My Finance Tips And Guides

3 Things You Need to Know to Find the Best Student Credit Card

2011-08-05T19:58:00.000-07:00

Building a solid credit history is an integral part of becoming an adult, but obtaining a student credit card got much harder for people under age 21 with passage of the Credit Card Responsibility and Disclosure (CARD) Act of 2009. The CARD Act has many provisions directed at curbing excessive fees and rate hikes. It also contains a provision designed to curb credit card use--and abuse--by young consumers.

Qualify for the best student credit card

Let CardRatings.com help you find the right rewards credit card for you.

Three key student credit-card provisions of CARD Act:

People under age 21 must obtain the signature of a parent, guardian, or "qualified individual" willing to assume responsibility for the debt in case of default.
Card issuers must gather information that demonstrates the student or youth has ability to pay on his or her credit card debt--no job, no money, no credit card.
Applicants must complete a certified financial literacy or financial education course, including awareness of the trouble credit cards have caused past generations of young people.

In addition, credit card companies are limited in their ability to solicit offers of credit to people under the age of 21. This applies to both pre-approved credit card offers that appear in mailboxes and to credit card solicitors on college campuses.

"With this new law, consumers will have the strong and reliable protections they deserve,'' said President Barack Obama in a statement. "We will continue to press for (credit card) reform that is built on transparency, accountability, and mutual responsibility."

Best Credit Cards for College Students

Despite CARD Act requirements, some banks advertise student credit cards with no cosigner or minimum income requirements, according to a Washington Post report. At the University of Houston, 32 percent of incoming freshmen say they saw credit card companies marketing on campus, according to a poll conducted by a University of Houston Law Center professor.

What is your best student credit card option? The one you can afford to charge on and pay off. Many student credit cards have high APRs. Keep credit spending within reason to keep payments low, and avoid costly purchases. A good rule of thumb: If you can't pay in cash for an item, you probably should not buy it.

Choosing the best credit cards

2011-08-05T19:47:00.001-07:00

CardRatings.com has been helping consumers find the best credit cards since 1998. Our editors personally rate and review credit card offers to help you find the best deals available. And if you ever have trouble finding the best credit card, just ask our collection of industry experts.

Our editors review credit cards from all major issuers as well as from many regional banks and credit unions. Here are just a few of the banks currently listed in our extensive database:

American Express: For years, American Express has been known for their wide selection of charge cards, premium card benefits and impeccable customer service.

Capital One: Capital One offers a variety of credit cards. Although well known for their “No Hassle” rewards cards, they also offer low introductory rate, student and business credit cards. Most Capital One credit cards do not have a foreign transaction fee.

Chase: Chase Bank issues very competitive rewards credit cards, including the Chase Freedom, Sapphire and Ink Business cards. They also issue a host of co-branded credit cards and several low interest, 0% APR and balance transfer cards.

Citi:Citi credit cards are distributed fairly equally among the various credit card types. However, one of their most popular credit cards—the ® Platinum Select® MasterCard® maintains one of the best balance transfer offers on the market.

Discover:Discover Card pioneered cash back credit cards in 1986, and though other issuers have followed suit, Discover has remained competitive and still offers some of the best credit card deals around.

HSBC: HSBC offers a number of credit cards for bad or limited credit. They offer secured and unsecured cards depending on your credit score. HSBC also issues Orchard Bank credit cards.

MasterCard: MasterCard is a widely accepted credit card payment network associated with many bank credit cards and debit cards.

Visa: Visa is a large payment network. Visa is associated with credit cards and debit cards from most issuers.

Is it safe to apply for a credit card online?
We're often asked if it's safe to complete a credit card application online. These days, it's probably one of the safest methods available. At CardRatings.com, when you find the best credit card for you, we direct you straight to the card issuer's SSL-protected website. Banks and other issuers use the latest encryption technology to protect all online credit card applications. How can you be sure your info is safe? You'll see "https" in the address bar of your browser, instead of the usual "http". In this case, the "s" stands for secure.

Small Business Finance Making | your visit a profitable one

2011-08-05T08:33:00.000-07:00

Cut through the confusing world of small business finance and put yourself on an equal footing with the finance experts.

Use the know how you find on these pages to plan more effectively, to source funding, to negotiate yourself a better deal in all areas of your small business financing, to change the things you measure in your business to improve operations and hence profits, and to make your marketing budget work harder.

Our credentials?

