Received Summons! Kinda Freaked Out!

If it's not bad enough having too many debts and bills, receiving a SUMMONS is especially stressful!

One of our clients sent me an email this morning and said...

"I received this subpoena last night.  Kind of freaking out.  What do I do!"

woman_on_floor_with_all_her_bills

We've been helping people deal with the stress of having to much debt and just not enough money to keep up for many years.

 

I've written many blogs about what to do with or how to prevent a summons, but wanted to give some insight that may help.

 

WHY DID YOU RECEIVE THE SUMMONS?

When you miss payments due on your accounts (I'm only talking about unsecured accounts like credit cards, medical bills, etc.) the original creditor will start calling and sending letters.

They may offer a few options for getting you "back on track", but for most people, these don't help or are possible due to your circumstances.

Trying to explain to the agent is usually a waste of time, so I don't advise trying.

If you do, just say something like...

"I've had some things happen and can't make payments right now.  I intend to get caught up soon and would appreciate it if you'd stop calling."

After a few months, most likely your account will be transferred, assigned or even sold to a collection agency.

Now you can at least put a stop to the calls:

STOP Collection Calls Free Sample Letter

 

DEALING WITH DEBT COLLECTORS

There are thousands of companies that make a lot of money collecting bad or old debts!  These companies may take accounts on consignment, in order to earn a portion of the money they recover.

Or, they may have just purchased the account for pennies-on-the-dollar from creditors who have given up on trying to collect and have just written off the debt as a loss.

The debt collector most likely will be open to a SETTLEMENT.  The amount of settlement is determined by many factors, but on the average, a settlement of 50% to 70% (more or less) may be available.

Recent Settlements See what we have  done for our clients!

 

 DON'T IGNORE A SUMMONS !

To many people take the "hide your head in the sand" approach to their financial crisis.  Although I certainly understand and appreciate how they feel, the debt is not going to go away!

If the calls and letters from a debt collector go unanswered or returned, after a few months, the debt may be:

  1. Recalled back to the original creditor
  2. Transferred to another debt collection agency
  3. Sold or transferred to a Law Firm that specializes in Debt Collection

If your account lands with #3, and if they cannot reach you or an agreement or settlement cannot me negotiated, they may decide to FILE A CLAIM.

Once a CLAIM is filed with your local county court, a SUMMONS is prepared and sent out for delivery.

The delivery may be by a COUNTY SHERIFF or COMPANY PAID TO DELIVER the summons.

Either way, receiving a summons is (like my client said), kinda "FREAKS YOU OUT!"

Although a summons (or small claims order) may differ, most of them state something like the one my client received:

     "YOU ARE HEREBY REQUIRED to appear and defend the Complaint filed against you in the above-entitled cause within 30 days from the date of service of this summons on you, and in case of your failure to do so, Plaintiff (creditor or debt collector you owe) will apply to the court for the relief demanded in the Complaint."

Well, it sure sounds like you have to go to court within 30 days, doesn't it!

But, if you kept reading, it would explain.  (I'll paraphrase and explain to save time:)

It says you must "APPEAR".  Notice the word "appear" is in italics.

It then goes on to explain what "appear" means:

It basically says that if you wish to give proof of why you do not owe the CLAIM being made, you have 30 days to provide the court with a legal document called a "motion" or "answer".  You also have to pay the required filing fee ($165 in this particular county court).

The summons goes on to say that if you have questions you should see an attorney immediately and usually gives a phone number for your state's Bar Lawyer Referral Service.

NOW WHAT?

OK, so you have the summons and understand that you don't have to go to court.  What should you do?

The worst thing you can do is ignore the summons!!!!!!!

If you ignore the summons, a JUDGMENT will most likely be awarded to the PLAINTIFF.

If this happens, the attorney for the plaintiff will seek the legal options available to get funds awarded in the judgment.  These include:

  • Wage Garnishment
  • Bank Levy of your bank accounts
  • Placing a lien against your home or other property

I don't have the space here to address each of these, and there are things you may be able to do if you are facing one or more of these due to a judgment.

The important point is....

DON'T LET IT GET TO THIS POINT!!!

In most cases, some kind of agreement or solution can be negotiated before or even after a JUDGMENT has been awarded.

You may have to repay the entire balance due to avoid a garnishment, levy or lien.

This will most likely be a STIPULATED AGREEMENT that will be filed with the court.

This basically will say that as long as you make the required payments specified int he Stipulated Agreement, the Plaintiff will not continue to seek the legal options described above.

Once the Stipulated Agreement is completed, a LETTER OF SATISFACTION will be mailed to the court and the judgment is removed.

Now, I've explain a lot. What's the main points?

You have several options to prevent your account from ever getting to becoming a judgment.

  • You can't ignore the debt.
  • It will not go away!
  • If you receive a summons, don't panic!

If you are overwhelmed, we may be able to help:

FREE  Debt Elimination Summary

 

Photo Credit

 

Tags: stop wage garnishment, summons, debt collector, receive a summons, credit cards, judgment, settlement

Debt Settlement Kept Us Out of Bankruptcy!

 

couple_Help.jpg

Several years ago, my wife and I faced one of the darkest times of our lives.  Although we were in a financial mess, we found a way to work through it.

Hopefully, our story may help someone else. 

Here goes...

I never dreamed that I would ever be in a situation where I could not pay my bills!

With a good job that paid me a better than average income and my wife earning a good salary as well, we were  living the "good life", until.....

Our lives dramatically changed!

I had been working for the same company for about 10 years, was in charge of a large area of the country, and my sales and sales team usually led the company.

This meant that I was getting a nice bonus each year as well as my large salary!

Like I said, "Life was good!"

Although I had heard the rumors about a possible sale of the company to a larger competitor, I was told "Don't worry, even if this happens, you'll be OK".

Right!

One afternoon, my supervisor called me into his office and I could tell that something was up.

After a few minutes of chit-chat, he finally came out with it and let me know that the sale was going to happen, and that the new company was going to terminate my position and replace me and my team with their own people!

I just stood there...in shock, thinking...

 

            "What was I going to do?"

 

Man_stress_over_money.jpg

So, here I was:

 

  • Unemployed (for the first time in my life!)
  • Have a mortgage (nice, large home!)
  • Family (2 kids, ages 8 and 10)
  • A little over 40
  • No real job prospects in a bad economy!

 

I knew I was in trouble and I was starting to panic!

 

 

JOB SEARCH, BILLS, and STRESS

 

I sent out dozens of resumes and went on several interviews, but no luck.

