Debt Settlement: The Truth About Debt Settlement
http://www.debtguru.com/debt_settlement.html If you are considering a debt settlement program you really need to Learn the Truth regarding these programs. For a Free consultation enter the URL above.
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What is the debt settlement service cost?
Before paying the debt, I want to know about the debt settlement service cost through law firm. How much will it cost?
The settlement cost depends on the attorney. The attorneys will charge a particular percentage of your total debt and sometimes a monthly service fee. Once you enrolled into the settlement program, all fees and payments will be included with your new monthly payment.
My boy friend is in debt what is his best option debt settlement or declare bankruptcy?
He owes about $12,000 we want to get married when he is debt free. Do you know any reliable settlement companies that are trust worthy? What are the procedures?
He is a full time student and has a job he works full time with minimum wage.
Receiving help from debt reduction services normally helps you avoid
bankruptcy, pay off your debt in full and get your finances under
control. Bankruptcy should be your final choice, and debt reduction
services prefer to help you to eliminate your debt completely, instead
of running from your debt.
Credit Counseling or Debt Settlement?
You’ve seen the ads: credit counseling companies say they can help by getting your payments and interest rates lowered. Others claim they can get your debts wiped out entirely by settling them for pennies on the dollar. Money reporter Stacy Johnson takes an inside look at these companies.
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looking for attorney in NJ to help me start a debt settlement company?
anyone out there ever start a debt settlement company and researched the legal aspect in the state of NJ? I need legal advice from an expert.
If you want legal advice, you will need to speak to an attorney.
Debt Consolidation Options Video | Bills.com
http://www.facebook.com/bills.com Learn about your debt consolidation options, including mortgage refinance loans, debt settlement, and credit counseling in this video hosted by Brad Stroh, Co-Founder and Co-CEO of BIlls.com.
Debt consolidation options include refinancing your mortgage to pay off other debts, receiving credit counseling, or reaching a debt settlement with your lenders. Bills.com Co-Founder and Co-CEO, Brad Stroh, reviews when each of these options is appropriate and how each will affect your credit rating. He also reviews the long-term costs of each option. Before choosing one, determine whether your goals are lower payments or paying off the debt faster, and then contact a reputable provider to begin the process. Visit Bills.com for more personal financial advice and information.
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How do you know which debt settlement & negotiation company to choose?
I know it’s time to hire a debt settlement company, since I don’t think I’ll be able to get out of my current situation by myself. (roughly $130,000 in debt… and counting). Are there any good debt settlement companies you would recommend?
Hey Janice,
Sorry to hear that you are in such a tough place.
The first thing you need to do is make sure you choose a debt settlement company that is TASC accredited. TASC stands for, The Association of Settlement Companies, requiring businesses to follow fair and specific practices and standards.
It’s also important to remember that all debt settlement and/or debt negotiation companies fees are slightly differently. Make sure that you fully understand how their fee process is set-up and you know what you are paying for. If a debt settlement company is unable to negotiation your debt they shouldn’t charge you a settlement fee.
When I got into financial trouble I enlisted the help of DMB Financial. They were very fair and worked with me to settle my debt. Overall I was very happy with their services. I was able to decrease the amount of debt I owed and pay it off in far less time than if I was trying to do it on my own. They discussed all their costs upfront, what to expect and helped me avoid filing for bankruptcy. I think the biggest relief is answering the phone without having to worry about it being an angry debt collector.
I’ve provided DMB’s link below so that you can access additional resources from their website. They are a really good company and really do help their customers get out of debt… and stay out of debt.
Can anyone advise me how to go about debt settlement on my credit cards?
As everyone must have noticed, there are now hundreds–if not thousands–of debt settlement companies out to make even more money on people that are almost in a state of bankruptcy. They all seem to "claim" that they can reduce your debts by 50% or more without damaging your credit score. So if it’s that easy, does anyone know how to go about doing it yourself without paying someone?
I, personally, think that debt settlement or a debt consolidation loan is not a great idea. If you have an income, this plan will work for you. Just follow the steps.
Please do not consolidate or use a debt reduction company . It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. Student loans are the only debt that can garnish your wages for non payment without taking you to court first. Just list them out on a piece of paper or a spreadsheet and follow the plan. If you work the plan, the plan will work for you.
A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another.
Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don’t even have to worry about it. You must cut your spending and live on less than you make.
2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.
3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:
To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment
Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment
Debt #1: paid off
Debt #2: paid off
Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.
4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.
5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.
5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.
5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.
You can do it and it isn’t as hard as you think. Just follow the plan.
Debt Settlement Companies Under Scrutiny
Attorneys general from Illinois to West Virginia have become serious about combating abusive practices within the debt settlement industry. In New York state, Attorney General Cuomo recently announced that the state has secured subpoenas against 14 national debt settlement companies. At the same time, the Consumer Credit and Debt Protection Act was introduced in the U.S. House of Representatives in an effort to reign in the industry. Join Thomas Fox, Cambridge Credit Counselings Community Outreach Director, as he discusses why so much scrutiny is being placed on debt settlement agencies and the practices that have brought them under fire.
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Is credit card debt settlement bad for your credit?
I am a senior in college, I have no job now as I am finishing school. I start work in June, and I actually have good credit, over 700, and 5k in credit card debt. I’ve paid my bill in full always in the past until my last killer spring break. Debt settlement sounds cool to cut the debt in half which I would pay off with a lump sum, or should I just stomach it for another month where I can pay it all off entirely in full. Thanks.
You have not provided enough information but, if I understand correctly, your credit cards have not yet become delinquent, otherwise your credit score would not have been over 700.
If you have paid at least the minimum payment on EACH of your credit cards for every statement, you are in good shape, as far as your credit history goes. Your credit score could be slightly damaged by your higher debt-to-credit ratio, but that is a minor concern, because it will be corrected as soon as you either pay off some of the balance due or increase your credit line. Or open another credit card. And with a score above 700 you will have no problem opening a credit card with a 0% balance transfer interest rate to transfer some, or all, of the balance on your current credit card. That should take care of the problem until you start getting paid. You will need to be careful though, as all banks charge a balance transfer fee of 3% of the total amount. Some banks, however, like Citibank and Bank of America offer credit cards with 0% balance transfer rate and $0 balance transfer fee on some of their credit cards. I would recommend browsing through their credit card offers.
What will seriously damage your credit history for a long time is missing a credit card payment. It will stay there for 7 years, even after you settle with your creditor.
