Debt Settlement Processing, Debt Settlement Backend Company, Debt Settlement Affiliate, Net Branch - Debt Aid offers 100% commission and great debt settlement customer service. » creditor http://www.debtsettlementprocessors.com Debt Settlement Processing, Debt Settlement Backend Company, Debt Settlement Affiliate, Net Branch - Debt Aid offers 100% commission and great debt settlement customer service. Fri, 16 Dec 2011 05:30:54 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 Determine the Extent of Your Debt Problem http://www.debtsettlementprocessors.com/determine-the-extent-of-your-debt-problem.html http://www.debtsettlementprocessors.com/determine-the-extent-of-your-debt-problem.html#comments Tue, 13 Jul 2010 11:36:25 +0000 admina http://www.debtsettlementprocessors.com/?p=430

Determine the Extent of Your Debt Problem

Step 1
Request a copy of your credit report from one or all three major credit reporting agencies in the U.S. The companies are TransUnion LLC, Equifax Credit Information Services, Inc., and Experian.
Step 2
Review your credit report and check for inaccuracies, such as incorrect personal information, accounts that do not belong to you and even accounts listed with balances that are actually paid in full. It’s also important to know your FICO score, which is a credit score system. The acronym ‘FICO’ is derived from the name of the software used to calculate the score. While FICO scores range from 300-850, the average score is somewhere in the high 500s.
Step 3
Determine how much debt you have by adding up the balances of all of your credit accounts, loans, both secured and unsecured, and even collection accounts.
Step 4
Use this information when making your decisions about filing for bankruptcy or employing a debt settlement agency to help alleviate your financial problems.

Examine Your Monthly Finances

Step 1
On a sheet of paper, list all of your monthly income including paychecks, alimony/spousal support, child support, bank, investment and rental interests or income. If you work overtime or receive bonuses, include that information, too. If you opt for filing bankruptcy, you will need to include your average monthly income from the six months prior to filing in your bankruptcy petition, so it’s important to get these numbers no matter which solution you opt for, bankruptcy or credit counseling.
Step 2
On another sheet of paper, list all of your mandatory monthly living expenses, such as for housing, transportation, insurance, prescriptions and doctor visits, utilities, groceries and education-related costs. Don’t include payments for credit card debts, entertainment, or other items that are not necessary for your day-to-day survival. Definitely do not list an expense twice. That means if you used your credit cards to buy prescriptions, include that cost in your mandatory expenses list. However, if you used your credit card to buy a shirt, do not list the purchase on your mandatory expenses list at all, unless it was necessary for say, work.
Step 3
Subtract the total of your monthly living expenses from your total monthly income. A balance indicates you have expendable income you could potentially use to pay down your debts. A zero or negative balance indicates you do not have expendable income that could be used to pay down your debt.
Step 4
These calcuations are important for helping you formulate your decisions about filing for bankruptcy or seeking the aid of a debt settlement agency.

Determining if Debt Settlement is Right For You

Step 1
Determine if you could pay down your debts with your current income. If your income does not exceed your housing expenses, utilities, gas, groceries, and basic financial needs for the month, debt settlement is not a viable solution for you. However, if your monthly income exceeds your basic living expenses, debt settlement may help you resolve your financial crisis.
Step 2
Determine if your debt situation qualifies for debt settlement services by examining the total amount of unsecured debt you owe. To qualify, you will usually need to owe at least $7,500 in unsecured debt. However, the qualifying balance will vary by debt settlement company. Make sure you ask each debt settlement company about their unsecured debt balance requirements to determine which debt settlement company is right for your situation.
Step 3
Look for reputable debt settlement companies. Companies that charge huge fees up-front are companies to be avoided. Opt for debt settlement companies endorsed by the Better Business Bureau, or some other reputable pro-consumer group. Make sure to check that their fees are reasonable for the services rendered.
Step 4
Compare the services each company offers. Look for companies with a sound history of effectively negotiating with creditors. Ask for references or case studies you can examine that prove the company’s track record. If company representatives are hesitant to provide you with that information, walk, don’t run, out their door.
Step 5
Examine the pros and cons of committing to a debt settlement program. Ask the debt settlement company if by hiring them to represent you to negotiate your debts will your various creditors how your life might be impacted. Will those harrassing creditor calls stop? (possible, but no guarantees. Creditors can still contact you for the collection of debts they are owed unless or until you file bankruptcy). Also, inquire how a debt settlement program will impact your credit in the future and what the long-term side effects to your credit might be.
Step 6
Make sure you are prepared for the drawbacks of debt settlement programs such as the potential for increased creditor calls, possible collection lawsuits initiated by creditors, damaged credit and tax problems. If you don’t think you can handle these possibilities, then you should probably look for another debt solution.

