Debt Counseling Facts

By Henry Smith

If you need help in regaining control of your finances and budget then debt counseling is definitely the way to go. Financial worries can cause stress and strain on anyone, and if it happens to you, assistance will definitely be needed.

A good quality financial debt counselor can offer financial aid for households who have found themselves struggling financially. They are able to offer you several things including spending budget assistance, personal bankruptcy counseling, community programs and all types of other useful solutions to aid you in getting your financial situation back in line.

Here are some areas in which a good debt counseling plan can help you:

1) They can help you get your debt paid in as little as 5 years.2) Help you develop a budget that you can work with and stick to.3) Help you by counseling you on finances all the way to financial freedom.4) They can help you stop fees for over limits and late fees.5) They can also assist you in getting your interest rates dropped.

These are just some of the many benefits you can get from a decent debt counselor. When you elect to call a debt counselor you need to be straight up and sincere concerning your present financial circumstances. Additionally, you will have to supply them with all the appropriate details and documents that they may require to create a workable program to aid you in getting out from underneath the pressures of financial debt.

They are going to obviously recommend possibilities that fit your own specific requirements in financial terms. They are going to in addition, provide you with informative resources that will help you on your quest to a debt free lifestyle as well. You should realize that there are actually all sorts of credit counseling organizations however they might not be the very best one on your specific scenario. Understanding which to select and what to consider is very critical within this entire process.

Your main goal would be to do your research and to thoroughly investigate your alternatives. It is possible to quickly do this on the web. It is usually smart to investigate the various agencies and consult family or good friends for any word-of-mouth that they may have. Debts can be extremely stress filled and a worry and you'll need to have all the moral support available.

The consultants at whatever organization you decide on must be qualified and certified. In addition, it's smart to select a company which has been in operation for not less than 7 years. If you undertake most of these things you will find your path on the road to economic freedom in no time at all.

About the Author:

I am a blog writer who is currently writing content on a variety of Debt Reduction subjects which includes Debt reduction tips and money management tips. I run a Debt Reduction website and Debt Counseling discussion forum with the aspiration that it will help give effective info with other people who need insurance. The most recent report on the web site: Debt Counseling Facts.

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Debt Dispute Letter

By Allan Henry

Often alleged debt must be disputed to ensure that you, as the consumer, is being treated fairly. The best way to do this is with a debt dispute letter. The two most common types of debt dispute letters are debt validation letters and debt verification letters. Both are commonly used but serve different purposes. To ensure your dispute is effective you need to find out how and when you should make your dispute.

The first steps you can make toward becoming completely free of debt is to send out debt dispute letters. The letter that I find is most effective is the debt validation letter. I encourage all of my readers and clients to use these letters in an effort to eliminate debt completely. I am not talking about settling for 50 or 60%. I am talking complete debt elimination. This is what true freedom from creditors is.

Learning how to send debt dispute letters in an effective way is extremely important. Some people think that by sending any type of letter disputing debt that that they will then be protected from unwarranted collection attempts. This is not true. Just like most things in life, how you argue is more important than what you are arguing about, so learn how to argue or dispute effectively!

So what is the best way to effectively send a debt dispute letter? The answer is simple send debt validation letters! In the majority of cases when a consumer talks about debt dispute letters they are really talking about debt validation letters. All of Plan B's websites and especially www.bestonlinefastloans.com are dedicated to teaching you how to become an expert at writing and sending debt validation letters.

Do not procrastinate sending debt dispute letters to your creditor or debt collector. Doing so will gradually decrease the effect that these letters can have on your credit card debt situation. I recommend sending a debt validation letter to your creditor or debt collector within a few days after you begin to receive collection notices. Sending a debt validation letter forces your creditor or debt collector to validate your account before the attempt any other collection efforts.

From all of the knowledge and expertise that I have gained in the credit card debt collection industry, one things has stood apart from the rest, the effective use of debt dispute letters. Do not miss the protection that can and is offered through sending debt dispute letters; it can save you tens of thousands of dollars.

About the Author:

Find out information about how to use a easy fast loans. Go to Allan Henrys' site where you will discover all about writing the perfect quick cash loans and what it will do for you.

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How Does a Debt Management Programme Rank as a Debt Solution?

