Archive for the ‘debt’ Category

New FTC Rules Curb Shady Debt-settlement Companies

Thursday, October 14th, 2010

Millions of Americans are deep in credit card debt – a situation that spelled opportunity for shady debt-settlement companies.

In an effort to protect consumers from their fraudulent practices, the Federal Trade Commission (FTC) created new regulations which will go into effect on October 27.

These regulations apply to for-profit companies offering debt negotiation, debt settlement, and credit counseling. The rules don’t apply to nonprofit companies, but do apply to for-profit companies that claim to be nonprofit.

The primary provisions of the new regulations are:

* Agreements must be in the form of a written contract which outlines the work to be performed and the payment to be charged

* The company must reveal how much time it will take to see results

* The company must disclose the pitfalls of using a debt relief service

* Companies may not collect an up front fee

* Companies must successfully settle or negotiate at least one of the consumer’s debts and the consumer must make at least one payment to the creditor before any fees are paid.

* Fees must be based upon results. If a consumer has 5 debts and the company settles only one, they may not collect the full fee

* The rules covering telemarketing are expanded to cover calls made from the consumer to the company.

One detail not covered by the new FTC rules is the dollar amount of the fees to be charged for services rendered.

Since scammers continually work to find ways around regulations, consumers should be cautious. Not only will some for-profit companies pose as nonprofit companies, some will undoubtedly claim to be implementing government programs.

Thus, before you consider working with any debt relief company, do your research. Contact the Better Business Bureau, the FTC, or the Office of Consumer Affairs before signing a contract with any company. The Better Business Bureau has extensive files documenting thousands of consumer complaints about debt-settlement companies across the country.

Many consumers would be better off contacting their creditors themselves and trying to work out a repayment plan. Not only will they save money, they’ll have better assurance that their creditor won’t sue.

In general, debt relief companies will try to negotiate a smaller balance with creditors. If successful, they’ll collect funds from the consumer until they have enough to settle the debt entirely. This could mean a delay of several months, or even years before the creditor is paid. Impatient creditors may well bring suit before the balance is paid.

Mike Clover

CreditScoreQuick.com

Considering Debt Settlement Services? Use the Telephone

Tuesday, October 5th, 2010

The “Final Rule” imposed by the Federal Trade Commission contains some strange quirks. One of them applies to the disclosures now required by debt settlement companies.

For whatever reason, the new regulations affecting debt settlement companies apply only to those transactions in which the initial contact was made over the phone.

It doesn’t matter if they called you or you called them, as long as that first contact was by phone.

If you visit a debt settlement office in person, or if you fill out an online form, all bets are off. So, if you decide to follow up with an email solicitation, don’t go to the website. If you want to know more about services offered, pick up the telephone.

Before you take even this step, remember that whatever they can do, you can do.

Your first step should be to review your credit report. The second step should be to call each of your credit card companies and other creditors to see if you can personally work out a debt settlement arrangement. Then, don’t sign anything until you see a concrete proposal, in writing.

If you feel unsure about what you’re signing, consult with an attorney.

Why should you contact creditors yourself rather than use a debt settlement service?

Because debt settlement companies can get you deeper in debt.

Just because they must disclose things such as the total cost to you and the amount of time they’ll need to reach an agreement with your debtors doesn’t mean using them will be in your best interests.

Think about this: If you pay $1,000 to a debt settlement service, you could have instead applied that $1,000 to outstanding debt and be closer to becoming debt-free.

And, if they collect and hold funds from you for dispersal to your creditors, months could go by with no payments credited to your accounts. In the ensuing months, your debt will be growing, and the creditor could sue you for non-payment.

Meanwhile, your credit scores will be falling quickly as your credit report shows you farther and farther in arrears.

Another clause in the new regulations prohibits these companies from collecting fees from you until after they’ve gotten the promised results. So if a debt settlement service asks you for an up-front fee, run the other way.

Think about this as well: Debt experts fully expect that some of these debt settlement companies will be finding ways around the regulations for telephone solicitations.

Why would you trust such a company with your money, or with your credit future?

Reduce debt with Debt Consolidation Q & A

Wednesday, May 28th, 2008

Debt consolidation is becoming the wave of the future currently. We are starting to get more and more questions about how to get out of debt. We have partnered with a company that provides a unique approach called debt elimination. This company is based here in Texas with us. CreditSolutions is the name and they have received a very powerful award by JD Power & Associates for customer service.


