Debt Settlement: Let’s Discuss How It Works

“Debt Settlement” could be defined as the negotiation of an unsecured debt whereby the creditor agrees to take an amount less than claimed.  The reason it is limited to unsecured debts is that negotiation of a secured debt would be referred to as “loan modification.”

Credit counseling services are different from debt settlement companies in a number of ways. Credit counseling organizations and debt settlement companies both offer services to help if you are having trouble making payments on your debts.

Debt settlement and credit counseling organizations advise you on managing your money and debts and may help you develop a budget. They usually offer free educational materials and workshops. Their debt counselors discuss your entire financial situation with you, and help you develop a personalized plan to address your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions. Although most of them are non-profits, these services may charge fees for their services that they take out of the payments you make to them.

Typically, a credit counselor will help you with advice and education, and by organizing a “debt management plan” for all your debts. Under a debt management plan you make a single payment to the credit counselor each month or pay period and the credit counselor makes monthly payments to each of your creditors. Under debt management plans, credit counselors and debt settlement law firms usually may be able to negotiate a reduction in the amounts you owe or a lower your overall monthly payment. They may do so by getting the creditor to increase the time period over which you can repay a loan (for example, five years). They may also get creditors to lower the interest rates. Although most credit counselors are non-profits, they may charge fees for their services that they take out of the payments you make to them.

Credit card debt settlement is the process of paying off debt to a creditor after mutually agreeing to a sum less than what is owed. Usually, only unsecured debt, such as credit cards and medical bills, is eligible for settlement. This can be done with the assistance of a debt settlement company or, in some cases, an individual may choose to do this on her/his own.

A credit card company might accept a Christian debt settlement if you’re very delinquent on your payments; it is often less costly for a creditor to accept a lesser amount in settlement than it is to send the account to collections, file a lawsuit, obtain a judgment, and then try to collect on the judgment.

Example. Janet has a $10,000 credit card balance. She hasn’t paid the bill in nearly a year. She has managed to save $6,000, but she’s so behind on other bills that she can’t afford to save any more. She contacts the credit card company and offers to settle the account for $5,000. After some negotiation, Janet settles the debt for $6,000 and pays the entire amount to the creditor.

Debt settlement is sometimes confused with debt consolidation, in which borrowers are offered one big loan to pay off their smaller debts, and with credit counseling, in which agencies attempt to set up low-interest repayment plans so borrowers can pay off credit card debt over time.

National Debt Relief Program offers a free debt analysis which can be taken advantage of at their website:

www.nationaldebtreliefprogram.org

 

Credit Card Debt Relief: The DIY Approach

With a little dedication and prior planning, it is possible to reduce your debts on your own. Why pay debt counselors and consolidation agencies fees for things you can do yourself? We show you the tricks of the trade and the fastest way to reduce your debts on your own.

 

Step 1: Evaluate Your Debts

 

Collect all your financial documents and print out your credit reports to see exactly where you stand. This is an important step toward debt recovery and one that people are often scared to take. On a piece of paper, write down the balances, interest rates, and monthly amount due for each of your debts. Include your auto loans, personal loans, payday loans, credit cards, and other debts. You should also make note of any annual fees on your credit cards. You don’t need to include your mortgage loan or student loans at this time. These loans have relatively long terms and low APRs so it is better to focus on paying off your other debts first.

Step 2: Look at Your Budget

After you have collected the information about your debts, you should take a look at your monthly budget. Write down your monthly income after taxes and subtract your rent/mortgage payment from this amount and other monthly expenses such as childcare, student loan payments, insurance, utilities, and groceries. Once you have subtracted all of your expenses, calculate how much you have left to pay off your debts. If this amount is too small, look for ways to reduce your spending. Consider turning off your cable subscription or carpooling as ways to cut back temporarily. The more you can pay towards your debts each month, the sooner you will be debt free.

Step 3: Make a Plan

Now that you know all about your financial situation, it’s time to create a plan for reducing your debts. Use your information from Step 1 and 2 to fill in the following chart. Subtract your minimum debt payments (Step 1) and monthly expenses (Step 2) from your monthly income after taxes. The remaining amount should be used to pay off the debt with the highest interest rate and the highest balance.

Continue this cycle each month until the debt is paid off and then move on to the next highest rate/balance account. This may seem like an odd process, but it is the fastest way to reduce your debts. During this time, you should not add any new charges to your credit cards. Also, try to increase the amount you pay toward the most expensive debt each month. Track your progress with a chart.

Step 4: Start Debt Negotiations

While you are starting to follow your repayment plan from Step 3, you should contact your creditors and lenders to see if you can improve the terms on your debts. You may be able to lower your interest rates or negotiate a reduced settlement on some debts by speaking with the customer service department. It is especially easy to negotiate the terms of debts that are charged off (dismissed) by the creditor or in collections already. Also think about moving some of your credit card debts to new accounts with lower interest rates. Moving a balance to a credit card with a 0% introductory rate for 6-12 months can help you save a lot on interest. Just be sure to keep each of your credit card balances below 35% of the credit limits to avoid damaging your credit score. During this time, investigate if consolidating your debts into a personal loan or home equity loan could help too.

Step 5: Follow-Through Your Debt Reduction Plan

Do your best to meet your repayment goals each month. It’s okay if the amount you put toward your most expensive debt each month varies. Just try to consistently put as much as possible toward your debts. Signing up for an automated payment system and keeping a chart of your progress on the refrigerator can help you stay on track. When you reach major milestones, be sure to celebrate your success. Before you know it, you’ll be debt free!

