Destroy Debt Blogs

My Plan to live Debt-Free - Progress Report - November 2009

Sat, 07 Nov 2009 04:13:34 GMT

Here is the current status:

Total Credit Card Limit = $7700.00 / Current Balance Owed = $7535.00 / Current % Debt = 97%

Yes, the current balance owed is up, however there were some hiccups. One being my health insurance has not sent my EOB this month to get reimbursed for my co-pays, I have had to use my cards for gas and food. I called yesterday to have them fax it over, which they did not. I will need to follow thru next week. However, with that amount reimbursed, I can put half of it towards this debt. Another hiccup is that my boyfriend accidently uploaded a Mal-ware program and I had to purchase a Mal-Ware remover, because the program I had did not catch it. NOTE: Do NOT use Trend... they are the worst. And the final hiccup, I did not pay attention to one of the cards was due the annual fee - $59.00 (OUCH!!!!!!!) Oh well -- this tells me a few things...

1) I need to be more dilligence

2) I need to monitor my cards better

3) I need to revisit my budget and see where my downfalls are.

Not a good month, but I am not discouraged. I am still hopefull. I have faith that I will suceed. I am not going to berate myself. I refuse to do that. I got myself into this mess - I can get out of it!

Non-Profit Debt Solutions With Certified Credit Counselors

Wed, 04 Nov 2009 02:25:28 GMT

Currently, the average consumer has a credit card with a credit line of at least $4000 and about a quarter of Americans admit to maxing out at least one credit card. Obviously, people are in need of simple solutions to sooth the burdens of being buried in debt. A non-profit debt consolidation program can very well be the answer most consumers can look to and afford for debt relief.

The average consumer today carries about 3-5 credit cards, each with their own outstanding balance, creditor terms and fees, due dates, and varied billing cycles. A non-profit debt consolidation organization negotiates these terms with each individual creditor to reduce interest rates, stop late, past due, over limit fees, and usually a lower monthly payment. In obtaining the best rates for the account holders, the non-profit org consolidates all the accounts into one monthly payment and the account holder then sends one payment each month to their consolidation agency.

This allows the consumer the following benefits:

Convenience of one monthly payment with a due date specified by the client.

A reduction in interest to a lower, fixed rate so that the debt can be paid back within a five year time frame, allotting the majority of the monthly payment each month to be applied to the principle balance versus the creditor fees.

Relief from harassing collection calls and creditor harassment.

Re-aging of accounts |certain creditors only |after a specified amount of time so the consumer can begin to report current |if they were past due | without paying the additional late fees.

Consecutive timely monthly payments to help improve credit rating over time.

A true non-profit organization begins their consultation with a free budget counseling session outlining and assessing your debt to income ratio on a monthly basis and reviewing assets versus liabilities. Some creditors require this information for enrollment in a consolidation program and others even base the interest reduction on said information. A non-profit agency usually receives better rates with the creditors on behalf of their clients as creditors acknowledge the educational process of the consultation and appreciate the non-profit ensuring a client not only understands their financial obligations, but ensures the programs success with the budget analysis, qualification process.

The mission of a good non-profit is not to charge you exorbitant fees for their services, but to get you out of debt and provide free educational information to ensure consumers do not make the same mistakes in the future. Remember that class in high school about how to manage credit card debt? Neither do we, because it didnt and still does not exist to this day. The American consumer is only partial to blame, so dont be too hard on yourself. And remember, you certainly are not alone in this credit debt debacle.

Here are a few good tips when shopping for a debt consolidation service.

Check the company out on the Better Business Bureau. You can usually search for a business by zip then name of the organization.

Are they listed with the BBB?

What is their BBB rating?

Do they have complaints?

What type of fees do they charge for their service?

Does the first payment go out to the creditors? Every payment less their nominal monthly fee should go out as received and cleared from client.

How much is the monthly service fee? This really should not exceed an average maximum of $5 per account enrolled.

Are there any pre-payment penalties if you are able to pay the debt off early? The answer should be no.

Are there cancellation fees? A true non-profit usually will not charge a fee for cancelling before completion but most creditors take it as an opportunity to reinstate your original rates, justifying it as a program default.

