Generally, the debt consolidation benefits offered through credit counseling or a debt consolidation mortgage loan can provide inferior results. To illustrate why, let’s consider the following example:
Here’s a husband and wife that reside in Houston who owe $56,000 in credit card debt. The husband is a self-employed landscaper who brought in 60% of his family’s total household income. Because of the economy, one day, his business started losing business income. Gradually, a large portion of his homeowner clients in the Houston area began losing their properties due to foreclosures. Additionally, his family was uninsured and they owed $9,800 in medical bills.
Feeling the crunch of living paycheck-to-paycheck, the husband and wife decided to enroll in a credit counseling debt management plan. But the results were disastrous! The first problem in relying on the credit counseling program was that the monthly payment of the debt management plan was literally the same payment as the minimum payments they previously fought to make.
A second problem was that some months, the debt consolidation program failed to make the monthly payments on time. As a result, creditors reported “late payments” on the husband and wife’s credit file. Additionally, the credit counseling program was unable resolve some of the husband’s business debt. But after eleven months came the real nail on the coffin! The couple dropped out of the credit counseling after realizing that their $56,000 credit card debt load was barely reduced.
The true reason why debt consolidation was unsuccessful for couple this is that it only reduced the interest rate on their credit card accounts. Having a combined annual household income that dropped from $92,000 to $69,000, this limited type of financial relief wasn’t enough. On top of this, the couple still had to deal with the same monthly living expenses that they had prior to decline in the husband’s business income, such as the mortgage payment, two car payments, and a $300 monthly payment toward medical bills.
The above story has a happy ending despite the Houston couple’s failure in trying to consolidate their debt. In lieu of filing bankruptcy, they joined the Debt Free League debt settlement program. Rivaling debt consolidation, and through our key relationships with creditors, collection agencies, and collection attorneys, we were able to help them quickly settle their credit card and business debt.
Our Debt Liquidation program is ideal for residents of Houston, Dallas, San Antonio, Austin, El Paso, Fort Worth, Arlington, Corpus Christi, Plano, Garland, and other cities in Texas that are in need of serious debt relief. Aside from an affordable payment, our average Texas debt settlement client repays as little as 50 percent of what they owe. You can also be “debt-free” in as little as 24 to 36 months. You may qualify for our program if you owe $5,000 or more in unsecured debts, such as credit card accounts, medical bills, collection accounts, and business debt. No credit check or home ownership is required.
Contact a Debt Free League Financial Advisor for a free no-obligation Debt Evaluation.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
http://www.debtfreeleague.com/
Free Financial Consultation
Monday, February 2, 2009
Debt Settlement: Credit and Legal Conerns Explained
Credit and legal concerns are the two top issues generally addressed by people who are interested in joining a debt settlement program. If a credit or legal problem arises from your debt, debt settlement is actually a great solution. To give you a better appreciation of how debt settlement can help you counter potential credit, or legal problems, let’s walk you through the following scenario:
Phone conversation between consumer and Debt Free League Financial Advisor:
Consumer: “Will your debt settlement program reduce the interest rates on my accounts like a credit counseling agency?”
Financial Advisor: “Actually we’re very different. Credit counseling would only reduce your interest rates, and sometimes interest rate reduction doesn’t do much to resolve your problem. In comparison, what we do is negotiate directly with your creditors to get you a substantial reduction of your entire debt! This reduction will be based on the total debt principal, interest, and fees on each of your accounts.”
Consumer: “Can a creditor sue me while I’m in your debt settlement program?
Financial Advisor: “Obviously, whether you’re in or out of a debt settlement program, the downside of being delinquent in repaying your debt could be a creditor lawsuit. But lawsuits rarely happen to people in debt settlement programs. For creditors, using the legal system to try to collect an unsecured debt is often inconvenient, especially if the debt isn’t very large. Additionally, even after a creditor lawsuit, there is light at the end of the tunnel. At the Debt Free League website there are various examples of successful out-of-court settlements that our negotiators reached with creditor lawsuits. These settlements help place our clients out of harm's reach from judgments, and to achieve a net savings on their outstanding debts.”
Consumer: “What is the drawback to my credit if I join your debt settlement program?”
