Eliminate Credit Card Debt - Settle the Debt Yourself
Posted at 4:27 PM
How to Settle Credit Card Debt Yourself - Dan Morton
Is it possible to settle credit card debt yourself, without using a credit counselor or a debt consolidation company?
Actually, it's very possible to settle credit card debt yourself. You really don't need an expensive credit counselor, as they don't actually settle debt. And, regardless of what you think, they usually charge an arm and a leg for their services. Services that you can do for yourself, and do a much better job.
The "credit counselors" don't settle your debt - they sometimes can get your interest rates reduced (something you can do with one phone call). But, they can't usually get your balances reduced. The legitimate counselors have a debt management plan where you write one big check to the credit counseling company, then they pay your individual creditors. At least the reputable ones do.
There are many "credit counselors" who will take your money up front, with a promise to pay your creditors. They also take a hefty "commission" for themselves. But all too often, they don't follow through on your deal, and six months later you find out that NO bills have been paid, and you're a candidate for bankruptcy!
That's why I encourage people to settle their own debts and avoid being taken for a very dangerous ride by unscrupulous debt counselors, or consolidation companies.
Here are some easy tips to help you start settling your own credit card debt.
Skills You'll Need
Communicate. You need to have decent verbal skills to communicate with your creditors. This shouldn't be a problem for most folks - just be sure to express yourself clearly, without anger.
Negotiate. You'll need a clear goal in mind before you make that first call. Then. realize that true negotiating involves some give-and-take. You may not get what you want on the first call. Maybe not on the second, either. You will have to compromise - just be firm but pleasant.
Document. Write down everything - date, time, person(s) spoken to, subject and any deals made. Do this for each conversation. Keep all notes in a separate notebook, for organization.
Follow Up. Always follow up. Complete any phone calls, perform any tasks, and if an agreement is reached, do your part. That's follow up.
While most do-it-yourselfers settle their debt for an average of about 75%, those who have the skills listed above (and use them) can get their settlement for as low as 45% - 60%. Of course, it's possible to not get any reduction. That's how important using these skills really are. Some exceptional debt negotiators have gotten away with a settlement as low as 10% ! Industry professionals (attorneys and professional arbitrators), who bring millions of dollars to the table "only" get about 50%.
The fees these professionals charge is usually around 15% of your total unsecured debt - meaning that, on average, your debts are settled for a cost of about 65% (50% settlement + 15% fee).
If you're using the (4) skills shown above, it's possible for you to walk away from the negotiating table paying as little as 45% of your debt. And, that's a great deal for you!
Your Accounts Must Be Seriously Past Due
Unless your accounts are at least 180 days past due, chances are your creditors won't make any deals with you. If you're not that far past due now, do you just wait for the 180 day mark, then get serious about your debts? NO - before you are this far past due, it is your moral (and legal) obligation to try and pay your debts as best you can.
You can always ask your creditors for a lower rate before the 180 day mark - with the promise to make good on the debt. If it turns out to be totally impossible to pay the entire debt, then save the settlement option for last.
Always Use Certified Mail
When negotiating your debt, it is extremely important that you follow the agreement to a "T." That includes any lump sum payments sent should be sent by certified mail, with a return receipt. This will only cost you a couple of dollars, but the peace of mind you get when you know for sure that your payment has been received is huge.
If your creditors "misplace" or "lose" your check or other paperwork, then the burden of proof falls entirely on you - if you can't prove that you followed through on your deal, then you may be deemed in fault and all deals canceled. You know how difficult it is when working with a large company - that's why it's so important to be sure you have all of your bases covered.
When sending in a check, be sure to include a copy of the agreement in your certified mail.
Can you really settle your own debt?
Definitely, you can. You will have to learn some new skills, and be prepared for lots of ups and downs along the way. The path may not be smooth, but you've got lots of access to help - your local library, for instance.
The key to settle credit card debt yourself is to take action - now. Your debt will not go away by itself. In fact, no matter how dire things seem now, they will get much worse if you procrastinate. So, don't put this off - get organized and take action to help yourself, today. When it's all said and done, you'll look back and have few regrets. The only real regret you'll have is if you do nothing!
Are you trying - without much success - to become debt free? Why does it always feel like you're just treading water in a pool of debt? Feel helpless no more! Drop by DebtReliefDr.com to get help with your debt. I've also got a free mini-book waiting for you that can help you get started on your own path to a debt-free life.
Is it possible to settle credit card debt yourself, without using a credit counselor or a debt consolidation company?
Actually, it's very possible to settle credit card debt yourself. You really don't need an expensive credit counselor, as they don't actually settle debt. And, regardless of what you think, they usually charge an arm and a leg for their services. Services that you can do for yourself, and do a much better job.