Debt consolidation is a great solution to getting out of debt and maintaining a positive credit score. However, consolidation is not for everyone. You have to be ready to stop spending on your accounts; credit cards are closed once they are enrolled in the program so spending on them is no longer an option. In addition, most creditors require that all accounts be enrolled into the program less one major credit card for emergencies. No, your Victoria Secret card cannot be left out for emergencies lol.

Good non-profits require their credit counselors to be certified and maintain their certification for continuing education as creditor guidelines and state practice regulations change frequently. They are also usually affiliated with an organization like ISO or AADMO. A true non-profit will also offer free budget help and a free debt consultation without any consumer commitment until they fully understand the program and recognize the potential savings to come with the enrollment. For more information feel free to call 800-905-1563 or visit our website, http://www.freedomdm.org

We are doing a research on facebook

Wed, 04 Nov 2009 02:07:34 GMT

We are doing a nationwide research on debt related problems. Will appreciate your help, if you can forward it to all your friends. http://www.facebook.com/pages/Debt-P...h/192570612068
We will also discuss about this community on our press releases.
Thanks for your help.

Free Financial Literacy Guide

Fri, 30 Oct 2009 03:45:39 GMT

We're offering our free financial guide by Fannie Mae to anyone who wants to verify their name and address to be mailed the free financial booklet. Your information will not be sold or used for any other reason.

Knowing and Understanding Your Credit is a 28 page financial guide to help consumers better understand their monthly finances and effective credit management. It provides credit report review advice and a mini financial addendum to help assess and create a household budget.

Our non-profit org is dedicated to helping consumers get out of debt and provide free financial information to anyone interested in betting their financial situation or is looking to improve their credit to purchase a home or vehicle in the next five years.

Please email me your name and mailing address for your free copy of Knowing and Understanding Your Credit to be mailed out with no obligation or further contact unless requested otherwise. Again, this is a free booklet and your information will not be sold or used for continued marketing efforts.

Freedom Debt Management, Helping America Become Debt Free One Household At A Time.

Cordially,

Michael Brazier
E: mikeb@freedomdm.org
P: 561.362.3029
F: 561.362.9130

Clean Credit: How to Improve Your Credit, 5 FICO Steps

Thu, 29 Oct 2009 07:33:29 GMT

Credit is serious business and its tied into every aspect of life. Your credit is checked for everything these days. Car loans, rental property, even jobs now are running credit checks for employment eligibility. Improving your FICO score and fixing your overall credit is no easy task. Like losing weight, repairing your credit takes time. It took you a while to chunk on those pounds and itll take just as long, if not longer, to slim back to skinny. Debt works the same way. Nothing gets fixed overnight regardless of what most profit based companies advertise.

Your credit score is determined by the following entities.

Payment history = 35 percent

Amounts owed = 30 percent

Length of credit history = 15 percent

New credit = 10 percent

Types of credit = 10 percent

Taking account of what really affects your credit, these get fix quick claims become just that- claims. The best advice is to manage credit responsibly over time. Following the order above, we can break down each entity of the credit score factors to help better assess how to really improve your credit and not get scammed into paying profiteers for promises that probably wont pan out perfectly. Ready? Get excited!!!

Paying your bills on time accounts for 35 percent of your credit score! Delinquent payments and accounts with collection agencies can place a major negative impact on your credit rating. This step is crucial and requires a lot of attention and discipline on a monthly, consistent basis. Stay current. The longer you pay your bills on time the better your score will be.

Amounts owed takes 30 percent, noting the second biggest factor in your credit rating. Keep your balances low. Just because a bank gave you a credit line of $5k doesn’t mean you should spend $4,987.67 and pay the minimum monthlies. Balances exceeding 50 percent of your available credit per account can take your score down quickly. Don’t rob Peter to pay Paul either. Moving debt around doesn’t help your credit score.

The length of your credit history takes third place in priority, accounting for 15 percent of your score. Don’t try and open too many accounts at once in an effort to build credit. Newly opened accounts can lower your average account age and can greatly effect your score if you dont have a lot of other credit information.

