http://www.destroydebt.com/ Destroy Debt is an online community which provides regular articles showing practical ways to eliminate debt. www.destroydebt.com Fri, 10 Feb 2012 03:19:31 GMT webmaster@destroydebt.com webmaster@destroydebt.com http://www.destroydebt.com/articles/should-you-file-bankruptcy-yourself.html http://www.destroydebt.com/articles/should-you-file-bankruptcy-yourself.html Sun, 20 Feb 2011 06:00:00 GMT Should you file for bankruptcy yourself? When pondering the question some point to the old saying, “he who represents himself has a fool for a lawyer.”
Some online companies that offer legal advice make it sound as though filing for bankruptcy is as simple as filling out forms. Someone might want to ask someone from one of those companies if completing a tax return is as simple as “filling out forms.” Tax forms have written instructions for non-professionals and non-accountants. Bankruptcy forms do not have written instructions written with the novice in mind.

If you have a lot of assets to lose in a bankruptcy, it might be worth your while to hire a lawyer when you file.
There are many mistakes typically made by those who file for bankruptcy themselves.

One common mistake made is exemptions are not included in the filing. These are things that are not included in the bankruptcy itself and cannot be touched by creditors or a bankruptcy trustee. Such things are covered by law, and not including them can cost a person filing for bankruptcy a lot of money and headaches.

Some filing for bankruptcy fail to list such items as property such as stock options, interest in probate estates, partnership interests, lawsuits, trust funds, retirement funds, and tax funds.

Some filing for bankruptcy themselves fail to list certain kinds of creditors, and this is a mistake. Another mistake is not listing creditors because the filer wants to repay the debt to a person or business.

Some debtors, wrongly believing nobody will know anyway, do not disclose some assets or transfer assets to others before their bankruptcy.

Some debtors greatly underestimate how much their living expenses are.

New bankruptcy amendments in 2005 mean some cases are dismissed automatically. In some cases, the relief available is limited. This makes the forms which must be completed very complicated. The changes made to the law were meant to discourage bankruptcy filings. The process is more complex. The mistakes are most costly.

Chapter 13 bankruptcy laws were not created for those representing themselves, laymen, or those who are not bankruptcy experts. Initial consultations with bankruptcy attorneys are free or inexpensive. Alternatives to filing for bankruptcy yourself would be saving up to pay attorney fees or finding a legal plan that will allow you to pay over time.  ]]> http://www.destroydebt.com/articles/what-is-in-your-credit-report.html http://www.destroydebt.com/articles/what-is-in-your-credit-report.html Thu, 10 Feb 2011 06:00:00 GMT A credit score and credit report are two different, albeit related, things. Credit scores—commonly known as FICO scores—are numerical values that rate one’s current creditworthiness. In the United States, credit scores typically range between 300 and 850. A credit report, on the other hand, is a more comprehensive loan dossier. Identifying information is not calculated into a credit score, but is found on a credit report.
Identifying Information: Basic Facts

You’ll often hear people say that one’s marital status, nationality and even religion are factored into credit scores; this is simply not true. The Consumer Credit Protection Act prohibits identifying information from being weighed as a factor when evaluating an individual’s credit score. Your credit report, however, does include your name, address, social security number, date of birth and any employment information. Updates to your credit report are made whenever you provide new information to potential lenders.

Trade Lines: Credit Account Facts

Trade lines are bank-managed reports that keep track of credit accounts. For example, if you have 5 credit cards, an auto loan and a mortgage with one bank, that bank will have 7 trade lines associated with you. These reports include the date the account was opened, the credit limit or loan amount, the current account balance, and a payment history timeline.

Public Records: Financial Legal Facts

Unfortunately, any financial hiccups will make an appearance on your credit report. Bankruptcy judgments, wage attachments, foreclosures, liens and suits are all tracked and recorded. As you would suspect, such things are major red flags in the eyes of a creditor; so, it’s always best to try and pay off your debts before committing to any drastic financial steps that could haunt you for years.

Credit Inquiries: Popularity Facts

Yes, it’s true that both voluntary and involuntary credit inquires do appear on your credit report, though they’re not as damaging as some imagine. In other words, no, your credit score doesn’t drop every time you check it. While excessive inquires may look suspicious on your credit report, they don’t affect your FICO score.

The three main credit bureaus in the United States are Experian, Equifax and TransUnion. Information can vary between bureaus; therefore, if you’re in the process of clearing up your debt, it’s a good idea to find out where you stand with all three.

