Category Archives: Finance

Positive Decisions Using Debt Consolidation Programs

If you are similar to most consumers every single day you struggle with the idea of exactly how are you going to payeach of your obligations. This finds you tired, fighting financially and unnerved in regards to specifically how you will be able to handle to pay all of your liabilities. If a problem comes forth and messes up the fragile balance that you have occurring, you comprehend that you could be in a huge crunch. Nevertheless, plenty of shoppers clearly fail to anticipate this. Sadly, the solution is regularly a concept that is so effortless it would simply need a precise moment of time to put into place, but is regularly excluded.

A consolidate debt loan, or bill consolidation credit line is something that could be an enormous help to anyone whom is paying back debt. Without considering whether you are paying off only a few minor accounts, or you are paying back several huge accounts this may be an explination that can really aid you. If you are paying on more than a single account, you will typically paying large sums of interest rates singly. These fees could rapidly eat up the majority of your monthly submissions and increase the amount of time that you are in debt.

By obtaining a combine debt loan you are able to roll all of your bills collectively into a singular periodic payment. This combined with the reduced interest fees that are plausible can spare you as much as 70% every month in your bill submissions. Considering the sum of debt that the usual household is struggling to pay back, this could provide a huge savings. Naturally, this moreover has the benefit of assisting to repair your credit since the debt is paid back, and still saves you a ton of money.

Point blank, this is something that is so easy, however due to the simplicity, it is usually missed. The immense majority of citizens fail to consider all of their choices and typically spend too much for credit. Finding a combined debt credit line you can decrease severely the amount of cash you are sending out each month, yet still handling all of your economic responsibilities. This creates them the best option that you have to repay all of your bills and yet work to keep your finances within boundaries.

In turbulent periods like this with the economy, and also the home market place observing such huge changes, it is highly essential to make certain that you discover a successful method to cultivate entire domination in regards to your finances. This generally requires that you need to have a capacity to be certain that you can demand the time and effort to be sure that your cash is helping you as much as possible. Frankly allowing your cash to be eated up in interest charges is not a highly adequate benefit. To free yourself from debt you need to break free from just paying on interest charges.

There is honestly no way that sending only interest charges could give you the benefits that you desire for your credit. Taking the effort to conscientiously discover your choices and ensure that you select the right decision possible can go a long way to be certain that you hold your budget under control, and know that you can still submit all of your liabilities and hold your head out of water in even drowning debt.

Debt Collection – Your Frequently Asked Questions Answered

Here are your most Frequently Asked Questions about debt collection and the answers to them. The responses are based on the rights included in the Fair Debt Collection Practices Act (FDCPA).

Is my debt collector allowed to call at any time? No. Debt collectors are only allowed to call between 8am to 9pm. Calling before 8am or after 9pm is prohibited unless with your consent.

Is it okay to leave messages on my answering machine? A collector can leave his name and contact number on your answering machine. However, he should not discuss any information about your debt unless you’re available to take the call. If you don’t want your debt collector to leave messages when you’re not home, you can tell them to stop.

Is it okay to submit partial payments? Some debt collectors may refuse to accept partial payments. However, if you don’t have the money to pay your entire debt, send in your partial payments. If your debt collectors still demands a lump sum and sends your money back, keep proof of your payments for references. In case your debt collector files a law suit against you, this would prove that you never attempt to default on your debts.

Can a debt collector threaten you about a legal law case or repossession? There are debt collectors who may resort to false threats to impose fear on a borrower. If such claims are found to be untrue, you can report them for violation of the FDCPA.

Should you put up with verbal abuse or harassment? Certainly not! Even if you owe a lender, you still deserve to be treated with dignity and respect. Debt collectors should never use abusive languages, foul words, or any form of harassment to force anyone to pay.

Can a debt collector continue to contact you after you told them not to? If you want debt collection activities to stop, you can send a letter to your debt collector and inform them of your wishes. However, keep in mind that stopping an agency’s debt collection activities does not exempt you from your responsibility to make repayment. Even if the collection has been stopped, you should take the initiative to submit your payments at the soonest possible time.

What can I do if a lender collects debts I don’t owe? Under the FDCPA, consumers have the right to dispute billing charges if they think it’s incorrect. As soon as you received your bill, send a dispute letter (via registered mail) to your creditor. They should immediately stop with their collection attempts and begin an investigation about the issue. A creditor has 30 days to set the matters straight. Meanwhile, debt collection should be put to a stop.

