Debt Managment - Stumble Forward

Collection Agency Harassment Laws – What Are Your Rights And Responsibilities

February 6, 2012 By Christopher Leave a Comment

Are you being constantly contacted by the debt collection agencies for repaying a particular debt amount? If you’re being subject to threats and abusive language over phone, you should know your rights as a debtor so that you can stop all such activities. Unless you know your rights and responsibilities, you can’t speak a word in your defense.

The FTC or the Federal Trade Commission has passed the FDCPA or the Fair Debt Collection Practices Act to protect the consumers from the clutches of the shady debt collectors. You can either opt for debt settlement or debt consolidation so as to stop the debt collection calls or equip yourself with the right information to defend yourself. There are some particular clauses that you need to keep in mind before interacting with the debt collectors. Read on the concerns of this article in order to know how to tackle such calls.

How To React To The Calls When You Don’t Owe The Debt

If you’re sure you owe nothing to a credit card company and you remember making the payments on time, you shouldn’t ill-behave with the debt collectors as this worsens the entire matter. Speak softly with them and tell them that you don’t owe them the debt that they’re calling you for.

If you have all the papers that can defend you, you should present them before the debt collection agency so that you can defend yourself. Send the copy that proves that you had already repaid the entire debt amount that they’re mentioning on the calls. Be truthful and candid with the debt collector.

FDCPA Violations That You Can Complain Against

As mentioned earlier, the FTC has passed the FDCPA so that this can safeguard the rights and responsibilities of the debtors. But how many of us know what the FDCPA says? Well, most of us have heard the name but have never bothered to know more on it? What does the FDCPA prohibit the debt collectors from doing?

They can’t ask you to pay an amount that is more than what you actually owe.
They can’t call you repeatedly to recuperate the money.
They can’t demand you to pay interest rates and expenses that you’re not supposed to.
They can’t use abusive and profane language while recuperating the money.
They can’t call you after 9 p.m or before 8 a.m.
They can’t illegally inform a third-party agency about your debt.
They can’t ask a third-party agency about your location information.

Whether it’s due to a sudden job loss or a prolonged illness, if you haven’t been able to repay your debts, you should take all the required steps to avoid the accounts to be sold off to the collection agencies. If possible, get help from the debt settlement or consolidation firms so that you can easily stop such calls.

Filed Under: Debt Managment

How To Live A Debt Free Life

November 27, 2011 By Christopher 2 Comments

Are you tired of living a life of debt? Back several years ago I went though a life changing event right before Christmas. I too was living pay check to pay check at that time then something happened, my water softener went out. It was going to cost me a $1000 dollars to fix it.

I was able to cover the cost but it was going to leave me short on cash for Christmas. That year my wife and I struggled with are finances and that’s when I decided I didn’t want to live a life going from one pay check to the next but rather to living a debt free life once and for all.

The Challenges I Faced

From then on my goal was to persevere but their were challenges, the first being knowledge. At that time I knew nothing about how money worked or even the best way to pay off debt. In fact the extent of my knowledge was only good enough to get me by and that was it.

For example, I knew that if I would make my monthly debt payments I could get by but what I didn’t know was that if I would have arranged those debts in the right order and paid them off in a certain way I could have gotten out of debt a lot faster.

The second challenge I faced was my beliefs. If I was going to pay off even just my immediate debts I was going to have to change the way I thought about money. At that time my belief was that I was always going to earn around the same type of income and never earn any more because I didn’t believe I could earn anymore.

Face it, it you can’t see yourself earning more than your current income than how are you going to ever earn more? A lot of people believe you need some big education or to land the right job to make it successful. I know a lot of people who are to smart and still poor and a few people who are not so smart and very well off, so if these people can do it I can too.

Finally, the last challenge I face and still face to this day is change. That might sound odd but it’s true. If your doing something that isn’t the same thing that everyone else is doing people will tend to look differently on you and even criticize you. For example, for most people we all do about the same things, we typically have about the same type of house, drive the same type of car, have the same types of jobs, and even eat the same kinds of foods.

However when you start doing things that deviate from the norm people tend look at you in a different way. In fact some people I know criticized me for the changes I have made in my life to become more successful. The reality is that if you can’t accept change as a part of your life you will never get out of debt or become successful for that fact.

What You Can Do To Live A Debt Free Life

So know that we know the challenges involved on how to live a debt free life you might be wonder what is the next step. So in this section I’m going to show you a few things I’ve done to rid myself of debt and save more money.

