Negotiate credit card debt » Debts

Understanding Judgments: What to Do Now You’ve Been Served a Summons to Appear

admin — Sat, 13 Nov 2010 06:28:17 +0000

Let’s assume the Sheriff or that seedy character has caught up with you and now you have this formidable stack of legal papers in front of you. What are you going to do now? Who do you call? You’re only human and probably too embarrassed to talk to anyone so you put the stack of papers on the dresser and forget about them. That is a big no-no. Why is this? When you finally read the stack of papers you need to take note of the very first sentences. Here the court is informing you and the person suing you there is a pre-trial conference scheduleded.

This simply means there is no trial date set yet. There is a way for the court to bring both parties together to try and negotiate a settlement. Now isn’t that strange? Here I am trying to teach you how to negotiate your debts and here’s the court system ORDERING both parties to try and negotiate the debt. My, isn’t this ironic in that you have waitied for the legal system to order you to do that which I am trying to teach you.

I will say this one time. It is very important to understand that you finally have an opportunity to talk to someone about your past debt, whether or not you owe the amount being sued for or not. Remember when the moron called you on the phone, berating you for not paying your debts? You were very honest and wanted to talk to someone about how much you owed and whether or not you could make a payment arrangement. But you got stuck with the village idiot who wasn’t in the least interested in your plight. This why I don’t want you to talk on the phone with, or heaven forbid, call a bill collector.

If you do not have any money to pay the bill, you can always negotiate a settlement. Be prepared. Bring a copy of your paycheck, car payment, rent payment, phone bill and all other bills. the meidator will figure out how much you can afford to pay on a bill and in most cases the suing party will accept the mediator’s award. If you are not prepared, how can anyone determine your ability to pay?

REMEMBER THIS! If you do not how up to mediation you will automatically lose. The judge will not have even seen the case. Just because you failed to show up the opposing party automatically gets awarded whatever they asked for. Whether or not you owed anything, they will get it. So is it worth it to show up and defend yourself? Absolutely. Even if you do not have any money, the courts will always work out something that is fair.

In my next article we’ll finish up mediation settlements and move on to the actual court appearance.

By: Chuck Lunsford

Help To Negotiate Debt Settlement

admin — Fri, 01 Oct 2010 19:20:02 +0000

There are a lot of ways to get out of debt and to help your credit rating. It depends on your personal situation, but you maybe able to get help to negotiate debt settlement. Credit consolidation is another great option for almost anyone. You need to remember that personal finance is your responsibility. You will have to learn all the steps it takes to repair your credit and get out of debt before you can really understand the process. You also want to make the situation as uncomplicated as possible. You will learn how to be self-sufficient and rely on yourself when you can get out of debt. This is always a stressful situation, so you want to do everything you can to minimized the stress for you and your family. No matter how stressful being in debt is, it is a lot less stressful than actually being in debt.

There are many different ways to get out of debt, so it is worth it to explore all the possible options you have in terms of getting out of debt. You need to think of all the assets that you have and how you can make them work in your interest. Owning a home can be a great asset and can really help you get out of debt. You might want to take out a second mortgage on your home to help you get the capital you need to get out of debt. You should also think about all the insurance coverage that you have and see what it can do for you. You’ll want to see if you can borrow against your life insurance policy. If you’ve paid a lot into your life insurance policy, than this would be a great solution for you. You might also be able to take money out one of your policies if you are sick or have been injured. This could help you pay off your debts or take care of certain expenses that you might have. It is important to explore all the options that you have before you decide on one. You need to find out exactly what you are getting into before you sign anything.

You might want to consider different type of assets other than your home or your insurance polices. Think about your car. Do you pay a lot each month in car insurance, car payments, or car maintenance? This could be a great way to get out of debt if you can sell your car. If you live in a city where there is good public transportation, you could save lots of money each year by living without a car. Sometimes your job may help to subsidize your transportation to work if you take public transportation to the office each day. You should think about any way to get out of debt and get your life back in order.

