by BlondieWrites on February 6, 2010
Medical debt plagues many households across the country and can often contribute to the terrible level of debt that many families and individuals are facing. While, medical debts can be erased with bankruptcy and other extreme measures, it’s important to take the time to exercise other options of debt management beforehand. The three main forms of debt management are debt consolidation, debt negotiation and credit counseling. In this article, we are going to focus on credit counseling and how finding the right credit counselor can help build a smart plan to pay off your medical debt and save your credit rating in the process.
Credit counseling is a great way to learn more about debt management and find a way to work with your medical creditors to find the best way to deal with your level of and specific kind of debt. Credit counselors should offer a variety of choices for you to work with your self or offer additional services that include them negotiating or working on your behalf.
Before you find a credit counselor, you need to understand your level of debt. First, make a list of all the medical debt you have and you should include the following information for each medical account: creditor, creditor contact information, interest rate, monthly payment and current balance. Second, take a deep breath and add it all up. This may be a hard number to face, but you need to be honest with your self and your credit counselor in order to face your medical debt head on and find a reasonable solution.
Once you are ready to find a credit counselor you should take the time to do some research to find a credible credit counseling company with reliable, certified credit counselors working for them. You should not be asked to pay for anything until the services have been completed, but you should have the opportunity to consult about what the fees will be so you can prepare for them at the end of the relationship. Your credit counselor should share all your options with you and give you the information to complete the tasks on your own, but also remind you they would be happy to complete them on your behalf if you are uncomfortable dealing with creditors. This is often the case with many people, so most credit counselors are trained to negotiate and deal with creditors.
Look on the website of the credit counseling companies you are most interested in and review their information and check for real customer testimonials. These are both important components when ensuring you are dealing with a credible company. Also, look for certifications, staff information and full contact information. When you are ready, set up a consultation (which should also be free) to go over your particular medical bills and hear the ideas and recommendations that credit counselor has, then you are prepared to start on your plan of action to get out from under your medical debt.
Don’t let medical debt set the stage for your future financial endeavors. Take a stand against your medical debts and find a way to stare them down while still preserving your future borrowing opportunities. Good credit is a privilege, not a right and needs to be earned with smart financial decisions and planning. Everyone makes mistakes, it’s how quickly you learn from your mistakes and the honest measures you take to correct and pay for your mistakes that show the kind of future borrower you can be. Take the time to learn from your credit counselor about how to make smart financial decisions and learn to live within your means. Creditors appreciate contact and payment, take responsibility by providing both and work with a credit counselor to put a plan into action immediately on your way to finding relief from your medical debt.
Popularity: 3% [?]
by BlondieWrites on February 6, 2010
Credit card debt is the number one form of debt in the country and every day more and more Americans are finding themselves in deeper and deeper with credit card companies. When the payments seem high and many and the interest rates are beyond comprehension, you may be looking for relief. Debt negotiation can bring relief to the situation and allow you to fight for your hard earned money and still make your creditors happy.
Debt negotiation is a form of debt management that allows for the debtor or a representative of the debtor to negotiate the terms of the loan with the credit card company to reach a settlement amount and form a pay off or reduce the interest rate, thus bringing relief to the debtor. What this means for you is a way to pay off your credit card balance while saving a little money or by bringing relief to your monthly payments and shortening the amount of time it takes to pay off your balance by decreasing the interest rate.
The first step to successful debt negotiation is to know as much as each of your credit card accounts as possible. Pull out all the information for each account you have a make a short list of the following information for each account to have readily available when you call. You need to have the account balance, monthly payment, interest rate, creditor and full creditor contact information. Knowledge is power in this instance and the more you know about the company and how the company compares to your other accounts, the better the negotiating power you have.
While, credit counselors are trained in the art of debt negotiation and if you are absolutely unable to make the calls and negotiation yourself, you can find a credit counselor who offers debt negotiation services and have them make the calls for you. With that said, with a little courage and some confidence you can negotiate your own account and contracts with great success and a few tips.
Tip #1: The most important thing to remember when negotiating with your creditors is that you MUST be speaking with someone authorized to make changes to your account, otherwise you are wasting your time. Only certain supervisors are authorized to offer settlements and make changes to accounts and most people you talk to are only there for customer service and billing calls. Ask for a supervisor or account specialist before starting your pitch.