The first thing I’ve done is to learn more about how to manage my finances and put a plan together. To do this check out my 8 Step Debt Plan. My plan will walk you through the process of getting your finances in order, building up a saving fund, and paying off your debt.

The second thing I did was embraced the situation. My goal was not to just put my finances in order and forget about them but rather attack my problems head on. By doing this I was able to cut down the majority of my debt in a few short years and and build up a very nice savings as a result.

How did I do this?

I started my own business, this website. I knew if I could supplement my income it would speed up the process and get me out of debt faster. This is where I believe my plan separates me from others. For most of us we tend to do the first option taking care of are finances but then once we get things in order we tend to slack off and before we know it we’re back where we started.

Instead look at supplementing you income. In my case I earn extra income from the internet because it allows me to work from home and do it in my spare time for now. However, you don’t have to do what I’ve necessarily done, it can be anything.

Call To Action

Today I’m much better off as a result. My finances are in order, my immediate debt is paid in full, and I have a very healthy savings plan in place. To get started check out The Stumble Forward 8 Step Debt Plan to living a debt free life.

Finally, what are you doing to live a debt free life? Feel free to share your thoughts, comments, and questions below. Also don’t for get to tweet, and share this with others and spread the word.

Filed Under: Debt Managment

How To Pay Off High Interest Credit Cards Fast

October 5, 2011 By Christopher 2 Comments

Back few years ago I had a lot of credit card debt. In fact it was starting to put a real dent in my finances, at one point I was literly living paycheck to paycheck which were some really scary times my wife and I.

However I was able to pull through with a little know how and persistence, and I can honestly tell you if you apply what I’m about to teach you in this article I will teach how to pay off your credit cards fast.

Tools You Will Need

To start before we dive into the plan you will need some tools to help you along the way. The first tool you could use on how to pay off credit cards fast is the Excel Debt Snowball worksheet offered by Vertex 42. This is a free excel sheet and is what I’m going to be using in this article to explain how to do this.

The second option is use a program called DebtGoal. This is a company that specializes in setting up a debt plan for you but is much more sophisticated. This program cost $12 a month to use and may be well worth your time since it includes real time pay off features and enables you to link your accounts directly to the program. To learn more about this option check out my DebtGoal Review.

Step 1: Enter Your Debts

To start you need to gather all of your credit cards debts and enter them into the chart. It will look something like the picture below.

Once you have the spread sheet up and running simple fill out the columns as follows. Add your creditors name, the balance owed, the current interest rate you are paying, and the minimum payment. Don’t worry about the custom column that will be taken care of automatically.

I should also mention it’s very important that you only put the minimum payment down for each debt. The reason for this is because by making the minimum payment it will allow you to push excess funds towards other debts allowing to focus on one debt at a time.

Step 2: Determine Your Extra Payment

Now that we have are credit cards added to the program we need to determine how much extra to pay towards are debts. One of the fastest ways to pay off credit cards is to pay at least an extra $100 a month towards the program.

To start, if you want to pay of high interest credit cards consider looking at your current budget and see were you can plug some leaky holes. One place I’ve found a lot of extra money being wasted was with credit card fees. In fact one of my creditors was charging me a fee every month for payment insurance. I called them and had it removed.

Secondly, I know times can be tough but one of the best ways to come up with the extra money is by cutting all of your payments down to the minimum payment possible.

Finally, if that’s not a possibility consider finding a part time job. I once new a guy who was looking to earn some extra cash so he took up a paper route. It’s not hard to earn an extra $100 a month if you just take the time to look.

Step 3: Choose Your Plan

Now that we have our extra payment figured out the next step on how to pay off high interest credit cards is to choose the type of plan you want to use to pay off your debt. Their are two basic plans and they are as follows:

Debt Snowball Plan. This plan will pay off your debts starting with the lowest balance first. With this plan you will see the fastest results since you will be paying lower balance debts.

Debt Avalanche Plan. This plan works by paying down debts with the highest interest first. This plan works great if you have a lot of debts with really high interest rates, otherwise I suggest you go with the debt snowball plan.

For this article I’m going to be using the Debt Snowball Plan.

Step 4: Start The Plan

Now that we have all of are debt info in place, the extra payment amount of $100 determined, and the type of plan we want to go with let look at how the plan works.

