Nov/110
Consumer Debt a Large Concern
Consumer debt is becoming a large concern as Americans are finding themselves increasingly in debt; in fact, America’s consumer debt has recently topped $2 trillion for the first time. Any debt that is used for anything other than investments is considered consumer debt. The most common forms are credit card debt and payday loans. In order to help those who become over their heads in debt, many businesses offering debt consolidation and credit counseling have opened and are becoming quite successful.
Even though consumer debt is a problem in America, the picture’s not quite as bad as some may paint it. Cardweb.com reports that the average American household owes about $8,000 in credit card debt; however, statistics don’t always provide an accurate picture. In reality, most Americans are not in credit card debt at all and those that do owe usually owe about $2000 according to the Federal Reserve 2001 Survey of Consumer Finances. The truth of the matter is that a few individuals with very high debt provide a false image and portray a higher average debt than there truly is.
If the person cannot pay back their consumer debt they may turn to a debt relief service for help. These services have proven to be quite effective at helping people get themselves out of consumer debt. Keep in mind that some of these businesses are actually owned by credit card companies so they may be preoccupied with getting as much money as possible, so make sure you know who owns the company whose help you enlist. There are also some consumer debt relief agencies that non-profits, be aware that this doesn’t stop them from collecting fees for their services.
America isn’t the only country that holds a lot of Consumer debt; the U.K, India, Greece, and Turkey hold their fair share as well. Because consumer debt keeps people from spending money, it has a negative effect on a country’s economy and its GDP Governments seek to cure this problem and encourage people to spend by lowering taxes and interest rates. The sub-prime mortgage problem is another negative factor affecting America’s economy which is sure to make the consumer debt problem worse.
Should a debtor find himself unable to pay off his, Consumer debts he should realize that there are certain method of debt collection that are illegal. The Fair Debt Collections Practices Act prevent creditors from demanding larger payments than permitted, harassing the debtor, threatening the debtor, impermissible calls to the debtor’s place of employment, revealing debt to third parties, failing to send notices, continuing to contact the debtor after receiving a cease communications letter, and failing to verify the owed debt.
With the economy possibly heading towards a recession if you find yourself in consumer debt you certainly aren’t alone. You can take the first steps towards improving your financial future by paying off your cards, prioritizing your debts, decreasing spending, and finding ways to raise extra money. It’s never too late to pay off your consumer debts.
Nov/110
National Debt Relief Program Initiative
Consumers struggling with a high debt burden are reminded that research is required before enrolling in any debt relief program. While there are hundreds of legitimate companies that can help individuals eliminate their debt, there are also plenty of scams circulating within the industry which should be avoided. Before enrolling in any program it is important to investigate the company and the process they claim to use to eliminate debt. Here we are going to take a closer look at a potential scam that has cost some consumers hundreds or even thousands of dollars.
What is the National Debt Relief Program Scam?
It appears many consumers have received a letter in the mail claiming to be from the National Debt Relief Program. Victims of this scam have stated the letter at first glance appears to be from a government agency. Upon closer inspection it becomes clear the letter is not from a government agency but rather GHS Solutions, a debt settlement company. Jennifer Wallis is a Consumer Credit Counseling Service employee in central Oklahoma. She has clients who have received this letter which states the National Debt Relief Program can “reduce monthly payments by up to 50 percent”. Why is this letter considered a scam? Since the letter is designed to look like correspondence from a government agency, many consumers fail to realize it is actually from a debt settlement company. The information is misleading and many consumers who are desperate for a solution to their debt problem may enroll in a program that can have serious negative consequences.
GHS Solutions is a debt settlement company based in Delray Beach, Florida. The Better Business Bureau has given the company a F rating and reports 102 consumer complaints in the past three years. Of the 102 total complaints against the company, 88 are about the company agreeing to perform according to their contract.
GHS Solutions is not the only debt settlement company linked to the National Debt Relief Program scam. It appears consumers have also complained about a company named National Debt Relief and the program they offer to consumers. In this instance consumers have actually enrolled in the program and claim the company did not perform as promised. Clients claim National Debt Relief failed to stop collection calls and did not begin negotiating debt immediately. Other complaints claim the company misrepresents itself to appear like a government agency which leads consumers to believe they are working with a government program designed to assist individuals facing financial hardships.
It is important for all consumers to understand what type of debt relief program they are committing to before moving forward. Debt settlement is a legal process where individuals or companies hired on their behalf, negotiate with creditors to reduce delinquent balances in order to eliminate debt. Anyone considering this process must thoroughly research both the method and any company they consider hiring. There are several risks involved in the process however it can be the best option for people facing a serious financial hardship who would otherwise have to look toward bankruptcy to address their debt situation. It is unfortunate that some debt settlement companies continue to mislead or misrepresent themselves in order to enroll clients in their programs. Consumers are urged to carefully read any correspondence as well as contracts prior to enrolling in a debt settlement program to avoid confusion and disappointment down the road.
Oct/110
President Obama’s Government Grants For Debt Relief – The Benefits
With the recession that hit the nation in the past few months, the ability to clear debts had hit an all time low. The economy is picking up but there are situations where recovery is taking place slower than hoped. This is where Debt Relief Government Grants come in handy. Not many people know what these are and for those that do, believe that it is some kind of myth.
