If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a “debtor.” If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a “debt collector.” You should know that in either situation, the Fair Debt [...]
Debt settlement, also known as debt negotiation, debt arbitration or debt workout, is an aggressive approach to debt reduction in which the creditor agrees on a reduced amount, paid by debtor, as payment in full.
Overall, here’s the thing you want, to find a way to stop paying and start earning interest. Why is this debt such a bad thing? Debt is a very bad thing if you have to pay the interest.
You’re deeply in debt, wondering which way to turn. You’re confused, worried, and so stressed out you can’t think straight. What do you do? Many people mistakenly turn to credit counselors. Often people struggling with serious debt make the dangerous assumption credit counselors are “the good guys” because they advertise being “not-for-profit”. Other times debtors lured [...]
Here’s a question a lot of people are asking: How can you settle a credit card debt without using a “credit counselor?” * In fact, this article has become the most popular “Debt Relief” article in the past 90 days on Ezine Articles, the largest article publisher on the web, with over 50% more views than [...]
What is debt settlement? Debt settlement is the process of negotiating with your creditors to settle your debt for less than what you owe. One thing you need to realize is that this program works best for people that are soon approaching or already in a financial hardship of some kind. You don’t have to wait [...]
Back in the 50’s, the credit card industry got together to come up with a plan to cope with all of the people filing record numbers of bankruptcies. They were getting stiffed left and right, and they came up with Credit Counseling. After creating the idea, they lobbied to Congress to get the non-profit status for Consumer Credit [...]
Traditionally, if you’re not able to make minimum payments, you’re in a hardship, or you just find yourself in too much debt, what you do is file bankruptcy. You file bankruptcy and you pay zero. The creditors get nothing and it’s the ultimate move, the ultimate trump card that you’ve got as a citizen. Unfortunately, about [...]
If you can’t write a check, you don’t have the resources like a 401k or equity in a home to pay off your debt, what can you do? Most people out there are just making minimum monthly payments, exactly what the banks want them to do. The average client I deal with these days has around [...]
Instead of paying off your debt with a lump sum check, here’s another option which is the next best thing. If you want to get out of debt as fast as you possibly can without having any negative impact on your credit whatsoever, you must pay down and pay off your debt using an accelerated [...]
The first option you have is to whip out a check and pay it off, but if you’re reading this now that’s probably not an option you can pursue. There are possibilities you may not have thought of. You may be able to borrow against a 401k. You may be able to pull money out [...]
Form 982: http://www.irs.gov/pub/irs-pdf/f982.pdf A common question and objection to debt settlement is that debtors whose debts are partially canceled outside the bankruptcy system will need to report the canceled portion of the debt as taxable income. The IRS considers $600 or more of forgiven debt as taxable income. The forgiving creditor must provide the taxpayer [...]
THE BEST WAY TO STOP COLLECTION CALLS ASAP. This only applies to people in a legitimate debt settlement program, such as the debt settlement programs I endorse. If you are not yet enrolled into a debt settlement program, be sure to read this Debt Settlement WARNING before talking to any of the bazillion new debt [...]
Here are a FEW things you can do to handle creditors and collection calls to minimize the calls and get them to stop bothering you ASAP. Despite many false promises seen online and elsewhere today, no one can promise to “stop creditor calls”. Original creditors have rights to collect legitimate debts. However, it is illegal for [...]
Let’s start with your situation… The fact that you have high credit scores and have not fallen behind means you have something to lose (your perfect payment history) if you choose debt settlement. But, let’s first get clear about exactly how your credit will be affected, because along with the negative impact to your payment history, the [...]