By Dina Castaneda

When examining the merits of Debt Management as a means to fix an individual's personal debt issues, it is worthwhile considering how creditors see it. If you mull it over, all lenders desire is that their monies be repaid fully and on time together with any interest charges that might have built up and any penalties which may have been incurred. Basically, creditors require debtors to repay their liabilities according to the terms and conditions of the agreements or contracts under which the funds were lent or advanced to start with. Not really a lot to ask, you would think!

But, needless to say, things occasionally don't work out. If the borrower for whatever reason is unable to make the repayments as contracted initially, the lender needs to think about what the next best result is which could be attained. May the debtor have property that may be used to repay the money owed? Can a family member, a personal friend or any third party assist the debtor to pay back the monies fully or in part? Might the payment terms and conditions be changed to enable the borrower to repay as much as possible of the debt? Could the term of the borrowings be lengthened so the debtor could repay the majority of the liabilities during the extended period of time?

Any time you encounter financial troubles and are not able to pay back your creditors, amongst the choices you might come across is to enter into a Debt Management Plan. This solution could be called one of the big three options in the UK with regards to the many debtors who avail of it. The other two important options that are utilized by individuals who realise that they are themselves personally insolvent are Individual Voluntary Arrangements and Bankruptcies. A comparatively recent although growing choice is the Debt Relief Order (DRO) that was introduced in 2009. Although no official statistics are published it is estimated that there are nearly one million individuals in the UK now in debt management plans with their lenders. This dwarfs the numbers entering an IVA or going bankrupt. In 2011, most recent 12 months in respect of which numbers are available, there were nearly 42,000 bankruptcy orders, 49,000 IVAs and around 29,000 DROs in England and Wales. The statistics for Northern Ireland are smaller in accordance with the smaller population there but proportionately the numbers and trends are like England and Wales although DROs were only launched there during 2011.

In Scotland legislation is to some degree different though there are very similar choices on offer. In place of bankruptcies you have Sequestrations of which there were 6,300 in 2011. There were, also in Scotland, over 8,500 Protected Trust Deeds the solution comparable to IVAs. The comparable DRO type remedy in Scotland is known as a LILA Sequestration, the letters LILA standing for Low Income and Low Assets and there were in excess of 4,800 of those.

It is beneficial then to consider the Debt Management Plan given its apparent extensive popularity. A Debt Management Plan may be a self managed one wherein the borrower themselves actually reaches an agreement with their creditors to pay off money owed on a pro rata basis i.e. the sum the borrower repays to any particular individual lender is in the same proportion as the money owed to that lender is to the entire money owed to all creditors. For example, if you owe 2,000 to the first of your creditors and you owe 20,000 altogether to all your creditors, then on a pro rata basis 10% of what you can afford to pay each month will go to that first lender.

Most Debt Management Plans however are not self administered but are managed by professional Debt Management companies that, on behalf of the borrower, negotiate with creditors and administer the debt management plans. The debtor forwards the funds, i.e. his or her disposable earnings, each month to the Debt Management Company. It in turn allocates it to the creditors, having retained its agreed upon fee. Such Debt Management Plan firms in the UK have hundreds and sometimes thousands of customers on their books.

Debt Management Plan firms pick up unfavorable media attention, every now and again. Certainly a primary reason is that the activity is fairly under regulated because it doesn't fall under the aegis of the Insolvency Act. For that reason, a few firms were accused of making incorrect and deceptive claims in their advertising, of giving poor advice to debtors and even of overcharging their customers with the result that the OFT has not too long ago ordered a good number of such firms to take immediate steps repair their operations and actually have stopped some organizations from participating in the debt management business entirely.

The major appeal for the public in Debt Management Plans seems to be it's an informal deal with creditors so that the names of debtors in Debt Management Plans don't show up on the Insolvency Register. In theory the credit rating of a borrower who enters a Debt Management Plan ought not to be detrimentally influenced however in reality, in all probability it was already affected prior to when the Debt Management Plan began. The real impact of Debt Management Plans is that the duration of repayments of obligations is usually considerably lengthened and although almost all creditors stop charging interest and penalties for a while at the very least, it might take a long time, ten years in some cases, until the obligations are repaid. Another significant appeal of a Debt Management Plan is that you do not need to be insolvent to enter a Debt Management Plan. To enter an Individual Voluntary Arrangement or petition for bankruptcy, you've got to be insolvent.