One night, my wife and sat down and completed a "Home Budget Worksheet".

Even though I kinda had an idea of what came in and what went out, I really hadn't ever taken the time to track it carefully. 

After all, we were making great money and really had nothing to worry about.

Boy, was I shocked to see the real numbers!

We found out that we were spending a lot of money on things we really didn't have to have, such as:

  • Starbucks coffee
  • Athletic club membership (that I rarely used)
  • Internet and TV Service that included about 1,000 shows and channels we rarely watched!
  • Going out to dinner a couple of times a week
  • You get the picture...

And then....

The hot water heater stopped working.  

The plumber said that there was nothing he could do to repair it as it was just too old.

With our savings just about gone, I had to use one of my credit cards to buy a new one and pay for the installation.  

Even though the total was about $1,000, it really only increased my minimum monthly payment by $25 or so.

And the spriral started...

With no one willing to hire me at anywhere close to what I was earning before, I finally had to take a job at just a little over minimum wage.  

It was better than nothing, but the final take home pay was just not enough to cover everything.

I was really beginning to stress out!

 

cartoon_about_stress.jpg

 

CREDIT CARDS TO THE RESCUE?

We had no choice but to pay only the absolute essential bills like the mortgage, utilities, groceries, etc. and let the credit card bills, medical bills, and yes, even the car payment get behind. 

I mean, what else could we do?

Sure, there was a little equity in our home, but with our bad credit rating, we wouldn't qualify for a second mortgage or refinance.

Over time, I had to use the cards to make up the shortage we faced each month.

As the total credit card debt was increasing due to late fees and over-the-limit fees, we had to use a CASH ADVANCE once in a while just to pay a utility bill or buy groceries!

The crazy thing was, even though we hadn't made a payment in 3-4 months, and were getting nasty letters from our creditors, we would still get an OFFER from a credit card company for another card or to consolidate all the others with a BALANCE TRANSFER!

We actually had three cards from one company!  Made no sense!

Sure, this "rob Peter to pay Paul" action was holding them off, but we knew that a"day of reckoning was coming!"

 

DECISION TIME!!!

One evening, after the kids were asleep, we sat down at the kitchen table and took a long, honest look at our situation.

There just wasn't enough money to cover all of our expenses and bills.

 

It looked like BANKRUPTCY was our only option.

 

As we discussed this, my wife told me that she had a friend who had gone through a similar financial situation and had prevented choosing bankruptcy by going through a Debt Settlement Program.

I called the company she had used, but after a few minutes talking to the rep on the phone, I just didn't have a good feeling.

It seemed that all he wanted to do was to get us to "sign up" right away and that he really wasn't listening to our particular situation.

 

Tried the DIY method to negotiate settlements

 

I tried to contact the debt collectors myself, but soon learned that they did not care about our situation and were not very sympathetic and usually very rude.

Sure, they were willing to settle the account for a little less than the full balance, but they wanted the money in a lump sum!

I lost my temper and told one guy, " You %%#@*&^%, if I had that kind of money, I wouldn't be in this situation!"  He seemed as if he could care less.

I was angry and embarrassed!

 

CHOOSING THE RIGHT DEBT SETTLEMENT COMPANY

 

After several frustrating attempts like this, I went online and checked out a couple of debt settlement company's Better Business Bureau reports.

There weren't very many that were accredited and had an A+ rating with no complaints!

It was very evident that not all debt settlement companies were the same!

Since they all seemed to offer the same services, we decided to narrow the field by using the following tests....

 

 

After calling a few, we decided to go with a company that seemed to meet the criteria we wanted.

 

THE PROCESS

 

Once we enrolled, the first thing they did was to put a stop to those annoying and basically harassing calls from the collectors!

I can't tell you how great it was to have someone "in our corner" now!

We had stopped sending payments to the creditors (just didn't have the money!)for about the last 3 or 4 months and some of our accounts had already been turned over to a Debt Collector.

We started making monthly deposits (what little we our budget would allow) into an FDIC insured account for future settlements.

This monthly deposit was a little less than half of what the total minimum payments would have been, so this really helped!

 

Over time, the company was able to settle each of our debts!

 

Some of them were settled at less than 50%, saving us a lot of money!

I really appreciated the service we received.  It helped calm us during the whole process.

Well, it took about 4 years to get all of our debts settled (we had enrolled about $40,000 of various unsecured debts), but it was well worth it.

When we had questions or concerns, we were always able to talk to our representative and/or the negotiator.

Not only did we save thousands of dollars through the settlements, our CREDIT SCORES started to improve!

TODAY

Here we are, still in our home, no creditors calling, all of our credit cards have a $0 balance (we actually cut them all up!) and we FEEL GREAT!

Even though we could have, we are very glad we didn't turn to Bankruptcy Protection.

Hope this has been helpful!

 

Debt Settlement is not for everyone, but for us, it worked better than we expected:

FREE  Debt Elimination Summary

 

 

 Photo Credit

 

 

Tags: Credit Score, Bankruptcy, debt collectors, debt free, Best Debt Settlement Companies, credit cards

Debt Settlement...How Does it Work?

Given the right circumstances, a Debt Settlement Program is an option that can give you freedom from debt!  

Here's how a debt settlement program works:

 

Let's face it, credit and credit cards are something most people deal with every day.   

You know how that can go....

You get an offer for a credit card with 0% and fees (for 6 to 12 months at least).  All you have to do is fill out the form and submit.  

bunch_of_credit_cards.jpg

At first, you use the card to buy some items that may be just a little bit too expensive for you you right now, but, with a minimum payment of only $50 or so,why not?

But, you get another offer (or two, or three, or four...) and you figure:

"I can afford a $200 or so each month...Why not?"

I actually took this picture...kinda says it all:

shop_now_pay_later.jpg

Sure, you can afford the total minimum payments due each month of about $200.

But what happens if one of the following happens (as has done with most of my clients):

  • Loss of Employment
  • Divorce
  • Major injury or illness
  • Total Disability
  • Death of Spouse or Partner
  • Too little fixed income after retirement!

Just to name a few!

Pretty soon, you just can't keep up with all the payments due (beside the mortgage or rent, utilities, groceries, etc.)

NOW WHAT DO YOU DO?

When your cannot keep up with the minimum payments, it doesn't take long to realize that you are in trouble!!!  

A lot of people start taking cash advances from one card to make the payments on the others.  This is just putting off the inevitable!

You may be able to take out a second mortgage, but this has dangers as well.  Be very careful here!

