1.    Pull Up Your Equifax Report. Some balance holders are just a couple of billing cycles in arrears on their credit card bills as a result of tight budgets, and they may have forgotten about a couple of unpaid bills that are pulling their credit scores downhill. Some of us have gotten so far back in bills that we’ve forgotten what we owe! The primary step to getting back on the track to acceptable credit is to order your credit report so that you can see 1) the companies you hold a debt with, 2) how much you need to pay them, and 3) what your debt payment is. You are guaranteed one no cost credit history from all three of the major reporting companies annually. When you know your balances, you are in a better position to make an informed resolution regarding your debt situation.

2.    Renew Communication With Your Creditors. Yes, it is true. At some stage you’re going to have to re-establish contact with your credit card companies if you’ve lost touch with them after falling behind in payments. At the very worst you’ll have to endure a long quizzing with a sprinkling of bad attitude. The positive news is that it’s possible that you’ll be extended a deal to pay off debt that can get your credit back on track and probably eradicate some of those blemishes on your credit.

3.    Cease Using Available Credit. Possibly the main choice you have to make so that you can reclaim command over your credit and debt affairs is to stop making charges on open credit accounts. That means you have to take the scissors to your credit cards and begin making do on a currency only basis. Adopt this way of thinking: if you do not have the cash to make a buy, then you can’t afford it.

4.    Assure That Your Paycheck is Enough To Take Care of Your Bills. The most difficult requirement to ending your debt woes is netting the salary that is required to cover your payments and get current with your creditors. That is because your income is sometimes not in your control. Think about getting a 10 hour per week side job and dedicate all of the income from that to your debt balances.

5.    Consider Debt Solution Plans.  If you’re seeking to decrease your regular payments, pay off debt fast, or if you simply need to steer clear of direct contact with your credit card companies, you may want to consider an online debt Consolidation program. These helpful programs are overseen by debt settlement companies that specialize in debt reduction and debt negotiation with your card issuers.

It is 8 am in the morning and the phone is ringing, who on earth would be calling so early? You pick up the phone and a foreign sounding voice squeaks in your ear. “Hello Mr. Smith, this is Jamal from the book club. I am calling in regards to your outstanding bi…”, and you decide to hang-up on this early morning interruption. Don’t these people know that one should have coffee before getting these horrible phone calls? This is not an unheard of situation. If this has ever happened to you, go online and check out online debt consolidation.

This might just be what you need in your life to create some order in what seems to be a bottomless pit of despair. Yes even you can be helped with your financial hardship. Would it not be great if you could answer the phone without being afraid of bill collectors? You must know by now that ignoring the problem will not make them go away. Even worse, you are the one having to end up paying for their time and phone costs, so spike their route of harassment and get an online debt settlement today.

If you’re worried about all the embarrassment of having to go through money management classes then I have good news for you. We only provide these classes if you want them as it is, and will never be a must. But we do have highly trained staff available if and when you would need them. Our goal is to get you debt free and happy in life again. You see a lot of our financial problems are not there because we are bad people, they are there simply because there was a reason and that reason is not always our fault. Even if you made a big mistake, online debt consolidation will work hard for you to make sure that this mistake will be turned around into a cope able situation. We are sure that you have learned the hard way that a mistake like this should not happen again.

So let’s get to work and clean up your life. What most people don’t know is that when we start working on their case, a lot of the time the amount owed can be brought down to a more affordable monthly payment or even a lump sum payoff can be arranged. This will save you in many cases 30 to 40 percent. So knowing all these factors and knowing our willingness to work hard for your financial life, we ask you to go and check out online debt settlement, you will be glade you did.

No more phone calls early in the morning or even worse late at night. No more worries about the door bell, and finally peace of mind. Now that is worth the 5 minutes it will take you to see what we can do for you wouldn’t you agree? Together we can work on a debt free world. Check us out today.