I'm Neil Best, an accountant with over 15 years experience in business finance. I've worked in all areas of industry, from manufacturing to service, banking to technology, and have dealt with rapid growth start ups and mature companies struggling to make a profit. I've worked with companies with just a handful of employees, and those with thousands.

Its my personal mission to give you the benefit of this valuable experience with the simple aim of helping you succeed.

Great Information on Small Business Finance Tips

To be successful in business you must have sufficient cash flow. Invoice factoring can provide you with working capital when conventional funding is not an option...

Everyone wants to know what their business is worth at some point. How to find the right professional to value your business explains the different kinds of business professional in the marketplace, and their strengths and weaknesses.

Using accounts receivable factoring is an effective way for businesses to raise working capital for ongoing operations or for planned expansion...

10 ways to work through a business slowdown...

If you're thinking of starting your own business, then why not hold that thought and consider buying one! Our buying a business article, outlines the advantages

Easy to follow guidelines on how to audit proof your business plus effective ways to reduce your business costs

With Quicken and Quick books being some of the most widely sold financial software ever, we compare Quicken vs Quickbooks to help you decide which is best for you.

We've added a summary of the Free Business Plans on our site for your convenience

Different Aspects of Spectrum Debt Management Services

2011-08-03T07:45:00.000-07:00

Debt management is a process through which a third party negotiates with the creditors on behalf of an individual in debt. Debt management firms work towards a debt management plan which is sprinkled with lower interest rates and a better set of terms and conditions.

Firms which provide debt management services have their presence everywhere and even over the internet. One such major player is the agency- Spectrum Debt. It is broadly classified as a debt settlement company assisting clients towards a better financial control.

The main financial services offered by Spectrum Debt are as follows:

Debt Management
Debt settlement
Credit Repair
Bankruptcy Aspects
Other related financial services

To understand the concept of Spectrum debt management, it is better to start by understanding the different types of unsecured debt which can be negotiable.

Common negotiable unsecured debt includes credit card debt, medical bills and costs in collections while all other unsecured personal loans and credit lines. In fact there are other forms of unsecured debts (negotiable) like repossessed auto debts and debts in collection.

To benefit from the Spectrum debt management process, you are required to fill out a small form, via their website. The best part is that this form is a no obligation form, so getting started puts you higher up, towards a good debt settlement savings program. In terms of information, balances and interest rates along with required minimum monthly payment and names/numbers are required to start with.

With Spectrum debt management, you get to choose any payment date from 1^st of the month to 28^th, as per your convenience for your due payment. You can keep a debit/credit card for emergency purposes like travel etc. and enroll other debt related cards/loans in the debt management schemes.

The best part about debt management programs from Spectrum is that they help you to re-age (current status) your account so late fees, over limit charges and the irritating collection calls can be kicked out. In fact, this starts as soon as the first payment is received by the creditors.

Unlike other debt management programs, a stint at Spectrum debt allows you to terminate the debt management plan any time. This way, the programs are customized as per the clients, and not the other way round.

After enrolling, you get many other types of resourceful help in financial management, like the popular – monthly budget formulation guidance. The best part about debt management is that you can consolidate all the unsecured debts related payment dates to a single day which is not only easy but will help you towards effective monthly budgeting.

All in all with these plans, you not only get the usual goodies like lower interest rates and better terms and conditions, but some other goodies like waivers in late fees, over limit charges and getting away with creditors’ letters and calls. Single low monthly payment is a bonus.

Lastly, with Spectrum debt, you can be doubly assured about confidentiality in every aspect

Tips for beating debt part 2

2011-08-01T21:39:00.000-07:00

How you tackle your debt obviously depends on the size of the debt and its proportion to your monthly income. For some, simply making a few sacrifices, such as cutting back on the morning coffee run and using the money to pay off a credit card, will suffice, but in more serious cases an Individual Voluntary Agreement (IVA) could be the answer.

This is Money offers its top tips for getting out of debt.

Work it out

Sitting down and working out how much you owe can be the hardest part of beating debt. For many it is easier to leave bills unopened and burying your head in the sand, but ignoring the problem is the quickest route to County Court Judgements and creditors making claims on your property. The Consumer Credit Counselling Service warns that if debt repayments take more than a fifth of your monthly budget then you are in the credit danger zone.

Budget

Actually writing on paper what you earn against what you spend is the easiest way of sorting out what you can and can't afford, and the only way of coming up with a reasonable estimate for your weekly or monthly spending.

