How to Deal With Debt Collectors to Save Yourself From Stress

Dealing with debt can be amongst the most stressful things to deal with in life. The thought of debt collectors pounding at your door and phoning day and night is incredible intimidating and can make you feel ill with fear and worry. Thankfully you can protect yourself from debt collectors and there are laws in place so that you don't feel intimidated.

The Fair Debt Collection Practices says that debt collectors can't phone before 8am or after 9pm, they can't take your wages or harass you with non-stop phone calls.

Due to these practices you have a number of options. First and foremost, you don't actually have to take any debt collection calls. You can choose to use your answering machine to screen calls before you answer the phone. There are even call-blocking services for filtering them out completely.

If you do decide to pick up the phone simply and politely ask them not to call again. Legally they have to conform to your wishes if you send a 'cease and desist' letter. Legal action costs a lot of money so should be avoided if you can. There are other ways you can deal with them too.
At the end of the day, if you took out a debt then you should make arrangements to pay them.

This may sound difficult if you are struggling with money however it's possible to negotiate a lower rate. By keeping up with your re-payments the phone calls will end. Debt collectors are people too and are just doing their job. Once and agreement has been set up and you stick to it, they will simply leave you alone and target other debtors.

Start a diary and take notes of calls made and received along with the content of the conversation. If you decide to record the calls, make sure to tell the advisor what you are doing.

When debt collectors know the call is being recorded, more often than not they'll be on their "best behaviour." A diary or recording can become very important if you have negotiated a better deal on the debt. It may not be apparent to you but most debt collection agencies can reduce the amount you owe. Because they receive a percentage of the collected amount, they may think it's worthwhile to have 50% of $700 than %100 of nothing.

When you make an agreement about payment, you should ensure that the collection agency doesn't add more black marks against your credit report. You should also be firm about them reporting quickly about payments you make and adjust the total amount due.

Make sure that all agreements are down in writing before sending large amounts of money. Send a small amount to show that you are committed to paying the debt however if you send too much they may not bother binding to your agreement.

Stay calm and patient throughout your conversations because you don't want to get on the wrong side of them and make matters worse.

By April Kerr

April often writes articles for the Daily Dosh blog which also has articles relating to credit reports and debt counselors.

DIY (Do-It-Yourself) Debt Settlement

Do it yourself debt settlement can save you a lot of money, many people live by the "if you want it done right, you've got to do it yourself" camp.

The thing to remember is you can do almost anything yourself if you have the right training, resources and time to do it. But realistically most people would rely on an auto mechanic to replace their transmission for them or hire a lawyer if they wanted to finalize a divorce correctly. The same is true if you want your debt settled correctly. Unless you really know what you are doing you should really leave it to the professionals. This is especially true when it comes to your money and credit rating.

There are many ways I have seen bill collectors try to take advantage of people that don't understand how to finalize a settlement; the most common problem I see is when the difference remains owed even after they thought it was settled in full. Bill collectors can rarely be trusted. We have heard from countless people that tried to settle the debt themselves only to find out they were duped by the bill collector and the balance of the debt has been sold to another collection agency.

If you are adamant about doing it yourself, first make sure you can budget a lot of your time (at least 25 hours) to deal with each creditor you owe and secondly do your homework and learn your stuff. There are lots of DIY guides out there but check out the author and make sure they have the knowledge. Also make sure you are committed to finishing the job as many debt settlement companies wont take over if you find you have bitten off more then you can chew. DIY debt settlement is a mess professional debt settlement companies do not want to clean up.

At the end of the day it may appear to cost more money to hire a professional company to negotiate settlements. However, when you consider the amount of resources and time that is needed to get it done right, it usually is more cost effective to pay a company to do it for you.

Look for a debt settlement company that compensates its team based on results and offers you a service guarantee. No settlement should equal no fee. Avoid places that promote themselves as jacks of all trades, where they offer debt settlement, bankruptcy, credit counseling and debt consolidation loans all at the same place. Find a boutique shop that focuses their business on debt settlement and knows what they are doing. If you are not sure, ask questions.

