Credit Report Repair Guide

Recently I’ve been hearing about companies which are telling people who are searching for debt consolidation programs, that you must now use a law firm to deal with your situation. They claim that it is now illegal for firms which are not law firms to perform debt negotiation.

This is not really accurate. The issue is that with organizations, such as these law firms, that charge upfront fees for their services. Almost all attorneys will charge their clients nearly a thousand dollars for a retainer. In addition to that they usually also charge as much as eighty dollars per month for their legal services.

Let’s have a look at this. You’re retaining the services of a law firm. That seems fantastic! Now what specifically are you retaining them to perform? Well if you examine their contracts you are retaining them for the purposes of settling your debt. The last time I looked there wasn’t any legal documents required for that, no court appearances. In fact there is no need for a lawyer or even a paralegal what so ever to merely negotiate your credit card debt.

Second as mentioned, you are also paying a monthly legal fee. What is that for? Well they are going to tell you they’re contacting your creditors telling them that they’re representing you. Well what they are doing is merely mailing them a power of attorney letter. This incidentally most collection companies file inside the large round file cabinet. Sending this letter will not end collection phone calls. Additionally, they don’t tell you this, but they do not deliver this letter to everyone of your creditors. The reason for this is that a number of creditors will immediately turn your file over to their legal division for a potential law suit when they receive any such letter.

The only real approach to get the telephone calls to totally cease will be to send them a cease and desist notice informing them that you don’t intend to pay them back the debt and that they are to stop all communications. You can envision what this kind of letter will result in. Should you stop all feasible avenues the creditor has to collect the funds from you, it’ll almost certainly cause them to make use of the court system to get back some of their losses. Additionally, a large number of settlement law firms are not even doing the work for you. You will find a number of pending law suits against these law firms proclaiming that every single element of the settlement work is getting accomplished by non attorney for profit businesses. Which means you are paying for services of an attorney but an attorney isn’t actually supplying you those services.

Now let’s look at the way they charge their negotiation fees. Nearly all law firms will charge you a flat price of fifteen to twenty percent of the total debt amount. This payment is spread out within the initial year or two payments you make. That means you’re paying the law firm for services that they’ve not even performed. Also if you’re paying them a set amount, where is their motivator to settle for the very least total amount?

Now according to the Federal Trade Commission’s ruling established October 27th a lawyer cannot demand any upfront charges except if the customer has a one on one meeting with the lawyer that would be managing the case. This doesn’t mean that you enter an office building, shake hands with an attorney, then have a paralegal hand you documents to sign. This meant that the actual attorney that you talked with, would go over the important points of the program with you at that time. And that attorney would be the person who will be dealing with your case. This is simply not how these settlement attorneys operate.

As for the declaration that only a law firm can supply debt consolidation programs . Well that is not exactly true. The Federal trade commission ruling says is that a organization offering credit card debt help can’t ask for advance fees for their services. It also states that they have to base their fees on their overall performance. This means they have to charge according to how much they are able to help you save.

Not only is this far better for the customer, it also presents that organization an incentive to do the absolute best they can for you. The more cash they are able to save you the more cash they are able to make. That is beneficial to both sides. Incorporate that with the truth that you don’t pay for the services before the settlement has been achieved. This means that you’ll actually be able to save up a lot more money at a faster rate and get the debts repaid quicker.

I recommend you speak to a debt analyst who can review with you all of your choices to see which one is really best in your scenario.

written by Credit Repair Guru \\ tags: credit card debt help, credit card debt relief, Debt Consolidation Companies, Debt Consolidation Programs

For many people, credit counseling and debt consolidation is the best option to manage their loans efficiently. But is it for everyone? You may be looking at your list of credit card loans, investment premiums, mortgages and other payments. You may be thinking –and many consolidation companies will tell you—that signing up will be the solution.

Before you do commit, see if you truly qualify for a credit counseling and debt consolidation program:

1. You are unemployed with no emergency fund to support your daily needs and pay off your loans. Even if you have a job coming your way in a month or so, it will take some time before you start earning significantly to pay off your loans.

