Debt Relief News

Debt Lead Company offers & saving tips for debt settlement, consolidation, credit repair
October 29, 2012

Getting Help with Debt While Avoiding Settlement Scams

Author: admin - Categories: Consumer Debt News, Published Debt Relief Articles, Uncategorized
Steve Rhode published a very helpful article in the Huffington Post earlier this month. He offers advice on how to best manage your debt without getting scammed in the process. Selecting the right debt-relief option and debt-relief provider for you is going to be one of the most important things you do in your life. You owe it to yourself to spend some time and follow this guide, step-by-step.

Step 1: Homework- To make sure you are first armed with a general understanding of all of your debt-relief options I’d suggest you first read “How to Get Out of Debt: The Honest and Unvarnished Truth” and “The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy.”
Step 2: Check Out All Options- Use the free How to Get Out of Debt Calculator to review your options. The calculator will give you a rough idea of the pros and cons of each major solution.
Step 3: Tip Toe Contacts- Start contacting a few debt-relief companies that provide the solution you believe is right for you based on what you learned above. Talk to at least three.

Read the original Huffington Post Article.

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.

Comparing Consolidation Loans to Debt Settlement

Author: admin - Categories: Debt Consolidation, Debt Settlement News, Published Debt Relief Articles

Consumers have seen significant debt relief solutions over the last few years.  In the past homeowners had a serious edge in consolidating credit card debt, because they could take out a fixed rate home equity mortgage to eliminate high interest variable rate credit cards.  Traditionally home equity rates have been affordable and lenders were pretty aggressive with second mortgage programs if borrowers were getting the loan for the purposes of consolidating debt.

Debt Settlement

  1. Don’t need to own a home
  2. No Equity Required
  3. Could Harm Credit
  4. Settle for 30 50%
  5. Settlement 12- 36 months
Secured Debt Consolidation

  1. Must own a home
  2. Must Have Equity in Home
  3. Beneficial to Credit
  4. Pay back 100% of debt + interest.
  5. Consolidation 10 to 30 years

A few years ago, debt settlement programs become available to homeowners and non-homeowners alike.  Now people who had been burdened with credit card debt had another solution besides bankruptcy or a bad credit debt consolidation loan.  Nationwide Lender posted a good article recently Comparing Credit Card Debt Settlement to Debt Consolidation Mortgage.  Importantly, the company reminded us that managing your debt is a critical financial decision.  Today, there are more debt relief solutions forever for disposing credit card debt and securing a fresh start.

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

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.

August 31, 2009

New Consumer Protection Laws to Reform Debt Settlement Loan Modification and Mortgage Industries

Author: admin - Categories: Consumer Debt News, Credit Card Debt Articles, Debt Settlement News, Foreclosure Prevention, Predatory Lending, Published Debt Relief Articles

In an effort to curb fraud and eliminate scams, State and Federal regulators are moving swiftly to reform the mortgage, debt relief and loan modification industries.  As the Mortgage Reform and Anti-Predatory Lending Act continue to make their way through Congress, it is clear this potential mortgage lending and settlement legislation could be just the beginning of an onslaught of future regulatory reform lawmakers will use to help protect consumers even more aggressively. The bill would fundamentally change the home lending market, placing tighter restrictions on nonprime mortgage lending. Perhaps more importantly, it would require mortgage lenders to establish what the bill calls a “duty of care” in proving borrowers could repay a loan and that mortgage refinancing gave them a net tangible benefit.

At the same time, banking and mortgage industry regulators are feeling much more empowered under the Obama administration than they were during the previous one. More stringent regulatory exams, a rising number of enforcement actions and the growing number of financial institution closings during the first quarter of this year are evidence of this fact.

These new rules are very different from those of previous years that required a simple update to a loan document or disclosure. Instead, these changes will demand mortgage lenders change the way they do business, revising and improving operational and compliance risk management processes entirely.  The myriad of federal and state anti-predatory lending laws are one subset of consumer-focused regulatory requirements lenders must comply with, but they present some of the most confusing and complex compliance changes facing mortgage relief companies and lenders.

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.

