As any user of credit cards knows, the interest rates on credit cards tend to be quite high. With interest rates on credit cards running as high as 18% or even more, it is all too easy to get caught up in a never ending cycle of interest rates and late payment fees. At the minimum payment, it can take decades to pay off even a small balance, so if you have a lot of credit card debt, refinancing that debt at a lower rate is a financial necessity.

There are several options when it comes to debt consolidation of credit card and other high rate loans. There are personal loans that can be used for this purpose. The consumer simply takes out a personal loan to cover the outstanding balance on his or her credit cards then uses the money to pay off the loan. This strategy can save the consumer lots of money on interest and other associated credit card fees. Even though the interest rate on personal loans will vary widely according to the consumer’s personal credit history, the rate is likely to be far lower than the interest rates on the credit cards that are being paid off.

Homeowners also have the option of using a home equity loan to retire their high interest debt and consolidate it at a lower rate. The interest rates on home equity loans are often much lower than those on personal loans, therefore the potential for savings is that much greater. In addition, the interest on a home equity loan may be tax deductible, whereas credit card interest is not. The downside of the home equity loan strategy, however, is that the lender is pledging his or her home as collateral for the loan, and in the even of a default the home could be at risk. It is therefore vital to ensure that your spending is under control ant that a strict budget plan is in place before using a home equity loan for debt consolidation.

By: Ryann Cairns | sosdebt.org

The monthly budget may just be the simplest and most basic of all financial documents. Even so, it is shocking how many people have never taken the time to produce even the simplest of budgets. There are many consumers who have not idea where their money is going. Without this basic knowledge, controlling spending is all but impossible.

Creating a budget does not have to be a complicated process. You do not have to have an accounting degree to keep track of your daily, weekly and monthly expenses, and you do not need to invest in fancy spreadsheet software either. All it takes is a small notepad and a calculator.

The best way to begin if you have never kept a budget before is simply to carry a notepad around with you everywhere you go. Write down every purchase and its cost, no matter how small. That means every cup of coffee, every lunch, every candy bar, every tank of petrol. At the end of the week or the end of the month, go through all of it and add it up. You may be surprised at the amount of money that “leaks” out of your pockets every month on frivolous expenses. It is often possible to trim a significant amount of spending in ways that will not impact your life or lifestyle.

After you have repeated this exercise for a few months, you may be surprised at how your spending, and your debt level go down. Simply keeping careful track of purchases tends to make us more cautious, and the extra money you save can then be applied to paying down current debt. The more you can put toward your current debt payments, the more you will save in interest and other charges.

Creating a budget may not be the most fun or exciting way to spend your time, but a good budget is the foundation of your financial life. Once you have a realistic budget you can stick to, you are more than halfway to getting your financial house in order.

By: Ryann Cairns | sosdebt.org

Many of these desperate consumers find themselves contemplating a bankruptcy filing, but bankruptcy can carry a legacy you will have to live with for years. A bankruptcy filing will stay on your record for a minimum of seven years, and you may find it difficult or impossible to obtain necessary credit in the interim.

Fortunately, there are alternatives to filing bankruptcy, even for consumers who owe thousands or even tens of thousands of dollars to various banks, credit cards and other creditors. Many people ask whether it is best to go with a debt reduction program or enroll in a credit counseling program. While there are some similarities between these two types of programs, there are some important differences to consider as well. Let us consider the five most important differences between debt reduction and credit counseling.

1. Did you know that most credit counseling programs will require that you close all of your credit accounts? The few exceptions to this requirement include accounts that are required for business needs, accounts with very small balances and accounts on which there are cosigners who are not applying for credit counseling services. Debt reduction services, on the other hand, do not require that all credit accounts be closed. This can make it much easier to keep a credit card for emergency and convenience purposes.

2. Credit counseling services typically take longer to complete than debt reduction services. The average length of time to liquidate debt through a credit counseling service is 5 years. Unlike credit counseling, debt reduction programs can often allow consumers to retire their debts in less than a year.

3. Cost savings in the form of reduced payments is another important advantage of debt reduction programs. While credit counseling programs typically require that the entire amount of the debt be repaid, debt reduction programs can be negotiated to allow the consumer to repay only a portion of what is owed. Most creditors are willing to work with consumers enrolled in debt reduction programs and that includes accepting a lower repayment amount. Settlement amounts can range anywhere from 20% to 60% of the amount owed, with the industry average being around 50%.

4. Your credit score is also affected in different ways by credit counseling programs versus debt reduction programs. Generally, credit-reporting agencies will re-age the accounts of consumers enrolled in credit counseling services after three payments have been made. With a debt reduction settlement, the status of the account does not change. If the account is current, it will remain current. If it is past due, it will remain so. It is also good to remember that with a debt reduction agreement the creditor will report that the account has been “settled in full” or similar wording, at the conclusion of the debt reduction program.

5. The final difference between debt reduction programs and credit counseling is the bargaining power enjoyed by the consumer. Credit counseling programs rely on the submission of a debt repayment proposal which the creditors are free to accept or reject as they see fit. With a debt reduction program, however, all creditors are contacted immediately to inform them of the hardship situation and the desire to resolve it through a negotiated debt reduction agreement.

By: Ryann Cairns | sosdebt.org

At interest rates like that, it could take you decades to pay off even a small balance if you only pay the minimum balance due each month. Add that to the extremely high late fees and over limit fees that credit card companies often charge, and you can see how easy it is for many people to begin drowning in debt.

The most basic tool in getting a handle on your debt and eventually eliminating it altogether is to make a monthly budget and stick to it month in and month out. The family budget is the most basic form of financial planning, and I am always shocked by the number of people who do not take the time and the effort required to create this simple financial document.

Making a budget will go a long way toward getting a handle on your spending and lowering your debt. Write down every penny you spend, from that $2 cup of coffee each morning to that $20 tank of gas to your monthly mortgage payment. Seeing your spending in black and white can be a real eye opener, and you may instantly see simple and painless ways to tighten your belt and save yourself lots of money.

Just tightening your budget a little bit can provide you with extra money to pay down your debt. Paying extra on your credit card bills can go a long way toward retiring your debt. Of course after your debt is paid off, you will have to make a concerted effort to not run up any more debt. Cut up those credit cards and keep one with a low credit limit for emergencies only. Use it only when absolutely necessary and always pay it off every month.

It is always difficult to save money, and getting yourself out of debt can be difficult. It is not beyond your ability, however. Getting a handle on debt can be done with just a little bit of advance planning and financial know how.

By: Ryann Cairns | sosdebt.org

Going away to college is one of the first opportunities a young person has to go out into the world on their own. They are responsible for complete self care budgeting their daily living expenses with or without financial support form their parents. This is also the first time that many students age 18 and above receive their first credit card. On average about 41% of college students have credit cards.  It is estimated that 35 % of college students with credit cards do not pay their balances in full every month, the average balance is $452. Upon graduation college students carry an average of $20,000 in credit card debt. It is easy to see how credit card debt can rapidly pile up for a student with books, food, clothing and sadly a lack of financial support/guidance.

Debt Settlement Palm Beach

Palm Beach Debt Settlement Assistance

Palm Beach students and graduates looking for debt settlement assistance can rely on the credit counselors of DEBTMA™. DEBTMA™ is a debt management and consolidation provider that will work with Palm Beach residents to establish a clear understanding of the individuals financial situation in order to discuss the available debt solution options that will best suit the situation for effective debt settlement. They are prepared to answer any questions concerning debt consolidation, debt negotiation, credit counseling or bankruptcy. There goal is to provide educational resources, professional financial services and realistic debt solutions that will help put their clients on the right path for a healthy financial future.

Getting Started With Debt Settlement Palm Beach

To start the process towards debt freedom visit www.debtma.com – Debt Settlement Palm Beach and fill out the no-obligation application for a free debt consultation. A certified credit counselor will contact you within 24 hours with information regarding debt relief options that will specifically suit your financial situation. Not every debt settlement option is right for every person. Understanding what is available, how it works and the implications associated with the choice will provide you with the knowledge needed to make the best choice for your debt settlement needs.

For more information about debt settlement Palm Beach.

Debt Settlement Palm Beach

Getting debt under control is easier said than done, of course. Reducing debt levels can be extremely difficult, especially because wages have been rising so slowly in recent years. Raises for most employees have barely kept pace with the cost of living, and in some cases, real wages have even fallen. Given these difficult economic circumstances, it is no wonder so many single people and married couples find it so difficult to pay their bills on time.

If you are having problems paying bills, however it is vital to get help before things get completely out of hand. Often the indebtedness is not your fault – a sudden emergency or medical problem can quickly allow bills to pile up to an unsustainable level. But no matter what the reason for the debt, it is important to seek the help of a qualified debt counselor as soon as possible. Often problems with mounting debt can be nipped in the bud and a reasonable payment plan can be established.

Establishing a payment plan the client can live with yet which still satisfies the creditors is at the heart of the debt reduction and debt counseling industry. Debt counselors are very skilled at working out very good repayment programs on behalf of their clients. Often the debt counselors can convince creditors to significantly lower interest rates, or even to accept a lesser payment on some debt. That is why the services of a qualified debt reduction service can be so important to any couple.

The debt reduction counselor will also take the time to speak to each spouse and understand what is important in terms of money. It is important that the couple agree on a single debt reduction strategy. It is also important that the couple sit down and plan a monthly budget that both spouses can agree on and stick to. Credit counseling and budgeting advice are two of the most valuable services offered by debt reduction companies, and it is vital that the couple agree on the best way to manage their money and control their spending.

By: Ryann Cairns | sosdebt.org

organizations to analyze the financial situation of the consumer, discuss or create a budget and provide the available options that will best support the consumer in settling their credit card debt.

General Credit Card Debt Settlement Options

In general there are three options for resolving overwhelming credit card debt. Each of these options should be discussed with a certified credit counselor who has the knowledge to provide guidance towards making the most appropriate debt relief decision to resolve the debt as well as provide educational tools to prevent debt occurrence in the future.

• Debt Consolidation- for the individual who has income and can make payments, debt consolidation may be an option. Debt consolidation can combine credit card debts into one lowered monthly payment that will help the debtor to pay down their debt in a more affordable way. A credit counselor can mediate between the debtor and creditor to lower interest rates and potentially remove penalties and or late fees, etc.

• Debt Settlement- If a debtor can not afford payments on their credit accounts and have likely gone to collections, debt settlement may be an option. Debt settlement is process in which a debt negotiator can be hired to negotiate with creditors on behalf of the debtor to agree on a less than full settlement amount that may be paid to bring the account to a zero balance. The debtor can settle their account without paying the full debt.

• Bankruptcy- This option is advised as a last chance debt relief option. Bankruptcy allows a debtor to file bankruptcy with the aid of an attorney to have all eligible debts discharged creating a “fresh slate”.

Credit Card Debt Settlement Consequences

For every choice there is a consequence. This is why it is vital that the debtor discuss each option fully with their credit counselor. There are implications with each procedure from tax liabilities, to how the process will affect a credit score and so on. If there is the possibility to pay a debt then by all means make arrangements to do so. For those who do not have the income to pay a debt what so ever there is help available. The first step towards credit card debt freedom is to speak with a credit counselor. For a free  debt consultation visit www.debtma.com.

For more information about credit card debt settelement.

It is no wonder then, that even the smallest financial setback, like car repairs, home repairs or the loss of a job, can trigger a dangerous spiral into ever increasing levels of debt. It may seem like you are stuck with debt, but there are steps that smart consumers can take to reduce and eliminate what they owe.

Unfortunately today financial planning is taught mostly in the school of hard knocks. Very few schools teach financial matters in any great depth. As a matter of fact, it seems that many teachers, and many parents for that matter, are clueless on subjects financial. Therefore, unlike other important life skills, financial planning skills are unlikely to be passed from generation to generation. This leaves many young adults ill equipped to handle the financial stresses they encounter, both in college and in the workplace.

Not too long ago, it was relatively difficult to obtain a credit card. I remember wanting a credit card of my own when I started working, and being denied again and again because I had no credit history. The only place that would provide me with a credit card was my own bank. Once I had that first credit card, though, it seemed like the offers just started rolling in, and they still have not stopped.

That was a long time ago, however, and it seems that banks are no longer so picky about extending credit. These days, it is not unusual for teenagers to be offered credit, even before they have left for college. If you are a parent of a teenager, you may have noticed these offers in your mailbox. With younger and younger people getting credit cards of their own, it is more important than ever to learn how to deal with credit card and other debt.

The most important step in dealing with debt is to make, and stick to, a realistic monthly budget. However, you would be surprised how many people are totally lost when it comes to creating a budget for themselves and their family. Making a monthly budget is certainly not a fun thing to do, and it is unlikely to make the top 10 list of things to do this weekend, but it is an important fundamental step to getting a handle on your finances and getting yourself out of debt.

Creating a budget can help you find places where you can cut back and have more money to use to pay off your debt. Even saving a few dollars a day can go a long way toward getting your debt under control. A good understanding of the expenses that are truly necessary and those that are strictly optional can help you budget your money effectively no matter how large or small your income.