Please don't be fooled into getting one of the "PayDay Loans"

These "lender traps" may end up costing you very high interest rates (I've seen them as high as 85%), making it almost impossible to ever repay!

A Debt Settlement Program may be the answer. 

Here's the basics:

If you haven't stopped making of payments to your creditors, rather than continue this process, you will start making a payment (really a deposit) to an account set up for you at an FDIC bank.

Two things will happen:

  • Your account will start to grow, which will allow for negotiations (more later).
  • The creditors and debt collectors will be calling and sending letters.

Yes, your "original" creditor (Visa, Citibank, Home Depot,etc.) can legally call you about your account.  You gave permission (all the fine print) when you signed up.

But, once your accounts are transferred to a debt collector (usually 3-4 months), you can put a stop to the calls.  This will help:

STOP Collection Calls Free Sample Letter

You will also be getting letters from your creditors or debt collectors.

They may offer some kind of "hardship plan" to help you get caught up, but most of these are just a trick to get you to keep paying, and paying, and paying!

Debt Collection companies (and sometimes the original creditor) are usually willing to accept a SETTLEMENT for less than the balance due.

Why would they do that?

The original creditor may just want to clear up old debts and charge off your account as a loss to their over-all profit/loss for tax purposes.

They have figured in how much "loss or breakage" they can accept and still be profitable!

They may have ASSIGNED your account to a debt collector who will get paid a percentage from what they are able to collect from you.

The original creditor may also charge off your account and SELL the account to a debt collector who is also a DEBT BUYER.

There are millions (possibly Billions) of dollars of "debt" bought and sold for literally "pennies-on-the-dollar".

Whether you account was assigned or sold to a debt collector, you can see that they may be open to a settlement. 

Example:

You have a Citibank Card with a balance of $10,000.

It was sold to XYZ Debt Collection Services for $500...that's right..."pennies-the-dollar"!

Do you think they might be open to a settlement of say...$3,000 - $5,000? 

Sure, check this out:

Recent Settlements See what we have  done for our clients!

As time goes by, one-by-one, your accounts are settled and your Credit Report shows a $0 balance!

Does this happen over-night?  

Of course not!  Depending on how much debt you have and your particular financial situation, a Debt Settlement Program may take 4 or 5 years to help you finally become...

DEBT FREE!

But, doesn't that sound great?

A Debt Settlement Program is not the answer for everyone, but may be just what you need!  It's easy to find out:

FREE  Debt Elimination Summary

 

 

Photo Credit

  

Tags: debt collector, credit report and credit score, Best Debt Settlement Companies, credit cards, mimimum payments

What Can a Debt Management Company Really Do For Me?

I'm often asked a question that goes something like this, "What is a Debt Management Company?" or "What can a Debt Management Company do for me?"  So, let me briefly tell you...

Recently, I had to testify in a trial involving one of our past clients.  And, just like I'd seen on TV or at the movies, I was sworn in, sat in the witness box and the attorneys for both the prosecution and defense asked me a few questions.

The first attorney started off by asking, "Mr. Fontaine, what is a Debt Management Company?"

As co-founder and owner of Debt Relief NW, LLC, I've been asked that question hundreds of times.

I had been told to keep my answers brief and to the point if asked to explain, etc.

So I replied...

"Debt Relief NW helps people with severe debt issues find the best solution to deal with their debt."

Short and to the point....yes.  But, there's a lot more to it!

What people really want to know is, "What can a Debt Management Company really do for me?"

credit_denied.jpg

First, it is very important that you only deal with a reputable debt management company that is registered in their state.

As with any profession or business, there are always a few "rotten apples in the barrel".

We have had many clients come to us over the last 15 years or so after they had been taken advantage of by crooked debt management/settlement companies!

Here in Oregon, each debt management company is required to be registered and comply with the statutes governing such companies.

They have some very good insight into looking for a reputable debt management company that you should check out at Debt Management/Managing Your Debt.

In the article, they advise you to make sure the company you are considering is in fact, registered.  To check, click here.

OK, so now that you've done a little homework and made sure that the company your thinking about enrolling with is legit, again, let's see what a debt management company can (and cannot) do for you:

Those who need help with having accumulated too much debt (mainly addressing unsecured debt in this article) have done so because of one or more events that were or are beyond their control, such as:

  • Unemployment
  • Divorce or loss of spouse or partner
  • Serious illness or disability
  • Too little income after retirement!

When this happens, people will use credit cards to help with the intention of "paying them off" when things get better.

But, sometimes, those balances and the corresponding minimum required payments are just too much to handle....NOW WHAT!

We do not believe that "One size fits all" when it comes to dealing with too much debt!

Even though every situation may seem similar, in most cases, there are always several circumstances that have to be taken into consideration BEFORE we can recommend the right solution.

When faces with so much unsecured debt that you cannot (or are starting to fall behind) with the minimum payments required, there are only a few, legitimate options:

  • Credit Counseling Program
  • Debt Settlement Program
  • Bankruptcy

Again, the first step into finding the proper solution to your particular situation is to take the time to find out exactly where you stand in regards to your income/outgo....ie. a monthly household budget!

When someone contacts us for answers, we walk them through a basic budget.  9 times out of 10, they will say something like...

" I had no idea I had this much debt and/or had this little money left over!"

 

Budget Worksheet FREE Download here!

 

Once we/they can see exactly where they are, then we can start to find the best solution.

 

Credit Counseling (or today called Debt Management)

If you have been making the minimum required payments on your credit cards and other unsecured accounts, but the balances are barely coming down, then it may be time for you to enroll in a credit (or debt management) counseling program.

These accounts have not been turned over to a debt collection company....yet.

If you qualify (there are several hoops to jump through), this type of program can help.

The Debt Management Company will contact each creditor and arranged a plan to get your accounts paid off, usually in about 48 months or so.

Most of the major creditors will usually agree to:

  • Lower the interest rate
  • Forgive or eliminate late fees and other charges

You will make ONE PAYMENT to the Debt Management Company and it will be divided and paid out to each creditor per the agreement.

The problem with such plans is that sometimes the total monthly payment required may be the same or in some cases, a little more than the total of the current minimum payments!

If you are having trouble making the minimum payments now, most likely you will not be a candidate for a Credit Counseling/Debt Management Program.

 

NOW WHAT?

 

A Debt Settlement Program may be the best solution.

Most prospects for a Debt Settlement Program have missed or stop making payments altogether to their creditors.

Their accounts have been turned over to a Debt Collector (or are about to be) and you have been getting calls and nasty letters.

