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What’s in a Credit Score?
With a FICO based score, the higher the number, the better your score.
Score above 720 usually considered excellent
Score 850 is usually tops
Score 680 to 720 range are still quite good
Score 650 to 680 range aren’t terrible, but will carry higher rates
Below 650, you may have some trouble getting credit or be charged high rates
These are general rules of thumb, though, since every lender has different criteria.
Accordingly to Fair Isaac Company, 5 categories of information (along with their relative weightings) go into your credit score:
Payment history---------------------35%
Amounts you owe------------------30%
Length of credit history-----------15%
New credit-------------------------- 10%
Type of credit in use--------------- 10%
It’s obvious that your payment history is the most important factor in your score. But there are some finer points here that you may not be aware of:
Most lenders don’t report you as late to the credit bureaus until you fall behind by 30 days. (But they will often charge you a hefty late fee if you are just one hour late with your payment). This isn’t a hard and fast rule so always be sure to double check if you’re having trouble meeting the due date. Sometimes lenders will close your account or up your rate if you are chronically late, even by just a few days.
Recent late payments, even for small amounts, hurt your credit score significantly.
Late payments will generally remain for 7 years, even if you catch up on the account or pay off the bill.
All other things being equal, how many months you fell behind is more important than the amount. For examples, missing $20 minimum payment for 4 months in a row will probably impact your score more than missing a $300 car payment one time.
Account balances, however, play more of a role in a score than most people realize. It’s not uncommon to hear “I have excellent credit” from a consumer who has paid on time but has a ton of debt, and whose score is suffering as a result. There are several factors that will come into play in this evaluation:
How close you are to your limits on your revolving accounts such as credit cards and lines of credit. The closer you are to your limits, the worse it can be for the score
How much you owe on your total revolving lines of credit. Total up all your available revolving lines of credit and then total your outstanding balances. As you use 50% or more of your available credit on your revolving accounts, your score can start to suffer.
How much you owe compared to other consumer across the country
Source: The ABC’s of getting out of debt - Sutton, Garrett
What’s in a Credit Score?
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Selasa, 22 April 2008
Sabtu, 05 April 2008
Student Loan Consolidation - More Options on Student Loan Owe
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Student Loan Consolidation - More Options on Student Loan Owe
Graduated Repayment Plan
With one of these plans, your payments start our low and will rise over time. This plan is often good for a student who is just starting out and expects their salary to increase as they gain more experience.
Caution: One of these plans can stretch your loan out as ling a s 30 years.
Extended Repayment Plan
An extended repayment plan allows you to pay your student loan over 12 to 30 years instead of the standard 10 years. It is more expensive, but if the lower payments keep you out of default, it should be worth it.
Income Contingent Plan
With one of these plans, your payment is based on your adjust gross income (AGI), as reported on your U.S. income tax return, your family size, the interest rate, and the total amount of your Direct Loan debt.
Consolidation
If you have more than one student loan, you may be able to consolidation them into a lower cost single payment loan. This can save you money if the new payment is lower than your previous combined payment, which if often the case because it is a new loan. Your consolidated student loan payment is based on the average interest rate on the student loans you are consolidating. Your consolidated rate is set by the government. So, there is not is not a whole lot of advantage in shopping around among different lenders.
In some cases, consolidating your student loan can also take you out of default, which can benefit you in a couple of ways. One way, of course, is by halting the collection costs associated with a defaulted student loan. The other way it can benefit you is that it can help your credit report. If you make 12 conservative on time payments on a student loan that you brought out of default, the previous late payments can be erased.
Be A Smart Borrower
It’s not unusual for student loans to be sold, or for a student to have eight or more loans! It can be tough keeping track of them all. Lose track of a loan though, and you may quickly find yourself in student loan hell. The Department of Education offers these tips for being smart borrower, and they’re good ones:
Keep all your loan documents
This simply piece of advice is one of the most important. You’ll have problems later if you can’t find your promissory note, can’t remember what type of loans you received, or don’t know who you’re supposed to repay or how you go about postponing (deferring) repayment if you have financial difficulties. Keep a file of all documents connected with your loans from the time you first get a loan, so you’ll always have what you need in one place. Then you won’t be confused about what you’re supposed to do or who you’re supposed to contact if you have questions.
Keep records
Whenever you talk to your lender or land servicer, keep a record of the person you talk to, the date you had the conservation, and what was said, If you send letters, always include your loan account number, and keep copies of those letters (and the responses you receive) in your file. That way, you’ll know who said what and when, which can help you avoid problems and misunderstandings.
Notify your school and/or loan holder in writing
If you move, change your name or Social Security number, or reenroll in school, you must make sure your loan holder won’t lose track of you. If that happens, you could miss payments and become delinquent (late). Also your loan could be sold, and you won’t know who has it or where to send payment because you couldn’t be notified.
Ask questions
If there’s something you don’t understand or if you’re having trouble making payments, ask. Don’t wait until things become too tough, ask for help from your loan holder or loan servicer right away!
Source: The ABC’s of getting out of debt - Sutton, Garrett
Student Loan Consolidation - More Options on Student Loan Owe
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Student Loan Consolidation - More Options on Student Loan Owe
Graduated Repayment Plan
With one of these plans, your payments start our low and will rise over time. This plan is often good for a student who is just starting out and expects their salary to increase as they gain more experience.
Caution: One of these plans can stretch your loan out as ling a s 30 years.
Extended Repayment Plan
An extended repayment plan allows you to pay your student loan over 12 to 30 years instead of the standard 10 years. It is more expensive, but if the lower payments keep you out of default, it should be worth it.
Income Contingent Plan
With one of these plans, your payment is based on your adjust gross income (AGI), as reported on your U.S. income tax return, your family size, the interest rate, and the total amount of your Direct Loan debt.
Consolidation
If you have more than one student loan, you may be able to consolidation them into a lower cost single payment loan. This can save you money if the new payment is lower than your previous combined payment, which if often the case because it is a new loan. Your consolidated student loan payment is based on the average interest rate on the student loans you are consolidating. Your consolidated rate is set by the government. So, there is not is not a whole lot of advantage in shopping around among different lenders.