This plan is very simple, all you have to do is follow the payment plan. In our example below we can see that Merchant Card 1 is the first card to pay off since it has the lowest balance. So you will pay the minimum payment plus a $100 towards this debt until it’s paid off. It will look something like this.

Merchant card 1 payment $25 + The Extra Payment of $100
This would come to a total Payment of $125

Then once the first debt is paid off you will move onto the second debt which is merchant card 3. With this debt you will pay the minimum payment on this card, plus the minimum payment you were paying on merchant card 1, plus the extra payment of $100. It would look something like this.

Merchant Card 1 $25 + Merchant Card 3 $57 + Extra Payment $100
This would be a total payment of $162.

Once the second debt is paid in full rinse and repeat.

Finally, in this plan it shows that if you would follow this plan all the way through you would have your first debt paid off in 3 months and you would pay off your final debt in just over 2 years and only pay $1,789 in interest. Obviously, this would be a lot faster than paying a little money towards each debt.

Step 5: Don’t Add Anymore Debt

Now that the plan is in place on how to pay off credit cards quickly their is a very important guideline you need to follow in order for this plan to come together correctly, and that is not to add anymore debt while working through this plan.

If you continue to add debt towards your credit cards it will only delay you to paying off your debts. So in order to avoid this take all of your credit cards and put them in a place to avoid them. My philosophy has always been out of site out of mind and you won’t have the temptation should it arise.

Are You Ready To Get Out Of Debt

In the end when you consider this plan on how to pay credit cards off fast it carries several benefits. The first being that it will save you a ton in interest payments, secondly it will keep you on track and working towards your goal, and finally it works fast.

To get started download the spread sheet or sign up with DebtGoal and you will be on your way to debt freedom fast. Also feel free to add your thoughts as to how to pay off your credit cards faster and ask any question you might have about this plan.

This post was featured on the Carnival of Personal Finance by Boomer And Echo.

The Best Way To Consolidate Debt

June 18, 2011 By Christopher Leave a Comment

Do you want to consolidate your debt but just don’t know the best way to do it or how to do it for that fact? In today’s post I will show you just how to do this but first before you do so you should consider the benefits.

Benefits

First off, the best way to consolidate debt is to combine your lower interest debt with your higher interest debt, and the best way to do this is with your home mortgage. The reason I suggest your mortgage over any other way is because it gives to big benefits.

Lower Fixed Interest Rate. First it gives you a lower fixed interest rate compared to credit cards. In fact if you have good credit you can get some extremely good rates right now.
Tax Deductions. Secondly, by combining your debt with your mortgage you get the tax deduction on any interest you pay.

Now that we know the best ways to consolidate debts and how this can benefit us let’s get started.

Step 1: Contact Your Lender

The first thing you need to do is contact your lender and let them know about your situation. At this point your lender will be able to see how much debt you have and compare it to how much equity is available in your home.

At this point you’ll be able set your debt consolidation program up in one of two way. First you can do a cash out refinance. This is were you refinance your home loan all together and pull a portion of the equity out of your home in cash to pay off your debts. However if your someone who has a really a good interest rate and you don’t want to lose it you might want to consider the next option.

The second option is to set up a 2nd mortgage. This is also known as a piggy back mortgage that is separate from your first mortgage and carries a different interest rate altogether. With this method you won’t have to risk losing your great rate and the fees a cheaper with a 2nd mortgage as well.

Step 2: Decide How Much Debt To Consolidate

Next once you’ve considered the type of loan program you want to use to consolidate your debts you need to decide how much debt you will be able to pay off.

Depending on the amount of debt that you are carrying you may not be able to pay it all off. At that point you will have to make a decision as to which debts you wish to have paid off. My suggestion is that you pay off anything with high interest rates first such as credit cards. This also happens to be the best way to consolidate credit card debt and avoid paying 25% interest rates as well.

Step 3: Payoff The Debt

The final step to is to start making payments. At this point though you’ll want to see how long your consolidation loan will last. Most loans will last the life of your current mortgage and if you’re at the beginning a 30 year mortgage you won’t want those debts to drag out that long.

Instead pay extra on your debts. By paying extra you’ll pay off your debts sooner and avoid paying all the extra interest as well which huge amount if you make just the minimum payments.

The Down Side

Finally the last thing you should know is that their can be some serious drawbacks to debt consolidation if you don’t do it right. One such issue is the fact that consolidating debt does not get rid of any of your debt. Instead what you are doing is combing all of your debts into one big debt.