Once you have squeezed out all the extra money you can, if you are still stuck with debt, it may be time to talk with your creditors directly. You may be able to negotiate more favorable terms with your creditors. Just a small reduction in the interest rate on your credit card debt, or the waiver of a couple of penalties, can go a long way toward helping you pay off your debt.

When negotiating with your credit card companies, always remember that it is in their interest as well as yours that you do not declare bankruptcy. Do not be intimidated or afraid to ask for the terms you need to repay what you owe. In some cases, the bank may even be willing to accept a lower repayment amount. It never hurts to ask.

If you feel like you are stuck with debt, don’t despair. There are plenty of people who have successfully dealt with their debt and gone on to enjoy the benefits of financial freedom and a debt free life.

By: Ryann Cairns | sosdebt.org

In the same way, we should have in place ways to measure our level of debt. If you can get that same feel for whether your debt level is acceptable or beginning to become a problem, then you can take appropriate measures to get it in balance with the rest of your budget. Below we will present a questionnaire for you to review. You are familiar with this format. If you answer yes to more than a quarter of the questions, it is time to think about taking more aggressive action to resolve your debt. Moreover, the questions themselves will give you some feel for areas for you to address. So let’s get started.

1. What is the level of your savings and are you adding to it regularly?

2. Do you sometimes have to use your credit cards to pay for necessities?

3. Is the percentage of your total cash flow that goes to debt increasing?

4. Do you have more than three credit cards or credit resources other than car or home?

5. Are the credit balances on your credit cards going up each month?

6. Are you maxed out or close to it on your credit limits?

7. Do you ever pay bills counting on the mailing time to cover when you will get the money in?

8. Do you have to use a calculator, spreadsheet or go check to know how much you owe on your credit cards?

9. Do you use high price cash advance services to pay off your credit cards sometimes?

10. Have you ever had a credit card declined because you were over the credit limit?

11. Do you know your credit rating?

12. Have you been declined for credit because of your high credit balances?

13. Have you overdrawn your checking account in the last three months?

14. Do you have debt collectors contacting you about your balances?

15. Do you make only the minimum payments on credit card debts?

16. Do you keep the level of debt a secret from your family so they won’t worry?

17. Do you feel like you will never catch up?

18. Do you have a plan for getting out of debt?

19. Would one more big bill like a new car put your budget under?

20. At this rate, would the time to pay off your debts be more than two years?

These are pretty tough questions and if you found yourself answering yes to the majority of them, then you know now that you have a credit problem. But believe it or not, recognizing the problem is the biggest step for getting a solution in place. Now that you have gone through the thought process, there are a number of steps you can take to get the problem under control.

* Go and get all of your statements and review them, make a list or a spreadsheet of your balances, minimum payments and due dates.

* Get a colander and mark it up with all the credit card due dates. Put that up somewhere so you are aware of them before they come due. Often times we let credit card due dates go by because we are avoiding the problem. Then you end up paying late fees and that hurts your credit rating even more.

* Order a credit report. The big three credit reporting agencies are Experian, Trans Union and Equifax. You can go to their web sites to order the report. It isn’t very expensive and it will give you an idea where you stand. I know that isn’t a pleasant prospect but as we talked about earlier, knowing where you are is the first step to repairing your credit and getting out of debt.

* Now the really hard part. Sit down with your spouse and discuss the problem. Prepare a report using your on line software or spreadsheet or just with a tablet and lay it all out where you are. Discuss budget cutbacks or additional work you can do to get the situation turned around.

When you are done with these steps, you will feel much more like you have control of your budget again.

By: Ryann Cairns | sosdebt.org

How Debt Settlement Works

Debt Settlement Programs enable a person to negotiate with their creditors in an attempt to agree on a less than full amount that will be accepted as full bringing the account balance to zero. There is no guarantee that a creditor will accept these terms, but in many cases a consumer can pay 50% less than the full amount owed to settle their account. Consumers can negotiate with creditors on their own if desired, however most consumers chose to use a professional debt settlement company to negotiate on their behalf. A consumer will stop paying a collection agency and save this money in a settlement fund. It is estimated to save at least 50% of the debt owed. If and when a creditor agrees to the settlement amount the money in the savings fund is used to pay the lowered debt amount. The account will then be viewed as paid as settled, making the consumer no longer obligated to the creditor.

Complications Of Debt Settlement

Through a Debt Settlement Program a consumer can have their debt settled for less than they owe, however the unpaid debt portion can be taxed. This should be discussed with a financial adviser or counselor prior to the settlement process to ensure clarification. This process does impact ones credit due to being marked as paid as settled instead of paid in full. It is seen in a more positive light than bankruptcy in which no debt is paid, but discharged instead. To ensure that a debt settlement program is the right choice a consumer should speak with a certified credit counselor in order to analyze the financial situation and discuss debt relief options, including the bankruptcy alternative of debt settlement.

For more information about Debt Settlement Programs.

Reduce or eliminate interest charges (debt consolidation)

Stop harassing creditor calls (debt consolidation & debt settlement)

Have one lower monthly payment (debt consolidation)

No upfront fees (debt consolidation & debt settlement)

Credit Debt Consolidation

Through a DEBTMA™ Debt Management Program a clients debt  accounts can be combined into one lower monthly payment, which can be set up upon request as an automatic withdraw from a checking or savings account.  All payments go directly to the creditors each month. Clients continue to receive debt statements and are able to track the balances as they are paid down. They see all payments reflected in these statements directly from their creditors. This program enables a person to pay off their full debt at a reduced  interest rate.  Debt Consolidation allows a debtor to pay back the full debt at reduced rates (lower interest rate).

Credit Debt Negotiation

Bankruptcy is enticing, but it is not the best solution for every individual. An effective alternative to bankruptcy is Debt Negotiation (Debt Settlement). The choice of Debt Negotiation is a process in which DEBTMA™ will negotiate and reduce the debt balance to assist the client in paying their debt balance down to zero without paying the full balance.  Bankruptcy is a costly service that requires upfront payment to an attorney, filing fees, mandatory credit counseling and tarnishes your credit record. Debt Settlement is effective at resolving your debt to a zero balance, while avoiding attorney fees. It’s quicker to repair your credit after debt settlement as well. Debt negotiation can:

Bring the debt balance to zero without having to pay the full balance

Alternative to bankruptcy

No monthly service fees

No retainer fees for an attorney

For more information about credit debt settlement.

Debt Settlement Negotiation Process

Debt Settlement Negotiation is a program designed for consumers with serious debt problems who are unable to maintain payment obligations and are considering bankruptcy. Through Debt Settlement Negotiation a debt relief company will negotiate with the creditor on behalf of the consumer in an effort to agree on a settlement of a less than full amount to be paid to bring the account to a zero balance. Until the settlement is reached additional fees such as interest, over the limit and late payment fees may be added to the consumer debt balance. Collection calls and letters will continue to be sent to the consumer until a settlement is agreed upon. There is no guarantee that a creditor will agree to settle for a partial payment of a legitimate debt. This information should be explained to the consumer during a free no obligation consultation with a certified credit counselor.

Debt Settlement Negotiation Savings Fund

Consumers should also be made aware that they will be responsible for setting aside money to pay the settlement amount. The Debt Settlement Negotiator will inform the consumer of a specified amount upfront.  Based on the consumers income and saving ability they will deposit the amount possible into the account for flexibility. Upon settlement agreement this “settlement fund” will be used to pay off the debt for a zero balance. The debt relief company used for this process can also assist the consumer in creating a household budget and provide them with other educational tools to help pave the right path toward a healthy financial future.

For more information about Debt Settlement Negotiation .

Take Action For Card Debt Settlement

The first steps to ending credit card debt is to start at home. Sit down and write down how much each card is holding. Add up all of your card balances for a grand debt total. If you have more than one credit card take the one card with the lowest interest rate and set it aside, it is wise to have one credit card for emergency purposes. Take all of the other cards and cut them up. Its a matter of removing the temptation to help you achieve debt freedom. Next step is to create or reorganize your budget. Write down your income, expenses and debts. How much do you need for food, housing, transportation and childcare? You need to know the must pay amounts to meet the needs for your family. Now consider where you can cut back including entertainment, restaurants, etc. Now analyze your situation. Can you afford to make payments towards your credit card debt? If you answer yes seek credit counseling or debt consolidation. You can make one lower monthly payment with lowered interest rates to help you gain control over your credit card debt.  If you crunch the numbers and there is no way you can squeeze another penny towards your debt seek a debt settlement.

Card Debt Settlement Process

Card Debt Settlement is a program for dire situations only. It is an alternative to bankruptcy that can help a consumer to negotiate with their creditors in order to have part of their debt forgiven, allowing them to pay a less than full amount to settle the account for a zero balance. The consumer uses a professional debt settlement service to negotiate on their behalf. The negotiator will review the card debt accounts, contact creditors and negotiate towards a settlement. This process can take months to years to resolve. There is no guarantee that the creditors will agree for a partial payment settlement, but if and when they do a consumer pays only a partial amount of their card balance to end their debt.

For more information about Card Debt Settlement.

Fort Lauderdale Bankruptcy Avoidance Options

There are two main solutions for debt relief beyond bankruptcy. There is Debt Consolidation and Debt Settlement. A certified DEBTMA™ credit counselor can speak with debtors and review the financial situation of the individual in order to assist them in choosing the right debt relief option for them. Speaking with a certified DEBTMA™ credit counselor can ensure that a debtor makes the most informed choice for the best result. Avoid Bankruptcy Fort Lauderdale - For a free debt consultation visit  http://debtma.com/ or call toll free at (866)-597-7748. Submit the simple contact form to speak with a credit counselor or submit the no obligation debt consolidation form today.

Fort Lauderdale Debt Consolidation And Debt Settlement

Debt Consolidation enables a consumer to make one low monthly payment through DEBTMA™ which goes directly to the creditors each month. Creditors are satisfied to receive a regular payment each month. Debt Settlement is a process in which DEBTMA™ will negotiate with creditors to reduce the overall debt balance in order to pay off the debt to a zero balance without having to pay the full balance.

Avoid Bankruptcy Fort Lauderdale

The DEBTMA™ president, Ms. Doreen Rubin is a strong negotiator who has built relationships with top credit card companies including Wachovia, Chase, Citibank, Bank of America and other industry leaders, which enables her to come to debt settlement agreements much quicker and at a more favorable rate.  Bankruptcy should be the last choice in debt relief. By speaking with a certified DEBTMA™ credit counselor you can better understand which debt relief options would best suit your unique financial situation. For a free consultation visit http://debtma.com/ or call (866)-597-7748.

For more information about how to

avoid bankruptcy Fort Lauderdale

The past several decades have seen an explosion in the levels of consumer debt. While many of our parents and grandparents went their entire lives without incurring any debt beyond possibly their mortgage, their children and grandchildren seem to be making up for lost time. These days it is not unusual for college or even high school students to have their own credit cards, but unfortunately education on how to use credit wisely seems to be lacking.

How Debt Management Can Help

Few high schools and colleges offer even a rudimentary course on how to budget money and use credit wisely, so it is no wonder so many people get in over their heads when it comes to credit cards and other consumer loans. It is all too easy to just sign your name for every purchase and forget about the inevitable bill.

The huge rise in levels of consumer debt has created a virtual cottage industry in debt management services. These services seek to help consumers dig themselves out of their credit card debt and stand on solid financial footing once again. The best debt management services do far more than help consumers reduce and eliminate their current debt. A good debt management service will help those consumers to learn about budgeting and financial planning. Only by learning good budgeting and spending skills can a consumer be assured that he or she will not fall back into the credit card trap.

How Debt Management Can Help

Debt management firms work with creditors on the behalf of consumers. They are often able to negotiate friendlier repayment terms than the individual can work out on their own. For instance, a credit card company may be willing to lower your interest rate substantially to make sure you are able to repay the balance you owe. In some cases, the bank may even be willing to accept a lesser amount than what you owe. After all, it is in the bank’s best interest as well as your own to keep you out of bankruptcy court.

Debt management companies have experience negotiating these kinds of deals. They often have contacts within the major banks and credit card companies. They are able to use these contacts to get deals unobtainable by the consumer working on their own.

How Debt Management Can Help

As important as it is, paying off current debt is only part of the problem, and it should be only part of the solution offered by a legitimate debt management company. It is just as important for a debt management firm to offer credit counseling services and budget courses to their clients. When shopping for a debt management company, be sure to inquire about these kinds of services. A debt management company that offers extensive credit counseling and budgeting services can help you to remain debt free.

How Debt Management Can Help

Learning to budget your money is one of the most important financial skills there is. Unfortunately, this vital life skill is all but ignored in the school system today, and even most colleges devote precious little time to this subject. No matter how much or how little money you make, it is absolutely essential that every consumer learn how to live within their means and budget their money properly. A good debt management company will understand the importance of this skill to your long term financial well being and will devote the time necessary to help every client prepare and stick to a good budget.

The bottom line is that debt management can help when consumers get into trouble, but it is vital to choose a debt management firm that has your best interests at heart. The best debt management firms work hard to not only eliminate current debt for their clients, but also ensure that they do not incur further debt.

