Warning: Debt settlement may well leave you deeper in debt than you were when you started. Most debt settlement companies will ask you to stop paying your debts in order to get creditors to negotiate and to collect the funds required for a settlement. This can have a negative effect on your credit score and may result in the creditor or debt collector filing a lawsuit while you are collecting settlement funds. And if you stop making payments on a credit card, late fees and interest will be added to the debt each month. If you exceed your credit limit, additional fees and charges may apply. This can cause your original debt to increase.
A process of negotiation will occur between your debt consolidation agency and your lenders. Many reputable debt agencies will have considerable negotiating power with your lenders and will be able to help you in both the short and long term. There is no guarantee, however, that the negotiation will be successful. Lenders do not have to accept reduced repayments or altered terms.
In my debt relief practice I am coming across more and more consumers who have used National Debt Relief to help them manage their debts and negotiate settlements on their behalf, only to regret the decision to sign up with National Debt Relief at a later date.  With that said National Debt Relief is licensed in the State of Washington and appears to be complying with the Washington Debt Adjusters Act under RCW 18.28 which requires debt adjustors to charge no up front fee’s and limit their fees to 15% of the total debt listed on the signed contract which includes payments for any third party trust accounts used for holding client funds and making disbursements.  If a consumer decides to cancel services with National Debt relief and debts are not settled, any funds in a third party trust account must be refunded.  Consumers should know that attorneys such as Symmes Law Group, PLLC are exempt from the Washington Debt Adjustors Act and do not need to meet its requirements as attorneys are not considered debt adjustors.
Such a scam, they make you believe they’re helping you but in reality they are ripping you off. They are charging you for something you can do on your own. There is nothing special about this company, please don’t waste your time and money. Wish someone told me this before I signed up. I never write reviews but I feel so strongly about this that I had to try to stop someone else from making the same mistake and sign up with National Debt Relief.
Personal loans. Personal loans are another solution to refinance debt. You can take out a personal loan to repay credit card debt, medical debt, payday loans, or other types of high-interest debt. Many personal lenders do forbid you from using the proceeds of your loan to repay student debt, but otherwise you have almost endless flexibility in what you can use the borrowed money for. 

The potential to be sued for debts due to non payment is what causes consumers to reach out to a debt settlement attorney to learn further about their options. In my experience consumers typically accuse National Debt Relief of not settling their debts in time to avoid the lawsuit or not informing them that they could be sued on the debts when it all could have been avoided in the first place had the consumer talked to a debt relief attorney from the beginning of their financial problems.


Debt settlement. Debt settlement programs typically are offered by for-profit companies, and involve them negotiating with your creditors to allow you to pay a "settlement" to resolve your debt — a lump sum that is less than the full amount that you owe. To make that lump sum payment, the program asks that you set aside a specific amount of money every month in savings. Debt settlement companies usually ask that you transfer this amount every month into an escrow-like account to accumulate enough savings to pay off any settlement that is eventually reached. Further, these programs often encourage or instruct their clients to stop making any monthly payments to their creditors.

If you don’t own your home or if you don’t have much equity you might be able to get and unsecured or personal loan. If you were able to get this type of loan you would probably still have a lower monthly payment but not as low a one as with a home equity loan or HELOC because you would not be offering anything as collateral to offset your lender’s risk. The upside of these types of loans is that you would be rid of all those angry creditors or debt collection agencies that have been harassing you. The downside is that you would have a much longer term than if you were to simply repay your debts as a HELOC can be for seven or even 10 years and a home equity loan might be for 30 years. In either case you will end up paying more interest over the long run than if you were to just repay your debts short-term. And you would need to be very careful to not take on any new debt or you could end up back where you started – struggling to make your payments.

so to ease my stress, which ironically is a major component in my disabiiity, after I fill out their financial affidavit, I am assuming I won’t have to worry about them pounding on my door and taking our furniture? My 2013 tax statement Chase bank had sent me a 1099 C for over 20000 – with that when the acct tallied…..he still came out with an insolvency of over 49000 – this all happened rather fast as was not aware my depression also created a bipolar II disorder which is how I accumulated so much debt in such a short time – termed as “manic sprees” – to think I once was a high risk collector and i heard this term at least 2x a day and did not believe……..what is that they say about what goes around? Statute of Limitations with no signed agreement in Fl is 4 yrs..last time I had paid the “creditor” on this one was Nov 2011 – however I see another sitting in collections from Portfolio that says last py was 3/2011 and another from Unifund where lst pymnt was feb 2011 – statute expired…..would I call Transunion?