Good luck on your way to financial responsibility; and remember: a sparkling credit score is worth its weight in gold!]]> http://www.destroydebt.com/articles/pros-and-cons-of-debt-settlement.html http://www.destroydebt.com/articles/pros-and-cons-of-debt-settlement.html Mon, 24 Jan 2011 06:00:00 GMT Excessive debt is suffocating; like a dark cloud in cartoons, debt hangs gloomily over your head and affects nearly every aspect of your life. Anytime you think the situation is under control, another bill arrives; like always, due to late fees, it’s double the amount you were anticipating.
You know you have to get your finances under control, but don’t know where to start.

Take a deep breath and relax. While the opposite may seem true, you do have plenty of options. You’re not alone: in recent years, millions of indebted Americans have been turning to debt counselors. Some people choose to consolidate their debt, others choose bankruptcy, but more and more people are turning to debt settlement.

Pros to Entering into a Debt Settlement Agreement

A good portion of your debt will be forgiven

Why is debt settlement the financial arrangement du’jour? For starters, debt settlement companies are experts at getting clients’ debts forgiven; on average, borrowers usually end up paying only 50% to 60% of what they originally owed—an attractive aspect, indeed.

Incessant harassing phone calls will end





One of the most stressful parts about being in debt is the constant nagging from collection agencies. All that stops when you enter into a settlement agreement because legal action can no longer be taken against your debt. For some, the cessation of creditors’ calls, in it of itself, far outweighs any debt settlement drawbacks.

Cons to Debt Settlement Arrangements

The Tax Man will always find you

Don’t put on the rose-colored, debt-settlement glasses quite yet; after all, it’s not a cure-all for all your financial woes. While the benefits of debt settlements are considerable, so are the handicaps. For example: a debt settler may be able to negotiate your bill down to 50%, but the 50% you were forgiven is considered income that you’ll have to pay taxes on.

It could take years

Every debt settlement company works differently. A common practice, though, is to have clients pay into their own account at the debt settlement company. When your account reaches a certain amount, that’s when creditors begin to get paid. In other words, you may be faithfully paying your monthly bill to the debt settlement company, but they may not actually start paying off your debt for years; Moreover, borrowers should figure out exactly how much they’re paying the debt settlement company as opposed to their actual creditors. If the number is skewed in favor of the settlement company, that’s reason for concern.

If you’re debt is mounting and shows no sign of stopping, debt settlement can be a financial lifesaver. Just be sure you weigh all the pros and cons; if you can, consult a qualified financial planning specialist; but most importantly, identify and cure the root cause of your excessive debt. You can enter into as many debt settlements as you like, but if you have a problem with overspending, your situation may never be rectified. Remember, there’s debt counseling help all around, all you have to do is reach out and start getting the help you need.]]> http://www.destroydebt.com/articles/choosing-the-right-debt-management-program-.html http://www.destroydebt.com/articles/choosing-the-right-debt-management-program-.html Tue, 11 Jan 2011 06:00:00 GMT You are in debt and cannot seem to get out. What should you do now? Should you enroll in a debt management program? Should you contact a credit counselor? How do you know who to trust? These are the questions that plague the millions of Americans in debt today. Fortunately, choosing a debt management program does not have to be difficult. By analyzing your debt, researching debt management companies, and taking steps toward financial freedom, debt can be not only lessened, but eliminated.
The first step is to analyze the debt that you have. Make a list of all of your debts, then call your creditors to see if they would be willing to work with you on interest rates or payment schedules. Consider the size and interest rates of your debts, and make efforts towards paying the smallest debt off first. This results in a "snowball effect." Once the first debt is paid off, it is no longer accruing interest, and you have more money per month to put toward the next smallest debt.

Secondly, carefully research debt management companies should you choose to use one. Look for a registered non-profit agency that does not charge outrageous amounts of fees. While some up-front costs and small monthly fees can be expected, anything more than $100 up front or $20 per month is generally considered to be unreasonable. Make sure that the credit counselor you are working with asks for all of your information before giving you a quote. If the counselor is not considering all facets of your debt, it is likely they do not have your best interest at heart. Check with the company about how they will protect your personal information. Also find out how the program works and how your payments will be distributed to your creditors. It is important to know what is being done with your money at all times.