National Debt Relief Program offers a free debt analysis which can be taken advantage of at their website:

www.nationaldebtreliefprogram.org

Credit Card Debt Consolidation, Debt Relief Programs Easy to Apply For

Credit card debt consolidation and debt relief programs continue to be popular today with Americans in continued wake of the new economic reality. How to apply for these programs? Read on.

The U.S. unemployment rate remains stubbornly high. Yet those with jobs aren’t seeing much in the way of pay raises. Amid sluggish economic growth, wages simply aren’t rising the way they have in past eras. These income and employment issues are just one of many reasons why consumers today are turning to debt relief and debt consolidation programs en masse.

Debt Relief Programs

Many people face a financial crisis some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming. But often, it can be overcome. A person’s financial situation doesn’t have to go from bad to worse. Professional help with debt is available.

Credit Counseling – Many credit counseling organizations are nonprofit and work with consumers to solve their financial problems. Most credit counselors offer services through local offices, online, or by phone. Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops.

Debt Management Plans – A debt management plan differs from credit counseling. In a DMP, you deposit money each month with the credit counseling organization, which uses your deposits to pay your unsecured debts, like your credit card bills, student loans, and medical bills, according to a payment schedule the counselor develops with you and your creditors.

Debt Settlement – Also known as debt arbitration, debt settlement is the process of offering a one-time payment toward an existing balance in return for the forgiveness of the remaining debt. For example, someone who owes $10,000 in credit card debt may have a debt agency approach their credit card company and offer a one-time payment of $6,000. In return for this one-time payment, the creditor agrees to forgive or erase the remaining $4,000.

National Debt Relief Program offers a free debt analysis which can be taken advantage of at their website:

www.nationaldebtreliefprogram.org

Credit Card Debt Settlement

Considering how many people in the world are deep in toxic credit card debt, it only makes sense to make use of the multiple debt settlement options that are available in the world. By beating the tremendous level of money that you owe, you can eliminate the chain that is hanging around your neck and help to regain control over your life.

Many people need help from debt settlement companies in order to minimize the money that is owed out to credit card companies as well as help to construct a more reasonable method of payment. Anyone who has considered utilizing a credit card debt settlement company would be wise to put forth the effort to locate one that can assist them in reducing the amount of credit card debt that is still owed. With all this financial stress plaguing the world and so many people being choked with credit card debt it is painfully clear that turning to a debt settlement company is a necessary consideration.

The idea behind credit card debt settlement is not particularly new, as it simply involves consolidating all of your debt into one loan and reducing the interest rate so that you can have a reasonable chance of actually paying off the amount that you owe. By utilizing the ultra-popular credit card debt settlement companies, you can come up with a solution to your problem and move beyond the extremely difficult fiscal situation that you have maneuvered yourself into over time. With all of these different types of debt settlement solutions on the table, it is easy to select the one that works best for you and receive the assistance that you require from the professionals. By consolidating all of your dues into one package loan and securing a lower interest rate, you can have far more success in reducing the amount of money that you owe on credit cards. Considering that the interest rate on your credit card payments is so inordinately high, it is easy to see that reducing this particular rate will help tremendously in your ability to repay what you owe.

Taking advantage of this extremely popular credit card debt relief program known as credit card debt settlement, it is obvious that there are many steps that you can utilize in order to reduce the problems with your credit and help to chip away at the debt that you have accumulated over time. Taking the first baby steps can be all that you need to do to begin negotiating a new debt settlement with a professional service that can assist you. Once you have taken this step into a bigger world, you will find very quickly that you are able to rise above and pay off your debts in a timely fashion. This monstrous debt can be very difficult to overcome on your own and it only makes sense to make use of the credit card debt consolidation companies in order to get a hold of your dire financial straits.

Once you have taken the first steps, you are certainly more likely to rise above spending problems, late payments, and any other issues associated with credit card debt as you will have learned much about managing money and debt.

Debt Settlement Companies

Debt settlement companies usually offer debt settlement. They usually focus on working with their clients creditors and collection agencies. debt settlement, by definition, is a negotiation process whereby the debt settlement company approaches your creditors with offers that are significantly less than the balance you owe. The creditors review these reduced offers and an agreement is reached that allows you, the debtor, to payoff the current balance for less than the actual amount owed.

A Debt Settlement program does not assume or pay any consumer debts, and does not provide tax or legal advice. This program not available in all states. You can not be told be the debt settlement company the percentage of reduction your debt will be reduce too. Be aware that not all debt settlement companies delivers all that they promised. Because the economic crisis that has made to many people to be borrowing has made this companies to be growing very fast.

Christian Debt settlement has the potential to save you thousands on lawyer fees as well as save your existing assets. You may get a good Bible thumping as well. The most effective way or strategy to get out of debt is the debt relief settlement program not minding the current changes in the banking industry.But for those how do not qualified for debt relief settlement has got other great options like debt management or credit counseling. National Debt can consolidate credit card bills into one low monthly payment while lowering the interest rate and stopping collection activity,and late fee charges and over the limit fees.

Debt Settlement is the fastest, most effective way to get out of debt! The debt settlement company will make sure your unsecured debt is reduce to 50%-70% by negotiating with your creditors. debt settlement is a lot about timing and planning, and it comes down to having the right amount of money at the right time in order to obtain the ideal settlement. Even with the best planning, however, clients must understand that every situation is unique and results do vary, so although the National Debt Relief company do give their clients estimates in good faith.

