Archive for November 2nd, 2008
Nov
02
Things to Know Before Choosing a Debt Settlement Company
Posted by: | Comments
Denis Dcosta asked:
When you are looking to get relief from your debt problems, a lot of people tend to feel that the only good solution is to go about getting credit counseling or to even file for bankruptcy. What a lot of these people do not realize is that there is a little known about process that is known as debt settlement. The goal of debt settlement is to allow you to not only meet the requirements and needs of your creditors for less than what they say that you owe them but to also save you as much cash as possible throughout the process of it.
One of the many reasons why a lot of people choose a debt settlement institution is because their amount of debt amounts are highly out weighing what they are capable of managing in order to back the full amounts to avoid having to file for bankruptcy. Another reason as to why a lot of people choose to go about a debt settlement company is simple because they are way too fed up with the credit card companies because they are constantly increasing the interest rates to unfair advantages and they refuse to lower it no matter how much you try and get them to.
However, the absolutely number one reason as to why people choose to utilize a debt settlement company is to relieve the burden of being in debt. The burden of debt becomes such an overwhelming thing that their biggest goal is to become debt free and as a result it outweighs the thought of what could happen to their credit profile if they do not act upon it immediately. This is why the debt settlement process is something that is gone after when trying to accomplish the goals of getting out of debt and staying out of debt.
It becomes absolutely needed to eliminate your debt before trying to improve your credit score. This is because thirty percent of your score is determined by your debt to credit ratio so if you happen to have a lot of outstanding debt your score will be a lot lower than it should be which as a result can hinder your chances of getting anywhere financially. Your credit profile is a good indication of your history in terms of payments and late payments and such but it is one hundred percent possible to improve your score over a period of time because in the United States everyone gets a second chance at doing that.
Banking and financial institutions would love to keep you locked into the state of mind that your credit score is the absolutely most important thing in your life. Do not get suckered into feeling this way because it’s their way of fearing you into doing things their way. It is by all means an important part of your life but in no way should you allow it to dominate your life and make it so that it is the only thing that you care about. These financial institutions do not really care about you; all they care about is making more money. Why else would they raise your credit limit on your credit cards in order for you to charge more things to it? It is because they know that you are likely to fall into some sort of debt like most Americans and as a result they will make more money off of you and your debt.
When you are looking about the different options and as debt settlement comes to pass you realize that it is your choice to become debt free. There are typically two different types of companies that can help you in becoming debt free over time. The first one is the type of Debt Settlement Company that you see advertised everywhere that happen to not be lawyer based. The others are law firms that happen to have a debt settlement service as one of the things that they offer to people.
When you are searching for a debt settlement company there are some important things that you really do need to consider before choosing the right one that will help you become debt free. There are even some things that you should steer clear from if you want the best possible help for your current financial situation.
The first thing that I would like to point out is that any of these companies should be able to save you at least half of your debt including the fees that you have to pay and the paying of your creditors. While on your own you can typically save around half of that without too much effort on your behalf, getting any more relief than that will require a fair degree of experience that you do not have. One thing you need to be aware of when attempting to speak to someone from any debt settlement company is that you should always do your homework first. There are some companies out there that just want to make as much cash as they can off of their clients without any true regard for their own problems. These people say just about anything that you want to hear in order to get you signed up with their programs.
One way to see through all of the best is that some of these companies will tell you that you can set up a monthly payment for any amount that the client wants. This payment will usually be quite low and for a lot longer period of a time that many of the more reputable companies will allow you to have. This obviously will remove the purpose of what you are trying to accomplish because the longer the period of time you have to pay off a loan the more interest that will pile on and the more you will end up having to pay back as a result.
When you are looking about the different options and as debt settlement comes to pass you realize that it is your choice to become debt free. There are typically two different types of companies that can help you in becoming debt free over time. The first one is the type of Debt Settlement Company that you see advertised everywhere that happen to not be lawyer based. The other is law firms that happen to have a debt settlement service as one of the things that they offer to people.
A lot of people get into the mind set that there is a magic way to fix any of their problems quickly. These bad companies understand this need and typically are very good at catering to that and as a result sign up thousands of people on a yearly basis. Be careful of what they tell you because at first it may sound like a great deal but they do not usually include how much it will cost you in the long run. The first thing that you need to ask them is if their claim of savings includes their companies’ fees or not.