The "credit counselors" don't settle your debt - they sometimes can get your interest rates reduced (something you can do with one phone call). But, they can't usually get your balances reduced. The legitimate counselors have a debt management plan where you write one big check to the credit counseling company, then they pay your individual creditors. At least the reputable ones do.
There are many "credit counselors" who will take your money up front, with a promise to pay your creditors. They also take a hefty "commission" for themselves. But all too often, they don't follow through on your deal, and six months later you find out that NO bills have been paid, and you're a candidate for bankruptcy!
That's why I encourage people to settle their own debts and avoid being taken for a very dangerous ride by unscrupulous debt counselors, or consolidation companies.
Here are some easy tips to help you start settling your own credit card debt.
Skills You'll Need
Communicate. You need to have decent verbal skills to communicate with your creditors. This shouldn't be a problem for most folks - just be sure to express yourself clearly, without anger.
Negotiate. You'll need a clear goal in mind before you make that first call. Then. realize that true negotiating involves some give-and-take. You may not get what you want on the first call. Maybe not on the second, either. You will have to compromise - just be firm but pleasant.
Document. Write down everything - date, time, person(s) spoken to, subject and any deals made. Do this for each conversation. Keep all notes in a separate notebook, for organization.
Follow Up. Always follow up. Complete any phone calls, perform any tasks, and if an agreement is reached, do your part. That's follow up.
While most do-it-yourselfers settle their debt for an average of about 75%, those who have the skills listed above (and use them) can get their settlement for as low as 45% - 60%. Of course, it's possible to not get any reduction. That's how important using these skills really are. Some exceptional debt negotiators have gotten away with a settlement as low as 10% ! Industry professionals (attorneys and professional arbitrators), who bring millions of dollars to the table "only" get about 50%.
The fees these professionals charge is usually around 15% of your total unsecured debt - meaning that, on average, your debts are settled for a cost of about 65% (50% settlement + 15% fee).
If you're using the (4) skills shown above, it's possible for you to walk away from the negotiating table paying as little as 45% of your debt. And, that's a great deal for you!
Your Accounts Must Be Seriously Past Due
Unless your accounts are at least 180 days past due, chances are your creditors won't make any deals with you. If you're not that far past due now, do you just wait for the 180 day mark, then get serious about your debts? NO - before you are this far past due, it is your moral (and legal) obligation to try and pay your debts as best you can.
You can always ask your creditors for a lower rate before the 180 day mark - with the promise to make good on the debt. If it turns out to be totally impossible to pay the entire debt, then save the settlement option for last.
Always Use Certified Mail
When negotiating your debt, it is extremely important that you follow the agreement to a "T." That includes any lump sum payments sent should be sent by certified mail, with a return receipt. This will only cost you a couple of dollars, but the peace of mind you get when you know for sure that your payment has been received is huge.
If your creditors "misplace" or "lose" your check or other paperwork, then the burden of proof falls entirely on you - if you can't prove that you followed through on your deal, then you may be deemed in fault and all deals canceled. You know how difficult it is when working with a large company - that's why it's so important to be sure you have all of your bases covered.
When sending in a check, be sure to include a copy of the agreement in your certified mail.
Can you really settle your own debt?
Definitely, you can. You will have to learn some new skills, and be prepared for lots of ups and downs along the way. The path may not be smooth, but you've got lots of access to help - your local library, for instance.
The key to settle credit card debt yourself is to take action - now. Your debt will not go away by itself. In fact, no matter how dire things seem now, they will get much worse if you procrastinate. So, don't put this off - get organized and take action to help yourself, today. When it's all said and done, you'll look back and have few regrets. The only real regret you'll have is if you do nothing!
Are you trying - without much success - to become debt free? Why does it always feel like you're just treading water in a pool of debt? Feel helpless no more! Drop by DebtReliefDr.com to get help with your debt. I've also got a free mini-book waiting for you that can help you get started on your own path to a debt-free life.
Labels: credit card debt, debt, debt free, debt relief, settle credit card debt
Debt Myths That Stop You From Getting Out of Debt
Posted at 6:09 PM
5 Myths - You Won't Get Out of Debt If You Believe These
By Raymond Aaron
America's effort to get out of debt is crushing the economy. The recent collapses in financial institutions are a primary example of the American attitude towards debt that has America bailing out mega corporations left and right. The chances are that these myths seem obviously false to you, but you have some of these mythical behaviors ingrained in your subconscious.
Many things will help put a band-aid on your debt situation. However, you will never recover from the endless debt syndrome if you don't increase you level of awareness about the behavior that got you in debt in the first place.
Myth #1- Higher income will get you out of debt.
Nothing could be further from the truth. In fact, statistics say that the more money people make, the higher the amount of debt.
Myth #2 - Small debt is no biggie.
People who think that small debts don't make a difference usually have large debts. The secret to doubling your income is to stay out of debt.
