lower payments and possibly even an option to filing bankruptcy. Once you miss a few payments, your creditors are going to jack up your rates and then you are screwed. Debt consoladation is a way to break the cycle of debt. Once you enroll in a program, your interest rates and payments will be lower. Often the debt consolidation company will work out a plan for you to be out of debt in less than 5 years.

Debt consoladation article

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Where can I get debt advice?

Where can I get debt advice? Advice on debt can come from many places. Often the people that are closest to you can give you some pointers. You may want to talk to someone that you know that is good with money. See what habits they have that have worked for them. You may just want to hop on Google and see what articles you can find on the subject. Debt reduction is a very popular topic on the internet. You can't read too much. There are many authors that have written books on the topic such as Suze Orman, Dave Ramsey, Oprah, Robert Kiyosaki and David Bach. There are many more, I'm sure you will find them in your search.

Where can I get debt advice?

How do I get out of debt?

How do I get out of debt? That is a question millions of Americans are asking themselves. Getting in debt is a process, so you guessed it, getting out of debt is a process. You need to really be straight with yourself about the habits that got you in the situation that you are in. Usually it will be pain that will motivate you to get yourself out of debt and that is ok. What it will take is creating a new habit. The first rule to get out of debt, don't spend more than you make. Second rule to get out of debt is to live by your needs and not your wants. You wont die without not having a new 52 inch tv set. You can just suffer with that old 32 inch flat tube set. You wont die without a cell phone or cable tv either. Ya, getting out of debt will cause you to confront places in your life that you haven't looked in a while. What would you rather have peace of mind or worry. For me the choice is simple, I'll take peace of mind any day. Living in fear of your creditors is not living. Do what you need to do and get started.

How do you eat an elephant? One bite at a time.


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What is bad debt?

What is bad debt? Bad debt to a company that is lending money, is money that is owed and not being collected. People who borrow money for various reason just stop paying. They may have lost a job, divorce or even a death in the family will halt a persons ability to repay a debt. A company when declaring it a bad debt, no longer has to count it as a receivable and they are able to write off the loss on their taxes.

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I'm behind on my bills

What is consumer debt?

What is consumer debt? Consumer debt can take many different forms. It is typically understood to be any debt that has to do with the acquisitions of goods that are consumable. A car is a consumable good because they don't last forever. Typically a consumable good will depreciate in value over time. It is very common now for people to buy consumer goods with their credit cards. Any balance that is carried on a credit card is considered to be consumer debt.

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What is debt management?

What is debt management? Debt management can mean a lot of different things. It could be a debt negotiation program or a debt settlement program. It could also refer to a consumer credit counseling program or even a bankruptcy.

I need help with my debt.

Debt Negotiation articles

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What is the debt clock?

What is the debt clock? The debt clock shows how much debt the U.S. is racking up. Some people suggest our debt is not a serious problem because of the relationship to GDP. The ballooning GDP is more of an indication of the increase in fake money being blown into the system (inflation) rather than having a relationship to monies being produced. The astounding $9 trillion gross national debt is owed by the General Fund. This is the part funded by our income taxes every year. Half of this money goes to pay interest on the old debt and the rest goes to the military.

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Will Bankruptcy stop a foreclosure?

Will Bankruptcy stop a foreclosure? Hopefully during the foreclosure process was in motion you tried to get the foreclosure to stop. You could have tried a loan forbearance, deed in lieu of foreclosure or a short sale. If you have tried these with no luck, you may want to consider a bankruptcy. You can either choose a Chapter 7 bankruptcy which is a liquidation bk or a Chapter 13 or wager earner bankruptcy. Once you file, the court should issue an order of relief which should include an automatic stay. With the automatic stay, your creditors must cease any contact with you and collection actions. This includes your mortgage company. This is not a free ride, you will have to act quick to work out something with the bank. Your lender can still ask for a motion to lift the stay so they can proceed with the foreclosure.

Can a bankruptcy stop a foreclosure?


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What is CCCS?

What is CCCS? CCCS stands for consumer credit counseling services. Typically these debt consolidation programs are run by a non profit company. Debt consoladation can get you out of debt in about 5 years vs. 30 years if you keep making the minimum payments on your credit cards. If you are behind or over the limit, you can get the late fees and over the limit fees stopped once you have enrolled into the program.

Is consumer credit counseling right for me?