Remember, if your creditor or debt collector is guilty of a violation of the rights listed in the FDCPA, don’t hesitate to report them to the Attorney General’s Office of your State and file a complaint to the Federal Trade Commission (FTC).

How Chapter 11 Saved the US Economy

It’s no surprise that Harvard Business School professor Stuart C. Gilson gave an enthusiastic thumbs-up to the recently announced $11 billion US Airways/American Airlines merger. The deal, which came after American’s parent company, AMR Corporation, declared bankruptcy in November 2011, will allow the airline to work with the court to restructure and unload a significant amount of its debt, giving an iconic company “a second bite of the apple,” says Gilson.

An unabashed advocate of Chapter 11 and debt restructuring, Gilson is an expert in the legal innovations and institutional changes that have revolutionized their use in practice. He contends that both serve the US economy by helping troubled companies stay viable by giving them time to find new financing, renegotiate unfavorable leases and supply contracts, or expedite processes for selling off assets.

Despite these benefits, he says that Chapter 11 has suffered an image problem.

“When I first started in this area, I faced challenges selling this to students,” says Gilson, the Steven R. Fenster Professor of Business Administration. “Bankruptcy was seen as the study of dead or dying companies.”

The truth is anything but— “it’s about reviving companies,” says Gilson, author of the 2010 book Creating Value through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, and Breakups .

Taking a look at the 2008 financial crisis, Gilson says that restructuring and Chapter 11 played a heroic role in helping the country rebound. He outlines these ideas in Coming Through in a Crisis: How Chapter 11 and the Debt Restructuring Industry Are Helping to Revive the US Economy , published in the fall 2012 Journal of Applied Corporate Finance.

During the crisis, the “amount of debt that needed to be restructured posed a seemingly insurmountable challenge,” he writes in the article. At one point, a whopping “$3.5 trillion of corporate debt was distressed or in default. [Between] 2008 and 2009, $1.8 trillion worth of public company assets entered Chapter 11 bankruptcy protection— almost 20 times more than during the prior two years.”

A significant portion of the private equity industry, he says, was “widely believed to be on the verge of extinction.”

Instead, in a relatively short time, much of the corporate debt that defaulted during the financial crisis has been managed down, mass liquidations have been averted, and corporate profits, balance sheets, and values have rebounded with remarkable speed, he says. Even Lehman Brothers, the largest and most complicated bankruptcy in US history, emerged from Chapter 11 with a confirmed plan of reorganization in only three and a half years.

Because of Chapter 11 and the expertise of US restructuring professionals who advise troubled companies, Gilson says America’s economic recovery has been far speedier than Europe’s, where bankruptcy laws tend to favor immediate payback of creditors.

“Many countries around the world have bankruptcy laws that primarily seek to liquidate distressed companies,” he says. “The emphasis is on reimbursing creditors, or protecting particular stakeholders such as employees, rather than doing what’s necessary to rehabilitate the business.”

According to Gilson, this provides compelling evidence that “US bankruptcy laws and restructuring practices have played a critical role in driving the economic recovery and restoring the competitiveness of US companies.”

Despite much criticism of Chapter 11 as too costly, slow, or inequitable, Gilson says managers and financiers working with distressed companies in Chapter 11 have “evolved and adapted to deal with large, complex cases.”

During the 1970s and ’80s, Drexel Burnham Lambert’s Michael Milken carved out new ways to restructure large amounts of publicly traded debt. Gilson’s research suggests that the total costs associated with Milken’s method of reorganizing troubled companies were as little as one-tenth of those associated with a conventional corporate bankruptcy.

In the post-Milken era, Gilson points to a hybrid approach that has blurred the line between Chapter 11 and restructuring, offering alternatives to “free-fall” bankruptcy. Prepackaged and prenegotiated bankruptcy combine the most attractive features of Chapter 11 and out-of-court restructuring.

In prepackaged bankruptcy, companies negotiate restructuring plans with creditors, gathering formal votes prior to filing for bankruptcy so they can enter Chapter 11 with a reorganization plan and disclosure statement already in place. (In 2009, “prepackaged bankruptcies accounted for $124 billion corporate assets filing for Chapter 11, including CIT Group, Six Flags, Lear Corp., and Charter Communications,” Gilson writes.)

In a prenegotiated Chapter 11, firms don’t formally solicit votes but rather ask key creditors to sign a “lock-up” agreement promising to vote for the plan once the firm is in Chapter 11.

