Debt Settlement Program

Is Debt Settlement Helping To Save The US Economy? Can It Help Regain Your Lost Spending Power?

A thought occurred to me recently. After being a credit counselor in both the non profit and for profit arenas for at least ten years, I noted that the consumers seriously exploring debt settlement programs as a viable option to debt freedom seemed to have not only increased, but also very much those consumers who prided themselves their whole lives on working hard and paying there bills.

 I cite to support my argument the well known whitepaper by Dr. Bernard L. Weinstein, Ph.D, and Dr. Terry Clower, Ph.D. which can be found at American Debt Enders Whitepaper on Debt Settlement.html. The professors make a powerful se supported by research that debt settlement which has really been around since the beginning of time, really helps the US economy in a win, win situation. You can read the whitepaper for yourself by visiting the above link, but let me put forward my opinion about this topic as the economy has actually changed significantly in the few years since this paper was originally authored.

 In case you have not noticed, if you are part of the so called middle class, and would someone please define it, your purchasing power over the last four years has significantly declined. We receive calls from finically distressed consumers frequently who say that they have no idea why they are no longer able to manage their debt payments, as very little has changed as far as they can tell. And there in lies the problem. The purchasing power of the dollar is decreasing, you can check the federal stats yourself, but your buying power has decreased by at least four thousand dollars over the last fur years. And that just assumes that all else has remained equal. In fact, it’s now continually decreasing because of the Federal Reserves need to print money to service the US debt load.

 This has become a major problem for US households. Crushing debt, now including student loan debt, coupled with anemic buying power is a formula for at is least stress, and at its worst personal financial ruin. There are only two ways to combat this problem, one is to make more money, and with high unemployment this is more and more difficult, and the other is to lower the debt burden, assuming you are unable  carry it any longer.

NOTE: I am no telling you to stop paying your creditors if you are capable of doing so. However, if you are in a debt dilemma, please do avail yourself of the FREE Counseling numbers below.

 Free Credit Counseling---       877-766-2465

Student Loan Consolidation---877-766-2465

Free Ch-7 Bankruptcy Counseling-- 516-204-4640 (National Number)

Credit Restoration Counseling-888-586-2661 Inc.FREE  Credit Report Review

Each of these numbers provides Free Counseling.

 If you would like to contact me, pleas use the contact information below.

Yours Truly

Steven Ciantro
Consumer Advocate
American Debt Enders
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper's Top 1% Club
Gail Kasper's Top 1% Club 
Linkedin Profile
Author #1 Ranked Debt Relief Newsletter
877-766-2465

 

 

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Debt Settlement and Your Credit Reports

Cannot Afford A Debt Settlement Program, But Need Debt Settlement? What Is The Option?

No Longer Want To Pay For That Thirty Thousand Dollars Of New Home Furnishings? Debt Settlement May Not Be Your Best Option.

 Having been a credit counselor for ten plus years, the debt help industry is ever changing, like everything else in our world. Not just regulations, but also attitudes. For example, Chapter 7 bankruptcy used to be considered the worst thing anyone could do. Just walk away from your debts. Well, this attitude toward a bankruptcy has changed remarkably. First of all, it is harder to do. Secondly, the negative ramifications are far fewer and less severe, as overall economic conditions make it a more reasonable alternative. Depending on your age, would you ever have believed when you were younger that US citizens, en Mass, would be losing their homes in foreclosure actions? This was something that only happened to others.

 More than ever, the past few years have produced a greater percentage of telephone calls with consumers willing to discuss and consider a bankruptcy, Chapter 7, in order to simply get a fresh start.

 Additionally, now, it is not unusual for consumers to want a debt settlement program quote, even if they are making their monthly credit card minimums on time every month.Which is really what the point of this article is. Consumers are speaking with three and four settlement companies to get quotes, just the way consumers used to shop for a mortgage. So why call? Simply because they are now becoming aware of the fact that their credit card balances are not going down any longer and they are simply getting tired of paying on these debts every month. Are you familiar with the expression, the more things change the more they stay the same.

