http://www.destroydebt.com/ Destroy Debt is an online community which provides regular articles showing practical ways to eliminate debt. www.destroydebt.com Sun, 05 Sep 2010 05:53:20 GMT webmaster@destroydebt.com webmaster@destroydebt.com http://www.destroydebt.com/articles/debt-settlement-produces-more-welfare-than-credit-counseling.html http://www.destroydebt.com/articles/debt-settlement-produces-more-welfare-than-credit-counseling.html Tue, 25 May 2010 06:00:00 GMT “Debt Settlement Produces More Welfare than Credit Counseling” – Franklin Debt Relief to FTCA new report submitted by Franklin Debt Relief’s CEO, Robert Zangrilli, to the FTC shows that debt settlement benefits consumers more than credit counseling, and in fact, consumers who use credit counseling lose more money in non-refundable payments than they save based on industry statistics.
The report points out that since non-profit credit counseling is subsidized by credit card companies it is naïve to assume that these agencies serve the interests of consumers, and it goes on to support this thesis with statistics such as the fact that 35% of consumers who contact consumer credit counselors are enrolled in debt management plans (DMPs) despite the fact that more than 75% of these consumers will never complete their programs. According to Zangrilli, the average consumer who uses a DMP loses approximately $5,000 in non-refundable payments to credit card companies when they should have been advised to seek out the services of a debt settlement company or bankruptcy attorney immediately. He goes on to suggest that this should be expected since these agencies are funded by banks and it makes sense that they would serve their interests primarily, even if it is at the expense of consumers.

In the midst of the worst recession since the Great Depression and with the FTC contemplating rule-making that will potentially eliminate the debt settlement industry as we know it, it is dangerous to push consumers into the arms of credit counselors. Although it is clear that the debt settlement industry needs to be cleaned up, even in its current unregulated form it is a better alternative to credit counseling for most consumers.

To read the report check out: 

http://www.ftc.gov/os/comments/tsrdebtrelief/100426franklindebtrelief.pdf To see the press release for this report: 

http://www.prweb.com/releases/2010/05/prweb4035034.htm]]> http://www.destroydebt.com/articles/reducing-debt-fast-bailout.html http://www.destroydebt.com/articles/reducing-debt-fast-bailout.html Mon, 05 Apr 2010 06:00:00 GMT Millions of consumers are struggling each day to pay off high interest debt, with many of them falling farther and farther behind each month.  While it would be ideal if there was some sort of "magic" solution to this problem, the truth of the matter is this: each person is responsible for figuring out the best process for eliminating their high interest debt.  There is no bailout in sight for consumers, therefore you must closely examine the options that are available to pay off your debt balances and move on with your life.  One of the popular debt relief options available today that is often confused with some sort of government "bailout" is debt settlement.
Debt settlement, sometimes referred to as debt negotiation is a legal process which may cut your debt in half.  Unlike debt consolidation or debt management plans, this process does not involve paying your creditors each month, instead you set aside a predetermined amount of cash each month to be applied toward future settlements. When your accounts are delinquent, creditors are often willing to negotiate or settle for a reduced payoff amount, which can reduce the amount of money owed by 50-70 percent.  This process, while often successful, is not one that comes without risks.  There are no guarantees that the creditor will be willing to negotiate and there are several factors that determine if they will consider a reduced payoff amount and if so, how much you will save.  In the meantime, your balances will continue to rise due to late fees and other penalties applied to the account.   

Anyone considering debt settlement should also know that this process should be considered as a last resort before filing for bankruptcy.  Despite the fact that debt settlement can reduce your debt, there are situations where the consumer may end up owing more money or worse face legal ramifications for delinquent accounts.  With this in mind, you may be wondering why anyone would assume these risks with no guarantee of success.  The answer is simple; this process is geared toward consumers who have already fallen behind on monthly payments or are about to as a result of a financial hardship.  It is not recommended for consumers who have the ability to repay their debt, even if only through minimum payments. You must demonstrate a true financial hardship and the ability to pay something toward the account to be considered for debt settlement.  Your credit will take a hit in the short term, however if you are successful in settling your high interest accounts, you have the opportunity to move forward without the burden of thousands of dollars of debt.   