You should also make certain that you have a realistic time frame for paying back your debt. There is a huge benefit in going with a debt settlement company in that you can become debt free in a short period of time instead of paying the minimum payments to your creditors which with interest takes quite a long period of time to finish up. You should most definitely pick a debt settlement company that is going to focus on getting you debt free in two or less years only. This is because by stretching your payment plan further than three years time you will never get the full benefits that you are seeking out due to increasing interest piling on. The longer the program is that you sign up for the more debt you will end up having to pay out of as a result of it.
You should also make certain that the collection calls will be stopped from being made. One of the bad aspects of these debt settlement companies is that in order for your creditors to be willing to let you pay less you are going to have to fall behind on your payments to them. As a result of this you will end up getting several calls from collection agencies. This can be very annoying and just straight up aggravating. So when it comes to getting these calls stopped the only way that you can legally get them to is by having a lawyer from the debt settlement company to represent you.
As a result of this they must contact your lawyer or they will be faced with a law suit otherwise. If you are told from your debt settlement company that you can have these calls stopped to make certain that they have a lawyer to aid you in this. By law a collection agency does not have to deal with the debt settlement company unless they provide you with an attorney. If they tell you to just send a cease and desist letter to the collection agency, be careful, because you will leave them with no option but to serve you with papers to appear in court and as a result could end up being sued.
You need to make certain that the company you go with is a reputable one. To start with you should check out the better business bureau to see if they have any negative comments regarding their business practices. After this you should consider how long they have actually been in business as a general rule of thumb is that a company that has been in business for over ten years in good standing should give you some sense of peace in knowing that they know what they are doing and have helped a lot of people in the years past.
If the company you go with is only a year or two old be wary of this because there are lots of fly by night operations that sign up lots of people knowing that they are not going to be able to help them just to get the collection fees and when that is over and done with they close up shop and start a new company. If you end up going with a law firm you should obviously make sure that they are registered with the state bar association. If you have a problem and complain, they could lose their license, so it is in their best interest to help you if you go with them and do the best job that they can do for their clients.
The warning signs are pretty obvious because if a company has a poor record with the better business bureau it would be best to stay away. If the company is fairly new be sure to do your homework before going about getting their services as it would be in your best interests.
Even though debt settlement is a very smart way to go about getting out of debt just like anything you need to be careful with the place that you go with. If you read this guide carefully you will have a leg up and know how on how to choose the best possible company that can help you and your situation. You too can soon be out of debt completely and have a huge weight lifted off of your chest.
Debt management plan at EzConsolidation.com is designed by debt settlement experts to help those individuals that have piled on a fair bit of debt to relieve the burden of multiple bills and to allow them to focus on budgeting and managing their lives.
Caffeinated Content for WordPress
When you are looking to get relief from your debt problems, a lot of people tend to feel that the only good solution is to go about getting credit counseling or to even file for bankruptcy. What a lot of these people do not realize is that there is a little known about process that is known as debt settlement. The goal of debt settlement is to allow you to not only meet the requirements and needs of your creditors for less than what they say that you owe them but to also save you as much cash as possible throughout the process of it.
One of the many reasons why a lot of people choose a debt settlement institution is because their amount of debt amounts are highly out weighing what they are capable of managing in order to back the full amounts to avoid having to file for bankruptcy. Another reason as to why a lot of people choose to go about a debt settlement company is simple because they are way too fed up with the credit card companies because they are constantly increasing the interest rates to unfair advantages and they refuse to lower it no matter how much you try and get them to.
However, the absolutely number one reason as to why people choose to utilize a debt settlement company is to relieve the burden of being in debt. The burden of debt becomes such an overwhelming thing that their biggest goal is to become debt free and as a result it outweighs the thought of what could happen to their credit profile if they do not act upon it immediately. This is why the debt settlement process is something that is gone after when trying to accomplish the goals of getting out of debt and staying out of debt.
It becomes absolutely needed to eliminate your debt before trying to improve your credit score. This is because thirty percent of your score is determined by your debt to credit ratio so if you happen to have a lot of outstanding debt your score will be a lot lower than it should be which as a result can hinder your chances of getting anywhere financially. Your credit profile is a good indication of your history in terms of payments and late payments and such but it is one hundred percent possible to improve your score over a period of time because in the United States everyone gets a second chance at doing that.
Banking and financial institutions would love to keep you locked into the state of mind that your credit score is the absolutely most important thing in your life. Do not get suckered into feeling this way because it’s their way of fearing you into doing things their way. It is by all means an important part of your life but in no way should you allow it to dominate your life and make it so that it is the only thing that you care about. These financial institutions do not really care about you; all they care about is making more money. Why else would they raise your credit limit on your credit cards in order for you to charge more things to it? It is because they know that you are likely to fall into some sort of debt like most Americans and as a result they will make more money off of you and your debt.