Add up all your income – salary, benefits and whatever else might reach your account each month – and subtract from it your rent or mortgage payments, bills and other necessities, and you'll be left with the amount you have for spending or saving each month. Use this process to also check whether you are on the correct tax code and are owed any Government benefits or tax credits that you are not currently claiming.

It is important to be honest with how much you spend each month, but also realistic. Don't pretend that you will quit smoking if in reality it is unlikely. This is Money's household budget calculator will help you form a realistic picture of your disposable income.

See where you can trim your budget, such as cutting down on the nights you go out, and be strict.

Don't keep it to yourself

Over a third of people with debt problems hide it from their partners. One of the main steps to sorting out your debt problems is admitting they exist to anyone that may be affected and following this up with action.

This is Money's message boards are a good source of advice and support on debt matters.

Tackle priority debts

List your debts, then decide which are the most urgent. Those that carry the harshest penalties for default must be dealt with first. Mortgage arrears, for example, will eventually result in losing a home. Council tax arrears carry the risk of a prison sentence.

Speak to creditors

Although it can appear daunting, speaking to a creditor about repayment difficulties is by far the better option than avoiding the issue. Lenders are experienced in helping customers that have run into financial difficulties and will attempt to help if you are struggling with repayments.

The same applies to utility companies. There are several grants and subsidies available to customers that struggle to pay energy and water bills so speak to your supplier to see if they can help. A list of what help energy companies are offering customers can be found here.

Avoid just paying the minimum repayments on credit cards

Although it is better to repay the minimum than nothing at all, in reality you are treading water and playing into the card issuer's hands. Card companies have been forced to put warnings against paying just the minimum balance on their statements and with good reason. It would take 15 years to pay off the £3,000 balance on a 14.9% APR card if only the minimum payment of £90 was made. You would nearly halve that time if you paid an additional £60 a month.

Tips for beating debt part 1

2011-08-01T21:37:00.000-07:00

Get a cheaper credit card

Despite fees, there are still competitive 12-month interest free balance transfer deals arounsd that are preferable to paying the lender's standard card rate. Visit our best buy table to find the latest deals.

For those that don't want the hassle of switching, a life of balance card could be the answer. These cards charge interest on balances transferred from day one, but typically at a much lower rate than card purchases and usually at a better rate of interest than the customer could secure by using a personal loan.

The latest offers can be found here

Switch loans and mortgages

Your mortgage is probably your biggest expense and if you are paying the lender's standard variable rate then you are throwing money away. Best buy fixed rates currently start from 4.50%, while variable deals start from 4.85% - well below the average SVR of 6.5%. For example, someone with a £100,000 repayment mortgage could save £450 a year by switching their mortgage to Nationwide's 4.59% two-year fixed.

The same applies with personal loans. New rules mean it is easier to switch personal loans and competition in the market is rife. Take a look at our loans service to find the best rate.

Switch utility suppliers

You can save hundreds of pounds a year by moving your gas, electricity, home phone, mobile and internet provider. The process to switch these services should be simple and competition in the sectors means that there are good deals to be found. Visit This is Money's bills section to see how much you could save by switching suppliers.

Cut up store cards

Quite simply, these cards rely on consumer apathy and ignorance and should be binned immediately. They typically entice customers with the offer of a 10% discount on goods, but this is easily clawed back by the excessive interest charged, usually around 30%.

Don't borrow more to pay off debts

Although it is advisable to switch credit cards and loans to find cheaper deals, borrowing more money to pay off debts could only lead to more trouble.

Contact the right people

Daytime TV is full of adverts from debt management companies telling you that they can help transform your debt into manageable chunks. What they don't tell you about is the high level of fees and interest they charge for the privilege.

Reputable organisations, such as PayPlan or the Citizens Advice Bureau, or a debt charity such as National Debtline will not only help you for free, but can also help reduce your level of debt. They negotiate with lenders on your behalf to work out a manageable budget based on how much you can realistically afford to repay. Many lenders are open to negotiation as they would prefer to get some of the money they are owed back than for the debtor to declare themselves bankrupt and lose the lot.

IVAs and bankruptcy

An IVA is a legal contract between an individual and their creditors to repay the debts. Although IVAs don't cover mortgages (apart from arrears), your house cannot be repossessed while you are on an IVA. These are suitable only for people who are employed full-time and can be used if you owe more than £10,000 to three or more creditors.

