Debt relief service

If you’re considering using debt settlement to help you pay off your credit cards, here are 5 tips to help you decide on a company to help you.

Keep in mind that hiring a debt settlement company is no different than hiring any business to perform a service for you – so make sure you find the one that fits your needs the best. Not all debt settlement companies are the same. Like with any industry, there are good ones, and there are the rest.

Unfortunately, when it comes to settling credit card debts, you often hear more stories about people who complain than those who receive good service (and there are many).

How do you determine which settlement company will offer you the best service?

1) Shop around

When hiring a settlement company, you should contact at least 2-3 different businesses and compare the services and terms they offer. Not only will you find the best company to represent you, but you will learn a lot about how debt settlement works, and how it can help you.

2) Check with the BBB

While not everyone with a complaint contacts the Better Business Bureau (so a clean record may be misleading) if there are several unresolved complaints, that is a “red flag” to find out why there are unhappy customers. If the complaints have been resolved, that is a good sign that the debt settlement company offers good customer service. You can search for company records online at http://www.BBB.org.

3) Check references

While debt settlement is a confidential process, and therefore you may not find many companies willing to give out names of happy customers, it is worth asking. Talking to a former customer will tell you more about a company than any brochure or website.

4) Get all the details in writing first

This is an absolute MUST – you should never agree to anything, sign any paperwork, or send in any money until you get all the terms and conditions in writing. A written contract will help you understand what service you should receive, how much it will cost you, and protect you if an issue comes up.

5) Ask lots of questions

If you have any questions (and the more settlement companies you talk to, the more questions you will have) make sure to ask them – and get the answers you want. If a company is not willing to take the time to answer your questions now, how will they respond to you once you become a client and your money is at stake?

Bottom line, it is your responsibility to “do your homework” and research the best company to help you settle your debts.

If you take the time and effort to find the company that will fit your needs the best – just like you would when hiring any professional – you will greatly reduce the chances of a major problem occurring.

Settling your credit card debt is a big decision for anyone to make, so don’t make the decision lightly!

By: Kris Bickell

Calls from debt collectors can ruffle the toughest of feathers. People have changed their phone numbers and even disconnected phones to avoid the “bill-collector”.

Consumers do have rights. Under the Fair Debt Collection Practices Act, you can tell debt collectors to stop calling you. Collectors prefer to hassle you on the phone because they want to intimidate and upset. They know many people are not aware the FDCPS has laws to protect you from them. While collection laws differ from state to state, there are some firmly fixed rules. Collection agencies may not:

Harass – They may contact you only between 8 a.m. and 9 p.m. They must tell you they are bill collectors. The use of profane language or threats is not allowed. If they know your employer disapproves, they cannot contact you at work. Since bill collectors usually don’t know your work rules, you should advise them of this. Lie – Collectors cannot suggest they are anything but collectors. For example: implying they are a federal or state government agency employee or a law enforcement officer. Suggesting you have committed a crime or you will be arrested for non-payment is not telling the truth. Debtors prison does not exist anymore and you cannot go to jail for an unpaid debt. The exception to this could be Federal and State tax debts. Employ Unfair Practices – Collectors cannot threaten to take your property unless they have authority to do so. They may not send you postcards (breach of privacy rights). Accepting a check postdated by more than five days is illegal unless consumers are notified beforehand when it will be deposited.

What should you do if you feel a creditor has engaged in deceptive, unfair or abusive practices? The FDCPA provides consumer protection against unfair practices by collectors. If you decide to sue a debt collector for violation of the FDCPA, it would be left to the courts to decide what actually constitutes harassment.

There are other things you should know about filing a suit. You have up to one year after the alleged violation to sue. If the court rules in your favor and you win, you may be entitled to damages plus an amount up to $1000. You may also be able to recover attorney fees and court costs.

Collection calls can cause a lot of stress. But there is a way to make them stop. Simply write to them demanding they not contact you anymore. Send the letter by certified mail and request a return receipt. After the collector receives your letter, they are permitted to communicate with you once more, by mail, and may let you know further efforts to collect the debt will stop, that the collector may take certain actions or the collector will definitely take certain actions (they may or may not outline those actions in the letter). Stopping the calls does not relieve you of your responsibility. You still owe the money, and the company may pursue other collection tactics.

The best way to avoid these stressful situations is make sure your financial house is always in order. Unfortunately, it can be easy to get trapped in a cycle of debt. One particular problem common today is people getting overextended with payday loan debt. Try to stay out of these debt traps, but if you do find yourself in one, know your rights!

By: Kurt Lehman

What are Debt Settlement Programs?

Debt settlement Programs (a.k.a Debt Negotiation or Debt Reduction Programs) are debt relief programs that help you negotiate with your creditors to significantly reduce your overall unsecured debt (includes the original debt amount + interest charges and late fees). In layman’s terms, experienced negotiators help you alleviate your debt and pay up only a small portion of your total debt by identifying the best debt settlement program that suits your needs. Most debt companies can reduce your debt from 22% – 55% of your total debt. This allows you to settle your debt much more quickly. This kind of program is perfect for those who want to eliminate their debt in a couple of months.

Most debt settlement companies charge a client 9% – 14% of their total debt.
How does it work?

Step # 1
Decrease your Main Debt amount
Most debt settlement programs start by negotiating your main debt amount. On the average, the main debt amount is decreased by 35 % to 50 %.

Step # 2
Decrease Late fee charges
One of the reasons why debts increase to unmanageable amounts is the accumulation of late fees. In some cases, late fees can be more than the main debt amount. Most Debt Settlement programs work to remove the majority, if not all, of your late fees.

Step # 3
Decrease the APR (Annual Percentage Rate)
Just like late fee charges, the APR can also accumulate and add a whopping amount to your outstanding debt. Agencies negotiate to decrease this fee to a much affordable amount.

Step # 4
Pay the Monthly Settlements
Once your agency has settled the reduction of your total debt you must then make sure that you pay your settlements regularly. Keep in mind that your agency worked hard in reducing your debt to a manageable amount. Missing any payment might cause you more problems than what you had to begin with. The amount you have to settle is based on your current financial situation.

TIME FRAME
In most cases, the debt settlement process takes around 4-8 months. This timeframe, however, is not a strict rule. It can be reduced or stretched depending on the client’s request and capability of settling their account. It is not uncommon to hear that a normal credit card debt settlement can last up to 4 years or sometimes even more.

Why make use of debt settlement services?
Many countries all over the world are slowly waking up to the dangers of paying liberally through their credit cards. In many cases, even students right out of college are accruing debts that seem monumental. Bad debts can seriously affect your creditworthiness, making it almost impossible for you to get loans when you really need it. By availing of the services of a debt settlement agency, you can work out the easiest way to pay off your loans.

One of the best ways to get in touch with the best debt settlement companies is through online services that will give you access to a nationwide network of qualified debt relief providers. These services search the ongoing trends in the debt relief market and give you the best solution based on your unique financial needs. They do not require you to provide them with any secure or sensitive information. In most cases, you will get comprehensive data just by entering your debt amount, state and pin code into their search engines. With services such as these, debt settlement has never been easier.

By: Devendra Mishra