Dealing with collection agencies.

Most collection agencies buy packages of loans that are in default for pennies on the dollar. They are bound by a different set of rules than the original creditor and there are differences in the way that you should negotiate with them. The first step is to have them validate the debt and you can read about how to do that and what it means in my post on Are You Being Hassled by a Collection Agency.

Some things to remember when negotiating with a collection agency:

1. All correspondence should be Certified Mail, Return Receipt Requested. You will want proof to send to the Credit Reporting Agencies.
2. Do Not talk to them on the phone. You need to have written proof of all negotiations, agreements on the phone are not binding.
3. They are not allowed to charge you for validating the debt.
4. They are not allowed to sue you unless they have validated the debt.
5. They are not allowed to report a debt to a Credit Reporting Agency until they have validated the debt.
6. They have 30 days from receipt of your request to provide proof of validation.

If they do not validate the debt within 30 days, you need to send them a request to remove the listing from the credit reporting agencies. Send them a copy of the original request for validation and a copy of the receipt along with a letter requesting that they remove the entry from the credit reporting agency. You can also dispute the entry with each credit reporting agency by sending them a letter with copies of your requests for validation. Most of the time the collection agency will remove the listing and you will be home free.

If they provide proof of validation, the next step is to begin negotiating settlement. This should also be done in writing and sent by Certified Mail Return Receipt Requested. Remember that the original creditor has written this debt off and sold it for pennies on the dollar. You can start your offers as low as 30% of the original amount. If you can pay your offer immediately upon reaching agreement you stand a better chance of settling for the low amount. If not you should request a reasonable repayment schedule.

This is something that we can help you with quite easily here at easy-consolidation.com

Annoying creditor calls. Debt settlement helps.

One negative factor of debt settlement is numerous collection calls from collection companies who try their level best to collect the debt.

Debt settlement happens when the clients stop paying their creditors directly. Most debt settlement companies suggest their clients to cease communication with creditors. However, collection companies and creditors keep calling and “harassing” debt settlement clients and often tell them how “bad” a debt settlement program is in order to keep collecting debts, and creditors usually don’t stop calling until they are paid, getting payments, or forced to stop calling by some legal mechanism.

Before we proceed further, it is important to know about FDCPA (Fair Debt Practices Collection Act).

The Fair Debt Collection Practices Act is an Act which creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act. Its purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information’s accuracy.

FDCPA has certain guidelines for collections companies. The collection companies are not supposed to call clients too late or too early, they are not supposed to threaten or abuse clients, they cannot discuss personal debt with relatives or neighbors, etc. Clients also have an option to tell creditors or collection companies to not call them at work or call their cell phone as these could cause unjust harm to client’s finances. Clients can also request in writing not receiving any calls at all, using a “cease and desist” letter.

There are certain untouched areas of FDCPA:

1. FDCPA is only applicable to collection agencies and some debts are held for long periods of time by original creditors.

2. Collection agencies use a variety of techniques to not comply with the FDCPA. To name some, ignoring it altogether! Cease and desist letters are often ignored as well and the phone keeps on ringing. Unless the client has an ability to either record calls or hire an attorney or maintain a strict log of violations and calls, these violations will continue unabated.

A new service provided by DAAN group utilizing a new technology solves the problems described here. DAAN facilitates all collection calls to be routed to a law firm which maintains a log of all collection calls and FDCPA violations and then forwards the call to the concerned debt settlement company. The technology is easily installed into any home phone, the most problematic source of creditor phone calls. Over time, with correct usage of the DAAN technology, creditors typically find themselves no other outlet than to settle with the intermediary company.

There are few debt settlement companies that provide DAAN services to their clients. This helps the clients manage collection calls and live a peaceful life. Always make sure your debt settlement company offers you protection from collection calls.

The unsecured debt consolidation loan.

Now a days debts have become an integral part of your budget. There are certain expenses that you cannot bear within your own pockets. But sometimes, due to some reasons, you have to borrow funds from other sources without repaying the existing loans. It puts you in trouble as the lenders keep on digging your empty pockets. In this circumstance Unsecured Debt Consolidation Loan prove extremely useful.

Unsecured debt consolidation loans are indeed a great help for debtors. It implies that you shoot a number of unsecured loans by another unsecured loan. But more often than not, it involves no security against your money provision and serves your purpose without collateral. It tries to cut your cost with existing debt to a considerable level. The rate of interest you are offered always remains much lower to that of all your existing debt. With the financial process you reduce your debt burden by 50% to 60%.

Though loan providers charge comparatively and it is thus they try to incur a bit high rate of interest on unsecured Debt Consolidation Loan. Even now, you can find it competitive as so many lending players are rivaling to enlarge their business stake. As well as, you can find innumerable websites working for the same cause. After collating different information from various sites, you can compare their loan quotes. And that will help you to choose the best possible one to apt to your situation.

