It’s a known fact that debt collection agencies regularly violate the law in the process of collecting debts. Many years of poor oversight and neglect have allowed these companies to cross the boundaries beyond acceptable limits.

In 2010 the mortgage industry was exposed for “robo-signing” foreclosure papers on millions of American Homeowners.  When it first came out there was a huge uproar and publicity blitz by the banking industry. Sadly, this story has slipped into the shadows of American Consciousness as foreclosures continue to climb unchecked.

Many don’t realize that “robo-signing” is the norm for the banking industry, not the exception.  Collection Agencies have used pre-signed affidavits for years to validate and confirm debts, many of which are overstated or not even owed at all.  This interesting article in the Wall Street Journal – titled Dead Soul Is a Debt Collector chronicles just how bad it is.  

Thousands of affidavits, signed by a woman who died in 1995 have been used in court to legally validate and document debt.  There is no oversight, no morals, no compass for doing a job well.  Because it’s in a computer somewhere, right or wrong, consumers are harmed daily by these companies.  

Dead Soul Debt Collectors

Most consumers that I talk with want to get pay off their debt.  They simply run into brick walls when attempting to work with collection agencies or original creditors. These tactics clearly outline why it’s important to hire reputable professionals whose objective is to facilitate the mine fields for you.

One such company is Debt Pros Group, consumer debt consultants in Redding, California.  

Technorati Tags: credit card debt relief, Debt Settlement, eliminate Credit card debt, paying off credit card debt

Any choice in life has pros and cons.  Credit card debt is no different.  Choosing to settle your debt for less than what you owe has some definite pros.

Pros:   Debt Settlement Save Time and Money.

• Typically, debt settlement programs last from 2 – 4 years.  
• Debt is usually settled for less than the principal balance.  This means that a significant amount of interest is saved over the life of the debt

Technorati Tags: Debt Settlement, Legal Implcations of Debt Settlement, Pros and Cons of Debt Settlement

One of the most common questions we get is how debt settlement will impact a credit score. Normally, by the time a client reaches the point of calling for debt settlement help, their credit has already been or is about to be impacted.

If you are current on all of your payments, debt settlement will negatively affect your credit score. With that said, if you can afford to pay off your debt in full on your own, you should do so. There are non hardship programs available that can help you get your spending under control.

It is important to note that even if you are current with your payments but your credit cards are maxed out, your credit score profile can be negatively impacted.

If you are struggling, are already behind in your credit card payments or feel you may be in the near future, your first goal should be to get out of debt then rebuild your credit profile.  As you move through the debt settlement program, each time a debt is settled, the creditor is required to report a 0 balance owing on the credit report.

Every credit situation is unique.   We cannot predict or make any promises regarding your individual credit outcome after debt negotiation.

Please visit the following links for more information:

www.fico.com

www.creditcards.com

Technorati Tags: credit score, Debt Settlement, fico score

Debt Settlement is simply the process of negotiating a reduction in the principal balance in your credit card balances.  

Often it creates a win/win scenario for both the creditor and the consumer.

The process is simple, but important, as not everyone will qualify for the program.

1. Your professional debt consultant will evaluate your situation and complete a debt analysis. If you qualify for debt settlement, they will work with you to determine a monthly payment plan, estimate the length of your program and prepare your agreement. You will be able to set the date of your monthly draft which can be deducted from a checking or savings account.
2. Once your agreement is received, it is sent for final approval. After you are approved you will receive a welcome call to confirm that you completely understand the program and have no unanswered questions.
3. Depending on your program and creditors, your creditors may or may not be immediately contacted after you are enrolled.
4. You will receive a welcome packet with important information on what to do if you take a call from a creditor. There may be some additional details you will need to provide and send back to your program provider.
5. As money accrues in your special purpose account, debts are negotiated and settled one at a time. You will receive notification each time an account is settled and when all accounts are settled you will receive a graduation package with copies of all settlement letters provided by the creditors as well as other valuable information and resources.

Technorati Tags: Debt Negotiation, Debt Settlement

Millions of Americans are struggling with Credit Card Debt.  In today’s challenging economy many are finding themselves over their heads due to reduced income, loss of job, or simply because the credit card companies have raised interest rates to the point where the consumer can’t keep up with minimum payments.

If this has happened to you, don’t panic.  Start by educating yourself on the options available to you.  The options listed below, assume that you are facing a financial hardship and that you are struggling to make your credit card payments:

Option 1:  Consumer Credit Counseling:

1. You hire a Consumer Credit Counselor to negotiate with your creditors and lower your interest rate.
2. 100% of the debt is repaid, plus interest, plus monthly fees to the credit counselor fees.
3. The Credit Counselor is paid by the credit card company for any debt that they recover.  This may cause conflict of interest.
4. Takes 5 – 7 years to get through the program.
5. It will impact the credit in some way.  Normally, you will not be able to get new credit while in credit counseling.

Technorati Tags: Debt Help, Debt Negotiation, Debt Settlement, Getting Out of Debt