By Richard G Cooper

Richard Cooper is Founder & CEO for Total Debt Freedom Inc. Canada's most respected debt settlement company. Originally conceived for the mortgage community in 2003 to help fund more sub-prime mortgages and fix turn downs due to bad credit; Total Debt Freedom also offers debt settlement plans up to 36 months for those that aren't homeowners. http://www.totaldebtfreedom.ca

Don't Get Cheated With Shady Debt Relief Programs

One of the greatest advantages of turning to a debt relief program to help you navigate your way out of debt is that your program will be customized to suit your personal needs. No single debt relief program is appropriate for everyone, because the reasons for people losing control of their debt load are as varied as people themselves. Your program will be the one most likely to eliminate your debt in the shortest possible time.

Online Debt Relief Programs

If you are uncomfortable with the thought of having a one-one-one discussion with an employee of a program service, or simply do not have the time to spend in such a meeting, you can look for an online program. But you need to be careful when operating on the Internet, because there is not guarantee that the people behind the websites you are visiting are who they claim to be. Anyone with the money to do so can buy a domain name, and build website offering debt relief programs, no questions asked.

The sites on which you may see debt relief programs advertised will not have asked for identification from those placing the ads, and will know little about them other than their billing information. There are no background checks in place for those creating websites, and you could very become involved with a debt reduction program site without ever learning who is behind it.

Buyer Beware

It's not unusual for online companies to offer Post Office box numbers as their only mailing addresses, in an effort to protect the personal privacy of the webmasters. But legitimate debt reduction program companies will be able to give you the physical address of their brick and mortar operations, where you can actually talk to their staff if you wish.

Trying to communicate to a Post Office Box seems ridiculous, but many people are so drawn in by the debt relief claims of scammers that they simply overlook what should be obvious red flags. Don't become one of them!

Think twice if you find a debt relief program company which cannot provide a physical address, because they may have something to hide. Their website should also provide you with the company's email, phone number, and the name of a contact person.

Unless you can get that information, you will be unable to determine the identity of the parties operating the website, and you should never involve yourself in a program based of trust in unknown individuals. They will be asking you to send them your money, yet you have no idea of their true intentions. You have not way of knowing if they are even qualified to offer debt relief programs. How much sense does that make?

There are hundreds, if not thousands, of legitimate debt reduction program companies available, and because you are already in debt, you don't need to be risking any more of your money on dubious websites.

You can also find more info on bad credit car loan and debt consolidation and reduction. Myfinancialbliss.com is a comprehensive resource to get your all financial solutions.

By Jonathan Andrew

Budget For Success With A Debt Consolidation Loan

Before you look for answers to these questions, you would need to understand what a no equity debt consolidation program is, in the first place.Basically this program would help you get a loan of US $30-50000 in cash as it would be calculated as if there is no equity on your home.

If you have reached the point where you are considering debt consolidation services the obviously your credit rating is probably the last thing on your mind but down the road you may be sorry if you know you can save your credit rating and you did not even try. The basic purpose of debt consolidation is to combine all of the debts that you owe into a single bill so that you have less to worry about.Student debt consolidation follows a different set of rules even if it is the same principle.

A good relationship will help things along. Each loan can be drawn on a different company or bank based a variety of criteria like when were you enrolled and what was accessible for you at the time. The reason you want an existing relationship with a financial institution is because unsecured debt consolidation loans are not backed by collateral as they are based solely on your credit and your income history.

Debt ReliefThe next step is going to be for you to determine whether or not you are qualified. Today' s new rules require individuals to participate in budgeting guidance before they can seek bankruptcy relief and since there art no debt relief grants from the government, firms that advertise as such are most likely considering the court as a way out of debt. But some people get in over their heads with credit cards and they need some type of credit card debt settlement in order to get out from under the heavy debt.

If you are bluffing then settle for whatever they offer but that can be your first step towards credit card debt reduction. They provide you with a line of credit or lump sum that you can use to be able to get out of debt. Balance transfer deals is how many people wind up so deep in the hole they cannot get out so if you are getting ready to do your second or more transfer than just stop and talk to a professional credit counselor.

In most cases they would be able to freeze the interest, reduce and even waive part of the compound interest charged - thereby providing you with great savings as well. It is quite common for most people that have fallen into credit card debt to consider eliminating such debts through using debt consolidation services, though before also taking this path it is necessary to pause and consider whether such a course of action is indeed the correct way out of your debt problems.

Author: Tom Kranz

Tips In Choosing The Best Bad Credit Card

Having bad credit does not mean one can never apply for good credit cards. Because of so many people having problem with their credit, credit card companies saw the potential in providing service for this people. Thus, credit card companies came up with bad credit credit cards. As the name suggest, these credit cards are especially created to cater people with less than perfect credit history.