If an original creditor feels like they will not be able to get you to keep up/catch up with the payments due on your account, they may charge that account off as a loss and sell or transfer that account to a debt collector.

Again, depending on your circumstances and particular situation, you may be a candidate for a SETTLEMENT on your account.

 

  • You will be making a monthly payment into an FDIC Bank account that will be used to negotiate settlements in the future. 
  • This payment will be much less than the total minimum required payments due now.
  • Your payment will fit into your particular budget.

The debt collection company (or in some case the original creditor) may be willing to take less than the full amount to "settle" this debt.  This could be 50% or less, again, depending on circumstances.

Here's an idea of what an actual settlement agreement looks like:

Recent Settlements See what we have  done for our clients!

Once the account has been settled, it will be reported to the major credit reporting agencies as:

  • "settled as agreed", or
  • "settled for less than the balance", or
  • "settled in full"

Either way, your account will now show that you did something about it and now it has a $0 balance!

As each of your accounts are settled, your credit score will start to improve/increase.

 

But, what is the only option if you simply have too little or nothing to contribute towards either program?

 

Bankruptcy

Bankruptcy, in my opinion, should be the last solution after all other solutions are examined and/or tried.

When I am negotiating with a debt collector for one of my clients, I will have to remind them that we are attempting to negotiate settlements rather that having our client seek BANKRUPTCY PROTECTION.

That is what the bankruptcy laws were intended to do...protect a person's property from absolute ruin and detestation!

We do everything we can to help a client with finding the best solution/program to help with their debt problems, but in some cases, bankruptcy is the best solution.

Make sure you interview at least a couple of bankruptcy attorneys to make sure you feel comfortable with them and their experience.

 

FINALLY...  What can a Debt Management Company do for you?

 

  • Help eliminate the fear and stress that comes with having too much debt!
  • Help find the best solution to fit your particular situation.
  • Help get you back to being DEBT FREE once again!

 

FREE  Debt Elimination Summary

 

 

 

Photo Credit

 

 

Tags: debt settlement, debt, credit counseling, debt management, credit cards

What Can You Do to Improve Your Credit Score?

You have several options for improving your credit score. 

Take a few minutes to see what you can do!

It seems like everywhere you turn you see an ad about your credit score. 

Some of don't just offer to get your credit score (for Free or small monthly fee), but also may claim to be able to improve your credit score dramatically in a short period of time.

credit_denied.jpg

Although there are several companies that will provide you with a Free Credit Report, did you know that we all can get a FREE CREDIT REPORT annually?

So, you don't have to go through a third party company or pay for this service if you don't want to.

But let's say that you already have your credit report and not only is your credit score a little lower than you thought it was, you also see some errors on what is being reported.

What can you do to improve your credit score?

Before we get started, you must understand that a credit report is nothing more than a snapshot of you credit history at a particular point in time.

Lenders rely on the information contained in a credit report to determine if and how much money they are willing to loan you.

I wrote an article/blog recently addressing the concept of "Pay for Deletion" on a credit report.  Basically, you offer a creditor or debt collector a sizable settlement to not only settle the account for less than the balance, but also to delete the account from your credit report.

I'm not going to get into that here, but if you'd like more information, click on my blog link above.

There are several factors that go into calculating our credit scores:

Payment History, which accounts for about 35% of your credit score.

The first thing any lender wants to know is whether you've paid past credit accounts on time or are late or just have not made any payments in a long time!  Your payment history is very important!

How much Credit are you paying on now?

Just because you have credit accounts now doesn't necessarily mean that you cannot get more credit.  But, if you have $25,000 of available credit and have used up $20,000 on various credit accounts, you are using 80% of your available credit now and may not be able to get more.

How long have you been using credit?

To a lender, the longer you have been using credit, and more importantly, how you have handled your credit in the past, gives them a pretty good idea of how you are going to handle the credit you are applying for now.

What type of credit are you using?

Your credit score takes into account the various "loans" you have, such as:

  • Mortgage
  • Auto
  • Student
  • Revolving, etc.

New credit, or actually, too much new credit, may hurt you credit score.

Beware of opening and/or applying for too many new credit accounts in a short period of time!

Many people believe that opening several credit accounts (store cards, credit cards, etc.) will help them get better scores.  Actually, this is a negative!

If you have a couple or even a few cards or accounts, don't try to get too many more in short period of time.

OK, so you check out your credit report and are disappointed with the score and see errors as well.

Each of the 3 major credit reporting bureaus allow you to DISPUTE legitimate errors on your credit report. 

Items such as:

  • An account showing a balance that you paid off a long time ago.
  • An account that was in collections that you paid off or settled but there is still a balance showing.
  • An account with a balance that you have not (or been unable to make any payments on) for longer than your state's Statue of Limitations for collection of credit accounts.
  • A judgment that you had paid off or settled.

Although creditors and debt collectors are supposed to report that an account has been paid off, settled or satisfied to the 3 major credit bureaus as well as to the court where the judgment had been recorded, many time they do not follow through!

First, you MUST HAVE PROOF that shows that there is an error and you are requesting that it be corrected.

I know that there are many so-called "debt repair" companies that claim to be able to remove negative information and improve your credit score dramatically.

BE VERY CAREFUL OF THESE TYPES OF CLAIMS!

The Federal Trade Commission has some great information for consumers!  They have an article entitled, "Credit Repair: How to Help Yourself", where it states:

You see the ads in newspapers, on TV, and online. You hear them on the radio. You get fliers in the mail, email messages, and maybe even calls offering credit repair services. They all make the same claims:

“Credit problems? No problem!”

“We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”

“We can erase your bad credit — 100% guaranteed.”

“Create a new credit identity — legally.”

Do yourself a favor and save some money, too. Don’t believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the Federal Trade Commission, the nation’s consumer protection agency, say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.

I agree 100%!

Once you have copies of canceled checks, a statement from the creditor or debt collector show a $0 balance or that the account has been "settled-as-agreed", then you need to turn them into a .pdf document.

In a minute, you are going to go online to open your dispute. (Yes, you can mail or fax your dispute, but I don't recommend it.)

You want to be able to clearly show where the error is by making a copy of the page with the disputed item circled. 

PLEASE DO NOT SEND YOUR ENTIRE CREDIT REPORT!

The credit bureaus deal with thousands of disputes daily and what you want to provide to the agent who is reviewing your dispute is clear, easy to understand documentation that there is an error and they will correct it right away!