In debt settlement program your debt will be reduce and a plan will be set for you to pay the balance. The goal is to eliminate your outstanding debts. Debt negotiation services process can be lengthy or short depending upon the creditor’s prerogatives and willingness to help the debtor. However, the representative makes all efforts to work out a deal in which the net payable debt amount is reduced and some interest amount is waived off. Debt negotiation will only work for unsecured debt like credit card debt, personal loans or medical bills. Negotiating credit card interest alone could save you a pretty substantial amount of money because credit cards have compounding interest.

If you want to be debt free very quickly debt relief settlement is the option. debt settlement estimates of 50-60% are examples of past performance and are not intended to be a guarantee of future settlement results. Results may vary based on individual circumstances. If you want to be debt free very quickly debt relief settlement is the option. And there you have it. No ifs ands or butts.

Debt Relief Companies

As unsecured debt in America is continuing to become worse, more debt settlement programs are seriously popping out of the sky. As an American consumer in at least $10,000 in debt, you’ll be eligible for a debt settlement, but there’s a problem. That problem is that not all debt settlement companies are legitimized; some are just a front for fraudsters. Check with the Better Business Bureau. The Better Business Bureau is also referred to as just the BBB. It provides you with helpful information about programs including those focusing on debt settlement.

You can get general info about each programs as well as any complaints filed. A legitimized debt relief company won’t have any issues or those complaints will at least be resolved. Go to the Association of Settlement Companies : like the Better Business Bureau, this accredited organization is a good resource. When a debt settlement program belongs to this organisation, they can’t are deemed to be legitimate. Their progress and success rate is tracked and this is available on the TASC website. Most importantly, use your best judgment.

Scammers enjoy making guarantees they can’t keep. A top credit card debt settlement service can reduce your debt by as much as fifty percent, but this can not happen overnite; it might take weeks or months. You are customarily working with a scammer when they tell you otherwise. If you are wanting to get a debt settlement it might be wise to utilize a debt relief network rather than going directly to a specific debt relief service.

The top debt relief networks only permit Christian debt settlement program into their network who’ve got a successful record of negotiating debt settlements. They must also pass an ethical standards test to guarantee they are properly conducting business. debt relief networks are the most efficient way in locating the best debt relief programs.

National Debt Relief Program offers a free debt analysis which can be taken advantage of at their website:

www.nationaldebtreliefprogram.org

Credit Card Debt Relief

Many households are seeking credit card debt relief as a result of ballooning credit card bills. While some families have credit issues because of valid expenditures like during medical emergencies, most people are suffering from credit card debt simply because of negligent overspending. The goal of credit card debt relief is to lower the total amount that must be paid to the credit card companies by the person who is in debt. This by far is the most agreeable compromise for both the credit institution and the debtor; however, it is not the most accessible option to all.

Perhaps you or someone you know is looking at options to eliminate your credit card debt. Know now that not everyone who has incurred credit problems may be eligible for credit card debt relief. This is where availing of credible credit counselling comes in. There are some local credit unions and consumer protection agencies that can provide free assessment and advice to help you determine whether you are qualified for credit card debt relief services. Keep in mind the following points before getting assistance for credit card debt relief.

Prepare Your Budget Beforehand

All credit card debt relief programs require the debtor to be consistent with their monthly repayments. If a monthly amortization is skipped or becomes late, it may totally invalidate the debt relief agreement which would not only spoil the chances of settling the overdue account at a significantly lower amount or interest rate; it may also further jeopardize the debtor’s credit score.

Therefore, you must factor early into your budget the amount for monthly repayments. Even before the exact figure for repayments is determined, a very prudent budgeting is already in order. This will help you see whether you (and your dependents if any) would have enough to live on until you have completed your credit card debt relief program. Otherwise you must take specific measures to make your budget work with your estimated debt repayments included. Needless to say, cutting down on your expenses is a must. Also, it may be necessary to have additional sources of income to ensure that availing a credit card debt relief program would be a feasible option for you.

Communications Must Be in Writing

Whether you choose to avail of professional credit card debt relief services or to initiate a request by yourself to your credit card provider, make sure that all communications are in writing. There are some companies, particularly collecting agencies acting in behalf of the credit card companies, who conduct the transaction purely by phone without face-to-face contact or written documentation. This puts the debtor in a very precarious situation in the legal credit card debt relief Obama sense.

A lot of credit card debt relief programs sound too good to be true, but unfortunately most people in debt tend to buy in easily to the glossy marketing ploys offering up to 70% reduction in payable amount or becoming debt-free in as short as 3 months. Bear in mind that true debt counselor help comes with a demand for financial discipline and a lot of common sense. Seek the help of consumer protection groups and don’t go for short-cut solutions that may just lead you to more financial trouble than you can afford. Eliminating credit card debt is possible. It simply takes patience and some work.

National Debt Relief Program offers a free debt analysis that can be taken advantage of a their website:

www.nationaldebtreliefprogram.org

Credit Card Debt Settlement

If you’ve been a hard working, responsible Christian your entire life you can feel a lot of regret about owing your creditors so much money. It’s simple to get into debt without even realizing it or knowing how it happened. Many people spend money in between paychecks to make ends meet or to provide for their families better, the problem is it all comes at a cost that only puts pressure and stress on your family later on in life. If you’re going to get out of debt then you have to seriously consider a reasonable solution and maybe Christian debt settlement is the best option for you.

Christian debt settlement is just like any other typical settlement except there are firms that work with Christians and are run and staffed by Christians. This can be a really attractive prospect for people who want to work with a team that knows the law and knows what it’s like to have the regret and guilt of so much debt and having no way out. Believe it or not there are plenty of Christian debt settlement companies available that can help you and work with you to get the results you need and put you back on the path towards a productive and happy life.

