Debt Relief - Debt Reduction

debt reduction calculator

admin — Mon, 22 Mar 2010 00:24:00 +0000

http://www.simple-steps-to-financial-freedom.com/debt-reduction-calculator.html

Save Tens of THOUSANDS of dollars and shave YEARS off the time you’re in debt by using this FREE debt reduction calculator.

Do you want to save yourself $50,000 to $100,000+ over then next 10 to 20 years?

If so… PLEASE watch this video.

Most people are not aware of the simple strategies they can use to get out of debt fast and save big money on interest payments.

This is the best debt reduction calculator I’ve found and it does what I’ve seen other companies charge $3,500 to $7,000 dollars to do.

http://www.simple-steps-to-financial-freedom.com/debt-reduction-calculator.html

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Do debt reduction services make you file bankruptcy?

admin — Tue, 16 Mar 2010 00:52:59 +0000

I’m in about $4,000 in debt and was considering a debt reduction service. I heard that you have to file for bankruptcy to complete them. Is this true and what all is required to follow through and complete a reduction service. Is it worth it?

Many debt reduction services charge large fees. They also often times make you save all the money up (including their fees) before they contact the creditors. This can make someone with good credit get bad credit because some of these services recommend to people to stop paying off their debt completely. I wouldn’t use any service except maybe a credit counselor. A credit counselor will help you set a budget and create a payoff plan for your debt. Use the below link to help you find a reputable one.

You could even get away with doing everything yourself.

First pull your credit reports from the three major credit bureaus:
Experian, TransUnion, and Equifax
You can get free ones at www.annualcreditreport.com.

Then take note of how much money you owe and to whom.

If the account(s) is delinquent:

Order the accounts by either smallest to largest amount (makes you feel like you are accomplishing something quicker), or largest to smallest interest rate (will end up saving you money in the long run).

Start saving up what you owe for each account. Keep making payments on any that are still open or in good standing.

After you have saved a total to pay off the first amount contact the creditor and see if you can negotiate a reduced payoff amount…if not then you can pay in full.

If the account(s) is in good standing:

Make all of your payments on time.

Pay the minimum on all the accounts below the first one listed, then pay all the other money you have devoted to paying off debt to the first account listed.

Once the first account is paid off apply all of the money you were paying on the first account and start paying off the second account on the list. Repeat until everything is paid off.

You may want to go to the library and check out The Total Money Makeover by Dave Ramsey. It explains everything I just told you in greater detail.

Is credit card debt considered an open account or a written contract?

admin — Sat, 13 Mar 2010 01:53:59 +0000

I live in the State of Georgia and am being sued over an old credit card that I defaulted on. It has been more than 4 years but less than 6 years since the date of default, so depending on whether credit card debt is considered an open account or a written contract in the State of Georgia, the Statute of Limitations may or may not apply. The Staute of Limitations is 4 years for open accounts and 6 years for written contracts. Does anyone know for certain which type applies for credit card debt in Georgia? The account is with Citibank MasterCard and was opened in the late 80’s or early 90’s. Thanks.

Spiff! Man you are starting to disappoint me something terrible!

The definition of a "written" contact is one where all of the payment issues are completely spelled out. The monthly payments, the timeframe, everything.

An "open" or "revolving" credit line does not fall into this catagory because the terms of the agreement change every month. One month you owe $200, and the next you owe $400…..and each month you have a varying amount of payment. You can pay it off, and then run it right back up again….that’s why they call it a ‘revolving" line of credit.

This is also clearly spelled out in the US UCC codes, and many states specifically label credit card debts as open accounts.

Georgia is one state that specifically labels credit cards as NOT being a written contract. Please refer to the link below.

Once again….poor answers with no source of information cause a lot of damage here on Yahoo. If they don’t provide you with a source for further examination it’s best not to believe it.

Debt Reduction Services

admin — Fri, 05 Mar 2010 01:50:59 +0000

Learn about debt reduction services, debt relief services, debt reduction and credit card debt relief.

http://www.christianet.com/debtreduction/

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debt reduction?

admin — Wed, 03 Mar 2010 01:52:59 +0000

from personal loans

I would never suggest going through a debt consolidation, unless it’s the last resort. Reassert your position, sse how much in debt. If upto $10-$15K try getting a new credit card with 0% balance transfer offer. That will help you get rid of interest for a while. But do it only if you are sure that you won’t dig your debt hole even deeper.

http://www.letsgobble.com/

Selling home, making a profit – better to pay off credit card debt or put money into new home?

admin — Fri, 26 Feb 2010 01:53:59 +0000

I have some credit debt left and I’m wondering if I should put the extra money I make from selling my home into the new house I’m purchasing or if I should go ahead and pay off the credit card debt. What is a smarter decision?
Just wanted to say I’m not late on my credit card bills, just wondering if I should go ahead and pay them off in full right away

Have you lived in it for at least 2 of the last 5 years? If so, there’s no capital gains tax from the IRS, and the money is yours to spend as you wish.

Glenn is correct – This all depends upon what you’ll do with these newly cleaned up credit cards….. It’s a falacy that people can get out of debt by placing all their credit card debt onto their house. They usually run up their cards again in a few years and are then worse off than before.

Put the money to the house. Start paying EXTRA to your credit cards. Start cutting up your credit cards. Then start sending extra to your house.

