What matters most is the fact that creditors will always want to settle all delinquent accounts, in some cases they are forced to sell these accounts or forward them to collections; in either case the chances of obtaining a lesser settlement diminishes. Debt collectors charge a percentage on the amount collected to creditors and junk debt buyers, although most of the time they buy debt for pennies on the dollar prefer to sell these accounts to others if they cannot make a superior commission on the debt they bought.
It is almost always better to settle unsecured debt with original creditors, better saving percentages as well as the fact that the account will not be charged off and would not reflect that mark on credit reports. Accounts settled with original creditors will be marked as "settled in full", not "paid in full" as mentioned in the client agreement. It is never a good experience to default on payments to creditors, but it is most of the time a lot easier to settle with them with the exception of a few companies that do not want t hear the words "debt settlement".
Collectors for the most part will always settle unsecured debt for a slightly higher percentage than original creditors do, in some cases, for less. Collection agencies will make living our every day's lives a hard task; they will call repeatedly and send unwanted correspondence reminding s that we have a debt. There are rights to protect consumers if debt collectors go beyond the normal practices allowed by law.
Junk debt buyers can be compared to collection agencies, sometimes a bit more aggressive knowing they have nothing to lose and all to gain. All in all it is best to settle any delinquent accounts with original creditors since they will be more sympathetic to hardships or any event that may be preventing us from keeping up with our monthly payments, either way unsecured debt can be settled with collection agencies and junk debt buyers as well.
Thursday, November 12, 2009
Time to Become Debt Free
The economy is making a comeback for good, more jobs will become available and the threat of bankruptcy and financial disaster will disappear once and for all. Many will be able to regain their financial freedom again and begin enjoying great financial times again.
How do we regain that freedom again? Simply by getting back to work, cutting back on our expenses for a brief while and setting aside funds to make payments to our creditors, we can start chipping away at those nagging credit card, mortgage and car payments. Getting back to work means getting back to living our normal lives again, to be proud of becoming productive adults and a productive nation once again.
The numbers are staggering and not even worth mentioning, the bankruptcies, delinquencies, divorces, etc... the economic depression caused our country, the losses not only monetary but personal as well, the very fabric of our nation was significantly disturbed, our free market economy. We were on the brink of collapsing as a nation because of our economic difficulties, think what this did to the American family; it tore it up, kept it awake at nigh, created nightmares not seen since The Great Depression. We heard stories about it from our grand parents and were on the very brink of living those stories ourselves. Let us not make the same mistakes we made a decade or two ago and think everything was perfect, let us think of or future as a family, as a nation and become financially stable once again.
It begins with work, and as Americans we enjoy our jobs, we take pride in them, we take pride in our financial status. It is time to regain that status once again, not to gloat in it as we once did, but to bask in the freedoms it provides us!
How do we regain that freedom again? Simply by getting back to work, cutting back on our expenses for a brief while and setting aside funds to make payments to our creditors, we can start chipping away at those nagging credit card, mortgage and car payments. Getting back to work means getting back to living our normal lives again, to be proud of becoming productive adults and a productive nation once again.
The numbers are staggering and not even worth mentioning, the bankruptcies, delinquencies, divorces, etc... the economic depression caused our country, the losses not only monetary but personal as well, the very fabric of our nation was significantly disturbed, our free market economy. We were on the brink of collapsing as a nation because of our economic difficulties, think what this did to the American family; it tore it up, kept it awake at nigh, created nightmares not seen since The Great Depression. We heard stories about it from our grand parents and were on the very brink of living those stories ourselves. Let us not make the same mistakes we made a decade or two ago and think everything was perfect, let us think of or future as a family, as a nation and become financially stable once again.
It begins with work, and as Americans we enjoy our jobs, we take pride in them, we take pride in our financial status. It is time to regain that status once again, not to gloat in it as we once did, but to bask in the freedoms it provides us!
Monday, November 2, 2009
Credit Card Issuers Raising Interest Rates
Are you seeing large increases on your credit card interest rates even if you are current on your payments? Chances are you are, the rates may be as high as 30% this is due to the fact credit card companies are rushing to raise fees before the new credit card law takes effect February of 2010. The new law taking place is designed to keep credit card companies from such moves.
These companies have nine months to prepare for this new law change and are taking advantage of t by dealing a hard blow to American consumers whom have already been hurt by the effects of the recession. The new law called Credit Card Accountability, Responsibility and Disclosure Act, or CARD Act will try to stop credit these deceptive practices by the credit card issuers.
Come late February, the CARD Act will prohibit lenders from raising rates on outstanding card balances. In other words, if you have a balance of $1,000 and the company wants to change your rate, it only applies to new purchases. It wouldn't be retroactive on old debt.
Card issuers also won't be able to change the terms of a contract so long as the cardholder makes a minimum payment on time. The rules ban a practice known as ''universal default.'' That's where lenders raise a card holder's interest rates when that person misses payments to other creditors or takes on new debt like a mortgage or a car loan.
These companies have nine months to prepare for this new law change and are taking advantage of t by dealing a hard blow to American consumers whom have already been hurt by the effects of the recession. The new law called Credit Card Accountability, Responsibility and Disclosure Act, or CARD Act will try to stop credit these deceptive practices by the credit card issuers.
Come late February, the CARD Act will prohibit lenders from raising rates on outstanding card balances. In other words, if you have a balance of $1,000 and the company wants to change your rate, it only applies to new purchases. It wouldn't be retroactive on old debt.
Card issuers also won't be able to change the terms of a contract so long as the cardholder makes a minimum payment on time. The rules ban a practice known as ''universal default.'' That's where lenders raise a card holder's interest rates when that person misses payments to other creditors or takes on new debt like a mortgage or a car loan.
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