Credit Card Debt Charge Offs Rise

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

A recent article released new info that charged off credit card debt in the U.S. continues to rise for credit card companies like Capital One.  Most analysts believe that the credit crunch will continue as home foreclosures, delinquencies, charge-offs and debt settlement cases keep rising. Finance giant, Capital One reported that they charged off $524.9 million in U.S. credit card debt in July, which is equal to an annualized net charge off rate of 9.83%, the highest charge-off rate of the year. It is also up from June’s rate of 9.73%. Read the complete credit card news post >Credit Crunch and Tightened Home Financing

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 Bills.com 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 http://www.emediawire.com/releases/debt/credit/prweb2493574.htm

Debt Settlement is Hip

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

Debt negotiations have become the hip choice for savvy consumers looking to rid their lives of adjustable rate credit card debt. In a recent article, Hector Milla offers suggestions for debt management. He recommends choosing a debt settlement company that has experience negotiating with the finance companies that hold the notes on credit card debt. In the article he reminds us about the pressure that comes with high cost variable rate credit card debt that can get out of hand almost over-night.

When financial obligations begin to mount and it looks like you have no options for becoming debt free, consider debt settlement if you do not qualify for bill consolidation or a second mortgage. A debt settlement company can assist you in improving your financial state by managing and renegotiating outstanding credit card debt. Debt Relief News provides the industry tips and legislation that affects credit, debt, bill collection and bankruptcy laws. > Read original debt negotiations article online.

March 9, 2009

Better Business Bureau Talks Bill Consolidation, Debt Negotiation and Debt Elimination Programs

Author: admin - Categories: Consumer Debt News, Published Debt Relief Articles - Tags: , ,

Consumers continue to get hammered by debt settlement and loan modification offers from lending companies to help get them out of debt.  When times are tough, these financial offers look appealing, but are they really the best for you?

Consider offers of debt negotiation, debt settlement, and debt elimination are three different options available to most consumers. The Better Business Bureau advises consumers to ensure they understand these critical differences before enlisting the help of a company to manage their debt or they could end up making their current financial situation worse.

The unemployment rate in the United States rose from 7.2 to 7.6 % in January according to the U.S. Department of Labor and more families are struggling to make ends meet. While the unemployment rate continues to rise, so do complaints filed with BBB against companies that claim to help consumers manage their debt. In fact complaints against debt consolidation and negotiation companies rose by almost 19 % in 2008 over the previous year.

“Consumers are bombarded every day with ads and e-mails offering services to manage or reduce debt and it’s hard to know which offer will work for them, let alone if the company can be trusted,” said Kathy Barrett, President. “Families in debt may think their situation can’t get any worse, but trusting the services of some debt negotiation, consolidation or elimination firms can actually lead to increased debt and bigger headaches.” Article was submitted by Tammy Dankovich.

Debt Negotiations Myths

Author: admin - Categories: Credit Market Updates, Published Debt Relief Articles

Debt Settlement Buzz reported in an article that the US unemployment rate jumped from 7.2 to 7.6 % in January according to the U.S. Department of Labor and more consumers continue to fight to pay their minimum mortgage and credit card payments. And on the drive to work, I noticed the radio station kept playing a classic debt relief commercial and then I found this blog post- “I heard an ad that asked listeners if they knew they had a right to settle with credit companies that finance unsecured credit lines and consumer charge cards for a fraction of what they owed. Read the article > Debt Negotiation Myths

Mortgage Modification Affect Credit Reports

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

Maintaing affordable home loans with mortgage modification plans remains a cornerstone of the Obama administration’s housing relief programs for distressed homeowners. Obama’s mortgage relief team allocated $75 billion for an initiative that would reward loan servicing companies for reducing mortgage payments for five years, after which they would rise to today’s current mortgage interest rates which,  remain in the glorious 5% range.  How long will that last? Nobody really knows…

By now, most homeowners understand that a foreclosure judgment is a “significant ding” that will reflect in the credit score and perception of manual underwriting for many years to come. Being delinquent on your home mortgage payments is a serious issue, but if you or your loss mitigation company are already negotiating with your lender, it certainly doesn’t hurt to attempt to get the lender to remove the delinquencies. It’s amazing how powerful a letter from the creditor says that they “made an error in reporting.” But several readers recently wrote to Lisa Sitkin, in an effort to get clarification on the impact of loan modification and the long standing credit implications. If the lender doesn’t agree, consider credit repair.