Not all consumers are able to complete debt relief programs for various reasons, including their ability to save sufficient funds. The use of debt resolution services could negatively impact your credit and may result in legal action on the part of creditors or collectors for unpaid balances. Consumers enrolled in debt consolidation programs who fail to adhere to the terms of their debt management plan (DMP) may forfeit the benefits of debt relief and revert to the terms of their original creditor agreements. Read and understand all program materials prior to enrollment. Please contact a debt relief specialist for complete program details.
A credit counselor is a professional who can advise you on how to handle and successfully pay off your debt. A simple call to a credit counseling agency for a consultation won’t impact your credit in the slightest. But if the credit counselor or agency enrolls you in any kind of consolidation, repayment, or management plan, that could affect your credit.
I have a rental duplex and it is underwater, owe about 85,000 worth about half that much. At 65 I am thinking about walking away because it is getting too costly to maintain. Detroit is in crisis and I don’t feel safe going there for rents. I spoke to my mortgage company and they stated they couldn’t help me under the President new laws for rental property. I am concern about my credit if I walk away, even at my age. When you are not rich you need good credit.
Don’t be afraid to have many budget categories. It will help you have a greater understanding of where things are going. Some regular expenses include internet, cell phone, household goods, medical costs, pets, haircuts, car repair, and home repair. Not every item will have an expense every month, but by setting some money aside for those irregular expenses, you’ll be ready when they hit.

Consolidating student loan debt can also make it possible to get more borrower protections. For example, while Parent PLUS loans aren't eligible for income-based repayment, when these loans are consolidated under the Direct Loan program, they can become eligible. Income-driven repayment programs can result in a lower monthly payment and open up the door to loan forgiveness after a sufficient number of payments are made. 


If debt management doesn’t seem quite right for your situation, there are several other debt relief options. I start with the least drastic option, credit counseling, and end with what most may agree is the most drastic: bankruptcy. Of course, all of these methods have their own pros and cons, and only you can decide whether they are better or worse for your situation.

Another survey conducted by the Harris Poll on behalf of the American Institute of Certified Public Accountants (AICPA) showed that 56% of Americans with debt admitted that it negatively impacted their lives. Twenty-eight percent of the 1,004 American adults surveyed said their debt caused stress about their everyday financial decisions, and 21% said it caused tension with their partner.
The interest rate of your loans has no effect on your credit. You will pay off the loans quicker if you concentrate on the high-interest rate loans and as a result your credit utilization ratio will go down which will improve your credit, but you could achieve a lower credit utilization by paying off the loans with the lower interest rate as well so your statement is misleading.
The Chase Slate card, on the other hand, doesn’t charge a balance transfer fee for the first 60 days. Further, the card offers a 0% introductory APR on balance transfers and purchases for the first 15 months. If you have a credit card balance you could feasibly pay off during that time frame, transferring the balance to a 0% introductory APR card like this one could save you money on interest while simultaneously helping you pay down debt faster.
If you’re not sure where to start, track your spending for at least a day to see if you’re getting enough value from the things you buy. Just write it down as you spend and see how you feel. You’ll probably be amazed that you begin making changes immediately, cutting out the things that don’t really matter to you and getting more of the things that do instead.
When it comes to paying off credit card debt, many consumers take the path of least resistance: the so-called "minimum payment plan." By law, credit card issuers are required to set a minimum monthly payment amount for each cardholder. These payments are calculated on the basis of the cardholder's total balance, interest rate and certain other factors.
Portfolio Recovery just got a judgment against me for 10000 – it was a motion for summary judgment and it was pre determined before I got to say anything..no mediation was offered…..I am on 100 percent disability and only work about 12 hrs per wk so they cannot touch my earnings either – I am co owner of house in Fl but we have homestead…..I will be 60, husband is 66 — so exactly what do they hope in getting this judgment? The alleged debt was in my name alone..
It could also help to reach out to a debt counselor or financial planner to take steps toward getting your finances in order, or at least developing a game plan for getting back on track, McClanahan said. “If the debt is beyond your means, you might also want to explore bankruptcy or whatever it might take to turn your situation around,” she said. A professional can help you weigh the pros and cons of different options.
I have my creditors calling me 30 times a day threatening me. And every single one of them told me that it never heard from Clear one advantage when I emailed clear one Advantage for documentation of each time they contacted my creditors, that their website it says “In Negotiations” they have to have some kind of documentation of each time that they called or emailed or mailed something to my creditors and I wanted copies. I received an email back from them saying they didn’t have any documentation.
Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Pay more than the minimum on your accounts. See examples of how you can save thousands of dollars in interest costs and potentially late fees by paying more than the minimum balance on your credit cards. This is arguably one of the best ways to reduce your debts over a reasonable period of time, and it works for credit cards, medical bills, car loans, and really anything. You need to start with your higher interest rate commitments first. Find the benefits of making more than minimum payments.