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debt reduction

Feeling like you are starting to get piled on by your mounting bills? You may want to look at where the money is going. It may not be fun to get it debt but doing nothing about it can make a problem even worse. You may not want to hear this but it may be time to start living by your needs and not your wants. That's right, do you really need the premium channels on your cable tv? I don't think so, I don't know anyone that died without having cable tv. Instead of your Starbucks runs, you can make coffee at home. Don't go to the movies, check out movies from the library, they are free. Do you really need a cellphone? There was a time when people actually didn't have a phone with them all the time. It wont kill you. What will kill you is being in debt. Do yourself a favor and get started on something now. Anything would be good.


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New bankruptcy law

Filing bk is an important decision to make. The impact of this decision will have great ramifications on the rest of your life. George Bush definitely stuck it to the people when he passed the new bankruptcy law in 2005. The new law was supposedly supposed to cut down on bk fraud and reduce abuse. If was a huge gift to the credit card companies. It made it a lot tougher for people to file for bankruptcy. There is no right way to decide whether you should file bankruptcy or not.

Alternative to Bankruptcy

What is bk?

What is bk? Bk simply means bankruptcy and if you are hungry Burger King. For personal finances you can file a chapter 13 or a chapter 7 bankruptcy. Filing bankruptcy is only for extreme financial circumstances when you debts have put you in a bad financial position. Consult with an attorney when you can no longer make your financial obligations.

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Can I get a credit card after a bankruptcy

Can I get a credit card after a bankruptcy? You can, oddly enough creditors will be banging down the door to give you another credit card, so don't worry about it. You can always start off with a secured credit card or secured debt card. A secured credit card works just like a credit card except that you have to add money to it first before you can use it. It's basically just like using cash.

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I can't pay my bills

I can't pay my bills, what do I do? Many people in this country are asking the same questions right now. There are options but it will take some effort on your part. The easiest solutions is to just see how you can make more money to get yourself on track financially. If this is not an option that is available to you, you have a few options. You can look at doing one the the non profit debt consolidation programs. They will help lower your payments and interest rates. If you are getting over the limit fees and late fees, those will stop as well. The other option is you really can't pay is bankruptcy or debt negotiation.

Bankruptcy Alternatives

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What is a Section 341 meeting?

The section 341 meeting which is also call a meeting of the creditors, is a meeting that a debtor must attend afer a bankruptcy is filed. The meeting is orchestrated by the case trustee or the U.S. trustee. The debtor must go to this meeting and testify about his or her financial condition. The debtor will be asked about this information that has been placed on the bk paperwork. A creditor is allowed to attend the meeting and ask questions about the financial condition of the debtor as well. If the debtor fails to show up to the meeting, the bankruptcy case can be dismissed. Most states allow you to attend the section 341 meeting without an attorney. Massachusettes requires that you have an attorney. You are going to have to pay for this. There is no way around it.

Like all legal matters, consult with an attorney first before making any financial or legal decisions.

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Tips to Negotiate unsecured debt - bankruptcy questions

With the recent changes to the BK laws, it has gotten a lot harder to file for a BK. To file for bankruptcy used to be a piece of cake it is no longer a foregone conclusion. You have to attend classes and attorneys are more stringent on what they will allow to be included and repayment plans are much higher in a lot of cases. What other options are there besides bankruptcy? No too many, but there is the debt negotiation option. Anyone can negotiation their own debt. It just takes time and thick skin. The creditors will be coming after you hard to collect. They collection agencies will use every avenue they can exploit to get you to pay up.

If you don't want to handle it yourself, there are professional debt negotiation companies that can assist you in the process. (10 tips for debt negotiation)

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How do I get Creditors to stop calling me?

Are you being harassed by your creditors? Can you get a creditor to stop calling you? The only way to get a creditor to stop calling you directly is to hire an attorney. An attorney will send out a cease and desist letter and inform the creditor not to contact you and to direct all communication to the law office. If you don't have an attorney, you do have rights. I would recommend reading the Fair Debt Collections Act. If you owe a creditor money, they do not have free reign to call you whenever and wherever they want. They can only call you certain times of the day. They are not allowed to call you at work it you tell them not to.

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Cease and desist from my debt negotiation company

If you have enrolled or are thinking of enrolling in a debt negotiation program I have one point of information for you to consider. If the company you are speaking to promises that they will be able to get the credit calls to stop with letters or a cease and desist, you may be in for a shock. Once a creditor knows that you are in a debt settlement program they are more likely to sue you. A debt negotiation company that tells you they can get the calls to stop, probably doesn't know what they are doing. This is just a sales tactic to get your money. A reputable debt settlement company will tell you to stop taking the calls or change your number frequently. I hope this helps. There are good debt management companies out there. Unfortunately there are a lot of bad ones as well. Do your homework, ask for references, check with the better business bureau but don't do anything unless all of your questions have been answered and you are satisfied.