Tip #2: Put together some pay off money and know your back up bargaining chips. The best thing you can do is offer a pay out or settlement offer. To do this you need a lump sum that you can pay them to settle the debt if they agree. If you are unable to offer this, then you need to have the information in front of you to negotiate other conditions like a lower interest rate. For this you should have other credit card offers and accounts in front of you to offer what other companies are offering you. Many credit card companies would rather meet a lower interest rate, than lose your business.
Tip #3: Don’t take no for an answer. What this means is that if they don’t go for a settlement or pay out option, don’t give up. Instead ask for a lower interest rate or a loyalty credit to your balance. If they are resistant to lower your interest rate tell them you have other offers that you have been considering transferring your balance to that offer a lower interest rate. They will often at least match it, if not beat it. Even if your account is default, they would rather you stay with them and pay it than close the account and leave their company.
Debt negotiation can be a great tool for lowering your interest rates, monthly payments or finding a way to pay off credit card debt. These tactics can all bring success when partnered with a confident attitude and understanding of the credit card industry. With a little work and negotiation you can be well on your way to a life without credit card debt.
Popularity: 3% [?]
by BlondieWrites on January 4, 2010
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Popularity: 3% [?]
by BlondieWrites on December 16, 2009
In today’s society, we tend to accumulate debt without giving it much thought. That was once seen as a sign of severe irresponsibility. But it has become so common these days that it seems more like a matter of mimicking what we see around us than a character flaw.
With consumers getting into more debt than ever before, it’s no surprise that many have no idea just how much debt they are in. They get the bills each month, but instead of looking over the finance charges and account balance, they only take note of the minimum payment. Bill collectors might call to remind them of their balances, but those who are in over their heads often let the answering machine get it rather than talking to them.
Whether you’re managing your debt well or struggling with it, it’s important to know how much you owe to each creditor, and how much you owe all together. In this case, ignorance might seem like bliss, but it’s actually quite dangerous. If you have no idea how much you owe, it’s hard to come up with a plan to get out of debt.
If you can’t at least come up with a good estimate of how much you owe, now is the time to sit down and take inventory of your debts. Here’s what you need to include:
* How much credit card debt do you have? The balance of each card should be included on each of your monthly statements. Get out your latest ones and add them up. And while you’re at it, see how close you are to your credit limit on each card. If you’re down to the wire, you’ll need to take care not to charge any more and try to start paying it down.
* What is the balance on your mortgage, your car loan, and any other loans you have? If you don’t get monthly statements for these debts, call your creditor and ask for your balance. In the case of home and car loans, it’s also important to know how much equity you have.
* Do you have any unpaid medical bills? We often forget about these, but it’s important to get them paid because they do show up on our credit reports. In some states they can’t officially be held against us when obtaining credit, but they are there for anyone who does a credit check to see.
* What about student loans? These can haunt us long after we’ve finished college. Interest on student loans is usually relatively low, but if you request a deferment or forbearance it can add up in a hurry.
* Do you have any other debts that haven’t been paid? If you’re not sure, get a copy of your credit report. Any outstanding debts should be listed.
Once you’ve added up how much you owe, you’ll probably be more motivated to get it all paid off. The next step is to take a look at your spending habits and see where you can cut back. If you cut out excess spending and put the money saved toward eradicating your debt, you’ll get rid of it much sooner. And knowing that you don’t owe anything is truly a wonderful feeling!
Popularity: 3% [?]
by BlondieWrites on November 2, 2009
The government offers federal grant and financial assistant to hose who are having problems recovering from debt. Because of the economic crisis affecting the country, there are a lot people who are facing that they cannot pay. Let’s just say that Mother Nature played with you and a hurricane caused destruction to your home and property, how would you be able to recover from expenses incurred for repairs? The answer is, you can try getting federal grant for debt relief.
The government can offer debt relief grants to those who have incurred the debt because of addressing health problems. For those who have incurred debts by pursuing business projects and ventures, there are small businesses associations that could offer debt relief loans which is lower compared with other money-lending institutions.
This kind of federal grant ensures that individuals and businesses would recover from being buried in debt. The government actually have helped some home owners face impeding foreclosure by providing debt grants. But the other side of this grant is that not most people know it. Of course, not too many people knowing abut the grant means lower recipients. Unspent allocation for the grants would be used for other projects.
This money which is used to help the low-income families, actually come from families in the high income bracket. These people would donate money to foundations ad charitable institutions and are used to help low-wage earners and address their needs, in this case, their debts.
To apply for a debt relief grant, consider the following steps.
• Identify how big the money problem is, how much you owe and compare it with how much you earn and how much you are spending. Debt relief grants are there to help out get rid of debt problems, but if the situation arises again the problem can be because you spend too much than what you earn.