On top of that you also risk stacking all of your credit cards full of debt again. However if you load your credit cards full again you now risk even more issues. To stop this from happening you may need to get rid of all your credit cards, and live on a fixed budget. This may be tough for some people but in the end if you want to solve your debt problem the right way you need to stop the issues that are causing it.

Is debt consolidation for you? What is the best ways to consolidate debt? Leave a comment or ask a question and let us know.

Filed Under: Debt Managment Tagged With: best way to consolidate credit card debt, best way to consolidate debt, best way to consolidate debts, best ways to consolidate debt

5 Debt Management Tips To Keep You Out Of The Red

May 11, 2011 By Christopher Leave a Comment

If you are struggling with debts, you may feel alienated and alone but for the sake of consolation know that you are certainly not alone!

In fact, lots of people the world over are living with debt, and this could be anything as simple as a student loan right through to a mortgage (home) loan. Acquiring debt is not actually a bad thing – it’s managing that requires the sensible approach.

In this article we are going to look at 5 tips which will help you to manage your debt situation, keeping you free from spiralling debts and helping you to stay in control of your money – and not the other way round!

Keep An Eye On Interest Rates

If you are using a credit card intensely, you may not be aware that interest rates can fluctuate from time to time. To win over new customers, many banks are allowing you to switch your credit card over to them, and in return they offer a cheaper interest rate. Some banks even offer zero fixed interest rate for the first 6 months as a way of welcoming you on board.

Credit cards are a great way to buy large purchases with added security and cover that you won’t find using a debit card; they also help to improve your overall credit rating – only if you manage your credit card payment well though!

Switch Service Providers

As we are still in the midst of a deep recession, banks are not the only companies trying to win new business. Energy providers also want you to switch over to them and to tempt you they promise to undercut your current provider.

This could be a great way of managing your debt situation because it helps to cut down your monthly outgoings. Have a look around to see what gas, electricity and water rates you could be getting. In fact I recently switched to a different natural gas provider and not only did I get a lower rate but I also have a cap on my price.

Set A Weekly Budget

First of all you need to know exactly what you are spending and where the money is going. Look at your bank statements over the last 3 months and work out how much you spend on average. Disregard the more luxurious purchases such as new clothes and meals out, and set a figure for each month that you will not go above.

Work your debt payments into this to ensure that they are paid on time, every month.

Consolidate your debt

This is something you should not go into lightly – consider the consolidation of your existing outgoing debts for easier management. This will involve borrowing a large sum of money from a company which they will use to pay off your debts. So instead of paying back four or five lenders, you pay the company a single monthly standing order.

Obviously these companies are looking to make money so there will be an interest rate or fee to consider but, generally, managing your debts under one roof is a lot simpler than paying multiple lenders at varying times of the month.

Just Spend Less

We touched on this on point #3 and it might seem obvious; but just spend less money. I would wager that if you look at your monthly statements you could easily identify a few frivolous purchases. Next time you are faced with spending money when you don’t need to, consider your current financial situation and make the right choice.

If you find yourself needing to borrow money in the short term, take a look at Logbook Credit – your source for logbook loans.

Filed Under: Debt Managment Tagged With: debt management tip, debt management tips, debt relief management tips, tips on debt management

Can A Do It Yourself Debt Settlement Work?

April 14, 2011 By Christopher Leave a Comment

When you have $60,000 of credit card debt and you can barely afford the payments, all you can think of is a way out. You don’t want to file bankruptcy, because of the long-lasting consequences. Other debt relief strategies, like credit counseling and debt consolidation may not work for you because you don’t qualify or because you can’t afford time. Do it yourself debt settlement is a much-neglected solution, but one that could work for you.

Here’s how DIY debt settlement works: you would get your creditors to accept around $30K on your $60K of debt. The credit card issuers cancel the rest of the debt. The slate is clean and you’re completely debt-free (unless you have mortgage or student loan debt that’s more difficult to settle).

There are several steps, and maybe a few years, in between you and debt freedom. This do it yourself debt settlement guide will help you understand what you need to do to settle your debts.