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Low Credit Scores Can Cost You More Money For Your Insurance Policies

A negative credit report can cost you serious money in more ways than you would probably think. It seems like a seriously unfair practice, but it is more or less legal for insurance companies to factor in your credit score when determining your insurance premiums. Auto and homeowners insurance companies are now taking a closer look at their customers' credit ratings, the idea being that consumers with poor credit are actually more likely to file insurance claims. (Pay off old bills and improve your credit scores)

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Millfield Debt Counselling

Millfield Debt Counselling is a group that acts as the parent company for over 1500 IFAs or Independent Financial Advisers throughout the United Kingdom. They are professionals who are dedicated to support services to businesses and individuals. Their niche is in advanced IT, training, product expertise and regulatory supervision. They claim to offer the best service possible on their website.

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Don't feel bad for the credit card companies

I don't feel bad for the credit card companies they are experiencing defaults on their credit card customers. They deserve to take a hit for unsound lending practices. MBNA, citibank, Discover, Providian, Master Card and Visa, I don't feel bad for you guys. You business practices are dishonest and you are harming peoples lives. When it is easy to get credit cards, what do you think will happen. People that don't qualify for credit under normal circumstances are getting cards and defaulting. Getting a credit card should have similar qualifications as a full documentation mortgage loan should. You need to be able to demonstrate your ability to repay. If you can't qualify then you should not get a credit card. You should get a debit card and use it like cash. Credit card companies are predators and want to get you in debt and keep you in debt. They are looking for new slaves.

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What is USOBA?

What is USOBA? USOBA stands for The United States Organizations for Bankruptcy Alternatives. USOBA was founded by members in the industry seeking representation for debt settlement and debt negotiation outside of credit counseling and bankruptcy. The goal of USOBA is to create and advocate an agenda only for the debt settlement and debt negotiation industry.

We are seeing record levels of consumers filing bankruptcy each year, the credit counseling and debt consolidation industry under fire from the IRS, FTC, U.S. Senate and House, consumer advocates and the state legislatures, USOBA members are the last line of help before going bankrupt.

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What is TASC?

What is TASC? TASC stands for The Association of Settlement Companies.

TASC’s™ goal is to promote good practice in the debt negotiation industry, protect the interests of consumers and debtors, and lobby on behalf of debt negotiation companies on the federal and state level.

Debt negotiation companies act on behalf of consumers and debtors to help them clear their debts. They do this by entering into direct debt negotiations with creditors in order to facilitate the repayment of delinquent debts. In return for their services, debt negotiation companies are generally paid a fee by the consumer.

Membership of TASC™ is reliant upon debt settlement companies being able to show that they comply with the standards set out by TASC™ in the Bylaws.

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The Bylaws have been developed in consultation with a number of debt negotiation companies, discussions with different states’ legislators, and major lending institutions. The aim of the Bylaws, and that of TASC™, is to encourage debt negotiation companies to provide services of the highest standards to ensure the public and the credit industry’s confidence.

Why do creditors try to scare you?

Why do creditors and collection agencies try to scare you? It's simple really, they just want to collect money from you. The more you are afraid of what they are telling you they are going to do to you, the better chance they have of collecting from you. They know that most people have a fear of the unknown. Getting sued for most people is the biggest worry. If you are already not paying your bills, threatening court and wage garnishment can sound pretty horrifying. They want you to do what ever you have to do to get out of debt. You do have rights as a debtor. It would be very smart to read the fair debt collections act to see what your rights are. I think you will find out that the bark is worse than the bite sometimes. I think a little knowledge will give you some peace of mind as well. I'm not saying that you will be able to ignore it, you will have to deal with it at some point.

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More on the Fair Debt Collection Act

What is Re Aging a credit account?

Re Aging a credit account is a way to improve your credit report and your credit scores. This approach is helpful only if you have had a short term problem, like a layoff and now you are back on your financial feet again. What is re-aging? When a creditor re ages your account they take off from your credit account negative information surrounding your late payments. Your account will go from delinquent to good standing. Your credit score should go right up again. Sometime just changing one item can have your credit score go up over 100 points.

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What is a Chapter 13?

A chapter 13 bankruptcy is a type of bankruptcy filing in the United States that is commonly referred to as debt reorganization. If an individual can show ability to pay back some or all of their debts, this option may be the way to go. This can help you keep your home and car in a time of financial crisis.

Filing a chapter 13 bk will usually stop any legal actions against you from your creditors. Once you have Chapter 13 protection, they can no longer call you or sue you. It is up to the lawyer to take the calls and correspondence once the chapter 13 option has been chosen.

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What is credit repair?