Lenders, mostly, like Debt Management Plans since there are concrete plans to pay back obligations in whole and consequently they do not need to make provisions on their balance sheets for 'bad debts'. Borrowers are advised to be cautious when selecting a Debt Management Plan company to work on their behalf and to select one of the numerous reputable Debt Management Plan companies in the industry, whose standards of advertising are professional, whose advice is thorough, transparent and of a superior quality and whose fees are reasonable, competitive and explained fully and fairly. Due to these reasons, the market demand for Debt Management Plans will most likely continue to be buoyant.

About the Author:

Should your monthly debts are becoming too much to handle, we can take the worry away. We are a leading Debt Advice company offering the help and solutions you need to get you back on track. We believe that no problem is too great or too small. Call for help.

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Debt Dispute: How to Rise Above It

By Kente Wallman

One of the first questions I am asked as a credit and debt expert is often how to dispute a debt. Dispute is a fancy word meaning to disagree, debate, or argue something. I have found that in my experience almost all credit card dept should be disputed.

Many people wonder if calling their creditor or debt collector and informing them that you are disputing the debt will be effective. I am telling you today that it won't be. Effective dispute depends on timing and following specific steps. I have learned these steps from helping thousands of people go through them. With my help, thousands of consumers have become completely free of debt or settled for pennies on the dollar. I want these kinds of results for you, so keep reading.

Like I mentioned in the previous paragraph, some consumers choose to dispute their debt by a phone call to their credit or debt collector. These phone calls do nothing to protect you and do nothing to strengthen your argument in case the debt collector or creditor decides to sue you. You give the creditor or debt collector an easy way out because they can deny that you disputed the debt due to the fact that there is no written record of the dispute. Most importantly, the creditor or debt collector will treat you the exact same way they did before, poorly.

Credit and debt counselors often advise consumers to send debt verification letters to their creditor or debt collector. These letters are a waste of time because all they require is for a creditor or debt collector to confirm your name and address. The name and address of almost anyone in the United States is readily accessible online. In no way do a name and an address prove that a consumer owes their creditor or debt collector money.

Debt verification letters also do not offer any legal protection. They do not demand the creditor or debt collector to validate your account. They do not put an end to the harassment that is so prevalent in the debt collection industry. For all of these reasons, I feel strongly that debt verification letters are not the answer when learning how to dispute a debt.

I am now gong to share with you the most effective way to dispute a debt. The process that will get you the most results is the process of sending debt validation letters. Debt validation is so powerful because federal law backs it. The FDCPA or Fair Debt Collection Practices Act sets forth terms and conditions that must be met by any creditor or debt collector once a request for validation is made. Thus, debt validation letters offer much more protection and help than debt verification letters.

Debt validation letters also protect you due to the fact that a debt collector cannot continue their collection efforts after a request for validation has been made, unless they completely validate your account. This offers more protection than you think because rarely do debt collectors have enough information to validate your account. Now that you know that debt collectors rarely have the proper information to validate an account, you can stop their collection efforts with a well-written debt validation letter.

The best way I have found to continue learning how to dispute a debt is to take a mini course on debt validation letters. These courses can share many suggestions from professionals to help you make the most of your debt dispute process.

About the Author:

Looking to find the best deal on debt validation letter, then visit www.debtvalidationletter.net to find the best advice on how to settle credit card debt.

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Debt And Credit Letters

By Al Henre

Reference the debt using the identification they provided in the collection letter, such as collector account number, creditor account number, creditor name, etc. Clearly state that you dispute the collection and that according to the FDCPA you demand that the collector provide proof that they own the debt and have the right to collect, as well as proof of the amount owed by providing a copy of your signed credit agreement with the original creditor and a complete accounting of amount in question. If you are not comfortable doing this yourself contact a reputable credit repair company.


Most legitimate credit repair businesses offer debt validation as part of their arsenal and will be happy to do this for you. . And if the debt collector knows that you understand your rights - and aren't afraid to defend them in a court of law - he or she will more likely to abide by the laws that govern debt collection agencies. The Letter of the Law - The correct way to respond to a collection letter is with a written request for debt validation. This is your right under the Fair Debt Collection Practices Act (FDCPA), and if done in a timely and correct manner can produce fantastic results.


Validation of debts 15 USC 1692g (b) "If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. . But nothing ever really happens with many debts -- the original lender already wrote it off and the collection agencies buy the debts for so little that they can just pursue the easiest, least informed borrowers.