Financial Advisor: “We don’t espouse that you not pay your debt. But many of our clients who have suffered a financial hardship opt to discontinue the endless monthly minimum payments, so that they can conveniently save money to settle their debts. Not making the minimum payment as required on your credit agreement, the drawback is that your consumer credit declines. But the good news is that credit-wise, settling your debt can produce a huge benefit. By paving your debt paid, you will improve your debt-to-income ratio, which is exceptionally for people with extensive debt. A high debt-to-income ratio causes people to be turned down for home and auto loans. Secondly, being debt-free also improves your debt-to-credit ratio. Many people are unaware that the debt-to-credit ratio composes roughly one third of the credit score. So unless, you drop out early from our debt settlement program, by completing it, you can actually improve your credit.
To learn more of the facts about our debt settlement program, go to our FAQ section.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
http://www.debtfreeleague.com/
Free Financial Consultation
Phone conversation between consumer and Debt Free League Financial Advisor:
Consumer: “Will your debt settlement program reduce the interest rates on my accounts like a credit counseling agency?”
Financial Advisor: “Actually we’re very different. Credit counseling would only reduce your interest rates, and sometimes interest rate reduction doesn’t do much to resolve your problem. In comparison, what we do is negotiate directly with your creditors to get you a substantial reduction of your entire debt! This reduction will be based on the total debt principal, interest, and fees on each of your accounts.”
Consumer: “Can a creditor sue me while I’m in your debt settlement program?
Financial Advisor: “Obviously, whether you’re in or out of a debt settlement program, the downside of being delinquent in repaying your debt could be a creditor lawsuit. But lawsuits rarely happen to people in debt settlement programs. For creditors, using the legal system to try to collect an unsecured debt is often inconvenient, especially if the debt isn’t very large. Additionally, even after a creditor lawsuit, there is light at the end of the tunnel. At the Debt Free League website there are various examples of successful out-of-court settlements that our negotiators reached with creditor lawsuits. These settlements help place our clients out of harm's reach from judgments, and to achieve a net savings on their outstanding debts.”
Consumer: “What is the drawback to my credit if I join your debt settlement program?”
Financial Advisor: “We don’t espouse that you not pay your debt. But many of our clients who have suffered a financial hardship opt to discontinue the endless monthly minimum payments, so that they can conveniently save money to settle their debts. Not making the minimum payment as required on your credit agreement, the drawback is that your consumer credit declines. But the good news is that credit-wise, settling your debt can produce a huge benefit. By paving your debt paid, you will improve your debt-to-income ratio, which is exceptionally for people with extensive debt. A high debt-to-income ratio causes people to be turned down for home and auto loans. Secondly, being debt-free also improves your debt-to-credit ratio. Many people are unaware that the debt-to-credit ratio composes roughly one third of the credit score. So unless, you drop out early from our debt settlement program, by completing it, you can actually improve your credit.
To learn more of the facts about our debt settlement program, go to our FAQ section.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
http://www.debtfreeleague.com/
Free Financial Consultation
Texas Debt Settlement Program Helps You Avoid Bankruptcy and Legal Problems
Creditor harassment is one the biggest culprits in causing consumers to seek bankruptcy protection. Just about anyone with delinquent creditor accounts will cringe from the bombardment of the daily collection calls and the legal threats. However, if you’re a Texas debt settlement client who wants to avoid creditor harassment and bankruptcy, good news is up ahead!
To your benefit, Texas has “pro-debtor” laws that diminish the incidence of creditor harassment and both the potential, and outcome of creditor lawsuits. In preventing creditor harassment as a Texas debt settlement client, you can benefit from the issuance “cease and desist” letters to pestilent debt collectors. This legal notification helps you exercise your rights under the Fair Debt Collection practices (FDCPA) to stop them from continuing collection calls.
While in most states, the cease and desist letter can only stop a third-party debt collector from calling you, in Texas this letter also applies to the original creditor, or party that originally issued you credit. Texas extends the power of the cease and desist letter from the point of non-payment until the debt’s charge-off, which is typically six months after the date of non-payment. This is a key benefit in stopping creditor harassment since the original creditor may be the actual party initiating collection calls until the debt is written off and is sold, or assigned for collection.
As a Texas debt settlement client, you can also be successful in fighting creditor lawsuits. Although lawsuits are rare, no matter how small your debt may be, if it remains delinquent, you can still be threatened with a “wage garnishment.” If the creditor sues you and wins a judgment against you, they can then pursue a garnishment order forcing your employer to garnish a percentage of your wages. (Note: Garnishments vary from state to state, ranging from 10-25%.)
