Posts Tagged ‘debtsettlementprocessors.com’


5 Ways to pay off debt
Tuesday, August 24th, 2010

There are 5 ways to get rid of debt and lead a stress-free life. But what’s important is that you choose the one that works for you.

1. Interest rate arbitration: This is where you choose an independent third party to negotiate low interest rates with your creditors. So, you can consolidate multiple bills with one low monthly payment. This is also known as loan consolidation. The benefits are:

  • Pay less each month
  • One monthly payment instead of many
  • Credit score improves

2. Debt management: This is where you work with a debt solutions company to help you pay off your debts and create a budget. The benefits are:

  • Interest is reduced
  • Late fees may be waived off
  • Manage multiple bills with ease

3. Debt settlement: This is where you have a settlement company/law firm working with your creditors to lower your payoff amount by 40-60%. With settlement, you have 2 major benefits:

  • Creditors reduce interest
  • They cut your principal balance

4. Chapter 13 bankruptcy: Chapter 13 is a court monitored debt repayment plan. The benefits are:

  • Creditors reduce interest on your debt
  • They trim the principal debt balance
  • You don’t use your assets to pay off debt

5. Chapter 7 bankruptcy: This is where you hand over your assets to a court-appointed trustee who sells them off and uses the sale proceeds to pay off your debts. With Chapter 7 bankruptcy, you get the following benefits:

  • Interest on your debt is lowered
  • Principal balance is reduced

However, your credit score takes a hit and it’ll take quite a few years till you actually rebuild your score.


Debt Settlement Fees
Tuesday, August 24th, 2010

Today, the Federal Trade Commission came down hard on for-profit debt relief firms. The FTC’s new amendments to the Telemarketing Sales Rule will prohibit debt relief companies from collecting advance fees, among other things. Here is some basic information about the new Rule.

Who: The Federal Trade Commission, which enforces the Telemarketing Sales Rule, has developed the new rules.

The rule applies to all for-profit debt relief agencies that sell debt relief services over the telephone, including those that discuss settlement over the phone with prospective clients. In other words, they don’t have to be cold-calling consumers to be covered by the rule.

When: These final amendments are effective on September 27, 2010, except for the upfront fee ban, which is effective on October 27, 2010.

What: The Rule will:

(1) prohibit debt relief service providers from collecting a fee for services until a debt has been settled, altered, or reduced;

(2) require certain disclosures in calls marketing debt relief services; and

(3) prohibit specific misrepresentations about material aspects of the services.


Debt Settlement Law Firm vs Debt Settlement Company
Tuesday, August 24th, 2010

Unless you have been living under a rock, you should understand that the American marketplace has seriously gone down south. People have been losing work, their places of residence, and many their sanity. A single difficulty that has pretty much been haunting consumers since this has occurred is large amounts of consumer credit card debt. Debtors can be found trying to beat large monthly premiums that practically never seem to go down plus interest rates that are totally absurd. One plan that has been truly proving to be a success for most consumers is credit card debt settlement; however there are two forms of debt settlement programs. Currently, there are business models that can be setup using a lawyer and then programs that can be set up with a standard service. The former is what will be able to really present debtors a great possibility to become debt free in the least amount of time with the least amount of concerns.

With a credit card debt settlement program, the debtor must fall into delinquency on their minimum payments and save money on the side. This will allow them to in time work out a one time lump sum payment and close the deficit out. Oftentimes the consumer can salvage about half what they owe plus find themselves out of debt in just a couple years. That is very good; however there are a couple downsides with debt settlement that can make using a lawyer more beneficial to the consumer. For starters once you fall past due on the debts the lenders can try to gather the balance due through calls. A law firm has the ability to lawfully limit collection agencies from constantly harassing the client, at which a company cannot. One more downside to the debt settlement plan will be the potential for getting sued. With having retained a law firm, then they will lawfully interact with and still negotiate with a bank who will be making an effort to take somebody to the courtroom. This is a great selling point for people when using a debt settlement law firm over a company.

