Reduce the payment of 50% - you've seen the ads. Are certainly tempting especially when you are buried under a mountain of debt. But you should do? What's this all about?
You are talking about debt negotiation or debt settlement procedures. The company is debt trading right for you? What are the advantages and disadvantages of debt?
Many readers have commented on the negotiation of the debt. What follows is therefore by many volunteers and with permission. Contentis intentionally both for and against the nature of these comments to provide guidance for the negotiation and settlement of those who have already tried the solution of the debt is based.
CAUTION
But first with the comments of those who were there, I feel compelled to offer warnings about the debt negotiation or debt settlement procedures. One of the ongoing ad campaigns facilitation of a vibrant young woman that sooooooo in peace, because her agency to eliminate 60% of their credit card debt. I am not a loanCard Industry fan, but some questions are seriously missing from the display.
First, we consider as a creditor. What would you fail to draw the full amount of the original debt to accept. The temptation only thing I can think of is that if the lender is convinced he / she gets nothing. The only way that a strong argument to do is stop making the payment for several months. In other words, bin debtor's credit history.
Secondly, it may be due to income tax on debt forgiven.Any amortization of $ 600 or more income to you, the consumer. The creditor that you and the IRS form, please send a 1099-C will be assigned at the end of the fiscal year and the amount of additional revenue by the IRS.
Thirdly, there is no guarantee that the debt is not forgiven back to later years. There is the possibility of full payment may still be expected in the future.
Finally, unless agreed with the plaintiff to include any negative comment on your credit report,remains for 7 years.
Comments from other
Sound Advice to all those who use the services of debt management
Anyone who wants to avoid the use of 3-Party for their finances should check with the BBB and state Attorney General's Office of Consumer Protection Services have deceived the people have about the impact of service on credit ratings, and that rates are for the possibility of legal action by creditors. In a program of debt management,E 'for the important people know that their credit is concerned, will have a .... negative for some banks and 'important to know the rates. There are: a monthly fee ... a number of expedition ... a penalty for leaving the program? Where these fees? Not original, non-profit organizations should be compulsory expenditure.
The last thing that should be emphasized that the creditors will take legal action against the debtor, even if you use a debt management service ...."
Solution is not the same as in chapter13.
"... But there are real differences: first, the solution is not a public document. Your credit record is not public. There is no record in the court of Justice to show that they have settled the bills. However, the Bankruptcy is public record record. Second, if you reply to regulate, "No" to the question: "Have you ever declared bankruptcy?"
You really very delinquent on your payments.
"Not every call has gone straight. About 50% would accept my offer. Someshould solicit. Some, I reported the failure. Some wanted to know the reason for my situation. Have not always been honest with them, they never had to verify what I said two times.
"But I would seriously think that closes at 6 months are not criminals. Note, however, that if the credit is good now, do not follow this kind of Late. In my personal situation, my score was so low that they shot only several thousand dollars of my guilt.
"Bewilling to haggle a bit '. Offer less and less the real target. Be prepared to pay by phone. But even refuse to do anything until you see a written offer. Remember, who believe that 50% of your money than 0% of your money.
"Overall it was a very simple process. Of course, I always recommend to someone who could do alone, you can pay someone hundreds or thousands of dollars in phone calls, you can also do.
"EvenRemember, there are tax implications for settlement. "
Phases of conciliation
"... Even in the first stage, the offer of compensation (if any) is usually about 70-75%. [XYZ Company] has offered me settlement in this area, if my account 30 days late. I think that only in the advanced stage of the crime, you will receive a 50% settlement offer.
"But if this is a calculation, a solution of 50% after 6 months, the crime is not necessarily cheaper than a solution 70-75% after 1Months of delinquency. The bank continues to pay interest, penalties for late payment or even beyond the quota limit (if applicable), while your account delinquency. "
Settlements are not a good way
"... The settlements of the Bureau are reported as" paid. "This should not be paid" as agreed ", as one would like, but it shows that you adjust contrast, had paid full compensation. This will remain on your credit report for 7-10 years, and lowers your overall credit score dramatically. Ifpossible, I will try until a repayment plan to get out of debt. If the interest rate is too high and we can not reasonably get out of debt in the next 5 years, you may want to look into credit counseling. Again, this is a short-term pain, long-term philosophy of gain. "
55% is pretty good!
"... 55% is an offer good enough. They always want to pay on the spot. I have never agreed on anything without something in writing. I even went to the point of keeping the phone for15 minutes, while they have entered into an agreement and faxed to me, "Small Talk" for the boy all the time. I gave them my information and have control of the phone.
"I'm very passionate about this issue. Those who do not favorable scenarios for the settlements me a little 'heated. My view is that suffering is closed with a large amount of debt and financial suicide. These are the debts that were run be back for years and years and years ago, the minimumThe payments, all the time with you at your expense account. The accounts do not seem to diminish.
Get out of debt, as you can!
"Get Out of Debt Any Way You Can! My score was in the bottom 1% of values. A year after settling all my accounts (about 50k of debt), my rating has gone up, when I and my wife have just bought a house with a no-money-down loans.
"If we had the advice of those who tout credit scores above all else, we would still kill usthat the monthly payments, with the hope 10 years from now to have some relief. Now all our debts are paid, we just guide and monthly utilities, and we are able to save about $ 1000 per month. That's something that my family now have never done, we were scrapping for the next eternity, trying to pay thousands of dollars in debt $ 20 at once.
"What in the world a great service is convenient for guests, if not pay the bills each month?" Get out of debt, thenStart thinking of buying a house or a new car, etc. The claim that a high score on credit, while hundreds of dollars every month, over 21% of shares of Waste is a madman, in my opinion. "
No company can negotiate better you can do
"I have all my own after I negotiated my position, if an account had not taken legal action against it considers that a company can not negotiate as best we can do alone.
"I talked 50k debt and paid around 50 Centthe dollar. One-off debit account and would not talk to me. So, after a complaint was lodged, I rented a 'company' (debt negotiator) to represent me. The bill was about $ 5500, but had taken the legal costs of around $ 1200 Finally, the negotiation of these terms. Dismissed and court costs $ 175/month, 10% interest on a balance of $ 5700
Attorney Robin Leonard
Attorney Robin Leonard in his book from Nolo Press has money problems, the following recommended requirements for trading.
Behonest, but paints a desolate picture of your finances. Elaborate on any illness, dismissal, accident, evacuation, with the tax authorities, etc.
In case of failure, they say. But in any additional debt after saying so. If you can not able to discharge in bankruptcy.
Never pass if you work or bank. If you later sued by the same person and ruled against you, you just work a lot easier. Just answer the question: "NoComment.
Rather than sending a check from your bank received a wire transfer or check, to protect the name of the bank.
I remember when examining a lawyer, that if a lawyer takes effect, and can do a good job, they cost money. Not exciting, if I have a lot to have a realistic chance, a very good deal. When you become a lawyer, sometimes what you save for the solution of losing pay.
If more than one lender contacted for the same debt, it is likelynamely the claim was sold a second time and has avoided the first major collector. In other words, are very difficult to grasp and is a very old debt. Many secondary and tertiary collector at this point might be willing to accept 33-50 cents on the dollar, and perhaps even less.
If the temperature of the collector is said to be ready to be filled for less, certainly, but also agreed to provide the content "full" in the credit report.
If the temperature of the collector is in agreement with much less than the originalAmount, make sure that the company is financially reasonable.
The reader will certainly be interested to know Mike, the author of this article, also offers a free mini-course debt elimination via e-mail. You can register for a debt free in 7.5 years.
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