However, in Texas, the “debtor-friendly state protects your wages from being garnished.
Again, as a Texas debt settlement client, relief can be in sight in the event ajudgment creditor seeks a property lien. By placing a lien on your home, a creditor can try to collect your unpaid debt from the proceeds of the sale, or refinance of your home. But fortunately, as a Texas debt settlement client, you are able to shelter your home through a 100% homestead protection. (Note: The Texas homestead exemption has no dollar value limit.)
Aside from your extended legal rights in Texas, as a Texas debt settlement client, our effective debt negotiation strategies can also help counter a creditor lawsuit. Many Debt Free League Texas debt settlement clients have avoided judgments and bankruptcy through out-of-court settlements of their debts. Thus, settling your debt simply makes more sense than hiding from the nasty debt collectors or a life after bankruptcy.
You can view various Debt Free League settlement examples at http://www.debtfreeleague.com/settlement_examples.html.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
http://www.debtfreeleague.com/
Free Financial Consultation
To your benefit, Texas has “pro-debtor” laws that diminish the incidence of creditor harassment and both the potential, and outcome of creditor lawsuits. In preventing creditor harassment as a Texas debt settlement client, you can benefit from the issuance “cease and desist” letters to pestilent debt collectors. This legal notification helps you exercise your rights under the Fair Debt Collection practices (FDCPA) to stop them from continuing collection calls.
While in most states, the cease and desist letter can only stop a third-party debt collector from calling you, in Texas this letter also applies to the original creditor, or party that originally issued you credit. Texas extends the power of the cease and desist letter from the point of non-payment until the debt’s charge-off, which is typically six months after the date of non-payment. This is a key benefit in stopping creditor harassment since the original creditor may be the actual party initiating collection calls until the debt is written off and is sold, or assigned for collection.
As a Texas debt settlement client, you can also be successful in fighting creditor lawsuits. Although lawsuits are rare, no matter how small your debt may be, if it remains delinquent, you can still be threatened with a “wage garnishment.” If the creditor sues you and wins a judgment against you, they can then pursue a garnishment order forcing your employer to garnish a percentage of your wages. (Note: Garnishments vary from state to state, ranging from 10-25%.)
However, in Texas, the “debtor-friendly state protects your wages from being garnished.
Again, as a Texas debt settlement client, relief can be in sight in the event ajudgment creditor seeks a property lien. By placing a lien on your home, a creditor can try to collect your unpaid debt from the proceeds of the sale, or refinance of your home. But fortunately, as a Texas debt settlement client, you are able to shelter your home through a 100% homestead protection. (Note: The Texas homestead exemption has no dollar value limit.)
Aside from your extended legal rights in Texas, as a Texas debt settlement client, our effective debt negotiation strategies can also help counter a creditor lawsuit. Many Debt Free League Texas debt settlement clients have avoided judgments and bankruptcy through out-of-court settlements of their debts. Thus, settling your debt simply makes more sense than hiding from the nasty debt collectors or a life after bankruptcy.
You can view various Debt Free League settlement examples at http://www.debtfreeleague.com/settlement_examples.html.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
http://www.debtfreeleague.com/
Free Financial Consultation
Credit Counseling and Debt Consolidation vs. Debt Settlement
Each year, millions of consumers who are in need of aggressive debt relief refer to credit counseling agencies, or debt consolidation loans. However, despite the popularity of credit counseling and debt consolidation loans, both options are only practical to reduce high interest rates. Generally, each consolidation approach is a “band-aid” treatment for people who have a lot of debt.
Excessive debt requires much more financial relief than interest rate reduction. It is a cancer that you must immediately cut at the root. Realistically, if your spouse lost his or her job, your family may not financially survive simply by lowering credit card interest rates. This explains why 79% of all consumers who enroll in credit counseling debt management plans eventually drop out and many dropouts end up doing bankruptcy. Another harsh reality of debt consolidation is that 65% of the people, who take out debt consolidation loans, incur even more debt!
Compared to credit counseling and debt consolidation, the debt settlement program offered through Debt Free League is clearly the right choice to help consumers and small business owners get out of debt faster and more conveniently. We also offer the following benefits:
· Up to a 70% settlement on debt interest, fees, and principal
· Assistance in fighting creditor harassment
· Shorter (12-36 month) debt repayment term
· Settlement of medical debt, and business debt!