Debt Settlement is a very simple process but not always easy. The process is also known as debt negotiation in some quarters. The way it works is by having an agency negotiate repayment with your creditors at a reduced rate. Some debt can be reduced up to 65% even. This means you will be forced to pay off much less debt and you’ll be able to do it in a much more organized fashion. If you’re dealing with collection agencies calling you at all hours of the day (and night sometimes) then many Christian debt settlement firms can help you to resolve this as well. Many creditors prefer the route of a settlement opposed to bankruptcy so there is a fair amount of room for reducing your debt and improving your financial situation through a settlement.

If you live in a small town or rural area you might have trouble finding a credit card debt settlement firm that is Christian owned and operated if you can find one at all. That being said going online is a great alternative you should take advantage of. There are Christian owned firms online that can offer assistance and quotes to help give you a better perspective on what your options are and what kind of plan you could set up.

Christian debt settlement is something you should seriously consider if you want to reduce the pressures associated with your current finances. A good debt settlement calculator is not needed. That’s what the professionals are for. They can work wonders for anyone who is desperate and looking for a way out and many people have had tremendous success using these types of firms to negotiate their debt. Once you’re out of debt you can start living a more fulfilling and productive life and even devote some of your time to helping others who are in the situation you’re in now.

Debt Relief Programs

In recent months, we’ve seen many regulators and legal authorities in jurisdictions across the country signify official concern that an increasing number of companies which operate in the debt relief cures business today, are essentially debt relief scam operations that are out to cheat and dupe an overburdened debt-ridden population in a bad national economy. The most recent among those, is Attorney General Andrew Cuomo in New York, whose office had subpoenaed some 14 debt relief operations and one law firm in May 2009 from across the nation for investigations into their debt settlement operations.

Recent Major Debt Relief Programs Scam Investigation by Online Review Organization

Quite coincidentally, that subject is, in fact, actually the subject matter of a recent full scale major independent investigation of the industry conducted by one reputable, independent online review organization that investigates online products and services or companies, especially in the debt cures business field, for their quality and authenticity. The results of that investigation is startling, showing that some 82.5% of the test sample group of website-based debt relief operations used (165 out of 200), were basically paying off debt. And that only 17.5 of them were of any legitimacy. There are some 12 companies nationally which the evaluations showed were of great quality, and one company that is of exceptional quality and rank exceptionally superior as the most trustworthy, and Number #1 debt relief company in America.

In its report of the findings of its investigations team just released in New York in mid May 2009, the Research division Director of the online research organization (see the link provided below at end of this article), stated that the review was prompted by the fact that,

“Consumers seem more and more today to be turning to credit counseling operations for ways to pay off debts in response to the current American economic recession… most of those companies are competing to out do each other in their claims that they have the best debt relief programs. In constant advertisements on the Internet, radio and TV, they purport to provide excellence and the best services to customers on ways to pay off debts… Consequently, finding a truly good debt settlement company by a consumer under such circumstances, is not at all an easy task.”

The report adds, “With so many companies out there, they all soon start looking and sounding alike after a while, as are their TV, radio, and newspaper ads. So, how in the world can the average person tell what are good debt consolidation companies from the bad ones or the debt relief scams?”

The Major Findings of the Investigation

Basically, using the rigorous evaluation and ranking system devised by its review experts, called the “Key Debt Relief Evaluation Criteria” or KDREC, the review team scored and ranked 12 debt management companies from across the country as ranking as the TOP DOZEN Online debt relief companies in the industry having the highest levels of professionalism, reliability and credibility in the critical criteria areas of evaluation for the industry — accreditation by the Bureau of Better Business and by recognized certification institution for the debt relief industry, professional reputation, charges and cost of service to consumer, results of company background checks on expertise, quality of personnel, personnel education and training, length of time in the industry, past record in the business and in delivery of the services, customer satisfaction, etc.

What are good debt solutions companies? And are there many debt relief scam companies in the online settlement industry?

Well, some of the detailed findings made by the comprehensive investigation conducted by the expert team of researchers commissioned by the organization, were quite startling.

Among the major findings, are the following:

“SUMMARY:

==Over four-fifths (some 82.5%) of the test sample group of website-based debt relief operations used (165 out of 200), were basically what you’d call debt resolution SCAMS or fraud operations — that is, they were merely worthless website operations that have no business at all on the Internet peddling any debt cures business to consumers, and at best bordering on fraud, with no value-added and absolutely the kind of sites that should be a complete no-no for any and all wise consumers to shop in.

==Just 17.50% of the 200 company websites reviewed in our test sample (35 of the 200) are legitimate American Jobs Act operations that are seemingly responsible business operations and fairly reliable, although the detailed extent of the quality of their services was variable in degree from one company to another.

==Some 12 companies in the sample group emerged, using certain defined additional evaluation criteria (such as the service affordability for the average person, security of website, evidence of large amount of savings to clients or whether company has successfully reduced millions of dollars of consumer and small business debt, customer satisfaction response times, flexibility of the program based on what a customer may have available on a monthly basis, etc), to additionally assess them, as the best drowning in debt programs, the very TOP DOZEN online debt relief companies in the whole country,

==Across the entire country, there is one company, located in San Diego, California, that stands way out over and above the shoulders of any others in the nation’s industry as the Number #1 ranked in debt company and program, the most reputable, competent and reliable one of its kind in the entire industry.

