Month: November 2018

Don’t Be Fooled By Common Debt Help Myths

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Debt is easy to get into, but very difficult to get out of. This is because it is easy to accumulate large amounts of debt without even really being conscious of it. But once consumers are confronted by the severity of their financial situation, they often make rash decisions and choose the wrong debt resolution. Getting out of debt requires research, and a well thought out plan. There are many debt help myths that deceive consumers, so here are the critical facts about debt help.

Myth: “The only way to get out of debt is the traditional way–slowly paying it off”. Many people think that the best way to eliminate debt is to just follow a strict budget and struggle to make the payments over the course of years. But if you are struggling or can no longer make the payments on your bills now, there is no way that you can get out of debt the ‘traditional’ way. Even for people who can make the monthly payments, it can take ten to twenty years to become debt free using this method, making it a good idea to research debt resolutions that offer faster debt relief.

Myth: “Because you don’t have to pay the debt back, bankruptcy is the ultimate solution to debt.” Bankruptcy may eliminate debt quicker than just paying off the loan over the course of many years, but it surely isn’t the right debt help option for everyone. Consumers often declare bankruptcy without doing the research, and they aren’t aware of the consequences it can have. Chapter 7 and Chapter 13 are the two types of bankruptcy. Chapter seven resolves unsecured debts; chapter thirteen includes a short term repayment plan. It is important to know that filing for bankruptcy is stressful and can be expensive. Bankruptcy can also damage your credit score and stay as a negative item on your report for up to ten years.

Myth: “Debt Settlement companies are really just illegal scams.” Some people think that debt settlement is illegal, but the truth is that debt settlement is both a legal and effective way to become debt free. Unfortunately, some debt settlement companies are illegitimate and scam consumers, which has led to the belief that debt settlement in general is illegal.

Myth: “Debt consolidation loans offer significant debt relief”. Debt consolidation, although a popular debt help option, isn’t the best one for people who need real debt relief. This is because debt consolidation loans combine unsecured debts and make paying off your debt easier, but they don’t necessarily reduce or help eliminate the debt.

Myth: “Debt Settlement ruins your credit.” Not paying your bills and accumulating debt is what ruins your credit. Some debt help options may cause further damage to your credit score. But because debt settlement is the fastest way to eliminate debt, it is the least likely to do damage to your credit history. Debt settlement can allow you to become debt free quickly, and start rebuilding your credit.

Government Help With Credit Card Debt

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As unbelievable as that sentence sounds, it is very real! The Governments stimulus package has set up a mechanism for helping individuals who have over 10K in credit card debt! Although the card companies are not eager to let their account holders know this fact, there are funds in the stimulus package to help debtors pay their debts if they meet that amount, or to erase the account from the books totally.

In order to make this debt relief to an individual consumer, he/she must begin the process himself/herself. While this relief may result in a pie-in-the-sky effect to debtors, the pie won’t fall out upon the debtors’ heads spontaneously; they have to set the wheels in motion themselves!

Once a debtor initiates this process himself/herself, the relief process begins. Depending on the individual situation, part or all of the debt may be eased or forgiven altogether. Miraculous!

That is the intended effect in the government’s eyes. The easing of consumers’ debt burdens in order to help them continue to participate in our great economy as they always had before the debt and economy crisis drew us all up short!

The probable outcome of this extraordinary measure will be that the average citizen’s debt burden and the cost of financing that debt will drop, thus enabling him/her to channel additional funds into the working capital of our ongoing economy.

So, how does an eager-but-beleaguered citizen take off on this road to semi-recovery? In this era of abundant government red tape, there is a single form which entitles citizens to take part in the USA Consumer Debt Plan which is the stimulus program geared toward helping consumers crawl out from beneath their crushing debt load with their dignity and families intact.

Depending on the particular situation, it is possible to have at least 50% of your credit debt taken care of by this stimulus money, due to the bailout the creditors themselves received from the current administration to help their precarious position as the economy worsened at the height of the financial woes experienced worldwide.

A creditor must have at least $10,000.00 in unsecured consumer debt to qualify for this program. Given the typical level of consumer debt that exists per capita today, that threshold should not be hard to meet.

Because this amazing relief program has no set cut-off point, it is wise to get on board as soon as possible to take advantage of the credit relief being offered. This generous program, if it is taken advantage of, can stop some of the major financial leaks in the U.S. economy, that vital “dam” that holds the United States afloat in the economic world.

Debt Consolidators – Why and How To Choose Debt Consolidators For Debt Relief

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Debt consolidators play the role of financial attorneys, and they are useful for all those people who have multiple unsecured debts. Since the wave of recession has hit the economy of the country badly, all the people with average income are suffering a lot. The income level of people is getting lower and lower as compared to the expenditure level. The inflation rate in the market is increasing day by day due to which prices of products have started to touch the sky. People are unable to manage their income and expenditure accounts and there is always a gap of cash in meeting the monthly livings. In order to fill that gap, people have taken many unsecured loans from different financial institutions, and they are paying many installments every month. Paying many installments in a month is quite difficult to manage. That is why debt consolidation programs are introduced to merge all the unsecured loans in one secured loan. Due to unawareness these days, people do not even know how to consolidate their loans into one loan, and that is why the debt consolidators are required to process the consolidation loan.

Why We Need Debt Consolidators?
In this economic era, the worst thing is that people do not have much information about their financial matters. Many people do not even know about consolidation loans and the process of merging many unsecured loans into one cheaper loan. The whole process is handled by debt consolidators who not only arrange a consolidation loan for you but also deal with your existing creditors for getting a discount over the unsecured loans. There are many firms providing these services and helping people to get relief from massive debts.