So, BEFORE YOU GO ONLINE TO OPEN YOUR DISPUTE....  you need:

  • Brief, concise explanation of why you are disputing this error.
  • Clear, easy-to-understand proof that the account has been paid as agreed.
  • Or, proof of your last payment showing that the statute of imitations has expired and therefore the item or account should be removed.

Once you have all of this saved as a .pdf document (if you don't know what that is...get some help!), then go online. 

Here are the links to the 3 major credit reporting agencies:

Equifax Dispute

 

TransUnion Dispute

 

Experian Dispute

 

If you have followed these instructions, you should get a letter or see online that the disputed item has been corrected.

If not, then contact them until it is!!!!

Good luck!

FREE  Debt Elimination Summary

 

Photo Credit

 

 

Tags: debt settlement, Credit Score, credit repair, credit report, debt collector, credit cards

Can Debt Settlement Improve My Credit Score?

Debt Settlement is an option to clear old debts and improve your credit score.

When you find yourself faced with a very stressful financial situation, there are only a few options:

credit_denied.jpg

 

     Consolidation Loan

     Debt Management

     Debt Settlement

 

 

 

CONSOLIDATION LOAN

A consolidation loan may be:

  • Second Mortgage on your home or other property
  • Personal loan with your bank or credit union
  • Balance transfer from a credit card offer

Getting a second Mortgage or even what's called an "Equity Line of Credit" through your bank or another lending institution, may be possible with lower than normal credit scores.

Just be very careful and do your homework and math to make sure that the lender is not charging you such a high rate of interest or fees that this type of loan makes no sense in the long run!!!

But, a Consolidation Loan will not really change your credit scores right away!  Here's why:

The calculations to determine a credit score in fairly complicated, but one of the most important or "weighted" portions of that calculation is the ration of current debt to the total available debt you have.

For example:

Let's say you have 5 credit cards with a total available credit of $20,000.

You have maxed-out 4 of the 5 for a total of $15,000 of debt.

You "Debt Ratio" looks like this...

                   $15,000 divided by $20,000 equals a 75% debt/available debt ratio

That's high as far as the Credit Bureaus evaluate your "credit worthiness" with a credit score!

For more information, check out:

How Are Credit Scores Determined?

So, even if you do qualify for a Consolidation Loan, your credit score may not improve quickly!

 

DEBT MANAGEMENT

Debt Management is what we used to be referred to as Credit Counseling a few years ago.

In a Debt Management Program, each of your creditors agrees to lower you interest rate and may forgive or bring current late fees, etc.  Each creditor is a little different.

But, consider this:

  1. Your total monthly payments on all of your debts may not be less!
  2. But, being enrolled in a program like Debt Management, will not quickly improve or change your credit scores!
  3. If you miss a scheduled payment, you may void the agreement and you are right back where you started. 

Before you enroll in one of these programs, you might consider and even do much better by looking into a DEBT ACCELERATOR PROGRAM.

 

DEBT SETTLEMENT

If you qualify, a Debt Settlement Program may give you all of the results you are looking for:

  • ONE Lower Monthly Payment
  • Total Balances of you debt reduced by 50% or more!
  • Debt Free in about 3-5 years, depending on your particular circumstance
  • Ultimately Improve your Credit Score!

A Debt Settlement Program is for someone who is going through a very tough time, especially in the financial area!

  • Loss of employment or cut in pay
  • Divorce or other family upheaval
  • Death of a spouse or loved one
  • Limited income after retirement
  • Disabled or suffering from severe illness

Most of your accounts are either delinquent or about to become severely "behind".

You've probably had one or more of your accounts turned over to a Debt Collector and are enduring the constant phone calls and letters.

By the way....you can put a stop to those calls now:

STOP Collection Calls Free Sample Letter

Rather than continuing to make minimum monthly payments on your accounts, you will be making a monthly payment that FITS YOUR BUDGET into a FDIC insured bank account.

As these funds are growing, negotiations with your creditors and debt collectors begin to arrange a SETTLEMENT AGREEMENT.

The final settlement amount varies, depending on a number of circumstances, but settlements of 50% or less are not uncommon.

But, will Debt Settlement Improve your credit score?

Yes, but over time!

It may be hard to understand, but a potential lender is looking for a couple of key items in a credit report, such as:

  • How much credit are you carrying now?
  • Length of employment?
  • Credit History...not just late payments, but how long and how have you handled your credit payments over time?
  • What is your "credit worthiness"...If a loan is granted, what is the likelihood that you can and will repay as agreed?

Just because you have fiancial trouble now or in the past IS NOT an automatic DECLINE OF CREDIT!

When you have had all of your accounts settled with a ZERO BALANCE, you will be offered NEW CREDIT as your Credit Scores will have improved.

 

FREE  Debt Elimination Summary

 

Photo Credit

 

 

 

 

 

 

 

Tags: debt settlement, Credit Score, debt collectors, debt management, credit cards

What a Debt Collector Can and Cannot Do...Know Your Rights!

You do not have to put up with debt collection harassment, but you need to know your rights under the Fair Debt Collection Practices Act in order to put a stop to it!

Our nation's consumer protection agency is call the Federal Trade Commission or FTC.  This agency enforces the Fair Debt Collection Practices Act or FDCPA.  The FDCPA was designed to put a stop to abusive and unlawful attempts by debt collectors to collect debt.

too many credit cards

Debt Collectors are strictly prohibited from using unfair or deceptive techniques in their debt collection activity.

Not all debts are covered by the FDCPA.  The act covers basically all debts, such as:

  • personal loans
  • credit cards
  • store cards
  • medical bills
  • student loans
  • mortgages
  • auto loans

The FDCPA does not include debts you may have incurred in order to operate a business.

So, what happens if you find yourself in a financial situation where you can no longer meet the terms of your loan or credit account?

Once your account has been charged off by the original creditor and placed with a collection agency, the telephone calls will start.  This is the most abused type of debt collection activity, but you have rights that you must not only be aware of, but take advantage of!

Unless you agree to it (and who would), a debt collector cannot call you before 8am or after 9pm.  They also are prohibited from calling many, many times during the day.  Many debt collection agencies use an automated dialer to make thousands of calls a day, hoping to catch someone.

Here is some good advice on how to deal with a debt collector's call:

If you have the address of the debt collector (from one of the many letters you have no doubt received by now), then don't answer.  Your caller ID should indicate an "unknown" number or a number that is certainly not one of your family or friends.

If you (or perhaps one of your family should answer by mistake), briefly tell the debt collector that you are working on the problem and will get back to them...then HANG UP!

