• Home
• Get Out Of Debt Fast!
• Credit Card Debt Negotiation
• Credit Card Debt Relief
• Credit Card Debt Settlement
• Best Debt Negotiation Companies - What Do They Do?
• Debt Statute Of Limitations By State
• No-Debt.Net
• Become Debt Free In 3 To 5 Years — GUARANTEED!!!
• Link Partners
• Debt Settlement Resources, Choices & Options
• Credit Card Debt Law: What Can The Collector Do?

Know Your Rights and You Can Intimidate The Debt Collectors

Collectors rely to a great extent on the fact that many people don’t know what their rights are. Lets just go over a few simple points.

1. While some say you will be able to make a better deal if you are able to go directly to the creditor, the fact is that they creditor most likely won’t deal with you any longer after they have sent the account to collection.

2. Collectors can only call you between 8 am and 9 pm. If they call outside those hours, they are breaking the law. Tell them so. Let them know that they may only call during legal hours.

3. This isn’t the middle ages. There is no debtors prison. If a collector tells you you will go to jail or be arrested, they are lying. It is against the law for a collector to lie.

4. Collectors cannot call you at work if you tell them not to. Once you inform them that they cannot call you at work, you should also send them written notice. If it wasn’t written, it wasn’t done.

5. They can’t garnish your wages until they get a court order. It basically requires a law suit brought against you, and you will have the opportunity to present your case in court. If you haven’t had your day in court, and they tell you they will garnish your wages, they are lying to you.

Collectors can be sued for violating the law. Stay informed and know what your rights are. If you need help dealing with them, you can call the Federal Trade Commission. Their number is 877-FTC-HELP.

Don’t let the situation progress too far. If you need help, click here for a free consultation to help you negotiate and eliminate your debt.

The Danger Of Consumer Credit Counseling

by Ted Batron

One topic that I sometimes cover generates more hate male than any other. And I’m glad they hate me for it. It means I’m touching a nerve. The subject is the Credit Counseling or Debt Management companies that make the claim that they are non profit, or operating in the consumers interest.

Many of these companies charge up to 20% of the debt as a fee. That means that a consumer with $20,000 in credit card debt (not at all uncommon), would be charged up to 4000.00 - are you kidding me!

No wonder these companies spend so much on advertising. They can afford it. However, the tide is changing.

The IRS has begun revoking the tax free/non-profit status of many of these companies because they didn’t do what they said they were going to do, PROVIDE COUNSELING. Most companies that have debts owed to them will accept a reduced amount in order to get paid.

If you are behind in your debts and were to call your creditors now, explain your situation to them, and ask for a reduction in the balance vs. bankruptcy - most will accept immediately. So why should you pay an exorbitant fee just to get someone to make a phone call for you?

Proper negotiation requires knowledge of the law, what your rights are, forms and some instruction. It would be even better if these companies offered some assistance in the form of advice. But most don’t! No advice, no counseling, no education.

A few years ago the IRS begin investigating several of the largest credit counseling services, many with a non-profit status. The IRS commissioner, Mark Everson, stated that those agencies “poisoned an entire sector of the charitable community”.

The commissioner wet on to say that in many cases, all these agencies did was direct business to for-profit companies. Several of these agencies spent millions of dollars on ads to convince anyone with debt to solve their financial problems with a phone call to them.

Unfortunately, the IRS investigations may also affect the clients of these companies. New bankruptcy laws require that consumers get professional debt counseling before they file. Since many of these companies are not considered to be professional debt education companies, they did not qualify under the new statutes. What a mess!

Since most CCC and Debt Consolidation companies say that they are non-profit, and the consumers that use them are under duress, the consumer usually goes in with their defenses down a little. Homeless shelters, and churches are non-profit, so it has to be a good thing, right?

Most of these companies are for profit. The exist to make money off of people who are desperate to solve their debt problems, desperate to save their homes, their cars, their credit, their financial future, their families. The prey on fear, and do little to solve the problem.

Some companies out there do have your best interest at heart. Don’t work with the first one you see just because they claim to be non-profit.

The best way that you can solve the problem, is to learn how to negotiate with creditors. Educate yourself. You have rights, find out what they are! Find a company that will provide that education, and will answer questions and offer guidance when you need it.

That is the solution to permanent debt reduction, debt control, and debt elimination.

Are you ready to get control and eliminate debt? You really can Eliminate Debt and Get Your Life Back without filing bankruptcy and destroying your financial future. Take the first step to getting control now. Find out what the debt peddlers don’t want you to know!