By: Johnathan K. Bakers

Credit Card Bankruptcy – How to Use the Threat of Bankruptcy to Negotiate Debt Settlements

admin — Sun, 08 Aug 2010 21:02:56 +0000

If you think that the only option left in front of you is credit card bankruptcy, take some time out to think from your creditor’s point of view. You can see that if you don’t pay your debts for a long time, it might prove to be of an added advantage to you. A creditor, who hasn’t received any payment for last one year or so, is more prone to accept, even if you offer to settle the debts with a 30% repayment. This is because it will save him/her from chasing you for another year instead. This may not apply to all kind of debts and then there are ample chances of the creditor suing you or getting a judgment to garnish your salary.

But more often than not, credit card bankruptcy isn’t your only option because creditors are willing to reach a settlement. Once you start receiving calls from a different collection agency, it means that this is a fresh attempt from the second creditor and that the first creditor has already given up. Naturally the second creditor will be keener to reach a settlement with you. So, the more you stretch time and at the same time accumulate money, the more are your chances to get rid by settling for a smaller amount and paying it off at once.

Don’t forget to inform the lender that you are thinking of filing for credit card bankruptcy and once that happens, he/she doesn’t stand a chance to recover any amount from you. At least that is what happens in most cases. Here again, timing is important because if you file for bankruptcy, the lender will have to be in queue to collect and that might take a much longer time. The creditor knows how filing for credit card bankruptcy can further complicate things and is likely to negotiate debt settlements.

But keep it in your mind that you are only using bankruptcy threat as a weapon, and don’t start giving it a serious thought. Credit card bankruptcy will affect your credit rating in a very negative light. It will be almost impossible for you to arrange for any loan or mortgage for the next 7 to 10 years. However, creating this impression is very important, to show how desperate and helpless you are, and as a result, the creditor is much more likely to accept the settlement figure that you are offering.

By: Sankalan Baidya

How To Avoid Bankruptcy & Get Out Of Debt Faster Using Debt Negotiation!

admin — Wed, 23 Jun 2010 08:31:57 +0000

Has credit card debt got you thinking about bankruptcy?

You’re not the only one these days. Even with the new bankruptcy laws, credit card debt continues to climb. Unfortunately for most of us, our paychecks don’t climb as quickly.

If you’re on the verge of bankruptcy, you may have another alternative.

Debt negotiation is a process where you negotiate with your creditors to pay off your debts at a reduced amount – for example, if you owe $12,000, you can negotiation a payoff of $5,000. The benefit for the creditor is that they get more money than they may have through bankruptcy, and they get the money sooner. The benefit for you is obvious – you get out of debt faster, and save lots of money in interest.

Where do you get the money to pay off the debt?

Take the money you would have normally used to pay your credit card bills, put it aside, and when you accumulate enough to pay off the debt, send in the reduced amount you agreed to.

If this sounds confusing, that’s ok. It’s really not.

There are many professional companies that will do all the work for you, and charge you a percentage of the savings.

I can speak from experience (I built up a lot of debt trying to start a sporting goods business, which didn’t quite work out) that even with the fees, this is a good deal – plus you save a lot money by not having to pay the high interest rates on your credit card bills.

Sure, it is a more aggressive approach to getting out of debt than making minimum payments, using credit counseling, getting a debt consolidation loan, or borrowing from a friend or relative. But in the end, you’ll get out of debt faster…

And avoid bankruptcy!

If you’ve never heard of debt negotiation (also called debt settlement), that’s ok too, not many people have. I didn’t until I began to seriously consider bankruptcy.

One reason many people are hesitant to consider debt negotiation is that it goes on your credit report. Sorry to tell you, but having lots of debt (even if you pay on time), making payments late, even credit counseling – all go on your credit report and can negatively effect your credit. And (of course) bankruptcy is a big negative!

In my case, getting out of debt, removing all the financial stress, and being able to live a normal life were well worth it. With so much debt, having good credit was meaningless anyway.

