Are you missing making monthly payments on your bills, receiving harassing phone calls and letter from your creditors?  Are you finding yourself lying awake at night, wondering how to get out from under the situation you’re in?  If you have more than a few bills, then you may not know where to start fixing the problem.  Here are a few suggestions in order of importance.

1. Credit card debts: Credit card companies charge the highest interest rates.  They are also the type of credit that is most abused by people.  The longer you delay in paying your credit card debt, the higher the amount you pay.

2. Mortgage debts: When you are late at paying your mortgage loan, your loan amount keeps increasing with the interest rate. As a result, if you are unable to pay a lump sum amount, you may become a defaulter. This can result in you losing your home.

3. Utility debts: Utilities like gas, electricity and telephone are a dire necessity for our day to day life and transactions. Not making regular payments will result in the losing of these services.  Transportation expenses would also come in here, like auto payment and insurance.

4. Income tax debts: Income taxes are sometimes automatically deducted from your wages, and can have very high penalties.

There are a few options you can pursue when looking to rid yourself of your overwhelming debt.

One is Debt settlement, which is when the debtor and creditor agree on a reduced balance that will be regarded as payment in full.  This will help you find financial relief in your monthly budget, making the rest of your monthly payments much more manageable.  Also, you will find that from this point on you can start rebuilding your credit.

Debt consolidation is another option, which entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan.  The negotiations with the lender are carried out by a third party, trying got get you the lowest rates with your lenders.  One monthly payment is made to the consolidation company and they take care of making payments on all your accounts.
The consolidation company will also take care of all paperwork, see that any fees are paid, and will close down unused accounts.  Your debt can usually be taken care of within five years.

Learn about debt settlement, debt consolidation, debt relief, and more at Impact Debt Settlement.

If you find yourself buried beneath overdue bills and are franticly looking for a way to get out from under them, then the odds are pretty good you’ve come across ads that offer, for a fee, professional debt settlement to help you eliminate your credit card debt.

If you think this sounds to good to be true, well, you are actually wrong this time.  Impact Debt Settlement is actually a legal and viable option for those in debt who wish to avoid bankruptcy.

It's a fact (though not commonly advertised) that  when you are behind on your payments, creditors would rather settle your debt for less than what you owe than risk getting noting were you to file for bankruptcy.  In a debt settlement, anywhere from 20 to 70 percent of what you owe is simply erased with agreement that the remainder will be paid off in a timely fashion.  The debt is forgiven and the creditor reports it as settled to the credit bureaus.

It will likely not surprise you to know that creditors don’t go out of their way to let this be known to the public.  They also make the process complicated.  Fortunately there are debt settlement agencies whose function is to facilitate settlements.  So if you are tired of the phone calls and the letters, make the move today and begin working towards a better, debt free financial future.

Learn about debt settlement, debt consolidation, debt relief, and more at Impact Debt Settlement.

Many Americans are in an unexpected, unpleasant situation: They are finding themselves buried under an overwhelming amount of credit card debt.  Because of this, many people are finding themselves being harassed by collection agencies, receiving threatening notices in the mail, and even suffering negative affects to their health because of the stress living in debt can cause.

It doesn’t have to be that way. There are ways to get out from under the rising tide of debt.  The thing to remember is that there are many people who suffer the same problem and that there is a way out of it.

One option is Impact Debt Settlement. This is when the debtor (you) and creditor (the credit card company) come to an agreement on a reduced balance that will be regarded as payment in full.  These negotiations are most often done by a third party.  This will help you find some financial leeway in your monthly budget, making it easier to handle the rest of your monthly bills.  Another benefit of debt settlement is that it provides a starting point for you to begin repairing your credit score.

Another option is debt consolidation. This is simply taking out one loan to pay off many others. This is usually done to secure a lower interest rate, secure a fixed interest rate or for the convenience of paying only one loan.  Again, these negotiations are carried out by a third party, trying got get you the lowest rates with your lenders.  One monthly payment is made to the consolidation company and they take care of making payments on all your accounts.  The consolidation company will also take care of all paperwork, see that any fees are paid, and will close down unused accounts.  Your debt can usually be taken care of within five years.