In some cases, consolidating your student loan can also take you out of default, which can benefit you in a couple of ways. One way, of course, is by halting the collection costs associated with a defaulted student loan. The other way it can benefit you is that it can help your credit report. If you make 12 conservative on time payments on a student loan that you brought out of default, the previous late payments can be erased.
Be A Smart Borrower
It’s not unusual for student loans to be sold, or for a student to have eight or more loans! It can be tough keeping track of them all. Lose track of a loan though, and you may quickly find yourself in student loan hell. The Department of Education offers these tips for being smart borrower, and they’re good ones:
Keep all your loan documents
This simply piece of advice is one of the most important. You’ll have problems later if you can’t find your promissory note, can’t remember what type of loans you received, or don’t know who you’re supposed to repay or how you go about postponing (deferring) repayment if you have financial difficulties. Keep a file of all documents connected with your loans from the time you first get a loan, so you’ll always have what you need in one place. Then you won’t be confused about what you’re supposed to do or who you’re supposed to contact if you have questions.
Keep records
Whenever you talk to your lender or land servicer, keep a record of the person you talk to, the date you had the conservation, and what was said, If you send letters, always include your loan account number, and keep copies of those letters (and the responses you receive) in your file. That way, you’ll know who said what and when, which can help you avoid problems and misunderstandings.
Notify your school and/or loan holder in writing
If you move, change your name or Social Security number, or reenroll in school, you must make sure your loan holder won’t lose track of you. If that happens, you could miss payments and become delinquent (late). Also your loan could be sold, and you won’t know who has it or where to send payment because you couldn’t be notified.
Ask questions
If there’s something you don’t understand or if you’re having trouble making payments, ask. Don’t wait until things become too tough, ask for help from your loan holder or loan servicer right away!
Source: The ABC’s of getting out of debt - Sutton, Garrett
Student Loan Consolidation - More Options on Student Loan Owe
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Student Loan Consolidation - Student Loan Deferment and Forbearance
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Student Loan Consolidation - Student Loan Deferment and Forbearance
Deferment
Deferment allows you to temporarily postpone payments on your loan. If you have a subsidized loan, including Perkins Loans, interest won’t be charged during the deferment. If your loan is unsubsidized, you will be responsible for the interest on the loan during the deferment.
Forbearance
If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you may receive forbearance for a limited and specific period. During forbearance, your payments are postponed or reduced. Whether your loans are subsidized or unsubsidized, you will be charge interest. Forbearance may be available because you are:
Unable to pay due to poor health or other unforeseen personal problems
Serving in a medical or dental internship or residency
Making federal student loan payments that are equal to or greater than 20% f your monthly gross income.
It is important that you contact your lender about deferment or forbearance before you fail behind on your payments. If you wait until you are behind, you may not be eligible. Continue making your payments until your deferment or forbearance is approved.
In addition, the fat that you are in a forbearance or deferment arrangement may be reported on your credit report and may be considered negative. It may, however, keep you out of default, which can be very expensive and will worse for your credit rating.
Source: The ABC’s of getting out of debt - Sutton, Garrett
Student Loan Consolidation - Student Loan Deferment and Forbearance
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Student Loan Consolidation - Student Loan Deferment and Forbearance
Deferment
Deferment allows you to temporarily postpone payments on your loan. If you have a subsidized loan, including Perkins Loans, interest won’t be charged during the deferment. If your loan is unsubsidized, you will be responsible for the interest on the loan during the deferment.
Forbearance
If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you may receive forbearance for a limited and specific period. During forbearance, your payments are postponed or reduced. Whether your loans are subsidized or unsubsidized, you will be charge interest. Forbearance may be available because you are:
Unable to pay due to poor health or other unforeseen personal problems
Serving in a medical or dental internship or residency
Making federal student loan payments that are equal to or greater than 20% f your monthly gross income.
It is important that you contact your lender about deferment or forbearance before you fail behind on your payments. If you wait until you are behind, you may not be eligible. Continue making your payments until your deferment or forbearance is approved.
In addition, the fat that you are in a forbearance or deferment arrangement may be reported on your credit report and may be considered negative. It may, however, keep you out of default, which can be very expensive and will worse for your credit rating.
Source: The ABC’s of getting out of debt - Sutton, Garrett
Student Loan Consolidation - Student Loan Deferment and Forbearance
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Jumat, 04 April 2008
Student Loan Consolidation - Strategies for Coping with High Levels of Student Loan Debt
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Student Loan Consolidation - Strategies for Coping with High Levels of Student Loan Debt
Cancellation
Student loans may be cancelled in part or in full for any of the following:
Total and permanent disability. Loans may be discharged if a doctor certifies that you are totally and permanently disabled and unable to work or earn money
School closure. IF you received a student loan at a school that closed before you completed your studies, you may be eligible for discharge of your loan.
Ability to benefit. Your loan can be discharged if the school admitted you based on your ability to benefit from the training but you weren’t properly tested to measure that ability or you failed the test.
Child and family services cancellation. You may be eligible to cancel your student loan if you are solely “providing or supervising the provision of services to high risk children who are from low income communities and the families of those children”
Teacher cancellation discharge. You may be eligible to cancel your student loan if you are teaching full time at a low income school, as determined by your state’s education agency; are a special education teacher, including teacher of infants, toddlers, children, or youths with disabilities, or teach in the fields of mathematics, science, foreign languages, or bilingual education, or in any other field of expertise determined by a state education agency to have a shortage of qualified teachers in that state.
Forged signature. If someone forged your signature on the loan application, promissory note, or authorization for electronic funds transfer, you may qualify for a loan discharge.
School owes you a refund. You may also qualify for partial discharge of and FFEL or Direct Loan if your school failed to pay a tuition refund required under federal law.
Death. If you die with an outstanding student loan, your federal student loan, your federal student loan debt will be discharged. Your estate will not owe any money on your loan.