Developing a Budget - The First Step To Legally Eliminating Your Debt

by Ted Batron

The first step to getting control of your financial life and legally eliminating your debt is to assess your current financial situation with a complete balance sheet. How much you can spend is entirely dependent on how much you take in.

First list your fixed expenses. Things like car payments, mortgage payments or rent, insurance, etc. Those bills that do not change from month to month. Then list variables like food, recreation, clothing.

Make sure the list is complete. Even things that may seem irrelevant need to be listed. Once your list is complete, you will have a better picture of what you can spend, and what you can cut from the budget.
Now, list all of your income from all sources. Work, part time work, alimony, child support, settlement payments, everything!

Once you have your total income, multiply that amount by 90%. Thats the amount you can afford to spend every month. Now, prioritize. Make sure your mortgage/rent is covered, food, insurance, utilities, transportation. At the top of the list are those items that you absolutely must have.

If your still not sure, or want more information about budgeting techniques, take a look at the library. There are good software programs out there too. You can start out with just a spreadsheet to list your expenses monthly.

To get a really good grasp on your spending habits, maintain an absolutely accurate list of everything you spend for 3 months. Then reevaluate your budget.

Top Ten Debt Relief Options

Top Ten Debt Relief Options
by Ted Batron

There are a lot of reasons that people end up in debt and there are many debt relief options. Unfortunately, for most, the reason seems to be overspending and a disorganized or absent system to manage money. Usually its a little bit of both.

There are legitimate reasons for being in debt. Job loss, and other factors. Whatever the reason, it is important to eliminate the debt, and not incur any more!

Here is the top ten list for eliminating your debt. Its not always easy to follow. But it is vital that you use this list as a guide. These ten rules will get you out of debt, and keep you out of debt in the future.

1. Make a realistic budget. Get all your bills written down. You have to see it in front of you for it to work. Make sure that the total of all your bills and expenses are within the amount of money that you earn. If your total bills and expenses are more than 90% of your income, you will need to make some changes.

2. Use the payment snowball to get your credit cards and consumer debt paid off. If you have a little cash and can afford to make a lump sum payment on your cards, pay them to below 50 percent of the card limit. This will increase your credit score. If you cant, then just begin to use the payment snowball system to pay off your cards beginning with the highest interest rate card. After its paid, cut it up and close the account.

3. Use cash! Keep only one credit card, in a drawer in your house. Don’t carry it with you. It isnt real money. If you need a new refrigerator or an emergency car repair use it. But never allow the limit to exceed what you can easily pay off in 3 months. If you can afford the refrigerator with in cash, use cash.

4. Use direct deposit for you paychecks, and have a limit on what you can withdraw for personal use each week.

5. Make a commitment to reduce optional spending. Subscriptions, dining out, anywhere you can cut your expenses improves your situation.

6. Your home and housing expense should total less than 33 percent of your total household income. Talk to your insurance agent and see if you can reduce your mortgage insurance. Try to get a lower interest rate on your mortgage - make sure you understand your mortgage. NO, you cant get a million dollar loan for 1500 a month no matter what the predator on the other side of the table tells you. Go online and use a mortgage calculator to determine what your real, actual, fixed monthly payment is at the interest rate you want. If that amount is more than you can easily afford, then you may need to get an extra job. Also, some utility companies offer more economical utility plans. Check with your local utility provider.

7. Debt consolidation loans are a trap. If that sounds like a blanket statement, it is. If you have convinced yourself that this is the only way out, be careful. MAKE SURE that the total loan payment is actually less than you are paying on all your debts separately. If you can save money, and if you close ALL the paid off accounts immediately, then it can work. But remember, you have mortgaged your house to pay off a credit card. If you can’t pay the card, you can always file bankruptcy. if you can’t pay your mortgage, they will take your house. Be cautious!

8. Contact your creditors, and stay in contact with them. See if you can get a reduced interest rate. Some creditors will even eliminate the interest rate. Some are willing to work out optional repayment plans so they dont have to resort to using debt collectors.

9. Become a great shopper. Become a coupon clipper. When your making a larger purchase, be sure and shop around. Negotiate. If you find a better deal somewhere else, let the salesman know. See if they can beat the price.

10. If you have the option, work some overtime now and then. Use the extra money to eliminate the debt. If your job doesnt offer any opportunities for overtime, think about a small home business, or finding a part time job. Keep your eyes open and opportunities will turn up.