A third option is bankruptcy.  This is a legal declaration of your inability to pay your debts.  You will most likely be required to liquidate your assets (sell off what you own) to pay as much of your debt as you can.  This means you will lose many of your processions.  Your home, your car, or any other unprotected asset can be seized as a partial payment on what you owe, and you still might wind up with higher monthly payments than you are currently making.  Simply put, bankruptcy should only be used as a last resort after all other options fail.

Whatever route you choose to go, the important thing to do is act before the situation gets worse.

Debt settlement and debt consolidation are both excellent ways to reduce or eliminate your debt entirely.  Each one of these options can and will have different effects on your credit score as well as your future financial standing.  Before you choose one over the other it is important to know both the good and bad of each.

*Debt Settlement Pros

Impact Debt settlement is when the debtor and creditor agree on a reduced balance that will be regarded as payment in full.  This will help you find financial relief in your monthly budget, making the rest of your monthly payments much more manageable.  Also, you will find that from this point on you can start rebuilding your credit.

*Debt Settlement Cons

The downside is that this will affect your IMMEDIATE credit score for two years.   Debt settlement is very similar to foreclosure and the result will be a credit score of 500 or even lower.  You can work to improve your score over the following two years, but you will also have to work with sub-prime lenders.  There is also tax issues involved.  The IRS views debt settlement as a cash gift or income. Depending on your individual situation, you may have to pay additional taxes.

*Debt Consolidation Pros

Debt consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan.  The negotiations with the lender are carried out by a third party, trying got get you the lowest rates with your lenders.  One monthly payment is made to the consolidation company and they take care of making payments on all your accounts.

The consolidation company will also take care of all paperwork, see that any fees are paid, and will close down unused accounts.  Your debt can usually be taken care of within five years.

*Debt Consolidation Cons

While debt consolidation will have smaller affect on your credit score, it will take you longer to get out of debt and get your credit score back up.  Generally lenders will put a hold on extending you more credit until they see how you are doing under the loan.

*The Right Option for You

As you can see, there is no perfect way for getting out of debt.  Debt settlement will get you quicker results, but with a larger hit to your credit score, though only for two years.  Debt consolidation makes things less complicated, but with a smaller hit to your credit score, but more lengthy.  Whatever your approach, it is important to take either first step to be debt free.

Learn about debt settlement, debt consolidation, debt relief, and more at Impact Debt Settlement

The consumer is faced with many choices when it comes to getting out of debt: consolidation, credit repair, debt settlement, do-it-yourself, and bankruptcy.  Clearly, some of these choices are better than others for your financial future, and it is important to know the differences between the different methods.  Services that offer to repair your credit and those that offer to negotiate or settle debt are often lumped together and the terms are used synonymously.  They are not, however, the same.  What is the difference and which is right for you?

Debt Settlement is a method to reduce your balances in which financial experts negotiate with creditors in order to reduce what you owe overall.  For instance, a $10,000 credit card bill may be negotiated down to $5000 or even lower.  The goal is to make the amount manageable so you can pay your bills in an ethical manner.  You can do this without a professional, but it often helps to have a specialist handle negotiations.

Credit repair services, on the other hand, offer to “fix” your credit. They do this by examining your credit report line by line to find inaccurate items.  If they find one, they report it to the three major credit bureaus in order to have it removed from your report.  It can be helpful to have professional help when you spot an inaccuracy or when you are not sure if a balance is valid.  However, it should be noted that everything a repair service does for you can be done by yourself.  You are entitled to one free credit report from each of the three major credit bureaus each year and can dispute inaccuracies yourself.

There is also the potential that you will fall prey to unscrupulous repair companies. While there are reputable companies that offer useful service, there are also those that would “fix” your credit using unethical or even illegal methods.  If you do need to dispute an inaccurate credit report item and would like help, make sure you know how to avoid the scam repair services.

Typically, you can identify these scams by their wording and claims. For instance, a reputable company might tell you that they can dispute inaccurate, out-of-date, or out-of-compliance items.  They may also offer financial counseling so you can keep your credit report clean.  A scam may say something like, “We will eliminate your bad credit! 100% guaranteed!”  or “Remove bankruptcies, liens, loans, and judgment from your report!”  Some even tell you that you can “Create a new credit identity – legally.”

