Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track
How can you settle a credit card debt without using a "credit counselor?"Credit
counselors don't actually settle debt, but it's a common misconception
the general public shares. How many of us really know how this credit
and debt stuff works?FYI: "credit counselors" do not settle debt. They
often are able to reduce interest rates, and collect the full balance
through a debt management plan where you pay them one single payment
each month while they pay your creditors for you (hopefully), in full.There's a lot of information floating around about this; some good info mixed with some dangerously incomplete info...Here's a quick step-by-step guide for you to accomplish your goal of settling credit card debt yourself:First, let's clear up a few things. Then I have three "keys" for you to follow...
- Considerable time is required to document, communicate, negotiate and follow up to achieve these results.
- There are many strategies and factors to consider that impact results.
- There are plenty of pitfalls to avoid.
- Settling yourself for 2/3rds can be a reasonable goal.
The
general consensus of industry professionals and insiders I know tell me
overall, "doing-it-yourself," consumers settle credit card debt on
their own for about 75% on average. My close friends who are pros and
found themselves in financial hardship recently, have achieved 10%
settlements on many of their own personal credit card accounts -- but
this is only because they were willing to go the extreme distance and knew exactly what they were doing. These folks are the exception.Many people are unsuccessful getting
any
reduction of their debt at all on their own, without even any relief
from double-digit interest rates. These folks remain stuck on the
exhausting treadmill of slavery to debt and money.Professional
negotiators (including attorneys and arbitrators) average about 50%
settlements (some much better than others), and usually charge about
15% in fees (may vary by program type), putting the total cost to use a
professional debt settlement service at an average of about 65% or less
of your total unsecured debt.Creditors DO give professionals
representing a large volume of debt "special treatment" because large
professional negotiators are the "bread and butter" for most
collectors. They deal with each other every day. When a professional
debt settlement negotiator comes to the table representing millions of
dollars of client debt held with a single major creditor, it creates
serious leverage for the consumers represented by the professional.
Creditors are willing to settle for substantially less than individuals
would normally be able to achieve on their own.Still, I've
helped many folks who have a knack for communicating, negotiating,
documenting and following up (the four critical skills you'll need to
do this) to get settlements as low as 45-60% regularly.Make sure
you're ready to do all the communicating, negotiating, documenting and
following up required all on your own before you start.AND if you are...Here are the keys to help you accomplish this yourself:KEY # 1) The accounts must be delinquent.Creditors
will not settle for anything less than the full balance until your
accounts are seriously past due, usually 180 days + after "charging
off." This is because when creditors "charge off" an account (an
accounting entry), they are taking a tax benefit on the account by
writing it off as a loss. This de-values the account, and it is no
longer worth the full balance owed. In fact, the normal course of
business is to sell the "bad debt" to a third party debt collector.STARTLING
FACT: In 2006, "bad debt" was sold to collectors for an average of
$0.034 cents on the dollar. That's 3.4%! Keep this in mind. This is
exactly WHY debt settlement works so well, because it's a better deal
to the creditor or collector than any other option, such as a lawsuit,
collections or bankruptcy.With the economy getting worse and bad
debt expected to more than double in 2009, expect the value of bad debt
to drop, which means better settlements and more savings for you!KEY # 2) Documentation BEATS Conversation, every time.DO NOT make any payments by phone.Collectors will almost always ask for a check by phone. Say this:"Unfortunately
I'm unable to make a payment at this time; and am hoping to bring
resolution to this matter as soon as possible. I understand you want me
to make a payment right now, but that just isn't possible. I will have
$_________ (state an amount that's roughly 35-50% of your balance, not
a percentage but a round number) soon and want to settle at least one
of my accounts with whoever will give me the best deal. Can you please
send me an offer in writing?"HINT: You can do this initially or
in response to a settlement offer that's too high... Write a "Hardship
Letter." Hand write or type up a letter describing your situation, your
inability to pay and include information such as, divorce, medical
issues, loss of job, disability or reduced income. Any information
regarding your personal hardship will help your negotiation, so don't
hold back. Send this letter along with a request to settle the account
for $_______ (again, a random amount roughly equal to 35-50% of your
current balance).Talking sincerely about your financial
hardship, lack of income and inability to pay when requesting a
settlement offer over the phone can help a lot. Think sob story, but be
sincere. Still, in this game... documentation beats conversation, every
time.Track everything (documentation)... who you speak to, their
name, phone number and extension, date and time. Keep everything
organized in a folder, easily accessible.NOTE: Certain creditors
such as CitiBank, Discover, Kohls, Target and Chase if you live in FL,
NY or OH will not settle for such small amounts. You should accept 60%
to 75% in these situation and consider it good. All are more likely to
pursue legal action as well.KEY # 3) Use certified mail with return receipt.Once
you get an acceptable settlement offer in writing, send a check. But
first... Write your account number for the account you are settling on
the check and in the memo write "FOR PAYMENT IN FULL." Send the check
along with a COPY of the settlement offer by certified mail with return
receipt.Once the account is paid to a zero balance, you can do
the normal process of credit repair and quite possibly have the account
removed through disputing it and requesting verification.
"Do-It-Yourself" Debt Settlement is like doing your own taxes or dental work!Sure,
it's possible. Some people are naturally good at it and even enjoy it,
but most of us would rather leave it to a professional to get it done
right the first time.In response to additional requests, I've sorted through all the "Do It Yourself " products on the market, thoroughly.If
you want to do debt settlement on your own, you certainly can. It's
like changing your own motor oil... while most people don't want to get
their hands dirty, you certainly can do it yourself.It does help
(big time) to have expert guidance instead of learning on your own
through trial and error (expensive and stressful). The cost of these
programs should be dwarfed by the additional savings you'll realize by
"doing right" the first time.
I highly recommend these top quality "DIY"Debt Settlement Resource:DIY Debt Settlement CoachingThis sums up the process of settling
your own debt. A professional debt settlement program makes a lot of
sense if the cost to you is the same or less than doing-it-yourself and
you get to let the pros do most of the work for you.Of course, hiring the right professional is a different discussion. However,
watch out
because there are only a few "good ones" out there. There are many
unscrupulous salespeople who would lead you astray for their own gain.No matter what, make it a priority to be debt free ASAP, and stick to it. Nothing feels as good as freedom after you've been a slave!
How,Can,Settle,Credit,Card,Deb