New credit takes 10 percent. When you decide to establish new credit, shop your rates and loan options within a controlled period of time. Completing loan and credit applications over weeks at a time can reflect poorly and drop your score. If youre shopping for deals, do it within a certain time frame and lock down your options, comparing rates and fees for services.

Lastly, you need a little credit variety in life...just like a diet and dining. Apply for new credit accounts only as needed. Just to note: Getting the new xbox360 is not a need…says my wife. Opening new accounts and spending on them just to establish new credit doesn’t raise your credit score. Paying timely on your installment loans and combined credit cards will raise your score over time coinciding with the above factors.

A debt consolidation program allows consumers to pay back their debts at lower rates and with the convenience of one monthly payment. The reduced interest and stopping of late and past due fees allows the consumer to bring their balances down and creates a consecutive timely billing cycle with affordable payments. By improving payment history -35- and bringing balances down -30-, a debt consolidation program can greatly help you improve credit while getting out of debt. Debt consolidation / not debt settlements. –write that down.

Freedom Debt Management is a non-profit organization rated A+ by the BBB for budget counseling and debt consolidation services. For a free budget analysis, credit report review, or consolidation quote to get out of debt, visit our website and speak to a live credit counselor, complete our short application, or call one of our certified credit counselors at 800-905-1563.

Thoughts Before Initiating a Credit Card Debt Elimination Program

Tue, 27 Oct 2009 10:18:39 GMT

Before you invest any more of your time and effort, you should consider if debt negotiations is the right option to choose for you. Do you have a legitimate financial hardship?

Financial hardship comes in the form of a chronic medical condition, loss of work, loss of child support compensation, loss of income, a death in the family, separation, divorce, or some other identifiable major event that caused your financial crisis.

Are you devoted committed to getting out of debt and / or avoiding bankruptcy? Only with a stanch desire and commitment can you carry out a credit card debt elimination strategy and get out of debt for the rest of your life.

Do you have more than $15,000 in credit card debt? If you do, debt negotiations may be the best option for you.

Credit card debt lends itself to debt settlement. Debt settlement has a very successful history when applied to credit card debt.

Can you find the money you need for debt settlement? Can you put aside and / or scrounge enough money to settle your debts? In order to settle your debt you are going to need a certain amount of finances available to you.

If you don’t have the money now, you can accumulate the money needed as you go through the debt settlement process.

There are two major downsides you want to keep away from if you decide that you want to settle your debts:

1. Prompt a creditor to send your file immediately to their lawyers.

2. Hiring a debt settlement company.

When you sign up with a debt settlement company they usually will ask you for a limited power of attorney; that allows them to legally represent you during negotiations with your credit card companies.

In many cases this elevates an internal flag with your creditors who will in very short order forward your credit file to their legal department to start legal proceedings, which is the worst case situation.

Combine this with the fact that there are so many fraudulent debt settlement companies coming up out of nowhere, you can only come to the conclusion that the best choice is to settle your debts yourself by negotiating directly with your creditors.

Creditor ABCs; Avoid Bankruptcy, Consolidate

Mon, 26 Oct 2009 07:20:49 GMT

Like the rest of us, most consumers are having trouble paying their credit cards bills. With the crumbling economy and unemployment rates soaring its no secret why a lot of consumers are falling more behind on their unsecured debts. More bankruptcies filed this year show that problem isnt going away and most likely will not for some time. Bankruptcy though, should be considered a last resort. Theres still hope with debt consolidation. A debt consolidation plan can be considered for the following situations;

Current on accounts and want to remain so but at lower rates
Less than 12 months behind on payments
Need to stop late, past due, and over limit fees
Stopping of harassing creditor and collection calls.
Looking to reduce balances owed at affordable rates
Avoiding bankruptcy and settlement programs to save your credit
Improving your credit score with timely payments and balance reductions
Developing a household budget, free budget counseling
The convenience of one monthly payment on a due date that works around your budget

A debt consolidation plan with a non-profit agency is always your best bet to avoid scams and profiteers looking to line their pocket from your financial misfortunes. Before committing to an agency, check them out with the Better Business Bureau.