Three quarters of your creditors have to agree to the IVA, which typically repays 35p to 40p in the pound off your unsecured debts while the interest is frozen. Secured debts, such as a mortgage, have to be repaid in full.

In more serious cases bankruptcy is the only option. It costs just £450 to declare yourself bankrupt, which includes the bankruptcy order and court fees. A trustee, usually an accountant, is put in charge of your estate. Anything you own, including anything you inherit, plus a proportion of your income will be taken and passed on to creditors. However, bankruptcy should be regarded as a last resort. By declaring bankruptcy you lose control over the majority of your assets and also limit any future access to the credit market.

Be disciplined

Devise a realistic budget and stick to it. Work out your weekly spending habits and cut out anything that is an unnecessary. If you do switch cards, don't start spending on the old one, cut up expensive store cards and constantly keep an eye on good deals in the market where you can save money.

Options for Credit Card Debt Relief

2011-08-01T04:59:00.000-07:00

So you have found yourself stuck in debt and are somewhat dumbfounded as to what you can do to get yourself out of this hole and back on your feet financially. Well you have found the right place; I will give you a breakdown on the options that are available to debtors to get themselves out of debt. Please keep in mind that not every option can work for everybody, your unique financial situation will really determine which credit card debt relief option will work best for you.

Debt Consolidation Loan: For many folks out there in debt this is the first thing they consider. Basically what is a debt consolidation loan, quite simply it is when you obtain a loan to pay off your credit cards and then have only one monthly payment on the loan. The target for this is to get a lower interest rate then you had with your cards, so you can save some money and get out of debt quicker.

Now usually this type of loan will be secured, meaning that you will have to put up something of collateral in order to get the loan. In most cases people will use the equity in their homes. For many this will seem like a simple and quick fix, however you need to be made aware of the risk that comes with this option of debt relief. For starters you must be aware that if you are to start defaulting on this loan you run the risk of getting your home foreclosed on.

The big mistake that happens all to often is that people will keep their credit cards open and start charging on them again, which then brings them back to the point of being in credit card debt however this time around you have a loan that must take precedent over the card payments, this often leads to foreclosure or bankruptcy.

Pros: A lower interest rate on the loan, and one monthly payment, which can often times, be a lot easier to manage then multiple payments on the cards each month.

Cons: Not easy to get loans in this recession for the majority of people even with decent credit, and you can risk losing your home if you in the future cannot manage the payments.

Consumer Credit Counseling: This is another very popular method of credit card debt relief that is also sometimes referred to as debt consolidation. The benefits are pretty similar to a debt consolidation loan; however you are not actually going to be getting a loan. So what will this type of a program do for you? Usually you will see a reduction in your interest rates on pretty much all of your accounts so that is one of the main benefits. Next you will now only be making one monthly payment to the credit counseling agency in which they will distribute to your creditors for you making it easier to manage your monthly budget. You must also realize you will be on a fixed payment not a minimum payment so you will not be getting out of debt within 5-7 years as opposed to 30 or more.

A couple of things you must know first about credit counseling. For starters when on this type of a program you will no longer be able to charge on your cards. Then you must be made aware that if you are to miss as much as one payment the creditors will kick you off of the program and bump your interest rates back up and not allow you to join another program for up to a year. Also as far as saving money on a monthly basis it will not be very much, often times the payment for your credit counseling program will be the same you were putting out for minimum payments each month or higher. So for those who cannot afford the minimums and are really struggling this would not be the option for them, because the failure rate of these types of programs is around 75%

Pros: Lower interest and one fixed monthly payment, get out of debt within 5-7 years.

Cons: High failure rate, not much reduction in monthly outlay.

Debt Settlement: This brings us to what has become a very popular method to get out of debt that of credit card debt settlement. Debt settlement has the greatest benefits but also some extra drawbacks as well.

Debt settlement is a process where your debt will be negotiated so that you will pay back much less than what you currently owe. The savings of money with this procedure are enormous. Another great benefit of this process is that you will become debt free within just a couple of years. Plus the amount you will put out each month on this type of program is usually significantly less than you were putting out for minimum payments giving debtors extra breathing room each month.

However like anything in life there are some drawbacks the first being you must go into default on your cards for the creditor to be willing to negotiate a settlement. So naturally your credit score will suffer from this happening. You will also receive collection calls as well. But for many people they simply have no choice in the matter it is either barely manage minimum payments for the next thirty years or file for bankruptcy.