Debt Consolidation vs Settlement

If you are on this page then chances are you are having problems with some form of debt. Because being in debt can have serious financial consequences, I will get right to the point so that you can make the right choice sooner rather than later. First off, in order to determine if our online debt settlement or consolidation programs are right for you, having your problem bills in front of you will make it much easier. Next, knowing whether your debt is secured or unsecured is important. But what is the difference between the two?

Secured debts are those that are secured by property or other assets. Such bills could include your mortgage, car payment, or even a personal loan from a bank. Unsecured debts on the other hand are those that are not secured by assets. These bills can include utility, medical, credit cards and more. Furthermore, although outstanding debts like IRS payments due or government student loans are not secured, they do fall under the secured heading and therefore are not something our online dept settlement could help with.

Once you have all your unsecured debt in a pile, the next step would be to determine how much you can afford to pay each month once all of your regular bills are paid. Often people are worried that what they can afford each month will not be enough to pay their debts. To understand why most often this is not the case, let me tell you a bit about how it works. Often times, we are able to negotiate with your creditors to lessen the overall amount owed. These people do not want to spend thousands in legal fees just to collect what they owe and are willing to work with our online debt settlement people to get a fair deal.

What this can mean in the end is a substantially cheaper monthly payment then what you would have had you continued to make the minimum payments each month. This is also due to the fact that we are able to work with them to stretch out the number of payments to allow for an affordable monthly cost to you. Our online debt consolidation and settlement program can make it possible for you to go back to living a normal life without the constant harassing phone calls and worry about your debt. What’s more, because we also employ our own in house attorney’s, you can rest assured that your case will be handled with the utmost legal and secured process that you can find out there today.

Now that you have all your bills in order, and have taken the time to figure out how much you can afford to pay each month, why not take it to the next step and fill out the online debt settlement form. It will only take you a few moments, and you will be happy to know that you are never required to meet with us. Do it today and rest easy tonight.

WHEN: September 25, 2008, 8:30 a.m. to 5 p.m.
WHERE: FTC’s Satellite Building Conference Center, 601 New Jersey Avenue, N.W., Washington, DC. A valid photo identification is required. A live webcast will be available at www.ftc.gov.
AGENDA: Topics will include regulation and legal developments, advertising and marketing of debt relief services, role of third-party lead generators and other service providers, the history and development of the industry, and consumer education.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

MEDIA CONTACT:
Office of Public Affairs
202-326-2180

Millions of Americans are currently struggling with bad debt, including credit cards and other unsecured loans. The climate calls for unique debt solutions that can help indebted individuals climb out of sink holes of bad debt quickly and efficiently. One such solution is offered by debt settlement companies. They offer debt relief programs that can reduce your total debt by up to 50% and help you get back on track with your payments if you have fallen behind.

Okay, So How Does it Work Exactly?

Step 1. You will fill out an online debt consolidation questionnaire that gives the debt relief company the information they need to determine how to proceed with your debt negotiation process. The online process saves you the embarrassment and time of having to go back and forth with a human counselor over the phone with a detailed history of your debts and obligations.

Step 2. The debt relief company will then set up a trust account, similar to an escrow account, in your name with a reputable debt relief attorney in your area. From that point forward, you will make your regular debt payments to this trust account.

Step 3. Meanwhile, skilled debt negotiation attorneys will be working on your behalf to come to an agreement with your creditors. Debt settlement companies can reduce your debt by up to 50% off the bat. They will prioritize your debts based on the interest rate (highest first) and whether it is a revolving or installment account.

Step 4. Once your trust account reaches a certain level, the debt relief attorney who is working on your behalf will settle with your first creditor and scratch that debt off of your list. You will continue to pay into your trust account until all of your debts are settled.

Your Requirements and Responsibilities

- You have to stop using your credit card accounts. Your credit card debts will never go away if you continue to use them. You simply cannot succeed with a debt relief program if you plan to keep making charges on those accounts.