So what are debt relief government grants? These are the billions of dollars set aside for the purpose of debt relief for the common citizen. The main problem is that not many people that need it are aware of it but it is easy to get one. These debt relief government grants are offered to those that do not have the ability to settle their debts for one reason or the other.
One would most definitely wish to know how they can benefit from the government grants. One can hand in a proposal for a business or income-making ideas that will get the government’s interest. The idea is to give money to the public to begin income-generating projects that will enable one to settle their bills and debts. It is also given to those that need to settle such bills as medical and hospital bills. It also helps in avoiding home foreclosures or even the need to declare bankruptcy. It is important to write a proposal that will benefit you. Be sure to train or research on the best kinds of proposals to write and in that way be assured of debt relief approval
The advantage with government grants for debt management is that it is NOT a loan. This means that collateral does not have to be placed against the amount taken, one does not have to pay it back and most importantly be able to prove without any reasonable doubt that they cannot settle their outstanding bills and debts.
Debt relief companies come in many shapes and forms. The way to know the best is that they are mostly non-governmental organizations. They also should do a thorough background check of your financial past and should have a successful history of debt settlement and relief. These companies charge for their services so it is important to choose a credible one or else one can lose a lot more than the initial debt situation. There are also different tools to make the application for a grant a easy task.
Oct/110
Debt Consolidation Lenders – 3 Tips on Finding The Best One
If you need to get control of all the bills, paperwork and account statements that keep flooding your mailbox, you might want to consider debt consolidation. A debt consolidation lender can help you merge all those accounts into one single loan. So how do you find one? Try:
Looking online!
Do an Internet search for words like “debt consolidator,” “debt consolidation,” or “debt management.” Chances are you’ll find thousands of companies that can help you consolidate your accounts into one manageable bill. In general, these companies don’t loan you money. Instead, they work with your creditors and you to come up with a monthly payment plan. They take a lump sum payment from you each month, and then divvy it up and send out the appropriate amounts to all your creditors. Essentially, they do your bill-paying for you!
Checking regular banks!
You might also want to consider getting a debt consolidation loan from a regular bank, credit union or other traditional lender. Some will give you a Home Equity Loan or Home Equity Line of Credit, which will provide you with the cash you need to pay off your creditors. After that, you’ll only have to worry about paying off your Home Equity Loan! Others might give you a personal loan or other type of debt consolidation loan, especially if you can secure it with collateral, such as a car or stocks and bonds.
Asking friends and family!
It might seem like you’re the only person who has ever needed to consolidate debt, but chances are you’re not alone. Most folks have found themselves in a sticky financial situation at some point in time. Ask close friends and family if they have any experience with debt consolidation lenders. It’s likely that someone will be able to recommend a service or company that can meet your needs.
Try using one of ABC Loan Guide’s Recommended Debt Consolidation Companies Online.
There are lots of different options for debt consolidation loans, depending on your personal circumstances like home ownership, available collateral and your credit score. Before making a decision, be sure to explore various options so you can find the best loan for your situation.
Oct/110
Debt Restructuring Companies
Debt restructuring, with the help of a legitimate company, can be a great way to eliminate your debts quickly and increase your credit score in a short period of time. Unfortunately, in recent years there has been a dramatic increase in the number of debt resolution companies who take advantage of trusting consumers. Some of these so called professional companies have even been known to drag the consumer unknowingly into illegal activities that could result in jail time.
How to Spot Fake Debt Resolution Companies
Just because a company seems to offer good debt management programs, does not mean that they are legitimate. You should always be on the lookout for services that are trying to take advantage of your unfortunate position. Common warning signs of fake debt restructuring companies include:
o Asking you for money up front. A legitimate debt management company will never ask you for money in advance.
o Failing to give you information on your rights as a consumer. A good debt management company will explain your credit management rights in detail.
o Not detailing their various debt management programs. If a business can’t tell you in detail how each of their programs or services work, then they are more than likely an illegitimate company.
o Trying to convince you to create a new credit file. Some imposter companies will try and get you to sign up for an EIN and use that instead of your social security number for credit, but this is illegal.
Choosing a Legitimate Debt Restructuring Company
There are ways to recognize fake companies, but there are also ways to go about choosing legitimate ones as well. If you find yourself drowning in debt and needing help with credit management, then you should not hesitate to seek out a reputable business that can help you meet your financial goals. Below are some of the ways you can go about locating such a company.
o Look for company reviews online, ask friends or family members for referrals, or check the company’s record with the Better Business Bureau. Doing these things can help you ensure that the debt management company you are considering is upstanding.
o Search for a business that has a clear outline and plan of action for managing your debt. If a company is upfront about their particular debt management programs, they are less likely to be a scam.
o Always choose a company that does not require payment upfront for their services.
The warning signs above can help you spot a fake debt resolution company right away. They can also help you decide which companies would be best to restructure your debt. Using caution when choosing a business to help you with credit and debt management is one of the best things you can do to ensure that you are not taken advantage of and put in an even worse situation. Seeking the help of a professional is a wise idea when you are dealing with financial issues that you do not fully grasp; but you could save yourself a lot of trouble and money by making sure that you choose a reputable company to work with.