Source: The ABC’s of getting out of debt - Sutton, Garrett
Student Loan Consolidation - Strategies for Coping with High Levels of Student Loan Debt
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Student Loan Consolidation - Strategies for Coping with High Levels of Student Loan Debt
Cancellation
Student loans may be cancelled in part or in full for any of the following:
Total and permanent disability. Loans may be discharged if a doctor certifies that you are totally and permanently disabled and unable to work or earn money
School closure. IF you received a student loan at a school that closed before you completed your studies, you may be eligible for discharge of your loan.
Ability to benefit. Your loan can be discharged if the school admitted you based on your ability to benefit from the training but you weren’t properly tested to measure that ability or you failed the test.
Child and family services cancellation. You may be eligible to cancel your student loan if you are solely “providing or supervising the provision of services to high risk children who are from low income communities and the families of those children”
Teacher cancellation discharge. You may be eligible to cancel your student loan if you are teaching full time at a low income school, as determined by your state’s education agency; are a special education teacher, including teacher of infants, toddlers, children, or youths with disabilities, or teach in the fields of mathematics, science, foreign languages, or bilingual education, or in any other field of expertise determined by a state education agency to have a shortage of qualified teachers in that state.
Forged signature. If someone forged your signature on the loan application, promissory note, or authorization for electronic funds transfer, you may qualify for a loan discharge.
School owes you a refund. You may also qualify for partial discharge of and FFEL or Direct Loan if your school failed to pay a tuition refund required under federal law.
Death. If you die with an outstanding student loan, your federal student loan, your federal student loan debt will be discharged. Your estate will not owe any money on your loan.
Source: The ABC’s of getting out of debt - Sutton, Garrett
Student Loan Consolidation - Strategies for Coping with High Levels of Student Loan Debt
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Student Loan Woes – Need Student Loan Consolidation
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Student Loan Woes – Need Student Loan Consolidation
Today’s students need to graduate with degrees in debt management. Consider these statistics from Consolidated Credit Counseling Services:
85% of undergraduate students have at least one credit card
41% of students carry credit card debt with an average balance of $3,071
39% of students now graduate with unmanageable student loan debt\1.3 of college seniors graduate with $20,000 or more in students loan debt
Just over half of students who used loans to pay for college say they feel burdened by their debt
73% of parents of graduating seniors said they expect their son or daughter to take a job at a salary that would require some sort of financial boost from them. Within that group, 38% said their child might have to move back home with them.
Only 44% of college students clearly understand the term budget
While credit card debt among students is a growing problem, it’s often tiny compared to the problem of student loan debt. Higher education costs are now so high that many students have no choice but to borrow. And they often borrow as much as they can, assuming that they’ll have no trouble paying the loan back when they start working and earning a salary.
Many students (and their parents) also assume a higher education will “pay off” with a higher salary or perks, regardless of the field they are entering. It’s not unusual for would-be schoolteachers or social workers, for example, to graduate with student loan debt of $30,000 or more.
Falling behind on a student loan can be expensive. The collection costs can be high, in addition to the interest you may already be paying. There is no statue of limitations for collecting most student loan debts. Unlike other debts where collectors have only a certain number of years to sue you, student loan debts can haunt you for years and years. Also, it is difficult to discharge most student loans in bankruptcy.
In additional, you will have trouble getting student loans in the future, your income tax refund may seized, you may be subject to wage garnishment without first being taken to court, and you will find it difficult to catch up as well as pay off that student loan debt in the future.
However, there is some good news. If you are in default and enter a loan rehabilitation program, then make 12 consecutive on time payments (note, you can’t be one day late on those payments!), you can bring your loan out of default. When you do, your previous late payments will be removed from your credit report. Another option for getting out of default is to find out whether it is possible to consolidate your student loan out of default.
Source: The ABC’s of getting out of debt - Sutton, Garrett
Student Loan Woes – Need Student Loan Consolidation
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Student Loan Woes – Need Student Loan Consolidation
Today’s students need to graduate with degrees in debt management. Consider these statistics from Consolidated Credit Counseling Services:
85% of undergraduate students have at least one credit card
41% of students carry credit card debt with an average balance of $3,071
39% of students now graduate with unmanageable student loan debt\1.3 of college seniors graduate with $20,000 or more in students loan debt
Just over half of students who used loans to pay for college say they feel burdened by their debt
73% of parents of graduating seniors said they expect their son or daughter to take a job at a salary that would require some sort of financial boost from them. Within that group, 38% said their child might have to move back home with them.
Only 44% of college students clearly understand the term budget
While credit card debt among students is a growing problem, it’s often tiny compared to the problem of student loan debt. Higher education costs are now so high that many students have no choice but to borrow. And they often borrow as much as they can, assuming that they’ll have no trouble paying the loan back when they start working and earning a salary.
Many students (and their parents) also assume a higher education will “pay off” with a higher salary or perks, regardless of the field they are entering. It’s not unusual for would-be schoolteachers or social workers, for example, to graduate with student loan debt of $30,000 or more.
Falling behind on a student loan can be expensive. The collection costs can be high, in addition to the interest you may already be paying. There is no statue of limitations for collecting most student loan debts. Unlike other debts where collectors have only a certain number of years to sue you, student loan debts can haunt you for years and years. Also, it is difficult to discharge most student loans in bankruptcy.
In additional, you will have trouble getting student loans in the future, your income tax refund may seized, you may be subject to wage garnishment without first being taken to court, and you will find it difficult to catch up as well as pay off that student loan debt in the future.
However, there is some good news. If you are in default and enter a loan rehabilitation program, then make 12 consecutive on time payments (note, you can’t be one day late on those payments!), you can bring your loan out of default. When you do, your previous late payments will be removed from your credit report. Another option for getting out of default is to find out whether it is possible to consolidate your student loan out of default.
Source: The ABC’s of getting out of debt - Sutton, Garrett
Student Loan Woes – Need Student Loan Consolidation
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Sub Prime Mortgage Troubles
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Sub Prime Mortgage Troubles
If you have a mortgage and are having trouble keeping up with the payments?
If you’re falling behind on your mortgage it’s important to get a plan to gather quickly and act on it. It’s easy to feel overwhelmed and afraid. But waiting too long can cost your home.