==From the research data from the field, when the option of debt settlement has been exercised for debtors through the hands of a debt settlement or debt consolidation company who is incompetent, or of staff that is inexperienced, consumers involved in those debts have often lost money, while some actually cause people to deteriorate further down to a worse financial condition and greater hardship which often force them to file bankruptcy, when, in fact, their purpose for going for the debt settlement option, in the first place, had been to avoid filing for bankruptcy. Thus, according to this report, this is the quintessential kind of customer who needs the most to avoid being an in debt scam victim.

The Critical Finding and Lesson from this Review…

Reached in an interview, the research director of the organization stated that “Probably the single most significant, in deed, eye opening, piece of finding that emerged from this investigative work is this. That,… trying to settle your credit card debt through using a debt settlement or consolidation company could be a viable and fruitful option for you by which you may frequently be able to significantly reduce credit card debt, or even totally eliminate it. In fact, debt settlement is often a very good idea for individuals who are having difficulties with keeping up with outstanding overwhelming credit card debts that never do seem to go away, and who would prefer to make a negotiated arrangement with the creditor for easier and more manageable repayments, but do not wish to experience bankruptcy filing because they probably conceive it as something that would have a drastic negative impact on one’s future credit.”

He continued: “However, results of the HDRR research investigations confirmed one startling fact. That, in large measure, whether this positive effect that we should expect to come from employing a debt settlement company actually results, in reality, for a particular debtor in a particular case, completely depends! If, for example, you choose the wrong or fraudulent debt settlement company to handle your relief plan and action, you may, in stead, find yourself in worse shape than you were before. Making sure to sort out, right before hand, scammy in debt help companies, is not only the easiest and simplest way to avoid being a debt relief scam victim. But, even more important, the surest way for debtors to reap tremendous savings and easier and cheaper payments on outstanding debts by them. Hence, it is critically important that you choose the right company, the ones with the proven best debt relief programs. Like any other industry, there are good companies, and there are bad companies.”

The central point for the consumer, any consumer at all, to understand who is in need of making the vital decision about employing the services of one of the online debt settlement companies, is this. The most critical task and challenge for you, is being able to sort out and find the proper debt relief company that does, in deed, have the essential experience, the history and record, and the skilled debt settlement counselors and negotiators, as to make that company reputable, reliable and trustworthy. And, in order for you to be able to do so and fruitfully accomplish this, there is just one basic essential PRECONDITION you’ve got to meet — do a great deal of investigation and research on the companies which operate in the industry on the various criteria for evaluation mentioned above.

“Given the mandate of this investigative review and research,” says the online review organization’s research director, “the task for the serious consumer or debtor to follow, is really simple and uncomplicated. It says simply that if you want to secure terms for repaying your debts at levels which could be quite considerably lower and more favorable for you or even tremendous, at times, and you wish to do so using a debt settlement or consolidation company, and to do so while avoiding falling victim to a great number of debt relief relief companies which abound, you must FIRST and FOREMOST be certain that you proactively search for and pick a right and reliable one. In deed, most preferably, the very best debt relief agencies there is. And to accomplish this, all you have to do – you must do – is do the proper and thorough research.”

He concluded: “We’ve tried in this HDRR review endeavor to make the resulting work product as thorough a study as possible. And comprehensive too, so that it would apply to and be usable in virtually any location in the entire United States. And, I believe we largely succeeded in that basic objective. Now, it would be up to consumers themselves hopefully to help themselves. They need not be victims of debt relief scamming. Rather, armed with the right knowledge, they can be – and should be – the victors in getting better debt settlement deals and terms, and better overall debt cures.”

For more on the report of this comprehensive debt relief industry investigation by the Honest Debt Relief Reviews firm, or a listing of the HDRR Top Dozen Best Online Debt Relief Companies, including the supreme Number #1 Debt Relief company in the nation, visit: INVESTIGATIONS http://www.HonestDebtReliefReviews.Org

Benjamin Anosike, Ph.D., has been dubbed by experts and reviewers of his many books, manuals and body of work, which dwell largely on self-help law issues, as “the man who almost literally wrote the book on the use of self-help law methods” by America’s consumers in doing their own routine legal chores – in uncontested divorce, will-making, simple probate, settlement of a dead person’s estate, simple no-asset bankruptcy, etc.

National Debt Relief Program offers a free debt analysis which can be taken advantage of at their website:

www.nationaldebtreliefprogram.org

Debt Settlement

Thank You for choosing to free yourself from your FINANCIAL SLAVERY!

“HOW TO TAKE THE LEGS OUT FROM UNDER THE CREDIT CARD COMPANIES, AND SAVE YOUR FINANCIAL LIFE WITH THIS INFORMATIONAL STRATEGY”

Reading this will have an immediate impact on you so please set aside time enough to read this thoroughly and make a conscious decision to better your situation.

With the information we are freely giving you can commit to proactively break the BONDS of FINANCIAL SLAVERY that has held you for a very long time.

The truth is…your financial house is easy to run. All you need to do is to understand how the Credit Card works and use them to earn FINANCIAL FREEDOM.

It is not important how you got here.

It is not important if you owe 10k or 1million in eliminating credit card debt.

If you can’t sleep at night, and wonder if you will ever be financially sound again, then you need this information.

If the stress of your debt is ruining your family, and your relationships, then you need this information.

If you thought you’d be better off financially, by now, then you need this information.

If you’re facing retirement, and can’t possible see how you will be able to maintain your current quality of life on social security, then you need this information.

DEBT SETTLEMENT IN A NUTSHELL!

