Debt relief service

Amongst the many things you need to be leery about when signing up with debt a settlement service, one of the largest problems, is the actual program term. Since the program term will determine, not only the total amount you end up paying, but it also will determine your monthly payment.

Some companies will stretch their monthly term to 48 or 60 months, we have even heard of a company that offers an 80 month term.

You have to be careful with those types of companies. Since programs like that will most-likely get the client sued by the creditor, and they are most likely a scam debt settlement service. The company plans on the client being sued and take their fees from you long before it happens.

A debt settlement or debt negotiation program should not be over 36 months. And if you have under $70,000 in debt your program term should much shorter.

Since the faster the creditor gets paid, the less negatives can happen against you. First negative being, less late payments on your credit report and second being, less chance of being sued by your creditor.

Can you be sued? Yes, and don’t let any company tell you otherwise.

Is it likely you will be sued for a judgment and income garnishments? It will all depend on your situation, and whether it is “cost efficient” for the creditor.

So if your term is short like 12 to 30 months, your minimizing the risk, by paying them back faster. Plus it gets you out of debt faster too!!

The best way to go, is a term under 36 months with “No Pre-Payment Penalty” then you are in control of the term and you can pay more when you can afford to and the minimum payment other months. This way you are still assured the program in done in under 3 years but it could be much faster depending on your settlement amount and how much you pay each month.

By: Jeff T Forman

What happens if you do not pay credit card debt seems be a question that many people are asking during today’s economy. This question will not be answered the same depending on what you plan to do about not being able to make your credit card payments.

If you fall behind on credit card payments and become paralyzed to the point where you ignore the situation you are in, you are going to have problems. You will get collection calls from your credit card company for about six months. After that time, your credit card company may sell your account to a third party collection agency. They can be very harassing and down right nasty.

With the economy being what it is, more and more credit card companies and collection agencies are taking legal action. They will place a judgment on your credit report and in many cases will garnish you wages for the outstanding balance on your account. This is something you want to avoid at all cost. So, the sooner you face reality and begin to deal with your situation the better off you will be.

It is best to work with your lender and see what type of hardship programs they offer. Credit counseling may also be an option for you, but you will still have to make a 2 percent payment each month. Your collection calls will stop, your unsecured debt will be consolidated into one monthly payment, your fees will stop and your interest rates will be reduced significantly. But not everyone is able to make a minimum payment.

Debt settlement is growing in popularity as many people are being faced with bankruptcy. This is an alternative that can have you debt free in 12-36 months. Debt settlement is a debt help option where your credit card balances are reduced through negotiation.

By: Marjorie Salada