Remember that debt settlement companies are in business to make money.  Unfortunately the industry has several companies that have not been forthcoming or honest in how they handle consumer accounts, therefore you must do plenty of research in order to determine if the company you are considering is able to help you versus cost you more money in the long run.  There is no easy solution or "bailout" for consumers in debt, however you can put forth the effort to make informed decisions as to how you will eliminate your debt.]]> http://www.destroydebt.com/articles/non-profit-debt-relief-organizations.html http://www.destroydebt.com/articles/non-profit-debt-relief-organizations.html Mon, 05 Apr 2010 06:00:00 GMT Non-profit debt relief organizations offer the same services as profit-based debt relief organizations. The difference is that their operations are run on charity based donations as well as government grants accessed through their non-profit status. To be certain that a debt relief organization is in fact a non-profit you can check the ‘About’ section of the company’s website. If the company is a non-profit it should clearly state as such on this page and it will refer to achieving IRS 501 (c) (3) non-profit charitable organization status.
But why do these things matter? Below are some of the reasons you may prefer to get help from a non-profit organization.

Security of Being a Recognized Non-Profit

There is a certain security in seeking assistance from a company that has declared its non-profit status. Especially in the debt relief industry, which deals with people who are bogged down by debt, a non-profit company signals that help will not cost exorbitant amounts and it will be genuine. To achieve non-profit status a company must conform to certain stipulations and this in itself provides a layer of safety in an industry that is fraught with scams.

No Outrageous Promises

Non-profit debt relief organizations do not offer outrageous promises. It is not uncommon to come across companies that claim to be able to improve credit scores instantly or to cut debt in half in a short space of time. A non-profit debt relief organization will not make irresponsible claims because they are aware that their continued status depends on their customer feedback.

Free Credit Counseling Services

Credit counseling is offered by all debt relief organizations, but there is usually a fee attached. While non-profit debt relief organizations may also charge a fee, this fee should be considerably less than the cost of the same service at a profit based company. The bonus of the service provided by the non-profit debt relief organization is that they usually make referrals to other local social service organizations that can offer support in other areas. This can make a huge difference to a family trying to deal with several problems at once and can increase the likelihood of success of the financial management plan because of the attention given to other areas of family life.

Debt Consolidation Loans on Offer

The debt consolidation process entails switching a series of unsecured high interest loans for a single low-interest secured loan. To make this possible, in most cases you need to offer considerable collateral, which comes down to risking your home. This reality does not change under a non-profit debt relief provider, so you need to carefully weigh the risks and rewards involved in a debt consolidation loan.

Non-profit debt relief organizations can offer a sense of security that is invaluable at a time when it can feel like everything is up for grabs. Even though you may feel safe because of the non-profit element of the organization you should ensure you know what you are getting into before signing on the dotted line.]]> http://www.destroydebt.com/articles/government-help-for-credit-card-debt-problems.html http://www.destroydebt.com/articles/government-help-for-credit-card-debt-problems.html Tue, 16 Mar 2010 06:00:00 GMT The offers promising specialized government sponsored programs to get out of debt seem to multiply with every click of your mouse.  These offers promise immediate help from the burdens of mounting debt from credit cards.  Although the offers may seem like a valid solution to issues of debt, they are not valid options. These offers are nothing more or different than other credit card debt relief programs, other than the fact that they are being marketed with the word government tacked onto the title. 

The truth is that the government would not benefit from assisting with the elimination of credit card debt. The taxpayers would probably   Other than assisting with bankruptcy proceedings the government does not have the legal or financial means to provide credit card or other debt relief programs for individuals.  The implementation of a program specifically designed and government sponsored would require a great deal of legal proceeding and approval.  Social assistance programs require a great deal of preparation and typically offer much national controversy. The proposal for a government sponsored credit card debt relief program is not in the works at this time.    


Government help with debt does exist. The government offers assistance with learning new ways to manage debt through IRS credit counseling. Counseling and financial programs are sponsored through the government designed to provide information and tips to consumers for assistance managing their finances. There are many offers for programs related to financial planning, debt management and credit card management that are government sponsored and supported.  These are not debt relief programs but rather informational services to promote responsible spending habits and resources to assist with debt.   


The government also offers bankruptcy assistance for those that have no other options. Bankruptcy is a legal proceeding designed to relieve individuals for the burdens of debt. Bankruptcy does have long term effects and consequences however a viable option for debt relief is.  The option to file bankruptcy is an individual choice that offers government assistance with the process. It is designed to eliminate debt to allow consumers to be freed of the financial burdens of debt, which includes credit card debt.   