Credit repair is the process of improving your credit score. Bad credit is the major factor for people not being able to finance their consumer or home purchases. It can also be a process of disputing or fixing discrepancies shown on your credit report in the credit bureaus. A credit must be able to show proof of the existence of a debt. If they can't, they must take it off of your credit report.

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What is a charge off?

A charge off is an accounting method that allows a company to remove a bad debt from the company balance sheet. This can be utilized when a bad debt is clearly no going to be paid by a debtor. Charge offs provide several advantages for a company. It eliminates the appearance of the line item on the income statement for the corporation. This would mean that the bad debt does not appear as net income on the financial records of the company and would not be subject to taxes. The people that handle the accounting, no longer have to spend time dealing with it.

As a debtor, a charge off would be a negative mark on your credit report and would impact your credit score greatly. It is in your best interest to try to negotiate or pay the bad debt off. You can contact a lawyer or a debt negotiator to try and help you if you are not comfortable doing it yourself.

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What is the Universal Default Rate

The Universal Default Rate in relation to the financial services industry allows a lender to change the term of a loan from the normal terms to a new default term. Typically a default rate will be activated when loan payments are missed or a loan goes into default. The term is most associated with credit cards in that when a consumer fails to make a payment on a credit card, interest rates can soar to over 30% in some cases. Once you are in a default rate on a credit card, there is not much you can do to get out of the high rates. You may want to consider doing a debt consolidation program. Once you enter a debt consolidation program, your interest rates will be reduced, over limit fees stopped as will as late fees.

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What is the Fair Debt Act?

The fair debt collection practices act of 1977 is a federal law that outlines what creditors and debt collectors can get on you. It is specific on how debt collectors and bill collectors can communicat with you at home and at work. These collections agencies rules are designed to protect the debtor from abusive debt practices and harassment, trick and illegal debt collection tactics.

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What is a judgment

A judgment is simply a legal document stating the reason for a judges or judicial decision. They are written by a singe judge. In a court of law they require the repayment of a debt, the court has the authority to place a lien against the debtor's real property as collateral for the judgments creditor.

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What is CCCS

CCCS stands for consumer credit counseling services or debt management. You will also sometimes see it written as CCC. Essentially it is the same thing. A debt management company is a third party that will help you restructure your repayment of debt in a more manageable manor. Typically a debt management company will help you lower interest rates, stop late and over the limit fees. Most debt management companies design plans to have you out of debt in 5 years or less.

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What is debt settlement?

Debt settlement is essentially the same thing as debt negotiation. Debt settlement is a process by which you negotiate your charge offs and collection accounts to get out of debt or avoid filing a bankruptcy. Creditors do want to work with you to resolve your debt issues. In fact they will often times take less than what you actually owe them just to close the account out quickly. Debt settlement can be performed by a third party debt negotiator or an attorney. Typically you can save anywhere between 40 and 60 percent of what your original balance was.

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What is a Garnishment?

When your wages are garnished, a percentage of what you make is automatically routed towards paying off a debt. You wages can be garnished if you fail to repay a debt, taxes, court settlement, child support or any other debt that a judgment has been granted against you by a court of law. Only a few states restrict wage garnishment, they are Texas, South Carolina, North Carolina and Pennsylvania. This would be for state and federal debts only. Usually the limit of the garnishment is 25% of what a persons paycheck would be. It is not legal to hide assets to avoid the garnishment. You may be prosecuted for fraud if you try.

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What is a Charge Off?

A charge off is a debt that a company has written off as noncollectable. Once they have written the debt off they can take off the loss on their tax returns. That is not where it ends for the person who took out the loan however. For the borrower they will have a charge off or a collection account on their credit report. This is not a good thing for your credit score. One charge off can drop your credit score over 100 points. The only want to take care of it is to pay it off. You will need to speak with the company that is handling the collection of the old debt. That's right, the old company may have written it off, but that doesn't mean that you are out of the woods on paying it back. A collection agency may buy the old debt for pennies on the dollar and try to collect on it. They have a legal claim to collect from you and will not remove the bad mark on your credit until you pay up.

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What is a collection agency?

Collection agencies are companies that collect on past due bills. They collecting is either done by the original company that made the loan with you or they have an outside company do the collecting. Typically a third party collection company will often work on commission. They will receive a percentage of the amount of debt that they collect. Usually a debt collector is paid a small salary with a large commission incentive. This is why they may be very aggressive with you. They want to get paid. Typically you are going to get phone calls and letters which most likely will not be of a friendly tone. Their job is to scare you. The more they can scare you, the more money they can collect from you.

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What does BK mean?

BK is short for bankruptcy. It is a widely used acronym in the United States culture for the term bankruptcy. Not much more to say about this one.