Pros: Huge savings of money usually between 40-50% of current balance and huge savings of time, become debt free within two years or less. AVOID BANKRUPTCY!!

Cons: Negatively effects credit score and collection calls.

I hope after reading this you are a little more enlightened to how the various credit card debt relief options work and which one might better suit you. If you have any additional questions please feel free to comment and I will give you an answer to the best of my knowledge.

Will Debt Ruin Your Life?

2011-07-31T23:48:00.001-07:00

We have all heard countless horror stories about being stuck in credit card debt and the severe negative effects it can have on someone’s life. Debt is pretty much the evil twin brother of wealth; because people who are in debt are not wealthy and vice versa. Right now we are at a time financially that is very trying for us Americans. We are officially in a recession and can very easily end up in an all out depression. Needless to say people need more money to stay afloat and having credit card debt will keep you from having that money and like the title says can potentially ruin your life.

One of the biggest eye openers to this problem is watching the movie “Maxed Out” this documentary goes in depth just how bad of an effect debt can have on peoples lives. One of the most gut wrenching scenes in the documentary is when two parents were interviewed who both had children in college commit suicide because of credit card debt. People have lost so much because of what debt can do, one of the leading causes of divorce in this country is due to financial problems and one of people’s main financial problems is do to their debt situations.
The credit card companies themselves have devised a brilliant scheme to make the most amount of money off of people as possible. They do this through the minimum payment. Minimum payments will stretch out the time you are paying off your debts to over thirty years and you will lose at least four times the original balance to interest alone. The way they pull this off is when people start running large balances, then like a sucker punch the interest rate gets raised up putting people in a very compromising position. At this point most people could barely even afford the minimum payment let alone anymore and to make matters worse the vast majority of the payment is going directly to interest. So essentially you would be just as good off if you just flushed your money down the toiled bowl.

Many people have found that the best method of credit card debt relief is that of debt settlement. This is the fastest way to get out of the creditors money sucking web. Plus the savings off of a debt settlement are tremendous.

Which debtors are well suited for debt settlement?

2011-07-31T23:43:00.000-07:00

To start off I would appreciate for my readers to first understand which consumers are in need of debt settlement as a means to become debt free. One illustration of those in need are the consumers who pay only the monthly minimum payment. Another prime candidate for debt settlement is the person who has already fallen behind. The next individual who is ready for debt settlement is the person who owns a home with money coming in who is sincerely thinking about filing for bankruptcy.

At this point you must be thinking what is debt settlement? Debt settlement is a method of gathering enough money to arrange a one time payment that is negotiated down to a lower amount than the original balance owed. The first issue that pops into mind for most debtors at this point is, how in the world do you get your creditors to agree to a lower amount?. Well the answer is pretty simple, you need to fall behind on the debts owed. The reason being no credit card issuer in the world is willing to negotiate on a debt that is current. Which is logical why would the creditors negotiate for less if they think you can continue to pay their monthly minimum payments for the next thirty years, earning them large amounts on interest. So one must come to grips that in order to achieve a decent settlement you need to go behind on payments.

So what are the advantages of going through this process? The greatest advantage of settling your debts is that of saving money. Which in turn correlates with the next benefit, which is saving years of time. With the debt settlement process a debtor can expect to save around forty to fifty percent of what is owed, and become free of debts within 2-3 years.

When searching for a establishment to employ for debt settlement one should do their research before contacting the company. To ensure the establishment you will be using is reputable and can get the job worked out the right way. A good spot to start is too check up on the Better Business Bureau, most good standing companies will be registered with the BBB. Another extremely wise measure to take when seeking out a organization to do debt settlement is checking the Attorney General. Many states' Attorney General will list any company that is being investigated. As you can tell any company being investigated will not be a decent company to sign up with.

Please do yourself a favor! Avoid Bankruptcy

2011-07-31T23:34:00.001-07:00

Please do yourself a favor! Avoid Bankruptcy

It crosses many debtors minds when struggling in debt, at one time or another have contemplated the option of going through a bankruptcy proceeding. In this brief writing I am going to give you three very serious reasons why you should keep away from bankruptcy at all costs, if possible. Many people do not understand the deep negative blow a bankruptcy can have.
1. Filing for bankruptcy has an enormously negative effect on your credit rating and becomes a lifetime public record!