The advantage of either type of filing is that it allows companies to avoid steep costs associated with spending months in bankruptcy court and to take advantage of Chapter 11’s “more lenient voting rules, minimizing the holdout problem that can frustrate attempts to restructure out of court,” Gilson writes.

Companies also increasingly using Chapter 11 to expeditiously sell off assets. Section 363 of the US Bankruptcy Code allows a bankrupt company to sell assets in a competitive auction overseen by the court; assets purchased this way are also less vulnerable to subsequent legal challenges. This option has always existed, Gilson says, but it’s been used more often in recent years so asset-rich companies that are cash poor can raise money. In 2001, American Airlines acquired the assets of bankrupt TWA using this approach. More recently, Section 363 sales played a key role in some of the largest and most complex bankruptcies of the financial crisis, including General Motors and Lehman Brothers.

Chapter 11 gives troubled companies other valuable options for raising cash, Gilson says. While operating in Chapter 11, a company is freed from paying interest on its pre-bankruptcy debts. Section 365 of the Bankruptcy Code allows the company to reject unprofitable leases. And through so-called debtor-in-possession (DIP) financing, new lenders are given priority in the capital structure. This is a critical incentive because it spurs banks and other creditors to lend to companies in Chapter 11 by giving them senior status, effectively letting them stand in front of pre-existing creditors. (American did not need such debtor-in-possession financing. United and Delta together raised almost $3.5 billion in DIP financing in their bankruptcies.)

Some argue that putting earlier investors at the back of the line is unfair, but Gilson says that giving a distressed company access to new cash can increase its chances of paying back more investors overall. “It’s about increasing the size of the pie available to all the firm’s stakeholders,” he says.

But Chapter 11 isn’t the answer for all companies, Gilson says.

It might yield big benefits for commercial airlines and retail chains, which typically lease a large fraction of their assets, and for steel- and automakers that have large unionized workforces, which will give them greater leverage to renegotiate collective bargaining agreements. But Chapter 11 will be less beneficial for companies where the “stigma” of bankruptcy is apt to scare off customers and suppliers, or for banks and other financial firms that have large liabilities under derivatives contracts, which, unlike most debts, are not frozen by a bankruptcy filing.

Realogy Corp., featured in Gilson’s article, is an example of a company that chose to deal with its financial problems outside of bankruptcy court.

One of the world’s largest real-estate companies, Realogy was acquired in the spring of 2007 by the private equity firm Apollo Management in a $7 billion leveraged buyout. The buyout came at the peak of the US housing boom, and the company was struggling to manage its $6 billion debt load. As the housing and mortgage market collapsed, Realogy scrapped to pay more than $600 million in annual interest. With a total debt of $6.6 billion in 2010, the company decided to restructure out of court instead of filing for Chapter 11 for several reasons, Gilson says.

First, most of Realogy’s operating cash flows were from franchise agreements with local real-estate agencies, and a Chapter 11 filing could have critically damaged relations with the agencies. Second, its workforce was not unionized. Finally, the appearance of “giving up” through bankruptcy could have sent a signal to Apollo’s limited partners—and to its competitors—that the firm wasn’t “willing to support its less successful investments, undermining future fund-raising efforts or its ability to restructure other portfolio companies,” Gilson writes.

While the jury is still out on the restructuring, Gilson says Realogy is seeking opportunities to grow the business, and “operating improvements made during the restructuring have positioned the company to take full advantage of any recovery in real-estate values

Personal Loans – Items You Ought To Understand

The internet is an example of the most useful locations to discover data and to coach yourself. It is a great asset if you are trying to instruct yourself in regards to personal credit lines. There are a legion of pages that explain the types of loans that you are capable to obtain in addition to terminology pertaining to all of the phrases that are used in speaking of a personal loan. If you are drawn to comparing private credit line fees every bit the data you could possibly need is right to your fingers.

You could discover tons about the swindles and complications that are related to personal lines of credit by educating yourself by doing homework on the internet. You could reach the BBB online to assist you research a lender in regards to any issues that they may have had with any people in the past. This data can be a great asset by preventing you from getting working with a company who may have a past of cheating borrowers out of their cash.

There are many web pages that provide useful instruments for understanding personal loans. This data could be very inclusive and most pages are extremely wisely structured. The majority of pages possess two areas that enable you to review differing types of private credit lines. One area is for unsecured private loans while the other area is for guaranteed personal lines of credit.