• Based on your current situation, check what debt grants are available for you. You can check the debt grants offered by the government by going to the city hall, or you can inquire about private institutions that offer debt grants.
• Know the application procedure and follow it. There are debt relief grants with just very simple application process, while there are others which require you to write a grant proposal. Some grantors would even require you to provide your financial records like your monthly expenses, income and also number of dependents.
• History would also have an impact on the result of your debt grant application. It is important to provide information like previous grant applications, this makes sure that everybody is given a fair chance to get the grant. If you just had a grant previously, there would be less chances that you will get the grant again.
• Remember that not everybody would be able to receive a grant to ease of the debts. Social Services would be there to identify if you are really qualified for the grant application. Income, the incurred debt and the monthly debt payment is considered.
The government can have grants that can help you bail out of your debts, but federal grants do not cover expenses or costs for buying or purchasing services or properties, unless otherwise stated in the regulations. It is important to avoid these scenarios from happening again to make sure that you continue a debt-free life.
Popularity: 1% [?]
by BlondieWrites on November 2, 2009
Overspending is a mistake that a lot of people make. This is because they think that as long as it is approved they can continue to do so until it maxes out. This never ends well because they don’t have the funds to pay for what they purchased which is why consolidating credit card debts is part of credit repair.
If you think this problem is only in the US, think again because the same situation happens in other part of the world.
Credit card consolidation is very simple. You combine all the debts you owe from various creditors so you end up paying only one creditor monthly.
There are many benefits for credit card consolidation.
First, you get to pay off your debt at lower interest rates than those that are already prevailing in the market.
Doing so will re-age your account. This means that your account is current and active as long as you keep making the payments that you agreed on.
While most card companies charge you fees for being late on your payments, the credit card debt consolidation program waives that so what you will only be paying what you actually owe.
Lastly, the debt consolidation plan buys you time so you have the choice whether to finish paying in a matter of weeks or months.
When you are able to consolidate your credit card debt, the next step is to come up with the money to pay it off. You can try reducing your expenses, asking for a raise, getting a second job or selling some valuables.
So do you need to apply for credit card consolidation by going to a bank? You can course this through a bank but there are private and non-profit organizations that offer similar services. You just have to find the right one to work with and then cooperate with them.
When you are looking for an organization to work with, make sure they are legitimate because some of these are scams. This isn’t good and you surely don’t want to fall for that because you are just wasting your time and money.
Once you notice that the money you owe is getting smaller, you are already on the right track and it won’t be long before you have finally been able to do some credit repair.
There are a few things you can also do to improve your credit score. You can open a new line of credit and if the major credit card companies will most likely deny your application, get a credit card offered by supermarkets or groceries and those offered by banks.
Don’t forget to pay your bills and other expenses on time because all that hard work you have done will go to waste if you miss a payment.
The amount of money you owe to creditors took months to grow so don’t be surprised if it takes awhile before you are finally debt free. Remember, you put yourself in this situation so the only person to blame is yourself.
Credit card consolidation is just a part of credit repair. Once it is in play, honor your commitment because that is the only way that your credit score is going to improve and you will once again have good standing with your creditors.
Popularity: 1% [?]
by BlondieWrites on October 23, 2009
The Federal Trade Commission works hard to protect consumers against many types of fraud, including personal loan practices by dishonest lenders. The Federal Trade Commission is a government regulated agency developed to help protect consumers. Since 1914, the FTC has been working hard to be a safety net for consumers. Congress have given the FTC a great amount of authority to assist consumers.
There are several distinct divisions of the FTC including Advertising Practices, Consumer and Business Education, Enforcement, Financial Practices, Marketing Practices, Planning and Information, Privacy and Identity, Consumer Protection, and Economics. Each division has rules and regulations in place that businesses much abide by to ensure equality for consumers. The Financial Practices Division focuses on the area of personal loans as well as other types of lending issues.
If you believe you are the victim of unfair personal loan practices by a lender, it is very important that you report it to your local authorities and to the FTC immediately. Not reporting such incidents allows the predator to continue doing so to others just like you. Many people choose not to file a complaint because they don’t want to get involved with a government agency or because they are embarrassed. Consumers need to know the FTC is an advocacy and voice for them.
State laws very as to what action will be taken for those lenders who have participated in unfair personal loan lending practices. However, it is often difficult to apprehend them and take action, especially if the lender is an online predator. They move very quickly and know how to manipulate computer systems so that they can’t be effectively tracked down.