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Chase Credit Card Settlement
Thursday, July 22nd, 2010

Credit card debt is one of the main problems that is facing people all around the US, and the Chase credit card is one of the most commonly used card. The highest interest rates, coupled with diminishing wealth during the economy downturn, debt is rising at breakneck speed. Today, people owe more on their credit cards because they are using those cards to cover things that their paychecks no longer can. It is possible to negotiate with the company, with the help of a debt settlement company, to help with a Chase credit card settlement.


Credit Card Debt and the US Economy
Thursday, July 8th, 2010

The United States under Obama is just turning the corner as far as recession is concerned. But one factor that had contributed to some extant to the recession and financial crisis is the credit card debt in the USA. In terms of figures the credit cards in circulation are over 1.5 billion for a population of just over 300 million. This is a menacing ratio and translates to a credit card debt of over 600 billion. To this figure if we add the almost million bankruptcies in the United Sates than we can get an idea of how much the United States economy is affected.

America is presently the world’s largest economy though in the near future China may well over take it. But unlike in China in the United States 60 million households do not pay their outstanding balances in full. This are carried forward and classified as unsecured debt. This debt because of the low rate of clearance say 2-4% of the outstanding has resulted in a big economic problem resulting in a huge liability to a lot of people.

The reason for this debt is not hard to seek and has its genesis in the easy availability of credit and secondly the ease by which gambling on the net with credit cards can be affected. At a conservative estimate nearly 3 million Americans could be addicted to gambling. Bear in mind that the cumulative United states national debt is hovering around 5. 7 trillion. This is far exceeded by the total consumer debt of $6.5 trillion and one can imagine what this means. It really spells a very difficult financial situation bordering on a catastrophe.

The situation is compounded with an abysmally low saving rate of the American populace which presently is almost zero. In case one compares this with the saving rate in the eighties when it was around 8.5% then the magnitude of the problem can be understood.

The period of the late 90s of the last century saw immense prosperity for the people. But this was also the period when debt grew because of easy availability of credit. Thus In the period 1989-2001 the debt almost tripled from $ 238 billion to $692 billion. The savings rate declined and bankruptcies rose up by 125%

This massive credit card debt has had a negative effect on the economy. In addition mounting mortgage and consumer debt is crippling the budget of most households. Large bankruptcies have set in like Lehman brothers and GM. The deregulation of Banking has also taken its toll as the real cost of corporate credit (prime rate) has increased only marginally (2.5%-3.0%) yet the real cost of consumer credit card debt has doubled from less than 6% to over 11%. Revolving of credit card debt to the next cycle amounts to nearly $11,000 per household.

To sum up, as things stand the vast US economy may in the years to come buckle downwards if the credit card debt is not reined in.


Credit Card Facts
Tuesday, July 6th, 2010

The average consumer carries around $20,000 worth of credit card debt and pays close $400 a month on that credit card debt. The average interest rate on credit cards in the United States is 15% APR. So if you take the time to figure out the statistics you will find that over the life of your credit card debt you will end up paying back the credit card company $70,003.50 for the $20,000 you borrowed. It would also take you 175 months or 14.58 years to completely payoff your credit card debt.

If you choose to enter into a Debt Settlement program with $20,000 on average your total amount of debt would be reduced to $11,600 including the debt settlement company’s fees. You would end up saving a total of $50,003.50 in interest and a total of $8,400 in your principal balance. Making your grand total savings of $58,403.50! If you continue paying $400 per month in a debt settlement program you will be completely debt free in 33.14 months. Under 3 years!!