The Credit Card Act that took effect in February 2010 is also an example of government assistance for consumers that have credit card debt. This regulation was designed to regulate excessive fees and provide credit card users extra protection.  This is an initiative that stems from governmental regulation and the recognition of the unfair practices happening in the credit card industry.  This is not a credit card debt reduction program but rather a protection for consumers that can help mange debt in the long run.   


Those looking for government help for credit card debt may be disappointed to find that there are no ‘get out of debt quick programs’ designed by or sponsored by the government that will eliminate consumer credit card debt.]]> http://www.destroydebt.com/articles/obama-debt-settlement-program-.html http://www.destroydebt.com/articles/obama-debt-settlement-program-.html Tue, 16 Mar 2010 06:00:00 GMT The struggle with American debt continues. Bankruptcy continues to become a more frequently used alternative than ever before.  For some, bankruptcy is an easier option than struggling through the mounting bills that cannot be paid.  Reports show that the average American has more than one credit card regardless of their ability to pay them. 
The reality is that increase in declarations of bankruptcy effects financial lending institutions as well as individuals. Bankruptcy puts everyone involved in a difficult economic situation.  The more people that file bankruptcy, the more financial loss for lenders.  This is a difficult and dangerous cycle that can potentially cause further damage to the economy.   


The Obama administration in response to the circumstances surrounding ever-increasing American debt developed a stimulus package to assist lenders in recovering losses that resulted from bankruptcy.  This stimulus package, although provided directly to the lenders, indirectly benefits the borrowers.  The assistance provided to financial institutions such as banks allowed them to come up with creative settlement options for consumers struggling with debt.   


There is a misconception that the government will provide money to individuals with the ultimate goal of eliminating personal debt.  The government has developed and directed programs that assist individuals however there is no plan for a government debt settlement program that will eliminate or alleviate debt. The government has provided incentives that indirectly assist consumers who have debt with options other than bankruptcy.   


Declaring bankruptcy has a long term impact on financial institutions and consumers. Avoiding bankruptcy when possible is the best option. When a person files bankruptcy their credit suffers.  It can take years to recover from the sting of bankruptcy.  Lending institutions take a loss when the consumer is unable to pay the debts.  It is in the best interest of all parties to work out a reasonable settlement arrangement.  The stimulus assistance provided through the Obama debt settlement programs allowed banks to recover some of their losses and provide more attractive options for settlement arrangements to borrowers.     


The legislation that made the debt settlement program possible was designed and implemented during the early days of the Obama administration. The legislation was sparked by the government but should not be considered a government debt settlement program.  The specific goal of the legislation was to prevent bankruptcy by providing banks with incentives to arrange manageable debt settlements with borrowers who are struggling with debt.  


This stimulus program provides consumers with options other than bankruptcy.  This package was designed to indirectly stimulate the economy and create a positive impact on the lender borrower relationship.   There are many different types of debt relief programs ready and able to assist with debt settlement.  Given that new legislations proves a more comfortable environment in which to negotiate debt settlement, now is a good time to shop around for the program that is best for you. Reducing the number of bankruptcy cases is a benefit for everyone. ]]> http://www.destroydebt.com/articles/access-receivables-management-.html http://www.destroydebt.com/articles/access-receivables-management-.html Wed, 03 Mar 2010 06:00:00 GMT Access Receivables Management is a debt collection agency which has developed innovative methods to do their work, is armed with experience and all set to take on the next challenge. They have experience in recovering dues for the commercial, dental, medical, insurance and education sector and have bagged quite a few awards for their excellent services.
 This awards list includes: 

· Baltimore Smart CEO Future 50

· Top 50 Women Owned Businesses in Maryland

· Top Small Business in Maryland

· Top Women Owned Business in the United States

· Top Women Owned Business in Maryland 

They are a well recognized collection house and are members of ACA International and are also certified International Association Commercial Collectors. 


Access Receivables Management has a wide range of services. They design, implement and manage first party receivables management programs. This allows corporate and consumer oriented clients to take this load off their shoulders and outsource to them. This provides a practical alternative for clients who otherwise have to get the job done by expending their own resources. Their solutions are perfectly customized to the customer’s requirement. They also offer customized services for clients who wish to sell their debts.

 
Third party debt collection is what they are known and respected for and they provide excellent services in that area.  They have also developed totalACCESS which is a web portal through which clients can stay in the know about how their cases are being handled. This makes for a very transparent process.  