Many good, hardworking, honest people lose their home to foreclose and one of the main reasons is that they simply refuse to acknowledge that they are in trouble. They keep waiting or hoping for a solution to bail them out, and it doesn’t. If you’re in trouble, work on a solution now!
How the foreclosure works depends on which state you live in, and can take a very short time or as long as a year and a half.
If you do lose your home to foreclosure, and the foreclosing lender gets less than is owed (plus expenses) from the sale, there is a deficiency. For example, if you owed $100,000 on your mortgage and the lender incurred $7,000 in expenses foreclosing and selling the property, then received only $90,000 in the sale, there is a deficiency of $17,000. ($100,000 + $7,000 - $90,000). If there is a deficiency, you may face two nasty surprises.
The lender may have to report this “forgiven” amount to the IRS on a 1099-C, and you’ll be expected to pay taxes on it as if it were income to you. If that’s the case, make sure you talk with a tax advisor who may be able to help you wipe out that tax debt if you are insolvent.
The lender may sue you for the deficiency, the difference between what you owed plus expenses and what they received in the sale of the property. That means that you may still have a lender trying to collect form even after the foreclosure.
If you had a second loan or other liens on the property, and the lender with the first mortgage foreclosure. The important exception is tax liens, which must be paid before the property can be sold again.
So it’s often better to avoid foreclosure if you can, you can find the article “Strategies To Avoid Foreclosure” in this blog.
Source: The ABC’s of getting out of debt - Sutton, Garrett
Sub Prime Mortgage Troubles
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Sub Prime Mortgage Troubles
If you have a mortgage and are having trouble keeping up with the payments?
If you’re falling behind on your mortgage it’s important to get a plan to gather quickly and act on it. It’s easy to feel overwhelmed and afraid. But waiting too long can cost your home.
Many good, hardworking, honest people lose their home to foreclose and one of the main reasons is that they simply refuse to acknowledge that they are in trouble. They keep waiting or hoping for a solution to bail them out, and it doesn’t. If you’re in trouble, work on a solution now!
How the foreclosure works depends on which state you live in, and can take a very short time or as long as a year and a half.
If you do lose your home to foreclosure, and the foreclosing lender gets less than is owed (plus expenses) from the sale, there is a deficiency. For example, if you owed $100,000 on your mortgage and the lender incurred $7,000 in expenses foreclosing and selling the property, then received only $90,000 in the sale, there is a deficiency of $17,000. ($100,000 + $7,000 - $90,000). If there is a deficiency, you may face two nasty surprises.
The lender may have to report this “forgiven” amount to the IRS on a 1099-C, and you’ll be expected to pay taxes on it as if it were income to you. If that’s the case, make sure you talk with a tax advisor who may be able to help you wipe out that tax debt if you are insolvent.
The lender may sue you for the deficiency, the difference between what you owed plus expenses and what they received in the sale of the property. That means that you may still have a lender trying to collect form even after the foreclosure.
If you had a second loan or other liens on the property, and the lender with the first mortgage foreclosure. The important exception is tax liens, which must be paid before the property can be sold again.
So it’s often better to avoid foreclosure if you can, you can find the article “Strategies To Avoid Foreclosure” in this blog.
Source: The ABC’s of getting out of debt - Sutton, Garrett
Sub Prime Mortgage Troubles
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Kamis, 03 April 2008
Strategies To Avoid Housing Foreclosure – One way Refinance Home Loan
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Strategies To Avoid Housing Foreclosure – One way Refinance Home Loan
Catch up on your payments
In some states, you can stop the foreclosure by paying the amount you are behind plus any other fees due. In some states, this does not stop the lender from foreclosing. Of course, if you could do this you might not be in trouble in the first place.
Sell
If the market is strong and you have enough equity in your home to pay the closing costs associated with a sale, you may be best off selling your home. The lender may even put your foreclosure on hold for a little longer to allow you to do that. Be sure to get any agreements from the lender to that effect in writing.
If you are behind on your payments, think twice about trying to sell your home “by owner” or with a part time agent to save on the real estate commission. If you are pressed for time, your best bet is to get a full time agent with a excellent track record who will price and market your home aggressively for a fast sale. Also watch out for real estate agents who throw out a high sales figure just to get your listing. You need to be realistic in your expectations, and get the house sold before you lose it.
Rent It
If your monthly payment is attractive, you may be able to find a renter who can cover your payments while you work out your financial difficulties. This is risky for you, of course, because if the renter can’t, or doesn’t, pay, you’ll be trying to evict them while scrambling to keep your home. If you consider this option, make sure you hire a company to do a full background check on your tenant, get a healthy deposit plus first and last month’s rent, and consider using a management company to manage the property for a monthly fee.
Refinance It
If you have equity in your home, you m ay be able to refinance it out of pre-foreclosure. It can be tricky, though, and the last thing you want to do is waste your time with a mortgage lender or broker who promises you the world then can’t get the loan. Also watch out for very high interest rates or prepayment penalties that will make it difficult to sell if you need to. When you’re desperate to save your home, you may be willing to do just about anything, but predatory loans can make matters worse. Make sure you’re dealing with a broker or lender who has actually helped consumers in trouble, and don’t let them drag it out too long.
Work It Out
The lender may agree to modify your loan to allow you to catch up. Some of the modifications that can be worked out include:
Tack the payments you are behind onto the end of the loan
Allow you to catch up on the missed payments by adding them to your current payments for a few months
Allow you to pay only interest, plus any escrows for taxes and insurance for a period of time
Reduce your interest rate an penalties
Understand that the lender is going to want to see details of your financial situation both to support the fact that you are in a hardship situation, as well as to show that you will be able to get caught up and pay in the future. A workout would not be a realistic option, for example, if you have taken a significant cut in pay and have not secured extra income that would allow you to keep up with your bills.
File Bankruptcy
Filing bankruptcy can stall a foreclosure, but it does not wipe out your mortgage debt. Depending on your state’s laws, how far you are behind and what type of bankruptcy you file, you’ll still have to be able to work out a payment arrangement to catch up on your mortgage and then continue to make your payment arrangement to catch up on your mortgage and then continues to make your payment going forward. Sometimes, however, the stall is what you need to be able to sell your house or get an investor to buy it in a short sale situation (the court’s permission will be required). In other situations, a bankruptcy can wipe out other debts making it possible for you to keep up with the mortgage payment.