Borrowers should also request that prior past-due derogatory comments on the credit reports be changed to reflect new current status after the mortgage loan modification. Read more at Credit Hit from Wave of Loan Modifications?

February 9, 2009

Rebuilding Your Credit

Author: admin - Categories: Consumer Debt News, Credit Market Updates, Published Debt Relief Articles

Millions of Americans continue to struggle with high rate debt and liabilities they can no longer afford.  Bad credit happens when average men and women fall behind on their credit card bills and other debt payments because of unemployment, lack of employment, or the unavoidable challenges of life.  If you have gotten yourself in this state of affairs, it is a good idea to take command of the situation rather than letting your bad credit to get worse. In this article you’ll learn the most to the point method of regaining control over your bad credit and on the road to zero debt.

1.    Get Your Equifax, Experian and/or Transunion Report. Some balance carriers are merely a few billing cycles behind on their credit card bills due to financial hardships, and they may have forgotten about several unpaid bills that are bringing their fico score south. A few of us have gotten ourselves so far back in credit card bill payments that we have lost track of what is due!

Dont Get Trapped by Debt

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

The number one thing that credit card companies know way in advance that we consumers don’t always realize is that life happens. Unexpected bills arise, cars need to get fixedand medical and dental procedures have to be performed. In many of these situations, consumers have found themselves so deep in financial distress that their automatic answer to unforeseen costs is to start swiping. And so continues the saga of American consumers who are trapped by excessive credit card bills and savvy credit card companies that make money off of the desperation and unawareness of consumers.

If you have found yourself in a situation where you have fallen victim to some of these traps and have accumulated a significant amount debt due to life happening, it’s important that you know there is hope, and yes there is a solution to your debt problem. Debt relief programs like the one you’ll find at NetDebt.com have helped thousands of consumers break out of their “debt trances.”

“Recent Changes in U.S. Family Finances: Evidence from the 2001 and 2004 Survey of Consumer Finances.” Federal Reserve Bulletin 2006.  Read the complete debt article >

January 28, 2009

Do We Need a Credit Card These Days

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

Wondered why do we ever need credit cards? To your surprise, you actually need to have a credit card these days.  But you do NOT need credit card debt. As Suze Orman explains, Credit card debt continues to rise, but we live in a credit era that is automated and not having a credit card will limit some your opportunities.  If you have over $10,000 in credit card debt consider a debt consolidation loan or debt settlement.

January 20, 2009

What the Credit Card Companies Know That Keeps Them in Business

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

It’s no coincidence that according to the Federal Reserve’s latest survey 46.2% of American families are holding credit card debt and are now in search of debt relief. Credit card companies have made a multi-billion dollar industry out of knowing how consumers think and by predicting the average consumer’s habits.

Here are a few things that banks know that credit card consumers are sometimes in the dark about:

- Possibilities for Problems in the Economy. Many credit card companies have entire teams dedicated to researching the economy and predicting possible economic issues that would cause consumers to use their credit cards more frequently. It is no coincidence that at a time when many people believe that the American economy has hit a recession due to increases in the price of oil, food, and other everyday necessities, the credit card industry is banking more and more interest due to an increase in the daily use of credit cards.

- 0% APR Offers Lure You to Spend More, Thus Owe More. A few years back, credit card companies began sending out numerous 0% APR offers to convince credit card holders at other banks to transfer their balances. While many people took advantage of these 0% offers to save money and pay off debt, they may not have taken into account the fact that by helping to free up money on their credit card accounts, these credit card companies were actually creating somewhat of a trap. If a consumer who is trying to pay off credit cards decides to use the new 0% APR credit card after a certain period of time (even if the 0% balance transfer APR is in effect for the life of the debt), the interest rate on that new purchase balance can shoot up to 18% or more, and is paid off last. That means that 10, 15, or 30 years down the line when the 0% balance is finally paid off, the amount you purchased on the card at 18% has been accruing in interest for all of that time as well. You may find yourself in the same boat as before!

- “Rewarding” You With a Higher Credit Limit Keeps You Hooked. Credit card companies frequently “reward” good customers who pay their bill in full faithfully every month by increasing their credit card limits. But in actuality, they know that as long as your limit continues to rise, you are likely to use the card even more. At some point in that pattern of behavior, you will reach a peak where the credit card company will no longer raise the limit and is profiting from the higher finance charges on your credit card bills. It’s all about predicting the consumer’s behavior.