Determining if Bankruptcy is Right For You

Step 1
Determine if you have any other options for resolving your financial crisis short of filing bankruptcy. Look online for other solutions to your debt problems such as debt settlement, debt management and nonprofit assistance. In addition, attorneys who practice bankruptcy law have begun to offer debt settlement services to clients who might have filed a bankruptcy before the Bankruptcy Code was overhauled in October, 2005, and find the new laws too onerous.
Step 2
Determine if you qualify for bankruptcy by reading the most current version of the U.S. Bankruptcy Code, found in Title 11 of the U.S. Code. However, the revamped Bankruptcy Code is extremely complex to understand, so don’t be surprised if you aren’t able to comprehend much of what you are reading. The Bankruptcy Code can be found online. Many books attempting to explain the Code in plain English have been written, so check out your local library or bookstore for some helpful titles. Even if you discuss your financial problems with an attorney who specializes in bankruptcies, you might still want to read up on the law for yourself.
Step 3
Determine which bankruptcy chapter you qualify for by reading the descriptions of each type of bankruptcy, as well as by reading the rules and regulations associated with each. This information can be found at your local library, bookstore, online, or by talking with an attorney who handles bankruptcies in their everyday practice.
Step 4
Court costs for filing bankruptcy are different depending on which chapter you file. Currently, a Chapter 7 bankruptcy costs $299 in filing fees while a Chapter 13 costs $274, although Congress can change those fees at any time. It will also be important to learn how much an attorney will charge you to represent you in your bankruptcy. If you meet with a bankruptcy attorney, they will likely give you a written fee quote for their services either at your first meeting or perhaps in the mail. Do not expect to be able to email a bankruptcy attorney for a price quote on what they would charge for their services. Bankruptcy is an extremely complex area of law and an attorney well familiar with the law’s complexity wouldn’t likely give you a fee quote over the phone or in an email without knowing your entire financial picture. Would you call a doctor to ask how much it would cost to set your broken arm? Do you think the doctor would even come to the phone, and secondly, do you think they should or would give you an answer? They don’t know how broken your arm is by talking to you on the phone and a bankruptcy attorney doesn’t know how bad your financial situation is until they meet with you to discuss it.
Step 5
Another important consideration is deciding whether filing for bankruptcy will resolve your credit problems. Depending on the types and amounts of your debts, a bankruptcy filing won’t necessarily rid you of your duty to pay some of your bills, even though you filed for bankruptcy. Keep in mind that a bankruptcy filing remains on your credit record for ten years but a bad debt is only supposed to stay on a credit report for seven.

Read more: How to Compare Debt Settlement vs. Bankruptcy | eHow.com http://www.ehow.com/how_2002283_debt-bankruptcy-settlement.html#ixzz0tURSWGS0

]]> http://www.debtsettlementprocessors.com/determine-the-extent-of-your-debt-problem.html/feed 0 Credit Card Counseling vs. Debt Settlement http://www.debtsettlementprocessors.com/credit-card-counseling-vs-debt-settlement.html http://www.debtsettlementprocessors.com/credit-card-counseling-vs-debt-settlement.html#comments Wed, 30 Jun 2010 08:28:19 +0000 admina http://www.debtsettlementprocessors.com/?p=402 It is obvious that credit card debt can hinder your financial success. Eliminating excessive debt sometimes means choosing between seeking credit counseling with a third party or negotiating a settlement directly with the lender.  Both of these alternatives have advantages. It’s important to determine exactly which solution is best for the problem at hand financial planning is complicated, but with a little patience and research it becomes easier to make constructive choices. Of course, each individual must decide what works best in the current economic climate.  Seeking counseling to help reduce or eliminate high interest credit payments can help borrowers resolve debt problems.

