Thinking About Debt Settlement? ? Questions To Ask Yourself Before Settling Debt

It’s no secret that Americans are struggling financially. Massive layoffs, inflation, unaffordable healthcare, skyrocketing gas prices and hiked-up interest rates on credit card accounts are plunging millions of consumers to the brink of bankruptcy. However, many of the would-be bankrupt are turning to a less drastic solution to their debt problems: debt settlement. A Super-Short History of Debt Settlement Debt settlement is nothing new. It’s simply an agreement between two [...]

Obama Versus the Credit Card Issuers – Debt Settlement

As debt settlements, bankruptcies, and the unpopularity of credit card companying continue to increase, the Obama administration reiterated its support behind legislation in Congress that would put restrictions on the imposition of higher fees and interest rates on consumers. Following on promises made during his campaign, President Obama met with top brass from the largest credit card issuers in the country to push them toward action that would reduce abusive [...]

Debt Settlement And The IRS

Debt settlement or forgiven debt is considered income by the IRS and incomes, as we know, are taxable. It’s, of course, not popular with people, as it appears as if the government is making life harder for consumers, by taxing them, for availing debt relief. Since we cannot do anything about that, let’s just discuss briefly how the IRS taxes forgiven debt. Creditors are mandated to write off debts that [...]

States That Have Banned or Are In the Process of Banning Debt Settlement Up Front Fees

At first glance this program sounds like the perfect solution. I get a small monthly payment. I get out of debt in 12 to 36 months and I can settle my debt for pennies on the dollar.The problem is that most people entering into this plan do not understand the realities and possible consequence of debt settlement. Many of the companies offering debt settlement fail to tell prospective clients that [...]

Will Credit Card Debt Settlement Hurt Credit Score?

In all likelihood you cannot settle credit card debt unless it is delinquent. Typically credit card issuing companies settle debts simply because they think you cannot or would not pay. To arrive at that point, you’d need to stop making payment on your credit card bills.  This will certainly bust up your credit score, incur penalties and lead to collection calls. Debt settlement’s impact on your credit score is almost [...]

When debt settlement makes sense

The dropout rate for credit counseling is high. There is a host of possible reasons for it, but the number one reason may as well be, affordability. The program runs for three to five years – on the creditor’s terms, and one missed payment could very well mean the end of the program for the consumer. So sometimes they voluntarily drop out and sometimes they get kicked out of the [...]

Why Ignoring Bills Isn’t the Answer – Debt Settlement

Your bills can start to get the better of you quickly in this economy.  When you start to think you’re paying out more money than you have, it’s a frightening feeling.  This can happen for a variety of reasons, but once you’re in the situation you’re probably less concerned with how you got there than how to get out.  The most important thing to remember is not to ignore your [...]

Obama Versus the Credit Card Issuers – Debt Settlement Help

As debt settlements, bankruptcies, and the unpopularity of credit card companying continue to increase, the Obama administration reiterated its support behind legislation in Congress that would put restrictions on the imposition of higher fees and interest rates on consumers. Following on promises made during his campaign, President Obama met with top brass from the largest credit card issuers in the country to push them toward action that would reduce abusive [...]

Credit Card Debt Settlement

Credit card debts are like a financial black hole which can rob your good night sleep. So first we need to know how to destroy or do away credit card debts. If you are one of those who use their credit cards at every other place, then you are most likely to face huge credit card debts in future which can also lead to bankruptcy. After using your credit card [...]

How Will Debt Settlement Affect my Credit Report ?

Once you’ve overdue bills and collections on your credit report, you generally do not have much choice. You could pay up your bills entirely. However, it is almost always impossible. If you were capable of raising the full amount of money, you would have anted up a long time ago. Alternatively, you can disregard the debt. Your creditor will “charged off” your account. For the next 7 years, you will [...]

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