Finally, take steps toward financial freedom. Make a budget and stick to it. Be sure to leave yourself a little money for "splurges," but be reasonable. Cut up your credit cards so that they will not be a temptation. Keep track of all of your expenses. Set goals for yourself and celebrate when you achieve them. By analyzing your debt, researching debt management companies, and taking daily strides toward financial freedom, you can eliminate your debt and live a financially fulfilling life.]]> http://www.destroydebt.com/articles/debt-settlement-produces-more-welfare-than-credit-counseling.html http://www.destroydebt.com/articles/debt-settlement-produces-more-welfare-than-credit-counseling.html Tue, 25 May 2010 06:00:00 GMT “Debt Settlement Produces More Welfare than Credit Counseling” – Franklin Debt Relief to FTCA new report submitted by Franklin Debt Relief’s CEO, Robert Zangrilli, to the FTC shows that debt settlement benefits consumers more than credit counseling, and in fact, consumers who use credit counseling lose more money in non-refundable payments than they save based on industry statistics.
The report points out that since non-profit credit counseling is subsidized by credit card companies it is naïve to assume that these agencies serve the interests of consumers, and it goes on to support this thesis with statistics such as the fact that 35% of consumers who contact consumer credit counselors are enrolled in debt management plans (DMPs) despite the fact that more than 75% of these consumers will never complete their programs. According to Zangrilli, the average consumer who uses a DMP loses approximately $5,000 in non-refundable payments to credit card companies when they should have been advised to seek out the services of a debt settlement company or bankruptcy attorney immediately. He goes on to suggest that this should be expected since these agencies are funded by banks and it makes sense that they would serve their interests primarily, even if it is at the expense of consumers.

In the midst of the worst recession since the Great Depression and with the FTC contemplating rule-making that will potentially eliminate the debt settlement industry as we know it, it is dangerous to push consumers into the arms of credit counselors. Although it is clear that the debt settlement industry needs to be cleaned up, even in its current unregulated form it is a better alternative to credit counseling for most consumers.

To read the report check out: 

http://www.ftc.gov/os/comments/tsrdebtrelief/100426franklindebtrelief.pdf To see the press release for this report: 

http://www.prweb.com/releases/2010/05/prweb4035034.htm]]> http://www.destroydebt.com/articles/reducing-debt-fast-bailout.html http://www.destroydebt.com/articles/reducing-debt-fast-bailout.html Mon, 05 Apr 2010 06:00:00 GMT Millions of consumers are struggling each day to pay off high interest debt, with many of them falling farther and farther behind each month.  While it would be ideal if there was some sort of "magic" solution to this problem, the truth of the matter is this: each person is responsible for figuring out the best process for eliminating their high interest debt.  There is no bailout in sight for consumers, therefore you must closely examine the options that are available to pay off your debt balances and move on with your life.  One of the popular debt relief options available today that is often confused with some sort of government "bailout" is debt settlement.
Debt settlement, sometimes referred to as debt negotiation is a legal process which may cut your debt in half.  Unlike debt consolidation or debt management plans, this process does not involve paying your creditors each month, instead you set aside a predetermined amount of cash each month to be applied toward future settlements. When your accounts are delinquent, creditors are often willing to negotiate or settle for a reduced payoff amount, which can reduce the amount of money owed by 50-70 percent.  This process, while often successful, is not one that comes without risks.  There are no guarantees that the creditor will be willing to negotiate and there are several factors that determine if they will consider a reduced payoff amount and if so, how much you will save.  In the meantime, your balances will continue to rise due to late fees and other penalties applied to the account.   

Anyone considering debt settlement should also know that this process should be considered as a last resort before filing for bankruptcy.  Despite the fact that debt settlement can reduce your debt, there are situations where the consumer may end up owing more money or worse face legal ramifications for delinquent accounts.  With this in mind, you may be wondering why anyone would assume these risks with no guarantee of success.  The answer is simple; this process is geared toward consumers who have already fallen behind on monthly payments or are about to as a result of a financial hardship.  It is not recommended for consumers who have the ability to repay their debt, even if only through minimum payments. You must demonstrate a true financial hardship and the ability to pay something toward the account to be considered for debt settlement.  Your credit will take a hit in the short term, however if you are successful in settling your high interest accounts, you have the opportunity to move forward without the burden of thousands of dollars of debt.   

Remember that debt settlement companies are in business to make money.  Unfortunately the industry has several companies that have not been forthcoming or honest in how they handle consumer accounts, therefore you must do plenty of research in order to determine if the company you are considering is able to help you versus cost you more money in the long run.  There is no easy solution or "bailout" for consumers in debt, however you can put forth the effort to make informed decisions as to how you will eliminate your debt.]]> http://www.destroydebt.com/articles/non-profit-debt-relief-organizations.html http://www.destroydebt.com/articles/non-profit-debt-relief-organizations.html Mon, 05 Apr 2010 06:00:00 GMT Non-profit debt relief organizations offer the same services as profit-based debt relief organizations. The difference is that their operations are run on charity based donations as well as government grants accessed through their non-profit status. To be certain that a debt relief organization is in fact a non-profit you can check the ‘About’ section of the company’s website. If the company is a non-profit it should clearly state as such on this page and it will refer to achieving IRS 501 (c) (3) non-profit charitable organization status.
But why do these things matter? Below are some of the reasons you may prefer to get help from a non-profit organization.