However for all that, a good amount of sum is released. The sanctioned amount usually depends on your repayment capacity and employment-ability. So, depending upon your income level and repaying capability you are granted a good sum. Despite the fact, a borrower of any class structure can get a sum anywhere from $1,000 to $25,000. Along with that, you are given a repayment period of 6 months to 10 years under unsecured debt consolidation loans.

For the unsecured debt consolidation loans, you can make the loan application to any debt consolidation agencies. These agencies help you with their best services of experts of the field. Usually, these experts project a plan to eliminate your outstanding dues with the lowest possible costs. As well as, commercial institutions help you renegotiate with your lenders on your behalf for a better deal.

Three ways to help save money.

Today most people live paycheque to paycheque and it’s not uncommon to have ten different monthly payments. There are more and more people getting debt consolidation loans and it’s becoming harder to save with the easy access to credit. This is creating financial hardships with not being able to save and can interfere with your financial goals and dreams. By getting back to the basics of saving money it will help you to establish your financial goals and to manage your debts effectively.

The three easiest rules of saving money are; Establish a budget, Pay yourself first and, Eliminate debt by cutting expenses.

Establish a budget
One of the most important ways to begin to save is to establish a budget and most financial institutions have free budget books to keep track of all your expenses. Many of us couldn’t be bothered to start a budget, but if you don’t know how much money is available then it’s difficult to save. A budget is a financial snapshot of all your positive cash flows versus your negative cash flows. Generally most budgets are calculated monthly therefore you must keep track of all your expenses over a one month period. By taking the time to record all your expenses and implementing your budget, it will give you either a positive or negative monthly cash flow. Now you can begin to save to reach your financial goals. The budget will give you back financial control over your expenses and taking only about two to three hours a month, I consider it time well spent.

Pay yourself first
The next best way to start saving money is the “pay yourself first rule.” Essentially, you are making sure you’re saving for yourself before paying others. The best way to do this is to have 10 percent taken off your paycheque and directed into a high interest savings account, this way you won’t see the deduction or really miss it as well as forcing yourself to live within your means. If you don’t start saving now, then you will keep delaying. Once you establish a savings plan then you can start saving for your financial goals. By doing this your net worth will increase and you’re creating positive behavior. Most people build their wealth over a lifetime not overnight. Once you have started paying yourself first then you can start looking at suitable investments that match your timeframe.

Eliminate debt by cutting expenses
The next most logical way to start saving is to eliminate debt and cut expenses. The major difference is to try and eliminate ‘bad debt’ versus ‘good debt.’ Paying off loans for investments such as property or capital is termed ‘good debt’ because these debts have the potential to appreciate and increase your overall net worth. The debts to eliminate or reduce are the unnecessary, or splurge buying expenses. We all know how much a daily cup of Starbuck’s coffee adds up to over a month and some of us like to spend money on unnecessary consumer items. You really have to figure out how much of these purchases you really need and cut the rest of these expenses down if you’re paying too much. Also work on paying off the highest interest credit cards first and it’s better to have fewer credit cards than too many. This will also help improve your credit rating. The most effective way to save money is to prepare a budget to help you control your expenses and eliminate unnecessary ones. Most of us don’t spend enough time managing our money. By paying yourself first you’re putting yourself ahead of others and creating a nest egg. Once you have a budget, then you can eliminate unnecessary debt and take control over your finances. Too many people let consumer companies take advantage of them and it’s important to be aware of this in your monthly spending. Try and eliminate bad debt and know what good debts are. Keeping track of your cash flows will help you have piece of mind knowing that you’re taking action for your financial goals and dreams.

Good luck, stay consistent and stay tuned!

Consumer Credit Counseling Debt?

There are so many different ways of going about getting yourself the proper debt relief help that you are looking for often times many people can feel a bit overwhelmed as to which would be the best possible choice for them and their own unique financial situation. Consumer credit counseling debt help will allow you to make an informed decision when it comes time to make that jump.

Debt Consolidation in and of itself is a way that will allow you to quickly reduce the amount of interest that you are paying on your outstanding bills while at the same time making it a much more manageable process that you can budget for yourself each month. This is one of the best ways to go about dealing with your personal debt crisis. Consumer credit counseling debt help can actually aid you in finding different alternatives that could suit you better though.

The most important piece of advice that can be given to you when it comes to getting the best possible help with your debt situation is to shop around for the best possible rates and terms and conditions when it comes to choosing a debt reduction company to work with. There are sites out there such as this one that can allow you to get multiple quotes from different debt relief companies which in turn will allow you to get the research that you need before hand before you have to make a decision. This is an invaluable tool to individuals looking to get debt relief help.

If you want to completely make over what your current financial situation looks like, going with consumer credit counseling debt help may be the best option for you and it will help you make the long term habit breaking changes that you need in order to stay debt free for the rest of your life. Though it is advisable that this is something that only the most serious of individuals that are looking to clear the debt from their shoulders should consider because it’s going to take a little bit of work on your behalf, but it will all pay off in the end quite easily.

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