A solid non-profit will go over your financial addendum, household budget, to assess your debt to income ratio on a monthly basis. A certified credit counselor will then review your accounts to consolidate and help make an affordable monthly payment based on your budget and coinciding creditor guidelines for payments. Some things to realize about consolidating your debts:

Accounts enrolled are closed – no more purchases
Current accounts remain current and do not hurt your credit once enrolled
Late, past due, over-limit fees STOP once enrolled
Interest rates are reduced to lower, fixed rates
Collection calls stop
No additional payments will be required outside your consolidation program
Past due accounts can be brought current after a few timely payments to rebuild credit.
Creditors only require consecutive monthly payments for these benefits.

All creditors require accounts enrolled into a debt consolidation program to be closed so you cannot charge on them any longer. Remember, you’re looking to get out of debt- not incur more. If your payments have been on time prior to enrollment they remain so upon entering to ensure your credit score is NOT affected negatively. Creditor fees stop once the accounts are enrolled into the program and interest rates reduce down to fixed lower rates. With the stopping of fees and a reduction in interest rates, your balances are able to reduce nicely. Your monthly payment bringing the balance down helps improve your credit score and enables consumers to get out of debt within 4-5 years versus 20-30 years at your current rates and fees. A debt consolidation agency usually has a customer service department to handle your creditor calls and account inquiries. So, no more harassing collection calls either. Creditors only require the agreed upon amount negotiated by your consolidation agency. Those past due amounts will not be waived, but you will only be required to pay monthly whats been agreed upon on your behalf. If you enroll accounts that are already behind on payments most creditors have whats called a re-aging process. In this process, creditors will usually bring an account to a current, positive reporting status, after 4-5 consecutive monthly payments. This in turn, further assists your credit score increasing as you have more accounts reporting positive timely monthly payments.

While you may think the road to financial freedom can only be paved with bankruptcy there still may be help. Consultations on debt consolidation are free. Theres no obligation to receive free information. These benefits could be applicable to your situation and could possibly prevent tarnishing your credit with settlements or a bankruptcy. Call one of our certified credit counselors today for a free budget counseling session and debt analysis. 800.905.1563. If we cant help you with our non-profit services well point you in the direction of someone who can. Freedom Debt Management is a 501c3 non-profit organization recognized by the BBB as an A+ rated service.

Debt Settlement Companies and Consumer Credit Counseling serve the same Goals.

Thu, 22 Oct 2009 06:44:22 GMT

Consumer credit counseling and consumer debt settlement are applicable to different circumstances but have same results. You have to choose the services according to your situation and then move further.

Consumer Credit Counseling (CCC) is basically for those in search of financial aid. With this counseling service the debtors have to pay same to the amount they are paying currently. Moreover the payment terms are according to the debtors. CCC helps you pay your full debt and this is under very low interest rates. The most important thing is that it reduces the total time required to pay off your whole debt. So credit counseling proves to be the convenient way of getting rid of your outstanding.

Now the other option is Debt Settlement or Debt Relief plan. This option is available for those are not eligible to file bankruptcy and are knee deep in debt. Debt elimination service take into account ability of the consumer to pay and the requirements of the creditors to decide the structure to pay off debt in full. This option profit the consumers by both reducing their monthly overhead and by also noticeably dropping the total time required to get out of debt. Thus it proves to be the best alternative to bankruptcy.

Consumer debt consolidation help and credit counseling are different concepts but serve the different results. CCC is just an easy option for those with not so bad credit situation. They are made to pay almost the same to the current amount. Whereas Debt Settlement or also Bill consolidation have no options or choices rather than going for bankruptcy. Constrained by important economic hardship, other choices easily don't match debt relief candidates very well. These services thus assist distinct people. Individuals are normally only adept to advantage from one of these non profit debt consolidation loan programs and getting into the incorrect program can make a person’s position even worse.

10 tips for Better DIY Debt Settlements Results:

Wed, 21 Oct 2009 08:46:13 GMT

Considering DIY Debt Settlement? How do you get the best results?

