Debt Relief News

Debt Lead Company offers & saving tips for debt settlement, consolidation, credit repair
March 1, 2011

Comparing Debt Settlement to Bankruptcy

Author: admin - Categories: Bankruptcy News, Debt Relief Tips, Featured Debt Articles

When things are looking bad financially, you may be faced with a tough decision: Do you file for bankruptcy? Do you try and reach a debt settlement? What are the differences between the two? Knowing how both a debt settlement and a Chapter 7 bankruptcy can affect you is important, especially if you want to take the path that causes you the least financial damage. Both the debt settlement program and bankruptcy have benefits and drawbacks, and here we’ll go over some basic information comparing debt settlement to bankruptcy that will help you decide if it comes to that. The legal counsel for both options is similar. Many bankruptcy lawyers also offer debt settlement services. In the past, people would just get an equity loan after a bankruptcy discharge but the laws and guidelines have changed in recent years.

Debt settlement is essentially a negotiation with a creditor in order to reduce the amount that is owed on a debt in exchange for a lump sum paid to the creditor. Negotiating debt can often reduce it to anywhere between twenty-five and seventy-five percent of the debt, which can be a substantial amount. However, this amount must be paid as a lump sum, or in some cases, over the course of a short period of time (a month or two). Debt settlement can only be performed on unsecured debts, such as credit cards and medical bills.

Bankruptcy, on the other hand, takes a number of different forms. The most common type of bankruptcy for individuals is Chapter 7 bankruptcy, in which all non-exempt property owned by the person in debt is sold, and the proceeds are given to the creditors. This process is also known as liquidation. Chapter 7 bankruptcy has the advantage of allowing the person in debt to start fresh relatively quickly, and is often used by individuals with very large amounts of debt and few assets. Because bankruptcy is certainly more damaging in terms of loss of assets and credit, most people will attempt a debt settlement before declaring bankruptcy.

If you are in financial trouble and want to avoid bad credit in the future, a debt consolidation loan is often a sound option. Debt settlement should certainly at least be considered before jumping to bankruptcy, as Chapter 7 bankruptcy can have far-reaching repercussions that stay with you for a long time. However, failing to pay a debt settlement can be even more damaging. Consider all of your options and try some comparison shopping for debt settlements before making your final decision, as doing the right thing for you and your family should be a top priority.

January 13, 2011

Do Debt Settlement Services Lower Credit Scores

Author: admin - Categories: Debt Relief Tips, Published Debt Relief Articles

Debt Settlement Nationwide posted a good article recently seeking to set the record straight on the impact debt settlement has on a person’s credit.  Does debt settlement hinder credit scores?  Did you know that qualifying for a debt consolidation loan is often more difficult than getting approved for a mortgage bad credit? Of course it will but so will late payments and typically consumers are seriously delinquent on their bills when they enter a debt negotiation program.  Read the original article, How Debt Settlement Impact Credit.

July 12, 2010

Comparing Debt Settlement to Debt Management

Author: admin - Categories: Debt Relief Tips, Featured Debt Articles, Featured Debt Relief Companies, Published Debt Relief Articles

Debt Settlement Nationwide published an article today comparing debt management to debt settlement services.   The debt relief company notes that debt management is great for consumers who are still concerned about their credit scores.  They recommend debt settlement solutions to consumers who are looking for a service that renegotiates their balances owed so they actuallly pay less than owed to their creditors.  Read the original article > Debt Management Versus Debt Settlement

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 www.naag.org.

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

Democrats Pushing Debt Settlement Bill

Author: admin - Categories: Consumer Debt News, Credit Card Debt Articles, Debt Relief Tips, Debt Settlement News - Tags:

Last week, Democrat Senators Chuck Schumer, D-N.Y. and Claire McCaskill, D-Mo., introduced the “Debt Settlement Consumer Protection Act.” This debt relief bill would limit the fees that a debt settlement company would be able to charge a consumer for debt settlement services. If passed, the new law would mandate written disclosures before debt reduction services were performed and include a provision for the right to cancel for a full refund. These new laws are intended to impact debt service like subprime loans have been impacted by the Dodd-Frank Bill.

According to a press release from the Council of Better Business Bureaus, BBBs across the nation have received more than 3,500 complaints about debt settlement companies since the beginning of the recession in 2007.  Many consumers complained that the debt settlement programs did not work.  Some people even accused the debt settlement companies of increasing their debt.  Credit card debt settlement can leave consumers liable for a lawsuit from a credit card company, in addition to having wages garnished.

