Credit Card Debt Consolidation – Be Careful!

Sun, 16 May 2010 18:16:58 +0000

Phil Tirone, on his “The Bankruptcy Facts” blog http://thebankruptcyfacts.com/blog/debt-consolidation-companies/, gives some good insight into debt consolidation loans:

1. Some loans require collateral. Others charge sky-high fees but do not disclose these terms explicitly. Read everything—including the fine print—before signing a contract.

2. Some companies may call themselves nonprofits, but do not expect that a nonprofit is the best debt consolidation company. In fact, sometimes these nonprofits have less integrity than their for-profit counterparts. A nonprofit cannot make a profit, but it can pay salaries and bonuses to its employees. And sometimes, these nonprofits exist simply to give their workers an easy paycheck.

3. Never hire a company that does not offer in writing a guarantee to pay your minimum balances on time.

4. Verify the company’s certifications with third-party registrations.

5. Always ask for references.

6. Know the next steps. If you are unclear about what will happen next, don’t sign anything.

There are many issues to consider here. Will the interest be deductible? Will the unsecured debt become secured when that might not be a good idea?

Find out more. Check out the articles on this site under Credit Card Debt Settlement

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Settlement Credit Card Debt – Myth Or Real Solution?

Sat, 27 Feb 2010 03:59:11 +0000

- Myth Or Real Solution?

Experienced credit card debt negotiators will tell you that they deal with individuals who suffer from chronic stress almost every day. Chronic stress shows itself in a number of ways as physical symptoms, severe headache, churning stomach, sleeplessness, and even chest pain.

Settlement, credit card debt, is it feasible? Or is it really a myth circulated by scam debt settlement companies?

It is possible to settle credit card debt.

The financial reporting requirements for financial institutions and credit card companies require them to write off the defaulted debt which is an unsecured loan in 180 days. Now that does not mean that you do not owe the debt any longer. It simply means that the debt is now worthless on the books of the credit card company. That result does give opportunities for you to pay off debt at less than the full amount you owe.

If the debt is not collected in 180 days, most companies sell the debt for pennies on the dollar. When the sale occurs depends on the company. Some try to collect the debt themselves for up to a year and others sell the debt immediately. Experience tells one which company does what.

Once the debt goes to collection usually after three months, contact with the debtor accelerates. The contact can be demand letters, phone calls, etc. Some collectors even lie and tell the debtor that they are sending someone to do an asset investigation and that the debtor is required to produce documents. The range in collectors is very broad and unfortunately there are a few bad apples whose tactics are questionable, if not illegal.

Creditor calls come at any time of day if uncontrolled. Calls can be at home at early morning or during the evening or even on Saturday. Creditors even use automated calling systems to get an answer and then come on the line while the system is looking for another debtor.

What do you do? You can actually restrict contact by a letter to a creditor instructing the creditor not to call or contact you. There is specific language that should be used in the notice.

By restricting access, the stress of the collection process can be significantly reduced.

If you cannot deal with the pressure get someone in between you and the creditor, an experienced debt negotiator. By proper notice, all contact with the creditor will flow through the negotiator who will seek to settle credit card debt

Settlements depend on the company involved. Credit card debt settlement can range anywhere from 25 to 70% of the amount owed, if lump sum.

If you cannot do a lump sum, the settlement will need to be a higher amount.

Alternatively, you may not be in a position to pay even a percentage of the debt and you may need to consider credit card debt bankruptcy. The best advice is for you to seek out a good bankruptcy attorney and get advice on your particular situation.

You can learn more about settlement credit card debt and get a free report at Settlement Credit Card Debt

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

James Montgomery » credit card debt loan

Credit Card Debt Consolidation – Be Careful!

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