The second action that debtors may take is to request that the collection agency validate the debt. Federal laws provide that collection agencies must prove that they own a debt before they are able to collect on it. When borrowers do not request validation, the complany collecting the debt will assume that it is valid. .


Keep the record. Keep all your communication records with the creditors safely. Not confident enough when you talk to your creditors Not sure if they are willing to accept your ways of debt settlement What are the things that you can do to convince them in order to accept your offer - Presentable debt settlement letter - Letter plays an important role in the communication between you and your creditors. From the letter, the debt collectors can know why you are unable to repay your debts, your financial difficulty and how you can repay the debts. .

That the Plaintiff listed on your Complaint has the Legal Rights to sue you. That is proven by showing you and the court a copy of the Assignment they received from the Original Creditor. Now, was that attached to the Complaint Does your Local Court Rules say that it needs to be attached to the Complaint - How about the Contract Was that attached to the complaint Do your local court rules say it needs to be - Would you believe some guy named Joe who came knocking on your door and said hey buddy you owe me 5000.


Would you pay him just because he said so - Same thing with these Credit Card Lawsuits. . In fact, debt collection agencies often make mistakes and send out collection letters to the wrong people.


That's why the Fair Debt Collection Practices Act gives consumers the right to ask for validation of the debt. Within five days of their initial contact, a debt collector must send you a letter telling you the specifics of the debt in question. Step 2 Dispute the Debt - Once you've received the letter, you'll have 30 days to determine whether or not the debt is truly yours. . It's almost as if they said GREAT He or She lives there, he or she answered, now we can sue him or her - Legally, they are suppose to respond to my Debt Validation Letter. What a JDB thinks is this for example - You owed 1400 on a Credit Card and Defaulted.


YEP 12 measily BUCKSThey find out where you live, get a response, sue you or get no response and sue you anyways. Most of them will sue you if they know you have a job or assets (property) in your county. . I strongly recommend that you specifically list the documents and information you want them to send you. Ask them for proof they have the legal right to collect the debt, a detailed calculation of the amount claimed owed, and a copy of your original signed contract or account agreement.


Right and Wrong Results - If a collector cannot validate the debt they should stop collecting and not report to the credit bureaus. But it does occasionally happen that they send nothing more than an internal printout or some such thing, and then continue their collection efforts. .

But if you do recognize the debt you should research the statute of limitation before going any further. Statutes of Limitation - The statute of limitation (SOL) for the collection of a debt is the maximum period of time that a collector can file a lawsuit. To be precise, a collector can file a lawsuit after the SOL has passed, but should they do so you can have the suit dismissed on this basis.


It is important to your credit repair effort to know that the SOL clock starts on the day that you first become delinquent. . With the high determination, rewrite and re-post the letter until your offer had been approved. Official proof of payment. After your offer had been approved, please get a copy of the official payment letter from you creditors. This can help you to avoid legal proceedings in future should anything happen. .


Include the date of the letter, the account number of the disputed item, and any other information that can help identify the account in question. Next, explain briefly that you believe the information to be inaccurate, and that you'd like it removed right away. Just make sure you send a photocopy of your ID and social security card for identification purposes, and always send dispute letters by certified mail.


This way you'll be informed when the agency receives your letter and you can begin the 30 day countdown. . Receiving a debt collection letter from a law firm does not necessarily mean that you are being sued. These types of debt collectors must follow the requirements of the federal Fair Debt Collection Practices Act (FDCPA) just like any other type of debt collector. Your first contact with a debt collection law firm will most likely be just like the normal collection procedures. There are things that you should do when you are first contacted about a debt. .

Sometimes collection letters are sent out on very old debts or even debts that have already been paid. If you don't believe that the debt in question is valid, you can send a letter to the debt collector telling them that you don't think the debt is yours. Be sure to do this within 30 days of receiving the first letter - otherwise the debt collection agency will have the right to assume the debt is valid.


Step 3 Set Some Boundaries - Luckily for consumers, the Fair Debt Collection Practices Act outlines how and when a debt collector can interact with you - and you're the one who gets to set the guidelines. . While there are legal solutions to all fiscal problems, these situations are best when avoided. If you've received a letter or phone call from a debt collection law firm, don't panic.


