Consumer Credit Card Debt Relief Scams! Are They Real?

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 USCA. My company was founded by an attorney who has highly trained debt negotiators who know the business inside and out. 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 and request to speak with me. 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.

Stephen Bis is an insightful author on finances and debt http://EzineArticles.com/?expert=Stephen_Bis. If you would like to know about a new and secret community that is committed to getting you out of debt! Check it out now Get Out of Debt Now

A Consumer Credit Report

The Consumer Credit Act regulates consumer credit that has contributed much in attaining America’s present financial status. In the U.S, you can purchase anything you want, provided you agree to repay the loan amount with interest. Among the households that hold balances on credit cards, the average amount kept is approximately 2,000 dollars. The amount does not include the added financial burdens of mortgages, rents and car loans. Economists find that Americans owe around 2 trillion dollars in credit card and other debts.

In the UK, credit card issuers were bringing their defaulting customers to court for not paying their debts. On looking into the legalities of the cases it was found that several card issuers did not comply with the Consumer credit Act of 1974 (CCA). Due to this, the cases backfired on the card companies whose non compliant debt agreements were cancelled and customers have been able to walk away without paying a penny.

New York consumer credit counseling services is one of the most appealing, valuable and short-term solutions to anyone who wishes to secure a debt free future. These agencies also help you consolidate your debt, set up a repayment plan, and make arrangements to let you keep part of your income. The agencies also “teach” you to stay out of debt in future situations.

Did you know that there are currently over 400 consumer credit counseling agencies operating in the US alone? If you conduct a search on the internet for consumer credit counseling services you will find a huge number of organisations advertising claiming to be able to save you huge amounts on your unsecured debt and have you debt free within a period of time. The big question is, are their services worth it to the average consumer who is struggling with their debt?

The government has injected billions of dollars into the financial system to get the economy regain its stability. This has assisted a lot in this recession period especially when the economy is moving towards the depression. With this credit reforms, individuals standing on the verge of insolvency are again capable to get back to their normal life by utilizing the advantages of the stimulus bill.

Consumer credit is really nothing new. It existed in an informal fashion in the earlier days, where your neighborhood grocer would give you your requirements and you paid up at a particular time. That was based on his instinct of what you were and how you behaved.

This article has been written by the author, Tiens. Should you require any more consumer credit act please visit his consumer credit card resources!

What Could Cause Consumer Credit rating Therapy and also Just how It Aids

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What Could Result in Non-mortgage consumer debt Therapy as well as Exactly how It Helps
Non-mortgage consumer debt therapy services provide much-needed help to those that are having monetary problems. Often this was sped up by an unexpected loss of income for which they were not really prepared. Easy temptation as well as very easy credit score is tough for many to get over. This is just one of the factors a person may discover themselves in insurmountable debt.

Occasionally the urge to not dissatisfy good friends as well as loved ones is excruciating, as well as people will join occasions and also gift-giving that they can not manage. Others fear that their standing in the community will certainly be stained if they don’t forecast the outside icons of success.

Parents are constantly being goaded by their youngsters into purchasing points that they don’t require because other children have them, or it’s the most recent plaything or gadget being promoted to them. In numerous family members, taking the ritual summer trip to a faraway resort is considered as a necessity, and can not think of living without it.

< br/ > If you came under any of these catches, don’t stress, there are things you could do. The very first step is to obtain in touch with Credit rating Counseling Solutions in your location. A non-mortgage consumer debt counseling solution could help you with the complying with.

Analyze bills that are unpaid

Something Non-mortgage consumer debt Therapy does is try to exercise some payment plan that will eventually pay off the past due amount, as well as the consumer will certainly once more be present. Therefore the consumer will certainly pay the credit rating counseling representative a taken care of regular monthly quantity, as well as the agent will separate that amongst the past due expenses, as well as pay them.

< br/ > Assist in intending a practical spending plan

One more service that Non-mortgage consumer debt Therapy Services give is in order to help you identify an approximate figure for living costs, and afterwards motivating you to invest whatever is left will on driving down your bills. This process can also involve recommending methods costs can be decreased or gotten rid of.

Suggest how you can conserve for unforeseen emergencies

Unexpected expenses can actually derail your settlement initiatives as well as own you back into financial obligation. These services can aid combat this by revealing you the very best method to start a regular or monthly savings prepare that will certainly be offered when unanticipated expenditures turn up.

These services as well as more offered at Customer Credit history Therapy Agencies

Depending on your situation you could get these services or others that are better suited to your demands. If you’re prepared to start repaying your financial debt call a Customer Debt Counseling Company today!

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Consumer Credit Counseling In Austin, Texas

Credit rating counseling in Austin, Texas is fundamentally small not the same as financial support services in any various other city or state, expect that these credit counseling companies are created to meet with the needs of men and women living especially in Austin and its own surrounding urban centers. Austin is the fourth largest town in Tx and is the capitol of the great southern condition.

As with many credit counseling companies, consumer credit counseling in Austin provides some free or inexpensive assistance for your credit issues. Credit issues are due to debt, late payments, no repayments, or other core reasons. Credit counseling in Austin can be obtained to assist you just take that first rung on the ladder to financial freedom.

What’s credit and Debt?

to comprehend what consumer credit guidance in Austin is focused on, you must first understand what credit rating is therefore the debt that may incorporate it. Unsecured debt is sustained if you have spent additional money than you really can afford on products that wont grow in worth. Typically, unsecured debt includes things such as personal credit card debt, regular debts that have perhaps not been compensated, and private financial loans.

This meaning are expanded to include extra items including mortgages, mortgages, and car financing that you are unable to spend and possess built-up into debt. All these things negatively impact your credit score, therefore any debt you have got may cause your credit rating to drop. This is when consumer credit counseling Austin becomes a good alternative.

What’s credit rating guidance?

Now that you have some comprehension of consumer credit and debt that accompanies it, the solutions made available from credit rating counseling in Austin will be more apparent. If you’re in severe debt, which instantly means that your credit has-been affected, it is best to seek monetary assistance. This help could can be found in lots of kinds. Some credit guidance services in Austin come through phone sessions, assistance over the internet, or face to face conferences. In spite of how you obtain economic guidance, usually you will end up taught similar things.

The very first thing that these guidance solutions in Austin will coach you on is how-to assess all of your finances. This includes determining how much money you are making month-to-month and contrasting that to exactly how much you might be investing. If you’re investing more than you earn, maybe you are currently indebted. If so, that leads to another process you will learn, which is the control of budgeting.

Budgeting is an essential part of financial obligation administration, and any consumer credit guidance business in Austin will coach you on how to budget correctly. These financial counselors also give you the greatest alternatives for cutting your debt and fixing your credit rating. That’s the advantageous asset of pursuing economic assistance, to rise above your credit and debt issues.

Therefore, if you’re in Austin, Tx and you’re experiencing monetary problems, you’ll look for the help of consumer credit guidance in Austin and have the tools and professional understanding to assist you manage the debt effortlessly.

For financial obligation counseling info, see http://www.debt-counseling-assistance.com, for the debt requirements .

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