Debt Relief News

Debt Lead Company offers & saving tips for debt settlement, consolidation, credit repair
July 12, 2010

6 Ways to Reduce Debt

Author: admin - Categories: Consumer Debt News, Credit Card Debt Articles, Debt Relief Tips, Featured Debt Articles, Featured Debt Relief Companies, credit counseling

The debt relief industry has both credible and shady debt management companies.  Yes, there are debt settlement companies that engage in fraudulent, deceptive and abusive practices that pose a risk to consumers, according to a federal investigation of the industry. In its investigation, the U.S. Government Accountability Office found that some debt settlement companies provided fraudulent, deceptive, or questionable information to its consumers, such as claiming unusually high success rates for their programs – as high as 100 %. However, the Federal Trade Commission and state investigations have typically found that less than 10% of consumers successfully complete these debt settlement programs.

According to the Federal Trade Commission, if a company promises to erase your debt for pennies on the dollar, be skeptical. Debt negotiation can be risky, and it can have serious, long-term consequences for your credit report and your ability to get credit in the future. And if another company include credit repair, alarm bells should go off.

Here are six tips from the Consumer Federation of America on how to get real debt relief:

1. Try to resolve your debt issues with your creditors one on one. You may be in a position to able to get your credit card interest rate reduced, late charges forgiven, and your monthly payments reduced.

2. Contact a nonprofit credit counseling service for advice. It may be possible to work out a plan through the credit counseling service to pay off the debts over time. To find the nearest nonprofit credit counseling services, consumers can contact the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.

3. Know your rights. Ask your Attorney General’s Office if state law limits the amount or timing of debt settlement fees in your state. Find your state AG at

4. Read the fine print. Walk away if the contract doesn’t contain the promises that were made to you, or if the contract contradicts what you were told.

5. Look for services that charge a fee only after the service actually negotiates debts.

6. Take immediate action if you can’t make your home loan or auto payments. (In some cases, debt settlement services can’t address home mortgage or secured auto loans.) Contact your lender to discuss loan modification options. immediately to try to work out new payment arrangements.

Read the original debt article online >

May 10, 2010

Tighter Rules Coming for Debt Settlement Companies

Author: admin - Categories: Credit Card Debt Articles, Debt Settlement News, credit counseling, debt relief - Tags: ,

Last week TASC reported that the debt settlement industry was under attack as credit card companies may be misleading the government once again.  Debt settlement companies that charge high fees and mislead consumers would be more tightly regulated under new legislation introduced Wednesday.  TASC agrees that debt settlement companies need to be held accountable for their actions but much of this debt relief reform appears to be biased and many incidents are taken out of context.  The proposed law, put forward by Sens. Charles E. Schumer, D-N.Y., and Claire McCaskill, D-Mo., comes as complaints about the debt settlement industry have soared amid the economic downturn.

Under the legislation, debt settlement companies wouldn’t be able to collect fees until a settlement was reached. Consumers also would get clearer upfront disclosures, including a detailed list of all costs and promised services.  Typically, the settlement firms promise to negotiate with credit card companies to reduce the amount that consumers owe. Costs vary, but a company might charge up to 20% of the total debt. Fees are usually demanded upfront, even though a settlement may never be secured

Hiring a debt settlement company doesn’t stop the collection calls either. Interest and financing charges continue racking up too, and lenders may even decide to sue in the meantime.  Consumer groups note that individuals can negotiate directly with lenders, and that credit card companies often refuse to negotiate with debt settlement companies. Even if a debt negotiation is reached — either independently or through a third party it could hinder the consumer’s credit score. (so do bankruptcy, consumer credit counseling and debt management)  Under the Schumer-McCaskill bill, consumers would have the right to cancel a debt settlement agreement and get a full refund. The legislation would provide for enforcement through state attorneys general and the Federal Trade Commission. The federal agency also would be given authority to regulate the industry’s advertising and marketing practices.

February 1, 2010

Does Debt Settlement Harm Your Credit?