 How is it possible that this happens suddenly? Really it is never suddenly, you see first, they make a purchase at a reasonable low payment and low interest rate which they feel they can afford. It is so reasonable that before they now it, the banks raise the interest, give them the required notice, and tell them that in thirty days their interest rates are going to increase. How much? Just enough to raise your payment by twenty five dollars per month. So you feel it is no problem, and instead of freezing the card’s interest rate where it is, and closing it, you have agreed to pay the increase. Now you are on your way to being trapped. Because you do not have one card, you have ten. I have counseled with people who have over thirty credit cards. Yikes. They were caught sleeping at the switch.

 So, why are they calling me, your friendly credit counselor? Finally, they are no longer sleeping! This waking up should have happened a long time ago, but, I am not beating anyone up, the important thing is that they now realize their error.

 One of the big questions is, can I get a debt settlement quote? Consumers are starting to see this option as the fastest way out, especially, if they are not candidates for a bankruptcy. Let me simply say here that this is not the reason debt settlement programs ever came into being. They came into being assuming that a consumer had a change in there lives which caused the debt to become a real hardship, and could not or would not enter into a bankruptcy Chapter 7. So the ten thousand dollars worth of furniture, that you are sitting on, is now hurting them. Yes, many calls like this indeed.

And, most people do realize that it is really somewhat unsavory to offer to pay back less than they borrowed when they do not even have a financial hardship. If the situation has changed, and a true financial hardship exists, then that is exactly what settlement is for.

 But, I try to be non-judgmental in my counseling. I am merely pointing out how differently consumers look at everything in this so called “new economy”. And make no mistake, it is exactly a new economy. One in which heavy debt will weigh you down and disempower you, and keep you stressed out. Is that really how you want to live? How about, if you are getting stressed by debt, and who can blame you if you are, you try speaking to a credit counselor, one who counsels for free, and explains what your options are, and how you can really adjust to this new economy, and become self empowered by learning to live debt free.

 A good place to start is by visiting the American Debt Enders website and using it as a free resource.

The site is 105 pages and contains well researched material to help you.

If you enjoyed this article you can freely subscribe to this newsletter by leaving your email address at FREE Debt Relief Newsletter and simply leaving your email address. We never share your information.

This newsletter is ranked #1 in the small business finance category by Technorati.

 If you would like to speak to me directly, simply use the contact information below. The talking is always free.

The ADE FREE DebtHelp Phone Numbers:

Free Credit Counseling---        877-766-2465 

Student Loan Consolidation--- 877-766-2465 

Free Bankruptcy Counseling--  516-204-4640  (National Number)

Credit Restoration Counseling-888-586-2661 Inc. Credit Report Review

Each of these numbers provides Free Counseling.

 Yours Truly

Steven Ciantro
Consumer Advocate
American Debt Enders
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper's Top 1% Club
Gail Kasper's Top 1% Club 
Linkedin Profile
Author #1 Ranked Debt Relief Newsletter
877-766-2465

 

 

 

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Debt Settlement - The Better Alternative For Financial Relief

Cannot Afford A Debt Settlement Program, But Need Debt Settlement? What Is The Option?

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Cannot Afford A Debt Settlement Program, But Need Debt Settlement? What Is The Option?

 For people who could no longer afford there monthly debt obligation minimum payments? Yes, that would be an option very high on the list of reasonable solutions. However, settlement programs have requirements that dictate the length of the program which in turn effects what the minimum payment needs to be to bring the program to a successful conclusion, and even stay within regulatory guidelines.

 So you may be saying. I thought settling ones debts was dangereous? 

If you have less than 15,000 dollars of unsecured debt and you want to do a settlement program, you are in a category of the accelerated program, meaning yiou may have to do a 12 or 15 month program. By the time the fees are added in, the monthly payment can easily be over 325.00 dollars per month. Simply stated, that payment may be to high for you. So, what to do?

