Debt Problems? You Can Negotiate With Your Creditors
September 2, 2010
It is always possible to negotiate with creditors ? even if they have already taken you to court to get a judgment or to garnish your wages.
Getting a creditor to reduce your monthly payment helps and does provide short-term relief. However, this is only a temporary measure and you need to remember that the interest on your debt will continue to pile up.
You need to negotiate settlements with your creditors to get real debt relief and fix your credit.
Let’s take credit card debt first. Suppose you owe $4,000 but that the original amount was only $2500 and the rest is interest. Let’s also assume you have been behind in your payments for six moths. Call the company and explain the reason why you have fallen behind. You will need to have a real reason such as illness or the loss of a job. Agree to pay $2500 as a settlement in full. In turn, have the company agree to report your account as current to the credit reporting agencies.
Most creditors will buy off on this kind of settlement because they’d rather get the money now vs. having to wait many months or pay a collection agency. So you should be able to negotiate this kind of settlement with many, if not all, of your creditors.
What You Should Know About Bankruptcy
August 24, 2010
Filing bankruptcy is not only a last resort legal action; it is also a very complicated legal action that definitely needs the expertise of a lawyer. When thinking about bankruptcy, you first need to decide if bankruptcy is right for you. If it is, then you need the help of an attorney to decide which type of bankruptcy is required for your particular situation.
The decision to file bankruptcy can be brought on by many different circumstances. The most common circumstances are divorce, medical hardships and credit card troubles. In cases of divorce, bankruptcy is often inevitable. The sudden change in financial level and the added burden of court costs, extra expenses and child support often cause one or both parties to get behind on their financial obligations.
In the case of medical hardships, high medical bills can sometimes overburden people even if they have insurance. This is even more likely to happen if the person experiencing the medical emergency is also the family breadwinner.
Is Debt Negotiation Bad?
August 17, 2010
Educating yourself about the ins and outs of debt negotiation is a good first step. Please note that the term ‘debt negotiation’ is also known as debt arbitration or debt settlement.
For starters, a lender has little motivation to arbitrate anything less than the full amount unless the person is two to three months behind in payment.
To answer your question is debt negotiation bad? You need view it as a last-resort measure. The truth of the matter is it’s one step away from declaring bankruptcy.
Remember, your lender gave you the money or property in good faith. He or she has every right to expect that the loan be repaid in full. Morally, you should do everything that is within your power to pay your debt(s).
However, this is not always possible and despite how much you would like to repay the loan in full you just can’t - not now and not in the foreseeable future. This is where debt negotiation comes into play. It may be your only logical course of action.
Personal Bankruptcy ? If Its Unavoidable, File Now
August 10, 2010
The Bankruptcy Abuse and Consumer Protection Act, signed into law by President Bush last April, promises changes to Federal bankruptcy law that have been long sought by the lending industry. The bill promises sweeping changes to Federal law, and will make it much harder for the average consumer in financial trouble to have their debts wiped out by filing for bankruptcy. Recent trends suggest that those considering a bankruptcy filing should do so now, as the line to do so is already getting rather long.
The bill will make it harder for the average consumer to file under Chapter 7 of the Federal code, which allows the courts to wipe away consumer debt and give the debtor a fresh start. Filings after the October 15 deadline will be subject to a means test and those that pass a rather generous income gauge will have to file under the more strenuous Chapter 13, which requires a repayment plan and the assistance of an attorney. Indications are that with the deadline looming, bankruptcy filings are not only higher than they were last year, but they are also higher than anticipated. Nationwide, filings are 20-25% higher than last year, and some bankruptcy attorneys say that their business has nearly doubled.
Establish Money Saving Goals For Added Success
August 1, 2010
Having something tangible to strive towards can work wonders for your money-saving efforts. To those of you that have already been actively implementing money-saving tips in order to lower your monthly bills, for added inspiration, establish a meaningful goal along with a specific dollar amount.
For those of you just starting your money-saving quest, having a goal to strive towards will help keep you focused whenever you may get a feeling of quitting.
What goal should you decide on? This is a very important question that should be thought about carefully. The answer can only be found in you.
To help come to a decision, make a list of the five most important things you need or would like to have. Keep in mind not to merely dwell on the most popular, innovative contraptions hitting the market these days.
These tangibles will come and go.