By: Ryann Cairns | sosdebt.org

How Debt Management Can Help

Through increased availability of information pertaining to debt management programs and repayment opportunities, the Department of Education recorded that 2,380,741 borrowers, under the Federal Family Education Loan and the Direct Loan, entered repayment, compared to 130,036 that defaulted. This brings the national default average down to a record low 5.4 percent.

In an effort to avoid defaulting on student loans, the first step is conducting proper and thorough research so as to understand all the repayment options available. Since financial circumstances are highly individualized, it is only to be expected that repayment options must and do follow similar customized patterns.

The standard ten-year plan, in which borrowers pay a fixed monthly rate over a ten-year period, is not the only route to take. There is also the graduated plan, which stipulates that the borrower is able to make lower monthly payments towards the beginning of the plan with the payment amounts increasing incrementally.

The Department of Education reports: “Typically, Bachelors degree borrowers pay back $151.00 per month, whereas Masters degree borrowers pay back approximately $244.00 per month.”

Extended repayment is available for borrowers that want to increase the period of time over which their payments will be made. Under this plan, the repayment period is extended up to twenty-five years. There are, however, a few qualifications that one must satisfy in order to be eligible for this program.

For instance, an interested debt ridden person must be a relatively “new” borrower with Stafford Loans totaling $30,000 or more received after October 7, 1998. Many people that opt for this plan do so in part because of its flexibility: payments can be either fixed or graduated.

One of the most customized plans is the income-sensitive repayment. Through this option, the monthly loan repayment amount is adjusted annually based on the participant’s annual income.

Even though there are plenty of repayment options available to students immediately after they graduate, this does not mean that graduates must immediately enter into repayment.

One common avenue that graduates pursue is that of loan deferment. Nellie Mae, one of the nation’s largest debt service providers, defines loan deferment as, “a temporary period during which no payment is due.” While the borrower is in deferment, the federal government pays the interest that accumulates on Subsidized Stafford Loans. During the deferment period, the borrower is only responsible to pay the interest incurred as a result of any unsubsidized loans.

“In order to qualify for a deferment, a person must prove that they are returning to school for at least half time, be engaged in an approved fellowship training or rehabilitation training for the disabled, unable to find full-time employment, or experiencing economic hardship,” reports Nellie Mae’s debt management service, EDvisor.

Furthermore, the length of deferment varies from borrower to borrower based on the type of loan they utilize and the initial date of their awarded loans.

In addition to loan deferment, loan forbearance is another less common option. This is feasible when a person is “not financially able to make student loan payments, and do not qualify for a deferment, or if the borrower’s education debt to loan ratio exceeds 20%,” explains Nellie Mae’s online EDvisor. Entering into a period of forbearance allows struggling debt-repaying graduates to reduce their monthly payments, or in some cases, temporarily pause them. Since interest continues to accumulate during forbearance, the borrower remains responsible for interest payments.

One of the most common and recommended dept-repayment strategies is that of consolidation. This option is ideal for borrowers with very high interest rates, loans from multiple lenders, or both. Consolidation is a way for people to streamline their bills in an effort to lower their monthly payments and answer to only one bill a month.

It’s important to understand, however, that though the monthly payments become lower through consolidation, the life of the repayment period is increased and thus, in the long run, the total interest paid increases as well. The repayment period cannot exceed thirty years.

Depending on the situation, loan cancellation may be another possible option. This will only occur however with Federal Stafford, PLUS and Perkins loans in the event of the student’s total and permanent disability or death, [sometimes] bankruptcy, the college or university attended by the student closes before they finished their program.

An important opportunity that students should be aware of is that Stafford loans totaling less than $5,000, or Perkins loans, may be forgiven should you choose to serve low-income families by teaching in particular elementary or secondary schools.

The Perkins program has further loan cancellation provisions for students entering a teaching profession, law enforcement, nursing, Peace Corps, or the military.

“If you find yourself with an unexpected financial windfall, consider paying one or more of your loans off immediately. There is no penalty for pre-paying,” advises the Debt Management program offered by Nellie Mae.

Another strategy detailed by Mae’s national debt service is to consider accelerating payments if the borrower enjoys an unexpected surplus of funds at the end of the month. While this will not alter the amount of the monthly payment, if done even on an occasional basis, over-paying will decrease the amount of long-term interest incurred.

A final rule of thumb for students looking to emerge from the cloud of debt: pay off the most expensive loan first, possibly by paying the interest on that loan while still in school.

By: Kate Ellis

Get Started Now! and receive a FREE consultation from a certified credit counselor and learn how much money our service can save you.

A recent study released by Nellie Mae, the nation’s largest nonprofit provider of student loans, reported that “the average debt for student borrowers who went to public four-year colleges was $13,000, compared with $17,500 for those who went to private colleges.”

Furthermore, students pursuing advanced degrees through graduate schools were said to chalk up a debt average of $24,500, while professional school grads faced a lofty $48,500 burden.

Before taking out any sort of loan, students need to become familiar with the market and its language. According to Nellie May’s Debt Management EDvisor program, there are three fundamental points that loan-seekers should acquaint themselves with: cost of attendance (COA), the loan limits of a loan program, and their projected ability to repay the loans.

The cost of attendance is the sum of both direct and indirect costs, meaning both tuition and housing fees, as well as costs for books, supplies, and transportation. It is important to note that the cumulative amount of financial aid received by a student cannot exceed their COA.

In terms of loan limits, students are encouraged to utilize the full potential of their federal loans before resorting to private loan programs. The Federal Stafford loan has two variations: subsidized and unsubsidized. The difference being that with subsidized loans, the government pays the interest while the student is still in school, whereas with the unsubsidized loan, the student is responsible for all interest incurred from the initiation of the awarded loan.

The annual limit of the Federal Stafford Loans varies depending on the grade-level status of the student. For instance, the current annual limit of both Stafford loans for a college freshman is $2,625, for a sophomore is $3,500, or for a junior and beyond is $5,500.

Perhaps one of the biggest struggles for collegiate scholars lies in determining how much money to borrow in the form of loans. Nellie Mae instructs students to base this calculation on their anticipated starting salary, which can be estimated through averages of starting salaries for various majors/disciplines.

JobWeb, for example, reported that the average starting salary in 2001 for accounting majors was $39,720, English: $31,014, computer science: $52,473, and psychology: $29,952.

This introduces a secondary dilemma amongst many college students however, since many remain undeclared/undecided on which major they want to pursue. According to the Higher Education Research Institute, 8.4 percent of college freshman in 2002 had not decided on a major. Therefore students are entering the collegiate realm already shouldering the burden of debt without developing a solid repayment plan based on their aspirations and goals.

Current research suggests that college grads looking to repay their loans should not budget more than 8 percent of their monthly salary in order to maintain a manageable financial plan. Likewise, Nellie Mae reports “a good rule of thumb for estimating loan payments is that you will pay approximately $125 per month for every $10,000 borrowed.”

In order to minimize the total amount borrowed, students should attempt to make smart financial decisions through reduced spending and informed buying. Three tools that Nellie Mae suggests using to reduce borrowing are free scholarship search databases, like www.wiredscholar.com and www.fastweb.com, employer assistance, and employment options, such as the Federal College Work-Study program.

While students usually remain enrolled for at least four years, it is easy to lose track of money borrowed and lenders borrowed from. Keeping a loan record of financial aid information is an imperative preparation step for students utilizing aid tools.

Once the research has been completed and the aid type and amount has been applied for and approved, students begin their debt journey, only to end when the last penny has been re-payed. Repayment opens a whole new exploration of questions, and answers, which deserve a special focus, to be found in the second segment of this article, titled “Repayment: the ins and outs”.

By: Kate Ellis

Get Started Now! and receive a FREE consultation from a certified credit counselor and learn how much money our service can save you.

Debt Settlement Miami

Debt freedom can be a reality through the assistance of DEBTMA™.  DEBTMA™ is a Debt Management & Debt Consolidation provider that offers professional credit counseling and financial assessment for those with high interest debt. They offer multiple payment plans that can help a debtor to consolidate their debt into a single lower monthly payment and substantially lower interest rates. This process enables many people to pay of their full debt balance and gain financial freedom.

Miami Debt Settlement

DEBTMA™ also offers Debt Settlement for those looking for a bankruptcy alternative. Debt Settlement also known as Debt Negotiation is a process in which the Debt Negotiator works with creditors to agree on a lower payoff amount to resolve the outstanding debt owed to the creditor. A person is able to satisfy a debt in full while paying less than the full amount. Once the debt settlement is processed, collection calls and legal action will cease. Many Debt Management companies charge a up front and monthly fees. DEBTMA™ does not require any up front payment or monthly service fee. They receive no money until the debt is settled with the creditors.

Is Miami Debt Settlement The Right Choice

As a debtor it can be confusing to know which debt relief program is right for your unique financial situation. DEBTMA™ doesn’t offer a one size fits all program. Their team of certified credit counselors communicate with each client with understanding and knowledge. They will review the individual financial situation of the client (income, expenses, debt, etc.) in order to have a clear view of the debt to income ratio in order to create the best possible solution.

Debt Settlement Miami

A new lower monthly rate with a lower interest rate may be provided through Debt Consolidation if applicable. If Debt Settlement is the best option, then the client will receive a thorough explanation of the process and if agreed, the process can begin promptly. Debt Negotiation or Debt Settlement enables a debtor to pay off their debt to a zero balance without having to pay back the full debt amount. DEBTMA™ is here to help those suffering from the burden of debt to become educated about their finances, receive professional financial services and customized debt management plans (DMP).

For more information about Debt Settlement Miami

The explosion of credit card debt to dangerous levels has made lenders wary of many consumers’ ability to pay their debts.  The result has been a significant increasing of minimum payments and annual percentage rates (APR’s) to astronomical, usurious levels while, at the same time, decreasing credit limits.  There’s hardly anyone who hasn’t been stung by this inequitable practice.  Worse, the consequences of these defensive tactics have only succeeded in doing the opposite of their stated intentions. They’ve unjustly created more debt and pressure on the consumer!

What can consumers do to combat these unfair practices?  Unfortunately, very little!  Every lender has the legal right to lower limits and raise interest rates.  However, when the money is not there and the bills must be paid, what are you supposed to do?  The problem is so pervasive, a new cottage industry has sprung up within the last several years to address this issue.  Almost all offer the same services, including credit and bankruptcy counseling.  But with so many out there, how does the consumer know how to choose the debt reduction service that is not only legitimate, but also gets the best results at the lowest costs?  Does that even exist?  Yes, it does!

The easiest and best way to solve negotiate debt settlement is DebtMa, a debt resolution company specializing in consumer debt help.  Going to bat for its clients in an aggressive way, DebtMa uses honest, clear, and transparent measures to help you.  It has an arsenal of effective tools to negotiate with lenders on your behalf.  All you have to do is turn everything over to DebtMa.  They’ll employ critical solutions such as debt forgiveness, lower interest rates, payment plans, plus other services.  Because DebtMa’s professionals have been helping people since 2002, they know how to handle credit companies and collection agencies.  They are demonstrably more successful than the average consumer.  In some cases, DebtMa can get you out of debt in a matter of months!  Even better, DebtMa’s has a Better Business Bureau A+ rating.

Beware!  There are many companies that promise you the moon.  But what good is that if they offer you no way to get there or back?  How can you determine who is honest and who has the best programs and prices?  What are the differences?  DebtMa is the difference!

Obviously, the banking sector suffered most (as did the government sponsored lending institutions, Fannie Mae and Freddie Mac).  The residual “bad debt” from poor lending practices was the culprit.  It accumulated because of our government’s insistence lenders make home loans they knew could not be repaid.  However, lenders escalated the problem by bundling their unfunded liabilities into packages and selling them to investors.  This greatly exacerbated the problem, extending it to other entities nationwide as well as internationally.

Initially, the hardest hit industries were related to housing (i.e. builders, plumbers, roofers, painters, and landscapers).  Workers as well as suppliers relied on these contractors.  As the market for housing plummeted, the need for people and products evaporated.  Millions lost their jobs.  The fewer jobs available, the less money there is to spend.  Little amounts of money changing hands impacts our entire economy in a monumentally negative way, affecting all walks of life.

Business is the backbone of our economy.  Did you know about ¾ of all businesses in the United States have no payroll?  What sounds unbelievable is quite simple.  Most are self-employed people, operating unincorporated businesses (which may or may not be their principal source of income).   Because non-employers only account for about 3.4% of business receipts, they’re not included in all business statistics.

However, according to the U.S. Small Business Administration (SBA), small businesses account for over half of all private-sector jobs.  Responsible for 44% of the U.S.’s private payroll, it creates more than 50% of non-farm private gross domestic product (GDP), and generated 64% of net new jobs over the past 15 years.

Unfortunately, there’s a continued battle today to find capital and new customers.  Even though the lending institutions accepted federal funding to help with their shortfalls, they’re not lending the way many programs intended.  With no guarantee things will change, the question arises, “How did/do businesses make it?”

So far, many have survived on their private and business credit cards.  It’s been a difficult, long haul, with many businesses and individuals suffering bankruptcies and foreclosures.  It’s a sad commentary that business debt continues to escalate.