Plus, I was able to get all but one of the negative items off my credit report (that’s a topic for another discussion), and my credit is now back to normal. In fact, I now get more credit card offers than I can handle – and fortunately, I can now throw them all in the trash!

When money is tight, and debt is high, there aren’t many simple answers.

But if you are already considering bankruptcy, then debt negotiation might be the right alternative to help you get out of debt faster!

By: Kris Bickell

How to Negotiate a Debt Settlement – The Best Tutorial!

admin — Sat, 19 Jun 2010 06:10:28 +0000

If you want to learn how to negotiate a debt settlement and do not know where to start, this article for you.

Negotiate on terms

There are a number of programs which enables you to understand how to negotiate a debt settlement and what is the best and effective way of doing it. Starting from the basic you will find that it is important to negotiate on terms to finalize the deed. It’s not a tough one and you can actually master the terms and conditions and soon you will learn how and on how much to settle.

Don’t be hasty

Never try to rush on one while negotiating on a debt settlement. Strategically go with “Wait and Play”. Don’t rush behind the ball because it is possible that in a hurry you make a mistake which will cost you in shape of your precious money and some of the time more than that. When learning how to negotiate a debt settlement, it is important to stay focused, calm and just don’t agree on vague and expensive grounds when you don’t want it to.

Always go for a cutback

Always remember that it’s not just about the minimum amount of the payables but it’s also comprises with an average of 30 to 50 percent of total debt which in case of creditors they are not willing to leave and put you under pressure so that you leave the bargain and do as they want. So always go for a cutback on your debts and never let them take that away from you.

Document and file

Whatever you do, do document it and file it. Documenting every step will help you in future how to negotiate a debt settlement. After all it’s your private data and you should keep track of all the information related to it. In future if you deal with a settler or try to do it by yourself make this clear at this level that all the documents are there and intact to be compliment your case.

By: Jerry Cole

Difference Between Debt Negotiation and Credit Counseling

admin — Tue, 27 Apr 2010 12:29:09 +0000

When looking for a way to settle debts, undoubtedly you will come across these two options. Basically debt negotiation is when you negotiate the debt with your creditors. This can either be done by you personally or you can get help from the professionals. This plan is normally chosen by consumers who have trouble making their minimums each month. A new payment plan will then be worked out which might include the following:

How To Deal With Creditors And Negotiate A Debt Settlement

admin — Mon, 26 Apr 2010 08:58:57 +0000

A mistake many people make is try to avoid having to deal with creditors. Once the realization that they are in financial trouble hit, they imagine that by dodging their creditors the problem will just go away.

This is the worst thing anyone who find themselves in this position can do. Do not wait until you start receiving final demands. It is not the easiest thing to do, but contacting your creditors — don’t forget the utility companies — as soon as you have a problem paying your bills, should be first on your list.

Creditors are usually not the ogres we consider them to be. In fact, most creditors understand that things can go wrong. They appreciate honesty and most will go out of their way to accommodate you and help find a solution.

You can get a debt management company to assist you in sorting out your finances and repayment of debts. This will mean you do not have to negotiate with creditors yourself. However, considering the substantial setup and other monthly fees you have to pay them, this option could cost you much more than it is worth. Should you decide to take this route, do your homework and make sure you find a debt management company of long standing with a good reputation.

There are free services available to help put you back on the road to a healthy financial position. The Consumer Credit Counseling Service (CCCS) and Citizens Advice Bureau (CAB) both offer advice at no cost. They will also talk to your creditors on your behalf and negotiate payments that you can afford.

If you decide to deal with creditors yourself, following a plan can make things much simpler. Start by making a list with the following details:

Creditor name. Contact details. Reference/account numbers. Amount owing. How much you can afford to pay on a monthly basis — carefully calculate your financial situation and decide what you can afford to pay each creditor. Other pertinent information. A financial statement, detailing your income and all expenses. A budget.

Draw up a letter with your name, address and telephone numbers at the top. Include the correct details for every creditor, especially the account and/or reference numbers.

