Options for Debt Relief Programs

On 10.21.10, In Personal Finance, By Stevie Wonder

Folks of yesteryear often say that prevention is better than cure. Such is the case especially if you are using it in the context of responsible debt management. However, if you find yourself already struggling with debt, there is actually still hope and help available for you.  Today, it is possible for you to find debt help with a number of debt relief programs.

First and foremost, the term debt relief encompasses a number of different programs like debt settlement, credit counseling, and debt consolidation loans. It is considered the main avenue for consumers to address their burdensome financial plights like settling outstanding credit card balances, student loans, medical bills, and even other unsecured loans. Debt relief is usually done when debtors turn to the aid of third parties in representing them for various negotiation pursuits with their creditors. This is a vital aspect as considerations and grants are often reflected on how the third parties present the debtor’s predicament as well as the corresponding propositions in settling the debt.

Recent cases indicate that the top three popular options for debt relief programs are as follows: debt settlement, debt consolidation, and debt management. Since debt settlement and debt consolidation are often being interchanged and wrongly considered one and the same, kindly allow for a brief clarification.

Debt settlement is a more deliberate and bold debt relief option whereby a debtor calls for one’s overall outstanding balance to be significantly diminished so as to be able to settle it once and for all. It is widely considered as a faster, cheaper, and easier way of debt relief but it does leave an imprint the creditor’s records. In all likelihood, recovery is estimated to be more or less two years. Debt consolidation on the other hand, delves on primarily trimming down the interest rates for the monthly payment. Though it will also leave a record of quite a large single debt, it will make it more organized and hence better managed than having a number of smaller debts.

At the end of the day, it will all depend on how you exercise your options in good light. A flexible and wide array of options available for you will not do any better if and when you are unable to be vigilant and knowledgeable enough in managing your debts. Keep in mind that there are others always on the ready to help with your debt; still, prevention is better than cure when it comes to handling such a potentially burdensome ordeal.

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Eliminate Credit Card Debt With A Debt Elimination Plan

On 06.16.10, In Uncategorized, By Stevie Wonder

Credit card debt is probably the worst kind of debt you can have.  The reason for this is that the credit card companies have become predatory. If you carry a balance, they play games with you. For example just before the consumer protection laws went in, the credit card companies erased millions of dollars of available credit. Then they jack rates on many people because they owed over 50% of their credit lines.  Many were locked into large balances and no ‘wiggle’ room, that’s not right.

How do we eliminate our credit card debt? Credit card companies want you to carry as big of a balance as they can entice you into, in addition, they love to add on ‘fees’ that will bump your balance up. Sometimes they will even bump you over your limit, which adds another fee.  Sometimes you can negotiate with the credit card companies, but remember that they have you where they want you, they have not incentive to negotiate.

We need to get a strategy to focus our available dollars on a single credit card until it is paid off.  Meanwhile, we have to pay the minimum on the rest of the debts so they stay current, but just pay the minimum only.  Check out this debt elimination plan for more on the strategy.

The next portion of the strategy is to get more income into the plan. The way you eliminate credit card debt quickly is to pay as much as you can on the credit card you will see the balance go down quicker. There are many ways to get more money to add to your credit cards, try selling something that you are not using, get a part time job even at minimum wage you can add hundreds a month to a credit card bill.

It will take dedication, but you can do it. Just think how you will feel when you don’t have to hand a large part of your paycheck to the credit card companies.

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Negotiating Settlement Credit Card Debt Guide

On 04.21.10, In Personal Finance, By Stevie Wonder

Negotiating settlement credit card debt, or debt settlement, is something to seriously consider when wanting to improve your finances. It allows you to clear up old messes and put yourself back onto a solid financial footing.

A debt program will allow you to reduce your expenses by slashing interest and charges already added to your credit card account balance, and to reach a settlement where you may not need to pay any future interest once the account is negotiated. You will then have one monthly payment, for a fixed duration, until the account is cleared. Simple.

To begin this process you will want to know where you stand with your money. You will want to know all your assets and liabilities – this means all the things you own that are liquid, like checking account balances and savings balances, and all the debts you presently have. Once you have done that, you will want to start looking at your income and expenses. What do you earn and what do you spend?

To consider your income and expenses, pull out old bank statements, sales receipts and the like. Put together a simple record of how you spent your money in the last few weeks or months, and then a spending plan, how you plan to do to for the future. Once you have this done, you will have a reasonable idea what surplus cash you have to play with. Now remember to not forgot all those important occasional expenses too, like insurance premiums, house repairs, auto repairs, etc. What if the surplus isn’t a lot?

Cutting back on expenses has a time-honored tradition. There are many ways to do it. Money flows out of your pocket in big chunks and trickles out with many little expenses too. The daily expenses for gas, snacks, lunches, treats, etc. vary, but the bigger items like the weekly shopping trip at the supermarket are a bit more predictable. Some people like the envelope system, where they chop up the cash they have to spend into different categories and restrict what they spend when they run out. You have so much for lattes, but when that envelope is empty, no more lattes. This is a bit restrictive but it does stop you overspending and so keeps you to your intended goals.

When you have a larger sum to offer the debt collection, you can call as you are ready for negotiating settlement credit card debt. Good luck.

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The Basics of Bankruptcy

On 03.01.10, In Personal Finance, By Stevie Wonder

The basics of filing bankruptcy are not difficult to understand. You only need to recognize that two types of bankruptcy exist to help the typical debtor. The first bankruptcy is the typical chapter 7 bankruptcy where all of your debts are erased. The other bankruptcy is Chapter 13 which means you will be paying back some of your creditors. The best type of bankruptcy would be a chapter 7 bankruptcy only if you don’t care about the trustee selling your home or getting rid of your car. Most people become scared when they hear about losing their home. However, it is not typical to lose the home because it can be reaffirmed and you can continue to make payments on the home. The bankruptcy court also allows the person filing so much money for exemptions towards vehicles and cars. Therefore, many times people can exempt the equity in their home and their vehicle which prevents them from having to surrender any property when filing a chapter 7 bankruptcy.

Visiting several Michigan Bankruptcy Attorneys will help you decide if saving your home and vehicle is an option. However, if you meet certain requirements you can also keep your property by filing a chapter 13 bankruptcy and then you begin by working with your attorney and court trustee to decide how much you will pay back and how many years your plan will be.

If you are placed in a Chapter 13 bankruptcy you  will have been placed in a bankruptcy where very few people succeed and in a plan where the bankruptcy plan can last anywhere from three to five years and can range in several different percentages of payback to the creditor during the bankruptcy plan.

To be successful in a chapter 13 bankruptcy you and the attorney should not just be concerned only with how to erase credit card debt but both parties should be more concerned with detailing the specific bankruptcy plan that the debtor can abide to each month through out the bankruptcy process whether it is a simple chapter 7 bankruptcy or a Chapter 13 bankruptcy with 3-5 years of paying back creditors under bankruptcy protection.

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