Many people have fallen on hard times and their phones are ringing off the hook with bill collector calls. It is one thing to have to talk to the normal collection agencies but what do you do when your contacted by a debt collection law firm The first thing you should do is stay calm. . There is a legitimate stipulation set by the laws that under this Act the creditors and collectors are compelled to certify every alleged collection with corroborative evidence when the request for validation is made.


Not until the creditor or collector has completely certified your account, can they continue to collect any amount from you. Therefore a debt validation letter can protect you from the pursuing allegations of your creditor or collector. A debt validation letter is a grueling requirement on the part of your creditor or collector. . If you do not dispute the debt within the 30 day period allowed the collector is likely to ignore your request.


Credit Repair Options - Once you have a collection notice in hand there are a couple of credit repair strategies you should consider right away. If you don't recognize the debt you have the right to request the name and phone number of the original creditor. Collection notices are supposed to include the name of the creditor to whom the debt is owned, however in the case that the debt has been sold and resold the original creditors name may not be indicated. .

These letters should be sent certified, return receipt so that you have proof that it was received by the collector should you ever have to provide the evidence in court if they violate your federal rights. Falling into financial difficulties often means that delinquent debt is turned over to an in-house collector or an outside agency. If you find yourself facing calls from debt collectors, there are three weapons in your arsenal right now that you can use.


Get yourself a phone that will display caller id (you may have to contact your telephone service provider and sign up for the service) and ignore numbers you don't recognize. . Debt Validation Letters - Debt Validation Letters are written to collection agencies to ask a collection agency to validate a debt. Debt validation is simply a consumer's right to challenge a debt andor receive written verification of a debt from a debt collector under the Federal Fair Debt Collection Practices Act (FDCPA).


Pay for Delete Letters - A pay for delete letter is usually written to a debt collector in hopes of negotiating to pay on an existing account in hopes of having the account removed or updated as positive on your credit report. Cease amp Desist Letters - A cease amp desist letter can be sent to anyone, usually a debt collector, to request that they immediately stop contacting you. .


They basically scrub you out to see if your worth the money to file the suit against so they can collect. 00 and are suing you for the 1400 plus interest of let's say 2500 plus late fees, attorney costs ETC. 00 PLUSThey throw all this onto a summons and claim you owe them all this money. They then hope that you are scared and don't show up for court and they get a Default Judgment against you. .


The more they can understand your financial situation, the more likely they are to help you to settle your accounts. At the same time, reevaluate your financial condition and propose to your creditors on your best repayment methods with the relevant details such as the repayment time period, the interest rate charged and the best periodic installment payments or the lump sum of the repayment which you can make.


Preferably the proposed date is within the next 3 months, whether it is for you to kickoff with the new installment repayment amount or a lump sum of not less than 50% of what you owe. What you have committed this time should be something which is achievable before they file any legal action against you next. .

Write down notes from every conversation with the collector as soon as possible. It may be willing to work out some sort of repayment plan and in some cases, you may even be able to settle the debt for less than what you owe on it. Send your dispute to the law firm by certified mail, and keep a copy for your records. If you are sued, be sure to talk with a consumer law attorney who specializes in debt collection. .


Debt Validation Letters - Debt Validation Letters are written to collection agencies to ask a collection agency to validate a debt. Debt validation is simply a consumer's right to challenge a debt andor receive written verification of a debt from a debt collector under the Federal Fair Debt Collection Practices Act (FDCPA). Pay for Delete Letters - A pay for delete letter is usually written to a debt collector in hopes of negotiating to pay on an existing account in hopes of having the account removed or updated as positive on your credit report.


Cease amp Desist Letters - A cease amp desist letter can be sent to anyone, usually a debt collector, to request that they immediately stop contacting you. . While they're gathering the documentation, they're prohibited from contacting you. Often, a debt collection agency simply doesn't have the necessary proof, and they'll stop attempting to collect the money. If they do have substantiation for the debt, they must send it to you in writing.


Then, you can check to make sure that your records and theirs are in agreement, and that they haven't added on extraneous (and illegal) charges. . A fair debt attorney should take your case at no cost to you, and could get you up to 1,000. The best way to repair your credit is to write letters to the credit bureaus and collection agencies. There are many different credit repair letters for many different situations. The most popular credit repair letters are dispute letters, debt validation letters, pay for delete letters and cease and desist letters. .

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For the best online loans tips available go to Allan Henrys' excellent website for free resources on quick loans.

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