Security of Being a Recognized Non-Profit

There is a certain security in seeking assistance from a company that has declared its non-profit status. Especially in the debt relief industry, which deals with people who are bogged down by debt, a non-profit company signals that help will not cost exorbitant amounts and it will be genuine. To achieve non-profit status a company must conform to certain stipulations and this in itself provides a layer of safety in an industry that is fraught with scams.

No Outrageous Promises

Non-profit debt relief organizations do not offer outrageous promises. It is not uncommon to come across companies that claim to be able to improve credit scores instantly or to cut debt in half in a short space of time. A non-profit debt relief organization will not make irresponsible claims because they are aware that their continued status depends on their customer feedback.

Free Credit Counseling Services

Credit counseling is offered by all debt relief organizations, but there is usually a fee attached. While non-profit debt relief organizations may also charge a fee, this fee should be considerably less than the cost of the same service at a profit based company. The bonus of the service provided by the non-profit debt relief organization is that they usually make referrals to other local social service organizations that can offer support in other areas. This can make a huge difference to a family trying to deal with several problems at once and can increase the likelihood of success of the financial management plan because of the attention given to other areas of family life.

Debt Consolidation Loans on Offer

The debt consolidation process entails switching a series of unsecured high interest loans for a single low-interest secured loan. To make this possible, in most cases you need to offer considerable collateral, which comes down to risking your home. This reality does not change under a non-profit debt relief provider, so you need to carefully weigh the risks and rewards involved in a debt consolidation loan.

Non-profit debt relief organizations can offer a sense of security that is invaluable at a time when it can feel like everything is up for grabs. Even though you may feel safe because of the non-profit element of the organization you should ensure you know what you are getting into before signing on the dotted line.]]> http://www.destroydebt.com/articles/government-help-for-credit-card-debt-problems.html http://www.destroydebt.com/articles/government-help-for-credit-card-debt-problems.html Tue, 16 Mar 2010 06:00:00 GMT The offers promising specialized government sponsored programs to get out of debt seem to multiply with every click of your mouse.  These offers promise immediate help from the burdens of mounting debt from credit cards.  Although the offers may seem like a valid solution to issues of debt, they are not valid options. These offers are nothing more or different than other credit card debt relief programs, other than the fact that they are being marketed with the word government tacked onto the title. 

The truth is that the government would not benefit from assisting with the elimination of credit card debt. The taxpayers would probably   Other than assisting with bankruptcy proceedings the government does not have the legal or financial means to provide credit card or other debt relief programs for individuals.  The implementation of a program specifically designed and government sponsored would require a great deal of legal proceeding and approval.  Social assistance programs require a great deal of preparation and typically offer much national controversy. The proposal for a government sponsored credit card debt relief program is not in the works at this time.    


Government help with debt does exist. The government offers assistance with learning new ways to manage debt through IRS credit counseling. Counseling and financial programs are sponsored through the government designed to provide information and tips to consumers for assistance managing their finances. There are many offers for programs related to financial planning, debt management and credit card management that are government sponsored and supported.  These are not debt relief programs but rather informational services to promote responsible spending habits and resources to assist with debt.   


The government also offers bankruptcy assistance for those that have no other options. Bankruptcy is a legal proceeding designed to relieve individuals for the burdens of debt. Bankruptcy does have long term effects and consequences however a viable option for debt relief is.  The option to file bankruptcy is an individual choice that offers government assistance with the process. It is designed to eliminate debt to allow consumers to be freed of the financial burdens of debt, which includes credit card debt.   


The Credit Card Act that took effect in February 2010 is also an example of government assistance for consumers that have credit card debt. This regulation was designed to regulate excessive fees and provide credit card users extra protection.  This is an initiative that stems from governmental regulation and the recognition of the unfair practices happening in the credit card industry.  This is not a credit card debt reduction program but rather a protection for consumers that can help mange debt in the long run.   