There are a swarm of financial instruments that permit you to insert differing sums of cash that you owe on your various lines of credit as well as all of their respective finance rates; this tool then provides you the complete amount you will have to remit in order to repay this debt. This is very useful in regards to choosing if getting a personal line of credit to consolidate all of your debt is a smart idea or not.

An added fabulous tool you can find on the world wide web is one that would assist you find financers whom offer private lines of credit that meet your economic pattern. This is great due to you will possess a substantially higher likelihood to have your personal credit line accepted from a company that fits your profile as opposed to a chance lender. Some of the information you might be asked about is your credit score, employment history, the sum of the loan you are looking for, the term of a advance you are looking for, the reason for the credit line you are getting and what kind of collateral you have available to back up for the loan.

You could discover a lot of these tools for free on the internet. Do not squander your time and money spending for these tools since you could quickly get it for free. If you possess any questions about anything you discover on the internet do not waver to talk to someone at a financial lender. This is a really essential consideration to complete if you find opposing information within the internet as they will be capable to settle the misunderstanding that you possess regarding the opposing information. In addition to searching for data in regards to personal loans you can as well look up methods to better finance your cash and how to create your finances better so you possess a great financial history and a greater credit score in the future.

Checklist for Those on Debt Management Plan

When faced with serious debt problems, people run to credit counseling agencies for help. True, there are many reputable non-profit organizations that offer credit counseling and help on financial management. However, there are also many organizations that pretend to offer credit counseling but charge their clients with unreasonably high fees for their services.

The Federal Trade Commission (FTC) warns the public against such credit counseling agencies that claim to be non-profit but asks for unreasonable payment from their clients who are already swamped in debt. Some of these fake credit counseling agencies use deceptive tactics on customers who do not have any idea that they’re dealing with the wrong credit counseling agency.

What is a Debt Management Plan?

For instance, some credit counselors may advice consumers to enroll into a debt management plan. With a Debt Management Plan, the consumer will be submitting a monthly payment to the credit counseling agency. The agency in turn, will divide the payment and distribute it to different creditors. It is true that creditors can give lower interest rates and even waive penalties for those who are paying through a debt management plan.

Where does your money go to?

The big question is: Is your credit counseling agency submitting your money to your creditors faithfully? Some fraudulent organizations have been proven to use consumers’ money on illegal purposes. Thus, before making any payment to your credit counseling organization, make sure that your creditors have agreed to accept your payment using a debt management agency. Also, it is crucial that you examine your monthly statement of accounts regularly so that you can be sure that your creditors are indeed receiving your payments promptly.

Timely Payments

Another important thing to consider is that you must submit your payments to the agency on time. In case you won’t be able to make it on the scheduled payment, inform your credit counseling agency right away. Keep in mind that creditors have given you privileges of waived fees and lower rates because you are enrolled in a Debt Management Plan. These privileges can be taken away if you miss another deadline of payment. Late payments will also be reflected on your credit report and because you’re trying to rebuild your credit, one late payment can ruin the progress that you’ve already started.

What if the credit counseling agency that handles your debts goes out of business?

Here are some actions that you must do without delay:

• If you’re paying automatically through your account, call your bank immediately and stop the payments.

• Inform your creditors that the credit counseling agency who manages your debts has shut down. Request if your creditors can still continue to give you lower rates even without a debt management plan.

• Submit your payments directly to your creditors.

• Check your credit report. Examine carefully if there was any late or missing payment while you were on the Debt Management Plan. If the delays in payments were due to the fact that your credit counseling agency is going out of business, call your creditors and inform them.

Get the needs turn satisfied by simply enrolling

When an employee earns for his future, then there is no problem. But not every employee turns saving it for his future. Saving for one’s future is possible, when he unconsciously or unknowingly save a part of what he earns. Saving a portion of what an employee earns is possible, nowadays. However, the option of saving is possible when there are certain rules posed in front of the companies. Whatever can be the company or its production, yet the portion of a money through his earning can possibly saved for one’s future. This is what the government does for every employee considering his future along with his family members. What does the employee do, after he earns? He may possibly involve in making the budget in order to make the expenses turn settled with what he has earned. Settlements in the sense, it denotes the expenses of a month. So, it is very much clear that an employee hardly find no bucks to save, in the end. He simply tries to make the both ends meet.