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What is Debt Negotiation?

Debt Negotiation is a process of paying off your collection accounts by using a third party. You can either hire a debt negotiation company or an attorney to handle paying off your debts. It is considered to be an effective alternative to bankruptcy. Debt negotiation can save you 40-60 cents on the dollar while paying off your collection accounts. Once the debts are paid off your credit will begin to improve. The unpaid collection accounts will now report as paid collections. A paid collection will report as a positive mark with the credit bureaus.

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What is a debt management company?

A debt management company is a third party company that assists consumers in their repayment of debt. Many companies that do this kind of service is called credit counseling or consumer credit counseling. Consumer credit counseling is referred to as CCCS as well. They will also help you work out a budget so you can save more and allocate more money to getting out of debt. Often times they will lower interest rates and get over the limit and late fees to stop accumulating. It used to be that signing up with a debt management company was like doing a chapter 13. Those days are over, you can actually buy a home while you are still in the program.

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What is a secured debt?

Secured debt must have collateral behind it. Homes and cars are secured debt. If you quit paying on them, someone will come to your door and take the stuff back. The best test if a debt is secured or unsecured is if you stop paying on it. If you stop paying your bills and your get to keep your stuff, it would be unsecured debt.

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What is an unsecured debt?

If you are in conversation with a debt negotiation company, they will tell you that they only work with unsecured debt. What is unsecured debt? Unsecured debt is money that is loaned and is not secured by any property. Cars and real estate are typically secured debts. They have collateral behind the loan as security. If you stop making the payments on these loans they come and take back the asset or collateral. Credit cards are unsecured. If you quit making your payments, nobody is going to come and take your stuff.

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Educate yourself and fight back with your creditors

If you are feeling anxious in dealing with your creditors, what you may be lacking is education. The more you know about the process the more peace of mind you will have. Creditors work on you by trying to put fear in your brain. The more scared you are of them, the better chance you they have of collecting money from you. If you are committed to getting out of debt, you need to educate yourself and take control back in you debt negotiation process.

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Can I get sued while in a debt negotiation program

If you thinking about enrolling in a debt negotiation program and the company is telling you that only a small percentage of the clients get sued, they are lying. Over half of the clients get sued. A good debt negotiation company will know how to negotiate with the creditors so you wont end up in court. Debt Negotiation is a great option to settle your collection accounts. You just need to be informed about what will be in store for you in the future. It can be a bumpy ride, but if you are committed to being debt free, debt settlement is a great option. Anything you can do to avoid a BK is your best option. Just know that debt negotiation will take some effort on your part. Don't expect the debt negotiation company to do everything for you.

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How to check out a debt negotiation company

Are you looking at hiring a debt negotiation firm to handle your unsecured debt. You may want to do a back ground check before you sign up with them. The first thing to do is to check the BBB and see if they have a clean record. If there Better Business Bureau record is shaky pass and look for another. There are reputable firms out there. The second thing you want to do is to see if they have you set up your own trust account or do they want to hold your money. If they want to hold your money I would pass. The only way that I would do a debt negotiation program is with them setting up my own trust account that I control. Some of these companies are just too flaky to hand over my money to. If a company does not have at least five years of experience I would keep shopping. Debt settlement is a complicated business. New companies are popping up all the time and want to cash in on the credit crisis. Some of them will just take your money and run. If they say that they can do it in four to five years, they may just want to get you up front retainer fee. Most creditors wont wait past three years to make a settlement. Going longer could have you wind up in court.

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Are you feeling harrassed by collection agencies?

You may be feeling harassed by collection agencies if you have fallen behind on your bills. If you are serious about paying your creditors back, you may have nothing to fear. Sometimes the bark is worse than the bite when it comes to collection companies. If you understand the tactics of a collection agency, you will regain the upper hand when going up against them. A collection agency uses fear as a tool. They know that fear motivates people and they can use that fear to get what they want. What they want is money out of you. If you understand that they will follow through on their threats less than 1% of the time you can gain your peace of mind back. They don't want to go to court it's expensive and even if they win it can still be hard to collect on it. If they garnish your wages and you get a new job, they have to start the process all over and it gets expense. If you understand this you can do your own negotiating with them and save yourself some money in the process. They may say that they want to do all of these bad things to you, but the truth is they would really prefer not to spend the money. If you don't want to deal with the negotiation, you can hire a debt negotiation firm to represent you and they will handle all of this for you. Typically a debt negotiator can save you anywhere from 40-60 cents on the dollar.

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Should I stop paying my credit cards?