Consequences of Debt Settlement

Before you decide to go through with debt settlement, you should know there are some negative side-effects to the strategy. First, your credit score will suffer. Your credit card payments have to fall behind before your creditors will accept a settlement and those late payments will affect your credit score. Once you’ve settled your debts, you can focus on rebuilding your credit score. Second, you’ll have to negotiate your settlements, but many of your creditors may actually approach you with settlement offers. Finally, you may owe taxes on the debt that’s cancelled unless you’re insolvent at the time you settlement. That means the total amount of your debts is greater than the value of your assets.

Get the Money for Your Settlements

Once your creditors agree to a settlement amount, you must be ready to pay the money. While some creditors will accept settlements in 2 or 3 payments, many of them want the money upfront. So, it’s best to be prepared to pay the entire settlement at one time. You can always make multiple payments if the creditor agrees to it.

Coming up with the money for settlements isn’t always easy. If you don’t have access to liquid assets that are at least half the amount of your debt, then you’ll have to save up for your settlements. A debt settlement firm usually opens up a new account for your settlement saving and you can do the same to keep yourself more disciplined. You can save the money you’re currently paying toward your credit cards – you’ll have to stop paying them each month to convince your creditors you need to settle your debts because you’re strapped for cash.

Make a Settlement Offer

When your accounts are at least 90 days past due and you have enough money to settle an account, then you’re ready to make an offer to at least one of your creditors. Offering a settlement is much like any other negotiation. You put the offer on the table and wait for the creditor to respond.

Creditors may try to push you to pay in full or sign up for a hardship payment plan. However, you have to insist that you can’t afford to pay more than what you’re offering and your finances are not in a shape to commit to a payment plan. Don’t mention that you’ve been saving up for a settlement offer or tell them that you have more money in your settlement account that you’ve set aside for other creditors. Let your creditors believe that what you’re offering is all you have.

When your creditor agrees to a settlement amount, get the offer in writing on company letterhead, before you send payment. Once you make the settlement payment, check your credit report to make sure the account balance is $0. Repeat the process for all your debts until you’ve settled them all.

Do it yourself debt settlement options are much better than the option of working with a settlement firm because you control the settlement and you don’t have to pay thousands of dollars in fees.

This is a guest post by Frank Collins. Frank is a personal finance writer who specialized on topics related to loans, saving and debt relief options like debt settlement.

Filed Under: Debt Managment Tagged With: diy debt settlement, do it yourself debt settlement, do it yourself debt settlement guide, do it yourself debt settlement options

How Does Debt Consolidation Work: A Guide For Beginners

March 9, 2011 By Christopher 4 Comments

Do you have a lot of debt? You have been looking for answers to solve your debt issues such debt relief programs like Curadebt or credit counseling but their is another option you can try, debt consolidation.

In this article I’m going to cover the basics as to how does debt consolidation works, give you some the benefits and negatives, as well show you how to get started. With that said let’s jump right in.

How Debt Consolidation Works

First off, debt consolidation is the process of combining all of your debts into one specific place. For example, let’s say you have 3 credit cards totaling $5000 in debt and you transfer all of that debt to a new credit card with a lower interest rate.

Now you might be wondering what would the benefit in doing something like this? The truth is by combining your debts your not reducing the total amount of debt that you owe but rather for another benefit such as reducing your interest rate or receiving a tax deduction. Their are several ways to consolidate your debt here are 4 options that I know of. If you know of another way leave a comment below.

Using A 0% Credit Card

The first option to setting up a debt consolidation plan is using a 0% interest credit card. If you have a ton of debt on other credit cards you could open a 0% credit card and combine all the debt to one card.

This option is a good way to cut interest down big time however their are a few downsides to this option. First, if you have to much debt with credit cards you may not be able to move all the debt to one card, however if this is an issue just move the debt from the cards with the highest interest rates.

Secondly, most zero percent credit cards will only give you the benefit of carring 0% interest on your debt for 6 to 12 months, however you can pay your debt off in this time it might not be a bad way to go after all.

Finally, I don’t want to play devils advocate but you have to consider the worse possible scenario. If you ended up loading all of your credit cards up with debt again you would be worse off than before, however if your good and managing your debt it may not be a big concern.

Using The Cash Out Refinance

The next option you can use to cut down debt is to do a cash out refinance. This option allows you to refinance your home and take a portion of the equity out in cash. In most cases lenders will allow you to take 90% to 95% of the equity out of your home in a cash out refinance.

I used this option a few years ago to help pay for some remodeling I was doing on my home at the time. The benefit to this option is that you will be able to reduce your debt to a lower fixed interest rate, and second you will also be able to get a tax deduction on any interest paid since the debt has been combined with your home mortgage.

