Debt Verification Letter

By Allan Henry

Debt verification letters are a type of letter that can be sent to a creditor or debt collector in an effort to request information on an account that is being collected on. Debt verification letters are not extremely effective because they only require that the creditor or debt collector provide your name and address.

Let me tell you why I don't recommend the use of debt verification letters. Debt verification letters only require the creditor or debt collector to prove that they have your name and address, which has no relation to whether or not you owe them money. It also will not stop them from harassing you for payments. Because of this I recommend looking into the use of debt validation letters.

All this talk of debt validation letters and debt verification letters can be confusing. This is because many people use the two terms interchangeably which is incorrect. As a consumer, it is extremely important to understand the difference between these two letters because sending a debt verification letter will do nothing to better your situation.

The bottom line is that sending debt verification letters will get you nowhere. You leave yourself open to continued harassment and collection efforts. However, by sending debt validation letters, it is likely that all collection efforts will be stopped or seriously delayed.

Debt validation letters are extremely effective when sent to third party debt collectors. Third party debt collectors often use intimidation and harassment to trick consumers into making payments that are not legally required. Debt validation letters can force third party debt collectors to play by the rules. Debt verification letters cannot offer the same protection. If you are dealing with a third party debt collector, send them a well-written debt validation letter today!

The harassment and intimidation by third party debt collectors was commonplace in the credit card debt collection industry until the US government passed the FDCPA or Fair Debt Collection Practices Act. This act provides the legal backing to the use of debt validation letters and provides no support to debt verification letters. Though this Act provides a large amount of protection to consumers, the protection only comes into effect once a debt validation letter is sent.

About the Author:

Find out more about how to use a debt verification letter. Visit www.debtvalidationletter.net where you will find out all about preparing an amazing debt dispute letter and what it will do for you.

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Debt Management System: How it Works

By Roy George

The term Debt Management is simply defined as just about any action or technique developed in order to help a person to manage his or her debt. While this clarification is rather vast, it contains services like debt consolidation, debt settlement, a bankruptcy proceeding, personal loans, along with other approach that may help people in order to cope with their exceptional financial obligations.

When one speaks about Debt Management, one is most commonly talking about the term debt consolidation in general. The actual concept behind debt consolidation is the following: The consumer makes its way into a plan which allows him or her to reduce his monthly bills as well as interest rates by incorporating all of his exceptional debts right into one big debt.

However, there is demise to the debt loan consolidation practice. Normally the actual programs last about 5 years, and while one may be paying a lower monthly interest percentage, the exact duration of the plan still signifies that the client will pay a hefty amount of interest through the entire length of the program. Debt Management or consolidation corporations furthermore require you to pay standard servicing fee of nearly $40-50 per month.

Also, the riskiest part of these Debt Management programs is in fact the Debt Management and consolidation services these companies declare to put forward. A number of infamous and seedy firms can be found in the marketplace that do not meet the requirements of the clients and provide fake promises to their clients, most significantly by not scattering money and funds at a timely manner.

An additional trendy sort of Debt Management is the option of Debt settlement. This practice needs the actual settlement of significant debts with the loan firms. Most of the times, companies will be agreed to obtain 30-50 % of the outstanding balance as reimbursement in full. Just like debt consolidation, Debt Management may as well negatively impact your credit score, but Debt Management system through trustworthy and legitimate companies is in fact a very effective manner of coping with bad debt.

You can find several other methods contained in the concept of Debt Management such as filing bankruptcy, refinancing on a mortgage, taking out the debt consolidation loan, and so on. Probably the most essential requirement to remember is to weigh the pros and cons of each option very well. Make sure to select a program and a company that fit your requirements and fulfills your current expectations.

About the Author:

Roy GeorgeHarrington Brooks Ltd are an established UK based company who specialise in debt management, being one of the UK's foremost companies.

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