If you decide to stop paying your creditors the way they want to be paid for the next 10-20-30 years the original creditor will then sell your consolidating credit card debt to a collection agency normally within 30-90 days from the first missed payment. During this time the original creditor will call you for payment and try and keep you as a client. If they get nothing from you they will sell your debt.

The creditor sells your debt to a collection agency for 2 reasons:

1. They get .20 cents on the dollar from the collection agency.
2. They get an additional .50 cents on the dollar from the government in the form of a tax break.

Therefore, the creditor gets .70 cents on the dollar, by selling your debt without you paying them a dime.

Let’s say you owe Capital One $1,000. If you do not pay them then they will sell you to collections for 20% of what you owe ($200). Then they turn around and get the tax break from the government for 50% of what you owe ($500). So they have made $700 on your $1,000 debt without you paying them a dime. Is a debt diet the way to go? Really?

Once your debt has been sold to a collection agency for .20 cents on the dollar, send a Cease and Desist letter. By law they will no longer be allowed to contact you. They do not have the same rights as the creditor because they are a 3rd party who purchased the debt.

Then tell the collection agency how you intend to pay them .40 cents on the dollar, giving them a 100% profit, in exchange, they will report to the credit bureaus that your debt was paid or settled. What if you are drowning in debt? What do we do then? Send out an S.O.S.? Does anyone even care? Probably not. This isn’t the Titanic. You’re not Kate Corsett and I’m not Leopardo DiCaprio.

Debt Settlement works by reducing the balance owed (principal) on your unsecured personal debt accounts through the time-honored process of creditor negotiation. This is different from simply reducing the interest rate as with Debt Consolidation and Credit Counseling, which do not affect the total debt balance. By reducing the balance itself, Debt Settlement provides a much faster means of becoming debt-free. Most creditors are willing to accept 50%, 40%, sometimes as low as 20% of the balance owed in order to close out an account rather than lose the entire amount in a bankruptcy proceeding. Because if you’re in debt, in deep, and need in debt help – all is good.

As a consequence of this approach, money that was previously wasted on endless minimum payments (most of which went toward interest charges) goes toward reducing the actual debt balance. That’s why Debt Settlement through negotiation is the fastest debt elimination method short of Chapter 7 bankruptcy.

If you cannot bear the thought of losing your financial dignity and loss of control by going through bankruptcy, then this approach is for you. Debt help, as we’ve already heretofore discussed – is yours for the asking.

While the debt settlement approach is not suitable for everyone, its flexible nature makes it applicable to a wide range of financial circumstances. For individuals and families seeking an alternative to bankruptcy, there is simply no better option to get out of debt. Here are a few guidelines to help you determine whether or not debt settlement is something you should consider

1. Do you have a legitimate financial hardship condition?

If you are over your head due to a hardship circumstance, and you’d prefer to work things out with your creditors rather than declare bankruptcy, then credit card debt settlement can provide an honest and ethical debt relief alternative.

2. Are you committed to avoiding bankruptcy?

Debt Settlement is best viewed as a bankruptcy alternative, one that allows you to keep control over the process and maintain privacy while working through your financial difficulties. As with most things in life, success is determined by your level of commitment to staying the course, even when the road gets a little bumpy. If you are likely to give up at the first rough spot, then debt settlement is probably not the best choice for you. But if you are determined to avoid bankruptcy, debt settlement will likely be the most attractive debt solution for you.

3. Do you owe more than $10,000 in unsecured debt?

Christian Debt Settlement is strong medicine for the soul, and it should be reserved for serious debt problems. While everyone’s budget is different, most people can work their way out of smaller debt obligations.

In fact, it doesn’t matter what mistakes you have made on your own, as it is NOT important at all. What matters now is HOW TO GET OUT FROM UNDER IT!

SERIOUS QUESTIONS AND ANSWERS

Q: What happens to my credit score?

A. The effect of the debt settlement process on your credit score will partly depend on your current credit status before starting. Few people with debt troubles have perfect credit to begin with. In general, your credit score (usually called the FICO score) will decline during the process, and will begin to improve again after you have become debt-free. There are several key points to bear in mind here. We recommend against applying for new credit while going through thedebt settlement process. It simply doesn’t make sense to take on new debt while you’re trying to tackle your existing debt problem. Shop around for a good debt settlement calculator. You would be amazed at the difference in prices offered by big box retailers versus your local mom and pop shop.

So the short-term decline in credit score is rarely a problem for clients. In addition, the credit score itself does not take into account your debt-to-income ratio, which is used by lenders (especially in the mortgage industry) to determine whether you qualify for a home or auto loan. In other words, you can have a high credit score due to a clean payment history (even though it’s killing you financially to keep up those payments) and still be denied a new loan because you already carry too much debt.

By completing the debt settlement process, your debt-to-income ratio will improve dramatically! Any way you look at it, the effects of Debt Settlement on your credit will certainly be less damaging than the 10-year derogatory mark made by bankruptcy. Staying current on mortgage and car payments will help your score.

Q: What are the tax consequences?

A. Financial institutions are required to report canceled debts over $600 (the portion forgiven during the settlement transactions) to the IRS, and the debtor is required to report that as income on their tax return. However, the IRS permits you to offset any “income” from canceled debts up to the amount you were “insolvent” at the time the debts were canceled. You are “insolvent” if you owe more than you own, or in other words, if you have a negative net worth.

If you’re deep in debt, it’s not likely that you have a positive net worth, so it’s rare that a client would have to pay taxes on the forgiven debt balance. The exception might be an individual with a high level of home equity, which might make the overall net worth positive and thereby eliminate the insolvency exclusion. However, this is the exception rather than the rule.