However their are a few down sides with this option as well. First, be aware of predator lenders. Some lenders may be able to offer you a cash out refinance for more than the loan is worth. The problem with this is that the tax deduction benefit would no longer apply on any debt that is over 100% loan to value. On top of that if you plan to sell your home in the near future you will not be allowed to carry a balance more than 100% of the loan to value and will be required to pay that portion off in order to sell.

Using A Second Mortgage

The next option is a second mortgage. A second mortgage is a subordinate mortgage to the main home mortgage. The reason someone might want use a second over a cash out refinance is because the terms of their current mortgage may be so good that they don’t want to give them up. For example maybe you have a really good interest rate.

However their are also some disadvantages to this option as well. First, getting a second mortgage also depends on how much equity you have in your home. If you don’t have much equity this option may not work for you.

Finally, a second mortgage also allows you to enjoy the tax benefit options that come with it as well as a fixed lower interest rate, in fact of all the options to consolidate your debt I recommend this one the most.

Using A Social Lender

Finally, the last option is a new one most people have not heard of, social lending. Social lending is the process were lenders and barrows can meet in a common place to lend money to others. One of the biggest social lenders around is Lending Club.

Lending Club can lend you up to $35,000. The big benefit to this option is that getting approved is a lot easier versus traditional methods. On top of that interest rates are fixed and will range from anywhere around 7% for good credit to as high as 25% for less than perfect credit.

However, one big disadvantage to this option is you don’t get any tax break as you do with the last two options. If you would like to learn more about this option read my article about Lending Club.

Final Thoughts…

Debt consolidation can be a viable way to cut down debt big time, however I suggest you contact your local lender to discuss possible options that may be available to you. So what do you think, is debt consolidation right for you?

Questions or Comments? You know what to do.

Filed Under: Debt Managment Tagged With: debt consolidation how does it work, how debt consolidation works, how does debt consolidation work

3 Reasons Debtmerica Relief Is A Legit Company

January 6, 2011 By Christopher Leave a Comment

If you’ve reached this page your probably wondering if Debtmerica Relief is a scam or a real legit company. First off, I can tell you that their is no Debtmerica Relief Scam and in this article I’m going to show you why they are a legit company after all.

The Typical Credentials

When your considering a debt relief company you should look to see if they are D&B listed and TASC rated. D&B and The Association of Settlement Companies work to fulfill certain standards that must be met in order to listed with these organizations.

These are things like having good debt practices and treating customers fairly. If these things are not met and you don’t see the symbols to your right then stay away from these companies. If they don’t have these credentials theirs probably reason for that.

Contact Info

The next thing you need to look for is contact information, and I’m not just talking about a sign up form either. For example when you go to Debtmerica.com you will see their phone number is prominently displayed at the top of their website.

On top of that they also have a contact page displaying a contact form as well, but they also go one step further to give their address and complete business hours. If the debt company you are looking at does not have these things stay away. Here is their current contact info.

Phone: 1-800-470-8155

Mail: Debtmerica LLC, Attn: Customer Care, 3100 S. Habor Blvd., Suite 250, Santa Ana, CA 92704

Business Hours: 7 am to 7pm PST Monday to Friday and 9 am to 2 pm PST Saturday.

Industry Praise

Finally, you need to look for some sort of industry praise, meaning what is the media saying about this company. Now before I go any further know that a lot of debt relief sites will give testimonials and those are good but anybody can fake a bunch of testimonials. Instead look for media credibility.

For example, Debtmerica is listed in Inc. Magazine top 500 and as of 2010 currently rank 184th. On top of that they also rank as the 13th fastest growing company in financial services, with nearly $23 million in revenue in 2009. These are fairly prestigious awards and can not be faked.

What Could Make Debtmerica Better

Finally, to wrap things up I feel Debtmerica is a stable and legitimate company but I do feel they could still improve what they have. One suggestion I feel they could improve upon is if they offered some sort of a guarantee.

For example companies like Curadebt have a 100% money back guarantee if your not satisfied for any reason. I feel with something like this it would give people a sense of security if things didn’t work out as planned.

Thoughts or comments, share them below.