The truth is there will be many more of us needing credit counseling, debt reduction service, liability restructuring, and other programs to get us where we want and negotiate debt settlement.  Finding this kind of help is both tricky and risky.  How do you know who to trust?  How do you differentiate between the scammers and the good guys?  How can you tell if you’re getting the best bang for your buck?  There’s one simple answer to all of these questions: DebtMa.  A Better Business Bureau A+ rated company, DebtMa’s been successful since 2002 with the lowest administration costs in the business.  Consumers beware!  There are huge differences in businesses that do this kind of work, but DebtMa makes the difference!

For instance, one type of debt that can seem to last forever is student loan debt. A quick look at the numbers reveals why this is so. College tuition costs have been rising far higher than the overall rate of inflation for many years now. The compounded effect of these constant tuition hikes can make college totally unaffordable without financial aid.

While there are a number of excellent student loan packages available to college students, paying these loans down can be very difficult. A newly graduated college student is unlikely to be making a very high salary, even in a competitive environment. A downturn in the economy right before graduation can make this situation even worse. Many former college students find themselves in the uncomfortable position of being unable to make their monthly college loan payments. There are some programs available which allow students to consolidate their student loans and pay them off over a longer period of time, however, and this approach is preferable to wracking up credit card debt in an attempt to pay off college debt. Look around for these loans or ask your local bank loan officer for options.

If you own your own home, you may be able to use a home equity loan to retire your old debt. The interest rates on home equity loans are almost always much lower than the interest rates on credit cards or other types of loans. If you have built up equity in your home during the recent housing boom, you may be able to tap this equity to finally get rid of that old debt you’ve been carrying for years.Just remember, however, that you are pledging your home as collateral. This means that if you are unable to make the payments, your home could be at risk of foreclosure. Be absolutely sure that you will be able to afford the payments on a home equity loan. Also be sure that you use the proceeds of the loan only for debt repayment and not for more spending.

A personal loan from your local bank can also be a good way to pay off old debt. Like a home equity loan, a personal loan will likely carry an interest rate far lower than that you would pay on your credit cards. Using credit to pay off old debt is the worst thing you can do and will only get you further and further into debt. By using a personal loan, you can eliminate your old debt and have one monthly payment instead of the many you may be making now.

Paying off old debt can be a difficult thing to do. The debt that took only days or months to create can end up taking years or even decades to get rid of. But being aware of the many options besides using credit can make your financial life easier
and put your mind at ease.

By: Ryann Cairns | sosdebt.org

According to a Wall Street Journal piece, estimates reveal outstanding federal and private student loans today total over $829,785 billion.  Of this, $605.6 billion is federal and $167.8 billion is private student loans, making the American consumer owe more on student loans than credit cards. To emphasize the recent current trends, the author estimated approximately $300 billion in federal student-loan debts have been incurred just over the last four years.

When you add educational expenses to other credit card debts, plus the liabilities imposed on our young people from our government’s out-of-control spending, you have an unacceptable, untenable situation fostering disaster!  Unlike credit card obligations, student loans can’t be discharged in bankruptcy, leaving the borrower(s) facing dire, strict consequences.  Is this healthy and where is it leading us?

Typically, students pay for their education in one of the following ways (or a combination of several): parents, employment, grants, scholarships, and loans.  In 2010, 66% of college seniors graduated with loans carrying an average of over $25,250 in debt.  Can you imagine what that might be for those who elect to continue their education for masters and/or doctorate degrees?

Another report from June, 2010, reveals Americans owe some $826.5 billion in revolving credit (mostly credit card liabilities).  Soaring college costs have caused an increased number of students to charge more to credit cards.  This has been a major factor in boosting current credit card debt to record levels.  The average undergraduate carries over $3,300.00 in credit card debt.  Furthermore, studies have shown the higher the grade, the higher the debt.

It’s evident that almost all spending and debt levels in the United States have reached monumental proportions.  Economically, we are addicted to overspending and using overcharging as a means to pay for it.  Our day of reckoning is here.  We cannot survive this weak, flawed, and unsustainable situation.  The only answer to problems this critical is debt negotiation services and debt reduction.

It’s a sticky situation with a tricky component: finding the “needle in the haystack,” a legitimate, honest, and successful company to trust with our financial lives.  DebtMa is the one with a proven track-record of giving good debt negotiation advice.  In business since 2002, DebtMa has an A+ rating from the Better Business Bureau.  It’s demonstrably different from others because it offers transparency, lower rates, and successful outcomes.  It will greatly reduce or eradicate debt and provide tools to break the “debt habit.”  DebtMa makes the difference.

The Federal Trade Commission says to take caution when reading phrases like, “Consolidate your bills into one monthly payment without borrowing,” “STOP credit harassment, foreclosures, repossessions, tax levies and garnishments,” “Keep your property!” “Wipe out your debts! Consolidate your bills! How? By using the protection and assistance provided by federal law. For once, let the law work for you!” “You’ll find out later that such phrases often involve bankruptcy proceedings, which can hurt your credit and cost you attorneys’ fees,” warns the FTC.

First, it’s important to understand your rights as a consumer under the Fair Credit Reporting Act (FCRA). Every consumer has a consumer report that acts as a sort of financial portfolio that credit bureaus and credit reporting agencies sell to employers, insurers, creditors, and the like. The information included in this portfolio ranges from personal loans, credit card applications, to insurance plans and coverage.

More recently, however, the President signed the Fair and Accurate Credit Transactions Act of 2003 (FACTA) on December 4, 2003. The FTC reports that FACTA “makes sweeping changes and additions to the Fair Credit Reporting Act (FCRA). Some of these changes include “making the FCRA’s uniform national standards permanent, enhancing protections against identity theft by making it easier to detect this fraud, offering free annual credit reports to consumers, and creating ‘adverse action notices’.” For more information on the above legislation and your rights, visit the Federal Trade Commission online at www.ftc.gov.

The three main credit bureaus that you should be familiar with are Equifax, Experian, and Trans Union. While these are the three main bureaus, many other exist therefore it’s important that if you are denied insurance, credit, or employment due to information from a CRA, the organization denying your application is required to provide the name, address, and telephone number of the CRA. It’s important that you locate all of the agencies that harbor your consumer report.

Within your consumer report there are four major categories of information that companies or employers are seeking when purchasing your report, according to the FTC: identification and employment information, payment history, inquiries, and public record information. You have every right to access the information in the report, but you have to ask for it and usually pay a $9.00 fee.

When you access your information you’ll see that the identification and employment section includes: “Your name, birth date, social security number, employer, spouse’s name, employment history, home ownership, income, and previous address,” explains the FTC. Payment history details your connections to various creditors, including amount of credit extended and payment timeline. CRAs also keep records of creditors that have sought out your information within the past year; these records are called inquiries. Finally, information categorized as public record typically includes bankruptcies, foreclosures, or tax liens.

While the only sure formula to improve your credit is an even mixture of time, diligence, and effective budgeting, the FTC offers valuable tools and steps to deal with debt. To read about the guidelines outlined by the FTC, read Debtma’s article entitled, “The FTC Offers Four Debt Strategies.”

With a solid knowledge of your consumer rights under FACTA and the FCRA, you can begin to research consolidation and credit scams: identifiable characteristics, schemes, and how you’re protected and can protect yourself. Read about these useful skills in the Debtma article entitled, “Scams and Safety.”

By: Kate Ellis

Employers are also running credit checks on current employees in order to make decisions regarding promotions and in some instances, terminations. While an employer might be opening the path for a wrongful termination suit for firing an employee over a credit check, the fear of lawsuits doesn’t seem to be stopping some employers.

Some employers seem to feel the cost, and the risk, are worth the valuable information they can obtain from running credit checks. The process of running a credit check involves a fee paid by the employer, but given the high cost of training a new employee and the risk of loss due to theft, many companies feel the fee is worth it in order to insure they are hiring an employee they can trust.

Critics state running credit checks for the purposes of selecting a job candidate is an invasion of privacy and discriminatory. Job seekers are concerned that past credit problems, which may have occurred through no fault of their own, will keep them from being hired for jobs that would have otherwise been a perfect match for their skills and experience. In many instances individuals are realizing that mistakes made even years in the past may keep them from landing their dream job. In other circumstances, bad credit resulting from divorce, job loss or medical situations are having a negative impact on job seekers.

Employers defend themselves by claiming they aren’t doing anything they don’t have permission to do. Since credit checks can’t be run without authorization by the person involved, many job applications now carry this release as a standard inclusion. Job seekers who aren’t careful to read over the fine print, however; may find themselves agreeing to have a credit check run on them and not even be aware of it. Still yet, others may realize what they are agreeing to but feel powerless to stop it. The reality is that job seekers know refusing to submit to a credit check is tantamount to losing the job anyway. Employers who insist on running a credit check won’t be likely to hire a candidate who refuses to comply.

Among the information an employer can glean from a credit check on an existing or prospective employee is bankruptcy information, liens and judgements, child support obligations, loan and credit card payments as well as information about how else has run a credit check on that same individual.

Employers who run credit checks on prospective and existing employees are looking through this wealth of information for a few key pieces of data. Specifically, they are looking to find out whether employees pay their bills on time and if the bills are later, how late they are. In addition, they are looking for bankruptcy information and any information that may indicate there has been a lawsuit in the picture. Finally, one of the most disturbing pieces of data employers are looking for is confirmation of the applicant’s identity. In a world where identity theft is becoming more common and much more dangerous, employers are wanting to reassure themselves that they are really hiring who they think they are.

Regardless of the wrongs or rights of this practice, it seems to be here to stay. The best hope a job seeker has of combating credit checks run by employers is to stay two steps ahead by keeping an eye on their credit histories themselves. That won’t erase past problems, but at least knowledge is power. Taking the initiative to step forward and explain a splotchy credit record may go a long way with employers.

By: Ryann Cairns | sosdebt.org

I’ve always told people that the most important budget advice I ever received was the recommendation to do a budget in the first place. You should be surprised at the number of people with kids, mortgages and minivans who have never taken the time
to work up a family budget. Both parents may be working 50 and 60 hour weeks, but at the end of the month they are struggling to make ends meet as if they were newlyweds just starting out.

If you don’t keep careful track of where you money is going, you will never be able to stem the tide of red ink. It’s that simple. Before you can get control of your finances, you need to know where the money is going. Everyone has months where more money goes out than comes in, but if you are running a deficit month after month, you need to get control of the spending. Unlike the government, you don’t have a printing press in the basement where you can just crank out more cash whenever you need it. If you do have a printing press in your basement, we need to talk, but that’s another story for another day.

Starting a budget can be a time consuming and painful process, but it is absolutely vital to your financial well being. Sit down and write out a detailed list of all your sources of income, including your salary and that of your spouse, any interest or dividends you earn on your investments and bank accounts, etc. Next write out a list of every recurring monthly bill – power, water, telephone, cellular, internet access, cable television, etc. Then go through your checkbook and list all the checks you wrote the last month and what they were for. If you charge a lot of items and then pay the bill at the end of the month, keep the credit card statement and write out each item on the bill, not just the total. It is vital to have a list of every expense you incur so you can see what can be trimmed.

Do this for at least a couple of months until you get a good idea of your spending patterns. You probably already have a good idea what your monthly living expenses are, but you may be surprised at how much is sneaking out the door on things that seem frivolous after some time has passed. For instance, did you really need to order pizza and Chinese takeout 10 times last month? Could you have cooked a few times and saved the cash? It is these type of things you need to track in order to work up
a realistic budget.

Too few people take the time to work up a budget and stick to it. Once you have a budget program in place, it will be much easier to match your income to your outgo and to live within your means. Who knows, after a few months of fiscal discpline, you may even have some extra money to put toward your retirement or your child’s college tuition.

By: Ryann Cairns | sosdebt.org

With this level of debt, it is no wonder that more and more people are finding that they are in debt over their heads and unable to pay their bills. There are some debt problems that consumers can handle themselves, and others that may require professional assistance from a credit counselor of debt management service. Whether you need to seek professional help depends on the severity of your debt situation.

If you have already missed several payments, of if you are being harassed by bill collectors, it may be time to seek the professional assistance of a debt management, debt reduction or credit counseling service. It is important to take care of these situations before they negatively impact your credit rating.

If you are simply feeling a bit stretched by your monthly payments, you may be able to take some steps on your own to alleviate the situation. If you have a high interest credit card with a high interest rate, for instance, you may be able to transfer that balance to a card with a lower interest rate. If you have a lot of high interest credit card debt, you may look at refinancing that debt with a lower interest loan like a personal loan or a home equity loan.

If you are unable to transfer a balance or take out a low interest loan, it is sometimes possible to deal directly with the credit card company or other creditor. In some instances, credit card companies are willing to lower the interest rate on their loans. In some cases, they may even be willing to settle for less than 100 cents on the dollar, although those cases are somewhat rarer.

If you are unable to negotiate more favorable terms with your creditors on your own, a credit counseling agency or debt management firm is often more successful. These firms are very skilled at negotiating with creditors, and it may well pay you to use their services to get your debt under control.

