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

Debt settlement is a debt relief method by which agreements are made between credit card companies and the representing settlement agency, whereby the total amount owed is reduced by as much as 60%. A credit card must be in default before consumers can take advantage of these services, as creditors are more willing to negotiate. A reduced balance, after all, means that the credit card company will not get all of the money they had anticipated. On the other hand, creditors would much rather get paid something toward the debt than nothing at all, such as in the case of bankruptcy.

Like credit counseling, there are some positive benefits related to settling one’s debt in this manner. The total amount to be repaid is dramatically reduced, saving consumers money. Naturally, since there is less money to be repaid, getting out of debt is much easier and quicker. Settlement is a popular debt relief method for this reason. In addition, the road to debt freedom takes less than two years, unlike credit counseling, which could take as long as five years.

While paying down a smaller balance and getting out of debt quicker are positive aspects of settlement, there are a few negatives. While participating in a debt settlement program, consumers will find their credit scores negatively impacted, primarily due to continual past due remarks. Even though the consumer is making monthly payments to the settlement company, their credit accounts will consistently remain past due until paid in full. There is also a small risk of being sued. While most credit card companies will not attempt to file a suit against any settlement participant, a few small, unscrupulous firms will take advantage of the opportunity. Thankfully, any damage to one’s credit report is temporary and fixable.

The primary appeal of debt settlement is the savings. Slashing one’s total debt in half is very enticing. Consumers will wind up owing much less than they would have while paying the minimum payments. On the downside, their credit will be affected, and they will continue to receive collection letters or phone calls.

Is debt settlement right for you? The decision depends on individual financial circumstances. For someone with more than 10K of debt and who is having difficulty staying current on all accounts, then settlement might be the best option. After all, the accounts are already past due, and likely will remain past due. Why not reduce the overall total balance and get out of debt quickly?

By: Hector Milla

Everyone knows that unpaid medical bills cause significant financial struggle and millions of bankruptcies a year. If you have medical debt, or think you were unreasonably charged, you are common, and there are many different options out there to pursue. Your options are much stronger when you can pay (even small payments), but if you can’t, that does not mean you face bankruptcy. One thing is for sure, being proactive and learning what your options are is a step in the right direction and a way to reduce your bills.

Options If You Can Pay:

1. Pay in Full or Larger Payments but Pay Less – Many doctors, medical clinics, and hospitals offer large percent discounts (10-30% reduction sometimes) if you can pay in full or in a small number of large payments. The incentives help your medical provider keep their accounts receivable (what people owe them) low and increase their chances of getting paid. However, make sure to not jump and do this right away, because you might be able to negotiate the total amount done if some charges and fees are in error or unreasonable.

2. Debt Negotiation Services Specifically For Medical bills – If you work within the industry, then you know what reasonable charges are for certain medical procedures, and how the insurance companies work. If you don’t, like most of us, then you will need to research this information and learn how to negotiate. Therefore, to make sure you save the most amount of money and time, some companies provide medical bill review and negotiation on your behalf. They are more successful and get large reductions because they know the industry. Be sure to work with no-risk or contingency fee based companies because there is no percentage of savings fee if you don’t save (so it’s a win-win).

3. Consolidate Your Medical Debt With a Loan – This is not always the best option should always come after steps 1 or 2 above. If you have medical debt and you are not on a payment plan, a loan allows you to only pay off the medical debt right away. However, you end up paying more in the long run due to the interest. Usually a personal loan is more difficult to obtain than a home equity loan or refinance; but if you can’t make a house payment you put your house in jeopardy. This is a last resort option and should be utilized only if you can obtain a lower interest rate than your current (5% at least better).

Options If You Cannot Pay:

1. Contact Government Funded Organizations – Medicaid is a government program that you may qualify for to help with medical bills and is designed by your State. There are many factors for eligibility, and usually they help reduce future medicals bills rather than cover those before coverage. Medicaid does have coverage for patients with reasonable income so long as their bills are high as well. Each state should have a website for information. Also, if you have children each state has a SCHIP or State Children’s Health Insurance Plan that your child may be eligible for.

2. Contact Financial Aid Contact or Charities – Many hospitals and medical clinics are non-profit. In order for them to maintain that status, they have to provide a certain amount of services for free. Therefore, many hospitals and clinics offer financial aid that you must qualify for (based on income, savings etc). Furthermore, many charities are available outside the medical facility that can provide assistance in many cases.

Consequently, if you can make minimum payments, then you are in a better set of options then if you cannot pay at all. Medical debt negotiation is the most effective and timely option but is not exclusive. Unfortunately, this type of negotiation requires a lot of research which leads to you working with a debt reduction company. However, make sure you debt expert or company specializes in medical debt and operates under a contingency basis.

By: Charlie Jones Jr.