Filed Under: Debt Managment Tagged With: Debtmerica, Debtmerica Relief, Debtmerica Relief Scam, is debtmerica legit

3 Things To Look For In A Good Debt Relief Company

January 5, 2011 By Christopher Leave a Comment

If you’ve been surfing the web for anytime looking for a debt relief program to help you get out of debt you may have realized that many if not most have been tagged as scams. The reality is some of them are scams, and some are not but tagged that way such as the Debtmerica Relief Scam. So in this article I thought I would take the time to share with you a few things you should look for in a good negotiation company.

The Qualifications

First off, when your considering a debt negotiation company you have to realize that their will be some qualifications involved. These qualifications are not their to detour you but rather protect you. The thing about debt negotiation is that it’s not simple and easy, in fact it’s usually hard and challenging.

Their are usually two big qualifications you need to meet in order to qualify. First you have to meet a certain debt level. With companies like Debtmerica and Curadebt you have to have a minimum of $10,000 of unsecured debt to even qualify.

Secondly, you will need to meet the hardship challenge. How do you know if you are facing a hardship? Think of it this way if your credit is completely in the gutter and you have no money to pay your current bills you may be able to qualify. If you don’t meet these two qualifications you would be much better off working with a debt counselor or even tackling the issue on your own.

The Discharge

The next thing you need to look for in a good debt relief company is how they discharge your debt. When you sign up for a debt negotiation program the first thing they will do is gather all of your debts, assuming you qualify, and contact your creditors to see if they can negotiate a lower balance for your debt.

However the problem with this is that most creditors will report this as a negative mark on your credit score, usually as pay for delete, or as paid as agreed. With a good debt negotiation company they will work to make sure that this doesn’t happen and get it reported as paid in full on your credit.

The Fees

Finally, the last thing you need to look at when considering a debt relief company is the fees. First off consider how much they are charging. Some companies will charge a separate fee upfront just to get started and then charge a back end fee along with your monthly payments. I suggest you stay away from companies who ask for payments up front and only pay when results are delivered.

The most common fee you will see with debt negotiation companies is a back end fee that is charged in association with you monthly debt payment. This fee can run around 15% to 17% of the total amount of debt placed in the program, any higher and it’s a rip off.

In the end follow the tips I’ve covered and you will save yourself a ton of time and money.

Questions? Leave a comment below.

Filed Under: Debt Managment Tagged With: CuraDebt, Debtmerica, Debtmerica Relief, Debtmerica Relief Scam, Good Debt Relief Company

Why Debtmerica Relief Only Deals With Unsecured Debt

January 4, 2011 By Christopher Leave a Comment

If you’ve been considering the idea of working with a debt relief company such as Debtmerica Relief you may have learned one important fact that Debtmerica and every other debt company out there will only work with unsecured debt only.

Secured Or Unsecured

So what is unsecured debt you might be wondering? Unsecured debts are debts that are not backed by an asset of any kind. For example, if you own a credit card this debt is not backed by an asset of any kind but rather by the good faith of your credit and that you will make the payments back on time.

On the other hand if you also have secured debts such as a mortgage or a car loan your debt is backed up by an asset of some kind. For example, with a mortgage your asset is your home or if you have an car loan the asset is the vehicle, and if you fail to make these payments the lender will take your home or car away. This is why debt relief companies only deal with unsecured debts.

The Other Secret Debt Companies Don’t Tell You

Now you might be saying as long as I have the money to pay my debts I will pay them, but their is one other secret you need to know about debt companies and that is that you’re not in charge of paying off your debts the debt relief company is.

That’s right when you join a debt relief program such as Debtmerica they will assume the responsibility of paying your creditors anyway they see fit. You will as a result end up paying the debt company a lump payment every month and they will then disburse the payments to you creditors but it doesn’t always work this way.

First off, most debt companies but not all will usually claim their fees up front with your monthly payment. For example if you owe $1700 in fees for the use of the debt relief program they will usually pay themselves upfront. The reason they do this is because of the high drop out rate with debt programs.

The second reason debt companies will not pay your creditors up front is because they want to strain the relationship between you and the creditor in order get a better deal. For example, if you go to your creditor and tell them you want to negotiate a debt settlement but you’ve made all payments on time they probably won’t do it, but if you’ve been struggling to make a payment for several months the debt company may be more willing to accept an offer since you can’t afford to pay in full.

Is this an ethical tactic for debt companies , no, but it’s not illegal either. This is why you may have seen people claiming their is a Debtmerica Relief Scam or other companies for that fact.