Now, the main issue for everyone is how to find a reputable debt consolidator in the market. The best thing is to check the previous track records of the services which they have provided in the past years. Reputed firms will not hesitate to show you the records and contacts of their previous customers. You may contact any of their previous customers to check their reputation and services.

In the previous years, due to increased fraudulent activities of debt relief companies, the federal government imposed a law according to which no company can charge any upfront fee from any customer. Any legitimate debt consolidator will not ask you for upfront fees. A reputed consolidator will deal with all your existing creditors and will negotiate to reduce your outstanding amount. Now what will happen is that first all of your existing loan amounts will be reduced and will be merged into one loan and only one installment will be payable monthly.

A legitimate debt consolidator will prepare all your documents for mortgage and will apply to the best creditor for consolidation. Reputed firms are licensed under the federal laws. You can also judge their creditability from their websites because reputed firms are getting business from word of mouth advertisement not conventional marketing. Hundreds of websites are available over the net, and you can even find various websites with free consolidation advice. You can also contact them to get advice. A professional consolidator will only suggest you the best options and facts about consolidation. He will fight for discounts with new creditors to get you the lowest markup rate.

In order to find the professionals, it is recommended to check a few firms and compare their services and charges. Nominal charges are the best quality of professionals, and you can judge their legitimacy by consulting their representatives.

Debt relief networks and forums are also helpful to find professional consolidators. Debt relief networks criterion does not allow non professional and fraudulent companies to get listed among the professionals. They require proof of legitimacy, and they check the reputation of the company before listing.

On the forums, you may find many people having the same problem. This is a natural phenomenon that people with the same problem help each other. Those people who have already hired the services of any debt consolidator can guide you perfectly about their services and legitimacy.

Finding a professional is the only solution for your debt relief and it is recommended to spend some time in finding the best service providers because they are your financial advisers and they will help you to get relief from massive debts.

Debt Consolidation- Highly Appretiatable

Debt blogger

Debt Consolidation are really one of the most effective and important thing in a person’s life as when he needs financial support for different types of purpose. Many banks and companies are there who all provide with unsecured loans that are loans without security as these kinds of loans are having a bit high in interest. People are getting well accustomed to such loan facility. The debt consolidation is the fact that it helps people to pay the loan amount within the given period of time.

These are basically prevalent in the unsecured schemes of loans. Debt Consolidation Loans Bad Credit are of various types and its terms and conditions along with the facilities are also very much different. People are amazed by the Debt consolidation loan facility that it is helping people in an effective way so that they do not face any problem while paying the loan amount. Due to the flexibility in the loan amount of the interest people are getting attracted as its assist people like anything.

The in UK is different as it has many more facility that it is offering people with. They work very fast and they have a different kind of way out by which a person easily pays the loan amount that is being desired within a given period of time as the consolidation ones really work in a different way. Consolidation loans are the types of loans people always avail at the time of emergency and pressure also.

People always go for the Debt Consolidation Loan Calculator when they crossed the amount of debts then the consolidation loans come to effect it provides a huge amount of money to the people and by the money people can pay all other loans along with the interest rates and then from onward the borrower will only pay the interest of one loan that is the consolidation loans. In UK this facility is available and a large number of people are benefited by it and in UK this facility is very fast and rapid and people can also solve their monetary problem by applying it. People who are extremely in burden of loans then the banks only provide them this facility to reduce the amount of loans and interest.

Debt Relief Order are provided by the banks and people get benefit out of it as the main aim and purposes of the debt consolidation is to accumulate all other loan amount along with the interest rates. Debt consolidation help to pay the different type of loan amounts that the borrowers taken from the different banks and other private money lenders. It is a simple ay by which the borrower can pay of all other loans and can also get rid of the pressure.

Knowing the Real Facts About Debt Settlement

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Many people tend to opt for debt settlement when they have excessive outstanding balances and they are unable to pay back. If you have intention to do so, I would like to remind you that there are 5 areas you need to consider before making your final decision.

Your Credit Score

Do you know that debt settlement will lower your credit score? It is within the range of 45 to 125 points. Besides the reduction on your credit rating, the information related to settlement will remain on your credit report for 7 years. If you already have bad credit, you should think twice before deciding for settlement. It is indeed difficult to get your credit back to the favorable rating within a short period.

The Cost Involved

Settling debt on your own doesn’t involve any cost. However, if you approach a professional service provider for assistance, you need to pay an excessive amount of service fee to get your debt negotiation process completed,

The Tax Matter

You will be enjoying debt reduction when your creditors agree to settle your debts at a lower amount. However, don’t be happy as the forgiven debt is taxable. You don’t save much from debt settlement.

The Legal Matter

When your creditors accept your proposed settlement offer, you need to make sure that they provide you with proper documentation, i.e. a written agreement with all the new terms stated on it. If you don’t have any proper documentation, you may face the risk where the debt collection agencies may still try to collect the balance of debt from you.

The Settlement Procedure

The whole debt negotiation process takes about 2 years and it involves offers and counter offers. A creditor will only consider to settle the debt when the debtors’ account is 90 days past due. Do you have time and patience to go for it?

Having a better understanding about the settlement concept will definitely assist you to make better decision. Don’t just settle your debt blindly without knowing the effects. For more information about debt settlement solutions and debt settlement companies, visit DebtSettlementEssentials.com.