When you are looking about the different options and as debt settlement comes to pass you realize that it is your choice to become debt free. There are typically two different types of companies that can help you in becoming debt free over time. The first one is the type of Debt Settlement Company that you see advertised everywhere that happen to not be lawyer based. The others are law firms that happen to have a debt settlement service as one of the things that they offer to people.
When you are searching for a debt settlement company there are some important things that you really do need to consider before choosing the right one that will help you become debt free. There are even some things that you should steer clear from if you want the best possible help for your current financial situation.
The first thing that I would like to point out is that any of these companies should be able to save you at least half of your debt including the fees that you have to pay and the paying of your creditors. While on your own you can typically save around half of that without too much effort on your behalf, getting any more relief than that will require a fair degree of experience that you do not have. One thing you need to be aware of when attempting to speak to someone from any debt settlement company is that you should always do your homework first. There are some companies out there that just want to make as much cash as they can off of their clients without any true regard for their own problems. These people say just about anything that you want to hear in order to get you signed up with their programs.
One way to see through all of the best is that some of these companies will tell you that you can set up a monthly payment for any amount that the client wants. This payment will usually be quite low and for a lot longer period of a time that many of the more reputable companies will allow you to have. This obviously will remove the purpose of what you are trying to accomplish because the longer the period of time you have to pay off a loan the more interest that will pile on and the more you will end up having to pay back as a result.
When you are looking about the different options and as debt settlement comes to pass you realize that it is your choice to become debt free. There are typically two different types of companies that can help you in becoming debt free over time. The first one is the type of Debt Settlement Company that you see advertised everywhere that happen to not be lawyer based. The other is law firms that happen to have a debt settlement service as one of the things that they offer to people.
A lot of people get into the mind set that there is a magic way to fix any of their problems quickly. These bad companies understand this need and typically are very good at catering to that and as a result sign up thousands of people on a yearly basis. Be careful of what they tell you because at first it may sound like a great deal but they do not usually include how much it will cost you in the long run. The first thing that you need to ask them is if their claim of savings includes their companies’ fees or not.
You should also make certain that you have a realistic time frame for paying back your debt. There is a huge benefit in going with a debt settlement company in that you can become debt free in a short period of time instead of paying the minimum payments to your creditors which with interest takes quite a long period of time to finish up. You should most definitely pick a debt settlement company that is going to focus on getting you debt free in two or less years only. This is because by stretching your payment plan further than three years time you will never get the full benefits that you are seeking out due to increasing interest piling on. The longer the program is that you sign up for the more debt you will end up having to pay out of as a result of it.
You should also make certain that the collection calls will be stopped from being made. One of the bad aspects of these debt settlement companies is that in order for your creditors to be willing to let you pay less you are going to have to fall behind on your payments to them. As a result of this you will end up getting several calls from collection agencies. This can be very annoying and just straight up aggravating. So when it comes to getting these calls stopped the only way that you can legally get them to is by having a lawyer from the debt settlement company to represent you.
As a result of this they must contact your lawyer or they will be faced with a law suit otherwise. If you are told from your debt settlement company that you can have these calls stopped to make certain that they have a lawyer to aid you in this. By law a collection agency does not have to deal with the debt settlement company unless they provide you with an attorney. If they tell you to just send a cease and desist letter to the collection agency, be careful, because you will leave them with no option but to serve you with papers to appear in court and as a result could end up being sued.
You need to make certain that the company you go with is a reputable one. To start with you should check out the better business bureau to see if they have any negative comments regarding their business practices. After this you should consider how long they have actually been in business as a general rule of thumb is that a company that has been in business for over ten years in good standing should give you some sense of peace in knowing that they know what they are doing and have helped a lot of people in the years past.
If the company you go with is only a year or two old be wary of this because there are lots of fly by night operations that sign up lots of people knowing that they are not going to be able to help them just to get the collection fees and when that is over and done with they close up shop and start a new company. If you end up going with a law firm you should obviously make sure that they are registered with the state bar association. If you have a problem and complain, they could lose their license, so it is in their best interest to help you if you go with them and do the best job that they can do for their clients.
The warning signs are pretty obvious because if a company has a poor record with the better business bureau it would be best to stay away. If the company is fairly new be sure to do your homework before going about getting their services as it would be in your best interests.
Even though debt settlement is a very smart way to go about getting out of debt just like anything you need to be careful with the place that you go with. If you read this guide carefully you will have a leg up and know how on how to choose the best possible company that can help you and your situation. You too can soon be out of debt completely and have a huge weight lifted off of your chest.