     A measure of how well this company does their job lies in the fact that they have won praise from both debtors and clients alike. A look at their debtor’s testimonials will reveal the effective tried and tested methods that make their ‘collections don’t need to be stressful’ policy, a reality. They fully evaluate and understand the debtor’s situation and then carry out their task with compassion.  This is something al their clients will agree upon. Their ACCESS formula for SUCCESS ensures that there is a well defined code of conduct that the company sticks to. As a result of this, it has maintained a constant level of excellence.  

Access Receivables Management can be contacted at the following address:

Access Receivables Management 
200 East Joppa Road 
Suite 310 
Towson, MD 21286 

They can be contacted over the phone on 1-877-276-8600 which is toll free or you can fax them on 1-410-583-8602.]]> http://www.destroydebt.com/articles/cavalry-investments-llc.html http://www.destroydebt.com/articles/cavalry-investments-llc.html Wed, 03 Mar 2010 06:00:00 GMT Cavalry Investments, LLC is a firm that buys distressed consumer receivable portfolios. One of the trademarks of their business involves productive collection methodologies executed by staff who are well trained in the process. This combination of services allows them to provide high quality and low cost solutions to their customers.
Cavalry Investments is backed by three affiliates - Cavalry Portfolio Services, Cavalry SPV I and Cavalry SPV II – each of which play a different role in the firm. Cavalry Portfolio Services handles customer support providing customers with more than adequate assistance. Cavalry SPV I buys distressed consumer receivables. Their major  role in Cavalry Investments involves reviewing portfolios, getting bids done and passing them on to Portfolio Services which picks it up from there and works at taking it further. Cavalry SPV II does the purchasing of distressed consumer receivable portfolios.  Their role is to meet with the biggest creditors in the nation and make the buying of portfolios a reality. Thus far, they have handled portfolios from a whole range of sectors starting from telecommunications to finance. They pass them on to Cavalry Portfolio Services who take over making the journey forward a pleasure for the customer.

The types of receivables that Cavalry Investments buys is wide ranged.  They include among others, installment loans, commercial receivables, medical receivables, credit card receivables, telecom, utilities, auto charge-off's and deficiencies and unsecured revolving loans. Resolution Specialists at Cavalry Investments ensure that individual attention is given to each customer.

With a motto that proclaims –  ‘Cavalry to the rescue’, their mission is to come to the rescue of people who land in financial trouble.  The policy and functioning of Cavalry Investments is entirely geared toward helping people get out of their financial troubles affordably and get back on their feet. They ensure that you get personal attention and that your particular predicament is carefully  looked into so that they can come up with a solution that works for you With Cavalry Investments, you can trust that you are in safe hands.  


For all queries, write in to the Cavalry Investment’s New York office. The address is:

Cavalry Investment, LLC 
Hawthorne, NY 
P.O. Box 1030 
Hawthorne, NY 10532 

You can also call 866-434-2996 to reach them at their New York office.     ]]> http://www.destroydebt.com/articles/osi-portfolio-services.html http://www.destroydebt.com/articles/osi-portfolio-services.html Mon, 15 Feb 2010 06:00:00 GMT OSI is a leading national company providing accounts receivables management services to their clients.  Company headquarters are located in St. Louis Missouri with operations in 25 states across the country as well as in Canada, Mexico and Puerto Rico.  OSI clients include numerous Fortune 500 companies.
OSI employees over 6,000 associates and has revenues in the millions each year.  While there are several divisions of the company with one being Portfolio Services, their corporate family is focused on debt.  Collection of consumer debt and commercial debt and the managing of this debt is the companies’ backbone. The company purchases, manages and re-sells non-performing loan portfolios and other non performing accounts.  

The company is run with a strong mission and that is to be the best provider they can for all of their clients.  Employees of the company are held to high standards and must show respect and integrity on the job when dealing with clients, co-workers and anyone else they have company dealings with.  A strong work ethic and a willingness to learn is also required.  This strong employee stance it what keeps OSI ahead of its competitors.

OSI has over 50 years experience and can service just about any industry that works in any part of the Credit-to-Cash Cycle.  With debt skyrocketing across the country, they project to continue to grow and expand.  While jobs are being cut thorough out the nation, OSI continues to hire at an astounding rate. Employees at OSI are paid competitive salaries with bonus incentives, receive great benefits, can work flexible hours and have the ability to advance within the company. Employees also receive in depth training to help them perform their job at their fullest.  Communication and negotiation skills are highly emphasized in employee training.  Skills are also taught to help strengthen employee’s knowledge and efficiency. 