- The interest rates on your unsecured debts generally have to be over 10% to qualify for debt settlement programs.

- Continue making your agreed upon monthly payment to your trust account each month in full. The quicker your trust account reaches the balance where a creditor can be paid off, the quicker you will be out of debt.

Important Considerations

Ask Yourself These Questions. When you are looking into debt settlement programs, you have to first ask yourself exactly what you are trying to accomplish.

- Are you looking to reduce your monthly payments?

- Are you trying to get rid of your debt more quickly?

- Are you looking for a debt solution because you have fallen behind and are tired of creditor calls?

It may be a combination of all three, but one of these questions applies to your situation more than the others. When you are truthful with yourself and figure out what your main motivation is for seeking debt reduction strategies, debt settlement companies can design a solution for you that is tailored for your exact situation.

Fees. All of the fees for your participation in a debt relief program are already built into the agreed upon low monthly payment that you and your debt negotiation attorney have decided on. There are no additional costs.

Your Credit Rating. A common question from those who are looking into debt relief programs is “What will happen to my credit report?” When you stop paying your debt payments to your creditors and begin to make your payments to a trust account instead, of course this is going to cause your creditors to raise an eyebrow. You may experience a temporary increase in creditor calls. You will inform them that you are now working with a debt settlement law firm and direct them to the attorney’s office. After your creditors have been duly notified that you are on a debt relief program, most consumer protection laws state that they should no longer be harassing you. Your credit accounts will show as “not current” on your credit report until the accounts are settled in full. The good news is that after a while your credit rating may actually go up after your debts are paid off since your debt percentages will be reduced. Compared to the crippling effect of a bankruptcy on the average consumer’s credit score (10 years of bad credit), working with debt settlement companies is a mostly preferred alternative.

How would it feel to have zero debt again? You may have forgotten what that is like after years, even decades of debt payments. Once you have made the conscious decision that you are no longer going to be enslaved by outrageous balances of unsecured debt, your debt solution is waiting.

]]> http://debtsolutionhelp.com/2008/08/what-you-need-to-know-about-debt-settlement-programs/feed/ 4 http://debtsolutionhelp.com/2008/08/how-to-pay-off-debt-most-efficiently/ http://debtsolutionhelp.com/2008/08/how-to-pay-off-debt-most-efficiently/#comments Mon, 18 Aug 2008 16:48:46 +0000 admin http://debtsolutionhelp.com/?p=12 For most of us it starts in college. For some of us, it begins when we start our first major job and move into our first apartment. In other cases, the debt load starts to pile up when we forge out on our own and attempt to start a new business.

But no matter how you have managed to accumulate your debt, the only question that needs to be addressed at this point in time is “How do I get rid of it?” Now that you have come to the realization that something needs to be done about your debt situation, your next task is to put an effective debt reduction plan in place. This is step by step guide for how you can eliminate your debt most efficiently.

Step 1. Form a “ Pay Off Debt “ Chart

It is much easier to form a plan to eradicate debt when you have a visual representation of what you are up against for reference purposes. Create a debt chart or table that is formatted in a way that is easy for you to follow. At the top of the page write today’s date, and for each of your creditors list the following information:

- Creditor Name and Phone Number

- Account Number

- Current Balance

- Interest Rate/APR

- Minimum Payment

- Rank (leave blank for now)

Once you have all of this information written down in your “ pay off debt ” chart, take about 20 minutes to absorb the information. Total up all of the balances so that you can know how much total debt you currently hold, and then move onto the next step.

Step 2. Figure Out What Type of Debt Account You are Dealing With

Once you have all of your debt accounts listed, you then have to determine whether they are revolving accounts or installment accounts. Installment accounts are commonly tied to property, such as houses and cars. They have a set, fixed monthly payment that ends at some point in the future, such as a car loan that ends in 60 months. Revolving accounts, such as credit cards, are the tricky ones, because you can always add additional debt to them, and the payments can go on forever if you continue to use them. That is why it is important to pay off your revolving accounts first, then start working on installment accounts.