Be assured that all of these claims are false.  No one can remove bankruptcies, judgments, liens, or loans from your credit report – unless they are inaccurate.  If you owe the money, the black mark on your credit report is not going anywhere until it is settled.  And you can certainly not create a credit identity legally.  In fact, that is fraud.

The ultimate goal of both debt settlement and repair is to help you achieve a better credit score.  Repair services do this by cleaning your report of old or inaccurate entries.  Impact Debt Settlement does it by attacking the problem directly.  This way, your accounts read “Paid in Full,” instead of delinquent.  The right one depends on your needs.  If you are struggling under loads of credit card and other unsecured debt, debt reduction may be the best way out for you.

Are you having problems dealing with all your debt? Are your credit card bills plus your interest rates already building up? Meanwhile, you have to car payment, your home loan payment, plus all of your other monthly bills and expenses.  To lessen your worries and lower the interest rates that are making your nervous, debt consolidation is a good and very viable option for you.

Debt consolidation means you take out one loan to cover or repay all the others. This new loan will encompass all the loans you took out before. Ideally, it will have a lower interest rate which, while it is a larger loan, will save you money in time because of the lower interest.

When looking for the loan you’ll use, you should try to choose a low interest loan, and likewise a loan with reasonable paying terms. The positive thing about debt consolidation is you’ll be able to secure a fixed interest rate for your loan, and you’ll just be worrying about a single loan which needs to be repaid.

You can also opt to have a debt settlement company handle the problem for you.  These are professionals who work with banks and credit card companies everyday, and can most likely get you the best terms available to you.

Debt consolidation is most of the time used by people who are paying on a number of credit card debts at once.  Credit cards, being unsecured debts, often have very high interest rates.  Usually, if a person can’t pay off the debt in a timely manner, the interest amounts pile up so fast that eventually it is higher than the original debt.

So the best thing to do is remove yourself from the entire mess; either by using a debt consolidation company or by jumping through the hoops yourself.  Either way, you’ll end up saving yourself money in the long run, as well as preserving your piece of mind.

Learn about debt settlement, debt consolidation, debt relief, and more at Impact Debt Settlement.

If there is one piece of debt advice that will help when collection agencies and creditors begin calling or sending written warnings, it is that you should not avoid the situation.  This is not beneficial for several reasons, but mainly it will make your situation feel much worse, and it will not help you get out of debt.  The first step is taking these calls and handling these communications head on.  Now comes the hard part.

First, known your rights under the law.  The Fair Debt Collection Practices Act is designed to help you deal with creditors and limits their actions.  They are not allowed to call within certain hours, repeatedly call with the intent to harass or threaten, call once you have told them not to, threaten arrest, and communicate with postcards.  Make sure you know exactly what the FDCPA prohibits creditors from doing and what your rights are. You can read the whole version at the FTC website.

A common tactic of collection agencies is to paint the worst case scenario so you will be pressured into acting quickly and without thought.  For instance, many creditors tell you that you can make a “convenient and easy” phone payment if you provide your checking account information.  If you agree to this and agree to pay $50 a month on a $1000 bill, they may very well take the entire $1000 at one time.  Never give your banking information to creditors.

Creditors will most often agree to either a reduced balance in you pay in full or will let you pay in installments.  This can be your best option to pay off debt, but be aware that when the creditors call, they want to get as much as they can from you.  If you owe $1000, they want that.  But they also know that getting something, whether it is $500 or $250 is better than nothing.  It’s simple math.  Anything is more than zero.  They do not want you to know this.  They would rather get all of their money, but you should be aware that they will take significantly less if you negotiate.

Negotiating is difficult for many people:  always remain calm and keep your composure.  They are not required to play nicely and you have a better shot if you are calm, cool, and collected.  When you are sure the debt is yours and that you are, in fact, required to pay it, figure out how much you can pay and offer less.  Be persistent yet polite.  When you do negotiate a debt down, do not pay it immediately (especially by phone!).  Wait for a written confirmation of the agreement as well as the new “paid in full” amount.  When you get this, get a bank check for that amount and make copies.  Request that the creditor relay the information to the three major credit bureaus.