For those looking for services in the accounts receivable field, OSI can help.  They provide clients with assistance in collecting consumer debt and commercial debt.  They also work with credit grantors, purchasing and managing debt portfolios. Finally, OSI also partners with industry buyers, assisting them to find portfolios that will best suit their needs and turn a profit.     ]]> http://www.destroydebt.com/articles/federal-debt-relief-system.html http://www.destroydebt.com/articles/federal-debt-relief-system.html Mon, 15 Feb 2010 06:00:00 GMT Federal Debt Relief System (FDRS) claims to offer debt relief education membership and began business May 20, 2005, according to the Better Business Bureau (BBB). Soloman Bieber is the principal and manager. Two locations are shown for FDRS.  One office is located at 6362 Hollywood Boulevard, 4th Floor, Hollywood, CA 90028 with a telephone number of (877) 943-8600.
The Better Business Bureau rates businesses from A to F and has given Federal Debt Relief System an F rating. The BBB states that the reason for this rating is that this business has numerous unanswered complaints, questionable advertising, and has not followed licensing or registration requirements. In addition, the BBB states that though their website appears to have an association with the U.S. government, they are not. 

A total of 127 complaints have been filed against Federal Debt Relief System.  The complaints are as follows: 

26 for not refunding full refund as consumers requested

1 for making only a partial refund

34 for not performing according to the contract

4 for refusing to make an adjustment

29 for refusing to adjust and relying on agreement terms

33 for not answering complaints 

Customers stated that FDRS misrepresented themselves and did not pay or attempt to negotiate with any of the client’s creditors, as promised, and many customers were still sued by their creditors for the full amount of their debt. 

The Better Business Bureau has not accredited Federal Debt Relief System, and they know of no government action that has been taken against this company. 

The Better Business Bureau in almost all cases remains neutral in their listing of companies.  In this case the BBB advises consumers to proceed with caution before doing business with this company.  A quick search on the Internet will turn up dozens of complaints from former clients who claim the company does not fulfill the promises made when they enrolled in the program.  The debt settlement industry is one that must be navigated with extreme caution as there are many companies advertising programs that claim to help cash strapped consumers.  While there are in fact several legitimate companies operating in the industry this company does not appear to be one of them based on their current reputation. ]]> http://www.destroydebt.com/articles/debtors-calling-at-work.html http://www.destroydebt.com/articles/debtors-calling-at-work.html Wed, 03 Feb 2010 06:00:00 GMT Efforts to collect debts by creditors are often relentless.  The horror stories about the various Tactics and methods used by debt collection agencies for the purposes of collecting a debt are countless.  Those that have been subjected to these calls know that they can be both embarrassing and often times almost unavoidable.
The FDCPA or Fair Debt Collection Practices Act is the federal agency that governs the practices of debt collectors.  There are basic rules and regulations that guide their practice however these do not often prevent collectors from pushing the boundaries of these laws to get their money.  It is legal for them to call people at work for the purposes of collecting an outstanding debt.  There are also ways to get this to stop.  Knowing the guidelines and your rights is the best defense when dealing with debt collectors.

If you are receiving calls from debtors at your place of employment there are some things you can do to put a stop to this.  

• When you receive the first call from a debt collector you should first request that they give you some verification that the debt they are referring to is yours.  They will need to provide proof of this to you.  If they cannot do so request that they stop calling you immediately. 
• Even if the debt is yours and the collector can verify that via phone you can still ask them to stop calling.  Verbally request that they stop calling you at your work number. 
• Write down the time and date that you made this request. If possible get the name of the person that you spoke to and the number that they called from.  Debt collectors are prohibited from talking with anyone other than you about your debt. Additionally they are not allowed to make harassing or repeated attempts at contacting you. 
• If the calls still continue they are in violation with the FDCPA regulations.  You can request that they communicate with you only in writing and again verbally request that the calls stop. 
• If the calls do continue you may choose to send a formal letter in writing.  This is sometimes called a cease and desist letter. This formality will provide you with necessary documentation in writing should you need to obtain an attorney. 

It is not a bad idea if the calls do not stop after the first request, to notify your supervisor that you have received a call from a debt collector and that you have requested that this be stopped.  Notifying your supervisor will avoid issues at work should the debt collectors not stop after the first time.   ]]>