Bad credit credit cards or secured credit cards do come with higher interest rates and fees to make up for the risk from customers who have a poor credit history. When compared with standard credit cards, these cards also impose lower credit limit for its card holders since they were not able to present impressive credit.

However, this doesn't mean that credit cards are inferior since these cards can be a tool for people with bad credit to regain their credit reputation. Just how is this possible? By submitting regular payments on your account, secured credit cards report to the major credit bureaus to ensure that your credit report is updated.

Understandably, not all bad credit cards are offered in the market are great and it is up to you to do your choosing carefully. One of the first things you should look for with a credit card is whether it reports to the major credit bureaus. There are some secured credit card providers that do not have this important provision. This is crucial in helping you rebuild your bad credit history.

Of course, just because you don't have an excellent credit doesn't mean you have to settle for unreasonably high rates that credit cards impose on their clients. It is possible to find secured credit cards with interest and fees that do not take advantage of your poor credit.

Another important factor to check about secured credit cards is the minimum amount of deposit required to get an approval. This security deposit is held in your account in case you default on your debts, thus giving the bank a guarantee that they can use this money to pay for the debts your defaulted. Take note also that some banks place this security deposit in an account that bears interest. Make sure that you'll be able to claim this security deposit along with its interest after building your credit.

The use of your security deposit may also differ depending on your bank. Some creditors will take your deposit if you miss a single payment in your account while some banks allow at least 5 to 6 months before deciding that the card holder has completely defaulted his debts.

Most importantly, choose a secured credit card that allows you to convert your account to an unsecured one after a certain period if you can prove that you are submitting all your payments dutifully and timely. This way, you can enjoy the privileges that unsecured credit card holders enjoy such as lower APR, higher credit limit, and less restrictions.

Author: Liz Roberts

How to Manage your Debts?

As for others, managing their debts is one of the hardest tasks that they can do. Some think that it is likely impossible to manage their own debts. But hold on and relax, because this article will help you to manage your own debt.

Something that seems impossible before will now be possible. Everything is a matter of self control, being organize and knowing how to use your budget wisely. Putting these things into practice can make your debit free. It is significant to keep track of your debts and contact all your creditors so that they would be aware that you want to settle your account as soon as possible.

Doing so, your creditors can decrease your interest rates. In addition to that, if you are not that confident that you can do the monthly payment, let them know so they can design an agreement that will suit your needs. One of the best options for you is Debt Consolidation. This could help you manage your debts and eliminate it in a short period of time.

If you own a home, you can consider applying for a home equity loan or putting a second mortgage to your house. You might think that this is extreme but if you have numerous high interest credit cards, bills, or loans, in realism, you are paying additional for these materials than they were valued when you bought them.

This is the negative side of equity loans though. Most loans requires your real estate as collateral and if you fail to make a payment you’ll be in risk of losing your home. Another way to arrange your debts is to make large monthly payments on your credit cards. This is because if you pay less, larger amount of interest will be place.

Paying larger will be eventually lower your interest smaller until you are done with paying the bills. If you add just a few extra dollars to your payment each month, it will increasingly condense the number of payments of all of the loans and credit cards you have increase. While you lesser the amount of payments that are made, this also decreases the balance a person will eventually end up paying in charges, interests, and fees. You may also consider Credit counseling.

This is the process that will give you a service to assist you in determining a reliable form of action to help you mange and eliminate your debts. These organizations offer an ample variety of programs such as, guidance on debt management, and have workshops that are stanch to things like, managing money and budgeting. But more than anything else, the most powerful tool or solution to manage your debts is budgeting.

As for this, you must know what you can only pay. So, get a debt that you can pay. Make a listing of the things that you need and prioritize the most important ones. Have a careful research and thinking before getting a debt. Know your budget well and you’ll be able to have manageable debts. To know more about debt counseling and How to manage your debts, visit this site.

Author: John Smith

How To Pay Off Old Debt For Less

Have old debt you have had sitting on your credit report for a long time now? You want to try and get it cleaned up and improve your credit rating? Let me guess you don't want to pay off the ridiculous amount. Well I've got a good tactic to help you clean up your credit and save you money in the process.