By: Ryann Cairns | sosdebt.org

The fundamental goal for bankruptcy is to give debtors a financial “fresh start” from burdensome debts. Bankruptcy Debt Settlement – This process enables a debtors eligible debt to be discharged entirely enabling him or her to have a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt. Bankruptcy is not to be taken lightly, though it is an enticing possibility to free ones self from debt. Bankruptcy is a simple process if and when a professional bankruptcy lawyer is in charge. Bankruptcy can be performed by oneself, but complicated paperwork can create delays and cause refiling. Correcting bankruptcy can be more expensive than filing through an attorney. Once filed eligible debts are discharged and a person can begin re-establishing their credit in 2-3 years. An alternative to bankruptcy is debt settlement.

Bankruptcy Debt Settlement

Debt Settlement/Debt Negotiation

Debt settlement is the process in which a debt settlement company negotiates with a creditor on the debtors behalf in order to compromise on a lower than full debt amount payment that will settle the account to a zero balance. The unpaid portion of debt may be a tax liability , which is why a debtor should seek professional counsel in order to understand the full process of debt settlement and the tax implications involved. Both choices have pros and cons that should be thoroughly discussed with a professional. This will ensure that the debtor has a solid understanding of the process, the associated fees and how the specific debt relief choice will effect their credit.

Credit Counseling For Bankruptcy Debt Settlement

Bankruptcy laws require a mandatory credit counseling class that must be taken six months prior to filing. This course can be taken online, over the phone or in person. This course is payed by the filing debtor out of pocket. Once completed the debtor will receive a certificate verifying that the course was taken. This class  provides the debtor with the opportunity to speak with a certified credit counselor who can discuss the debtors financial situation, budget and bankruptcy alternatives. Its always beneficial for a consumer to know of other debt relief options that may suit him or her better than bankruptcy. To speak with a credit counselor to learn more about bankruptcy debt settlement or other debt relief alternatives visit www.debtma.com.

For more information about

bankruptcy debt settlement

A quick look around indicates that world is gone. Consumers today are no longer reluctant to incur debt, even for everyday needs like food and rent. And where in the past, our parents and grandparents were already successful working adults before they incurred the debt of a mortgage, today’s consumers start using credit cards while in college, or even high school.

While the ready availability of revolving credit helps people to acquire the consumer goods they want and helps keep the economy humming along, it does exact a heavy toll on those who fall behind on their debt payments. It is no coincidence that the increase in bankruptcy filings has closely tracked the increase in levels of consumer debt.

There is no question that being knee deep in debt puts consumers at risk. Having a high debt load means that even a temporary financial setback, like unexpected car repairs, uncovered medical expenses or a job loss can spiral out of control and leave you unable to pay your bills.

There are things consumers can do, however, to climb out of their financial hole and get back on solid financial footing. Whether you do it yourself or seek the help of a debt counseling service will depend in large part on the amount of your debt and your confidence in financial matters.

Many consumers wrongly think that they must turn to a professional for help with their debt. What they don’t know is that there are steps consumers can take to negotiate directly with their creditors. Banks and credit card companies are often willing to negotiate a better deal to help ensure the consumer can pay off what he or she owes. After all, if the consumer is forced into bankruptcy court, it may be difficult or even impossible for the creditor to recover what is owed. Do not assume your creditors will not negotiate. They don’t advertise the fact, but they are often willing to significantly lower interest rates, waive late fees and over limit charges and even accept a lesser amount than the full amount owed.

Of course if you feel uncomfortable with this process, there are a great many companies willing to do the work for you. Credit counseling services and debt management firms operate in every major market, and they can be quite good at negotiating with creditors on your behalf.

The best credit counselors will not only help you manage and eliminate your current debt, however. The good operators in this market will offer extensive credit counseling services to teach their clients how to effectively manage their money in the future. You should definitely look for these services when seeking help with your debt. After all, it will do you no good at all to get out of debt on month, only to plunge right back in the next. Retiring your current debt is only part of the solution. The long term solution is to learn how to manage your money for the rest of your life.

By: Ryann Cairns | sosdebt.org

Fees & Terms: If a company charges a fee they must state the amount and the time the payment is to be made. As of October 27, 2010 the FTC enforced their law stating that debt relief companies are prohibited from collecting advance fees under FTC rule. They can not charge a fee before they settle or reduce a customers credit card debt balance or other unsecured debt amount. An agreement must be made between the consumer and the creditor as a result of the agreement negotiation by the debt settlement provider.

Results: The debt settlement provider must provide a general time for debt settlement completion.

Offer: The debt settlement company must explain the amount to be saved towards the debt settlement. Providers may only require a dedicated settlement account if five conditions are met:

the account is maintained at an insured financial institution

the consumer owns the funds (including any interest accrued)

the consumer can withdraw from the debt relief service at any time without penalty and receive all unearned provider fees and savings within seven business days

the provider does not own or control or have any affiliation with the company administering the account

the provider does not exchange any referral fees with the company administering the account.

Non-Payment: The debt negotiator must inform the consumer of any negative effects from non payment of their debts.

Tax consequences: un-payed debt amounts may be subject to taxation.

Consumers should understand that there is no guarantee that any creditor will accept partial payment of a legitimate debt. Debt Settlement or negotiation can take months to achieve through a professional debt settlement provider. It can be quicker with a provider who has existing relationships with creditors and collection agencies. Be certain to check the providers reputation, check their BBB rating and inquire about support and education services as well. If your provider fully discloses how settlement works, provides information about fees, credit impact, projected completion time and offers educational resources then you know you are making the best choice for your debt settlement company.

For more information about debt settlement company.

Getting into debt is easy and getting out of debt is hard. That much is clear to everyone. The debt that took only days or weeks to accumulate can take years or even decades to get rid of. We’ve all heard the statistic that a small credit card balance can take 30 years to pay off if only the minimum payment is made each month. When one hears statistics like this, one is often tempted to despair and wonder if it is even possible to pay off such a crushing credit card debt.

The answer is that yes, credit card debt, even in the most severe cases, can be paid off and the individual involved can go on to a life of financial independence and stability. It does take some knowledge, some patience and some hard work, however. Knowledge of how the credit card industry works, the patience to stick to a strict payment and spending schedule, and hard work, possibly in the form of a second job, will be rewarded with the ability to put your credit card debt behind you.

Let’s start with gathering some knowledge about how the credit card industry works. Banks that issue credit cards count on their cardholders not being able to pay their balance in full each month. From the low teaser rates to those cash advance checks, credit card companies want you to spend more than you earn. One of the secrets of the credit card industry is that they make a large proportion of their income from the finance charges, late payment fees and over limit charges assessed to their cardholders. You can use this knowledge to your advantage by contacting your credit card bank and asking for waiver of these charges and a lowering of your interest rates.

Credit card banks are often willing to work with their cardholders to enable them to pay off their debt. That is because if the cardholders are forced to declare bankruptcy, the banks know that it will be difficult if not impossible to recover the money they are owed. Use this fact to your advantage to negotiate friendlier repayment terms on your credit card debt.

Once you have negotiated a repayment schedule, however you will need the dedication and patience to stick to that schedule. If you miss a payment, or if you are late, the bank may call off the repayment schedule and demand their money. This can be very damaging to your credit rating as well as your finances. Be sure you the perseverance to follow through and hold up your end of the agreement.

You may want to consider taking on a second job as a way to retire your credit card debt faster. Many people, even if they are already very busy, find that a second income helps them eliminate their debt faster than any other strategy. Even if you think you don’t have the time, researching job opportunities near your home may provide you with the extra income you need to get out from under your crushing credit card debt.

By using a combination of knowledge, patience and hard work, you can eliminate virtually any credit card debt and get yourself back on a solid financial footing.

By: Ryann Cairns | sosdebt.org

When a person sits down and adds up their credit card debt and the totals bring them to tears its time to ask for help. If you can no longer make your minimum debt payments and your accounts are being threatened or have been turned over to a collection agency visit www.debtma.com.

Reduce Debt In Half

Reduce Debt With Debt Settlement - The professional credit counselors of  DEBTMA™ can negotiate with your creditors on your behalf towards a less than full payment on your debt that will settle the account for a zero balance. In many cases a consumer can settle their debt for half of what they actually owe. This debt relief option is known as debt settlement, also known as debt negotiation.

Debt Negotiation: What You Need To Know

DEBTMA™ counselors will be honest and upfront about the pros and cons associated with the debt settlement process. They will only suggest this option if debt consolidation is not applicable. There is no guarantee that a creditor will agree to a partial settlement.

Reduce Debt With Debt Settlement

The debt settlement process can take months to years depending on the creditors and debt amount. During the negotiation process over the limit fees, penalties and interest charges will accumulate towards the debt balance. Credit collection calls and letters can still occur.

Reduce Debt With Debt Settlement - Prior to the negotiation process the consumer is informed of a savings amount that should be put into a “settlement fund” that will later be used to pay the settlement once the agreement is made. Once paid the account is closed with a zero balance being marked as “paid by settlement” or similar statement. This information will be available on the credit report and can not be removed by any person as long as it is timely and accurate. Tampering with a credit report is illegal.

Debt Settlement Tax Implications

If you are successful in reducing your balance due and have paid only a portion of the full debt owed you will be responsible for reporting this forgiven amount on your federal income tax return (1099A or 1099C). This forgiven (unpaid portion) debt amount is considered as a DOI or Discharge of Indebtedness Income. This same taxation is involved in vehicle repossession and home foreclosure. This information is vital and should be discussed with your credit counselor prior to making your debt relief option decision towards a debt settlement.

For more information about reducing debt by half with debt settlement.

Reduce Debt With Debt Settlement

The good news is that many credit denials are the result of errors in the reports held by the three major credit-reporting agencies. In the United States, the big three are Experian, TransUnion and Equifax. The information these three influential companies hold about you can determine whether you get that mortgage or consumer loan, and if you do get it, what your interest rate will be. Unfortunately for consumers everywhere, the information reported by these agencies is not always 100% accurate. As a matter of fact, a recent survey by a consumer rights organization revealed that up to half of all credit reports contain at least one inaccuracy.

If you have been denied credit, you are entitled to a free copy of your credit report. By all means take advantage of this offer to obtain a copy of your credit report. The denial letter will usually contain instructions on how you can obtain a copy of the credit report that was used in the decision to deny you credit.

Once you have received a copy of your credit report, examine it carefully for errors. If you see anything that does not look right, report it immediately to the credit-reporting agency. The agency is required by law to verify any information questioned by the consumer. After you have reported any errors you find to the credit-reporting agency, be sure to follow up. Order an additional copy of your credit report in a month or two to make sure that the credit report has been corrected. If it has not, be sure to notify the reporting agency immediately.

It is also important to follow up with the company that denied you credit. Contact the bank or credit card company as soon as possible and let them know that you found an error on your credit report. Request that they reconsider your credit application in light of the new report. This is an important step in cleaning up your credit and making sure you will not be denied again.

By: Ryann Cairns | sosdebt.org

It is not hard to understand why so many people find themselves deeper and deeper in debt. Real wages have been falling for years, and prices have been on the rise. With this formula, it is surprising that more people are not having problems with debt. Fortunately, the debt management industry stands ready to help consumers who are overwhelmed by what they owe.

Many people who are in debt over their heads contemplate declaring bankruptcy, but this is often not a good option. A bankruptcy filing will stay on your record for many years, and in some cases the consumer is still required to pay back a substantial portion of what is owed. Debt management companies specialize in showing their clients how to negotiate with their creditors and pay back what is owed in a way that is affordable to them and acceptable to the creditors.

Debt management services have contacts in place which allow them to work effectively with creditors. The same bank or credit card company that said no to the consumer may well say yes to the debt management company. This is because the debt management service will have demonstrated a level of sophistication and success that allows the creditors to have confidence that they will get their money, while at the same time allowing the debtor to pay the money they owe on a schedule they can live with.

If you feel overwhelmed by your level of debt and if you are considering a bankruptcy filing, you owe it to yourself to at least sit down and talk to a debt counselor first. It may be the smartest move you ever make.

By: Ryann Cairns | sosdebt.org

As more and more people charge more and more items that they used to pay cash for, it is not surprising that levels of credit card debt have risen to record levels in recent years. Adding to the problem is the fact that interest rates on credit cards have not fallen in line with interest rates on savings and other types of loans. The interest rates on credit cards remain stubbornly high, and this means it can take years or even decades to pay off even a small balance.

For this reason, it is important to know how to use credit cards wisely. Likewise, it is important to know how to eliminate the high interest credit card debt you may already have.

Credit cards can be a great way to pay, providing the balance is paid in full at the end of the month. If the balance is paid in full each month, you are essentially getting an interest free loan – a great deal even in today’s low interest rate environment. If you carry a balance, however, you open yourself up to all kinds of interest charges, late payment fees and the like. These fees are on the rise so it pays to watch them closely.

If you do need to carry a balance, make sure it is on the card with the lowest interest rate. And if you are eligible for a lower interest rate loan, such as a personal loan from your bank, it may be a good idea to borrow the money you need to pay off the credit cards. You will save lots of money on interest and probably end up with lower monthly payments as well.

Of course eliminating that high interest credit card debt is only half the battle. The other half of the battle is using the remaining credit cards wisely and rarely if ever carrying a balance. This will take some perseverance and some discipline but it will be worth it in the long run.