Those looking for government help for credit card debt may be disappointed to find that there are no ‘get out of debt quick programs’ designed by or sponsored by the government that will eliminate consumer credit card debt.]]> http://www.destroydebt.com/articles/obama-debt-settlement-program-.html http://www.destroydebt.com/articles/obama-debt-settlement-program-.html Tue, 16 Mar 2010 06:00:00 GMT The struggle with American debt continues. Bankruptcy continues to become a more frequently used alternative than ever before.  For some, bankruptcy is an easier option than struggling through the mounting bills that cannot be paid.  Reports show that the average American has more than one credit card regardless of their ability to pay them. 
The reality is that increase in declarations of bankruptcy effects financial lending institutions as well as individuals. Bankruptcy puts everyone involved in a difficult economic situation.  The more people that file bankruptcy, the more financial loss for lenders.  This is a difficult and dangerous cycle that can potentially cause further damage to the economy.   


The Obama administration in response to the circumstances surrounding ever-increasing American debt developed a stimulus package to assist lenders in recovering losses that resulted from bankruptcy.  This stimulus package, although provided directly to the lenders, indirectly benefits the borrowers.  The assistance provided to financial institutions such as banks allowed them to come up with creative settlement options for consumers struggling with debt.   


There is a misconception that the government will provide money to individuals with the ultimate goal of eliminating personal debt.  The government has developed and directed programs that assist individuals however there is no plan for a government debt settlement program that will eliminate or alleviate debt. The government has provided incentives that indirectly assist consumers who have debt with options other than bankruptcy.   


Declaring bankruptcy has a long term impact on financial institutions and consumers. Avoiding bankruptcy when possible is the best option. When a person files bankruptcy their credit suffers.  It can take years to recover from the sting of bankruptcy.  Lending institutions take a loss when the consumer is unable to pay the debts.  It is in the best interest of all parties to work out a reasonable settlement arrangement.  The stimulus assistance provided through the Obama debt settlement programs allowed banks to recover some of their losses and provide more attractive options for settlement arrangements to borrowers.     


The legislation that made the debt settlement program possible was designed and implemented during the early days of the Obama administration. The legislation was sparked by the government but should not be considered a government debt settlement program.  The specific goal of the legislation was to prevent bankruptcy by providing banks with incentives to arrange manageable debt settlements with borrowers who are struggling with debt.  


This stimulus program provides consumers with options other than bankruptcy.  This package was designed to indirectly stimulate the economy and create a positive impact on the lender borrower relationship.   There are many different types of debt relief programs ready and able to assist with debt settlement.  Given that new legislations proves a more comfortable environment in which to negotiate debt settlement, now is a good time to shop around for the program that is best for you. Reducing the number of bankruptcy cases is a benefit for everyone. ]]> http://www.destroydebt.com/articles/access-receivables-management-.html http://www.destroydebt.com/articles/access-receivables-management-.html Wed, 03 Mar 2010 06:00:00 GMT Access Receivables Management is a debt collection agency which has developed innovative methods to do their work, is armed with experience and all set to take on the next challenge. They have experience in recovering dues for the commercial, dental, medical, insurance and education sector and have bagged quite a few awards for their excellent services.
 This awards list includes: 

· Baltimore Smart CEO Future 50

· Top 50 Women Owned Businesses in Maryland

· Top Small Business in Maryland

· Top Women Owned Business in the United States

· Top Women Owned Business in Maryland 

They are a well recognized collection house and are members of ACA International and are also certified International Association Commercial Collectors. 


Access Receivables Management has a wide range of services. They design, implement and manage first party receivables management programs. This allows corporate and consumer oriented clients to take this load off their shoulders and outsource to them. This provides a practical alternative for clients who otherwise have to get the job done by expending their own resources. Their solutions are perfectly customized to the customer’s requirement. They also offer customized services for clients who wish to sell their debts.

 
Third party debt collection is what they are known and respected for and they provide excellent services in that area.  They have also developed totalACCESS which is a web portal through which clients can stay in the know about how their cases are being handled. This makes for a very transparent process.  


     A measure of how well this company does their job lies in the fact that they have won praise from both debtors and clients alike. A look at their debtor’s testimonials will reveal the effective tried and tested methods that make their ‘collections don’t need to be stressful’ policy, a reality. They fully evaluate and understand the debtor’s situation and then carry out their task with compassion.  This is something al their clients will agree upon. Their ACCESS formula for SUCCESS ensures that there is a well defined code of conduct that the company sticks to. As a result of this, it has maintained a constant level of excellence.  

Access Receivables Management can be contacted at the following address:

Access Receivables Management 
200 East Joppa Road 
Suite 310 
Towson, MD 21286 

They can be contacted over the phone on 1-877-276-8600 which is toll free or you can fax them on 1-410-583-8602.]]>