If you dont think you can do this on your own, bankruptcy is probably still not the solution. It will leave you in financial ruin for at least 10 years. There are other options. Debt reduction specailists can be a huge help. Again, be careful. Some of them charge as much as 20% of the total debt as a fee. If you owe 20 thousand in credit card debt, thats $4,000.00 dollars. That 4 grand would have eliminated a lot of the debt. So, again, shop around even for help eliminating the debt.  Know what your debt relief options are!

Quickly Eliminate Debt By Snowballing Payments

Quickly Eliminate Debt By Snowballing Payments
by Ted Batron

You have frankly probably heard of this technique before. But it really is the fastest and most efficient way to eliminate debts. Its a simple technique, but extremely effective. So, step by step:

1. List out all your debts and organize them by interest rate, with the highest rate items to be paid off first.

2. Continue to make MINIMUM payments on all the debts in the list EXCEPT the one on top - the highest rate. Make a budget to add as much as you can to your payment to get this debt paid off. IF you still have decent credit, and get one of those “zero interest on balance transfer” offers, take it. Transfer the balance - TEAR UP THE OLD CARD - TEAR UP THE NEW CARD WHEN IT ARRIVES!!! and continue to pay off that card.

3. When that card is paid add that amount to the minimum payment for the next card.

Its extremely important to just tear up the cards as they get paid. If you continue to do this, the effect snowballs. You eliminate the debt automatically by just continuing to make the payments.

If however, you are in a situation where the debt is crushing, and you are unable to make even the minimum payments, there is still hope. Bankruptcy can destroy your life. While a great deal of the stigma surrounding it seems to have diminished in the last few years, the long term effects have not. It will still ruin you financially for at least ten years.

There is a way out, without bankruptcy. Take a look at the No-Debt.net main page. The program there is designed to help you reduce or eliminate your debt, and rebuild your credit and your life without the long term financial destruction of bankruptcy.

Eliminate Debt And Live Life!

Eliminate Debt And Live Life
by Ted Batron

The faster we are able to eliminate our debt, the happier we will be. This seems like a pretty basic concept. But eliminating debt is sometimes easier said than done. Lets go over a few tips for getting rid of or drastically reducing credit card debt to make our lives easier.

When we carry a large number of credit cards, it is just human nature that we use them. When I was in the debt mode, I used to actually think to myself “wow, I have 50 thousand dollars in my pocket”. That was a pretty destructive thought process. If you dont incur the debt, your better able to save for the future and have money ready when you need it. Change the thought process, and change the habits.

There are no friends in the credit card companies. Removing your money from your posession is their only goal. If that sounds a little harsh, the truth is that this is war, and for the most part, the companies that offer credit in a predatory fashion, and that includes all of them, are the enemy. And they are winning.

Remember, being a little short because you made a purchase of something that you wanted or needed is one thing. Being short, and having the credit card companies drown you in increasing debt for years to come is much worse.

Mortgages and auto loans are areas where we want the best interest rates. If your consumer debt is too high, both of these areas will be difficult. If our consumer debt is really high, debt elimination programs may be necessary before we even buy things like homes and cars.

If you can avoid debt altogether, you have really dodged a bullet. A convenience card, or an emergency card is fine. I keep it at home in my desk drawer. It is used for emergency car repair, maybe new tires or other items I cant avoid purchasing. If you can afford your emergency expense in cash, then you are still better off. Debt elimination is not quit as easy as just avoiding the debt in the first place.

Destroy your credit cards, except for the one with the lowest interest rate. Begin a repayment plan starting with your highest rate card. If you get an offer to transfer your balance to a new card at a lower interest rate, take it. But keep on paying off the card even if you have to work more or spend less. Whatever you do, dont use the card!

If you have 5 credit cards, make the minimum payment on 4 of them. Make a higher payment on the one with the highest interest rate. When that card is paid off, apply that payment to the next card. Remember, to pay off a card, you must pay higher than the minimum payment.

Some card companies offer zero interest on balance transfers. Be careful, make sure its not a limited time offer. But if you get one of these, take it. Transfer as much as you can to the lower interest rate card, and then just dont use the card! You can eliminate your debt fairly quickly at zero percent interest.

Just think about how much less stressed you will be after you have eliminated your debt.

Are you ready to get control and eliminate debt? You really can Eliminate Debt and Get Your Life Back without filing bankruptcy and destroying your financial future. Take the first step to getting control now. Find out what the debt peddlers don’t want you to know!

"Click Above to find out how you can be debt free including your mortgage in just a fraction of the time using only the income you currently make!"

Read
"Debt Free In 3"

• Categories

  • Debt Reduction
  • Did You Know…

• Meta

  • Register
  • Log in
  • WordPress
  • XHTML