By: Ryann Cairns | sosdebt.org

In a perfect world there would be no need for debt consolidation or debt management services. Everyone would make more than enough money for his or her needs, and the bills would always be paid on time. We know, however that the world is far from perfect, and there is a real need for debt management and credit counseling services. With wages rising at a slower rate than prices, it is no surprise that more and more people find themselves falling behind and in need of counseling.

How you use that credit counseling can make all the difference in the world. It is important, of course, to have your credit counseling or debt management service negotiate the best possible deal they can to make the repayment of your debt as easy and fast as possible. The faster you are able to eliminate your current debt, the faster you will be able to get that clean start you have been needing. Therefore, it is vital to choose a debt management service with years of experience and skill at negotiating the most favorable repayment terms for their clients.

After the current debt is retired, however, the real work begins. It is important that you learn to budget your money properly and use your credit wisely if you are to avoid being back in credit counseling in a year or two. Contrary to popular belief, it is not only low wage workers who find themselves in over their heads. Any credit counselor will tell you that they see workers at all salary levels, from the lowest to the highest.

Indeed, budgeting and using credit wisely is a learned behavior and a learned skill. The best credit counseling and debt management services will include budgeting classes and help with using credit and debt as part of their standard services. These types of classes are definitely something to look for when searching for a debt management company.

By: Ryann Cairns | sosdebt.org

The Bureau of Public Debt (BPD) currently estimates the total outstanding debt of the United States to be $6.9 trillion. $4 trillion of that can be attributed to debt held by the public, while the remaining $2.9 trillion is categorized as intra-governmental holdings.

What exactly constitutes ‘public debt’? The BPD answers that public debt is “all Federal debt held by individuals, corporations, state or local governments, foreign governments, and other entities outside of the United States Government.” Treasury bills, notes, bonds, as well as State and Local Government series, and foreign and domestic series, are all included in this category.

Intra-governmental holdings include “Government Account Series securities held by Government trust funds, revolving funds, and special funds; and Federal Financing Bank securities. A small amount of marketable securities are held by government accounts,” according to the BPD.

While the debt ditch has currently reached unprecedented depths, the Bureau can trace its beginning back to $75 million in 1791, the year the Bill of Rights was ratified and added to the Constitution. The history of the public debt offers interesting historical insight as to the development of the current high balance.

The debt figures increased steadily until their peak in 1804 at $86 million followed by a gradual yet significant decline over an eight-year period to $45 million in 1812. Also that year, under the leadership of former President James Madison, the United States declared war on Britain at the start of the War of 1812.

After a rapid four-year spike, the public debt plunged to the record low in 1835 of $33,733.05 following the presidencies of James Monroe and John Adams, and during Andrew Jackson’s second term. Since that time, figures have consistently increased at a steady rate, though between 1916 and 1919, the latter half of the First World War, the debt rose at an exponential rate, jumping from $3.6 billion to $5.7 billion to $14.5 billion to $27.4 billion respectively. Ironically, this spike in public debt is complimented by the start of the “Roaring 20′s” on the historical timeline.

During this roaring decade, the debt steadily declined from $25.9 billion in 1920 to a low of $16.2 billion in 1930, shortly following the Black Tuesday crash of 1929. From 1930 forward the debt increased gradually until the next national crisis.

The economy witnessed another major spike in public debt during the Second World War, specifically 1941 to 1944, ranging from $48 billion to $201 billion. Never again would the public debt dip below the triple-digit mark.

Beginning at $290.2 billion, the debt increased, on average, $32 billion per year from 1960 to 1980. During the subsequent twenty years, 1981 to 2000, the debt estimates rocketed to approximate increases of $237.2 billion per year.

Beginning with an increase of $432 billion from 1990 to 1991, the debt’s growth began to slow during former President Bush’s final three years in office. By the time Clinton took office in 1993, the increases were down to $281 billion per year. Under the Clinton administration the increases in the debt continued to become smaller. In fact, from 1999 to 2000 the debt only increased $18 billion, the lowest increment since $10 billion between 1968 and 1969.

By: Kate Ellis

Get Started Now! and receive a FREE consultation from a certified credit counselor and learn how much money our service can save you.

If the first step is recognizing that you need help getting your finances under control, the second step is finding a reliable and effective debt consolidation service. There are many such services around, but some are naturally better than others. The process of choosing the right debt consolidation service for your needs can be difficult, but it is vital to your financial future that you find a debt consolidation service that works for you.

It is often a good idea to get recommendations from family and friends when it comes to debt consolidation services. Falling behind on one’s bills is an all too common occurrence, and you probably know at least one person who has already faced this sort of situation. Do not be afraid to ask them how they got help, what worked for them and what did not. These types of personal recommendations can be very valuable when seeking an effective debt consolidation service.

If you do not know anyone personally who has used the services of a debt consolidation company, you may need to turn to the phone book and search that way. When looking through the many debt consolidation services, be sure to ask for references from former clients and check those references carefully. When speaking to former clients, be sure to ask if budget counseling and credit usage advice was part of the package. The best debt consolidation companies not only help their clients eliminate their current debt, but they also help make sure they stay debt free in the future.

Once you have narrowed your choice to a couple of likely debt consolidation companies, be sure to make an appointment with each one and evaluate them in person. A quality debt consolidation company should be willing to provide you with an initial consultation at no charge. Do not allow yourself to be pressured into signing with a particular company. High pressure tactics are a warning sign of a bad debt consolidation company. Once you have interviewed all the debt consolidation companies, you will be in a better position to choose the one that is best for you.

By: Ryann Cairns | sosdebt.org

Given the low savings rate, any temporary financial setback, such as the loss of a job, a minor home repair or major car problems, can quickly spiral out of control and cause a consumer to run up more debt than they can handle. Suddenly the credit card bill that had been paid in full every month for years is only paid at the minimum level. As you have probably heard, paying the minimum on your credit card is a sure way to accumulate more debt and fall further and further behind each month. It could take decades to pay off even a small credit card balance at the minimum monthly payment. You could literally be paying off that new transmission for 30 years.

Of course, it is usually possible to avoid dire situations like this be doing some prudent financial planning. The easiest and simplest financial document you can prepare is a monthly budget. You would be shocked at how many people have no clue where their money is going each month. Getting a handle on your monthly spending may reveal many places where you could cut back, and this step could potentially save you hundreds of dollars a month.

When you are trying to dig yourself out of debt, it is important to put any extra money you have toward your debt payments. The faster you pay off your debt, the better your situation will be. You may want to take on a part time job if your schedule allows. Any extra money you can bring in will help you dig yourself out of debt.

If you are unable to find enough extra money or take on a second job, you still may be able to get yourself out of debt. Do not be afraid to contact your credit card company or bank directly and negotiate with them. Credit card companies are usually very willing to work with their customers and help them pay off their balances. Remember that your creditors do not want you be forced into bankruptcy.

Credit card companies are often willing to provide you with a lower interest rate, lower monthly payments, or even to accept a lower percentage of what you owe. It does not hurt to ask your creditors for better rates.

If you are unable to negotiate with your creditors on your own, qualified credit counselors can often negotiate on your behalf. The best credit counselors are very skillful at negotiating with banks and credit card companies. They can often negotiate excellent repayment terms that will allow you to dig yourself out of debt faster than you thought. Do not be too proud to ask for help if you need it. The sooner you get help for your debt problems, the faster you will be debt free once again.

By: Ryann Cairns | sosdebt.org

Recent statistics posted by the Federal Reserve have indicated that the total U.S. consumer debt has reached 1.96 trillion dollars. Approximately $287 billion of which is in the form of outstanding student loans on the part of 22 million borrowers, according to the FSA, the Federal Student Aid division of the U.S. Department of Education.

While it’s true that many students utilize a variety of aid types, the FSA reports that in 2002, 74 percent of all aid distributed was in the form of loans. Other aid types included federal grants and work-study programs. Though even with the high concentration of student loans, January of 2002 saw a record low loan default rate of 5.4 percent, down from 5.9 percent in 2000 and 6.9 percent in 1998.

The two most common types of loans college students applied for are subsidized and unsubsidized federal Stafford Loans. The Stafford Loan subsidized is a need-based fund, with a cap of $23,000 over a five-year period and interest rates ranging between 2.86 percent to 4.06 percent, offered to any student attending school at least half time, typically nine credit hours per semester or six per quarter.

The Stafford Loan unsubsidized, on the other hand, is available to any student attending school at least half time, irrespective of income or credit history. This loan type has the same cap and interest rate range as the subsidized loan, the only difference being that the interest accumulates while the student is in school, whereas with the subsidized version the government pays the interest on the loan until the student graduates.

Though it’s clear that many families and college students look to debt-incurring methods to satisfy tuition bills, The National Center for Education Statistics conducted a study released October 1, 2003 suggesting that many families overestimate college costs.

In fact, according to the study, “91 percent of students and parents report plans for higher education, [yet] they are generally unable to estimate the cost of college tuition.”

“Clearly, there is a real need for public information on college costs and financing. If the desire is there, so are the resources-through federal aid or tax credits that can help students realize their education goals, regardless of their family circumstances,” commented Ron Paige, Secretary of Education.

With the launch of their new website, www.studentaid.ed.gov, the NCES is taking strides to increase the general knowledge of aid opportunities for college bound students and their families.

The NCES is not alone.

President Bush’s 2004 budget request signifies a growing concern for tuition feasibility with an expansion of overall student aid available for postsecondary education to an unprecedented $62 billion, which is an increase of $3.1 billion over the president’s 2003 request.

Amidst the repercussions of these budget reforms, working families can anticipate savings of $22.7 billion over five years in tax relief for higher-education related expenses.

Despite these fledgling developments on the political front, college students have yet to feel any sort of relief from the tuition burden.

The average college cost for a four-year program at a private institution for the 2002-2003 school year was $18,273, up 5.8 percent from the year before. The average college cost for a four-year program at a public university was $4,081 per year, an increase of 9.8 percent from the preceding year.

Since the shelf life of student loans typically exceeds the length of college enrollment, experts have developed useful guidelines to lighten the financial load that graduates acquire the moment they walk across the stage.

One such guideline is that monthly student loan repayments should not exceed 10 to 15 percent of a new grad’s starting monthly income. The standard repayment plan is a ten-year process that involves making equal monthly payments.

With extended repayment, the graduate has the option to repay the loan, through fixed installments, over a 30-year period. Graduates agree to increasing payments every two years, when they anticipate their salary to increase in roughly 2-year increments. Income-contingent repayment is a third option that allows payments to fluctuate proportionally with income, though this type of plan tends to increase the length of the repayment period.

It’s important to note that reverting back to the standard repayment plan remains an option, even after entering into extended, graduate, or income-contingent repayment plans.

While financial tools for college students struggling under the weight of the tuition bill are multiplying, the battle continues. Estimating the size of the cloud of debt that grads walk into can be difficult, though hopefully awareness will increase and daunting debt will decrease as degrees continue to be achieved.

By: Kate Ellis

Get Started Now! and receive a FREE consultation from a certified credit counselor and learn how much money our service can save you.

People get into debt for many reasons. Often an unexpected medical problem or job loss causes finances to spiral out of control. Many people graduate from school saddled with all kinds of student loans and unable to pay them off on their entry level wages. Many people use credit cards and loans excessively and find themselves in over their head.

Whatever the reason for the situation, a debt consolidation loan can be the answer. A debt consolidation loan is designed to help financially strapped consumers get back on track by paying off their high interest loans like credit cards at a more favorable interest rate and friendlier loan terms.

When used right, a debt consolidation loan can be the perfect vehicle for getting your finances back on track. It is important, however to understand the problems that led to the high debt levels in the first place. Only by taking stock and resolving not to repeat past mistakes can you be assured that you will not end up back in debt and owing even more than before.

For instance, if overspending on credit cards caused you to get in debt over your head, cut up all the credit cards before taking out the debt consolidation loan. If you must have a credit card for emergencies, try to make it a low interest credit card with a low credit limit. Keeping the credit limit low will reduce the temptation to overspend. Make sure the card is paid in full at the end of every billing cycle and keep the card only for true emergencies.

Making a realistic budget and sticking to it is another important step in taking back your financial life. The debt consolidation loan can help you pay off your credit cards and other high interest rate loans quickly, but it will be up to you to make sure you do not incur future debt. Designing a budget and sticking to it month after month is not exciting or glamorous, but it is a vital part of taking charge of your financial life.

By: Ryann Cairns | sosdebt.org

Keep in mind that the following steps are not one-size-fits-all-depending on the severity of your debt, your ability to make payments, curtail spending and your financial goals, you should identify which of the following potential rungs of the ladder best suits your needs.

The first recommendation given by the FTC is to develop a budget. The purpose of a budget is to identify realistic spending habits in terms of your income. By setting a system of financial guidelines in place, you can keep your spending on track so as not to spend money you don’t have and also perhaps save a portion for use towards paying off your debt. The central idea when forming a budget, according to the FTC, is “to make sure you can make ends meet on the basics: housing, food, health care, insurance, and education.”

Your budget should first state your total income. From there, list your “fixed” expenses-those costs that don’t fluctuate from month to month, including rent, car payments, and insurance payments. Next make a separate list of variable expenses: entertainment, clothing, and utilities. It is also a good idea to include a miscellaneous category for unexpected expenses, like a flat tire, hospital visit, or school field trip.