REMEMBER...Debt Collectors are professionally trained to get you to agree to pay back your debt right away!  Trying to explain your circumstances hoping for some understanding and/or sympathy is usually a waste of your time.

If you don't have the address of the debt collector (I'll explain why in a minute), then ask for it from the debt collector or at least get the debt collector to identify the company.  Now, you can go on line to get the address...WHY?

Because the FDCPA specifies that once a debt collector has received a written demand to stop placing calls to you, they must stop!  They are allowed one more call to tell you they got your letter and will not call again or that they intend to take further legal action in an attempt to scare you into...yep...giving them money!!!

In most cases, the debt collection agency will honor your demand letter and stop calling you.  That doesn't mean that you are not still responsible for the debt, but at least they will stop call you.

STOP Collection Calls Free Sample Letter

What about calling you at work?

A debt collector is also prohibited from calling you at your place of employment if they are told orally or in writing that you are not allowed to receive calls at work.  Again, most of the time, they will honor your request.

What about calling your family or neighbors?

Yes, but only to find out a little information about you:

  • Do you still live at....
  • Is your phone number still....
  • They may ask about your place of employment as well.

But, they may not discuss your financial situation!

I'll discuss what you can do if they are violating the FDCPA in just a minute, but here are some other basic practices or techniques that are also prohibited by debt collectors:

They are prohibited from...

  • using threats of violence or harm (but, after a dozen years in dealing with debt collectors, I have never heard of this violation)
  • using obscene or profane language
  • making false statements, such as claiming to be an attorney or representing the government
  • making statements such as "you may go to jail" if you don't pay!

threatening to garnish your wages or seize your property if, in fact, they have not been awarded a judgment after several months of legal efforts.

threaten to take legal action if, again, they don't follow through

OK, so what can you do if you feel that a debt collector has violated the Fair Debt Collection Practices Act?

First, contact your State's Attorney General's office to file a complaint.  Usually, the best way to do this is to go on line. 

For example, in Oregon, you can file a complaint at:

Oregon Department of Justice Consumer Protection

Next, you will want to file a complaint with the Federal Trade Commission.

FTC Complaint Assistant

Your state's attorney general's office as well as the Federal Trade Commission doesn't take abusive debt collection practices lightly!  In fact, you have a right to sue a debt collector in a state or federal court within one year of the violation.

If you plan to do so, you should consult an attorney.

Finally, dealing with debt collectors is no fun and is certainly not easy. But, knowing your rights can really help.

Need mor advice?  Let us help:

 

Photo Credit:

https://www.flickr.com/photos/sovietmole/

 

 

 

 

 

 

 

 

Tags: debt collection, fair debt collection practices act, fdcpa, debt, debt collection in oregon, credit card debt relief oregon, credit cards

Should You Be Afraid of Debt Collectors?

A recent newspaper article in Portland, OR from The Oregonian stated that as many as 33% of all consumers will be dealing with debt collectors!

Although dealing with a debt collector can be frustrating and annoying, there is really no reason to ever fear a debt collector.

Believe me, I certainly understand why most people who find themselves in a financial situation that has caused some or all of their accounts to be turned over to a debt collector are nervous.  The thought that you might lose your home, possessions and/or bank accounts would cause any sane person to be afraid.

fear of debt collectors


Well, the good news is that in most cases, that FEAR is not necessary!

In this blog, I am talking about dealing with unsecured debts (credit cards, store cards, medical bills, etc.) and not secured debts such as a home mortgage or auto loan.

So, here are a few things to remember and tips on how to deal with debt collectors:

It rarely does much good to talk with a debt collector on the phone.

Once your account is 60-90 days past due, you can expect a call from either the RECOVERY DEPARTMENT of the creditor or from a DEBT COLLECTION COMPANY.

While your account is still with the original creditor, the Fair Debt Collection Practices Act or FDCPA laws that allow you to put a stop to collection calls do not apply...yet!

Most of the time, when the original creditor's agent calls, they are just trying to find out what your situation is and may offer a plan to help you get back on track.

BE VERY CAREFUL!!!  They may offer what is called a "HARDSHIP PLAN", whereby you agree to allow them to deduct a certain amount of money (usually less than the total amount your last statement DEMANDED) from your checking account for say, 6 months. 

At the end of the 6 months, they promise to "REVIEW" your case and get you started making regular payments again.  But usually, after you have paid the agreed upon amount for 6 months, your have barely made a dent in reducing your balance and are right back to where you started!

If you take the call from the original creditor, be very calm and simply say something like:

"I realize I've fallen behind on my bill and fully intend to get caught up soon. But, at this time, there is nothing I can do, so please stop calling me."

Yes, I know I just said that they have the legal right (at this point) to call, but they may honor your request and leave you alone for a month or so.


If the recovery department of the original creditor is unsuccessful in getting your to start making payments, the account most likely will be charged off and sold or transferred to a debt collector after about 120 days.

You most likely will get a letter from the debt collector and no doubt will start getting phone calls!

A Debt Collector's job is to get you to pay...period!  Although there are plenty of "decent" debt collectors who actually may show some empathy for you, there are many that are just the opposite.

These debt collectors will use all kinds of tactics to get you to pay up!  Although most debt collectors follow the laws and/or guidelines of the Fair Debt Collection Practices Act, there are always a few "bad apples".

Don't get into a dialog with a debt collector!

While I think it's OK to have one short conversation with the original creditor, it's usually a whole different story now that your account has been turned over to a debt collector!

If they have sent you a letter demanding payment, etc., get the address of the debt collector and write them a letter demanding that they cease calling you at home.

Here is a sample letter you can use:

STOP Collection Calls Free Sample Letter

If the calls don't stop (it will take a week or so) then you can file a complaint with your state's attorney general's office.

Usually, the debt collector will stop calling as they can be fined very severely!

NOW WHAT?

After a reasonable period of time (varies with each debt collector), if the debt collector is unsuccessful in getting you to start paying , the original creditor may:

  • Recall the account and turn it over to another debt collector and the process will start again.  Yes, you will have to send another letter to the new debt collector to stop the calls!
  • Turn the account over to a Law Firm that only practices debt collection.

 

If your account is placed with a Law Firm that practices debt collection, you will get the same letters and calls, but now, you need to be careful.

If the Law Firm decides to FILE A CLAIM for the debt you owe on behalf of the original creditor or the debt collector, you will get a SUMMONS.

I've written several blog articles over the years on what to do if you receive a summons, but in short:

  • DON'T IGNORE THE SUMMONS
  • DON'T PANIC!