Clients pay the credit counseling firms directly, either through consolidation or monthly payments. The agency then takes care of paying the bills. These companies help consumers in several ways. The most important service they provide is skillful negotiation with lenders. Since creditors have widely varying policies, the counselors must be up to date on the most current information. They can then use that information to bargain for a lower interest rate reduced payments, or even consolidation of certain loans. In addition, they can provide advice on budgeting, handling money, and effectively operating in the financial world.

If the situation has progressed, debt settlement becomes a possible option. In this process, the consumer or company representative negotiates to reduce the principal amount of a loan. Although many people do not know about this, it can be done by any borrower. First, the loan must be declared to be in default. This may have happened already if no payments have been made for several months. Once defaulted, a loan becomes a loss to the lender, which means that the lender will often accept a much smaller total amount in order to recover at least some of the money owed. Settling debt will eliminate debt more quickly and efficiently.  Debt Aid Processing offers the best alternative to bankruptcy available to the consumer.

Getting out from under a financial burden can be the first step to success. Becoming an affiliate of Debt Aid Processing will allow you to offer seasoned advice on the right personal debt management plan. The best option is dependent on personal preference, financial goals and the current economic climate. Taking all these factors into consideration can help resolve debt problems with a minimum of negative consequences.

]]> http://www.debtsettlementprocessors.com/credit-card-counseling-vs-debt-settlement.html/feed 0 What is Forgiven Debt? http://www.debtsettlementprocessors.com/what-is-forgiven-debt.html http://www.debtsettlementprocessors.com/what-is-forgiven-debt.html#comments Mon, 08 Mar 2010 19:23:43 +0000 admin http://debtsettlementprocessors.com/?p=136 After a debt settlement company has negotiated a reduced debt balance on behalf of their client, it is the client’s responsibility to report the amount of debt removed to the IRS.  According to IRS Publication Form 982, any amount of removed debt above $600.00 must be reported as taxable income.  This means that the creditor whom the debt was owed to has to provide the debtor with a 1099-C tax form which clearly states the amount of removed debt.

In certain circumstances, however, the debtor is considered insolvent and exempt from having to report the forgiven debt to the IRS.  In order to be insolvent, a person’s removed debt has to sum up to more than his or her total assets.  It is clear to see that paying taxes on removed debt is the better choice over having to pay the original amount in full. Using a debt settlement company can save the client up to 75% of their total debt.  This is just another reason using a debt settlement company is the best choice.

Here at Debt Aid Processing, we are committed to providing our affiliate companies with the support and resources they need to provide the best results for their clients.  As one of the largest and most successful companies specializing in debt settlement backend processing, we know what it takes to get the desired outcome for our affiliates.  For more information, call us today at (800) 510-2734 or visit our website at www.debtaidprocessing.com.

]]> http://www.debtsettlementprocessors.com/what-is-forgiven-debt.html/feed 0 Bankruptcy, what is it and how to avoid it http://www.debtsettlementprocessors.com/bankruptcy-what-is-it-and-how-to-avoid-it.html http://www.debtsettlementprocessors.com/bankruptcy-what-is-it-and-how-to-avoid-it.html#comments Thu, 04 Mar 2010 23:06:29 +0000 admin http://x.debtrealty.com/?p=111 In this economy, many people find themselves facing difficult financial situations.   Certain circumstances such as unexpected medical bills, credit card bills, and divorces can surely present further challenges.  When the burden of debt becomes overwhelming, many believe filing bankruptcy is their only option.  Bankruptcy can be broken up into two categories:

Chapter 13 Bankruptcy- In this type, the debtor proposes a plan to repay creditors over a three to five year period during which the debtor can make up overdue payments on any assets and pay into the plan the equivalent value of any assets not covered by exemptions.  Exemptions refer to properties that the law allows for the debtor to keep.  The debtor will then make regular payments to creditors through a trustee and will not be discharged of the debt until the payments are complete.  The debtor is, however, protected from wage garnishments, lawsuits, and other creditor action while making the payments.