· Low monthly payments
Additionally, as a Debt Free League program graduate, you can improve your debt-to-income ratio, and your debt-to-credit ratio, which represents about one third of your credit (FICO) score. Thus in the end, there can be LIFE after debt.
For more information on our debt settlement program, visit http://www.debtfreeleague.com/.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
http://www.debtfreeleague.com/
Free Financial Consultation
Excessive debt requires much more financial relief than interest rate reduction. It is a cancer that you must immediately cut at the root. Realistically, if your spouse lost his or her job, your family may not financially survive simply by lowering credit card interest rates. This explains why 79% of all consumers who enroll in credit counseling debt management plans eventually drop out and many dropouts end up doing bankruptcy. Another harsh reality of debt consolidation is that 65% of the people, who take out debt consolidation loans, incur even more debt!
Compared to credit counseling and debt consolidation, the debt settlement program offered through Debt Free League is clearly the right choice to help consumers and small business owners get out of debt faster and more conveniently. We also offer the following benefits:
· Up to a 70% settlement on debt interest, fees, and principal
· Assistance in fighting creditor harassment
· Shorter (12-36 month) debt repayment term
· Settlement of medical debt, and business debt!
· Low monthly payments
Additionally, as a Debt Free League program graduate, you can improve your debt-to-income ratio, and your debt-to-credit ratio, which represents about one third of your credit (FICO) score. Thus in the end, there can be LIFE after debt.
For more information on our debt settlement program, visit http://www.debtfreeleague.com/.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
http://www.debtfreeleague.com/
Free Financial Consultation
Debt Settlement Examples – See the Proof!
There are both good and bad debt settlement companies out there. So it is best to do your homework in order to find the right service. As the Better Business Bureau states, “check before you write the check.” Otherwise, you can easily fall into a number of pitfalls.
A general pitfall in finding a good debt settlement company, are companies that make “undeliverable” promises or guarantees. The truth is that no company can guarantee to settle your debt. The Federal trade Commission has fined companies that have “guaranteed to settle people’s unsecured debts for a specific amount.” A legitimate debt settlement company only “estimates” settlement results based on their actual settlement record and the degree of your financial situation.
Also keep in mind that a settlement strategy can vary greatly from one creditor to the next. Thus, it is recommended to ask a debt settlement company for actual proof of some of their settlements. This will also help you see if the company has any experience in negotiating your type of collection accounts.
Most debt settlement companies only negotiate personal unsecured debts, such as credit card accounts and estimate their settlements at 50% of the debt balance. In comparison, Debt Free League additionally negotiates medical debt and business debt.
In the last quarter of 2008, our debt negotiators maintained a monthly settlement average of 38-42%! We achieved these settlements for our clients by negotiating with some of the top creditors, collection agencies, and collection attorneys in the nation.
Please visit our website to view various debt settlement examples.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
http://www.debtfreeleague.com/
Free Financial Consultation
A general pitfall in finding a good debt settlement company, are companies that make “undeliverable” promises or guarantees. The truth is that no company can guarantee to settle your debt. The Federal trade Commission has fined companies that have “guaranteed to settle people’s unsecured debts for a specific amount.” A legitimate debt settlement company only “estimates” settlement results based on their actual settlement record and the degree of your financial situation.
Also keep in mind that a settlement strategy can vary greatly from one creditor to the next. Thus, it is recommended to ask a debt settlement company for actual proof of some of their settlements. This will also help you see if the company has any experience in negotiating your type of collection accounts.
Most debt settlement companies only negotiate personal unsecured debts, such as credit card accounts and estimate their settlements at 50% of the debt balance. In comparison, Debt Free League additionally negotiates medical debt and business debt.
In the last quarter of 2008, our debt negotiators maintained a monthly settlement average of 38-42%! We achieved these settlements for our clients by negotiating with some of the top creditors, collection agencies, and collection attorneys in the nation.
Please visit our website to view various debt settlement examples.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
http://www.debtfreeleague.com/
Free Financial Consultation
Debt Settlement Saves You The Hassle of Creditor Harassment
Some people who enroll in debt settlement programs make the mistake of talking to debt collectors. But they’re breaking an essential rule: DON’T TALK TO CREDITORS. By doing this, they’re allowing debt collectors to antagonize them with intimidation tactics. This also generally jeopardizes the future opportunity of getting a good settlement.