Interest rates

Interest rates vary widely. Some credit card loans are secured by real estate, and can be as low as 6 to 12% in the U.S. (2005). Typical credit cards have interest rates between 7 and 36% in the U.S., depending largely upon the bank’s risk evaluation methods and the borrower’s credit history. Brazil has much higher interest rates, about 50% over that of most developing countries, which average about 200% (Economist, May 2006). A Brazilian bank-issued Visa or Mastercard to a new account holder can have annual interest as high as 240% even though inflation seems under control at around 6% per annum (Economist, May 2006). Banco do Brasil offered its new checking account holders Visa and Mastercard credit accounts for 192% annual interest, with somewhat lower interest rates reserved for people with dependable income and assets (July 2005).[citation needed] These high-interest accounts typically offer very low credit limits (USD$40 to $400). They also often offer a grace period with no interest until the due date, which makes them more popular for use as liquidity accounts, which means that the majority of consumers use them only for convenience to make purchases within the monthly budget, and then (usually) pay them off in full each month.

Calculation of interest rates

Most U.S. credit cards are quoted in terms of nominal APR compounded daily, or sometimes (and especially formerly) monthly, which in either case is not the same as the effective annual rate (EAR). Despite the “annual” in APR, it is not necessarily a direct reference for the interest rate paid on a stable balance over one year. The more direct reference for the one-year rate of interest is EAR. The general conversion factor for APR to EAR is EAR=((1+APR/n)^n)-1, where n represents the number of compounding periods of the APR per EAR period. For a common credit card quoted at 12.99% APR compounded daily, the one year EAR is ((1+.1299/365)^365) -1, or 13.87%; and if it is compounded monthly, the one year EAR is ((1+.1299/12)^12) – 1 or 13.79. On an annual basis, the one-year EAR for compounding monthly is always less than the EAR for compounding daily. However, the relationship of the two in individual billing periods depends on the APR and the number of days in the billing period. For example, given 12 billing periods a year, 365 days, and an APR of 12.99%, if a billing period is 28 days then the rate charged by monthly compounding is greater than that charged by daily compounding [ .1299/12 is greater than ((1+.1299/365)^28)-1]. But for a billing period of 31 days, the order is reversed (.1299/12 is less than ((1+.1299/365)^31)). In general, credit cards available to middle-class cardholders that range in credit limit from $1,000 to $30,000 calculate the finance charge by methods that are exactly equal to compound interest compounded daily, although the interest is not posted to the account until the end of the billing cycle. A high U.S. APR of 29.99% carries an effective annual rate of 34.96% for daily compounding and 34.48% for monthly compounding, given a year with 12 billing periods and 365 days.

*Interest rate information from Wikipedia



Do it Yourself Debt Settlement – The Top Seven Things You Need to Know
Friday, March 26th, 2010

Want to get rid of your debt but don’t want to file for bankruptcy or risk foreclosure? If so, debt settlement is an option worth considering. You might think you can’t settle your debt on your own, but the truth is you can do it yourself. There’s no law that says you have to hire a company to handle the debt settlement process. In fact, hiring an outside company usually means paying the company a hefty commission based on the total amount of your debt.

The key to successful debt settlement is negotiation and it’s a skill anyone can learn. Just follow these seven simple steps to do it yourself. Remember when you negotiate, you’re not only reducing the amount you pay individual credit card companies each month. You’re also lowering your total debt by 50 to 80 percent.

Once you start negotiating with creditors you’ll find that settlement amounts will vary. Some may offer as low as 30% and others up to 50%. Some will even forgive most of the amount you owe. Try it and in about six months you’ll be off to a fresh start.

Here are seven debt settlement and creditor negotiation steps you can do yourself:

1) First you need to accumulate a sizable amount of unmanageable debt, which you’ve probably already done since you’re thinking about settling.

2) Next you have to determine that debt settlement is your best option.

3) Once you make that determination, stop making your monthly payments.

4) Take the money you would have spent making those payments and put it into a savings account. Or if you can, try to get a loan with a low or zero percent interest rate from family or friends.

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How to select a good Debt Settlement Back End Processing company?
Wednesday, February 24th, 2010

Debt settlement backend processing companies like Debt Rehab, 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).

SEO by Php Technology

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