Author: admin - Categories: Consumer Debt News, Credit Card Debt Articles, Debt Relief Tips, Debt Settlement News, Published Debt Relief Articles, credit counseling, debt relief

Does debt settlement affect your credit negatively?
Yes, quite often debt settlement will make your credit scores drop, at least during the months you are building your account for the debt negotiations.  However, consumer credit counseling, bankruptcy and most debt management programs will also damage your credit, but in most cases, consumers can get their credit to rebound quickly after debt settlement.  It is amazing what credit repair can do to rebuild your credit profile.

As soon as you have the ability, I recommend starting a savings plan. Saving even a little bit each pay-period enables you to stop using your credit cards for the unexpected expenses that can arise frequently. Saving is essential to grow your wealth and prevent consumer debt. Check with your bank to set up an automatic transfer to savings via payroll deduction or direct deposit.

Read the complete article > Debt Settlement Solution or Scam? The debt relief article was written by Jeff Morris from the US Debt Relief Firm.

January 29, 2010

Debt Relief Services for Affiliate Marketing

Author: admin - Categories: Consumer Debt News, Credit Card Debt Articles, Debt Settlement News, credit counseling, debt relief

The debt relief industry continues to expand with debt settlement, debt management, consumer credit counseling and bankruptcy filings rapidly soaring.  The Debt Relief Business and specifically, the attorney based debt resolution model is considered the new and preferred way of helping consumers settle their credit card debt.  Early on, we’re talking maybe a year and a half ago most sales offices believed that their dreams had been answered after the subprime mortgage meltdown, as promoting loan modification was the easiest money they’d ever seen.  Alongside modifying, loan officers, credit repair affiliates, mortgage brokerages and accountants alike became debt settlement affiliates with multiple net branches, but limited to green states.

The Federal Reserve announced more low rates for mortgage refinancing for all 50 states! $6,500 Tax Credit for First Time Home Buyers seeking FHA Home Loans.

Today, and with even greater confidence, the loan modification professionals see the debt relief business as the way to go and are quickly moving to promoting debt settlement, synonymous with debt resolution except debt resolution is performed by attorneys.  Attorney Based Debt Resolution also has several advantages to the debt settlement processing model, including the ability to service consumers in 48 states.

August 17, 2009

American Consumers Charged the Credit Card Debt

Author: admin - Categories: Book Reviews, Consumer Debt News, Credit Card Debt Articles, Credit Market Updates, Featured Editorial, Published Debt Relief Articles, credit counseling - Tags: , , , , , , ,

Richard Geisst, a Manhattan College finance professor and former investment banker published a new book, “Collateral Damaged: The Marketing of Consumer Debt to America.” In the book, Geisst traces America’s credit history and finds it riddled with sleepy regulators, congressional nit-wits and sinister financial firms making euphemistic lures to consumers. “A credit card offers $10,000 of credit, not debt. It has a friendlier ring,” he writes.

Consumer debt is at an all-time high, exceeding $2.5 trillion, or $8,000 per person, making it as American as apple pie and apparently equally tasty. But The Great American Debt Machine, as Geisst calls it, is hardly new. Sears established its consumer credit operation nearly 100 years ago, and automobiles have been sold “on time” since 1916. The American debt machine really began roaring in the ’20s, when consumer debt doubled. But fewer than 20% of the population bought anything on credit then.

Credit cards hit the scene with Charg-It after World War II, followed by Diners Club and American Express. Diners Club and American Express required payment in full, however, so their credit card holders couldn’t get in over their heads. Plastic as we know it began about 50 years ago, with Bank of America’s BankAmericard (now Visa) letting card holders finance purchases over time, paying interest on unpaid balances.

Geisst says there are several significant factors beginning in the 1980s played a major role creating the current financial chaos:

o •Variable-rate credit cards and adjustable-rate mortgages shifted credit risks from lenders to borrowers.

o •Financial firms gleefully packaged and traded their debt, making credit easier to obtain than at any other time in history.

o •The Tax Reform Act of 1986 abolished the deductibility of interest, except for mortgages, leading to a stampede toward home-equity loans, on which interest remains deductible, to finance credit card purchases.