First try to understand what happens to your debt when it goes to collection agencies. Let's say you had work done at the dentist a few years ago for which the bill amounted to $100 and you never paid them. The dentist probably tried to get his hard earned money for the first 90 days to 180 days, maybe longer.

At the end of that time they just give up and assume that you're not going to pay them. The firm doesn't want to just loose $100 though, they want to get paid at least some of the money. So what do they do you ask? They sell the debt to a collection agency for a lesser amount, say $30.

The debt collection agency is in the business of collecting debt, they are the experts at what they do and have more time and resources to collect debt than a dentist. The collection agency has a much better chance at getting the money you owe by bugging the crap out of you night and day to remind you of your debt. By now your probably tired of them bugging you huh?

Well the good news is that with careful negotiation you can probably pay less than what they are asking. As I stated above, they bought the debt from the dentist for around 30 cents for every dollar on the debt owed. So it would be smart for you to offer them 50 cents for every dollar owed. This is a win/win situation because the debt collectors get to make money on their investment and you can stretch your dollar to pay off more debt in a shorter amount of time.

Another option to paying off debt quicker is to make more money, right now the internet business is booming. These two ebooks are a must have for anyone that wants to get serious and open up shop online.

Learn how to sell products from home using the net - http://www.ditchtheladder.com

Learn how to flip websites using EBAY - http://www.sell-ebay.com

By Eric Gard

Good Debt Vs Bad Debt

Overall, debt is a very complex topic. To simplify, it is best to view debt as either good or bad . Good debt can be defined as debt that is obtained while making a decision about the future. It is usually used to purchase something that appreciates in value. Bad debt can be defined as debt that is used to obtain something that is disposable or depreciates in value. Understanding the differences and how to use the different forms can help you minimize the bad and will allow you to use the good wisely to accumulate real wealth.

Understanding Bad Debt

Bad debt is used to purchase things that are disposable an will never have the chance to appreciate in value. Two prime examples are high interest credit cards that are not paid in full and auto debt. When you use debt to finance things that are consumed, you can be sure that this is creating bad debt. Most things purchased with a credit card and not paid off in full by the end of the month will turn into bad debt. Auto debt is also considered bad because everyone knows that when you purchase a new car, the moment you drive off the lot the car loses value instantly.

With the financing options available now, most people purchase more car than they can financially handle. The way payments are spread over such a long period of time can make almost any car affordable on a monthly basis to anyone. However, after years and years go by and the car is finally paid off, the car maintains very little value of the original amount spent. These types of debts generally carry a much higher interest rate than good debt. In general, bad debt takes money out of your pocket and keeps taking more out.

Understanding Good Debt

Good debt is usually obtained while making a decision about the future. These debts can be viewed as investments that eventually create value. A few examples are student loans, home loans and business loans. A student loan is considered good because this loan is taken out with the intent that it will increase the future earnings potential of the individual. A home loan is also a good because on average, homes appreciate in value. When the asset purchased with a home loan is paid off, the individual will be left with an asset with an equal or greater value than the original loan itself. So this ads wealth by creating greater net worth. Good debt also has a much lower carrying value than bad debt. The interest is usually less than half that of the bad. This debt also usually has many tax advantages. In short, good debt is used to eventually increase the future wealth of a person.

Understanding the difference to make future debt decisions

Understanding the difference between good and bad debt can significantly help with future decisions about debt. There are also ways to use good debt to eliminate bad debt. For example, if an individual carried a $15,000 credit card balance paying 18% interest and also owned a home that has appreciated in value, it is possible to use the home's equity to pay off the $15,000 credit card balance and eliminate the 18% interest on it and then carry the $15,000 at the lower interest percent of around 6%. This decreases total annual interest costs as well as providing tax advantages. This may not always be an option, but understanding the differences can help in future debt decisions. If there is an option of tackling bad debt vs good debt, it is always better to eliminate the bad debt first. Please know that having too much debt is never good, even if it is good debt, always maintain an reasonable amount of debt.

Find more debt relief solutions by visiting http://www.endthisdebt.com a website that specializes in providing debt help advice as well connecting individuals with debt specialists based on their individual debt situation.

If you need help with your debt and would like to get a free debt consultation please fill out the form here. Free Debt Consultation

If you would like to refinance or obtain a home equity loan and have lenders compete for your business please fill out the form hereFree Home Equity/Refinance Quotes

By Manny Vetti