Unquestionably, if you have a creditor account that goes into “collection”, the collection calls will get nastier. This happens because debt collectors are keenly aware that there’s a greater risk of to collect the unpaid debt. Working on a “commission basis” also pressures many debt collectors to use abusive collection tactics. But many debt collectors who engage in such collection practices frequently break the law!
A debt collector may make false threats to force you to pay them, such as threatening to incarcerate you, or take away your home. He or she may even lie to you by saying that they do not work with debt settlement companies. But the Fair Debt Collection Practices Act (FDCPA) gives you many rights to help you counteract illegal collection practices. Additionally, the Debt Free League can help you fight creditor harassment. When you hire us, our professional debt negotiators will do all the talking with your creditors to broaden your path to get out of debt.
Visit our site to learn how our Debt Liquidation program can help you fight debt collection.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
http://www.debtfreeleague.com/
Free Financial Consultation
Unquestionably, if you have a creditor account that goes into “collection”, the collection calls will get nastier. This happens because debt collectors are keenly aware that there’s a greater risk of to collect the unpaid debt. Working on a “commission basis” also pressures many debt collectors to use abusive collection tactics. But many debt collectors who engage in such collection practices frequently break the law!
A debt collector may make false threats to force you to pay them, such as threatening to incarcerate you, or take away your home. He or she may even lie to you by saying that they do not work with debt settlement companies. But the Fair Debt Collection Practices Act (FDCPA) gives you many rights to help you counteract illegal collection practices. Additionally, the Debt Free League can help you fight creditor harassment. When you hire us, our professional debt negotiators will do all the talking with your creditors to broaden your path to get out of debt.
Visit our site to learn how our Debt Liquidation program can help you fight debt collection.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
http://www.debtfreeleague.com/
Free Financial Consultation
Debt Settlement Book Reveals Schemes Creditors Hid about Your Debt
The debt settlement tip you’re about to learn is provided to you by courtesy of the free debt elimination book, SETTLE Personal, Medical & Business Debt for PENNIES on the Dollar ©. Victor N. Chevalier, the author of this book, is a debt settlement industry expert who has written two books on the timely topic of debt settlement a.k.a. “debt negotiation,” a widely recognized powerful bankruptcy alternative.
Most people are fairly ignorant of the causes of their debt. But if you plan to effectively get out of debt and stay out of it, it is essential to know exactly how you got into debt. “Fear of the unknown,” paralyzes debtors to do “nothing” and let their debts spiral out of control. But learning about the central cause of your debt and how the debt settlement (debt negotiation) process can help you can be empowering.
Chapter #1 of SETTLE Personal, Medical & Business Debt for PENNIES on the Dollar © reveals the history of your debt and various hidden financial industry schemes that are designed to perpetuate and heighten your debt load. Throughout the book, you will also learn how Debt Free League rivals other often-inferior debt elimination options, such as bankruptcy and debt consolidation.
Additionally, you will learn valuable tips to achieve success dealing with creditors and debt collectors. You will also see how debt settlement favors the self-employed and how when compared to bankruptcy and credit counseling, it can be a much better solution to wipe out your debt and restore your credit.
Visit our site to learn more about debt settlement at http://www.debtfreeleague.com/.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
Free Financial Consultation
http://www.debtfreeleague.com/
Most people are fairly ignorant of the causes of their debt. But if you plan to effectively get out of debt and stay out of it, it is essential to know exactly how you got into debt. “Fear of the unknown,” paralyzes debtors to do “nothing” and let their debts spiral out of control. But learning about the central cause of your debt and how the debt settlement (debt negotiation) process can help you can be empowering.
Chapter #1 of SETTLE Personal, Medical & Business Debt for PENNIES on the Dollar © reveals the history of your debt and various hidden financial industry schemes that are designed to perpetuate and heighten your debt load. Throughout the book, you will also learn how Debt Free League rivals other often-inferior debt elimination options, such as bankruptcy and debt consolidation.
Additionally, you will learn valuable tips to achieve success dealing with creditors and debt collectors. You will also see how debt settlement favors the self-employed and how when compared to bankruptcy and credit counseling, it can be a much better solution to wipe out your debt and restore your credit.
Visit our site to learn more about debt settlement at http://www.debtfreeleague.com/.
Also check out our "Debt Settlement Blog" at http://debtfreeleague1.wordpress.com/
Debt Free League
Toll-free: 1.800.213.9968
Free Financial Consultation
http://www.debtfreeleague.com/
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