Debt management plan at EzConsolidation.com is designed by debt settlement experts to help those individuals that have piled on a fair bit of debt to relieve the burden of multiple bills and to allow them to focus on budgeting and managing their lives.
Caffeinated Content for WordPress
Nov
02
Debt Collectors are Supposed to Treat You Fairly
Posted by: | Comments
Matt Schaub asked:
If you fall behind in repaying creditors, you may be contacted by a debt collector. Under the Fair Debt Collection Practices Act, debt collectors have a legal responsibility to treat you fairly.
Even if debt collectors treat you unfairly, of course, you are still required to pay any legitimate debt. And like any legal proceeding, it can be a hassle to put in motion the legal steps necessary to actually obtain legal relief from a debt collector who is harassing you in the first place. For these reasons and others, you may prefer to simply “kill two birds with one stone”: begin a program of responsible Debt Settlement or Consumer Credit Counseling in order to begin to start taking action to lower your debt payments and help keep creditors from harassing you. ReallyGreatRate provides complete information on all the Debt Settlement options available to you, and offers a free consultation to discuss which option would work best for you.
The more knowledge you have the better. It is in this spirit that we want to inform you of some of your rights under the Fair Debt Collection Practices Act.
How is term “debt collector” defined? In other words, who does the Act actually deal with?
Any person who regularly collects debts owed to others is how the Act defines “debt collector.” Even an attorney who contacts you, if he collects debts on a regular basis, is a debt collector.
Which of my debts are covered under the Act?
Personal, family, and household debts, are covered under the Act. Money you owe for the purchase of an automobile, for medical care, or for charge accounts are all covered.
So just how exactly is a collector allowed to contact me?
A collector is allowed to contact you in a variety of ways. It can be in person as well as by mail, by telephone, telegram, or by fax. A debt collector, however, may not contact you at inconvenient times or places. This would include before the hour of 8 a.m., or after 9 p.m. in the evening. That is – unless you agree. Also: debt collectors are not supposed to contact you at work if the collector knows your employer disapproves of such contacts.
Can I actually stop a debt collector from contacting me unfairly?
If you write a letter to the collector telling the collector to stop contacting you unfairly, the collector is supposed to stop. After that the collector is supposed to stop contacting you. That is: except to say there will be no further contact. Or, to notify you that the debt collector or the creditor intends to take some specific action.
Remember, however: sending such a letter to a collector does not make any legitimate debt go away! You could still be sued by the debt collector or your original creditor.
What must the debt collector tell you about the debt?
The collector must, within five days of your first being contacted, send you a written notice telling you the amount of money you owe. The name of the creditor to whom you owe the money and what action to take if you believe you do not owe the money must also be specified.
May a debt collector contact anyone else about your debt?
If you have an attorney, the debt collector must contact the attorney and not you. If you do not have an attorney, a collector may contact other people to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once.
The collector, under most circumstances, is prohibited from informing anyone – other than you or your attorney – that you owe money.
Harassment
Debt collectors may not harass, oppress, or abuse you or any third parties they contact.
Debt collectors may not: use threats of violence or harm, publish a list of consumers who refuse to pay their debts (except to a credit bureau), use obscene or profane language, or repeatedly use the telephone to annoy someone.
May a debt collector continue to contact you if you believe you do not owe money?
A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money.
A debt collector CAN renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.
What false statements must a debt collector refrain from making?
Debt collectors may not: use any false or misleading statements when collecting a debt, falsely imply that they are attorneys or government representatives, falsely imply that you have committed a crime, falsely represent that they operate or work for a credit bureau, lie about the amount of debt owed, say that papers being sent to you are legal forms if, in fact, they are not, claim that you will be arrested if you do not pay your debt, state that they will seize, garnish, attach, or sell your property or wages (unless the collection agency or creditor intends to do so, and it is legal to do so), state that actions, such as a lawsuit, will be taken against you, (when such action legally may not be taken, or when they do not intend to take such action), give false credit information about you to anyone, including a credit bureau, send you anything that looks like an official document from a court or government agency when it is not, or use a false name.
What other unfair practices must a debt collector refrain from engaging in?
Debt collectors may not: collect any amount greater than your debt, unless your state law permits such a charge, deposit a post-dated check prematurely, use deception to make you accept collect calls or pay for telegrams, take or threaten to take your property unless this can be done legally, or contact you by postcard.
What control do you have over payment of debts?
If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe.
What can you do if you believe a debt collector violated the law?