 Well, the author of this article and American Debt Enders specialize in finding viable solutions to get you debt relief. If you are fortunate, the credit card debt or other unsecured debt may be spread over 4 or 5 cards. If it is, that is a good thing, because the lower each individual debt amount, the lower the chances of getting sued by a creditor. It is simply due to the law of diminishing returns. The lower the return to the debt collector, the less profit, and they are a business just like any other business. So that opens even wider the chances that you can successfully handle your own debt settlement program.

First, for resources you can avail yourself of to defend yourself in a creditor lawsuit if you are served a subpoena you should visit creditor lawsuit resources. If you have debts that are under one thousand dollars, the chances that you will be subpoenaed on any of those debts are greatly minimized.

 So where to start. Figure out how much you can afford to put into a savings account each month. Put as much as you can into that account. This is going to be what you are going to use to settle the debts when the time comes. The real advantage to settling these debts yourself is that you are going to save a lot of money in fees, and this may allow you to get expedited settlements. Note: I would not recommend this approach if the debt load is very high, and you are expecting many subpoenas. They can come fast and furious in this case, and easily overwhelm you.

 If the debts are with the original creditor when you start this self settlement program, it will take about six months for the debts to charge off and be purchased by a collector. Their original credit card issuer, will not settle with you, they are not in the business of loaning you say, 120,000 dollars only to get back 5,000 dollars, no matter how good you think your negotiating skills are.

 Once the debt collectors have the debt, they will be looking for settlements. Do not jump at the first offer, and make sure you monitor the phone calls. Why? Because if they violate the FDCPA, then you can counter claim against them for one thousand dollars per occurrence. Again, you will find a great deal of more information about all things related to this topic on the ADE website.

 So here is the bottom line. I could go on and on, probably write a book for you on this topic. But, the main thing is to keep it simple. If you would like to subscribe to this FREE credit counseling newsletter, simply visit: freecreditcounselingblog.com and leave your email address.

The ADE FREE DebtHelp Phone Numbers:

Free Credit Counseling---       877-766-2465

Student Loan Consolidation---877-766-2465

Free Bankruptcy Counseling-- 516-204-4640 (National Number)

Credit Restoration Counseling-888-586-2661 Inc. Credit Report Review

Each of these numbers provides Free Counseling.

 

 

 If you would like to speak to me, you can reach out to me using the contact information below. The talking is always free.

 

Yours Truly

Steven Ciantro
[email protected]
Consumer Advocate
American Debt Enders
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper's Top 1% Club
Gail Kasper's Top 1% Club 
Linkedin Profile
Author #1 Ranked Debt Relief Newsletter
877-766-2465

 

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Many wonder what will be the effect of entering a structured debt relief program going forward. Before we get to the specifics, let me say that if you are looking at any one of these programs it means that you are suffering from debt oppression. So, before anything else, the most important thing you can do is to shake loose from the debt. Why are there so many different types of debt relief programs? Simple. Because everyone is different, and every debt problem is unique.

 Here we go.

If you file a bankruptcy, Ch 7, which is really walking away from the debt and getting a fresh start, right now it will take two to three years before you can re-qualify for a mortgage.

If you want to purchase a car, you can almost do it immediately, depending on who you are dealing with.

 If you do a short sale, the same rules as above apply. As an important note, there is now talk of shortening the waiting time and making it easier. For buying a car,same as above.

 What about applying for that emergency credit card? You will begin to get credit card offers usually within 6 months of the event. They will be at a high interest rate, so tread carefully.

 What about if you enter a debt settlement program? Chances are good that your credit is already negatively effected if you are entering a settlement program. As the debts are settled, your credit profile will begin to change.

If you are in a 4 year program that does not mean it will take 4 years to regain good credit. As each settlement is made there will slowly be an improvement.