Explain why you cannot meet your financial obligation. Spell out what you are able to do at this stage. Do not commit yourself for anything more than you can afford. If you cannot afford any payment, ask the creditor to stop interest and allow you a leniency period with no payment of three to six months. Alternatively, offer a token payment (even if it is only $1 per month). Undertake to keep the creditor up-to-date should your financial situation change — and do it! Be honest and straightforward in your dealings. Keep records of every letter your write or receive, as well as phone calls. Keep your promises and make payments when they are due.

Getting into financial difficulty is often easier than getting out of. However, if you keep a clear head and accept your responsibilities, not all is lost. Don’t try to ignore it, deal with creditors and you will sleep a lot better.

By: Paul Sarwana

Finding Help With Debt Problems

admin — Sun, 25 Apr 2010 18:13:15 +0000

As more people struggle with their finances, finding help with debt problems has become more readily available. Sometimes we go through things in our lives that cause our finances to get out of control. But we do live in a time when we do have debt relief options that will help a person find debt freedom in a reasonable amount of time.

Debt settlement is one of the options available for helping you get out of debt. This solution is best suited for individuals that have a large amount of debt with limited resources for repayment or for debts that have been charged off (debts that have not had payments made in 6-9 months).

Debt settlement is a debt solution where your balances are reduced through negotiation with your lenders. For someone who has a lot of debt, this can save a lot of money. Most debt negotiation programs will have their applicant’s debt free in less than 3 years. This is a much more desirable situation than paying hundreds of dollars of interest over several years.

You must understand that debt negotiation will not be friendly to your credit, but if you have not made a payment in over six months, your credit report has already been negatively affected. The best thing you can do is get out of debt as quickly as possible and then you can begin the process of repairing your credit.

Another thing you must be aware of is that you will be taxed by the federal government on any amount over $600 that is eliminated from each single account balance. The IRS looks on the amount that you do not have to pay as income and they want their share, but here again, you are still saving money by settling your debts.

It is important when you are settling your debts that you get all agreements in writing. When the negotiated amount of the debt has been paid, you will want to get a release of debt from whoever is holding the debt. This is the only proof that you have that states you have satisfied the conditions of the agreement.

Debt settlement negotiation is an option that works best for someone that is considering bankruptcy or has very old debt. There are better debt relief solutions for individuals who have been making their payments or have only recently fallen behind on payments.

The important thing is that you get debt help if you need it, delaying the inevitable only makes thing worse.

By: Marjorie Salada

Decrease Daily Debt – Top 10 Ways

admin — Wed, 21 Apr 2010 07:06:06 +0000

Home is where the debt is.

Debt reduction is about spending less money so you can pay off your current debts while not accumulating more debt. Car payments, Christmas shopping, and credit cards enable the amassing of debt rather quickly. When bills are coming every day and you don’t know where to turn or how to save any more money, look at your own home.

Everyday, you leave a light on. You turn on the air conditioning or you turn on the heater. You take a bath. Daily living requires spending of your money, whether you realize it or not. Daily living is the first place you can start reducing your debt.

Cutting up credit cards is an easy decision. Limiting yourself to a budget is an easy decision. What about fixing a drippy faucet or turning the heater down a few degrees? These actions don’t seem like they could save you much money. In fact, you could be saving a lot by doing just 7 to 10 things around the home.

No one likes being in debt, yet most people are in debt. The hardest part of getting out of debt is deciding on getting out of debt. You have two choices, may more money or reduce your daily spending. What can you do in your daily living that could reduce your debt?

There are 10 easy steps that you can follow that will decrease your daily expenses and move you towards debt free living.

1. Cancel television services or reduce the television subscription with a smaller channel package. Reducing the package can easily trim your cable television bills by $20 a month. Dish subscribers could save a lot more. The best way for reducing costs is by dropping the pay channels such as HBO and Showtime.

2. Use energy-saver light bulbs. These are more expensive than regular light bulbs but last years longer – enough to pay for themselves over regular bulbs several times over.

