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Jan
06
Watch Video On Selecting Reputable Debt Relief
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Oct
14
Debt Relief Agencies: 5 Things To Know
Here is a recap of the 5 things consumers should know about debt relief agencies:
1) Beware of agencies that promise you the moon.
2) Contact your creditors first to see what can be worked out.
3) Just because an agency tells you that they’re non-profit, doesn’t make them good.
4) A consultation of your debt should be free.
5) Don’t pay anyone to clean up your credit – you can do it by yourself.
For a FREE Debt Analysis to see what you could be saving you may follow the link below.
Posted in Uncategorized
Tagged creditors, debt payment plan, debt relief, debt relief agencies, free debt analysis
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Oct
09
Rebuilding Your Credit After Debt Settlement
When you have completed your debt settlement there is no denying that your credit score will be temporarily tarnished. Just remember though, you now have money to start setting aside to begin an emergency fund. You now have some relieved stress from being out of debt and you can start rebuilding your credit, which is actually easy to do on your own. Watch the one minute video below to find out what you can begin doing now to start the rebuilding process:
Oct
02
Dangerous Debt Payoff Strategies
If you’re carrying a few thousand or $30,000 in credit card debt, making the commitment to get out of debt is a responsible goal, unless you’re using the wrong payoff strategy.
Here are a few dangerous debt payoff strategies to avoid:
1) Withdrawing from a 401(k). You’ve worked hard to build up a healthy balance in your 401(k) account and you’ve been consistent with the contributions. Don’t let all of that hard work go to waste by withdrawing early. Though it may seem like a simple way to get a lump sum of cash to put toward a debt repayment plan, you will be paying fees for an early withdrawal and will be clearing out those much-needed savings for your future retirement.
2) Tapping a home equity line of credit. Borrowing against the equity of your home can give you some extra cash for large purchases and paying off your debt. However, this strategy can be a bad move in our current economic crisis with housing prices still continuing to drop. When the value of your home drops and you end up having to sell the property, you’ll end up owing more than you bargained for. Avoid tapping into a home equity line of credit unless you’re certain that you will be staying in your home for many years.
3) Filing for bankruptcy. Filing for bankruptcy can seem like an easy fix when you’re overwhelmed by your current debt load, but keep in mind that the effects of bankruptcy can last 10 years and creditors and employers will see the bankruptcy filing listed on your credit report. Potential creditors can turn you down for a new credit line when they see bankruptcy on your record, future landlords might think twice about renting to you, and employers that conduct credit checks will see the bankruptcy filing on your report.
Sep
26
What Are The Tax Consequences Of Debt Settlement?
What are the tax consequences of debt settlement?
Reputable debt relief programs also provide debt management, also known as debt consolidation where all your payments are made on time each month and your interest rates are negotiated to be reduced.
I should note here before I begin, that debt relief programs are not tax experts. They provide debt consultations for your tax debts, but they are not attorneys or accountants for matters pertaining to the IRS. Having said that the IRS does provide information on the topic that a debt relief program can share with you.
According to the IRS, if a debt of over $600 is forgiven then those debts will be reported to the IRS as an income. However, there are also provisions in these laws that may apply to you, and in turn save you the taxes that would otherwise be due.
Put basically, the provisions states that if a person is “insolvent” or doesn’t have a positive net worth at the time of the write-off, he/she doesn’t have to pay taxes on the write-off. For more detailed information on this topic, it is suggested that you consult with a tax specialist. We recommend talking to LightHouse Tax and Financial for more information. http://www.lighthousetf.com
In general though the tax consequences for clients are quite small, and the benefits of saving large sums on their balances due, far outweigh any taxes that may become due as a result.
Posted in Uncategorized
Tagged debt consolidation, debt consultations, debt management, debt relief programs, debt settlement, debts
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Sep
17
Repairing Your Credit After A Debt Settlement
Settling your debt is a step in the right direction. Although your credit score may suffer in the short-term because of the delinquent payment status, debt settlement will likely help your credit score in the long run. Since a big part of your credit score considers the amount of debt you have, settling accounts and achieving a $0 balance should help improve your credit score.
Apply for the right credit cards
After you’re done with debt settlement, you probably won’t get approved for an American Express or any other premium credit card. It’s probably not even worth it to try. Instead, you should stick with credit cards that are known to approve applicants that have a bad credit history, like those issued by Orchard Bank.
Several credit card issuers have a pre-qualification application on their websites that only do a soft pull of your credit (the one that doesn’t hurt your credit history). You can use the pre-qualification application to see if the credit card issuer has any credit cards that fit your credit profile.
As a last resort, you can apply for a secured credit card. As soon as you make your last settlement, you could start putting the money you used to send the settlement agency into a savings account. Then, after a few months, you could use that money as a deposit on a secured credit card. With this method you may be able to get a very good credit limit. With a new credit card, you could start taking the steps to get your credit back where it was before your debt trouble.
Your credit report contains the details about what you need to do to improve your credit score. The negative information on your credit report is what brings your credit score down. The first thing you should do to repair your credit is check your credit report. Make a list of the things that are hurting your credit score and figure out what you can do to improve that information.
One of the easiest steps in credit repair is to dispute inaccurate information. Errors could hurt your credit score, especially errors in how your debt settlement is reported. Check every item on your credit report to make sure everything is correct. If you find anything that’s wrong, dispute it with the credit bureau.
