Debt Settlement, Done Your Way
by Brian Burke
Although it is not typically done, it is possible for a consumer to duplicate imitate the methods used by a professional debt collection agency. There are definitely instances of success where people negotiate a debt settlement for themselves. These negotiations can be initiated by calling the customer service department of the credit card Company or by contacting the debt collection agency. The most frequent time that a credit card company will deal with a customer directly is when they are behind on payments but capable of making a lump sum payment. In this case, a payment plan is not an alternative. The credit card company will only accept a lump sum payment of the settled amount.
If you don't have the ability to pay the lump sum payment of your account then the advantages of settling a debt become restricted. One plus is that by negotiating your own debt, as a debtor you are able to save in fees that would have otherwise been paid to a debt settlement company. This way of working also gives the debtor a lot more power over the process. This could, or could not, be a motivational dynamic to continue working through the process.
The disadvantages are much more plentiful in this situation. Certain creditors will not settle directly with customers according to their or policies regarding debt settlement. Also, consumers may not be able to acquire as good of rates as they would through a debt collection agency. Customers could also face greater difficulty getting in contact with decision makers. This would result in long delays in any negotiations or paper work processing.
Debt settlement companies have a customer service department that supports the consumers with any questions or difficulties that arise. This support provides a great amount of value, especially in cases when the creditors become persistent. Any type of unfamiliarity of the settlement process can lead to slip-ups. You always want to be aware of any fine print and make sure that all correspondence and proposed settlement or agreement is carefully reviewed.
It is suggested that any settlement agreement is overlooked very carefully and by a third party. This will help to make sure that all terms are those that were agreed upon by both parties. It should be known that settling ones debt is an emotionally draining and very difficult process for those who are not professionally experienced. You should certainly weigh all options when deciding to take on the debt settlement or employ an outside service when dealing with a creditor or debt collection agency.
Showing posts with label collection agencies. Show all posts
Showing posts with label collection agencies. Show all posts
Monday, November 7, 2011
Monday, September 19, 2011
Building Good Credit
Building Good Credit
by Takara Alexis
If you want to borrow money, you have to have a good credit history. The better your credit history, the higher your credit score and the lower your interest rate. You will find that with good credit comes an easier time at obtaining credit. Both young adults and those beginning to rebuild their credit must establish good credit histories. This can often be quite difficult. You might find that without a good credit history, it's a challenge to get a credit card, auto loan or home mortgage.
An established record of making payments towards loans and managing your credit wisely lets lenders know that you are reliable. If you have had financial hardships, lenders consider that you pose a risk of default. This results in either rejection or higher interest rates. Do not believe any company or a person that says you can quickly get a perfect credit history. This simply isn't true. It is something you have to work at. But the work isn't hard. It just takes a few wise moves and time.
In order to have a credit score at all, you must have a credit account open for at least six months that has been reported on. Start off on the right foot and you won't have to worry about your credit score.
The first step in establishing credit is to open a savings and a checking account. There doesn't have to be a large amount of funds in your accounts, you just need to show that you are financially responsible. This means that you need to make deposits and withdrawals over time. Be careful though, bounced checks send the opposite message. They show that you have a hard time managing your money.
You should get into the habit of paying your bills on time, every time. This means that you never miss a cable bill, a utility bill or a rent payment. While these don't usually get reported to the credit bureaus, a late payment or collection will probably show up on your credit report. Pay your bills on time and get into the habit. It'll benefit you when you do have credit accounts to make payments on.
One of the best ways to begin a credit history is by obtaining a secured credit card. You deposit money into a bank account at your bank, and that amount is your credit limit. The issuer will simply deduct the money owed if you default on your payments. This will build a credit history while showing you to manage money. It does not matter if you have a low credit limit, the key is to establish a credit history that shows good management. After about a year, you should be able to move on to an unsecured credit card.
Other options for starting off with credit include store credit cards and student credit cards. The limits will usually be low and the interest rates high. But if you pay the balance in full every month, you will not have to worry about interest. This is the best way to manage your credit cards. Don't charge more than you can pay in full. You only need one or two accounts to establish credit history. Do not go out and apply for everything you can. Use your credit cards wisely. There is no reason to have more than three credit cards. In fact, one is your best number. Having too many open accounts of one type can damage your score.
by Takara Alexis
If you want to borrow money, you have to have a good credit history. The better your credit history, the higher your credit score and the lower your interest rate. You will find that with good credit comes an easier time at obtaining credit. Both young adults and those beginning to rebuild their credit must establish good credit histories. This can often be quite difficult. You might find that without a good credit history, it's a challenge to get a credit card, auto loan or home mortgage.
