Do you know that some forms of credit counseling are just another name for debt consolidation? Debt consolidation credit counseling programs have become as common as standard forms of debt counseling. This dual concept of combining counseling and consolidation serves to help people who are struggling with their debts and need a quick fix. Like many of the other programs this program also has its advantages and disadvantages.
These kinds of programs usually start with an advisor who helps those in trouble by consolidating their debts into one loan. They end up with one payment; a reduced interest rate and in most cases they negotiate to waive the penalties as well as the late fees. If you select the right debt consolidation credit counseling company, they can help you in many ways. The advisors will set you up with a plan with which you can be free from debt.
After examining your financial situation, the advisors will also provide you with a time frame in which your debt problem will be solved. That time frame is usually based on the amount of debt you have, your current budget and how far your creditors are willing to negotiate. As you can see, debt consolidation credit counseling has lots of benefits. But you must also keep in mind that these programs are not suitable for everybody.
Some of the creditors may not be willing to negotiate at that particular time. Others might reject the first offer presented to them by the consolidator. For example, if they consider the time frame to be too long then the credit companies might to just send the account to a debt collector. It’s crazy but no one said this business was based on common sense. Certain credit card companies still have a negative take on credit counseling. So you need to be careful about these things before you decide to go for a counselor.
So you need to learn about these rules prior to enrolling in a debt consolidation credit counseling program. To find out the best company you need to compare the various companies that offer credit counseling and debt consolidation. Choose the one that is the best suited for the situation you are in.
Are you facing a major debt problem due to your credit cards? It has often been found that people tend to use more than one credit card. Having five to eight credit cards has become the national average. This is one of the primary reasons why lots of consumers are struggling with out of control debt these days.
Eventually, with those many credit cards, the debt swells to a point when the person is unable to make even the minimum payment on some or all of their accounts. When a person reaches that stage it’s a good time to consider credit card debt negotiation. Considering the circumstances, this is probably the best option for a person to eliminate the debt and potentially avoid bankruptcy.
Credit card debt negotiation is a common practice these days. When a person faces monetary problems they tend to stop making the monthly payments to the credit card companies. Consequently, the creditors start fearing that their money may never get paid and they resort to solutions such as hiring third party debt collection agencies that have a knack for harassing those who have missed payments.
The creditors will do this because they have their interests of getting back their money. Credit card debt negotiation can help you out in this kind of situation because with a successful negotiation you end up paying less than what is actually owed.
If you opt for negotiation and do it properly, it is not uncommon to settle for half the money you owe to the creditors. You need to have nerves of steel if you are going engage in a debt negotiation scenario all by yourself. If not, you can take one of the other options such as using a debt settlement coach or you can hire a debt settlement company to act on your behalf. These companies have professionals who are trained, certified and best suited for this job.
If you decide to hire a company then you will not have to worry about the credit card debt negotiation process because the pros are handling it. Taking help from professionals is the best case scenario. The only caveat is that you must take care in the company that you choose. Avoid the companies that charge upfront fees.
Student Loan Debt Statute of Limitations, What’s That?
Why would anyone be thinking about the student loan debt statute of limitations when they start school? Prior to graduation, the average student has aspirations of getting through school, getting their degree, landing their dream job and getting on with their life. Which includes paying all of their bills, including their student loans. But somewhere along the way a thing called LIFE happens. The next thing they know, they are strapped with paying mortgages, rent, car notes, credit card bills, insurance, medical bills, utilities and dealing with a shaky economy.
Tick Tock, Tick Tock – My Student Loan Is On The Clock
As the clock ticks, their student loans fall further and further behind. One year turns into three years. Three years turn into five years. Five years turn into seven years and the clock just keeps ticking. The debt collectors call and make it crystal clear that they will pursue the long overdue delinquent student loans until the person’s last day on planet earth. But the truth is; all student loans have a debt statute of limitations with the exception of FEDERAL student loans.
What is a Debt Statute of Limitations You Ask?
It sets and defines the deadlines by which a creditor or a lender can legally pursue a debtor in order to collect a debt. Once that deadline has been reached, the creditor, lender or debt collection company cannot LEGALLY pursue that debtor for that debt. The debt statute of limitations is an absolute form of debt relief that no creditor or debt collector can fight against and win. This means that if your student loan has been out there with no payment for three or more years, you more than likely qualify for this statute. It all depends on the state you live in; each state has its on debt statute of limitations. For example, in California the debt statute of limitations is four years but in the neighboring Arizona, its six years. You’ll need to check with your state of residence for your debt expiration date.
What Is The Date of My State?
If you have arrived at that date as declared by our state, according to the law, there is nothing that a debt collection company or an attorney working on behalf of a debt collection can do. The law is very clear on this point; you can’t be sued! Don’t the debt collection companies know this? Of course they do! So why won’t tell anyone? If they did, that would mean millions of dollars in easy revenue that they would not collect. I call it easy revenue because debt collectors buy bad debts for pennies on the dollar. Everything they make after paying off the pennies is premium gravy. It’s almost like investing seventy-five cents and getting back seventy-nine dollars. The debt collectors know that student loans that have reached the debt statute of limitations are unenforceable. The issue is; THEY DON”T WANT YOU TO KNOW! To check with your state for your date! Go here: Debt Statute of Limitations.
Has your home become a debt collector’s haven? Are you living in a quiet desperation because of debt? Do you dream of ways to stop bill collectors calls once and for all? Most consumers with a debt problem are usually blinded sided by this troubling issue. It may be due to money mismanagement or our overall economic issues. Or it may stem from medical issues, job related injuries or something out of the ordinary. Whatever precipitated the problem the majority of people are in the same boat. They don’t know how to stop bill collectors calls. The don’t know how to stop harassment by bill collectors and even worse, they are so emotionally charged, they haven’t come up with a get out of debt plan that will work for their specific circumstances. If you want to get on the road to recovery, your journey starts here and it starts now. Your first step? I’m going to help you instantly stop bill collectors calls.