This is an extract from an article that can really help you get better results. Simple effective and easy to understand. the full article can be found at http://trust-debt-settlement.us/p136533-do-it-yourself-debt-settlement.cfm

Do It yourself Debt Settlement Tips

1. Do your research on the creditor. Find out as much about them and their financial position as you can. How many bad debts do they have? How desperate are they for money? How often have they been hounding you? All of these things are good ammunition for you. A creditor that desperately needs money in order to pay their own bills will tkae a lower settlement than one in a strong position. Know your enemy.

2. Visit online forums and blogs on debt settlement. Talk to others, find out whats worked for them and what hasn't. Where possible find out what tactics the professionals have used to get good results. Make ure that you understand not only what they did, but why it worked. If you don't understand, ask more questions until you do as you will be dealing with people that do understand and you can't afford to have your ignorance exposed.

3. Be honest with yourself about what you can afford, and what you would consider a win. Do this before entering a negotiation. If you enter into a debt settlement plan, make sure you can deliver on your commitment. Don't expect miracles, and don't expect your debts to just disappear - they won't and you'll just get disappointed.

4. Learn your legal options. What is chapter 13 bankruptcy? What is Chapter 7? What is the Statue of Limitations on credit card debt in your state? Again, forums and blogs are a great place for this, and if you are going down the do it yourself debt settlement route you need to know these things - they can be great bargaining chips. If you're currently unemployed, contragulations - this is your new job.

5. Be open and cooperative with the creditor. Express your wish to pay the debt as fully as possible, and try and make this a situation wherer you are working together rather than against each other. While it is a negotiation, and you are on opposite sides, you both have something the other wants. They have the ability to wipe your debt, and you have the cash that they need. working together as much as possible will lead to better results than an adversarial approach most often.

6. Consult advocacy groups and free community assistance programs and see what they can do to help. enlist a budgeter if you can, and when negotiating a debt settlement program, show the creditor that you have budgeted funds for the settlement. This will help establish two things: first that you can actually carry out the plan you suggest, and second that you are serious about your financial issues and willing to do something about them.

7. Find out what others have actually achieved by doing it themselves. If you can find someone in your local area that has tried doing it themselves, see if you can speak to them and get some tips. This will help you get realistic expectations and actually achieve them.

8. Be professional. Treat this like a job - Debt Settlement companies do this for a living full time, so if you expect to get good results you will need to show a similar commitment. When meeting creditors in person, be well presented without being over the top, and go prepared with information and a plan. Rehearse your arguments and responses to common objections. These meetings can be tense, so try and lower the tone by being as pleasant and polite as possible without being too casual. This will build the creditors condfidence in you.

9. Keep your cool in the face of rejection. Like any serious negotiation it is not unlikely that your inital suggestion will be rejected, and the creditor may threaten you with collection actions if the debts are not paid in full. Don't lose your temper if this happens. Just like many people in financial difficulty make their situation out to be worse than it actually is in order to try and get the best settlement possible, many creditors will first try a few scare tactics to see if they can ruffle you into full payment. If you have done your research properly you will know whethertnheir threats are valid or not and this can actually be very beneficial - a creditor threatening action they can't actually take is showing desperation!

10. Be persistent and have patience. Some creditors may not agree to a negotiated debt settlement initially if they feel they can recover the debt in full. Be prepared to wait for a while if the creditor is not being cooperative, and try again later. Focus on repying the debts you have agreed to settle - this should be your first priority. As the debt ages the creditor will be more likely to entertain a settlement.

Hope this helps you all save a bucket load of money!

Debt Settlement works

Wed, 21 Oct 2009 07:25:34 GMT

Debt Settlement is a great option for people swimming in too much debt. As we all probably know, the problem with debts is that the snowball - if you start to get behind it gets harder and harder to get the ground back until it seems like a hopeless task.

Debt Settlement is a great option for people in this situation, where consolidation just won't cut it. Your credit score is probably already damaged, and it's not likely to get better as long as you're under that blanket of debt. what you need is a fresh start and a chance to get your feet back under you.

Debt settlement achieves this for you, but there is always the question - why should I pay someone to do what I can do myself?

Just like home renovations, it's always tempting to give it a try yourself first. how have you got on? did you manage to get your debts settled? How much did you save? Did you end up using a debt settlement company?

Share your experiences and what's worked or not worked for you!