If you are considering debt negotiation and your are still current on your credit cards, technically you can't do it. You are still contractually obligated to pay your bills back. Be wary of the debt negotiation firm that just outright tells you to stop paying your bills and join the program. A debt settlement company that is operating within the limits of the law wont tell you to do that. The only person that can make the determination to stop paying your bills is you. Debt negotiation is only for hardship and not because you spent to much and don't feel like paying it back. What it is for is an alternative to a bankruptcy.

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8 Major Misconceptions About Filing a Personal Bankruptcy

Bankruptcy is a big step and can be quite helpful in the process of restoring your credit. Not filing a bankruptcy because of untruths about it can be a mistake. Read about some of the misconceptions of bankruptcy in this article. There is also great information about alternatives to bankruptcy as well.

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Tips for Debt Relief

There are many ways to get out of debt. In the heat of the battle options are not always obvious. This article lists some effective ways to manage your current credit accounts or obtain new ones. Getting out of debt is tough, but it does not have to be painful. Debt Negotiation, debt consolidation and debt settlement are great options. Knowing the right debt option to pick can be hard. These tips will definitely make your debt free journey much easier.

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Debt consolidation loan – Things to think about when deciding

There are many ways to get out of debt. One option that is only available to a homeowner is a home equity loan or line of credit. This article is written from the perspective of a homeowner. For a renter, an equivalent debt consolidation loan would be a personal loan from a friend or family member or even a consumer finance company. Remember that a debt consolidation loan is still a debt. Like any debt it must be chosen wisely.

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5 Old-Fashioned Ways of Digging Yourself Out of Debt

In some respects, digging out of debt is not so glamorous. We have grown to love our modern conveniences, but these things have taken their toll on our pockets. For most of us, solving our debt problems requires no secrets, perhaps only some common sense and a reminder of what some of these conveniences cost us. Life does have a way of training us. Hopefully we can learn from our past mistakes that we have made with our money.

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Credit Cards Are Convenient - But Using Them Can Hurt Your Credit Scores

Buying gifts for friends and family during the holidays can either be fun or stressful. I tend to fall on the side of stressful and overspend. I also tend to put a little more on my credit cards than I should, so this year my wife and I are waiting until after the holidays to get each other presents. This gives us the chance to see what we get from other folks, and allows us to catch up on our bills. This might be an option for you. It might not, but here is another options to use to get out of ...


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How Does Debt Consolidation Work

To consolidate your debt or not? Debt negotiation or debt settlement reduces the amount you will have to payback because your creditors agree to take lower your balances. In debt consolidation, your creditors agree to freeze and possibly lower your interest rates and any fees and penalties you might be accruing as a result of being late, over limit, etc.

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Debt Consolidation As An Alternative To Bankruptcy

There it is again, the phone. You know that it is a bill collector, you just know it. It is dinner and they always call during dinner. You are at your wits end. You think that your next step is filing for Bankruptcy. Before you do, consider debt consolidation.

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How To Get Out of Debt - Suze Orman Versus Dave Ramsey

Is there a "right" way to get out of debt? Who knows, but there are many who publish ways to get out of debt. Two of the most famous in our recent times are Suze Orman and the other is Dave Ramsey. While their methods might not be the best, they do work. My conclusion is whatever works for you is the best method to use to get out of debt.

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An Overview of Student Loan Debt Consolidation

Student Loan Debt Consolidation is one method for reducing your monthly debt which could help you qualify for a mortgage, or a refinance. Debt consolidation will also reduce the number of monthly payments you have to remember to pay each month.

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Student Loan Consolidation Rates - Helpful Tips

There are many things to consider when qualifying for a mortgage. One consideration for qualifying is your debt ratio. If you have student loans, consolidating them could help you qualify for a mortgage. Here are some valuable tips on consolidating your student loans.

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Consumer Credit Counseling for Good Credit, Debt Settlement for Bad Credit

With many alternatives for getting out of debt, you need to do your homework before you choose a method. Typically, consumer credit counseling or CCCS is a great alternative for someone with great credit. But, debt negotiation is probably better suited for paying off bad credit accounts.

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Help for a Foreclosure - 8 tips for how to avoid losing your home

Even though it may seem like you have no options when you get behind on your mortgage payment there are many options available to you. Your lender does not want your home. They want you to keep it. My advice first and foremost is to call them and work out a repayment plan, or at the very least let them know you are having problems and what you are doing to correct them.

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Bankruptcy or Debt Negotiation - Both Explained - What To Do To Get Out Of Debt

Filing Bankruptcy got a little harder to do in 2005 when the US Bankruptcy laws changed. The laws changed to ensure that people who file legitimately have no way out. This article explains some of the highlights to filing a Chapter 7 bankruptcy in today's environment. Instead of Bankruptcy, Debt Negotiation might be an alternative.