FREEDOM!!!!!!

Has anyone done credit counseling or debt reduction?

admin — Thu, 18 Feb 2010 01:52:59 +0000

I need information on what a good credit counseling or debt reduction company is, and if anyone has personal experience or recommendations.

Please do not do "credit counseling", "debt reduction", or "debt consolidation". It will show up on your credit report like a bankruptcy. It is also not free. There is a charge for the company to do it, they will negotiate with the creditors to either take less than you owe (another "ding" on the credit report), or to space the payments out for a longer period (which will cost you more in interest payments), and it will just take longer for you to get out of debt. Here is a plan that will get you out of debt and allow you to never worry about money again. You just have to decide to do it. If you work the plan, the plan will work for you. Get all of the debt paid off as soon as possible, that will enable you to start building real wealth.

A. Have a garage sale and sell whatever you don’t use or need and use that money to pay down your debt.

B. Consider getting a temporary part time job and use all of that salary to pay off your debt quicker. It is better to have a no fun year
than a no fun decade.

1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don’t even have to worry about it. You must cut your spending and live on less than you make. Pay cash for everything. If you can’t pay cash or write a check, then you don’t need it. Do not use credit cards. Debt (especially credit card debt with it’s high interest rates) is like quicksand, if you fall in, you will drown.

2.First get current on all of you debts, if you are not already, and make no more late payments, if you have had any. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on. If it is not on your budget, then you don’t need it. If you forget to add a necessity to your budget one month then re do the budget. If you add something in, you will need to take some money out somewhere else.

3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:

To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment

Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment

Debt #1: paid off
Debt #2: paid off
Debt #3: minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.

4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.

5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.

5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? The Human resources Department will have the forms for you to fill out. Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire. Start learning about investments. Do some reading. I like "The Lies About Money" by Ric Edelman, "Ready, Set, Retire" by Ray Lucia, and anything by Ed Slott. They are very good books and each has a little different perspective so you can decide your own comfort level with your investment

Can debt relief services affect your credit if you use them to lower your interest rate?

admin — Wed, 17 Feb 2010 01:53:59 +0000

I am planning to sign up for Care One debt relief services to help me consolidate my CC debt. Do you think this will actually work? will this affect my credit rating? Does anyone have an opinion about this company and their services. I was reading their blog and for the most part it sounds like it really works but I’m trying to search for more answers.
Thank you in advance for any suggestions or feedback.

CareOne offers two services: credit counseling and debt settlement. Being enrolled in a debt management program would cause your credit report to state "enrolled in debt management." This does not specifically damage your credit rating but it would make it virtually impossible to qualify for new credit while you are enrolled in the program…but that’s the whole point of being enrolled in a debt management program to begin with…to stop using credit.

CareOne also does does debt consolidation/debt settlement. Stay away from any "debt consolidation" company that promises to cut your debt and payments in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.

Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements…they don’t. Your creditors have the right to refuse settlements and take you to court.
——————
If you want to enroll in a non profit debt management program then I would advise to use the real one….CCCS. Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS). They can negotiate reduced interest and payments. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it difficult to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would might be denied while you’re enrolled in the CCCS debt management program…

CCCS counselors will often tell people to not file for bankruptcy when they really should. If your debt is overwhelming relative to your income/assets and the reduced payments negotiated by CCCS simply will not work, then you should think about filing for Chapter 7 bankruptcy

What is the best method for consumer credit card debt relief?

admin — Sun, 14 Feb 2010 01:52:59 +0000

We started a program with "Consumer Credit Counselors" This progarm has us pay the Consumer Credit Counselors, then they pay the credit cards every month. All they do is lower some of the interest rates. They don’t negotiate amount owed. The payments are too high for us, so we looked into other alternatives. We found one company that will do it differently for less. They have you pay into an escrow account, and they pay off each credit card individually. They say they negotiate lower balances and interest rates. The payment would be lower and the payoff time cut in half. Does anyone know of any reason we shouldn’t do this? Are there any other better ways? WHAT IS THE BEST WAY TO GET CONSUMER debt relief with no loans?

I am not saying that debt settlement/negotiation is the wrong way to go. However, it will damage your credit further.

If you choose to settle on your debts, you can do this without paying enormous fees to a debt settlement company. Keep in mind that any forgiven debt of $600 or more is automatically reported to the IRS, in which you would owe taxes on it as a form of income.

If you can continue to make the payments on your current plan, then that is likely the best option for you. If you are having trouble, give your credit counselor a call to discuss possible changes to your account.

Freedom Debt Relief – Your Path to Financial Freedom

admin — Wed, 10 Feb 2010 01:50:59 +0000

Visit http://www.FreedomDebtRelief.com for more information.

About Freedom debt relief:

Our debt reduction Program is an innovative solution for consumers struggling with large debt burdens and who need debt relief. Freedom Debt Relief uses debt negotiation with a goal of dramatically lowering your debt levels. Our goal is to save you the most possible money and to get you debt free in the shortest amount of time.

We may be able to help you save more money than simple Consumer Credit Counseling while protecting you from the harsh impacts of bankruptcy. We think we have the best solution for most consumers with serious debt concerns.

For a free 10 minute consultation call us toll-free at 1-800-544-7211 anytime between 6:30am and 7:30pm PT.

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