The Issue That Debt Companies Don’t Solve

In the end as I wrap up this article consider this. If debt relief companies only work with unsecured debt and not secured debts will it really solve all of your debt problems. Meaning if they can only clear up some of your debt and not all of it, is it really worth the time and effort of using a debt negotiation company such as Debtmerica?

Question? Feel free to leave a comment below.

Filed Under: Debt Managment Tagged With: Debtmerica, Debtmerica Relief, Debtmerica Relief Scam

Chapter 13 Bankruptcy Rules: 10 Rules You Will Want To Know Before You File

September 27, 2010 By Christopher 1 Comment

Filing for a chapter 13 bankruptcy can be very complicated. In fact the chapter 13 bankruptcy rules change on an annual basis. Chapter 13 bankruptcy is known as the wage earners bankruptcy plan since it gives people who earn a regular paycheck to put together a plan and pay off their debts. However the rules for a chapter 13 bankruptcy can be a bit confusing and in this article I’m going to cover 10 different rules you will want to know about before you file.

Who Can File

The first thing you need to know about the chapter 13 bankruptcy rules is that not just anyone can file for this. First off, only an individual or a self employed person can file for this type of bankruptcy. This means that corporations or partnerships cannot file using a chapter 13.

How Much Debt Do You Have

Next in order to file you cannot have to much debt. Under the rules on chapter 13 bankruptcy you cannot have more than $360,475 of unsecured debt. These would be debts like credit cards, medical bills, or anything that is not backed by a physical asset.

As far as secured debts go you are not allowed to file with more than $1,081,400. These would be debts that are backed by a physical asset like you mortgage or car loan. Also know that these number can change over time and are based off of the consumer priced index.

Did You Attend Credit Counseling Classes

In order to file for bankruptcy the law now states that you must attend certified credit counseling classes either one on one or in a group session. This can only be done 180 days prior to filing for bankruptcy or it won’t count and you will have to see another credit counselor.

The 180 Day Rule

The fourth chapter 13 bankruptcy rule you need to know about is the 180 day rule. This rule states that you cannot file for bankruptcy in the preceding 180 days if you failed to show for court in a previous bankruptcy hearing, comply with court orders, or if you were dismissed because one of the creditors was filing bankruptcy to recover an asset from you such as your home or car.

No More Debt Allowed

Next once you have filed for bankruptcy and the repayment plan has been filed you will no longer be allowed to acquire more debt to your name until the payment plan is complete. In fact you will not be allowed to get a car loan, or even a home loan. If you do somehow acquire more debt it could be a breach of the bankruptcy plan.

How Funds Will Be Paid

Next payments will be deducted through your payroll at your place of work and given to the bankruptcy trustee who will then disburse the fund accordingly. If you fail to comply with the courts it could dismiss the case and they could file to liquidate your assets.

You Must Make Home Payments On Time

One benefit to a chapter 13 bankruptcy is that you could use it as a way to stop home foreclosure. However if you’re thinking you will get away with paying less on you home by going this route think again. In order to avoid foreclosure completely you will have to still make the monthly payments as written in the repayment plan or you will still be at risk to losing your home.

How Much Time You Have To Pay Up

Eighth, when it comes to paying you bankruptcy debts you will only have a certain amount of time to pay it back. If you earn less than the states medium income you will have to pay your debts back in 3 years or less. If you earn more than the states medium income you will have to pay the debts back in 5 years or less. However no plan shall last longer than 5 years.

Court Charges

Ninth, in order to file for bankruptcy you will have to pay a fee that goes to the courts. The first fee is a case filing fee that will cost $235 and the second fee is a $39 miscellaneous administrative fee, totaling all together $274. These fees can be paid in 4 installment payments and can take no longer than 120 days, however you can file an extension for an additional 60 days in some cases.

Repayment Plan Guidelines

Finally, the last chapter 13 bankruptcy rule that you should know about is the repayment guidelines. Under the current bankruptcy rules you must file a repayment plan within the first 15 days when filing for a chapter 13 bankruptcy. Depending on the persons situation they may grant an extension if necessary.

Finally, to close this article these are only just a few of the rules that go along with the chapter 13 bankruptcy rules. To learn more about this option contact your attorney and they will be able to give you more information.

Filed Under: Debt Managment Tagged With: chapter 13 bankruptcy rule, chapter 13 bankruptcy rules, rules for a chapter 13 bankruptcy, rules on chapter 13 bankruptcy