Tag: Debt Management

Debt Management Vs Settlement – Should You Consider One Or The Other?

People go for debt management and settle their debts for a variety of reasons. One of the main reasons is that they have run out of money to pay all of their bills on their own. They are also looking for other options that might reduce their debt or that would increase their credit score. However, some people get tricked into signing up for a debt consolidation or settlement when they don’t really need to.

Debt consolidation involves only combining all of your existing debts into one, one-time, lump-sum payment. There are a few things to keep in mind about this method, however. You may be able to lower your monthly payments by paying a lower interest rate, but you will most likely be paying twice as much in total due to fees and charges. You also may be able to get your payments cut in half, but this is not a guarantee.

For the most part, you will be paying more than you would with a debt consolidation or settlement. Even if you are paying a reduced rate, this is still usually at least 10% more than the actual amount of your bill. Plus, many companies charge monthly maintenance fees and late fee fees, which will also need to be added to the total debt owed.

As you can see, debt consolidation or settlement does not offer any good solutions to your current financial situation. You will be paying more, you will be subject to high fees and penalties, and you will most likely be not even making any progress in your debt reduction efforts. If you have serious financial difficulties, you should consider filing bankruptcy.

Bankruptcy is one of the only methods that really do offer some help to people who have a serious financial problem. Bankruptcy can wipe out most of your debt and help you begin to get back on your feet again. It also may allow you to obtain credit that you were previously denied.

If you really want to look at the alternatives for debt consolidation or settlement, talk to your creditors. Ask them about a “payment schedule.” This is where you would make a fixed monthly payment to your creditor, rather than having them send you checks for your bills every month.

Instead of sending your money to a collection agency every month, instead mail a check to your creditor and make sure that it is sent to a collection agency that is not in business to take your money. You should also try to avoid getting any more debt in the future. The last thing you want to do is further build up your credit problems by having any more unsecured debt.

If you want to know what other alternative solutions exist, look for a good debt relief network. These networks can help you find company that can help you resolve your debt issues. And this can help you to eliminate the debts you currently have and improve your financial situation.

Credit Card Debt Relief – How Consumers Can Be Debt Free

Credit card debt relief is a debt relief option which is becoming increasingly popular in the present world. In fact, people have started to realize that they can settle their massive debts with these settlement companies with the help of their availing professionals. When it comes to talking about debt relief, it has been proven that you can not only settle your credit card debts but you can do so with minimal fees and charges.

These consumer credit cards are a source of great burden for people. When there is any sudden, unplanned expenditure by the people, the finance companies file a lawsuit against them. They will ask them to pay back a particular amount of money, which they charge upfront on the payments made by the consumers.

Here, they will mention the two main reasons that cause the finance companies to sue them. One of them is due to not meeting the monthly payments. The other one is due to the late payment of the money. So, the settlement companies are called upon to do one thing to get rid of these dues.

To get out of these dues, you will be required to refer the financial firms who are ready to pay off your debts for a certain fee. Through these agencies, you will get enough information about the settlement firms. They will provide the names of the most legitimate firms which are available in the market.

If you want to know more about this method of debt relief, you will be required to search for a legal firm. There are various fake companies in the market, which are doing business of cheating consumers. When you compare the relief firm with the relief agency, you will notice that it is the fake company that you will be dealing with.

According to the laws, the service provider will need to pay you a fixed amount for their services. This fixed amount is a percentage of the total debt that you owe to the company. In case you are dealing with a relief firm, they will negotiate with the bank and convince them to agree upon a much lower amount than the original payable amount.

At present, the American government has provided a particular ratio on the eligibility of a settlement company. Any company which will have less than ten percent of the total amount is eligible for the debt-relief program.

Now, it is important for you to find out the debt relief companies that is legitimate in nature. The best way to do this is through the internet.