April 2nd, 2008

Is a debt settlement law firm reputable?

Posted in Bankruptcy, Credit, Debt, Uncategorized by debtmansteve

When looking into debt settlement you can either use a law firm or a debt settlement organization and which is better.  Below is one of the very serious issues to consider between the two.

 One more subject to consider is that law firms have to answer to a greater authority in order to stay in business, the State Bar Association. This gives the client additional peace of mind that there case will be handled properly throughout the debt settlement process. On the other hand a settlement company answers to no one but itself.

 This among other things makes using a debt settlement law firm more sensible.

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March 19th, 2008

Various debt relief methods and their pros and cons

Posted in Bankruptcy, Debt, Finance, Uncategorized by debtmansteve

We here in U.S are on the threshold of experiencing a major credit problem. The sum of credit card debt has hit a record high and we are nearing what may be a recession. Thus leaving a plethora debtors with fewer dollars in there wallets and more debts that they have to pay on. In this writing I will go over the pros and cons of the various available systems of credit card debt relief.

Online Consumer Credit Counseling Programs:

Pros- Monthly payments are consolidated into just one, reduced interest rates, fixed payment not minimum payment.

Cons- Long term repayment, stringent program rules, most do not complete program, obtaining a mortgage on the program is almost impossible, usually payments are close to what minimums were before joining, one missed payment can result in being kicked off program.

Bankruptcy:

Pros- A full discharge of debts owed if you qualify for a Chapter 7, the collectors cannot call and harass.

Cons- Very bad effect on credit rating, made a public record for the rest of the debtors life, change in bankruptcy law made Chapter 7 very hard to qualify for, court ordered repayment process.

Credit Card Debt Settlement:

Pros- Debtors can save a tremendous amount of money of what is owed, fastest way to get out of debt, not made a public record.

Cons- Short term negative effect on credit rating, collection calls, possibility of lawsuit.

 All of the above methods do have their respective pros and cons. However what really determines which method is right for you really depend on the current monetary situation that you are in. For debtors stuck deep in debt but have money to pay a portion of it off then debt settlement would be the correct choice, to help avoid bankruptcy. Those who have lower debt amounts and have no problem making the monthly minimums plus more, than credit counseling is better. However there are some people out there who have literally no choice but to go into a bankruptcy proceeding.

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February 5th, 2008

Which is better settlement or consolidation

Posted in Bankruptcy, Credit, Debt, Economy, Finance, Uncategorized by debtmansteve

Most people who are in debt and are looking for a way out instantly think to go the route of debt consolidation. That is the more common term within the debt relief industry and that is what term the average debtor is familiar with. However another growing debt relief industry is that of debt settlement. The people who learn about debt settlement at some point ask the question what is better for my debt situation debt settlement or debt consolidation.

It really boils down to the financial situation that you find yourself in. People who do not have very much debt and who have no problem paying the minimum payments plus more are much better suited to go the route of debt consolidation. People who stuck pretty deeply in debt would benefit a lot more by going through the process of debt settlement.

Through settlement a lot more money can be saved and you can find yourself out of debt much much faster than debt consolidation. With settlement a negotiation is made to pay back a reduced amount than that of which is owed. Saving the debtor quite a large sum of money in the process. Which naturally will reduce the time that you are stuck in debt as well.
With debt consolidation you are paying back 100% of what it is that you owe, plus interest. You will find yourself debt free within five years with debt consolidation, which is also known as consumer credit counseling. Whereas with debt settlement you may find yourself out of debt in as little two years or less.

If you find a reputable debt settlement company you can look to save upto 50% of what you owe, including the fees for the service.

The only bad part about debt settlement is that you must default on your bills in order for the creditors to be willing to offer you a settlement. So understandably your credit score will suffer in the beginning of this process. And there is the potential for a lawsuit. So that is why it is advisable to retain a law firm for debt settlement so that if you are indeed sued they can still negotiate and reach a settlement out of court. However the vast majority of people do not get sued less than two percent. But it is a possibility so it is best to hire the law firm and make sure that you cover all of your bases.

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October 26th, 2007

Grabbing Your Financial Foothold with a Second Chance Checking Account

Posted in Banking, Bankruptcy, Credit, Debt, Uncategorized by quad0028

Have you considered how your money could be in jeopardy if you had to keep paying insufficient fund fees to your bank? Chex Systems, the leader in providing financial services for banks may disable your capabilities to use a checking account within their system if you can’t pay your bills. If Chex Systems takes away your rights, financial professionals recommend that you sign up for a second chance checking account. Second chance checking accounts provide security since they provide a real account and routing number.

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