Remedies for one’s grief’s:

In order to put remedies to his problems considering the family of the employee, the government in UK enables the workers to avail the pension scheme. Pension scheme is possible, only when the worker follows or satisfies certain aspects. There are some laws posed by the governments of UK. Those laws are to be followed strictly by the companies, in order to make him avail the benefits at his end. For such a pension scheme to be availed, the employee must enrol his name for the auto enrolment. This option is followed by the government and it differs with nation to nation. When an employee successfully completes some time period, then he can turn eligible to avail it for his later use. With this amount that the employee turns offering to the pension scheme from his earning, he is deemed to receive the pension in his later days once he retires. Retirement is applicable to all employees. Hence, this option of saving too turns applicable to all employees those who have enrolled their names as well as turn eligible by satisfying the conditions which makes him qualifying.

Qualifying options:

Qualifying options can make the employee avail it for his use. This auto enrolment turns much essential for those who turn above 22 years of age. This enrolment can help the employee to avail the money for his later use simply. Simply, the pension turns eligible to those who turn qualified, as said earlier. With this pension scheme, an employee can turn happy by getting all his needs and requirements met, even after he retires from his occupation. However the nature of the job is, the employee can avail such pension scheme when he turns eligible to apply by enrolling his name. An employee never can find amount to save for his future, when he doesn’t invest on pension’s scheme. The employee’s contribution is 8% and employer’s part is 3% minimum. Through this option, an employee can get all that he desires so.

Insider Car Insurance Tips You Cannot Afford To Ignore

The costs of running a car are increasing all the time so it is more important than ever to start cutting back on your insurance premiums.

Insider Tips
Insurance is a competitive market. Providers are in the business to make money and deals are not always as great as they first look. Understanding the rules of the game can help you to make a more informed choice about your car insurance. Before you start looking for a policy here are some important insider tips that could save you a lot of money:

• Credit Records – many people don’t realise that their credit record could make a difference to their car insurance premiums. However industry studies have shown there is a direct link between consumer credit scores and car insurance premiums. If you have a poor credit score your premiums will typically be higher. This is because statistically you are more likely to make a claim against your insurance or fall behind with your payments. Having a poor credit score can increase your car insurance ‘risk factor’. This means it is important for your overall financial health to keep up with your credit accounts and try to maintain a good credit score.

• Car Type – the model of car you own affects your car insurance premiums. Insurance companies have a rating system for each make and model of car. This is based on data gathered from national safety, accident and theft reports. It is worth checking how much it costs to insure a car before you buy. You could make a significant saving on your car insurance premiums by simply opting for a car in one of the lower ratings bracket.

• Pay Upfront – one important insider tip that can save a lot of people money on their car insurance is to pay upfront. Insurers can charge you a lot more for the privilege of spreading your costs out across the year in monthly or quarterly payments. Another benefit of paying upfront for the whole year is that you will not have to worry about any missed payments. This is a good idea if you have a lot of credit product repayments to manage every month.

• Minor Claims – try to avoid making too many small claims on your car insurance if you can. Minor incidences costing under £1,000 can soon add up on your insurance record and send your premiums soaring. You will save money overall if you pay out for small claims yourself and save your insurance for when it is really needed.

• Modifications – you must inform your insurance company of any modifications to your car. This can include something as simple as fitting alloy wheels. If you fail to report modifications to your insurer this could invalidate any claims later on. Modifications can push premiums up so think twice whether they are really necessary before you start upgrading your vehicle.

Can I Get Debt Collectors Off My Back

Constant calls from debt collectors can surely bring stress to anyone. When a debt has long been past its due, a creditor may hire a debt collection agency to take charge with its collection. Nevertheless, some debt collection agencies may resort to harassment or unfair debt collection practices just to force a consumer to pay. If you find yourself in the same situation, what can you do? Is it possible to get debt collectors off your back? Consider the following advice:

1. Fight for your rights. The government has set aside regulations for debt collection agencies, specifically with regards to collecting debts. These regulations are all included in the Fair Debt Collection Practices Act which can be found at the Federal Trade Commission’s website. Know your consumer rights and protect them.

2. Talk to your debt collectors. Hiding from your debt collectors would not solve anything. In fact, hiding or ignoring your debt collector’s attempts to contact you can only put you in a bad light. The best way to deal with debt is to respond to your collectors. Even if you can’t pay off your debts right away, explain to your debt collectors why you’re not able to submit your payment and try to come up with an arrangement that works. Show your collectors that you’re sincere about your obligations and that you have no intention of abandoning your debts.