- Your Past History Predicts the Future. Another bit of invaluable knowledge that credit card companies benefit from is your full credit card history. They have a detailed history of your past purchasing habits, balances, and what you have done in certain situations that have arisen in your financial history. What you have done in the past is a good predictor of your future actions. For example, maybe you started a business and used your credit card to purchase $1,000 in business equipment one month. Now your creditor knows that you are more likely to use your card for both personal and business purposes. In another example, if a creditor sees that you have a penchant for expensive designer clothing, they will not only assume that you will purchase more in the future, but also send you special offers in the mail for designer clothing from its advertising partners.

- Consumers Don’t Always Read the Fine Print. Creditors also bet on the belief that most credit card consumers are too lazy to read the fine print of their credit card bills and agreements. If a credit card customer continues to pay the minimum payment, not knowing what the APR is, and not knowing how payments are applied, they can become trapped in a long cycle where they will pay off credit cards for an extended period of time. Meanwhile, the creditor will continue to reap the benefits of the consumer’s lack of knowledge for a long time to come. Read the entire debt article.

January 14, 2009

Fed Chief Requests Credit Market Stimulation

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

In a recent article, Jason Cardiff discusses the impact of bad debts and defaulting mortgage securities being bought by the Federal Reserve and the US Treasury. He offered options to deal with bad credit mortgages and other poor performing assets held by financial institutions.  In addition, Bernanke suggested the government increase their intervention to slow down the foreclosure crisis as the housing market continues to sour.

The Federal Reserve chairman, Ben Bernanke talks about that the $800 billion recovery plan, a combination of tax cuts and increased government spending is now being massaged by the Obama team and the Democrat-controlled Congress could provide a “significant boost” to the floundering economy. He did however; reiterate that such a plan must be part of a broader, multi-pronged government response to fight the worst financial and housing crisis the hit the U.S. and the global economy since the Great Depression in the 1930s.  “Fiscal policy can stimulate economic activity, but a sustained recovery will also require a comprehensive plan to stabilize the financial system and restore normal flows of credit,” Bernanke said.

To help on that front, the Federal Reserve has agreed to lend billions to credit card finance and mortgage companies and purchasing some of these companies’ debt to rebuild the credit markets. The US Treasury Department is overseeing a $700 financial bailout program that has pledged to inject $250 billion into banks in return for partial government ownership.   Bernanke said “more capital injections and guarantees may become necessary” to stabilize financial systems markets while stimulating credit markets that should increase consumer lending. Visit Jason Cardiff Tips online for financing newsletters, real estate articles and debt relief reports at no cost. Read the original article > Fed Chief Says Obama Stimulus Could Revive Economy and Housing Markets.

In a recent CNN program, Lou Dobbs says, “I Told U So” to Secretary Paulson.

Dobbs reminds viewers that he warned the Treasury Secretary a year ago not to buy the toxic assets like defaulting mortgages and abandoned credit debt from these type of investors.

December 11, 2008

TASC Releases3rd-Party Debt-Settlement Customer Survey Results

Author: admin - Categories: Consumer Debt News, Published Debt Relief Articles - Tags:

The Association of Settlement Companies (TASC), a non-profit organization that promotes fair business practices, consumer protection and high industry standards for the debt-settlement industry, served as a featured presenter at the Federal Trade Commission’s workshop examining the debt-settlement industry on Sept. 25, 2008, in Washington D.C.

At the workshop, Wesley Young, the panelist representing TASC, discussed consumer protection challenges for debt settlement. Alongside four fellow panelists, Young fielded questions and engaged in discussions led by an FTC moderator. The panel also analyzed a mock advertisement to discuss ethical advertising to consumers by debt-settlement companies.

“The FTC workshop facilitated collaboration between the debt-settlement industry, creditors, legislators, and consumer protection groups,” said Young, TASC executive board member and legislative director, and general counsel for Debt Settlement America. “TASC plans to continue to work alongside these groups to help consumers distinguish reputable debt-settlement companies from the bad apples in the industry. TASC supports debt settlement as a positive, viable bankruptcy alternative for indebted consumers to consider as a debt-relief option.”