Source: The ABC’s of getting out of debt - Sutton, Garrett
Strategies To Avoid Housing Foreclosure – One way Refinance Home Loan
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Strategies To Avoid Housing Foreclosure – One way Refinance Home Loan
Catch up on your payments
In some states, you can stop the foreclosure by paying the amount you are behind plus any other fees due. In some states, this does not stop the lender from foreclosing. Of course, if you could do this you might not be in trouble in the first place.
Sell
If the market is strong and you have enough equity in your home to pay the closing costs associated with a sale, you may be best off selling your home. The lender may even put your foreclosure on hold for a little longer to allow you to do that. Be sure to get any agreements from the lender to that effect in writing.
If you are behind on your payments, think twice about trying to sell your home “by owner” or with a part time agent to save on the real estate commission. If you are pressed for time, your best bet is to get a full time agent with a excellent track record who will price and market your home aggressively for a fast sale. Also watch out for real estate agents who throw out a high sales figure just to get your listing. You need to be realistic in your expectations, and get the house sold before you lose it.
Rent It
If your monthly payment is attractive, you may be able to find a renter who can cover your payments while you work out your financial difficulties. This is risky for you, of course, because if the renter can’t, or doesn’t, pay, you’ll be trying to evict them while scrambling to keep your home. If you consider this option, make sure you hire a company to do a full background check on your tenant, get a healthy deposit plus first and last month’s rent, and consider using a management company to manage the property for a monthly fee.
Refinance It
If you have equity in your home, you m ay be able to refinance it out of pre-foreclosure. It can be tricky, though, and the last thing you want to do is waste your time with a mortgage lender or broker who promises you the world then can’t get the loan. Also watch out for very high interest rates or prepayment penalties that will make it difficult to sell if you need to. When you’re desperate to save your home, you may be willing to do just about anything, but predatory loans can make matters worse. Make sure you’re dealing with a broker or lender who has actually helped consumers in trouble, and don’t let them drag it out too long.
Work It Out
The lender may agree to modify your loan to allow you to catch up. Some of the modifications that can be worked out include:
Tack the payments you are behind onto the end of the loan
Allow you to catch up on the missed payments by adding them to your current payments for a few months
Allow you to pay only interest, plus any escrows for taxes and insurance for a period of time
Reduce your interest rate an penalties
Understand that the lender is going to want to see details of your financial situation both to support the fact that you are in a hardship situation, as well as to show that you will be able to get caught up and pay in the future. A workout would not be a realistic option, for example, if you have taken a significant cut in pay and have not secured extra income that would allow you to keep up with your bills.
File Bankruptcy
Filing bankruptcy can stall a foreclosure, but it does not wipe out your mortgage debt. Depending on your state’s laws, how far you are behind and what type of bankruptcy you file, you’ll still have to be able to work out a payment arrangement to catch up on your mortgage and then continue to make your payment arrangement to catch up on your mortgage and then continues to make your payment going forward. Sometimes, however, the stall is what you need to be able to sell your house or get an investor to buy it in a short sale situation (the court’s permission will be required). In other situations, a bankruptcy can wipe out other debts making it possible for you to keep up with the mortgage payment.
Source: The ABC’s of getting out of debt - Sutton, Garrett
Strategies To Avoid Housing Foreclosure – One way Refinance Home Loan
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Debt Help - How to Stop Debt Collector
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Debt Help - How to Stop Debt Collector
If you send a letter to a debt collector asking them to stop contacting you, they must stop. But it won’t stop them from taking legal action to collect the debt. You can still be sued for collection of the debt. It may make sense to write a “cease and desist” letter (just a fancy name for a letter telling them to leave you alone) if:
You believe the statue of limitations has expired (point that out in your letter)
You truly don’t have the money to pay it (include a succinct description of your hardship situation)
The debt collector is pressuring you to the point of creating unhealthy stress or physical side effects
You really don’t believe you owe the debt and figure a judge would side with you if it ends up in court (describe why you believe you don’t owe the debt)
Negotiating with Debt Collector
Collection accounts can often be negotiated for pennies on the dollar, especially if you can come up with a lump sum payment quickly. Most people are uncomfortable with negotiating but it’s one of the most important skills you can learn and hone. I recommend you start your negotiations about 25 cents on the dollar. The debt collector may insist that there is a minimum amount they can accept, and that may or may not be true. You don’t know. So you have to negotiate just as hard as they do.
It’s much easier for debt collectors to try to get you to pay more than for you to pressure them to take less because:
The more they collect, the more they are likely to be paid, so it affects their bottom line
It’s not as emotional for them as it if for you
They negotiate debts every day, you don’t
Two others thing to keep in mind:
Don’t agree to something you can’t afford. If you can’t afford what they are proposing, tell the debt collector you can’t and state that you’ll call back when you’ve pulled some more money together. If they start threatening you, keep written notes and tell them you’ll call back at another time.
Always try to get them to agree to remove any negative items from your credit report in exchange for payment. If they agree, you must get that in writing first, before you pay. Note that just listing a collection account as |paid” on your credit report is unlikely to raise your score.
There are companies that will do this negotiating for you if you’re too uncomfortable.
Source: The ABC’s of getting out of debt - Sutton, Garrett
Debt Help - How to Stop Debt Collector
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Debt Help - How to Stop Debt Collector
If you send a letter to a debt collector asking them to stop contacting you, they must stop. But it won’t stop them from taking legal action to collect the debt. You can still be sued for collection of the debt. It may make sense to write a “cease and desist” letter (just a fancy name for a letter telling them to leave you alone) if:
You believe the statue of limitations has expired (point that out in your letter)
You truly don’t have the money to pay it (include a succinct description of your hardship situation)
The debt collector is pressuring you to the point of creating unhealthy stress or physical side effects
You really don’t believe you owe the debt and figure a judge would side with you if it ends up in court (describe why you believe you don’t owe the debt)
Negotiating with Debt Collector
Collection accounts can often be negotiated for pennies on the dollar, especially if you can come up with a lump sum payment quickly. Most people are uncomfortable with negotiating but it’s one of the most important skills you can learn and hone. I recommend you start your negotiations about 25 cents on the dollar. The debt collector may insist that there is a minimum amount they can accept, and that may or may not be true. You don’t know. So you have to negotiate just as hard as they do.