Most people think that a debt collector and/or debt collection law firm can just garnish your income, levy your bank account and/or put a levy on your home or other property.

While it's true that they can AFTER they are awarded a judgment, they cannot do anything until then.  That's why it is so important to take action if you receive a summons!

In most cases, you can prevent the CLAIM from moving on to a JUDGMENT by contacting the attorney's office and working something out.

Most "judgments" are awarded to the creditor/debt collector/plaintiff because the debtor didn't take any pro-active steps.

If you are employed and receive regular W-2 income, then you can't let

If you...

  • Are retired, with only Social Security and/or Retirement Income, or
  • Disabled and receiving Disability Income only, or
  • Are unemployed and receiving unemployment income, or
  • Receive child support or alimony payments, then...

These sources of income are exempt from garnishment. Notice, I didn't say exempt from state or federal taxes you may owe, but from garnishment for unsecured debts.

The best way to put an end with dealing with debt collectors is to NEGOTIATE A SETTLEMENT of your account. That is, if you have some funds available to make an offer of 40%-60% of the balance. 

If not, you can still usually negotiate a settlement by agreeing to make monthly payments rather than a lump sum payment, but you may have to pay a little larger settlement.

Click here for some very useful information on how to negotiate a settlement:

FREE EBook Debt Settlement  Basics

One final thought...

If your financial circumstances are such that you have no ability to offer a settlement, either in a lump sum or payments, then you may need to consult a bankruptcy attorney.

Bankruptcy is a way to help those who qualify to put and end to debt collectors and get a fresh start.

If all of this sounds a little overwhelming, we can help:



 


 

Photo credit: 

Kevin B 3

milwaukeemakerspace.org/2012/12/fear/

Tags: debt collection, fair debt collection practices act, credit card debt, debt settlement, Bankruptcy, debt, credit cards, Oregon, PORTLAND

When is Debt Settlement Your Best Option?

Too much credit card and other unsecured debt?  Not able to keep up with the payments?  You may be a prospect for Debt Settlement.

But, before you decide, consider the following:credit cards cut up

Debt Settlement is a very effective program to help people settle unsecured debts for less than the total balance due.

  • The unsecured debts I'm talking about are:
  • Credit Cards
  • Store Cards
  • Home Shopping Club accounts or cards
  • Personal Loans
  • Repossession Deficiency Judgments
  • Medical Bills
  • Personal Student Loans (although there are programs to help on Federal Student Loans as well)

When faced with too much debt and not enough income or cash flow to keep up with at least the minimum payments due, there are only a few options to keep the debt collectors at bay:

A Debt Management Program

A Debt Management Program used to be called a "Credit Counseling Program" and sometimes it is still called by that name.  In a Debt Management or Credit Counseling Program, a person signs up with a "non-profit" (only for taxable reasons, YES, you will be paying fees!), and they will have set up a program with each of your creditors.

Usually, the interest rates are reduced or sometimes eliminated, late fees and over-the-limit fees are usually forgiven after you have made a few payments, and your account is now classified as being paid as agreed or on time.

However, the problem with a Debt Management or Credit Counseling Program is that there is very little forgiveness if you miss or are late on a payment!  I've seen people who had been consistent for many months, and then, due to an emergency, just couldn't come up with the total due that month.  The Debt Management Program was canceled or voided and they were back to square one!

Also, in a Debt Management or Credit Counseling Program, the total monthly payment may be more that the total minimum monthly payment you are required to make now!  And, the company is charging you a monthly service fee as well!

So, if you go through the process of trying to enroll in a Debt Management Program and find out you cannot qualify, what now?

A Debt Acceleration Program

A Debt Acceleration Program (sometimes referred to as a Debt Snowball Plan) is perfect for someone who is making the minimum monthly payments on each of their debts and yet, due to high interest rates and annual fees, realize that at this rate, it will take 15-20 years to pay off those debts!

A person who should look into a Debt Acceleration Program also could add another $100 - $200 each month to help reduce or accelerate paying off these debts.

Most people in a Debt Acceleration Program are DEBT FREE in 48-60 months, saving thousands of dollars in interest and fees!

I prefer the Debt Acceleration Program to a Debt Management or Credit Counseling Program because as far as your credit report is concerned, you were a very consistent debtor and not only paid all of your payments on time, but actually did so sooner than required!

 

 

OK, but what if you are one of so many people that due to:

  • Job loss
  • Divorce
  • Disability
  • Death of loved one
  • Major Financial Emergency

...just cannot meet the total minimum payments due on your unsecured accounts and cannot qualify for a Debt Management or Debt Acceleration Program?

Then, you should consider a:

Debt Settlement Program

Debt Settlement is designed for people who have a severe financial hardship, have tried to keep up with all of the bills, but some or all of their credit card accounts and other unsecured debts have been turned over to debt collectors.

These debt collectors are calling all day and even harassing you at work. But, before I explain how a Debt Settlement Program works and could help you, here's how to put a stop to those collection calls:

STOP Collection Calls Free Sample Letter

In a Debt Settlement Program, you will go through a thorough financial overview to determine several things, such as:

  • Type of employment (self or W-2)
  • Basic Monthly Budget
  • Retirement status
  • Type of income you are receiving (disability, social security, unemployment, etc.)
  • Assets (mainly do you have equity in your home)
  • Are you renting?

Once you know where you stand, you will have an amount (that you can afford) deposited into your Debt Settlement Reserve Account (FDIC insured bank) monthly.

The Debt Settlement company will be contacting your creditors and/or debt collectors to arrange settlements.  As you reserve account grows, each of your accounts should be settled for much less than the total balance due.

Recent Settlements See what we have  done for our clients!

But finally, what if you just are barely making ends meet on your basic bills and have little or nothing left over to put towards a Debt Settlement Program?

Then, you should consider:

A Bankruptcy Program

There are basically two types of Bankruptcy Programs for individuals:

  • Chapter 7
  • Chapter 13

The Chapter 7 is not used as much these days as it is basically designed for someone to liquidate any assets they have (obviously, not very much) and that small amount is paid to each creditor, and the balances of your debts are "forgiven".

In a Chapter 13, a bankruptcy attorney will present a type of repayment plan to the bankrutpcy court based on your financial status.  Usually, a person will be making a monthly payment of $200-$400  (or whatever your bankruptcy attorney comes up with) for about 3-5 years.  Each of your creditors receives a small portion of the balance due.

At the end of the Chapter 13, the balances of your debts are forgiven.

