My Debt Relief Plan

Debt Relief Clearing House Tips

It is not unusual for a credit card holder to be confronted with high credit card payments. This, of course, happens when you shop frequently with your credit cards. No doubt that a credit card can be very useful, especially when you are out of cash. However the ensuing debt becomes a cruel task master when unbridled spending with a card extends beyond your means of repayment.

There may come a time in your own life when you experience financial problems due to excessive use of credit cards. A large number of bills and unsettled payments can collect under higher interest rates. If so, you have a helpful option - debt relief clearing houses. A debt relief clearing house service is available to help manage your unpaid bills. The key service they provide is to assess your debts and provide recommendations on settling them.

How difficult is it for us to limit our wallets to only one credit card? Apparently very difficult! Perhaps surprisingly, most people struggle in this area. Nevertheless, it is a good idea to try to get to that point. On doing so, you will soon notice that your payments become more current and less money is spent. This is because instead of three payments of a $20 minimum per month plus three separate interest rates you now have one set of each. That alone saves you at least $40 a month! If you feel the need to use more than one credit card, such as for business, then take great caution with your spending habits in doing so.

A consolidation loan to pay off your credit card bills might be a satisfactory option for your specific circumstance. A consolidation loan can provide you both a convenient and fast way to settle your credit card debts. Afterward if you want to avoid accumulating interest in unused cards, simply cancel them.

Take a wise approach to using your credit cards. You have to be able to keep track of your cards from month-to-month as well as the interest rates that you are being charged. Whenever you have to pay for any goods or services, try to use cash as often as possible and reserve your credit cards for emergencies. At a minimum, use your cards for small, easily managed purchases that you can quickly pay off each month. Or alternately, use a debit card in place of a credit card. This can then serve as your cash in pocket and doesnt hurt your credit rating. The use of credit cards, on the other hand, become debt, pure and simple.

In addition to their other services, a debt clearing house provides you with all sorts of information regarding how your financial struggles can be controlled. This is beneficial when you have already run into a significant financial problem and your situation appears bleak. The debt clearing house then helps you to repay all your accumulated loans and avoid further trouble from creditors.

Add comment September 30th, 2007

Debt Counseling Services - Legitimate vs Fraud

There are many illegitimate, fly-by-night operators in the debt management services industry. Their sole aim is to separate you from your hard earned money. They can be slick talkers, and sometimes its very difficult to know whether or not their services are for real. Since you may have large debts to repay, they take advantage of your vulnerability and make promise to help that they cannot deliver. In reality, though, they are working only for themselves.

If you are facing an intense financial need, what do you need to know to avoid becoming the next scam victim of one of these con artists?

Legitimate Companies

Legitimate debt counseling companies offer a necessary service in managing and helping to reduce your debt. They are able to provide the following services.

• Assist with consolidating high interest loans.

• Manage your debt accounts.

• Stop late fees for many payments, or at least reduce the amounts on those fees.

• Help you determine methods of restricting your use of credit cards for essential expenditures, such as unplanned travel and emergencies.

• Though the principal payments will not be lowered, the interest on the balance of outstanding loans can be reduced to a degree. These companies help to negotiate interest payment reductions on any outstanding balances. Many times, however, you can negotiate restructured debt payments with your creditors on your own. They are more than willing to work with you. They, after all, have high incentive to receive back from you as much of the loan as possible.

• Typically take the initiative to contact you and ensure critical information is made available to you in a timely manner.

The Phonies

• Will not be able to offer any substantiated testimonials from their customers.

• Wont have an expert panel.

• Wont be able to describe realistic strategies or procedures for truly managing and reducing your loan amounts.

• Request your money to pay off creditors, but do not actually follow through.

Scam Company AmeriDebt

One such company which has now been closed by the Federal Trade Commission is AmeriDebt. After the Commission received several complaints against them, the company was unceremoniously shut down. AmeriDebt had scammed their clients by telling them that they could reduce their debts without any upfront fees. However they conned their customers into offering donations to the company. Instead of paying back the money to the creditors, AmeriDebt transferred it to other profitable companies. As a result, their customers ended up suffering even worse credit ratings than prior, and creditors made their lives miserable.

Be extremely careful with any company with whom you have financial dealings.

Add comment September 30th, 2007