Sample Letter to Your Creditors for Debt Settlement

One of the most important rules to follow when it comes to debt settlement is to always communicate with the original creditor or debt collector through letters. It should be sent through registered mail with return receipt requested so that you have a paper trail of your transactions. If you are not sure how to go about writing a debt settlement letter, here are some samples to help you get started. Remember that you have to craft the letter to fit your unique situation so don’t just copy and paste. Make sure that you review it before sending so your letter becomes more effective.  

Part I of this report gives sample letters you can write to your original creditors. These include an unsolicited settlement offer, a letter countering a creditor’s offer, a letter of acceptance to a verbal offer, and a debt settlement agreement. Don’t forget to send your letters via registered mail with return receipt requested.

Settlement Offer Letter

Date

Your Name

Your Address (Street Number, Street Name)

City, State, and Zip Code

Your Phone number

(Name of Creditor)

(Creditor Office Street Number and Address)

(City, State, and Zip Code)

RE:  Account #_________________

Dear Sir/Madam (if you know the name of the person in charge, the better),

I have been unable to make payments on my account with your company which shows an outstanding balance of $___________ because of financial hardships that I am experiencing. (You can give a short explanation of what has caused the hardship but be professional in your explanation.)  

I feel that I have a moral obligation to pay this debt but do not have enough money to pay it fully. However, I would like to offer a settlement amount of $ __________ which will consider this debt paid in full.

I sincerely hope that you will be able to accept this offer inasmuch as it is all I can afford. Should you accept this settlement offer, please send me a letter stating that you also agree to these terms: 

1.    That you are accepting my one-time lump sum payment of $____________ as full payment of the outstanding balance of $____________ which I owe to your company and that no future litigation related to this account number will be filed against me;

2.    That you are going to report to the credit bureaus (Experian, Trans Union, and Equifax) that this debt has been “Paid” and that any negative listing related to this account be removed.

3.    That you are going to send proof that the debt has been satisfied as soon as my funds have cleared.

When I receive your letter agreeing to this settlement, I will immediately send you the agreed amount so I can get this burden behind me (you can also ask them to sign a debt settlement agreement that you have already prepared and send you a copy). I appreciate your consideration of my offer. Thank you very much for your time.

Sincerely yours,

Signature over Printed Name

Find more articles on debt settlement  by just clicking on this link: http://consolidatedebtguide.org

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·         Manage your Spending with Credit Card Debt Management

What You Need To Know Before You Enroll Into a Debt Management Plan

Don't drown in your debts, manage them instead! Rather than paying off many separate bills each month, you can use debt strategies to combine your monthly payments into one easy-to-manage bill per month. Debt consolidation gives you the power to get out of debt with the help of a certified debt consolidation agency. In order to properly manage your debt and help you to get rid o your debt in timely basics, a debt consolidation always goes with a debt 

management plan.

Your debt counselor from debt consolidation agency will normally ask you to enroll into one of their debt management plan. If you decide to enroll in a Debt Management Plan, do your homework before signing anything. Here are some guidelines for your reference before you put your signature on to the debt management contract.

1.    Check with the Better Business Bureau

You should short listed a few debt management plans offer by different debt consolidation companies; then, check these company's rating and their past performance records from Better Business Bureau (www bbb.org). Eliminate from those companies that have an "unsatisfactory" rating at BBB.org. Serious and unresolved complaints will be noted, and you can learn what other names the company operates under so you can look them up as well. Understand how they resolve complaints and whether they will pay your creditors on time.

2.    Understand the Fees

Debt consolidation is not free. Fees may include account set up fee and monthly processing fee. Ask for all the fees involved, including the potential hidden fees before you decide to enroll to the proposed debt management plan. Avoid services that need up front fee; the rule of thumb, If you're paying more than £50 a month, you're paying too much.

3.    Choose a Debt Consolidation Company that Can Handle All Your Accounts

Before you sign a contract, let the debt consolidation company know all your accounts to be consolidated and ask to confirm that they can work with all your creditors and consolidation all your accounts, not just a few.

4.    Be Wary of Company That Enroll You in 30 Minutes of Less

A counselor should spend time with you to understand your current financial situation and will make sure that the proposed debt management plan best fit you. In general rule, if a counselor enrolls you into their debt management plan without understanding your real debt problem, they won't work for your interests in the future either. Be wary of these companies that just want you to become their customer and don't care about your real financial issues.

In Summary

Debt consolidation with a good debt management plan will is able to help you to resolve your debt issues. While there are many reputable debt consolidation companies around in the market that really provide a good service to help their customers in resolving their debt issues, many are around just to earn profit and ignoring your debt problem. If you decide to enroll in a Debt Management Plan, do your homework before signing anything.

For more on debt management Plan, visit http://www.ezmortgagesolutions.net/

Some articles you may find interesting:

·         Debt Management Program – The Easy Way Out Of Debts!

·         10 Warning Signs that Tell You If You Have too Much Debt

·         All About Debt Management Services

Cash Advance Online Advantageous

In times of financial trouble, sometimes it could be very difficult to choose the type of loan to take out. There are so many things to consider. You have to make sure that you find the most reliable financial service provider, pick the best type of loan that caters to your particular situation, and choose a provider that could offer the most advantageous option in terms of interest rates and payment terms. Another consideration would be how fast your loan application would be approved. 