To file a complaint with the FTC about improper personal loan lending practices, you may do so online, over the phone, or in writing. The FTC will obtain as much information about the situation from you and conduct an investigation. They will look for patterns with similar reported cases. Often a perpetrator of personal loan lending victimizing has devised a scheme that is repeated over and over again in various areas, especially the internet. It is very quick and easy for such a person to change the name of their company on their website and continue the cycle.
The FTC investigates thousands of personal loan lending scams each year. The average victim loses about $450 to the scheme. The FTC is working hard to educate consumers to help protect themselves from such scams working in the first place. Make sure you are working with a reputable lender who has verifiable history with customers. You can check this information online by looking for consumer reviews and by checking with the Better Business Bureau.
Most personal loan victims are young people under 30 years of age. They often need the funds quickly and urgently, so they agree to whatever the lender tells them without giving it a second thought. Consumers need to know that it is illegal for a potential lender to charge you processing fees or bad credit fees prior to approving your loan. This is how a lot of victims get roped in. They are told by the lender that the personal loan is guaranteed, but they first must pay a processing fee of several hundred dollars.
The FTC works hard to protect consumers in many areas including personal loans. It can be a tremendous help to you for education about the types of personal loan scams out there as well as when you need to file a complaint after falling victim to a personal loan scam.
Popularity: 1% [?]
by BlondieWrites on October 1, 2009
Unfortunately, the fact that many Americans desperate need help in settling their debt makes them vulnerable to scam artists. While there are legitimate debt settlement companies out there, it’s vital to know the difference between the ones that offer real help and the ones who are out to take your money. Following are some things to look for when searching for a third party to help negotiate your debt.
1. Do it yourself.
Perhaps it sounds overly simple, but the most certain way to avoid scammers is to do the debt negotiation yourself. It may seem intimidating, but if you prepare yourself with information ahead of time and know your legal rights, it is possible to do an effective job settling your own debts with your creditors.
2. Consolidation and settlement are not the same things.
A debt settlement company works with your creditor to get the amount of debt reduced and the payments and interest rate lowered. Debt settlement can be quite expensive, as you subscribe to the company’s services and pay a monthly fee. Debt consolidation, on the other hand, conglomerates all of your debts into one amount under a new creditor, with one payment and one interest rate.
3. If it seems too easy, it is.
Some companies claim they will enroll you with no initial fee, and will simply sign you up to pay monthly fees to them. When this happens, you have no signed documents or official agreement between you and the company, and no guarantee that they will do what they said; you only agreed to pay them money. Avoid this scenario - if the company touts “no hassle,” it’s probably a scam.
4. Do your research.
As you are looking for companies to help you, investigate each one before you agree to work with them, or even before you contact them. Your state Attorney General’s Office and the Federal Trade Commission are good resources, and you can search for company reviews online (for example, type “Company Name reviews” into your web browser). The Better Business Bureau would have records of any complaints made against a company as well.
5. Avoid giving too much information.
A legitimate debt settlement company will not ask for personal information. They will ask for the name(s) of your creditor(s), the amount owed, and the interest rate. If the company is asking for your social security number or any other personal information, do not give it to them and end the communication.
6. Look carefully - there may be hidden fees.
Read all the fine print and make sure there are no hidden fees. A debt settlement company may charge you some sort of service fee in the middle of the proceedings, after you are signed on with them. Make sure you do not sign any document or agreement until you have looked it over carefully.
7. Get referrals from trusted individuals or companies.
There’s nothing wrong with asking advice from people who have been there and done that. Your friends, co-workers, family members, etc. may have had a good or bad experience with a debt settlement company. Asking people you trust for advice is not a bad place to start.
If you keep some of these tips in mind, you should be able to avoid the scams. One more thing to remember is, trust your gut. If a company seems fishy or offers promises that seem too good to be true, it’s probably a scam.
Popularity: 1% [?]
by BlondieWrites on September 15, 2009
It’s one of the unfortunate aspects of being an adult – accumulating debt. If you are in debt, you probably didn’t start out as an adult with the goal of having as much debt as you currently have, and it most likely didn’t grow to the level it is overnight. If you want to get rid of the debt once and for all, you may want to use some of these ten tips for aggressive debt reduction.
1. Know what your total debt is so you know what you have to repay. Write down on a sheet of paper a list of all your creditors, the total amount owed, and what your minimum payments are for each. This list will give you a roadmap of how to get out of debt.
