Archive for November 1st, 2007
Being in debt is not just a financial burden, it’s an emotional one! It seems to control every avenue of your whole life.
It’s a well known fact that a high rate of divorce is due to money problems. Depression and even suicide is also heavily linked to debt worries.
So, how do you deal with debt?
Well, there are many options available to you, but it really depends on the extent and type of debt that you have.
Firstly, you need to assess your situation. Get a grip on yourself emotionally and step outside of yourself and look at your finances objectively. Look at your debt as an outsider looking in. You cannot be objective about your debt when you are emotionally overwhelmed.
Once you have established the extent of your debt, you can then start looking for ways to firstly, control it and secondly, eliminate it.
By controlling your debt, I mean ‘not adding to it’. The most common mistake people in financial trouble make is to bury their heads in the sand. By not wanting to know exactly how much money they owe and kidding themselves that they owe less than they do, they carry on spending and adding to the increasing amount of debt already accrued.
What’s done is done! You can’t turn the clock back, but you can DEAL with the problem and eliminate it.
There are several different solutions to debt elimination.
If you are finding it hard to get your head around your debt problems or are having difficulties with lenders, then a good first port of call could be a debt counsellor. There are many organisations around and some of these are non profit making organisations.
Looking at ways to make savings in your day to day life is the next option. Maybe getting a second income to reduce the debt so it is more manageable. Selling some of the things that got you into debt in the first place could go some way to reducing the debt. Car boot sales, garage sales, in fact anything that will start you on the right road.
If your debt really is so bad that your home is at risk and you face bankruptcy, then maybe a debt consolidation loan is your final option. With a debt consolidation loan, you lump all of your existing loans into one payment that is spread over a longer period of time.
There are pros and cons to this type of loan. The initial relief is immense. You feel in control and also free up some of your income once again. But the downside is, the temptation is there for you to borrow and spend more money yet again. You have not learnt how to control your finances yourself, and are therefore in danger of repeating your initial mistakes.
The other factor is that you will be in debt for a long time and pay a lot of interest over that period of time. You really do have to look down the road with this type of loan.
Take time to sort out your debt problems, they took a long time to mount up, they won’t disappear overnight. But with a well thought out plan and some good advice, you could be debt free a lot quicker than you thought possible!
For more advice and information on all aspects of debt solutions visit http://www.debitconsolidation1.com/Best_Debt_Solution_to_Eliminate_Debt.html
November 1st, 2007
Many people believe being in credit card debt means that they are criminals. That is not true. Many events can cause a person to fall behind on their scheduled credit card payments. Some of these events are very common such as losing your job, an unexpected illness, divorce, a death in the family, etc.. These events or similar events do not make anyone a criminal. If a credit card company or a collection agency is treating you as a criminal please read your rights under the FTC Consumer Protection Act and get informed.
No one, no matter how much money owed should be placed under any stress to pay back what they owe. Everyone has rights and they have been put into place to protect all consumers. It is true, when the credit card agreement was signed it was stipulated that all money lent would have to be paid in full. No one is disputing that, again, there are certain situations in life that may prevent you from doing that. That is where debt relief or debt counseling comes into play.
Debt relief or debt counseling is legal, what is not legal is the practices of some of these agencies. False promises, outrageous upfront fees for nothing, that is illegal. I have written in other articles to make sure if debt relief of any form is needed to please make sure to do your homework before signing on with any debt relief agency. The stress alone of knowing you are in debt is enough stress let alone joining an agency that is going to lie to you.
Many psychological games are played by collectors calling you at home collecting on unpaid debt. My best advise is to buy yourself a caller ID package and not pick up the phone. If ever contacted on the phone you have the right to ask the person collecting on the debt not to call you anymore, whether it is at home or at work. Once this request is made, it has to be honored, if it is not then the agency collecting on the debt is braking the law. If somebody threatens you over the phone please make sure to report this incident to the FTC.
You are not alone, you have rights. This does not mean you do not have to pay your debt, remember a signed contract with your signature on it says you agreed to pay all money lent in full. In the case you have fallen behind on your payments or feel you are going to fall behind, please seek counseling regarding debt relief.
There are honest debt relief agencies to help you, it is your job to find the right one for you. Find an agency that will take their time to listen to your concerns and that truly has your best interests at hand. It all starts with the fees they charge, then you will know whose best interests they really care about. Lift your head up, find help, do not feel as if you are a criminal, you are not! Life just simply happens, once you realize this, you are on your way back to regaining your financial freedom.
Eric Gartle has worked in the debt settlement industry for the last 10 years and has vast experience negotiating personal credit card debt as well as business debt. He has headed some of the most prestigious debt settlement companies in America. For more information please visit http://www.pemperandgartlecom
November 1st, 2007
When the bankruptcy reform took place in 2005 this helped explode the debt settlement industry. Even though debt settlement was still large prior to the change in law, it grew to be way larger than it was after the change. Reason being many people now cannot file for a Chapter 7 bankruptcy but only for a Chapter 13, especially homeowners. Thus making settlement a lot more attractive as opposed to a Chapter 13. Now settlement is not the magic cure for debt relief it does come with a few disadvantages, however I feel the benefits far outweigh any potential setbacks. So what are the benefits of a debt settlement program?
The benefits are the saving of money and time, which go hand in hand in settlement. With settlement you may be able to reduce your debt by as much as 50% or more. So right there you can see a huge savings, and that reduction is on the balance not the interest rate like a credit counseling program. Then once you consider the amount of money that you would be throwing away towards interest through paying the minimum the savings will be a lot more. Paying credit cards through minimum payments is horrible for your finances, because the majority of each payment will go towards interest, which takes forever to pay off.
Then the next big thing is the time factor. There is no method of debt relief where you can save the amount of money and time, except for a Chapter 7 bankruptcy, which is what most people are trying to avoid. In most situations you can expect to become debt free within two years or less. Which is a fraction of the time it would take you to pay down a balance through minimums, with the average being around 38 years. Some people may even be out of debt within six months, given they have the income and proper negotiating skills.
And for some the largest benefit is that of being able to avoid bankruptcy. Without settlement a lot of people would have no other option than to just file for bankruptcy, something I wouldn’t wish upon my worst enemy. A Chapter 13 bankruptcy would require you to disclose all of your financial information to the courts and creditors and let them decide how much you can pay your creditors back. In some cases you will pay back close to 100% of what you owe and you have no say in this, only the courts do, which is very unnerving for many people. Not to mention the negative effect it will leave on your credit report and the fact that a bankruptcy is a public record for the rest of your life. While debt settlement may not be for everyone, if you are someone who is facing bankruptcy or just realize that if you keep doing what you doing by just paying the minimums is never going to cut it. Then debt settlement may be your best recourse to save money and time, and get the debt relief that you need.
Steve Bis is a senior debt analyst and research assistant with the USCA/Roll Law Firm which practices primarily in debt settlement.
November 1st, 2007