Oh, by-the-way, if you receive a 1099-C, in most case, you should not be liable for any additional taxes due on the amounts forgiven.

Debt Settlement is a great program for the right person.

 

 


 

 

 

 

 

 

 Photo Credit:  Daniel Oines

Tags: credit card debt, debt settlement, Credit Score, Bankruptcy, credit report, debt relief in Portland Oregon, chapter 7 bankruptcy, chapter 13 bankrutpcy, credit card debt relief oregon, credit cards, credit card debt help

When It Comes to Debt Settlement, One Size Does NOT Fit All!


A recent article in our Portland, OR newspaper, The Oregonian, stated that one in every three people in America are facing debt collection.  If you are one of the 33%, what are your options?

shop now pay laterSadly, when faced with the annoying and often harassing tactics used by many debt collectors, people are often given only one choice...debt settlement.

But, after over 11 years helping people deal with having too much debt, I want you to know that although debt settlement is often a very viable choice, and often the only choice to prevent bankruptcy, it is not the only choice. In other words, ONE SIZE DOES NOT FIT ALL!

 

Unfortunately, many debt settlement companies ONLY offer and therefor ONLY recommend debt settlement as the solution to dealing with a severe debt load.

Let's briefly look at the various options:

There are so many different possible scenarios or various financial circumstances that people are facing that a quality, experienced company that assists people with debt will do a thorough analysis to determine the proper program.  It is much like a doctor who should do a thorough exam before prescribing a drug or procedure!

The first step is to determine what kind of "DEBT" you are dealing with.

For example, SECURED DEBT, such as a mortgage, auto loan, or any other loan that is secured by property (usually the property itself), must be dealt with differently than UNSECURED DEBT.

Some of the more common forms of UNSECURED DEBTS are:

  • Credit Cards
  • Store credit cards
  • Personal or Signature bank loan
  • Medical bills
  • Private (not Federal) Student Loan
  • On Line shopping sites such as QVC, EBay, and others that offer credit

Once we have identified what type of debts you are facing (and there are usually a combination), then we need to determine where you are FINANCIALLY.  In other words, after you pay all of your basic bills to live...mortgage or rent (all secured debts), as well as... food, utilities, gas, medicine, insurance, etc., is there any money at the end of the month to pay towards those debts?

The easiest way to determine where you stand is to complete a simple, Household Budget Worksheet.  

Budget Worksheet FREE Download here!

Once you've detemined where you stand, then we can look at the various options.

A DEBT MANAGEMENT PROGRAM (often referred to as Credit Counseling), has been used by people with debt problems for years.

This program is designed for someone who is currently making all of the minimum payments required on their unsecured debts, but because of the HIGH INTEREST RATES (APR) and ANNUAL FEES and OTHER FEES (late fees, over-the-limit fees, etc.), realize that they are not making any progress to actually paying off these debts.

For example...

Did you realize that if you have a credit card with a balance of say, $5,000 and an annual percentage rate (APR) of 19%, it may take you 15-20 years or more to pay the card off by making the monthly minimum monthly payment required.

For more information:  DEBT CONTROL: 4 PROGRAMS THAT WORK!


If you are barely making all necessary payments (secured) as well as your monthly minimum payments, but there is nothing left over, then a Debt Management Program may be best for you.

But, if you actually have (or can make some living adjustments to find) and extra $100-$200 per month to put towards your debts, then you should consider:

A DEBT ACCELERATOR PROGRAM

Originally called by various names such as a "Snowball Plan" or a "Roll Up Plan", in a DEBT ACCELERATOR PROGRAM, you are going to pay off your debt in an average of 4-5 years without enrolling in a Debt Management Program (which may or may not harm your credit score).

Basically, in a Debt Accelerator Program, you will be making the normal minimum payments each month as before, but you are going to increase one of your debts by say $150/month.

There are several theories about whether you should accelerate the highest balance or interest rate first, but I don't want to get into that here.

I recommend that you start with the lowest balance first, make the minimum due plus the additional $150, and pay that one off quickly...you'll be amazed!

And, not only amazed, but excited to go to the next debt!

Now, you take the former minimum payment (say it was $50) and after adding the $150, were making $200 per month instead of just the $50 and you add that $200 to the next card or debt's minimum due.  Let's say the next one is $75.

Now you are making a total of $275 towards the next card ($50 + $150 + $75 = $275).

Get the idea?  Soon, you keep "Accelerating" each debt and you will be DEBT FREE in a much shorter time and save thousand of dollars in interest and fees!

SOUND GOOD, BUT...

What if not only do you not have any extra money to put toward a Debt Accelerator Program, you can't even make the minimum monthly payments your unsecured debt require now?

THIS IS WHERE A DEBT SETTLEMENT PROGRAM MAY COME TO YOUR RESCUE!

Rather than opt for bankruptcy, millions of people have used a Debt Settlement Program to pay off all of their unsecured debts and avoid bankruptcy.

Debt Settlement is a program designed for those who are really in trouble, fincially.  Usually, most or all of their debt have gone to debt collectors who are are calling severaly times a day and sending threatening letters!

STOP Collection Calls Free Sample Letter

You will be making a monthly contribution to a bank insured (FDIC) account to hold those funds until there is a reasonable amount built up to make a SETTLEMENT OFFER.

Again, depending on several factors, most settlement offers are going to be around 50% of the balance.  Some are for more, other less.

Recent Settlements See what we have  done for our clients!

People often ask if a Debt Settlement Program hurts their credit score.  But, they are not thinking the process through.  If you're accounts have gone to debt collectors or judgments, your credit score has all ready suffered!

Once you get all of your debts settled...ie., you have $0 balances, your credit scores will improve!

OK, but what if you can't even afford to make a contribution to a Debt Settlement Program?

Then, it is time for you to seek BANKRUPTCY PROTECTION from your creditors!

Again, unfortunately, their are many Debt Settlement Companies that only offer one solution to everyone's debt problem.  But, as you can see, ONE SIZE DOES NOT FIT ALL, when it comes to dealing with debt.

Seek the counsel and advice of a qualified Bankruptcy Attorney.  You should be able to have a FREE Consultation and hear about your options.  In fact, good bankruptcy attorneys will work with you as far as their fees go. If not, seek out another bankruptcy attorney!

I hope I have made my point that when it comes to DEBT SETTLEMENT, one size does not fit all!

 

Photo by: DRNW

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

Tags: debt collection harassment, credit card debt, debt settlement, Bankruptcy, debt collectors, debt management, credit cards