Posts Tagged ‘credit counseling’

3 Debt Relief Options For Credit Card Debt

The following is a guest post written by financial consultant Neil Williams.

 

With the state of the economy, consumer credit card debt is mounting. Debt is spreading like an epidemic in the United States. More and more people are getting trapped in the vicious cycle of credit card debt. Only debtors know the problems of being overburdened with credit card debt. So, if you are a financially troubled debtor seeking for debt help, then have a look at the various debt relief options that can help you bring yourself out of the credit card debt hole.

Thousands of people seek some sort of debt relief every year. Most commonly, debtors seek debt consolidation or refinancing which provides them with the benefit of lower monthly payments and interest rates. But there are some more options that can bring you out of debt. Read on to know about them.

  1. Consumer credit counseling
    Those debtors, who cannot manage their debts on their own, can seek professional help. Consumer credit counseling will provide you with professional credit counseling. The credit counselor will guide you to manage your finances and implement a personal budget for you. This budget will help you manage your finances well. They will identify the problems which have led to such poor financial condition. After detecting the problems, the credit counselor will advise you how to manage your finances well so that you again get a grip on your finances.
  2. Credit card debt settlement
    Debt settlement is a debt relief option which should be considered by debtors only if their last option is to file bankruptcy. Debt settlement is a good option for debtors who have a large amount of debt and they can’t find any way out to pay off their huge debts. Once you sign up with a debt settlement company, your debt consultant will negotiate with your creditors and attempt to reduce your total outstanding debt amount considerably. Creditors often forgive 40-50% of the outstanding balance amount. You have to pay some debt settlement fees to reap the benefits of these services.
  3. Credit card debt consolidation program
    Credit card debt consolidation is another way of paying off your debts in affordable monthly payments. If you enroll yourself in a debt consolidation program, then your debt consultant will negotiate with your creditors in order to lower the interest rates on all your credit card debts. The creditors often agree to lower the interest rates as they see that the debtor is paying through a debt consolidation program. This reduces the monthly payments of the debtor. Instead of making multiple payments to multiple creditors every month, you just have to make a single monthly payment to the debt consolidation company.

It is very important for consumers to know the truth about credit card debt. They should know that there are various debt relief options that help consumers to pay off debt easily and timely.

The Truth About Bankruptcy

In this post over at Frugal Dad, guest blogger Neal Frankle asked this question: “Is it wrong to ask to have your debts forgiven?” In his post he mentions actor Stephen Baldwin, a born-again Christian whose income has dried up  as a result of his own choices to refuse roles based on his new-found faith, and who now is in bankruptcy.

The number one reason for bankruptcy is medical bills. The number is over 60%. Among those, more than three quarters have medical insurance. As for the rest, all report some sort of misfortune, most commonly a job loss or other decline in income. Only 9% of bankruptcy filers reported no misfortune.

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Lindsay Lohan Owes More Than $600,000 In Credit Card Debt

The 23 year old Lohan, a once promising young actress, has run up well over $600,000 in credit card debt. She has been at last cut off by one credit card company and faces a lawsuit from another if she can’t pay her bills.

Lohan’s income is not what it once was, given that her last hit film was 2004’s Mean Girls and club invitations haven’t been fetching much more than $5000 to $10,000.  Times are tough for everyone, I guess, although the strains of pity flowing off the violin playing for Lohan’s plight may be too low to hear, owing to its microscopic size.

Maybe Lindsay could use some credit counseling as well as drug rehab?

Wage Garnishments On The Rise : How To Protect Yourself

gavel As the economy continues to sour and more people fall behind on their bills, more people find themselves being sued by their creditors, or more accurately, by debt collectors. 

Because most people don’t know how to react to being sued and very often do not show up to court, creditors largely win by default. Once a court judgment has been entered, then the creditor may collect by garnishing wages, in most cases, a quarter of take-home pay. Especially in this economy, where every dime counts, having a quarter of your wages disappear into a garnishment can be devastating.

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Smart Financial Planning: How To Set A Personal Budget

budget

Learning how to budget properly is a must-have skill in life yet most people never receive any instruction in it.

The first thing you must do before you start a budget is to figure out how you are spending your money. Keep a diary for a three month period of everything you spend, down to the last dime. If you spend 1.50 a day on coffee, note that down. Every time you pay a bill, notate that. Once you have three months of spending activity documented, then sit down and sort your expenses.

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When To Opt For Debt Management Credit Counseling?

Debt management credit counseling is a useful tool to help you to get back on your feet if you find yourself choked with a lot credit card and other types of unsecured debt.  Debt management credit counseling services are most useful to people who have the means to pay off most of their debts but for one reason or another have found themselves behind in payments or just making the minimum payment and getting nowhere near being able to pay off their credit cards. This service is not for people who are unemployed or who have so little income that they can barely cover the necessities let alone make payments to creditors.

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