A conscientious, thoughtful money-saver is looking at the bigger picture: THE FUTURE. Whether that be college tuition savings for kinds, a new home, retirement planning, travel expenses, etc…
Debt Settlement
July 23, 2010
What is debt settlement?
Debt Settlement is a process to settle your debts with the creditors. With debt settlement, a third party or you yourself negotiate with your creditors to come up with a reduced debt that you agree to pay. The reduction is usually between 30-60% of the total original debt amount.
Attributes of Debt Settlement:
Debt Settlement programs gives you a lot of options to clean your debts. It reduces your principal debt amount, eliminates your late fees, lowers your APR, and provides you the flexibility to repay your debts within your chosen time span.
British Families and Debt
July 16, 2010
There is current concern from the Bank of England that British families are getting deeper into debt, however, it has been said that lenders are putting themselves at risk because people are now more willing to make themselves bankrupt.
Despite people already having significant amounts of debt, credit card companies are still prepared to lend these people money. This is a combination of a creditor not knowing the full picture of a persons financial commitments and employees of credit card companies being under pressure to sell credit cards and insurances policies to earn bonuses.
People will receive random telephone calls from companies who will try to sell the benefits of their cards and use the selling point of lower rates plus the option to transfer the balance from their current credit card at a lower rate.
Many people who receive these calls may already be in some kind of debt. There possibly will be some who are currently looking for solutions to their debt problems, and the temptation of obtaining a new card thereby having more spending power could prove hard to resist.
Secrets to Why Debt Reduction is So Vital for Your Financial Health
July 8, 2010
Living with debt is never a good idea if you want to make long-term financial plans. Every cent you use to service debt is money that could have been invested in your future. Investment is extremely important, and can lead to a more comfortable and secure retirement. Just as smart investment can lead to a more secure future, mismanaging your money and incurring debts can lead to financial difficulty down the track. Poor money management can prevent you from taking advantage of many different kinds of financial opportunities, and may effect your credit report.
Debt affects your ability to save and invest for the future
Every time you make a repayment on a loan or pay off the balance of your credit card, you are spending money that could have been more usefully invested in other ways, such as building that nest egg for the future. Reducing your total amount of debt is vital for your long-term financial health.
At the moment, wealth accumulation may seem like an unattainable goal. However, you need to make sure that you have money to live comfortably during retirement. Constantly using money to pay off your debts will ultimately have a significant impact on your ability to build the kind of future you deserve.
Your Secret Weapon… A Budget
June 30, 2010
For many, the word ‘budget’ immediately sends shivers down the spine. Why in the world would anyone need or want to budget their money?
First off, budgeting your money does NOT mean you are poor, or are in need of financial assistance. You’d be surprised to know how many considered to be “middle class”, regularly budget their money in order to make the most of what they have.
Secondly, designing and implementing a budget does NOT take a Harvard doctorate degree requiring hours upon hours of tedious work.
What is a budget?
Simply put, a budget helps you to track your income and keep your spending habits in check over a certain period of time, allowing you to reach specific goals.
Why Start A Budget
There are many reasons why a family may want to implement a budget. These “reasons” can be labeled BUDGET GOALS. The reason(s) you are budgeting your money.
It is imperative that you actually determine what your GOALS are before actually designing a budget plan.This is what you will be striving for.
Answer the question - ‘Why do I want to start budgeting my money?’ To save for a new house or car? Saving for your childrens’ college education? What about an early retirement?
Getting Past The Idea Of Budgeting & Saving Money
June 23, 2010
I’m sure you’ll agree that budgeting, saving money, and eliminating debt are very appealing ideas. If effectively tackled, these goals can secure your financial status for the future, and allow you to live a comfortable, debt-free life.
However for some unfortunate reason, these important financial goals hardly ever get accomplished, and most will continue to go through life consistently worried about their financial security, unprepared for what the future may hold.
I have been writing money saving articles and newsletters for SavingSecrets.com for over 6 years now, and after being in contact with a number of readers over the years, I found that many who were interested in learning how to effectively save money simply lacked the foundation to accomplish this.
I am a firm believer that the ability to save and budget is dependant on the plan and approach one takes. Sure many proclaim they want to conserve and save more, but how many actually accomplish this? Saying one thing and actually doing are completely different from one another. Why do you think so many New Year’s Resolutions are forgotten and never heard from again?