It is a likely circumstance that you might owe tax on the forgiven debt balance, you’ll still be way ahead of the game by eliminating your debt balances sooner rather than later.

Q: What about lawsuits?

A. While creditors have the legal right to bring a lawsuit for non-payment of a debt obligation; such lawsuits are far less common than most people think. It costs money to sue someone, and a legal judgment is simply a piece of paper unless there is a way to collect money against it. The threat of litigation, on the other hand, is all too common, even though debt collectors are not supposed to threaten legal action unless they are specifically authorized to bring suit. In general, lawsuits can normally be avoided, provided you are willing to work out suitable arrangements with your creditors through the negotiation process.

Contrary to popular belief, most creditors would rather work things out amicably in a negotiated settlement than spend more money taking a customer to court (with no guarantee of being able to collect on a judgment). That’s why thousands of litigation-free settlements are transacted every month all across the country. Creditors won’t admit it publicly, but Debt Settlement methods works much better for them than forcing people into bankruptcy through overly-aggressive collection techniques.

This information is for your use, however is not legally binding, and it is suggested that an attorney review any settlement you enter into. The worst-case scenario is that a you might be required to pay a debt balance in full in the event of legal action by a creditor. This is little different from the starting situation most clients find themselves in, and again, it is a fairly rare occurrence.

Q: Can my wages be garnished?

A. If you listen to some debt collectors, you might be fooled into thinking that they will seize your very next paycheck unless you make a payment right then and there. The threat of losing part of one’s wages to a garnishment action is truly frightening to someone already struggling financially. But this is mainly an intimidation tactic used by collectors to scare people into committing to a payment schedule whether or not they have the funds available.

Actual garnishment actions are relatively rare, and do not happen without advance warning. First, a creditor must bring a lawsuit, obtain a judgment, and then take an additional step to obtain authorization for the garnishment. Plus only one creditor can garnish your wages at a time. No one can take your paycheck without court approval, and you must be given notice of such court action through formal documentation. So don’t be fooled by one of the oldest collection tricks in the book.

Q: What are the differences between Debt Settlement and Credit Counseling?

A. The most important difference between these two aproaches is that with credit counseling, you pay back all of the debt balances, plus interest and fees, whereas with Debt Settlement, you pay back only a portion of your debt load. That’s why Debt Settlement is a much faster path to debt freedom (2-3 years) than Credit Counseling (5-9 years). This means a lot less money out of your pocket is used through the debt settlement approach.

Another key difference is that your Debt Settlement firm works solely for you, the consumer, and receives no compensation directly from the creditors. In other words, your debt settlement firm is truly on your side. With a credit counseling agency, there is a dual relationship, where part of their income comes from the client and the majority of it comes from kickbacks paid by the creditors.

This creates a built-in conflict of interest and creates doubt as to whose side the agency is really on. Also, debt settlement provides much more flexibility than credit counseling in both the monthly budget level and the types of accounts that may be enrolled.

For example, if you have a really tough month and need to skip a payment, that situation can be absorbed by a debt settlement process, whereas it will cause serious problems with a credit counseling process. Further, if your accounts have “charged off” and gone into the third-party collections cycle, you can still enroll those obligations in a Debt Settlement approach where they will be rejected by a credit counseling agency. Additionally, you can begin to work on the restoration of your credit score, that much faster, having completed Debt Settlement.

Q: What kind of debt can be negotiated?

A. As a general rule, any type of unsecured debt can be successfully negotiated. An unsecured debt is one that is not tied to a specific material item that could be repossessed by the creditor. So an auto loan, for example, could not be included because the creditor could legally repossess the vehicle. Credit card debt, medical bills in collections, department store cards, signature loans, unsecured lines of credit, and revolving charge accounts are all types of accounts that can be included in our program.

The main exception here are student loans, which in most cases are government backed loans that cannot even be discharged in a bankruptcy proceeding. (Private student loans that are not sponsored by the government can be included.)

Q: What if a creditor won’t negotiate?

A. Debt Settlement entities have established contacts with the major banks, collection agencies, and collection attorneys. Debt settlement is recognized as a viable solution by collection industry professionals.

In the rare instance where a creditor balks at accepting a reasonable settlement at the time it is proposed, it is often a matter of simply waiting for a different phase of the collection process. Some creditors are more inclined to play “hardball” than others, but virtually all of the major institutions eventually sell their accounts to collection agencies in order to get what they can for the account. Since the collections agencies acquire these accounts for pennies on the dollar, they are more inclined to accept a reasonable settlement offer, which still represents a profit on their purchase.

Q: Are there debts that can’t be negotiated?

A. Secured debts cannot be settled. This includes home loans, second or third mortgages, equity lines of credit, auto loans, and financing contracts tied to a specific piece of property that may be legally repossessed by the creditor. Federal student loans, although unsecured, must also be excluded from settlement. In addition, Federal and State taxes cannot be included.

Q: Can I do this myself?

A. Yes, it is certainly possible for a consumer to negotiate his or her own debts. However, there are several important factors that should be taken into consideration before making such a decision. First, do you have the time? For individuals with serious debt problems, the complexities of the negotiation process can be very time consuming. Many people simply do not have the time to add this labor-intensive task on top of an already busy work schedule. Second, it requires a certain kind of psychological toughness to haggle with creditors.

The average consumer is hampered by the embarrassment and shame they feel over having gotten into trouble. With all the tricks, traps, and pressure tactics used by creditors, most people will find themselves better off with professional assistance. Third, as with any profession, there are techniques not easily mastered by an amateur. Without professional coaching, the likely result will be high-percentage settlements in the best case and outright failure in the worst case.