It’s much easier for debt collectors to try to get you to pay more than for you to pressure them to take less because:
The more they collect, the more they are likely to be paid, so it affects their bottom line
It’s not as emotional for them as it if for you
They negotiate debts every day, you don’t
Two others thing to keep in mind:
Don’t agree to something you can’t afford. If you can’t afford what they are proposing, tell the debt collector you can’t and state that you’ll call back when you’ve pulled some more money together. If they start threatening you, keep written notes and tell them you’ll call back at another time.
Always try to get them to agree to remove any negative items from your credit report in exchange for payment. If they agree, you must get that in writing first, before you pay. Note that just listing a collection account as |paid” on your credit report is unlikely to raise your score.
There are companies that will do this negotiating for you if you’re too uncomfortable.
Source: The ABC’s of getting out of debt - Sutton, Garrett
Debt Help - How to Stop Debt Collector
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Debt Solution - How to Get Out of Debt
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Debt Solution - How to Get Out of Debt
Step #1: Stop accumulating bad (consumer) debt. Whatever you purchase via credit cards must be paid off in full at the end of each month. No exceptions.
Step #2: Make a list of all your consumer (bad) debts. This includes credit cards, car loans, school loans, home improvement loans on your personal residence, and any other bad debts you have acquired.
Step #3: Next to each item listed make 3 columns:
Amount Owed (Current balance)
Minimum Monthly Payment
Number of Months to Pay Off
Enter the appropriate numbers into each column. To arrive at the number of months to pay off, simply divide the amount owed by the minimum payment. But note that credit card companies use declining minimum payments. As your balance goes down, your payment goes down, which may affect the math here.
Step #4: Base solely on the number of months, begin ranking each debt. Put a 1 next to the lowest umber of months, a 2 next to the second lowest number, and continues up to the highest number of months. This is the order that you will be paying off your various debts.
The reason you start with the debt with lowest number of months is that you want to have your first win or success in the program as soon as possible. Once you get that first credit card (or debt) paid off you’ll begin to see the light at the end of the tuned.
Step #5: Come up with an additional $150 to $200 per month. If you are serious about getting out of debts, and more importantly, becoming financially free, then generating this extra money will not be difficult. To be candid, if you cannot generate an additional $150 per month then your chances of becoming financially independent are slim.
Step #6: Pay the minimum amount on very debt that you have listed except for the one you’ve marked with a 1. On this first debt to be paid off, pay the minimum amount plus the additional $150 to $200. Keep doing this every month until your first debt is paid off. Scratch that debt from your list.
Step #7: Congratulate yourself!
Step #8: Pay the minimum amount due on every debt that you have listed except for the one you’ve marked with a 2. To this debt, pay the minimum amount due plus the entire amount you’ve been paying on debt #1.
After each debt is paid off, take the total you were paying on that debt and add it to the minimum amount due on your next debt to get your new monthly payment. You will be amazed at how quickly this amounts adds up and how quickly your credit cards, car, loans, and so on are paid off.
Continue this process until all the debts on your list paid off.
Step #9: Congratulate yourself!
Step #10: By this time the monthly payment you were paying on your last debt is likely to be quite substantial. Keep paying that amount every month. Except now, instead of paying it to your creditor, you can pay it to yourself and build an emergency saving fund and then start investing. You’re on your way to building wealth!
Source: The ABC’s of getting out of debt - Sutton, Garrett
Debt Solution - How to Get Out of Debt
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Debt Solution - How to Get Out of Debt
Step #1: Stop accumulating bad (consumer) debt. Whatever you purchase via credit cards must be paid off in full at the end of each month. No exceptions.
Step #2: Make a list of all your consumer (bad) debts. This includes credit cards, car loans, school loans, home improvement loans on your personal residence, and any other bad debts you have acquired.
Step #3: Next to each item listed make 3 columns:
Amount Owed (Current balance)
Minimum Monthly Payment
Number of Months to Pay Off
Enter the appropriate numbers into each column. To arrive at the number of months to pay off, simply divide the amount owed by the minimum payment. But note that credit card companies use declining minimum payments. As your balance goes down, your payment goes down, which may affect the math here.
Step #4: Base solely on the number of months, begin ranking each debt. Put a 1 next to the lowest umber of months, a 2 next to the second lowest number, and continues up to the highest number of months. This is the order that you will be paying off your various debts.
The reason you start with the debt with lowest number of months is that you want to have your first win or success in the program as soon as possible. Once you get that first credit card (or debt) paid off you’ll begin to see the light at the end of the tuned.
Step #5: Come up with an additional $150 to $200 per month. If you are serious about getting out of debts, and more importantly, becoming financially free, then generating this extra money will not be difficult. To be candid, if you cannot generate an additional $150 per month then your chances of becoming financially independent are slim.
Step #6: Pay the minimum amount on very debt that you have listed except for the one you’ve marked with a 1. On this first debt to be paid off, pay the minimum amount plus the additional $150 to $200. Keep doing this every month until your first debt is paid off. Scratch that debt from your list.
Step #7: Congratulate yourself!
Step #8: Pay the minimum amount due on every debt that you have listed except for the one you’ve marked with a 2. To this debt, pay the minimum amount due plus the entire amount you’ve been paying on debt #1.
After each debt is paid off, take the total you were paying on that debt and add it to the minimum amount due on your next debt to get your new monthly payment. You will be amazed at how quickly this amounts adds up and how quickly your credit cards, car, loans, and so on are paid off.
Continue this process until all the debts on your list paid off.
Step #9: Congratulate yourself!
Step #10: By this time the monthly payment you were paying on your last debt is likely to be quite substantial. Keep paying that amount every month. Except now, instead of paying it to your creditor, you can pay it to yourself and build an emergency saving fund and then start investing. You’re on your way to building wealth!