A bankruptcy proceeding is one of the worst derogatory remarks that you could have put on your credit report. Thus making any additional credit you try to get extremely hard, and if you do get credit it usually comes with a pretty elevated interest rate. Plus, it will remain on your credit history for between 7-10 years. Even when it gets removed from your credit history it stays a public record for the rest of your existence. So whenever you apply for new loans at any point in the future, if they ask whether you have ever gone through a bankruptcy proceeding by law you must answer yes.

2. Brand New Bankruptcy laws in 2005!

In 2005, Congress approved a law which forces anyone filing for a Chapter 7, which will wipe the table clear of all your debts much more difficult. Basically if you have an income producing job and assets than most assuredly you will go into a review to find out if you should do consumer credit counseling first for at the minimum 6 months. According to NFCC close to 80% of people who apply can't abide by the very regimented rules set from them to complete the program thus throwing them back into the bankruptcy proceeding. That's when Chapter 13 comes into the situation which is a form of personal bankruptcy in which the judge will decide how much you will pay back each collector you list based on your budget.

3. Court Controlled Income with Chapter 13!

Before the new law was approved in 2005 many people that would be able to claim Chapter 7, were now forced to go Chapter 13 in it's place. Chapter 13 requires that you review with the judge and make available all of your finances. You must show all sources of income and assets. The court will go over your expenses compared to your income and then figure out how much money you will have to dish out each month. The court decides this for you, leaving you with no say in this process. If you have liquid assets such as a paid off car they can force you to sell them, within State law, to pay down your debt. There are scheduled reviews each year and if your income increases you must tell this to the judge, this could bump up the amount you pay back. If you have two family cars you could have to sell one to help pay off your debts. They basically tell you what you can do with your income. If you have the higher costing cable you will be forced to cut back to basic cable, if you consume high priced steaks every day you will need to cut back to cheeseburgers. This can be a very hurtful and embarrassing process.

These are all extremely unattractive proceedings that debtors must be made aware of before dealing with a bankruptcy attorney. Many attorneys will not disclose these negative facts of bankruptcy. Bankruptcy is available for a reason and for some individuals they have no other debt relief system available to them and must file bankruptcy, however a lot individuals go into bankruptcy when it could have been avoided. A very attractive substitute option to bankruptcy is credit card debt settlement. With debt settlement in many cases you will save way more money than you could have with a Chapter 13, plus you will be out of debt much quicker, and not experience the multitude of negative consequences of a bankruptcy hearing.
Steve Bis is a credit card debt analyst with the US Consumer Advocate, which practices in debt relief.

Get Out of Debt and avoid being scammed!

2011-07-31T22:01:00.000-07:00

I have been getting quite frustrated lately with how much debt relief companies have been pretty much nothing short of scams. Simply promising people the world and not delivering. Seeing how long I have been in the business I figured I would write an article speaking about how to get out of debt without being scammed. This article goes in great depth of how to interview a debt analyst to ensure they have your best interest at heart and will do a job that benefits you in getting out of debt quickly and save you a lot of money. It is imperative that you know what to look out for when you are speaking to on of these representatives. There are certain red flags that can tell you right away not to deal with the company.

Who are the Best Debt Negotiation Companies?

2011-07-31T21:55:00.000-07:00

Debt negotiation, also called debt settlement has become very popular over the past 4 years. Since the change in the bankruptcy law in 2005 debt negotiation has become the best alternative to people who otherwise would need to go bankrupt. Therefore opening up a huge market for debt negotiation services. But how can one tell the best debt negotiation companies from the ones who are rather inept.

For one any good service will be listed in the BBB, and have a good track record. This almost goes without saying. Second a company should charge a portion of their fee based on their performance. And by performance I mean how low of a settlement they can get for you. The lower the settlement the more money you as the debtor will save. There are far too many companies out there that charge just only a flat percentage of your total debt amount and collect 100% of it upfront before any settlements have been made. This fee setup leaves no incentive for the negotiator of the company to get the best settlement because they have already earned all of their money. When a negotiator works off of performance they will earn more by getting a better deal and saving the client more. Resulting in a win-win situation.

One more thing to look out for is whether a company is under investigation by the Attorney General. You should look up the states AG office for the company you are considering doing business with, and if they are being investigated then stay far away.

And of course a good debt negotiation service should have a very capable and friendly client services departement, that is capable of handling the day to day operations of the business. Way to many companies neglect to really improve and take pride in their client services resulting in the client not getting what he or she thought they were going to get.

One of the best debt negotiation companies around is the US Consumer Advocate, this organization has a stellar BBB record and works based on their performance, for people in debt needing help they are definitely worth talking too.