Step 3. Rank Your Debts in Order of Interest Rates

Remember that “rank” section that you were supposed to leave blank earlier? In this step you’re going to start filling that column in. First, you want to look at all of your revolving accounts since those are the priority. Rank them in order starting with the highest interest rate account at number “1.” Once you finish with your revolving debts, you can then continue the ranking process with your installment loans (highest interest rate accounts first). This rank is the order in which you will pay off your debts. Important note: if your installment loans have a prepayment penalty clause, you do not want to include them in this process.

Step 4. Dedicate all Extra Income to Paying Off Debt

Once you have your debts lined up and ranked, you are going to start dedicating every extra dime you have available on a monthly basis to paying off the debt, even if it’s just $100. Start with the account you ranked at #1. Pay the minimum amount due PLUS the extra $100 towards that debt each month until it is paid off, while continuing to pay the minimum on all of your other accounts. Once the balance on that first debt is “0” you can draw a big black line through it and start putting that extra $100 towards the next debt on your list. This process is called “snowballing.” You continue this process until all of your debts are at a zero balance. Clearly, the more extra cash you are able to dedicate to this process, the quicker you will be finished with your debt.

Step 5. Stop Using Revolving Accounts

This step is quite possibly the hardest feat to accomplish when attempting to pay off debt. You have to make a commitment that you will stop using those credit cards and other revolving accounts from this point forward. Let’s face it – when you use credit lines that cannot be paid off immediately within the same billing cycle, you are living outside of your means. That behavior pattern must be stopped if you are going to be serious about paying off debt. Most credit counselors agree that it is good for your credit score to keep some credit card accounts open after paying them off, but you simply cannot continue to use them. So slice up your credit cards and take on a “cash only” mentality. Adopt the following thought process when you are out shopping: if I don’t have the cash to pay for this, then I cannot afford it at this point in time.

If you do not feel that you are disciplined enough to implement this method of paying down your debt on your own, or are still somewhat confused by the process, debt settlement companies like NetDebt.com can not only help you pay off debt, but also slice your debt by up to 50% off the bat.

How, you may ask, is that possible? NetDebt.com has a team of qualified debt settlement attorneys on hand who will represent you in a debt negotiation with your creditors. These attorneys are very good at what they do; they understand how creditors operate. A creditor will always prefer to settle with a customer rather than risk netting $0 from a possible bankruptcy proceeding or chasing down a customer who simply decides to stop paying. The NetDebt attorney will then pay off credit card bills and other unsecured debts on your behalf from an online debt consolidation trust account established in your name. All that you are responsible for is paying the amount you would normally put towards your debt into the trust account on time every month.

No matter how you choose to pay off debt, it’s important that you remember that you are not alone in your efforts; millions of Americans are in the same boat. You are one of the intelligent few who have decided that it’s finally time to take back the reigns of your out of control debt situation.

Before you can accurately resolve a problem, it’s always best to first have a clear understanding of what you’re dealing with. That is most definitely the case when you are evaluating your debt situation and deciding on possible debt solutions . Most consumers pay the minimum balance on credit cards not knowing what percentage is going to principal or how many years it usually takes to pay off credit cards that way.

So before you swipe that credit card again, it’s time to look at your credit card bills in a different light. Here are five simple steps that require you to determine five figures that you need to know in order to start off your quest to pay off debt successfully.

1. First Determine Your APR and Balance. Have you ever really taken the time to look over your credit card statement? If no, then now is the time to start. Yes, it’s a little scary to face those numbers head on, but if you’re going to get serious about your debt reduction plan then you have to get extremely familiar with your credit card bills . Scan down to the section of your bill that discusses your finance charges (sometimes called the Finance Charge Schedule); you are looking for your Annual Percentage Rate (APR), which is the actual cost of the credit you are holding with that particular credit card company. There may be more than one APR listed depending on your credit card agreement, such as special balance transfer rates and cash advance rates. Write your APR down for each category and credit card bill and move on to the next step.