When you consider that the total payout including professional fees will still be far less than your original balances, it makes more sense for the average person to obtain debt help from Debt Settlement entities.

Q: Don’t I have to pay taxes on the money I save?

A. Yes you may have to pay income taxes on the amount you save, but this amount is usually still much less than the amount you would have paid in interest. Check with an accountant for details.

Q: What if I leave accounts out Debt Settlement

A. We do not recommend leaving any accounts not settled, for two reasons:

1. There is a good chance the credit company will see delinquencies on this or on your other accounts and close your account anyway.
2. It makes it extremely difficult for us to negotiate with some creditors if they see you defaulting on their account and not others and hurts the settlement process.

Having an ATM/debit card that is also a VISA or MASTER CARD tied to your checking or savings account is a good alternative that will leave you with a credit card you can continue to use without affecting this process.

Q: What credentials or affiliations should a consumer look for regarding a Debt Settlement company?

A.Debt Settlement companies should be members of a professional organization that specializes in this type of debt settlement negotiation. Including The Association of Settlement Companies and our Professional Debt Arbitrators and Trained and Certified by The International Association of Professional Debt Arbitrators.

CODE OF ETHICS

These practices should be followed and aim to improve the industry with Best Business Practices for Debt Settlement.

1. Debt Settlement Specialists DO NOT TELL PEOPLE TO STOP PAYING THEIR CREDITORS! They should say that our clients make an independent decision to stop making monthly payments. This is a small technicality. and the sooner their account goes into collections the sooner it can be settled.

2. Debt Settlement Specialists CAN’T STOP THEIR ORIGINAL CREDITOR FROM CALLING! Collection Agencies should be stopped with the Debt Settlement process. Until the debt is sold to a collection agency, the original creditor has every right to call.

3. ONCE WE SETTLE EACH DEBT WITH THE COLLECTION AGENCY, IT WILL SHOW ON THEIR CREDIT REPORT “PAID” OR “SETTLED”. It will NOT show paid in full. Also, once paid, their credit report will show there were collection agencies involved and that their creditor charged them off.

4. WE CAN NOT STOP THEIR CREDITORS FROM ADDING MORE INTEREST, PENALTIES OR FEES AFTER THEY ENTER INTO DEBT SETTLEMENT. Settled amounts are those that were owed at the time they started.

5. IF THEY ARE CURRENT WHEN SETTLING DEBT, IT WILL INITIALLY NEGATIVELY AFFECT THEIR CREDIT SCORE! If you already have accounts in collections, it may have little or no effect as it has already been tarnished. If they continue to make mortgage or car payments that will help, however, the bottom line is that this will only be temporary.

6. IF THEY ARE PLANNING TO BUY A HOME, GET A CAR LOAN OR ANYTHING THAT NEEDS DECENT CREDIT. If you are current on their bills, you should wait until after they have completed those types of transactions to realize the full depth of the financial picture and then enter into a debt settlement process after. Advocating that would run counterintuitive to the essence of debt settlement. Many are being declined for mortgages or cars, etc because of old bad debt in collections that haven’t been paid in years, if ever. An accelerated option should get everything cleaned up and settled saving them thousands of dollars in pay offs. Additionally settlements can be paid sooner that the date negotiated based on your payment plan, without penalty.

7. YES, YOU CAN BE SUED BY STOPPING PAYMENT ON DEBT! Absolutely one can be sued! Clients should be instructed to answer the law suit and by going to court, the court will acknowledge they owe the money. It is an unsecured debt, so basically the creditor is right back where they started. Negotiated settlements on these accounts that can lift garnishments or liens when paid.

8. CAN THEY GARNISH THEIR WAGES? Absolutely! You can have your wages garnished in some states (for example, they cannot garnish wages in TX) and there’s nothing we can do about that. Settlements may be made with that company through to get the garnishment lifted. The creditor would much rather get a lump sum settlement than get a little bit of money each month. Keep in mind that only one creditor can garnish wages at a time.

9. CAN THEY PUT A LIEN ON THEIR HOUSE? Absolutely! If a creditor places a lien placed on someone’s house, they cannot collect any money unless the house is sold. Settlement with a lien holder may lift the lien altogether.

10. THIS IS A BANKRUPTCY ALTERNATIVE! Remember folks, this information is to help people who basically are drowning in debt and have little alternatives as far as solutions go.

11. PREDICTING CREDIT SCORES IS IMPOSSIBLE! Debt Settlement Specialists don’t know what someone’s credit score will be when they finish their negotiated debt payments. It is clear that it will drop once you begin it, and should improve once finished.

12. ARE THERE ANY TAX LIABILITES ON THE DOLLARS THAT ARE SETTLED? Yes, there can be. If someone has a negative net worth, which is most of our clients, then they most likely will not be responsible for taxes on the money we saved them. We are not accountants, and don’t dispense advice as if we were. Simply consult an accountant if this question arises. Bottom line, if you are responsible for any taxes, you are better off having to pay taxes on a percentage of what you didn’t have to pay on their original debt, than have to pay 100% of what you originally owed.

“WORRYING ABOUT YOUR CREDIT SCORE WHEN YOU ARE DROWNING IN DEBT- IS LIKE WORRYING ABOUT WHAT YOUR FRONT LAWN LOOKS LIKE WHEN YOUR HOUSE IS ON FIRE!”

National Debt Relief offers a free debt analysis which can be taken advantage of at their website:

www.nationaldebtreliefprogram.org