Myth #3 - If the interest rate is low, then it's worth it.
Even if the loan has 0% interest, you're still increasing your debt. This sales gimmick often fools people. They don't look at the debt; they look at the interest rate. If you can't afford it, you still can't afford it with the interest rate lowered.
Myth #4 - The debt doesn't matter because inflation will bail me out.
Let's say you buy a house that's much bigger than you need. You know that in a few years, you'll make all the money back because the bigger house will be worth more. In the meantime, you struggle just to make payment. Remember these four words: First survive, second thrive.
Myth #5 - You are entitled to this.
Many people will totally disregard the debt or expense because they feel a sense of entitlement. It's okay to get in debt because you deserve it, right?
Now, which one of these myths do you believe? Chances are that you'll say none in self-defense. Nevertheless, your behavior might indicate that you act as if you believe some of these myths.
You can try a variety of methods to get out of debt, but first you need to change your attitude and realize that no debt is the only way to go. If you are in debt, you can try a few things to get out of debt.
If you decide to go with a credit repair company, check to see if they're listed with the NFCC (National Federation of Credit Counselors). Never go with a credit repair company that charges hundreds of dollars upfront. It should only cost about $50 to get a consultation.
You can get out of debt on your own. Call your creditors and tell them the situation as shortly as possible because they've already heard everything. Tell them you can no longer afford to pay and would like it modified. You may get your rate lowered.
If they aren't meeting your expectations, calmly thank them by name and ask for the supervisor.
Get on the right track to get out of debt and never go back in debt again.
Raymond Aaron,
New York Times Top Ten Bestselling Author, "Double Your Income Doing What You Love"
Claim your Gift From Raymond to double your income. It's free.
By Raymond Aaron
America's effort to get out of debt is crushing the economy. The recent collapses in financial institutions are a primary example of the American attitude towards debt that has America bailing out mega corporations left and right. The chances are that these myths seem obviously false to you, but you have some of these mythical behaviors ingrained in your subconscious.
Many things will help put a band-aid on your debt situation. However, you will never recover from the endless debt syndrome if you don't increase you level of awareness about the behavior that got you in debt in the first place.
Myth #1- Higher income will get you out of debt.
Nothing could be further from the truth. In fact, statistics say that the more money people make, the higher the amount of debt.
Myth #2 - Small debt is no biggie.
People who think that small debts don't make a difference usually have large debts. The secret to doubling your income is to stay out of debt.
Myth #3 - If the interest rate is low, then it's worth it.
Even if the loan has 0% interest, you're still increasing your debt. This sales gimmick often fools people. They don't look at the debt; they look at the interest rate. If you can't afford it, you still can't afford it with the interest rate lowered.
Myth #4 - The debt doesn't matter because inflation will bail me out.
Let's say you buy a house that's much bigger than you need. You know that in a few years, you'll make all the money back because the bigger house will be worth more. In the meantime, you struggle just to make payment. Remember these four words: First survive, second thrive.
Myth #5 - You are entitled to this.
Many people will totally disregard the debt or expense because they feel a sense of entitlement. It's okay to get in debt because you deserve it, right?
Now, which one of these myths do you believe? Chances are that you'll say none in self-defense. Nevertheless, your behavior might indicate that you act as if you believe some of these myths.
You can try a variety of methods to get out of debt, but first you need to change your attitude and realize that no debt is the only way to go. If you are in debt, you can try a few things to get out of debt.
If you decide to go with a credit repair company, check to see if they're listed with the NFCC (National Federation of Credit Counselors). Never go with a credit repair company that charges hundreds of dollars upfront. It should only cost about $50 to get a consultation.
You can get out of debt on your own. Call your creditors and tell them the situation as shortly as possible because they've already heard everything. Tell them you can no longer afford to pay and would like it modified. You may get your rate lowered.
If they aren't meeting your expectations, calmly thank them by name and ask for the supervisor.
Get on the right track to get out of debt and never go back in debt again.
Raymond Aaron,
New York Times Top Ten Bestselling Author, "Double Your Income Doing What You Love"
Claim your Gift From Raymond to double your income. It's free.
Labels: credit, debt, debt myths, double your income, interest
Tax Preparation - Costly Money Mistakes
Posted at 11:25 AM
Costly Tax Preparation Mistakes - By Phillip Jr Kimpo
April is a dreaded month for many people, all because it's tax month. Many people cram their tax return preparation, and this can result in many costly errors. In this article we take a look at some of the tax mistakes that millions of people commit. Avoid them, and you ensure yourself of a more peaceful tax month. You also get to save cash!
Typographical errors -- Misspellings (such as in social security numbers) will cause delays in processing your tax return. It's more deadly when you transpose digits when writing cash amounts (e.g. writing $42,903 instead of $42,093). You can lose cash or earn the ire of the IRS with this kind of mistake.