 You also need to know that credit restoration programs work. They can legally eliminate the negatives on your credit report in many cases.

 If you are reading this and you need free counseling to help you decide what to do to eliminate your debt, here are phone numbers you can call for absolutely free debt relief advice.

 Free Credit Counseling---       877-766-2465

Student Loan Consolidation---877-766-2465

Free Ch-7 Bankruptcy Counseling-- 516-204-4640 (National Number)

Credit Restoration Counseling-888-586-2661 Inc.FREE  Credit Report Review

Each of these numbers provides Free Counseling.

 

Yours Truly

Steven Ciantro
Consumer Advocate
American Debt Enders
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper's Top 1% Club
Gail Kasper's Top 1% Club 
Linkedin Profile
Author #1 Ranked Debt Relief Newsletter
877-766-2465

 

Related articles

What To Do If Your Debt Relief Options Are Limited And You Need A Creative Solution?

Understanding the Wide Range of Cost for Different Debt Relief Programs

Famous Myths About Debt Settlement

Update: Mortgage Debt Relief Act

Banks Getting Less Cooperative In Debt Management Programs, What Does That Mean For Debt Settlement?

As of immediately, Chase bank has gone from being one of the best credit cards to have in a debt management program, to no longer being willing to provide interest relief and payment relief to consumers who are struggling.

 How significant is this. Well, you tell me. Chase was allowing consumers to pay back their credit card balances at a new interest rate of 6% in the program. Of course the credit card had to be closed. But still, 6% when many consumers were struggling with 29.9% was quite a dramatic change in the interest. Chase even had a hardship program in which they gave consumers a new rate of 2%, and a new monthly payment of 1.8% of the current balance. I cannot at this moment tell you exactly why Chase has decided to make the move, but in this new economy they have decided it was a step they needed to take for profitability. Even though I have often written that the banks are not your friend, they are in business to make money.

 So what else is new in these debt relief programs.

Sun Trust Bank also has a new policy, and it is that
Any account that is past due CANNOT be enrolled into the Debt Management Program until 3 consecutive minimum payments are made to bring account up to date. Only then will they be eligible to be enrolled into the program.

 How about the new Fingerhut Credit Card Help Policy:
If a client has ever been dropped from a program the client
will never be eligible to be set up on any Debt Management Program again. Somewhat harsh don’t you think?

 If your credit card is on a promotional interest rate it will not be eligible to be enrolled in a credit card debt relief program until the promotional interest rate expires. So, be very careful about transferring balances. Something I have never been a fan of because it  really just prolongs the debt cycle.

 So, in this ever changing world of the new economy, and rest assured it is a new economy, it is becoming increasingly clear that banks are adjusting to the new regulations and adjusting at the expense of the consumer to regain profitability.

Here is the bottom line. If you are carrying significant debt, now is not a time to sit back and just accept it. You must be proactive to dump your debt. Because who knows how much longer these programs will remain viable.

 Just yesterday I wrote about a new bill being introduced into congress that would allow the Federal government to withhold up to 15% of your salary for any student loans you may owe. These changes are coming fast and furiously, so stop sitting back, now is the time to get your financial house in order. If you can no longer pay the minimums on your credit cards, do not waste your time asking the bank to lower your payments. Before you get deeper into debt, consider debt settlement as an option. This industry is back, with the bad actors thrown out by virtue of the new FTC regulations which have been put into effect in 2011.

 If you would like to talk about the best debt settlement program anywhere, simply visit American Debt Enders. We are rated #3 nationally and without a single complaint, and driven to help you get out of debt.

 You can subscribe to this FREE newsletter, by visiting Free Credit Counseling.

 

Yours Truly

Steven Ciantro
Consumer Advocate
American Debt Enders
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper's Top 1% Club
Gail Kasper's Top 1% Club 
Linkedin Profile
Author #1 Ranked Debt Relief Newsletter
877-766-2465

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What To Do If Your Debt Relief Options Are Limited And You Need A Creative Solution?