A number of consumers who quit the program say they were not refunded for payments they had made.  The debt settlement bill comes after a hearing last week during which the U.S. Government Accountability Office testified about the results of a covert investigation into the debt settlement industry’s practices. It found that most companies it mystery shopped charged an upfront fee before any services were performed, and nearly all of them told the undercover callers to stop paying their creditors. In some cases, a consumer’s payments into the program would go entirely toward fees for up to four months.  Certainly debt settlement can be a successful financial tool for consumers to get out of debt, but it should be a last resort. The FTC explains the pros and cons of various debt relief options in this fact sheet, “Knee Deep in Debt.”

The Better Business Bureau warns of the following red flags for unscrupulous debt settlement companies:  High upfront fees.

  • Guarantees of debt reduction by specific amounts.
  • Claims that the process will be swift or easy.

The original article was written by Leslie McFadden for Bankrate.com

Is Debt Settlement the Best Option For You?

Author: admin - Categories: Credit Card Debt Articles, Debt Relief Tips, Debt Settlement News, Featured Debt Articles, debt relief

Like take a loan out to consolidate debt, debt settlement is not something you want to just jump into.  Consider your debt relief solutions and tax implications before signing an agreement with a debt settlement company.

1. First, determine how much debt you have(specifically unsecured debt no including student loans) Request a copy of your credit report from one of the main credit reporting agencies. You could view your credit report with a credit repository company like Trans Union, Experian or Equifax.

2. Have you spoken to a debt settlement company about qualifying?  In most cases, debt settlement companies only work with people who owe more than $7,500. There may be other requirements as well. Read through the information provided by the debt settlement company. Make sure you meet all the requirements.

3. Determine if you have the money for debt settlement. Subtract from your monthly income your normal living expenses, including housing, transportation, utilities, food, and insurance. If you have money left over, then debt settlement may be right for you. If you don’t, you should not try credit card debt settlement.

4. Search for a debt settlement company. Don’t sign with the first company you find. Instead, read through what services they provide and what they expect from you. Look for debt relief companies that have been in business for a while. Make sure the debt settlement companies you are working with have been approved by the Better Business Bureau.

5. Decide if debt settlement is the best option for you. With debt settlement, you can reduce the total amount you owe and improve the relationship between you and your creditors. Also, you can pay your debt quicker as long as you remain faithful to the credit card settlement offer.

Debt settlement can also incur potential tax problems, and may hurt your credit rating. It may encourage your creditors to initiate law suits against you. Also, it could increase the frequency of calls to you by your creditors.  Read more at http://www.ehow.com/how_2002294_compare-consolidation-settlement.html

April 5, 2010

Debt Settlement Nationwide Rolls Out New Debt Relief Program

Author: admin - Categories: Credit Card Debt Articles, Credit Market Updates, Debt Relief Tips, Debt Settlement News, Featured Debt Articles, Featured Debt Relief Companies, debt relief

The California debt relief company, Debt Settlement Nationwide announced a new debt relief initiative to help consumers find the path to debt freedom.  With so many consumers getting behind on credit card bills,  a better solution for debt relief is in demand.  Debt Settlement Nationwide  announced that their debt reduction option to help people get back on their feet their financially.  With bankruptcy laws and lending tightening considerably, consumers look to debt settlement to take the pressure off of the high rate burdens that go hand in hand with unsecured debt.  See the original blog post online > New Debt Relief Programs

Debt Relief Leads in Demand

Author: admin - Categories: Debt Leads, Debt Relief Tips, Debt Settlement News, Featured Debt Articles, debt relief

Bankruptcy and debt settlement have become two popular debt relief choices for consumers seeking help, so many finance companies are searching for debt leads online.    Now that home values have been devastated, homeowners no longer have the ability to take out a no equity debt consolidation loan.

Debt settlement has become the preferred solution for consumers that want to eliminate their credit card debt.  Debt settlement leads are in high demand because millions of people are looking for debt relief  online.   The Mortgage Lead Vault has many popular lead buying programs to for companies seeking mortgage, foreclosure prevention and debt relief leads.   Read the original article online > Debt Leads Rise in Popularity.

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.