Consumer Credit Card Debt Relief Scams! Are They Real?

2011-07-31T21:52:00.000-07:00

I have been in the credit card debt relief industry for just about 10 years now and have been in the financial industry for over 20 years. The point of this article is to give people a heads up on debt relief companies also known as debt settlement or debt negotiation companies. I will give you the pro's and con's of this process and what to watch out for when interviewing a company to help you get out of debt. Before I go on I want to let you know that this will be a rather long article and by the end of it my goal is to have you understand how the debt negotiation/settlement process works in case you don't already know and I would like you to understand the tactics of companies out there that do not truly have your best interest at heart.

First I would like to state that the process of debt negotiation as your means of consumer debt relief is not for everyone, some people are better suited for bankruptcy and others do not have the correct mindset to go through this process.

I would like you to first understand what debt negotiation is and how it works. The goal of a debt negotiator is to obtain a debt settlement for you on the current debt amount you owe your creditor. So for example you may owe one particular creditor $10,000 so the goal of the negotiator would be to have you end up paying back say $6,000. The two main benefits of going through this process are to save money on what you currently owe your creditors and to save time. By just paying the minimum payment with even a modest interest rate you will be looking at 30 or more years to become debt free, with a sound debt negotiation program you will be out of debt within 2-3 years or sooner depending on your current financial situation.

Now you must understand these are great benefits but as with anything in life there are drawbacks, nothing is perfect and this consumer debt relief procedure is no different. For starters your creditors will not be willing to negotiate a debt settlement at all if you are current with your monthly minimum payments. They would prefer you to stay on their credit treadmill for the next thirty years and pay them back over four times the balance in interest alone. So you must fall behind on your payments to put the creditors into a position where they will be willing to settle. Once you stop paying them the ball game changes completely and they will then be willing to talk in terms of negotiating a settlement.

So obviously for some people the beginning of this process will have a negative effect on their credit score. For those who are already falling behind then the negative effect will be no different than it already is. Unfortunately for some people this will be the deterring factor that keeps them from going into debt settlement making them a slave to their creditors for the next thirty years. The good news is that this negative effect does not last forever, in fact once the settlements start coming through your credit score will begin to rebound and go back up. The reason being over 30% of your credit score according to MyFICO is based on how much debt you owe. But if you are stuck in a bad debt situation even if you are current with your payments your score is probably not all that good in the first place, and besides when stuck deep in debt your focus should be on how to get out of debt as quickly as possible, not on your ability to accrue future debt.

Now by falling behind on your debts you must understand that these creditors are just not going to roll over and play dead, they will be calling to try and collect the debt. For some this is not a problem at all, for others it is, that is why I stated above this process is not for everyone and the consumer must be in the correct mind set. From my years of helping people there is no rhyme or reason to how many calls you will receive some clients of mine barely get calls while others get them almost everyday. Something to keep in mind too is that no company has the power to legally stop the calls, so any company that tells you they can is flat out lying.

As you can see like I said earlier there are pro's and con's, but if you can accept the con's you will be quickly on the road to financial freedom and will save a lot of money in the process. Now to get to the meat of the matter and why I named this article "consumer credit card debt relief scams".

We here in America over the past couple of years have been experiencing a very negative downturn in our economy. Thus putting many consumers in a compromising position financially, leaving boat loads of people stuck in credit card debt. So naturally this opened up a much larger market for debt negotiation. Many fly by night companies have been popping up all over the country, many of which are ex mortgage brokers who sold people bad loans and helped them get into this sticky position in the first place. Now I use the word scam which can take on a few meanings, while yes there are some companies out there that are flat out scams and have no intent on doing any work for you at all, most of the times that is not the case. Instead many companies simply do not give people all the facts on how debt negotiation works nor do they truly put them on a plan for success, which I will explain in a minute.

One common issue that most consumers have with debt settlement companies is they do not fully tell them about how the process works, instead they sugar coat things and just preach about the great benefits. I have spoken to countless amounts of people who have signed up with companies and were under the impression that they were going to stay current with their creditors and will never receive any calls. So needless to say this became a huge problem once they began.