 This is the first real article of this new blog devoted to all things debt settlement. And the idea for this article came to me because so many people seeking debt relief have limited options and feel somewhat trapped. Of course working with a good credit counselor always helps because the really good ones who are few and far between have made a calling out of their trade.

 

So, here is the situation that this consumer was confronted with. 25,000.00 dollars of credit card debt on one credit card and not enough money to make the payments. So, her first thought after calling me was to learn more about a debt settlement program.

 The payments would have been manageable but only if the term of the program went five years. Good luck getting a good settlement company to accept one debt for a term of a five year plan, especially when the consumer qualified for a Chapter 7 bankruptcy. I knew this because I sent her for a free telephone bankruptcy consultation. So, it should have been simple you say.

 Well, not so fast. A major complicating issue was that her religious faith would simply not allow her to walk away from the debt, which is why she was interested in settlement, because there she would at least be paying back partially.

 Of course a debt management program was out of the question, as they rarely reduce monthly payments except nominally. So, what to do, what to do? Well, thinking creatively, while a chapter 7 was out of the question, what about a Chapter 13. This is basically a debt settlement with the protection of the courts. The law on a chapter 13 says that the payments made to the trustee over the life of the plan, may not be less that an amount that would be gained in a Chapter 7 liquidation. OK, what that means is the payments in the plan for this consumer would be extremely affordable. Problem solved.

 

If you found this article helpful, please feel free to subscribe to the feed at:
http://freecreditcounselingblog.typepad.com/debt_settlement_program/

 

If you need to settle your debts simply click the previous link.

 

Yours Truly

Steven Ciantro
Consumer Advocate
American Debt Enders
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper's Top 1% Club
Gail Kasper's Top 1% Club 
Linkedin Profile
Author #1 Ranked Debt Relief Newsletter
877-766-2465

 

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Recovering From Bankruptcy, Foreclosure, Short Sale, Debt Settlement

Many wonder what will be the effect of entering a structured debt relief program going forward. Before we get to the specifics, let me say that if you are looking at any one of these programs it means that you are suffering from debt oppression. So, before anything else, the most important thing you can do is to shake loose from the debt. Why are there so many different types of debt relief programs? Simple. Because everyone is different, and every debt problem is unique.

 Here we go.
If you file a bankruptcy, Ch 7, which is really walking away from the debt and getting a fresh start, right now it will take two to three years before you can re-qualify for a mortgage.

If you want to purchase a car, you can almost do it immediately, depending on who you are dealing with.

 If you do a short sale, the same rules as above apply. As an important note, there is now talk of shortening the waiting time and making it easier. For buying a car,same as above.

 What about applying for that emergency credit card? You will begin to get credit card offers usually within 6 months of the event. They will be at a high interest rate, so tread carefully.

 What about if you enter a debt settlement program? Chances are good that your credit is already negatively effected if you are entering a settlement program. As the debts are settled, your credit profile will begin to change.

If you are in a 4 year program that does not mean it will take 4 years to regain good credit. As each settlement is made there will slowly be an improvement.

 You also need to know that credit restoration programs work. They can legally eliminate the negatives on your credit report in many cases.

 If you are reading this and you need free counseling to help you decide what to do to eliminate your debt, here are phone numbers you can call for absolutely free debt relief advice.

 Free Credit Counseling---       877-766-2465

Student Loan Consolidation---877-766-2465

Free Ch-7 Bankruptcy Counseling-- 516-204-4640 (National Number)

Credit Restoration Counseling-888-586-2661 Inc.FREE  Credit Report Review

Each of these numbers provides Free Counseling.

 

Yours Truly

Steven Ciantro
Consumer Advocate
American Debt Enders
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper's Top 1% Club
Gail Kasper's Top 1% Club 
Linkedin Profile
Author #1 Ranked Debt Relief Newsletter
877-766-2465

 

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