Of course, an easier way to deal with the problem is to enlist the services of a debt settlement company.  Letting people who are trained for and have experience in negotiating with credit card companies removes most of the stress from you, and lets you feel more confident that mistakes aren’t being made.  Debt settlement can work for  you, but you have to make sure you get it right, or it’s just time wasted.

Books can be written on negotiating with creditors and collection agencies.  It really is worth the time to be prepared.

Learn about debt settlement, debt consolidation, debt relief, and more at Impact Debt Settlement.

If there is one area in which millions of people need debt advice, it is paying for college.  Can you afford college, and can you get your degree without creating a tremendous amount of debt?  If it is your child in college, how much debt should you take on?

We’ll tackle the second question first because it is shorter.  None.  Do not take on debt for your child’s college education.  Your child has decades to work and pay off debt.  You may only have a few years until retirement.  You can help pay for college, of course, but you should not take on loans or take out a mortgage or second mortgage on your home in order to pay the school bills.  You do not want to risk your home or your retirement.  It actually does benefit your child because college loans are typically low interest and can be paid according to different schedules.  They also help your child establish and build good credit.

College students will face about $21,000 in loan debt on average.  Students typically carry credit card debt of over $3000.  Compared to $21,000, this may not seem like a big deal, but when you consider the interest rates, finance charges, and other miscellaneous fees, you will be paying for that $3000 for years.  In addition to your college loans and other financial obligations, this can be too much to handle, especially for those who are just starting their careers.

As the cost of college tuition rises steadily, more students are forced to buy books, food, and even classes with their credit cards.  Can you avoid college credit card debt?  If you possibly avoid it, do not go to college with a credit card.  If you do feel you need one for emergencies, make sure you are clear on what an emergency is.  Needing car repairs so you can get to work is an emergency.  Buying pizza for your dorm friends is not.

If you do have a card, control your spending and cut out non essentials.  If you must buy books or other necessities, make regular payments and try to pay extra each month. Get a work study job or one off-campus; get roommates to reduce cost; skip buying groceries and eat at the cafeteria.  Most colleges require on-campus students to have a meal plan, so you might as well take advantage of it.

The key is to realize that credit card debt is an albatross that you will be lugging around for quite some time.  Do not think it will just blend in with student loans:  credit card debt is a very different beast.  Budget your money; it is never too early to start handling your finances responsibly.

Learn about debt settlement, debt consolidation, debt relief, and more at Impact Debt Settlement.

Debtors’ prisons are a thing of the past, but really, we all live in them when we struggle to make our minimum payments, use credit to pay bills, and juggle our payments.  We don’t feel free to live our lives, and we may even live in fear – of creditors’ calls, threatening letters, and impending judgments against us.  While it may seem very bleak to you, there is assurance in knowing that there is a way out.  There are two important keys to getting out of debt:  finding the right solution and starting now.

When they owe thousands, or even tens of thousands of dollars, to creditors, many people assume that their only way out is through the difficult process of bankruptcy.  And for some, unfortunately, this may be true.  However, for many of these people, another option may offer a route out of debt that is smoother, a bit easier, and reestablishes a sense of control over their financial lives.  Debt settlement is a process through which your total debt is reduced, and you work to make monthly payments and pay off creditors in full.  Which is right for you?

There are two different types of bankruptcy for individuals: chapter 7 and chapter 13.  In chapter 7, a person’s non-exempt assets are liquidated and the funds used to pay creditors.  Non-exempt property can include a second or vacation home, bank accounts, bonds, valuable items, including collections, a second vehicle, and other items of value.  Those filing for chapter 7 can keep reasonably necessary clothing, household goods, and furnishings, pensions, personal injury awards, public benefits, and tools of his trade, jewelry, and vehicles to a certain value.

Chapter 13 is also called reorganization bankruptcy.  In essence, your debts are reorganized by the court, and you have three to five years to pay them off.  Many opt for chapter 13 because they do not qualify for chapter 7 under new laws or they have non-exempt property they want to keep. If you would like to file chapter 7, which essentially eliminates your qualifying debts, you must pass the Bankruptcy Means Test, which takes into account your current income level, family size, etc.