During his opening statement at the FTC workshop, Young shared results of a survey commissioned by TASC member company Nationwide Support Services, headquartered in Irvine, Calif. The survey, conducted by a third-party company, was targeted at approximately 1,500 customers who had completed debt settlement programs administered by Nationwide Support Services. Approximately 10 % of those consumers responded.

The survey concluded the following feedback from past debt settlement customers:

– 91 % would recommend debt settlement as a debt-relief solution

– 80 % described their overall experience with debt settlement as “excellent” or “good”

– 75 % were not interested in purchasing a guaranteed credit card in the future

– 51 % saved between $10,000 and $40,000 on the original amount of debt they owed

– 47 % were able to complete the program and pay off their debts within 13 to 24 months

“TASC found these results very encouraging and helpful to share as an example of the benefits of debt settlement to consumers and the impact of implementing TASC’s best practices in operating a debt-settlement company,” Young said. Nationwide Support Services expects to continue to survey customers for the next two years, also studying the effects on participants’ credit scores, spending habits and personal-finance behaviors after completion of a debt-settlement program.

Today, TASC’s 171 members include debt-settlement companies, industry vendors and law firms. TASC protects the rights of consumers through member certification programs and consumer education on debt settlement to provide consumers confidence in partnering with its members. TASC expects the FTC to develop a summary of its findings from the workshop within the next few months.

About TASC Member Nationwide Support Services

Nationwide Support Services (NWSS) is one of the oldest and largest debt settlement processing companies. It provides debt negotiation and customer support to independent sales offices throughout the United States. Additional information can be found at www.nationwidesupportservices.com.

About The Association of Settlement Companies (TASC)

The Association of Settlement Companies (TASC) promotes fair business practices, consumer protection and industry standards for the debt settlement industry. TASC, founded in 2005, serves to protect consumers through an organization seal that represents best practices and standards of reputable companies. The organization also protects its member companies through lobbying efforts at the state and national levels, as well as awareness initiatives to educate consumers on debt settlement as a financial solution. All TASC member companies pledge compliance to strict association bylaws governing business practices and ethics. For more information, visit http://www.tascsite.org. SOURCE: The Association of Settlement Companies

December 10, 2008

Debt Settlement, Loan Relief and the Foreclosure Crisis

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

Consumer debt continues to climb each year. Clearly, Americans have a problem spending more money than they have. Debt to income ratios have been increasing significantly with consumers as incomes are declining while outstanding balances increase at a rapid pace.

Over the last ten years, homeowners have been able to take out home equity loans and consolidate their credit card debts into a lower more responsible fixed rate payment that they could afford. Back then home values rose annually, so borrowers could refinance their spending problems every few years. When the subprime mortgage debacle turned into a credit crunch, mortgage lenders quickly tightened their loan guidelines. Almost simultaneously, home values began to decline and homeowners were no longer able to refinance and consolidate their debt. People began losing their houses because they were defaulting on their mortgages.

Unfortunately a foreclosure crisis arose and banks began to fail because with increased foreclosures came a serious liquidity problem that significantly limited banks to lend to each other. Even when the Federal Reserve cut interest rate many times, the credit crunch got worse.

Now Americans find themselves with high rate credit card debt and mortgages that are larger than their homes are actually worth. Homeowners aren’t able to refinance for lower payments, debt consolidation or cash out. With home equity loans disappearing, debt settlement has increased dramatically because it’s legal and gives consumers a true alternative to bankruptcy. Debt settlement provides debt relief because the debt negotiation companies are able to reduce your balances and pay-off your revolving debt that carries the compounding interest.

Watch The Office’s Michael Scott declare bankruptcy!

Another mortgage refinancing alternative that has risen in popularity with homeowners has been loan modifications. Mortgage loan modifications are the result of banks restructuring loans for borrowers so they can avoid a foreclosure. The liquidity of banks has eroded in the foreclosure epidemic and now delinquent homeowners seem to have more leverage, because mortgage lenders don’t want your home anymore.

Bryan Dornan is a home financing expert who has published many financial articles online. Mr. Dornan operates several companies like Lead Planet, Loan Modification Outlet and Nationwide Marketing. Dornan recommends doing your homework before making financial decisions like taking out new loans, filing for bankruptcy or seeking debt counseling. He suggests visiting the following debt relief websites: debt settlement, Mortgage Loan Relief and Loan Modification.

Article Source: http://EzineArticles.com/?expert=Bryan_Dornan