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I Am Getting A Divorce - What Will Happen To My Assets and Debt?

Save yourself from filing bankruptcy when getting a divorce by using an attorney who understands how to split up your assets and debt. This article serves some basic guidelines about how your marital, or community property might be divided in the event of a divorce.


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Will my credit score go up after Debt Negotiation program

If you are in a debt negotiation program and are wondering if your credit score will go up while you are in the program, the answer is that it will. Each time that you settle an unpaid collection account your score will go up. It will be at its highest point once all of the unpaid collections have been settled and paid. Even though it will report as an unpaid collection it is still looked at by the credit reporting agency as a positive mark. Your credit score will always go up when you go from an unpaid collection to a paid collection.

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Beware of third party debt negotiation companies

If you are considering signing up for a debt negotiation company, you may want to consider using lawyer and not an unlicensed entity. An attorney is held to a higher standard. Their are many stories of debt negotiation companies disappearing in the middle of the night. If you don't believe me just Google Jubilee Financial. This kind of thing goes on all the time. An attorney has to answer to the state bar if there are any complaints. They don't want to loose their license to practice law.

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Had a Bankruptcy - 4 Critical Steps To Good Credit Scores

Bankruptcy is not the end of your borrowing of money. It does provide a clean slate. However, to get back on track there are some critical steps to take following your bankruptcy which you need to take right away after your process is complete.

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8 Major Misconceptions About Filing a Personal Bankruptcy

Bankruptcy is a big step and can be quite helpful in the process of restoring your credit. Not filing a bankruptcy because of untruths about it can be a mistake. Read about some of the misconceptions of bankruptcy in this article.

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I don't want to file bankruptcy, what else can I do? Debt Negotiation

It has gotten harder to file bankruptcy. Given the changes to the bankruptcy laws in 2005, it is more difficult to file and discharge a bankruptcy. Debt negotiation is a possible alternative to explore instead of bankruptcy.

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Consumer Credit Counseling - Is it right for me?

Consumer Credit Counseling or CCCS can be a great way to get out of debt. Beware however as there are some things you need to know before you start a counseling program. Don't get surprised once you are in the program because it will be too late to back out.


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Insider Tips - Why use a debt negotiation company?

Given the recent changes in 2005 in the bankruptcy laws, it has gotten tougher for us as consumers to file for bankruptcy. What else can we do, if we get in over our heads with debt and its getting old treading water every month? One alternative is debt negotiation.


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Tips on Negotiating your Debt with Collection Agencies

Settling your debt with a collection agency can be a rough experience. With some knowledge of how the system works you could save yourself a lot money and heartache.

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The Fair Debt Collection Practices Act, What Are My Rights If I Owe Money?

Let's face it, most consumers owe money and at some point, we miss a payment, get ourselves into a jam because we disagree with something we were billed for, or something catastrophic happens and our bills suffer. Even though you either legitimately or illegitimately owe money, you have rights. Knowing these rights could save you a lot of hassle, time and money.

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10 Tips for Negotiating with Collection Agencies, Bill Collectors and Debt Collectors

The phone rings and there is this feeling, it is a debt collection call. It is upsetting to get these calls. But how do you handle them? It is important to handle these calls properly or else you will continue to get harassed until you give in to what they want. They want your hard earned money.

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Tips for Consumer Credit Counseling - Should I Do It? Finding the Right Company

The benefits of a Consumer Credit Counseling program can be great. However, before you start a program take a look at all your options for getting out of debt, and do you homework. There are many companies out there to stay away from. This article covers things to look for in choosing a company.

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I Am In Debt. How Do I Get Out Of It? Start With How You Got There!

For most of us, getting into debt did not just happen over night. While there are a few exceptions about how someone gets into debt (like a sudden illness or death of a spouse), I suggest that the root of our debt problems in the United States is due to us listening to our wants instead of our needs. The good news, to get out of debt we have to listen to ourselves saying discipline and strategy will get you out of debt.

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Re-Aging A Credit Account - What Is It? How Do I Do It?

There are many tips and techniques for improving your credit and your scores. This technique called "Re-Aging" demonstrates to your creditor your intention to pay them as you agreed when you borrowed (charged) their money.

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Debt Negotiation aka Debt Settlement, What It Is Not, Is It Right For Me?

There is much written about debt settlement or debt consolidation, both pro and con. Critics of debt negotiation have a valid point with respect to bad debt settlement companies. This article spells out what debt consolidation is not.

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Debt Settlement, Bankruptcy, Debt Consolidation - Which Solution is Right For You?