In either method, your debt is handled in a legal manner, and you are required to receive credit counseling before filing.  This can be helpful because you explore other options and can learn valuable tips for managing money and debt more healthily.

However, there are drawbacks to the bankruptcy process.  The first and most obvious is that your credit score suffers tremendously.  A bankruptcy stays on your credit report for at least seven years.  During this time, it is exceedingly difficult to obtain good credit.  If you do get a loan or mortgage, you will be unfavorably high interest rates and may not qualify for the full amount for which you ask.

In addition, because of new, more complex bankruptcy laws, many people need to hire a lawyer specially trained in this area of the law.  For people struggling with debt, this is a burden to say the least.  Another reality of bankruptcy is that it is one of the most stressful events a person can go through in his lifetime.  It is on the top ten biggest stressors list, in the category of losing a spouse, losing your home, etc.  It is very difficult on your mental health, very stressful, and very trying for your whole family. For your sanity alone, it may be well worth it to explore an alternative.

Debt settlement is only similar to bankruptcy in a few regards:  you do have a way to handle your debt, and it is a legal process.  Beyond that, the two are very different.  Debt settlement offers a way to escape debt without the tremendous burden of stress and attorney bills that can accompany bankruptcy.  In a reputable debt settlement, or debt negotiation program, you make a monthly payment into an escrow account which is specifically reserved for paying your creditors.  One at a time, settlement specialists negotiate with your creditors to reduce the overall balance that you owe.  For instance, a $10,000 credit card bill may be slashed to $5000, or even less.

You then pay that creditor in full as soon as your escrow account as sufficient funds.  You cross that one off the list, and the specialists move on to the next.  In this systematic manner, all of your unsecured debt can be eliminated.

While your credit score does initially dip, it ultimately is healed by your efforts because creditors are being paid in full.  When you work with a program like this, you can be debt free in a matter of three to five years.  Free of debt.  Did you ever think that was possible? It can be when you choose the right road.  Debt settlement will get you there.  Start now so you get out of that prison.

Learn about debt settlement, debt consolidation, debt relief, and more at Impact Debt Settlement.

Credit card debt affects millions of Americans.  If you find yourself harassed by collection calls and have more money being spent to keep up on bills that you have coming in, maybe it is time to get rid of your credit card debt for good.  Excessive credit card debt can have a enormous impact on your monthly income which results in you using your credit cards (again) to keep up.  Without taking steps to end it, this cycle can go on forever.

This is where debt settlement can help you.  Debt settlement is when the debtor and creditor come to an agreement to a reduced balance that will be regarded as payment in full.  This will help you find financial relief in your monthly budget, making the rest of your monthly payments much more manageable.  Also, you will find that from this point on you can start rebuilding your credit.

When contacting a debt settlement company, be prepared; you'll want to have all of your financial information ready.  Pay stubs, credit cards bills, and any other bills you have such as mortgage or rent, utility payments, and auto and insurance payment information.  The debt settlement company will need to have a clear idea of how much money you have coming in and going out each month.  From there they can figure out how much of your credit card debt can possibly be reduced.

In the next step, the debt settlement company will begin to negotiate with the credit card people, trying to get the balance and interest rates on your credit card bills reduced.  These accounts will be closed, and you will no longer have credit with these people, but your debt and monthly payment will be greatly reduced.  Instead of paying several credit card bills each month, you'll only make one payment a month to the debt settlement company.  They in turn will take that payment and distribute it to your creditors.  The result is less work for you and less money being spent each month.

Your credit report will be affected.  Though only for two years, it will be difficult to get new credit during that time.  While not ideal, this is better than the damage your credit would take were you to just not pay some of your bills.  IT IS VERY IMPORTANT TO MAKE THE MONTHLY PAYMENT IN A CONSISTENT MANNER ONCE YOU HAVE BEGUN THE DEBT SETTLEMENT PROCESS.  Doing this will make sure your balances are paid off and help you repair your damaged credit.

The first step is to take that first step and contact a debt settlement company so you can begin your journey to living debt free.

Learn about debt settlement, debt consolidation, debt relief, and more at Impact Debt Settlement.