   At the moment, you do not have any available cash whatsoever. Chances are that you are using your credit card but this means incurring more debt. In the meantime, late payment fees on your debt are piling up

   In this case, there are many non profit debt consolidation programs that will help you survive the rut of being in between jobs. These not-for-profit consolidation groups understand your case and offer free initial counseling. They also tend to have smaller start-up fees, some of which may gradually increase as soon as you gain better financial stability.

2. You are now using credit cards to meet daily expenses and unable to pay the monthly statement. It is also most likely that you are close to maxing out the credit limit. This is a sign that you do not have an emergency fund or have already used it up.

   A professional credit counseling and debt consolidation firm can help you manage the credit card loans efficiently based on how much you are earning. Good counselors will assess first your financial status and then find ways to wean you from more credit card purchases. They will also negotiate with the credit card company on your behalf for an easier payment schedule or lower fees.

3. You are up-to-date in meeting the minimum monthly payments but are barely making a dent in relieving the balance. This scenario shows how big the principal debt has become and how the interest rates have grown with it. A little number crunching may reveal that the monthly payments have only covered the interest rate, and not the loan itself.

   Again, credit counseling and debt consolidation services include having counselors talking to those companies you owe for friendlier terms. You need this feature in case you feel you are short on negotiation skills or simply do not have the time to go through all your creditors. Note that for-profit and non profit debt consolidation programs will have slightly different terms and ways of negotiating.

Going to a debt consolidator seems to be the fastest and easiest way to manage your loans and to keep those pesky call center agents from calling you every hour. However, you should first ask if you are able to handle this yourself. All consolidation programs, including non profit debt consolidation programs, will charge a fee. You need to decide if your financial situation will take advantage of all the services they offer.

For more information about credit counseling and debt consolidation please visit: non profit debt consolidation programs

written by Credit Repair Guru \\ tags: credit counseling and debt consolidation, Debt Consolidation, Debt Consolidation Programs, non-profit debt consolidation programs

Although you can easily find a non profit debt counseling programs these days, beware; some non profit debt consolidation programs are good and some are just plain bad. The good ones are a little harder to find than the bad ones, so you’ve really got to do your research.

The truth is people with bad spending habits tend to group together while people with good spending habits group together. You probably wonít need a non profit debt consolidation program if youíve been good with your money. Use the tips below to find a good non profit debt consolidation program if you find you really need one.

Don’t Get Tricked by Bad Debt Consolidation Programs

There are a lot of good companies out there that specialize in non profit credit card debt consolidation programs and debt relief programs for a long time. Their method is to look at your total debt, determine with you what debts you want eliminated, and then write you a check to pay off all that debt. Then, you are required to pay this company back.

Programs like these can lower your credit score, even if it seems like a really good idea. Unless you already have a low credit score, you may want to pursue other options. There are better options out there. Seriously question the advantages of a company paying off your credit cards at 20% interest with a loan at 25% interest. Your payment will be lower each month, but youíll be paying off the amount for 10 or 15 years. That adds up to a lot more money in the long run. If you can avoid a non profit debt consolidation program like this, by all means do so.

There Are Good Companies Out There

The best thing you can do is look locally for your non profit debt consolidation program. Local groups will be more likely to work with you, especially if your credit is good. After all, you are their customer, and they want to help you find ways to deposit more of your money with them. In this situation, both sides get something out of the relationship, so this is a good place to start. When it comes to a non profit debt consolidation program, your bank or credit union will have your entire fiscal health in mind, instead of just how much in fees they can extract from you.

If you need a simple and easy, step-by-step kit to get you out of debt once and for all, be sure to reference Suze Orman credit scores. Suze has put together a world class software product that anyone can follow and climb their way out of debt easily.

written by Credit Repair Guru \\ tags: Bad Debt, Bad Decision, Consolidation Debt, Consolidation Services, Credit Card Debt, Credit Debt, Credit Rating, Debt Consolidation Program, Debt Consolidation Programs, Debt Relief Tactics, Debt Services, Debts, Finance Companies, Interest Loan, Money