Chapter 7 Bankruptcy-This type requires the collection of the debtor’s assets by a trustee who then distributes the cash obtained from those properties to creditors.  In order for creditors to receive any money from the assets, they need to file a claim with the bankruptcy court which will deem their claim justified as it sees fit.

Filing bankruptcy is not only stressful and time consuming, it has more serious consequences.  It can impact a credit score for at least six years and nine months, and possibly up to ten years.  This will make trying to get one’s life back on track very difficult.

How can bankruptcy be avoided? Debt settlement.  We are Debt Aid Processing, one of the nation’s largest and most successful backend processing companies.  We are here to offer resources to our affiliate companies in order for them to help their clients free themselves from the chains of debt.  Call us today at 800-510-2734 or visit our website at http://www.debtaidprocessing.com

]]> http://www.debtsettlementprocessors.com/bankruptcy-what-is-it-and-how-to-avoid-it.html/feed 0 How to select a good Debt Settlement Back End Processing company? http://www.debtsettlementprocessors.com/how-to-select-a-good-debt-settlement-back-end-processing-company.html http://www.debtsettlementprocessors.com/how-to-select-a-good-debt-settlement-back-end-processing-company.html#comments Wed, 24 Feb 2010 19:46:54 +0000 admin http://x.debtsettlementprocessors.com/?p=54 Debt settlement backend processing companies like Debt Aid Processing, as their name implies, provide the actual back office processing services required for the companies that settle debt. These companies must have the licensing necessary to provide such service on a state-by-state basis. In many cases, the debtor is not even aware that they are dealing with a debt settlement processing firm.

Qualifications:

If you have a debt settlement company, you are going to need to partner with a backend firm. In such case, there are several key factors to look for in these companies since not all of them are the same and each have their own niche areas that they focus in. If you don’t choose wisely and beccome partners with a poor-performing firm, it could result in lower conversions rates and less of an ROI (return on your investment).

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  • Licensing: The most important consideration for partnering with a processing firm is state licensing. Companies must have a license with the state your business is located in to provide you with services. You will hardly find companies with license in all 50 states. there are many who do carry several state licenses.
  • Commission Amount:  Always be interested in what commission you or your business will earn. There are many false claims and representations. The commission rates listed on these companies websites is usually the percentage of the collected debt your business will receive.
  • Settlement Offers:  Determine what type of settlement offers the company provides to your clients. Some processing companies claim a “50% settlement guarantee” which means that the debt may be paid off in full for 50 percent of the original debt amount. The settlement offer will affect how much you collect and how responsive your potential clients would be.
  • Training and Support:  This is very iomportant. People working for these backend firms need to provide guidance on how to use their systems and how to use the service. In addition, as a business, you need support to handle questions, concerns or problems that arise from your consumers. The top notch companies always will provide this kind of service.
  • Lead Support: Some companies assist you with providing you consumer leads. Depending on your relationship with the the company, you may want to go with a company that provides you leads as well. Having a steady stream of debt settlement leads is very important.
  • Attorney Backed:  Some companies are somehow associate with attorneys who will handle any necessary mitigation or legal documentation. Although not necessary, working with a company that offers this type of resource helps ensure legal protection.

Shannon Arnold is a financial blogger who is now researching debt settlement processing on behalf of Debt+Aid Processing which is a very reputable and prominent firm. Please visit http://debtaidprocessing.com

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