2. Do not incur additional credit card debt. If you have to, place your credit cards in a zip top bag filled with water and place it in the freezer so you don’t have easy access to it.
3. Create a realistic budget for expenses. List necessities such as mortgage, car payments, utilities, insurances, groceries, etc. as well as credit cards. Decide how best to spend your money to meet all of those financial needs. Stay within your budget.
4. Use extra income for debt repayment. Instead of spending that money, you may want to use all or part of it for debt reduction.
5. Be sure to continue to make all regular monthly payments on each credit card. You do not want to fall behind on any of them because it will reflect poorly on your credit history.
6. Pay off the credit card with the highest interest rate first unless there is one card that has a balance over 50% of your credit limit. In this case, you’d want to pay down this credit card until it gets to a balance of less than 50% of the limit. Then you’ll work to pay off the card with the highest interest rate. When you have that card paid off, close the account and cut up the card. Next you’ll roll that payment onto the card with the next highest interest rate. Continue this pattern – paying off one card and then adding that payment to the next card – until all of your credit card balances are paid off and there is only one card left.
7. Use cash instead of credit cards. For the one card you keep, use it only for emergencies or major purchases such as a new dishwasher. Put it somewhere in your wallet that will help you avoid using it for daily purchases. Do not accept increases to your credit limit.
8. Reduce discretionary spending such as dining out, gourmet coffee, or other unnecessary items. A family of four generally spends $30 for a meal. Four meals over the course of a month would be an extra $120 you could use to pay on credit cards or put into a saving account.
9. Avoid borrowing money from another source to pay off debt, especially organizations that promise to consolidate debt. This means to combine debt could lead you to lose everything if you can’t keep up with your payments.
10. Look for ways to come up with extra money. This could be stopping some services, moving to a smaller home, selling items you no longer use, or getting a part-time job.
It is possible to spend your money wisely and get out of debt. Use these ten tips for aggressive debt reduction to encourage you to begin making changes in the way you spend and save.
Popularity: 4% [?]
by BlondieWrites on September 6, 2009
Credit can be a wonderful thing. But when it gets out of hand, it can wreak havoc on our finances. This is especially true when it comes to credit cards. Charging up a large balance is bad enough, and by the time you add in fees and high interest rates, the debt can be overwhelming.
In a perfect world, everyone would use credit wisely and pay off balances within a month or two. But in reality, cardholders often build up a mountain of debt and fail to realize it until it’s unmanageable. That’s when it’s time to put the plastic away and work on paying off the balance. Here are some tips to help you do that.
1. Rework your budget, eliminating unnecessary items. Even little things like that cup of coffee you buy on the way to work every morning can add up. Once you’ve decided what you can do without, add up how much you’ll save and add it to your monthly payment.
2. Volunteer for overtime, or get a second job. Put all the extra money you make toward your balance.
3. Reduce your overall interest rate. If you have a low interest card that allows balance transfers, transfer the balance of a higher interest card to it. Even if you can only transfer part of the balance, you will save some money and be able to pay everything off more quickly.
4. Put lump sums of money that you receive toward your credit cards. These may include tax refunds, bonuses or settlement proceeds. This can save you a lot of money in interest.
5. Put your raises toward paying down your debt. A raise is money that you were living without before, so you should be able to continue to live without it until you’ve paid off your credit cards.
6. Sell stuff. Get rid of that extra vehicle, or have a garage sale. We all have things sitting around that we could do without, and those things can make us money. Use the extra cash to help pay off your credit card debt.
7. Snowball your debt. This simply means paying the minimum payment on all but one card, and paying as much as possible toward that one until it’s paid off. Then you move on to another card, paying the minimum payment plus what you were paying toward the previous one. Repeat until all balances are paid in full.
8. Get help from friends and family. A loan from someone who is close to you can help you get out of debt, and repayment terms are usually much more favorable. But it’s still important to have a repayment agreement and follow it carefully.
9. Negotiate with your creditors. If you’re having a hard time paying off your balance, they might be willing to lower your interest rate. You may be required to stop using your card while the lower rate is in effect, but a moratorium on charging until your finances are in better shape is a good idea anyway.
10. Talk to a credit counselor. If you are several thousand dollars in debt and can’t afford your payments, credit counseling could save you from bankruptcy. A credit counselor will negotiate with creditors on your behalf, and can usually get you lower interest rates and reduced payments. Once it’s all set up, you make one monthly payment to the credit counseling agency, and they forward the appropriate amount to each creditor.
Popularity: 2% [?]