Source: The ABC’s of getting out of debt - Sutton, Garrett
Debt Solution - How to Get Out of Debt
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Rabu, 02 April 2008
Chapter 13 Bankruptcy Eligibility Requirements (Part II)
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You Must Have Disposable Income
For you to qualify for Chapter 13 bankruptcy, you must have enough income in excess of your expenses, called your “disposable income”, to fund a repayment plan that meets Chapter 13 requirements. These requirements include full payment of your priority debts as well as payment of a percentage of your unsecured debts.
Your Proposed Payment Must Equal the Value of Your Non-Exempt Assets
The total amount of your payments proposed to be paid under your plan must be at least equal to what your creditors would have received had you filed for Chapter 7 bankruptcy, that is, the value of your nonexempt property. (“exempt” property is the property you would be allowed to keep if you file a Chapter 7 case.)
All Your Disposable Income Must Be Devoted To The Plan
Bankruptcy law requires that you pay al your disposable income into your Chapter 13 plan for a minimum of 36 months, unless you can pay off all of your debts in less time. On the other hand, if making 36 monthly payments will not be enough to repay the minimum amount required by the court, you will have to do one of the following:
a) Ask the court to approve a plan that lasts more than 36 months. The court can authorize a plan of up to 60 months (5 years)
b) Increase your monthly disposable income, usually be decreasing your expenses, so that more money is distributed to your creditors each month.
c) Before you file, sell property to pay down your debts so that your disposable income will be enough to fund the plan.
Your Plan Must Pay 100% of Certain Debts
High priority debts such as back taxes and child support must be paid in full over the life of your Chapter 13 plan. If you are in arrears on debts secured by collateral, such as a car note or a mortgage, you must also pay the in full under the plan if you want to hold on to the property. Unsecured debts do not need to be paid in full, but some courts are more liberal than others as to what percentage of repayment they require,
Your Proposed Budget Must Be Reasonable
To determine whether your disposable income is high enough to fund a Chapter 13 plan, you must create a reasonable monthly budget. If you are not proposing to repay 100% of your unsecured debts, the court, the trustee, or a creditor may challenge your budget if they think it’s too generous, that is, it includes expenses other than necessities.
On the flip side, if you aren’t realistic about what it costs to live, that is, you’ve understand your expenses so that you product enough income to fund a plan, your creditors or the trustee are likely to object on the ground that your plan isn’t feasible. And even if there is no objection, it may not be in your best interest to file Chapter 13 bankruptcy that is doomed to fail.
Bankruptcy Is it the right solution to your debt problems? Attorney Robin Leonard
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
You Must Have Disposable Income
For you to qualify for Chapter 13 bankruptcy, you must have enough income in excess of your expenses, called your “disposable income”, to fund a repayment plan that meets Chapter 13 requirements. These requirements include full payment of your priority debts as well as payment of a percentage of your unsecured debts.
Your Proposed Payment Must Equal the Value of Your Non-Exempt Assets
The total amount of your payments proposed to be paid under your plan must be at least equal to what your creditors would have received had you filed for Chapter 7 bankruptcy, that is, the value of your nonexempt property. (“exempt” property is the property you would be allowed to keep if you file a Chapter 7 case.)
All Your Disposable Income Must Be Devoted To The Plan
Bankruptcy law requires that you pay al your disposable income into your Chapter 13 plan for a minimum of 36 months, unless you can pay off all of your debts in less time. On the other hand, if making 36 monthly payments will not be enough to repay the minimum amount required by the court, you will have to do one of the following:
a) Ask the court to approve a plan that lasts more than 36 months. The court can authorize a plan of up to 60 months (5 years)
b) Increase your monthly disposable income, usually be decreasing your expenses, so that more money is distributed to your creditors each month.
c) Before you file, sell property to pay down your debts so that your disposable income will be enough to fund the plan.
Your Plan Must Pay 100% of Certain Debts
High priority debts such as back taxes and child support must be paid in full over the life of your Chapter 13 plan. If you are in arrears on debts secured by collateral, such as a car note or a mortgage, you must also pay the in full under the plan if you want to hold on to the property. Unsecured debts do not need to be paid in full, but some courts are more liberal than others as to what percentage of repayment they require,
Your Proposed Budget Must Be Reasonable
To determine whether your disposable income is high enough to fund a Chapter 13 plan, you must create a reasonable monthly budget. If you are not proposing to repay 100% of your unsecured debts, the court, the trustee, or a creditor may challenge your budget if they think it’s too generous, that is, it includes expenses other than necessities.
On the flip side, if you aren’t realistic about what it costs to live, that is, you’ve understand your expenses so that you product enough income to fund a plan, your creditors or the trustee are likely to object on the ground that your plan isn’t feasible. And even if there is no objection, it may not be in your best interest to file Chapter 13 bankruptcy that is doomed to fail.
Bankruptcy Is it the right solution to your debt problems? Attorney Robin Leonard
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Chapter 13 Bankruptcy Eligibility Requirements (Part I)
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Businesses Can’t File for Chapter 13 bankruptcy
To file a Chapter 13 bankruptcy case, you must be an individual (or a husband or wife filing jointly). If you own your own small business, you can include all business debts on which you have personal liability. You have to file your case in your name, however, and not in the name of business, because a business cannot file for Chapter 13 bankruptcy. On your bankruptcy papers, you will need to list all fictitious business names or DBAs (“doing business as “) that you’ve used as a sole proprietor.
As with Chapter 7 bankruptcy, if you operate your business as a sole proprietorship or in partnership with your spouse, you, or you and your spouse, are personally liable for the debts of the business. For bankruptcy purposes, you and your business are one and the same. You can include all of the business debts in your Chapter 13 bankruptcy 13 case. You can also include the debts you are personally liable for as a member of a business partnership. There is one exception: stockbrokers and commodity brokers cannot file a Chapter 13 bankruptcy case, even just to include personal (non business) debts.
You cannot file a Chapter 13 bankruptcy on behalf of a corporation, limited liability company (LLC), or partnership. If you want to file a reorganization bankruptcy in that situation, you must file a business Chapter 11 bankruptcy.