You do have the right to sue a collector in a state or federal court within one year from the date the law was violated. Of course, you must go through proper legal channels to initiate the legal action. And if you lose, you will be incurring legal costs on top of any debt you legitimately owe.
Caffeinated Content for WordPress
If you fall behind in repaying creditors, you may be contacted by a debt collector. Under the Fair Debt Collection Practices Act, debt collectors have a legal responsibility to treat you fairly.
Even if debt collectors treat you unfairly, of course, you are still required to pay any legitimate debt. And like any legal proceeding, it can be a hassle to put in motion the legal steps necessary to actually obtain legal relief from a debt collector who is harassing you in the first place. For these reasons and others, you may prefer to simply “kill two birds with one stone”: begin a program of responsible Debt Settlement or Consumer Credit Counseling in order to begin to start taking action to lower your debt payments and help keep creditors from harassing you. ReallyGreatRate provides complete information on all the Debt Settlement options available to you, and offers a free consultation to discuss which option would work best for you.
The more knowledge you have the better. It is in this spirit that we want to inform you of some of your rights under the Fair Debt Collection Practices Act.
How is term “debt collector” defined? In other words, who does the Act actually deal with?
Any person who regularly collects debts owed to others is how the Act defines “debt collector.” Even an attorney who contacts you, if he collects debts on a regular basis, is a debt collector.
Which of my debts are covered under the Act?
Personal, family, and household debts, are covered under the Act. Money you owe for the purchase of an automobile, for medical care, or for charge accounts are all covered.
So just how exactly is a collector allowed to contact me?
A collector is allowed to contact you in a variety of ways. It can be in person as well as by mail, by telephone, telegram, or by fax. A debt collector, however, may not contact you at inconvenient times or places. This would include before the hour of 8 a.m., or after 9 p.m. in the evening. That is – unless you agree. Also: debt collectors are not supposed to contact you at work if the collector knows your employer disapproves of such contacts.
Can I actually stop a debt collector from contacting me unfairly?
If you write a letter to the collector telling the collector to stop contacting you unfairly, the collector is supposed to stop. After that the collector is supposed to stop contacting you. That is: except to say there will be no further contact. Or, to notify you that the debt collector or the creditor intends to take some specific action.
Remember, however: sending such a letter to a collector does not make any legitimate debt go away! You could still be sued by the debt collector or your original creditor.
What must the debt collector tell you about the debt?
The collector must, within five days of your first being contacted, send you a written notice telling you the amount of money you owe. The name of the creditor to whom you owe the money and what action to take if you believe you do not owe the money must also be specified.
May a debt collector contact anyone else about your debt?
If you have an attorney, the debt collector must contact the attorney and not you. If you do not have an attorney, a collector may contact other people to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once.
The collector, under most circumstances, is prohibited from informing anyone – other than you or your attorney – that you owe money.
Harassment
Debt collectors may not harass, oppress, or abuse you or any third parties they contact.
Debt collectors may not: use threats of violence or harm, publish a list of consumers who refuse to pay their debts (except to a credit bureau), use obscene or profane language, or repeatedly use the telephone to annoy someone.
May a debt collector continue to contact you if you believe you do not owe money?
A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money.
A debt collector CAN renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.
What false statements must a debt collector refrain from making?
Debt collectors may not: use any false or misleading statements when collecting a debt, falsely imply that they are attorneys or government representatives, falsely imply that you have committed a crime, falsely represent that they operate or work for a credit bureau, lie about the amount of debt owed, say that papers being sent to you are legal forms if, in fact, they are not, claim that you will be arrested if you do not pay your debt, state that they will seize, garnish, attach, or sell your property or wages (unless the collection agency or creditor intends to do so, and it is legal to do so), state that actions, such as a lawsuit, will be taken against you, (when such action legally may not be taken, or when they do not intend to take such action), give false credit information about you to anyone, including a credit bureau, send you anything that looks like an official document from a court or government agency when it is not, or use a false name.
What other unfair practices must a debt collector refrain from engaging in?
Debt collectors may not: collect any amount greater than your debt, unless your state law permits such a charge, deposit a post-dated check prematurely, use deception to make you accept collect calls or pay for telegrams, take or threaten to take your property unless this can be done legally, or contact you by postcard.
What control do you have over payment of debts?
If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe.
What can you do if you believe a debt collector violated the law?
You do have the right to sue a collector in a state or federal court within one year from the date the law was violated. Of course, you must go through proper legal channels to initiate the legal action. And if you lose, you will be incurring legal costs on top of any debt you legitimately owe.
Caffeinated Content for WordPress