InCharge Debt Solutions boasts one of the most polished websites of the companies I evaluated. The company’s debt management FAQs and financial education resources are very thorough. They are clear about fees ($50 to enroll and $49 monthly). They are also among the few companies that give you an idea of how much your interest rates might drop under a debt management plan (6% to 9%). InCharge is accredited by the BBB with A+ rating; other certifications include the NFCC and COA.

The second thing that you can do is trim your expenses. Go over each line item on your budget and ask yourself, “how can I make this number smaller?” It may involve cancelling services that you rarely use like a gym membership, Netflix subscription, etc. It might even involve reducing the amount of times that you eat out at restaurants each month. The amount that you slash depends upon your commitment level to getting out of debt.  The more committed you are, the easier it will be for you to give up some of the unnecessary amenities in life. You might not even need to sacrifice much if you can find these items or services for less. Check out Clark’s Free and Cheap List to help you with this process.
It might be painful to learn the truth but you have to bite the bullet. Then you’ll see that it’s not hard to end this bad habit. In fact, you can get the credit card companies to help you. Just look at the back of your credit cards for their number, call them, and ask them for the amount of debt you owe, the APR, and the monthly minimum payment on the card.

The non-profits are a great place to call for access to various services, including credit, budget, debt, and general financial counseling. After applying, a certified, highly trained counselor will explore with you all of the options available that can help you get back on track with paying various bills you may be responsible for making. Assistance will be offered in various languages, including Spanish. They help with home loans, credit card, and medical debts among other needs. Also receive assistance in eliminating or consolidating payday loans.


Let’s be real: Kids grow out of clothes at the speed of light. It’s not worth it to go into debt for your two-year-old’s wardrobe. Check out consignment stores that sell pre-loved outfits in good condition. If you’d rather shop online, no problem. Sites like thredUP and Swap.com are great resources to get adult and children’s clothing at a fraction of the cost.

There isn’t an easy and quick way to get out of debt. You have to discipline yourself daily and to be consistently financially responsible for months or even years. If you need help with paying off your different debts, you can go to a debt consolidation company, and try to apply for a debt consolidation loan. You have to know, however, that you’ll have to spend a bit of money on fees.


If you're interested in starting a debt management plan, you'll first need to find a credit counselor. The Federal Trade Commission recommends you never agree to any debt management plan until a reputable credit counselor has thoroughly reviewed your financial situation with you. The U.S. Department of Justice maintains a state-by-state list of approved credit counseling agencies, so you can search for someone near you.
A debt management plan sets up a payment schedule for you to repay your debts, with the goal of helping creditors receive the money owed to them and ultimately improving your financial and credit standing. By voluntary agreement, you deposit funds with your credit counseling agency each month, who sends those funds directly to your creditors. It usually takes 3-5 years to complete payments under a debt management program, after which you may be able to reestablish credit.
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