You Must Have Stable and Regular Income
You must have stable and regular income to be eligible for Chapter 13 bankruptcy. That doesn’t mean you must earn the same amount every month. But the income must be steady, that is, likely to continue for an indefinite period, and it must be periodic, weekly, monthly, quarterly, semi-annual, seasonal or even annual. You can use the following types of incomes to fund a Chapter 13 plan:
a) regular wages or salary
b) income from self-employment
c) wages from seasonal work
d) commissions from sales or other work
e) pension payments
f) Social Security benefits (although some courts won’t allow it)
g) Disability or workers’ competition benefits
h) Unemployment benefits, strike benefits, and the like (if other income will be available when these benefits expire)
i) Public benefits (welfare payments)
j) Child support or alimony you receive
k) Royalties and rents
l) Gifts of money from relatives or friends
m) Proceeds from selling property, especially if selling property is your primary business.
Bankruptcy Is it the right solution to your debt problems? Attorney Robin Leonard
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Businesses Can’t File for Chapter 13 bankruptcy
To file a Chapter 13 bankruptcy case, you must be an individual (or a husband or wife filing jointly). If you own your own small business, you can include all business debts on which you have personal liability. You have to file your case in your name, however, and not in the name of business, because a business cannot file for Chapter 13 bankruptcy. On your bankruptcy papers, you will need to list all fictitious business names or DBAs (“doing business as “) that you’ve used as a sole proprietor.
As with Chapter 7 bankruptcy, if you operate your business as a sole proprietorship or in partnership with your spouse, you, or you and your spouse, are personally liable for the debts of the business. For bankruptcy purposes, you and your business are one and the same. You can include all of the business debts in your Chapter 13 bankruptcy 13 case. You can also include the debts you are personally liable for as a member of a business partnership. There is one exception: stockbrokers and commodity brokers cannot file a Chapter 13 bankruptcy case, even just to include personal (non business) debts.
You cannot file a Chapter 13 bankruptcy on behalf of a corporation, limited liability company (LLC), or partnership. If you want to file a reorganization bankruptcy in that situation, you must file a business Chapter 11 bankruptcy.
You Must Have Stable and Regular Income
You must have stable and regular income to be eligible for Chapter 13 bankruptcy. That doesn’t mean you must earn the same amount every month. But the income must be steady, that is, likely to continue for an indefinite period, and it must be periodic, weekly, monthly, quarterly, semi-annual, seasonal or even annual. You can use the following types of incomes to fund a Chapter 13 plan:
a) regular wages or salary
b) income from self-employment
c) wages from seasonal work
d) commissions from sales or other work
e) pension payments
f) Social Security benefits (although some courts won’t allow it)
g) Disability or workers’ competition benefits
h) Unemployment benefits, strike benefits, and the like (if other income will be available when these benefits expire)
i) Public benefits (welfare payments)
j) Child support or alimony you receive
k) Royalties and rents
l) Gifts of money from relatives or friends
m) Proceeds from selling property, especially if selling property is your primary business.
Bankruptcy Is it the right solution to your debt problems? Attorney Robin Leonard
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Get Outside Help To Design A Repayment Plan
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Get Outside Help To Design A Repayment Plan
The combination of high consumer debt and easy access to information (especially on the Internet) has led to an explosion in the number of credit and debit counseling agencies ready to offer you help. Some provide limited services, such as budgeting and debt repayment, while others offer a range of services, from debt counseling to financial planning.
How Debt Management Works
To use a credit or debt counseling agency to help you pay your debts, you must have some disposable income. A counselor will contact your creditors to let them know that you’ve sought assistance and you need time to pay. Based n your income and debts, the counselor, with your creditors, decides on how much you must pay. You must them make one payment each month to the counseling agency, which in turn will pay your creditors. The agency will ask creditors to return a small percentage of the money received to the agency office, in order to fund its work. This arrangement is generally referred to as a “debt management program”.
Some creditors will make overtures to helps you when you’re participating in a debt management program. For example, some may waives minimum payment and late charges, and may freeze interest accrual , for customers undergoing credit counseling. But few creditors will make interest concessions, such as waiving a portion of the accumulated interest to help you repay the principal portion of the debt. More likely, you’ll get the late fees dropped and the opportunity to reinstate your credit if you successfully complete a debt management program.
Participating in a credit or debt counseling agency’s debt management program is a little bit like filing for Chapter 13 bankruptcy. But working with a credit or debt counseling agency has one big advantage: No bankruptcy will appear on your credit record.
Bankruptcy Is it the right solution to your debt problems? Attorney Robin Leonard
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
Get Outside Help To Design A Repayment Plan
The combination of high consumer debt and easy access to information (especially on the Internet) has led to an explosion in the number of credit and debit counseling agencies ready to offer you help. Some provide limited services, such as budgeting and debt repayment, while others offer a range of services, from debt counseling to financial planning.
How Debt Management Works
To use a credit or debt counseling agency to help you pay your debts, you must have some disposable income. A counselor will contact your creditors to let them know that you’ve sought assistance and you need time to pay. Based n your income and debts, the counselor, with your creditors, decides on how much you must pay. You must them make one payment each month to the counseling agency, which in turn will pay your creditors. The agency will ask creditors to return a small percentage of the money received to the agency office, in order to fund its work. This arrangement is generally referred to as a “debt management program”.
Some creditors will make overtures to helps you when you’re participating in a debt management program. For example, some may waives minimum payment and late charges, and may freeze interest accrual , for customers undergoing credit counseling. But few creditors will make interest concessions, such as waiving a portion of the accumulated interest to help you repay the principal portion of the debt. More likely, you’ll get the late fees dropped and the opportunity to reinstate your credit if you successfully complete a debt management program.
Participating in a credit or debt counseling agency’s debt management program is a little bit like filing for Chapter 13 bankruptcy. But working with a credit or debt counseling agency has one big advantage: No bankruptcy will appear on your credit record.
Bankruptcy Is it the right solution to your debt problems? Attorney Robin Leonard
Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
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