2. Determine Your Balance. Now you want to find out the credit card balance that your credit card company uses to compute your finance charge. Most will go by the average daily balance, while others use a Two-Cycle Average Daily Balance (based on two billing cycles), previous balance (the balance at the beginning of the billing cycle), or an adjusted balance (purchases made in that billing cycle are not included). The balance computation method that your credit card company uses has an effect on how expensive your monthly finance charges will be. When you have different balances connected to certain APRs, this is where things can get a little complicated, but you can handle it! You will do a separate calculation for each balance and its corresponding APR later. Call your credit card company if necessary and ask them questions about how they compute your balances to be sure you’re both on the same page.

3. Calculate Both Your Monthly and Daily Finance Charges. Next, you will want to determine how that APR translates to dollars and cents. Use the following simple formulas:

o Your Monthly Rate: APR ÷ 12 (months in the year)

o Your Daily Rate: APR ÷ 365 (days in the year)

So in this example if your APR is 20%, your monthly rate will be 1.67% and your daily rate is .055% (these are two numbers that you will want to memorize for future reference). In order to figure what these percentages mean monetarily on a monthly and daily basis, you simply move the decimal point over twice and multiply the resulting number by your average monthly balance. So if your current average credit card balance is $10,000 this month here is what you will do:

o Your Monthly Rate: .0167 x $10,000 = $167 per month in interest

o Your Daily Rate: .00055 X $10,000 = $5.50 per day in interest

This is what you are paying on both a monthly and daily basis for the credit card debt you are holding. Some credit cards will calculate your monthly finance charges based on the monthly rate, and some on the daily rate. *Remember, your average balance will change every month since you are paying it down with principal, so you will need to do this calculation every month to be accurate.

4. Decide How Much You Should Be Dedicating to This Debt. Now that you know how much you are paying every month towards interest, you can now decide how much would need to be dedicated to paying off the debt. How much principal should you pay off on a monthly basis in addition to the interest you calculated above? This decision should be made in correlation with the next and final step.

5. How Long Will it Take You to Pay Your Credit Card Debt Off? Finally, you must decide how long you want to continue to pay off credit cards . Alternatively, you can work backwards and decide how much you can dedicate to the debt each month, then calculate how long it will take you to eradicate the balance based on that figure. Simply put, if you have $10,000 in credit card debt with a 20% APR, as in our example, and only pay the minimum payment each month, which is now anywhere from the interest plus 1% of the balance and 4% of the balance, you could be paying off this credit card debt for over 80 years! If that doesn’t sound feasible for you, then it is definitely time for an alternative plan of action on your part, such as credit card debt settlement .

Once you know these five important figures, you can then go about deciding on debt solutions that will actually help you pay off credit cards that have been haunting you for years. Or course, these calculations can be done with an online credit card calculator, but it’s best that you have a close and regular relationship with how your monthly credit card bills are being computed. It helps make your goal of debt reduction more tangible.

If after doing these calculations you find that based on your current financial situation you are destined to be paying credit card bills for the next 80 years of your life, then it’s time to look at alternative debt solutions . The online debt consolidation experts at www.NetDebt.com will help you take that bold step towards eradicating your credit card debt much more quickly by shaving your debts sometimes in half, and paying them off in full for you.

When you sign up with NetDebt.com , it’s important that you understand something first. Eliminating credit card debt is about more than just putting money in a credit card debt settlement account. It is up to you to make a conscious decision that you are going to stop using those credit cards, and start getting serious about debt reduction . Are you ready for this commitment? If your answer is a resounding and confident “YES!,” then it’s time to take action.

NetDebt.com saves you the sometimes embarrassing process of having to explain all of your financial woes to a counselor. All you have to do is fill out the easy online debt consolidation questionnaire to get started on the road to being debt-free for the first time in a long time!