There are many ways to get out of debt including: debt negotiation, bankruptcy, and debt consolidation. Each solution has its merit. If you are already behind on your bills you may consider debt settlement. (click for Full Story)

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How Do Debt Negotiation or Debt Settlement Programs Work?

Debt Settlement Companies stand between you and the collectors who keep calling. Debt settlement is all about settling your debt for less than you owe. If you are tired of getting calls at all hours of the day then this information is for you. (click for Full Story)

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How do debt negotiation companies make money?

The dumb answer is debt negotiation companies make money by settling debts. A good firm will make a percentage of what they save you rather than a flat fee. The savings rate percentage can be anywhere from 15-25 percent of what they save you. I like that they have an incentive like this. The more they save you, the more money they make. This way you know that they will do their best to negotiate a good deal for you. Most firms charge you an up front fee which can be paid over a period of a few months. Most companies realize that you are having a hardship, this is the business that they are in. Typically you can be in a program up to 36 months that will have you totally out of debt.

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Can I settle my debt myself or do I need a lawyer?

If you have collections accounts you can settle the debt yourself. You better have a strong stomach, dealing with creditors can be very frustrating if not scary. If you have a fair understanding of the Fair Debt Collections Practices Act you will be in better shape than most. Just remember that it is a process that you need to stick to. The reality is that if you deal with an attorney that does debt negotiation you will probably end up in the same position. They usually deal in bulk and can get deals from the creditors for that. There is no right answer, you do want to check out your options.

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How do I get creditors to stop harassing me?

The simplest answer to get creditors to stop calling you is to hire an attorney that specializes in debt negotiation. Once your hire the lawyer all calls by the creditors must be directed to the attorney and not to you. Typically the attorney will send out a letter to the credit that the law firm is taking over the case. Legally they are notified and must comply with the letter. If they do not comply they may be violating the Fair Debt Collections Practices Act and could be subject to a fine.

If you do not want to settle your debts yourself you may want to hire an attorney to do your debt settlement.

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How much will my credit score go up if I pay my collection accounts off?

If you pay your collection accounts off your credit score can go up as much as 200 points. It can take a few months to report properly in your credit report. Typically once all the collection accounts are paid off your credit score should go back to normal in about six months. You can negotiate paying off your collections as well. You don't have to pay back dollar for dollar what you owe. You might want to start our negotiating your debt at 25 cents on the dollar and see where you end up. You may have to play with them for awhile however. They usually don't just roll over on the first offer. You may have to back an forth a few times before you will be able to reach a settlement.

If you have any questions about debt negotiation please let me know.

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Why would a creditor be willing to settle a debt with me?

I am often asked why a creditor would settle old debt for pennies on the dollar. The answer is simple really, millions of dollars of debt every year go uncollected and probably would never be collected. Something is better than nothing. Often the debt has already been written off and is owned now by a collection agency. They probably bought the debt for pennies, so if they get 25 cents they may be happy. That would be a big profit to them. If they make your an offer, you don't have to take it. You can negotiate with them. See if they would take less. I have been in the debt negotiation business for nearly 9 years. It only seems like they have the power. If you know how to play the game with them you can save yourself thousands. They may threaten you and say that your credit will be ruined. This is not the case. Once you settle the debt with them it will not be reported negatively anymore. Be sure to get documentation form them that the debt has been satisfied. If you notice that your credit bureau has not been updated you will have your documentation to fall back on. If you send it in to the credit repositories they have to change the notation from unpaid to a paid collection. A paid collection mark on your credit is ok. It is actually a positive mark in your credit.


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Buy Now Pay and Pay Later

Credit Card companies are not your friend. They are in business to make money off of you. If you can't pay cash don't use them. Emergencies can be the exception. Buying expensive cars that you have to devote a huge amount of your time to pay back doesn't make much sense. Do you really need it or do you want it? I would rather be debt free and not have to go to bed every night and worry about how I can pay for all of the things that I owe. As a former loan officer I don't know how many people that I met with that could not buy a home because they were driving big expensive cars. It just is not worth it to drive a fancy BMW and not own a home.

It's sad but I remember talking to one couple that made less than $4000 a month and had a truck payment of nearly $1000. This didn't take into account gas and insurance. They couldn't figure out why they were broke every month. I couldn't figure out why they thought they could buy a home when they were barely making it as it was. I drive a 10 year old car with 95000 miles on it. It's paid for and runs. I'm happy. New cars are fun when you drive them off the lot, the first payment letter will cure you of that.

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Can creditors harrass me?

If you owe a creditor money, they can call you. They cannot harass you or be inappropriate with you. Read this article on the Fair Debt Collections Practices Act to learn more about your rights. Once you know the rules you can turn the tables.

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