Another major problem a lot of these companies have is deceiving people into the kind of savings they will be getting on their debts. Some companies will say they will save you 70% of what you owe. Now while they may get settlements that low what their opting not to tell you is how much you will be saving after you have A) paid them their fees, and B) paid back the creditors. Honest companies will tell you what your true savings will be. If you will save somewhere between 40-50% of what you owe including their fees and paying the creditors than that is pretty darn good. Plus many of these companies will try and guarantee a certain amount of savings, if you hear this run for the hills. NO one in this industry can guarantee a certain amount that is why it is called DEBT NEGOTIATION! They are negotiating to get a settlement for as low as they can get.

Then there are the companies who will let you pay whatever you can to get on their program. These are the worst because they do not truly have your interest at heart and know they are setting you up to fail and not succeed. You must understand to achieve the type of savings I stated above this process should take no more than three years, preferably two or less. And the bottom line is some people simply cannot get it done in that time frame and should realistically be looking into bankruptcy. What these unscrupulous consumer debt relief companies will do is put you on a program for 4 or more years and basically accepts whatever payment you can afford. Knowing full well you are not going to be saving much of anything and will more than likely fail off the program, all they care about is getting the fees and that is it. An honest company will diligently review your budget with you and make sure this is something that you can manage, as well as fully explain to you both the benefits and drawbacks of doing this. And let you make the conscience decision as to whether this is the best consumer debt relief method for your situation.

Another very good way to evaluate a company is to make sure they are registered with the BBB (Better Business Bureau) and that they are in good standings with very few complaints. And if there are complaints make sure they were resolved to the clients liking.

Like I said I have been in this business for almost 10 years now and currently I work for an outstanding company with a great track record and an amazing record with the BBB, the FSLC. If you want an honest evaluation of your situation to see if this is the right method of consumer debt relief for you than follow the link below in the signature file and fill out an application. I will go over in great detail how this process works and whether you are a good candidate. I hope after reading this article you feel more educated as to how this process works and what to look out for when you are interviewing companies to potentially help you out.

Steve Bis is a senior debt analyst and research assistant with the FSLC which deals primarily in consumer credit card debt relief

Article Source: http://EzineArticles.com/?expert=Stephen_Bis

Article Source: http://EzineArticles.com/1832819

Who are the Best Debt Negotiation Companies?

2011-07-31T21:46:00.001-07:00

Is Using A Debt Settlement Law Firm Smart?

2011-07-31T21:42:00.000-07:00

Unless you are residing under a rock, one should know that in the last couple of years our United States economic system has really gone down south. Folk have been losing employment, their pieces of property, and many their sanity. A single burden that has in reality been haunting everyone since this has happened is extraordinary amounts of unsecured credit card debt. People have been attempting to control large monthly premiums that under no circumstances seem to go down in addition to apr's which are extremely ridiculous.

One strategy that has been certainly proving to be a safe bet for most people is debt settlement; however there are two forms of credit card debt settlement programs. You can find business models that can be set up with a lawyer and then programs that can be setup with a regular business. The former is what will really offer consumers a superb possiblity to become debt free in the least amount of time with the least amount of concerns.

Using debt settlement the client will have to go late on their monthly installments and save money on the side. This will allow them to later on bargain for a one time lump sum final payment and close the balance due out. On many occasions the consumer will save just about 1/2 what they owe plus find themselves out of debt in just a couple years.

This is very good; however there are a couple of downsides with debt settlement that can make employing a lawyer much more opportune for the client. For starters once people go late on the bills the credit card banks will try and collect the debt by way of phone calls. A lawyer will have the ability to legally prevent collection agencies from consistently harassing the client, where a company can't.

One more negative for the debt settlement program is the possibility of getting sued. With having employed a law firm, then they will be able to under legal standing approach and still settle with a creditor who would be attempting to take someone to the courtroom. This is a tremendous benefit for an individual when using a debt settlement law firm over a company.

Perhaps though the most important grounds to use a lawyer is because credit card debt settlement businesses are going extinct. The FTC along with other regulatory bodies want to close down credit card debt settlement services which are not developed accurately and the vast majority are not founded right. Hence making the usage of a lawyer must more beneficial. When a debt settlement corporation is going bust and does not have the money to pay back its consumers who they currently can not service, who gets screwed? The client!

Consequently if you have have discovered you and your family to be drowning in sizeable measures of bad credit card debt then contacting a debt settlement law firm can be a very sensitive thought for you and your families personal safety. Staying stuck in consumer credit card debt that may never go away is a awfully dumb economic move to make and makes investing money almost impossible for the everyday American. You may come to realize how much less complicated month to month budget management will turn out to be when you no longer need to worry about high credit card expenses that must be paid with no finish in view.