Your credit score is based on five different factors: payment history is 35%, amount of debt is 30%, age of credit history is 15%, types of accounts is 10%, and new credit applications is 10%. Since payment history has the biggest impact on your credit score it’s important that you pay your bills on time. Your credit score is based solely in the information that’s listed in your credit report. Credit scores from FICO and the credit bureaus don’t consider any outside source of information.
You can repair your own credit or you can hire a credit repair company to help you. For a fee, the credit repair company will help you remove damaging information from your credit report. Do a background check on the credit repair companies you’re considering to make sure you’re hiring a reputable company.
You must add positive information to your credit report if you want your credit score to improve. As the negative debt settlement details get older, they should hurt your credit score less. To bring your credit score into the highest numbers, you probably must add several years of positive payment history.
Posted in Uncategorized
Tagged credit report, credit score, debt, debt settlement, debt trouble
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Sep
10
The Ins And Outs Of Debt Settlement
Watch this helpful ABC News video on debt settlement so that you know what to look for in a reputable program: ABC News Video: Debunking Debt Settlement
*Find a program with no upfront fees.
*A person’s debt is reduced in the settlement option.
*Find a program that charges on debt savings, not on total amount owed.
*Use a program that is represented by a law firm to eliminate creditor harassment.
*Use a program that offers several options to debt relief, because everyone’s circumstance is unique.
*Debt settlement can be time consuming(1-3 years). A legitimate company cannot have you debt free in 3 months.
Sep
04
Recommendations For Choosing The Best Debt Relief
Recommendations for choosing reputable debt relief:
*Find a company that has been working nationwide for over 10 years.
*Is a member of TASC. This organization makes sure a company is upholding the highest standards of quality and customer service.
*A member of NetCheck with 100% resolved complaints. It does not matter which consumer rating system a company is a member of. What does matter is that all complaints have been resolved. This means that if you had a complaint, it would likely be resolved, and this is what you as a client would want.
*The company must be listed with the Dunn & Bradstreet to show financial strength.
*Offers a variety of law firm back programs, as well as debt management plans, so that the counselors can recommend the best range of solutions for you.
*Company corporate mission that puts satisfaction and savings before company profits.
*They are a member of the RatePoint with numerous positive testimonials.
*Commission based fees.
Posted in Uncategorized
Tagged debt management, debt settlement, reputable debt relief, TASC
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Aug
29
Are You Fearing A Low Credit Score With Debt Settlement?
Are your credit accounts delinquent at this point in time? If they are, then a debt settlement will have a direct improvement on your credit because it will show that your accounts are resolved.
If your accounts are current and you’ve been paying the monthly minimum payments, then your credit score will decline during the debt settlement program as the accounts go delinquent and then as each one is settled, your credit should improve.
A settlement means you have paid back an agreed amount to the creditors. Paying off the debt to the creditor is a positive factor when applying for a larger loan(i.e. mortgage) in the future because it’s just not your credit score that is being looked at. They also look at your ability to make the new payments and pay back a previous loan. Even if your credit is perfect, without the ability to pay back the loan, you will likely be declined.
If you have a large debt load now, then settling that debt will help you to increase your ability to pay back that large loan in the future.
Remember, credit card companies started the idea of debt settlement programs so that they could recover a portion of what was owed to them in lieu of receiving nothing when a person files for bankruptcy. On the other hand, they will tell you all the bad things that will happen to you if you join a debt relief program because they don’t really want you to be debt free. They got you right where they want – paying high interest for the next 20-30 years.
Debt settlement is for those who are unable to keep up with payments to creditors, on the verge of bankruptcy, or can only make minimum payments every month. If a person is experiencing a financial hardship, then one of two things will happen:
- Their credit score will sink because they are unable to make payments to creditors.
- They will remain in debt for 20-30 years because they can only make minimum monthly payments to creditors.
If a person takes a debt settlement, then the following will happen:
- They will be debt free in 12-36 months and save 40-70% on the original debt balance.
- Following the completion of a debt settlement they can begin saving money that was originally being thrown away on high interest rates.
- They can begin the process of repairing their credit.
Having a strong credit score is a good thing, but it is more important to have cash in your pocket. Without it, what can you do? Much of the negative buzz from financial analysts regarding debt settlement reverts back to debt relief scams that still exist out there, but you can avoid those by finding an experienced company.
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Posted in Uncategorized
Tagged debt, debt free, debt relief program, debt settlement, debt settlement program
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Aug
23
Selecting An Experienced Debt Relief Program
With a debt management plan you are represented by a lawyer who will negotiate with the creditor, settling for a lower balance, a lower interest rate, or lower monthly payments. The credit card companies want you to be involved in a debt management plan. In fact, they are the ones who created them. They created the idea so that they could recover a portion of a balance rather than getting nothing when a client files for bankruptcy.
A common question by debt relief clients is, “What if I’m sued by the credit card company?” If you’re not represented by a lawyer then you may be a target for a lawsuit, but creditors will usually not go after a person who is trying to fulfill their obligation through debt management. If you’re settling your debt, the creditor has made an agreement with a lawyer to a newer reduced balance, so why would they try to sue you down the road? For example, if my friend agrees to sell me his bicycle for $30, and I pay him, he’s not going to demand an additional $30 a year later. I recently interviewed a Curadebt counselor who’s been working six years for the company. He told me he’s yet to witness a client being sued by a credit card company.
It pays to consult with an experienced debt relief program, such as Curadebt because you need a program that has over ten years of experience with negotiating debt settlements. Experienced debt relief companies will have a better rapport and sense of trust with the creditors.
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