In addition to formulating a spending plan, it is also recommended by the FTC that you contact your creditors and inform them of your financial circumstances. Many times creditors will work with you to create modified payment plans to make payments more manageable. In some cases, this will save you from being reported to collection agencies.

If, however, you are handed over to debt collectors, the FTC reminds you of your rights under the Fair Debt Collection Practices Act that states, “A debt collector may not call you before 8 a.m., after 9 p.m., or at work if the collector knows that your employer doesn’t approve of the calls. Collectors may not harass you, make false statements, or use unfair practices when they try to collect a debt. Debt collectors must honor a written request from you to stop further contact.”

The second step in the FTC’s guide to dealing with debt is credit counseling. By entering into a payment program with a counseling agency some of your creditors may be more willing to set up modified repayment plans. Through this option, it is typical that you would deposit money on a monthly basis to the counseling service, which then pays your creditors according to a payment plan arranged by your counselor. It is also not unusual to be restricted from additional credit use while engaged in a counseling program.

While your credit report will show your involvement with a financial counseling agency, the FTC reminds that, “A debt repayment plan does not erase your negative credit history. Accurate information about your accounts can stay on your credit report for up to seven years.”

Besides forming a budget and entering into counseling, the FTC lists debt consolidation as another possible option. While it is a fairly common practice for those in debt more than $10,000.00, the FTC cautions, “You may be able to lower your cost of credit by consolidating your debt through a second mortgage or a home equity line of credit. Think carefully before taking this on. These loans require your home as collateral. If you can’t make the payments-or if the payments are late-you could lose your home.”

At the bottom of the list of suggested options is bankruptcy. Bankruptcy has a 10-year shelf life on your credit report, which has a negative impact on your ability to obtain credit or anything requiring strong credit-like a house, for instance. The FTC details two different types of personal bankruptcy: Chapter 7 and Chapter 13.

According to the FTC, “Chapter 7 (otherwise known as straight bankruptcy) involves liquidating all assets that are not exempt. Exempt property may include cars, work-related tools and basic household furnishings.” This property can then be sold by court officials or given over to creditors.

Chapter 13, on the other hand, allows you to retain your property while entering into a repayment plan agreed on by the court and lasting anywhere from three to five years. When entering into bankruptcy, a ratified repayment program under Chapter 13 is the only near-guarantee of retaining your property.

With a reported 1.5 million consumers filing for bankruptcy in 2001, the FTC reminds consumers that, “Although bankruptcy is one option to deal with financial problems, it’s generally considered the option of last resort. The reason: it has a long-term negative impact on your creditworthiness.”

By: Kate Ellis

First and foremost, when you obtain a MasterCard you are not obtaining the card through MasterCard International, the corporation backing the symbol on the lower corner of the card. Credit cards can only be obtained through financial institutions who have a membership affiliation with MasterCard. If you already have several MasterCards you may have realized that they are backed by different banks. The payments collected for charges placed on the MasterCard are sent to the affiliate banks. Furthermore, each individual financial institution sets their own annual percentage rates; which means that if you carry several different cards you will most likely be paying varying interest rates. There are both advantages and disadvantages to this situation. One advantage is that this makes it possible for consumers to shop around for better interest rates. A disadvantage is that because it is feasible to shop around for interest rates many consumers get caught in the trap of continually switching balances from card to another. This is a trap that proves to be quite financially dangerous. What usually finally occurs is that the consumer carries a multitude of cards, with balances on all of them.

In today’s complex and identity conscious society, credit cards are becoming much more complex than they were when they were first issued. Credit cards date back to the Twenties when they were first issued by companies in order for purchases to be made on credit at that business only, similar to modern department store charge cards. During the next twenty years this practice increased, until the first universal credit card was issued in 1950. Master Charge, now known as MasterCard, eventually was founded. By this time credit cards were beginning to be imprinted with a series of numbers in order to make the billing process easier. The first number in the series identifies the ‘company’ holding the credit card; whether it is American Express, Master Card, Visa, etc. Master Card’s number is 5. The next numbers represent account numbers, bank numbers and a check digit; although not all credit cards have the same quantity of digits.

Today consumers can choose between several different brands of credit cards, shop around for better APR’s and can even select a color, affiliation or logo that suits their lifestyle and personality. Additionally, it is possible to have a photograph of the cardholder placed directly on the credit card in order to facilitate identity verification.

Consumers shopping around for credit cards have several important matters to take into consideration. The first is the annual fee that is charged by some credit card issues. Today it is quite common for many banks to advertise a no annual fee slogan, so there is really no point in throwing away money on this fee when it can be completely avoided. Secondly, most credit cards come up with an annual percentage rate. This is the interest rate you are charged when you carry a balance on the card. Every month there is a balance on the card, the annual percentage rate results in a finance charge you are required to pay. A popular marketing tool employed by many credit card issuers is advertising little to no annual percentage rate for a limited amount of time in order to gain new customers. While these rates can at first appear to be quite attractive, what generally happens is that the rates are raised after the initial time limit expires. Sometimes these rates are quite competitive and other times they are exorbitant. Interest rates on credit cards quite commonly fluctuate over time, in sequence with the economy. Consumers who shop around may realize that there are other benefits to be had with credit cards besides the lowest annual percentage rate. Some banks offer perks such as cash back, discounts and even travel points.

Most credit card issuers reward customers who maintain low balances and pay on time with higher credit limits or exclusive cards. Many exclusive cards such as a gold card or platinum card require minimum income levels and possibly a minimum credit score. When you make an application for a credit card, the issuing bank will take a look at several factors when deciding whether to approve you for the card. First, they will look at how you paid your debt on other bills and if it has been on time. Additionally, the bank will take into consideration the amount of debt you already owe, how long you have been at your job and finally how much remaining credit you have on existing cards. While you might think it would be in your favor to carry zero or extremely low balances, this is actually not true. Banks prefer to see slightly higher balances and not just for increased interest payments. All of that available credit is considered to be a risk that can be accessed at any time. If you have a zero balance on a card and do not use the card anymore, experts recommend that you close the account.

By: Ryann Cairns | sosdebt.org

Far too many people have circumstances occur in their lives that forces their credit into the negative. Unfortunately, they continue to reap the consequences of those circumstances year after year. Once you have bad credit it can be extremely difficult to clean up your credit report and once again establish good credit. Experts claim the easiest way to get rid of bad credit is to take out a loan and make regular payments on it in order to establish good credit. We understand that theory is much easier said than done. Most banks and lenders aren’t willing to take a risk on your bad credit in order to loan you the money you need to establish good credit. It might seem either way you go, you lose.

That’s not the case with us. We’re here to help you, regardless of your credit situation. We have years of experience in assisting individuals in similar situations. In fact, we specialise in helping consumers who have bad credit through no fault of their own. Our goal is to help you recover from your bad credit situation as quickly as possible, with as much dignity as possible and move on to re-establishing your dreams.

We have provided a few easy to apply tips below to help you get started back on the road to establishing good credit.

You do not necessarily have to go out and obtain a loan in order to prove yourself worthy of good credit. Simply start paying your bills on time. Set up a tickler system if the problem is forgetting to drop the envelope in the mail. Sit down and budget out your funds so you know when the payment has to be made and then make sure you put the payment in the mail at least a week before it’s actually due. If there’s a holiday looming and you’re concerned the mail might be a little slow, mail it even sooner. Don’t let delayed mail be the cause of your plummeting credit score.

Don’t take advantage of a department store’s offer to save you 10% or 15% off a purchase simply by applying for a charge card. What normally happens in this kind of situation is that the store will run your credit record and when they do it will show up as an inquiry on your record. Too many of those make for a bad credit score. It’s far better to simply bypass the offer and pay in cash or with another card if you absolutely must.

Don’t be tempted to move money around and consolidate your credit cards. While the offers of lower interest rates can be very appealing you should know that these offers are almost always introductory offers only. After the introductory period has passed you’ll be hit with a new interest rate and that APR might even be higher than the one on the previous card. Not to mention that moving money around shows up on your credit report and does you no favors.

If you are carrying several credit cards with balances and are wondering which ones you should start paying down, in regards to a healthy credit score, it is best to begin paying on the cards with the higher balances. This is because one of the factors taken into account on your credit score is the balances on your existing cards. Credit score formulas do not look at the interest rates you are carrying, only at number of accounts, balances and frequency and timeliness of payments. If you are carrying balances that amount to 75% or more of your credit limit, it is time to start paying them down. You should try to maintain a 25% margin of credit available on all credit cards at all times.

Finally, don’t be tempted to start closing out accounts. Once they are activated they will be seen on your credit report anyway and closing them out will only hurt you.

Keep in mind that it’s never too late to start trying to improve your bad credit score. We are here to help you along the way and are always more than happy to answer any of your questions.

By: Ryann Cairns | sosdebt.org

As credit becomes more and more important, the credit repair industry has come along to help out consumers whose debt has gotten out of control and who are in need of repairing their credit report.

There are various methods for repairing credit, and there are both good and bad operators in all facets of the credit repair industry. When seeking credit repair services, it is important to deal only with a reputable operator. A good credit repair agency will offer credit counseling in addition to the credit repair services. Credit counseling is a vital part of the whole credit repair process, as this type of counseling helps consumers from falling back into debt and destroying their credit all over again.

A good place to start with credit repair is to get a copy of your credit report. There is a good chance that your credit report will contain at least one error. A recent survey by a consumer rights organization showed that up to half of all credit reports reviewed did contain an error. If you do find an error on your credit report, report it to the credit reporting agency immediately and ask that it be removed. Be sure to follow up and make sure that the error has been removed.

Another trick used by both credit repair agencies and consumers themselves is to challenge every negative item on the credit report. The credit reporting agency is then required by law to contact each of your creditors and ask for verification of the negative event. While most creditors will respond in a timely manner, some will not and the negative item will then be removed. This tactic is used by many credit repair firms to remove legitimate negative items from their clients’ credit reports.

It does take time to clean up a damaged credit report, but the time and effort you put forth will pay dividends the next time you need a loan. Your credit score is the single most important factor in determining what your interest rate will be when you take a loan, and it is important to keep your credit rating as clean as possible.

By: Ryann Cairns | sosdebt.org

When a consumer has made the decision to dedicate themselves to finding a solution for debt freedom they begin to see all of the options available and can easily become overwhelmed. Those who have severe debt in  a financial situation where they can no longer make payments, often find themselves struggling between the choice of bankruptcy vs debt settlement. Both choices have their pros and cons. To help consumers see the true difference between these two possible debt relief solutions here is a simple break down of the good, the bad and the ugly of bankruptcy vs debt settlement.

Bankruptcy

Bankruptcy has the same reputation as taxes, rising fuel prices or other words that send a shiver up your spine. Is it really all that bad? It depends on how you look at it. Bankruptcy offers a consumer the opportunity for a clean slate. Debts can be discharged entirely without taking a consumers home, vehicle or garnishing wages. The two most common chapters filed for personal bankruptcy are Chapter 7 and Chapter 13. Chapter 7 liquidates all non exempt property to pay off creditors. If a consumer has no way to pay their debts this is often the only option available to end the debt entirely. Chapter 13 provide consumers with the opportunity to repay some or all debts over a specified period of time. If a debtor has income, but cannot keep up with payments he or she may find this option beneficial. Bankruptcy can be useful in discharging debts, however it does remain on a consumers credit report for 10 years. It can take five years before a person may even be considered for a mortgage after bankruptcy. It can prevent some companies from hiring a person and has a certain negative impact on social views. There is extensive paperwork, filing and a mandatory credit counseling course required which the consumer must pay for out of pocket. Many DIY bankruptcies have a low success rate due to mistakes with paperwork which causes delays and further trouble. Hiring a bankruptcy attorney often has a 100% chance for success. Once bankruptcy is filed collection calls and legal action stop.

Debt Settlement (Debt Negotiation)

Debt Settlement is a process in which a consumer hires a debt settlement provider to negotiate with creditors on their behalf in order to agree upon having part of the consumers debt forgiven. A less than full amount is agreed to be accepted to settle the debt for a zero balance. This program is used for those who are looking to avoid bankruptcy. There is no guarantee that a creditor will agree to settle an account.

Bankruptcy Vs Debt Settlement

The process can take months to years depending on several factors. Additional fees can continue to be applied to the debt balance increasing the overall amount due. Legal action and collections will not cease until an agreement is met. If a settlement is agreed upon a consumer has to pay the amount agreed upon. They are given a savings estimate to accumulate (save towards) in order to pay this amount before the settlement process beings. If a person does not have the means to save towards this payment they may have no other choice than to use bankruptcy. Bankruptcy and Debt Settlement have helped people to end their debt successfully. It is best to have your specific financial situation analyzed with a certified credit counselor to help discuss which option is right for the situation at hand.

For more information about

Bankruptcy VS Debt Settlement

The debt relief market is full of companies heavily advertising to debtors that they can get them out  of debt quickly. Financial freedom can be yours with the click of a mouse. There is Debt Consolidation, Bankruptcy and Debt Settlement. For those interested in Debt Settlement as a debt relief solution, here are some Debt Settlement pros and cons about the Debt Settlement process to help you understand what Debt Settlement is and how it can be beneficial to those looking for a solution to their debt.