3. Know who’s collecting your debts. If you creditor has assigned a debt collection agency, you should be made aware of it. A debt collection company must first send you a written document containing the status of your debts and your debt collection rights.

4. Practice your right to dispute. Are all the charges in your account accurate? Carefully examine your billing statements and receipts. If there are errors, don’t hesitate to dispute them by sending a letter of dispute to your creditor. Take note that you only have 30 days to dispute charges so make it a habit to check your bills regularly.

5. Keep records of your correspondence with your debt collector. You should keep all receipts, debt collection letters, bills and other documents for your future reference. When speaking with a debt collector over the phone, jot down the name of the person you’re speaking with and the date when the conversation took place. You can also give notice that you’ll be recording the phone call for your reference.

6. Request your debt collector to stop collecting. Yes, you can actually request to a creditor or debt collector to stop contacting you about your debts by sending a letter. Under the law, creditors and debt collectors should respect this request. Nevertheless, this does not discharge you from your responsibility to pay for your debts.

7. Let your debt collector know the best time to contact you. Let your debt collector know the best time to call you. If a debt collection agency still calls you up at inconvenient hours, you can file a complaint to your State Attorney General’s office.

Essential Facts Regarding Payday Loans

Payday lenders typically dispense short term loans in small amounts, usually to consumers who need quick money for unexpected bills or emergencies. Loans of this type are usually processed in a timely manner, unlike conventional loans that often take as long as several months to finalize. For this reason, such loans are advantageous to those who need quick cash.


Numerous individuals find themselves facing financial difficulties at least once in their life. This is particularly true in today’s current economy. Fortunately, payday loans provide a certain level of stress relief to consumers who find themselves in a temporary financial crisis.


When one pursues such an arrangement, the individual is typically asked to offer a post dated check totaling the amount of the loan, including interest and processing fees. The lender then cashes the check on the appropriate day, at which time the loan is considered paid in full. Alternatively, the borrower sometimes has the option of giving the lending institution permission to withdraw repayment from his or her bank account on a specific date.


The majority of payday lenders require that the borrower produce valid identification and proof of gainful employment. Additionally, the borrower will likely be asked to show that his or her bank account is not overdrawn. In most cases, providers of payday loans do not run a credit check on the applicant.

Most people would agree that such loans are convenient; however, it is essential for borrowers to be responsible with regard to loans of any type. These fast loans should never be used to splurge on nonessential items or to bail another person out of financial difficulties.

How to Best Use Your Debt Consolidation Opportunities

Sometimes, even when we try our best to manage our finances, debt problems can get in the way. Unexpected circumstances such as sickness, loss of job, divorce, or business failure can quickly put us in a bad debt situation. However, being in debt doesn’t have to be a hopeless situation. In this article, we’ll discuss how you can flee from debt through different types of consolidation.

Credit Counseling

Some credit counseling agencies would recommend a debt consolidation program for consumers with extreme debts. Finding a reliable credit counseling agency should give you the assistance you need in handling your debt problem. An experienced credit counselor should give practical and efficient advice on how you can create a repayment plan, avoid incurring new debts, and prioritize your repayment.

Debt Consolidation Loan

One way to consolidate debts is by obtaining a loan. The money loaned would be used to pay all your existing debts from different creditors. In turn, you’ll be subjected with only one lender – your debt consolidation company. Thus, the stress and pressure of dealing with different creditors is instantly eliminated. Furthermore, by consolidating debts into a single account, you won’t have to pay multiple interest rates so you can save more and use the money for repayment.

Debt Repayment Representative

A debt repayment agency can negotiate with your lenders to reduce your debts and modify your payment terms. Each month, you’ll submit your payments to your debt repayment agency- who in turn, would distribute your payments to the appropriate lenders. Nevertheless, it’s very important to make sure that you’re dealing with a reliable company and that all your payments are submitted accordingly.

Credit Repair Clinics

Watch out for agencies or even non-profit groups who promise to give an instant “fix” or instant “repair” to your debt problems. Remember that the only way you can get over your debt problem is by paying off your debts. If the charges in your account are accurate, there’s no way an agency can erase or delete these charges from your credit report. Even worse, these agencies who disguise themselves as “credit repair groups” may use your personal information against you.

Debt Settlement

A credit counseling agency may also negotiate with your creditors through debt settlement. Debt settlement can reduce your debts from 50% to 60% or even more. However, if your creditor agrees with a settlement, you are expected to submit your payment in full at the soonest possible time.