If you are looking at the various debt relief programs that are available, it’s important to first have an understanding of the different types of debts and how their terms affect your financial situation. Debt consolidation companies will usually only cover your unsecured debt, which includes credit cards, student loans, medical bills, and legal fees. There are two types of unsecured debts that you may be holding – revolving and installment accounts.

What is the Main Difference?

With a revolving line of credit, the principal balance varies because debt can be added to the account. The most common example of a revolving account is a credit card, where a simple swipe can raise your balance. A revolving debt will never end as long as you keep using it (thus the term “revolving”). Alternatively, an installment account has a fixed principal balance, a pre-set monthly payment, and fixed terms that don’t ever change unless the interest rate is variable and fluctuates, and in other rare circumstances that are determined on a lender by lender basis. One great example of an installment account would be a 60 month business loan. You make a set payment each month until the account is matured.

What Are the Pros and Cons of Each Type of Debt?

The best way to understand revolving and installment debt accounts at a glance is to examine the pros and cons of each type of account:

Pros of Installment Accounts

- Installment accounts have a definite end;

- You have a set payment each month, so there is no surprise;

- You know exactly how much interest you will have to pay over the course of the loan.

Cons

- Sometimes comes with high interest rates that cannot be changed;

- More of a long term solution to a short term cash crunch.

Pros of Revolving Accounts

- Interest rates can be reduced;

- You can avoid paying interest by paying off the balance every month;

- Can be a temporary solution to a cash crunch, if you manage it responsibly.

Cons

- Can become a lifetime debt if mismanaged;

- Interest rates can be increased according to the credit card company’s discretion;

- More debt can be added to the account on an ongoing basis, so there is a constant temptation and possibility for overuse;

- More risky, because you can go over the credit limit and create a myriad of new issues;

- Excessive fees for lateness, cash advances, and going over the limit.

Which Should be Paid Off First and Why?

Your debt reduction plan needs to be structured in a way that maximizes your interest savings. Because revolving account balances are more difficult to control and have higher interest rates on average, most debt experts will recommend that you pay these accounts off first. If you don’t take care of those credit card balances expeditiously, you could end up paying credit card bills for the majority of your lifetime, and thus an outrageous amount of interest. Interest rates are often much higher on revolving debt accounts also.

Important Considerations

If you are still debating on whether a revolving account or an installment account is a better debt to hold, or which type of account you should prioritize for repayment, here are a couple of other considerations you’ll want to keep in mind.

- Calculate the True Cost of Each Type of Debt. Do a comparison of the two types of accounts to decide what the actual interest cost will be for each account if you allow them to reach “maturity.” (Maturity is used loosely when discussing revolving accounts because they can go on forever.) Whichever type of account is the most expensive with the longest payoff period is obviously the one you want to eliminate first. Here is a quick example – you can just plug the figures that apply to your own debts (at inception) into a financial calculator to see the results for yourself.

Let’s say you purchased a $2,500 laptop for your son or daughter on a credit card, and took out a $2,500 business loan on the same day, both at the same interest rate.

Based on the higher interest cost, and the temptation to use the revolving account for new charges, it clearly makes more sense to pay off the more expensive credit card debt before an installment loan.

- Prepayment Penalties. Some installment loans come with a prepayment penalty. If you pay off the debt early, or rather, before the maturity date, they will charge you expensive fees. This is to assure the creditor a minimum profit from the loan. If your installment loan has a prepayment penalty it make not make financial sense to even include it in an aggressive debt reduction plan. Talk to your lender to find out what that penalty would be. You can then determine if paying off the loan early would still result in a significant cost savings, even after the prepayment penalty is applied.

When you have information on your side, you will be able to find a good debt solution that will allow you to pay off debt quickly and efficiently. Be sure to browse the entire NetDebt.com online debt consolidation website to find out more about debt consolidation companies and other debt solutions that are available to you.

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