Taking the standard deduction -- It's almost always better to itemize your deductions, as you're going to save more money this way. According to the Government Accountability Office, there are more than two million taxpayers who overpay their taxes by not itemizing.
Overlooking deductions -- When you itemize your deductions, make sure you exhaust all possible deductions. The extra effort will be worth it. Important deductions sometimes overlooked by taxpayers include charitable contributions, medical expenses, traveling expenses, gambling losses, clean-fuel deduction, education expenses, and job expenses not reimbursed by the employer. You can even deduct your tax preparation expenses!
Math errors -- According to the IRS, basic arithmetic errors rank as the number one mistake of taxpayers. Sometimes, these errors just involve simple addition and subtraction! A great way to avoid math errors is by using tax preparation software.
Forgetting to attach documents -- Many people forget to attach essential wage statements to their tax returns. Don't forget the W-2 and 1099 forms from all employers.
Missing the deadline -- Very easy to avoid, right? But many taxpayers still miss the deadline, sometimes because they don't have the money to pay for the taxes. If you can't make the deadline, file an extension instead. Don't get charged a late penalty!
Forgetting about taxes when it's not April -- You should keep your taxes in mind every day of the year. Sure, it's a hassle, but dutifully recording those little tax-deductible things that happen day in and day out will save you a lot of cash in the long run. You'll need to keep documents, receipts, and bills from the entire year if you want to get a lot out of your itemized deductions.
A word of caution: Once you've taken care to avoid these mistakes, don't ruin an otherwise perfect tax month by falling for the multitudes of tax scams out there, such as those which arrive in fraudulent emails.
Also, if you've committed mistakes on your tax return (e.g. wrong filing status, typo error, wrong number of dependents), always remember that you can correct them even after you've filed the return. Just file the Form 1040X, which allows you to revise your tax return.
Last but not the least, you can minimize tax mistakes by hiring a tax professional to prepare your tax returns. You might also want to consult a tax advisor before tax month.
The author recommends an article on Costly Tax Mistakes for a more in-depth discussion and the best practices after tax season. He also recommends Tax Information for general info about taxes.
Debt Crunch
April is a dreaded month for many people, all because it's tax month. Many people cram their tax return preparation, and this can result in many costly errors. In this article we take a look at some of the tax mistakes that millions of people commit. Avoid them, and you ensure yourself of a more peaceful tax month. You also get to save cash!
Typographical errors -- Misspellings (such as in social security numbers) will cause delays in processing your tax return. It's more deadly when you transpose digits when writing cash amounts (e.g. writing $42,903 instead of $42,093). You can lose cash or earn the ire of the IRS with this kind of mistake.
Taking the standard deduction -- It's almost always better to itemize your deductions, as you're going to save more money this way. According to the Government Accountability Office, there are more than two million taxpayers who overpay their taxes by not itemizing.
Overlooking deductions -- When you itemize your deductions, make sure you exhaust all possible deductions. The extra effort will be worth it. Important deductions sometimes overlooked by taxpayers include charitable contributions, medical expenses, traveling expenses, gambling losses, clean-fuel deduction, education expenses, and job expenses not reimbursed by the employer. You can even deduct your tax preparation expenses!
Math errors -- According to the IRS, basic arithmetic errors rank as the number one mistake of taxpayers. Sometimes, these errors just involve simple addition and subtraction! A great way to avoid math errors is by using tax preparation software.
Forgetting to attach documents -- Many people forget to attach essential wage statements to their tax returns. Don't forget the W-2 and 1099 forms from all employers.
Missing the deadline -- Very easy to avoid, right? But many taxpayers still miss the deadline, sometimes because they don't have the money to pay for the taxes. If you can't make the deadline, file an extension instead. Don't get charged a late penalty!
Forgetting about taxes when it's not April -- You should keep your taxes in mind every day of the year. Sure, it's a hassle, but dutifully recording those little tax-deductible things that happen day in and day out will save you a lot of cash in the long run. You'll need to keep documents, receipts, and bills from the entire year if you want to get a lot out of your itemized deductions.
A word of caution: Once you've taken care to avoid these mistakes, don't ruin an otherwise perfect tax month by falling for the multitudes of tax scams out there, such as those which arrive in fraudulent emails.
Also, if you've committed mistakes on your tax return (e.g. wrong filing status, typo error, wrong number of dependents), always remember that you can correct them even after you've filed the return. Just file the Form 1040X, which allows you to revise your tax return.
Last but not the least, you can minimize tax mistakes by hiring a tax professional to prepare your tax returns. You might also want to consult a tax advisor before tax month.
The author recommends an article on Costly Tax Mistakes for a more in-depth discussion and the best practices after tax season. He also recommends Tax Information for general info about taxes.
Debt Crunch
Labels: debt, money, revise tax return, taxes