What Is Debt Settlement

Debt Settlement is a process in which the debt amount is negotiated with the creditor in order to agree on a less than full balance amount that will satisfy the debt for a zero balance. This is a good alternative to avoid bankruptcy, which can lead to one losing their home, vehicle or other possessions to satisfy the a debt.

Debt Settlement Pros And Cons

Pros:

Bring the debt balance to zero without having to pay the full balance

Eliminate “Delinquent” account status

Stop collection calls and legal action

Cons:

Appears as “Settled Debt” on credit report instead of “Paid Full”

A debtor may be required to get a written statement from the collector that he or she no longer owe anything on the debt

Debt Settlement Company Fees (up-front & monthly fees)

Attorney Fees

Debt Settlement Process

To begin the debt settlement process a debtor will speak with a credit counselor to assess their finances. This process is necessary for debt consolidation and bankruptcy as well. Income, expenses and debts are provided to the counselor so he or she can have a clear understanding of how the debt can be resolved most effectively. Most often a budget is created, if debts are able to be consolidated into a low monthly payment, this will be advised. For those who can not afford a monthly payment, debt settlement may be suggested.

Debt Settlement Pros And Cons – The settlement company will require a debtor to sign a limited power of attorney, so they can negotiate on the clients  behalf. The debt negotiator will then negotiate with the creditor to establish an reduced payoff amount. The debtor will be responsible for saving a “settlement fund” to pay of this new lower debt amount. Many debt management companies require up-front fees, as well as a monthly service fee. This process can also require attorney fees. This is what sets the Debt Management & Debt Consolidation company DEBTMA™ apart from their competitors. DEBTMA™ requires no up front fees. They are in compliance with the F.T.A. which state that upfront fees are prohibited. They know that every dollar saved can be applied to another debt for more rapid debt settlement freedom. DEBTMA™ also helps clients to avoid attorney fees. They provide a one year  prepaid legal plan (they provide an attorney at no expense for the 1^st year). Debt Settlement Pros And Cons – The goal is to educate clients, provide professional financial services and create customized debt management plans to aid consumers in freeing themselves from high interest debt.

For more information about

Debt Settlement Pros & Cons

Improving your credit can be a difficult process but it is important to take the time and expend the energy to improve your credit score as much as possible. Your credit report and your credit score go a long way toward determining the interest rate you can get on such things as car loans, personal loans and home mortgage loans. Since even a small difference in your interest rate can save you hundreds of dollars over the life of the loan, achieving the best possible interest rate is vital to your long term financial well being.

Improve Credit – In the United States, there are three major credit-reporting agencies, TransUnion, Equifax and Experian. Almost all credit report requests will flow to one of these three agencies. It is not at all unusual for the credit report and credit score of a single consumer to differ significantly from agency to agency. That is because each agency will gather and report its own information about your payment history.

The first step towards improving your credit rating and credit score is to obtain a copy of your credit report from all three of the major credit-reporting agencies. You can do that by contacting the companies directly, either by phone or on their web sites. A new law passed in the United States entitles every consumer to one free copy of their credit report each calendar year. The major focus of this law was the fight against the growing problem of identity theft, but it can help you to improve your credit as well. This law is being rolled out across the country by region, so contact the credit-reporting agencies to see when you can get this valuable freebie. Of course you are also entitled to a free copy of your credit report if you have recently been denied credit for any reason.

Improve Credit

Even if you have to pay a small fee to obtain a copy of your credit report, the knowledge you gain, and the help it will be in improving your credit, will make it worth your while. Whether you pay for your credit report or obtain it for free, it is always best to deal with the credit-reporting agency directly. Beware of the web sites and emails offering you access to your credit report and credit score. You can obtain the same information at a much lower price by dealing directly with the agencies.

Once you have copies of your three credit-reports in hand, it is time to examine them carefully for errors. It has been estimated that as many as half of all credit reports contain at least one error, so the chances that you will uncover such an issue on your own report are rather high. Any error on your credit report should be taken seriously and reported to the credit-reporting agency immediately. An error in your credit report can cost you valuable points on your credit score and cause the interest rates on your loans to be higher than necessary.

After you have reported any errors you find, be sure to follow up in a month or two to make sure the errors have been corrected. Be sure to pull another copy of your credit report and make sure the errors have been removed. Hopefully you will see an improvement in your overall credit score as well.

Improve Credit – When seeking ways to improve your credit report and credit score, it helps to know a little bit about how the credit score is calculated. Credit-reporting agencies put a lot of weight on the age of your revolving credit accounts, like credit cards. If you have a credit card that you have had for many years, even if you no longer use it, you may want to think twice about closing it. Your long history with the issuing bank is a mark in your favor, and closing that account could actually cause a drop in your score.

Likewise, lenders look at the amount of your outstanding debt as a percentage of your total credit lines. A lender will want to see a low percentage of outstanding debt. For instance, if your total credit lines across all your credit cards is $20,000 but your total debt is only $1,000, that 5% outstanding debt ratio will be a big factor in your favor and may help raise your credit score. For this reason, it may be helpful to accept a credit line increase if it is offered to you. On the other hand, requesting a credit line increase may not help you, and could raise a red flag with your bank. Of course, if you are the type to immediately go out and max out that credit card, then accepting a credit line increase may not be a wise move.

Improve Credit – Vigilance is probably the most important factor in improving your credit and helping to keep your good credit reputation. Look at your credit report and credit score often, not just when you’ve been denied credit. By knowing your baseline score, and following the above steps to improve it, you can take a proactive role in your finances and help ensure the best interest rates on your loans.

By: Ryann Cairns | sosdebt.org – bbb ratings how to improve score

Improve Credit

One of the things we work hard to build up most of our adult life is our credit score or “good credit” as we call it. How to Raise your FICO Score - Like a strong resume or a good reputation, it is something that takes some care to build and maintain. And just like with those other areas of life, we don’t like it if something happens to our credit rating that hurts our future credit reputation. Our viability in the economic world depends on that rating staying healthy.

Our credit ratings is maintained by a centralized reporting and ranking mechanism that is often referred to as your credit report. There is a systematic scoring system called the FICO score that determines on a week-to-week basis what our credit rating will be. Now we know the basics of keeping strong credit relationships, paying bills on time to keep our credit rating in tiptop shape. But a not very well known truth is you can see your FICO score and credit report and you can take more aggressive action to affect its contents for the better. This isn’t “cheating your FICO score”, just taking responsibility for something that makes a big difference in your financial health, your credit rating.

How to Raise your FICO Score

Get a Good Look

The first is to order a copy of your credit report and review what is on it. It is very likely when you get a copy, you will find errors and entries you do not like. But it’s a starting point and we can take action once you know where your FICO score stands to begin to improve it. It is not expensive to get a copy moving. You can order it from one of the major credit reporting agencies. Here is a short list to get you started.

· Equifax, www equifax.com

· Experian, www.experian.com

· TransUnion, www.transunion.com

In this article, we will get you started with some inside information on how to raise your FICO score and change what you see there and start bringing up that FICO score. This is the stuff companies will charge you lots of money to do for you but in reality, you can do it yourself.

The Eight Commandments

Besides the general rules of healthy use of credit we discussed earlier, there are some very specific guidelines that most of those high priced credit agencies will use to guide you to improve how the FICO Score ranks you. These guidelines pertain directly to how the FICO formula work and are based on the insider thinking of creditors as to what makes a good credit risk. So instead of ten commandments, we have eight and they are….

· Reduce credit inquires. These are the number of times someone looks at your credit report that you ordered. So if you apply for a lot of credit or order the report a lot yourself, that raises the amount of inquires. Too many inquires give the impression you are hungry for credit and maybe in credit trouble.

· Pay credit bills early, not just on time.

· Pay off revolving credit every month.

· Never drop an account, keep them open rather than opening new ones. Once you clear them off, those creditors will have a strong motivation to offer you good credit deals.

· Avoid paying off one creditor with another just because the rate is better

· When making changes to your credit report, make sure your oldest accounts stay in place.

· Keep your major credit accounts open to two if possible.

· Always keep 50% or more of your credit limits available.

You may have to work toward these goals but knowing how your FICO score views these variables helps you make a long-range attack plan.

How to Raise your FICO Score - It Pays to Complain

Another little known fact about credit reports is you can dispute entries on them and get entries deleted. If you find entries that are just plain wrong, you definitely should make a plan to go on the offensive to get them off of there. But you can work toward having perfectly valid entries removed if they are negatively affecting your FICO score.

You can dispute the entries to the credit reporting agency, the consumer affairs department of that agency and to the creditor themselves. Often times just the act of filing the dispute will get the problem entry deleted.

For all of your disputes, contact the agency by printed letter. You want all the documentation you can get. You can even have the letter certified so you can keep documentation and a signature that it was delivered and received for future reference.

By: Ryann Cairns | sosdebt.org

How to Raise your FICO Score

Our hard hit economy has led to  expansive job loss throughout the nation. This loss of income has led many people to turn to their credit cards in order to pay their mortgages, which has created greater debt accumulation. They are robbing Peter to pay Paul and this spiral of debt has spun out of control for many people. What if there was someone available to help you get out of debt as quickly as possible?  This help is really available through debt management and consolidation programs from DEBTMA™ .

Debt Settlement Fort Lauderdale

DEBTMA™ offers their clients the choice of four different payment plan options led by the Debtma Corp. president Doreen Rubin. Ms. Rubin does not operate like other debt consolidation companies, as she doesn’t want to take money from you, she wants to help keep money in your pocket while you work towards debt freedom.

Avoid Upfront Debt Settlement Fees

Debt Settlement Fort Lauderdale – Doreen Rubin helps consumers to avoid upfront debt settlement fees. She knows that customers are getting savvy and realizing how unnecessary upfront fees for debt settlement companies are. As an F.T.C. compliant company, DEBTMA™ follows the new F.T.C. laws of 2011 prohibiting upfront fees, unlike other debt management companies who are using attorneys on retainer as a loophole of this F.T.C. law. Doreen Rubin and her certified credit counseling staff work with clients to provide a reasonable rate with no upfront fees. The goal is to help clients to save money for debt settlement.  DEBTMA™ receives no money until the debt is settled with the creditor.

Fort Lauderdale Debt Negotiation

Debt Settlement/Negotiation enables a person to bring their debt balance to zero. DEBTMA™ work for their clients through negotiation to reduce the debt balance, to pay a settlement to bring the balance to zero without having to pay the full balance. It is a bankruptcy alternative, with no monthly service fees and no retainer fees for attorney assistance. Debt Settlement Fort Lauderdale – DEBTMA™ enables their clients to avoid attorney fees for debt settlement by providing their clients with an attorney at no additional expense. They provide a prepaid legal plan for each client for an entire year. To speak with a certified DEBTMA™ credit counselor to discuss whether or not debt settlement is right for your financial situation visit or http://debtma.com/ call (866)-597-7748.

user ratings for debt settlement companies fort lauderdale

For more information about

debt settlement Fort Lauderdale

When a person reaches a point where he or she has stopped paying their unsecured debt (credit cards, etc.) because they can no longer afford their debt obligations, Debt Settlement Broward County may be a debt relief option to consider. Debt Settlement is not right for everyone. It is a program designed to help those with serious debt problems who are unable to maintain payment obligations and are considering bankruptcy.

Debt Settlement Broward County

Debt Settlement is a process in which a person uses a Debt Settlement provider who will negotiate a debt balance with the creditors in an effort to agree on a less than full repayment amount. The debtor is responsible for setting aside funds into a settlement fund. These funds will then be used to pay off the agreed upon “settlement” amount for a zero balance without paying the original full debt.

Debt Settlement Broward County: Pros & Cons

Debt Settlement (Broward County) has its pros and cons such as any other debt relief option. It can benefit a person with a dramatically reduced total debt, requires savings based on what the debtor can afford, offers debtors a bankruptcy alternative and can assist a debtor in paying off their debt in 3 to 5 years on average. The downside of Debt Settlement is that it does negatively impact a persons credit report. Accounts will read “Settlement Paid” instead of “Paid in full”. Creditors do not have to agree to a settlement offer. Late fees and interest is still applied to the debt during the negotiation process, creating a larger debt amount. The collection process will continue until a settlement is agreed upon.

Choosing Debt Settlement Broward County

The best way to know whether or not Debt Settlement is the right choice is to contact a professional credit counselor to review the financial situation for a knowledgeable decision. A certified credit counselor can help educate an individual on debt relief options, help the client to create and follow a budget based on income, expenses and debt. Clients can then save what they are able towards the debt relief plan that suits their individual needs. For a free no-obligation consultation with a certified credit counselor visit http://debtma.com/ or call toll free (866)-597-7748.

For more information about

Debt Settlement Broward County

Thank you.

Your email has been successfully submitted to DEBTMA™ Debt Management and Consolidation. A DEBTMA™ representative will contact you within the next 24 hours.

>> Get Started Now! and receive a FREE consultation from a certified credit counselor and learn how much money our service can save you.