3. Recycle paper items like envelopes and one-sided paper for use as shopping lists or scratch pads. Paper is getting more and more expensive. Debt can be reduced when recycled items are being used.

4. Use rechargeable batteries. Current portable electronics are burning through batteries at a rapid pace. You’ve probably got battery operated alarm clocks, caller-id boxes, wall clocks, and other items that could benefit as well. By using rechargeables, the environment wins and so does the savings account.

5. Reduce the recommended quantity of cleaning products. It’s a matter of trial and error. Start by reducing amounts in half. This works with shampoo, shower gel, dishwasher detergent, etc. You could save from $20 to $100 per month with this method.

6. Don’t leave electrical products on standby. A plugged-in toaster still gets a little bit of electricity. Every bit of savings helps. A fire department official said toasters cause quite a few fires each year. Save money and your house!

7. Don’t have the heat on and the windows open. This is easy to do during the months where the temp’s jump up and down.

8. Take a shower instead of a bath. You’ll cut down on your water bill. Quick showers save time as well. Also, set your hot water tank at 60 degrees.

9. Turn your central heating thermostat down by one degree. Every little bit helps…and it makes a big difference in your monthly heating bills.

10. Turn off lights if you are not in the room. Many new homes have ceiling fans with light clusters. Therefore, you could be burning four light bulbs at once in an empty room.

These 10 steps can decrease your daily spending which provides more money for paying towards other debts such as credit card debt.

Get out of debt – you can do it! Start with these 10 easy steps. Review your finances in a month and you’ll see the difference.

If you don’t know how to attack your debt problem or don’t understand the in’s and out’s of debt reduction, the internet provides a variety of great resources. Take the time to understand the facets of debt reduction and you’ll be better off.

By: Chris Huff

How To Negotiate Debts – Beat The Collectors At Their Own Game

admin — Wed, 21 Apr 2010 04:51:18 +0000

Now for the what might be the most popular article of this series. I personally was shocked and amazed by what I learned during my research on consumer debt. Read on and learn more about your rights.

Most Americans are worried about bill collectors calling on the telephone and harassing them. In fact, some Americans have even agreed to send money to complete starngers because they felt the stranger had some mystical power over them. Maybe they were threatened. Average people succumb to collection activity that coerces them into paying, perhaps out of fear.

How many of us simply cannot wait until the mailman shows up? Yeah right. It seems that we have a sixth sense about knowing what is in the mail. Without the use of a scanner, we seem to know which envelope contains a check, a letter from a friend, a card from Aunt Sue and a nasty letter fom a bill collector or attorney. These are letters that we fear most. For some reason we place them on the coffee table to be opened later. Maybe we wait until our spouse goes to sleep. After all, we don’t want them to know the bad news.

Sometimes we place them in a drawer for safekeeping. That’s right. We sure don’t want to lose them. Who knows, someday we might get enough courage to open them.

Here is how the collection scenario plays out. It is easier to collect money within the first 60 days because it is fresh in your mind. that is when the collection folks will put on the pressure. Believe me when I tell you that they know more about your situation than you might think. They know whether or not you have a job, whether your wife is working and whether or not you use your credit cards and whether you make mortgage and car payments. They also know how much your payments are. So when I tell you they know the odds of collecting from you, that is true.

What do you do? Well, I’ll tell you the very first thing to do. DO NOT TALK TO THE BILL COLLECTOR ON THE TELEPHONE! Inform them that you are going to notify their agency to communicate with you in writing only. This is your right under the Fair Debt Collection Practices Act. If you think that you have extra special skills on the telephone and have that desire to out-talk a collector, you might want to think again. They are trained in the art of convincing people to give them money. They also have the added incentive in that they are all on a commission basis.

They could care less if the baby is sick, or your spouse missed a few days of work. They only want what you have and that is money. Your best plan of attack in resolving these issues is to get them in writing. By doing this you can virtually turn bad debt into good credit.

In my next article I’ll address just how this turn-around is accomplished.

By: Chuck Lunsford