An established record of making payments towards loans and managing your credit wisely lets lenders know that you are reliable. If you have had financial hardships, lenders consider that you pose a risk of default. This results in either rejection or higher interest rates. Do not believe any company or a person that says you can quickly get a perfect credit history. This simply isn't true. It is something you have to work at. But the work isn't hard. It just takes a few wise moves and time.
In order to have a credit score at all, you must have a credit account open for at least six months that has been reported on. Start off on the right foot and you won't have to worry about your credit score.
The first step in establishing credit is to open a savings and a checking account. There doesn't have to be a large amount of funds in your accounts, you just need to show that you are financially responsible. This means that you need to make deposits and withdrawals over time. Be careful though, bounced checks send the opposite message. They show that you have a hard time managing your money.
You should get into the habit of paying your bills on time, every time. This means that you never miss a cable bill, a utility bill or a rent payment. While these don't usually get reported to the credit bureaus, a late payment or collection will probably show up on your credit report. Pay your bills on time and get into the habit. It'll benefit you when you do have credit accounts to make payments on.
One of the best ways to begin a credit history is by obtaining a secured credit card. You deposit money into a bank account at your bank, and that amount is your credit limit. The issuer will simply deduct the money owed if you default on your payments. This will build a credit history while showing you to manage money. It does not matter if you have a low credit limit, the key is to establish a credit history that shows good management. After about a year, you should be able to move on to an unsecured credit card.
Other options for starting off with credit include store credit cards and student credit cards. The limits will usually be low and the interest rates high. But if you pay the balance in full every month, you will not have to worry about interest. This is the best way to manage your credit cards. Don't charge more than you can pay in full. You only need one or two accounts to establish credit history. Do not go out and apply for everything you can. Use your credit cards wisely. There is no reason to have more than three credit cards. In fact, one is your best number. Having too many open accounts of one type can damage your score.
Wednesday, September 7, 2011
Collection Agencies And Conduct
Collection Agencies And Conduct
by Takara Alexis
When people are approached by a collection agency, many of them are automatically nervous. It's common to be nervous, since you literally have an entity reminding you that you have a debt to be paid. While it is legal to have collection agencies approach people in debt, many of the people who become nervous do not understand that there are certain laws that collection agencies must adhere to.
In the US, collection agencies have to abide by the Fair Debt Collection Practices Act. It was passed in 1978 and used to establish guidelines for fair debt collection practices to be made. Without these laws collection agencies would be able to harass you constantly from sunrise to sunset. So always make sure to know your rights, and what they are allowed and not allowed to do. There are also state laws that may affect collection agencies as well that differ from state, but here are a few from the Fair Debt Collection Practices Act.
Phone Contact- It is illegal to contact someone outside of the hours of 8am - 9pm local time. Deceit- It is illegal to misrepresent the debt, or pretend to be someone you are not, in order to intimidate the subject. (Such as pretending to be an attorney).
Abusive Language- Any profane language or abusive language is prohibited during communication related to the debt. Bad Debt List- It is illegal to put the name of the subject on a bad debt list.
Cease Contact- Once the collection agency has received a written notice that the subject wishes to prohibit contact, or refuses to pay the debt, it is illegal for the collection agency to continue contact with that person.
Attorney Contact- If you are represented by an attorney, they must contact the attorney. Persistent Phone Calling- Calling repeatedly calling someone is considered harassment.
by Takara Alexis
When people are approached by a collection agency, many of them are automatically nervous. It's common to be nervous, since you literally have an entity reminding you that you have a debt to be paid. While it is legal to have collection agencies approach people in debt, many of the people who become nervous do not understand that there are certain laws that collection agencies must adhere to.
In the US, collection agencies have to abide by the Fair Debt Collection Practices Act. It was passed in 1978 and used to establish guidelines for fair debt collection practices to be made. Without these laws collection agencies would be able to harass you constantly from sunrise to sunset. So always make sure to know your rights, and what they are allowed and not allowed to do. There are also state laws that may affect collection agencies as well that differ from state, but here are a few from the Fair Debt Collection Practices Act.
Phone Contact- It is illegal to contact someone outside of the hours of 8am - 9pm local time. Deceit- It is illegal to misrepresent the debt, or pretend to be someone you are not, in order to intimidate the subject. (Such as pretending to be an attorney).
Abusive Language- Any profane language or abusive language is prohibited during communication related to the debt. Bad Debt List- It is illegal to put the name of the subject on a bad debt list.
Cease Contact- Once the collection agency has received a written notice that the subject wishes to prohibit contact, or refuses to pay the debt, it is illegal for the collection agency to continue contact with that person.
Attorney Contact- If you are represented by an attorney, they must contact the attorney. Persistent Phone Calling- Calling repeatedly calling someone is considered harassment.
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