Credit Solutions of America, Inc.

Q:
Hi Mike,
I am self employed and have accumulated $75,000 in consumer debt, mainly because of this downturn in the economy. I own a company where I was providing handy man work for realtors in the California area. With the current market in California, my cash flow has almost come to a stop. What would you suggest I do? I have run through my savings, and cannot pay this debt currently.
Johnny Carbelo

A:
Hi Johnny,
We have definitely seen the issues in California, and how it’s affecting people in that state. If you don’t have income coming in to pay the debt, you definitely need to look at your options. I work with a company that provides debt consolidation of a different kind. In other words they provide a service they like to call debt elimination. This would be my first step in trying to resolve your debt issues. These guys can get you out of debt within 36 months. Go to our link on the front of our website and select the get out of debt link.

CreditScoreQuick.com

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Tips to avoid Debt Consolidation and Bankruptcy

Monday, May 19th, 2008

High debt will not only affect your credit report but it will affect your personal life. Living debt free does require some life style changes for the better. Having too much consumer debt is like a black cloud lingering over you. In this article we will discuss some money saving tips so you don’t have to get into a debt consolidation program or even file bankruptcy. By following some of these money saving Tips you will be able to pay down debt and save more.


Credit Solutions of America, Inc.

• Car Pool
With the cost of gas prices sky rocketing and no end in sight, car pooling is a great way to save hundreds of dollars each month. Find a few people that live close by and start car pooling.

• Bulk Stores
There are stores where you buy everything in bulk, like groceries, furniture, computers, etc…. By using one of these stores there is usally a membership fee once a year, but the savings will quickly recoup that cost. A bulk store example would be Sams and Costco.

• Don’t eat out
Going out to eat everyday for lunch gets very costly. If you were to bring your lunch to work everyday, could save you hundreds a month. Alos not eating out everyday will not only save you lots of money, but it could save your health. Fast food is bad for you anyways.

• Coupons
By cutting out coupons in the Sunday paper you can save a ton of money. Some stores will match or beat competitor’s offers as well. Just by taking the time to cut out coupons in the Sunday paper, you could find yourself saving hundreds as well.

• Garage Sale
If you are like most people I am sure you have the pack rat syndrome. With all that STUFF you have been saving, you could probably have a garage sale and acquire a nice savings.

• Utilities
You can save money with on utility bills by doing the following
1. Turn down the heat
2. Turn up the air condition
3. Turn off lights and TVs when not using them.
4. Turn of the water when shaving and brushing your teeth

With your credit being so important these days, make sure you are heading towards the wonderful goal of financial freedom. It will be hard to get there if you are not being frugal.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Debt Consolidation Vs. Debt Elimination

Monday, May 19th, 2008

Debt consolidation can help reduce your monthly payment with multiple credit card companies, but with debt elimination you can relieve your debt and burdens more effectively by eliminating debts. Debt consolidation requires you to pay back your debts on the principal plus interest. With the service we provide you reduce you debt paid on debt balance, save money, and eliminate your debt in less than 36 months.


Debt Consolidation
Debt consolidation loans combine all debts into one payment for an extended period of time with a low interest rate, which will extend the total interest payments throughout the life of the loan.

The program we are able to provide will eliminate debt and save large amounts of money. During this process a highly trained representative will act on your behalf to resolve debt by bargaining with your creditors to negotiate a payment. An advisor will resolve debt reduction for you.

Reduce Debt Quickly
By only having to pay on a reduced credit card balance with the service we are talking about, you resolve your debt quickly. Debt consolidation typically puts all your credit card debt into a 15 to 30 year mortgage. With the interest paid on a debt consolidation you end up paying more on the balances owed due to the term.

The service we are talking about will save you more money and eliminate debt a lot quicker than debt consolidation. Plus this service will look a lot better on your credit report than a bankruptcy.

Credit Solutions of America, Inc.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

SNL Skit – Don’t buy stuff you can’t afford !!

Monday, April 7th, 2008

A great SNL skit featuring Steve Martin that really simplifies the truth of the matter with people who are in debt and don’t know how to get out. Not only is it funny but it is true!
I thought this was a great video, due to the current times out there.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Disclaimer: This information has been compiled and provided by CreditScoreQuick.com as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.