In the ’90s, Geisst says, Congress and community activists encouraged excessive lending to low-income groups, expanding the subprime mortgage market. And a 1998 tax law increasing tax-free capital gains on residences to $500,000 per couple “proved to be an irresistible lure for those who thought they could flip their homes for a profit after two years.”

Debt cravings turned to crisis this decade, Geisst writes, as lenders packaged debts and cleared them off their books; regulators relied on bond rating companies to do their work; mortgage originations hit a record $4 trillion (over 13% were subprime also called bad credit mortgages); and bank card customers used plastic to pay for $4.34 trillion worth of purchases. “In order to achieve the American Dream, average American families were going into more debt given the low growth in incomes, factoring in inflation,” the author writes. But Geisst puts excessive blame on consumers without evidence of bad behavior. He maintains that large numbers of homeowners used home-equity loans to run up credit card charges, but he concedes that no statistics confirm this. And the author says the “average American has over 13 credit cards.” In truth, consumers have only about five cards on average, 42% of card holders don’t carry balances and about a quarter of Americans have no credit cards.

How to stop the insanity? Geisst calls for mandatory debt counseling for borrowers who pay only minimums on credit cards; tighter restrictions on tax-free residential capital gains, consumer credit and mortgage approvals; and new laws reinstating state usury ceilings, punishing predatory lenders and creating a Consumer Financial Protection Agency like the one the Obama administration has proposed. Government regulation may help stem America’s debt problems, but the recession will probably do even more to make consumers and lenders more cautious. Book Review and Article was written by Richard Eisenberg.

June 4, 2009

Debt Settlement Debt Management or Bankruptcy

Author: admin - Categories: Bankruptcy News, Consumer Debt News, Credit Market Updates, Published Debt Relief Articles, credit counseling - Tags: , , ,

For those consumers who can no longer to afford minimum credit card payments, Ethan Ewing, president of offers tips to help consumers understand their odebt relief ptions for help, including: “Now that credit card reform legislation has passed, it’s a great time for consumers to take control of their debt,” said Ewing . “To do so, consumers need to understand the available debt relief options.”

Debt settlement. A debt settlement company works on consumers’ behalf to lower principal balances due, often obtaining savings of 50 percent of the total debt. The firm does not make monthly payments to creditors, but rather negotiates with the consumer’s creditors while the consumer accumulates funds for the settlement. Debt settlement firms charge consumers a fee for their services, typically a percentage of the debt enrolled or a percentage of the debt reduced.

Consumers who persist with a debt settlement plan can resolve their debts in two to three years at significantly lower cost than that of a debt management plan. Debt settlement typically provides better repayment terms than a Chapter 13 bankruptcy filing and does not leave a permanent bankruptcy judgment on one’s record.

Debt settlement may have a negative impact on credit ratings and profiles and is best suited for consumers in serious financial hardship who cannot afford to make minimum payments on bills and who cannot afford the higher monthly obligation typical debt management programs require.

Debt management. Debt management companies, also known as credit counseling agencies, maintain pre-arranged agreements with credit card companies to lower interest rates on a consumer’s existing debt to a creditor-issued “concession rate.” Debt management companies collect a monthly fee from consumers, as well as revenue from the credit card companies called “Fair Share” payments.

In debt management plans, monthly payments decrease, but principal amounts owed do not. Consumers who are able to continue with the payment plans typically can pay off debt in approximately five years. Debt management plans also require higher monthly payments than debt settlement programs, and are best suited for individuals who are facing a less-severe financial hardship than a typical debt settlement customer.

Bankruptcy. Bankruptcy Attorneys concur that BK’s can leave a severe negative impact on a filer’s credit rating for many years. Credit repair is not as easy as some debt counselors may lead you to believe. Under bankruptcy reform enacted in 2005, it is harder and more expensive to obtain than it used to be. Under the new law, fewer people can eliminate most consumer debt by filing Chapter 7 bankruptcy, taking more people to Chapter 13 filings. Chapter 13 requires consumers to pay back debt on a repayment plan (which can take up to five years), while still suffering the negative repercussions of a bankruptcy on their credit reports and public records. Generally considered a last resort, consumers considering a bankruptcy filing should speak to a bankruptcy attorney licensed in their state.

Read the complete press release online at