This is important, especially if you need the money to cover emergency expenses. These considerations often lead many people to payday or cash advance loans. For them this type of loan seems the only solution for their financial emergencies.

Why Cash Advance?

A payday loan offers very quick approval and can be used for almost any purpose. While there may be plenty of local lenders available to help you, you may not have the time to meet with each and every one of them and find out who among them offers the best deals.  So cash advance online becomes your most practical option. In fact, with so many online companies providing lending services, you shouldn’t be surprised to find some of the best deals on the internet.

Perhaps the number one advantage of cash advance online is that it is very convenient. With a local lender, you’ll have to go through a lot of process before you can actually take out a cash advance loan. First, you have to spend some time researching the company’s credentials and reliability. Then you’ll have to set an appointment with the advisers so that you can discuss all the fine points about the loan. When you go online for a payday loan, all these can be accomplished within just a few minutes. You only have to browse through the various lending websites, choose the most reliable one and fill out their online forms. Wait for a few more minutes and your loan application could be approved. Technology has made the entire process very simple.

Online payday loan providers are now very commonplace. In fact, it can even be said that there are more lenders who provide their services via the internet than those who do not. For the consumers, this is a good sign because the competition can definitely pull down the prices. Online providers are offering all types of deals in their attempt to captivate the most number of consumers. So consumers can now enjoy a lot of discounts and promos which can even lower the cash advance loan’s rates even more.

In addition to lower rates, consumers now have more options when it comes to cash advance online. In fact, online it’s easy to find cash advance websites offering numerous quotes from different lenders. The more options consumers have, the greater their chances are of finding the best deals for their specific needs.

For more on online cash advance, visit www.cashadvanceloanstoday.org.  If you need emergency cash advance, just click on the link to apply online: payday cash advance online.

Other articles you may find interesting:

·         Debt Management Program – The Easy Way Out Of Debts!

·         10 Warning Signs that Tell You If You Have too Much Debt

·         What You Need To Know Before You Enroll Into a Debt Management Plan

Living a Frugal Lifestyle

The word "frugality" has left a more negative connotation for most people than simply being a saver, a cheapskate or tightwad. There is a thin line difference to saving and too much frugality to the point of being awkward and ridiculous. This is where the negative connotation comes from.

But if you are guided with the right principles and reasons in deciding to live a frugal life, you would never go wrong.

If you have decided to live frugally, no need to be worried of insults. Keep your head up high.  And keep your focus through these tips.

1. Eating Out - Having gimmicks with friends on a Friday night is fine if you do it once in a while. But this can be expensive if you add them up at the end of the month.

2. Clothing - Naturally, if you are the kind of person who adores signature and designer clothes, do not expect that there will be something left of your take home pay. Instead of being trendy, wear clothes that can easily be matched with your other clothes.

3. Own Home - If you are planning to move out and find a place to settle, do not be overwhelmed by the excitement, instead be practical. As a start, buy a smaller house or try other ways like rent-to-own, do-it-yourself arrangements, and owner financing.

4. Buying Your Own Car - Shy away from sports cars or SUVs. Just stick to your purpose of buying a car which is to transport you anywhere you need to go. Check out also program cars like a new car warranty. Maybe this is not just the best time to replace your car with a new one.

5. Shopping for Groceries - As much as possible do not go with items that are branded. Choose non-brands and try looking for items on the highest or lowest shelves for best prices. Grab the opportunity and shop during sales or use coupons.

6. Family Out - There are inexpensive ways to bond with your family and be entertained like going to libraries, local parks, malling, picnics, visit friends and local church.

7. Buying School Supplies - Stock school supplies at home and do not buy anything fancy.

8. Be contented with what you have and try to live within what you earn.

9. Plan your Child's College Education - Teach them the ways to be independent and self-supporting by encouraging them to apply for scholarships and "on campus jobs".

10. Be Aware of your Financial Limitations

11. Anticipate your Failures by Planning - Have always a budget plan so you would avoid impulsive buying.  

For more on personal finance, visit http://www.ezmortgagesolutions.net/

Some articles you may find interesting:

·         Debt Management Program – The Easy Way Out Of Debts!

·         10 Warning Signs that Tell You If You Have too Much Debt

·         All About Debt Management Services

Debt Management | Putting Back Control on Your Finances

Debt has become an integral part of our modern lifestyle. As we keep on spending we find ourselves swimming in the pool of debt. But before we proceed , did you know that, An article in The Independent on Sunday recently put the growing consumer debt burden within the US at $1 Billion.US residents seem to enjoy a strange relationship with debts. While they cannot do with a large debt load over their shoulders, they also cannot do without incurring them for long. Americans are sure to rank highly when it comes to spending, often resulting in financial crisis.

Debt management helps you to manage your funds and also protects you from the humiliation of debt struck conditions. Debt management is a set of techniques and processes through which an attempt is made to give a break to the reign of debts. Debt management is just a simple common sense method, which involves some proven steps to take care of debts in a more systematic way. Debt management aims to strike at the roots of debt, instead of simply countering the after effects of debts. When debts are not allowed to increase, the use of debt consolidation loans and other short-term debt management techniques like debt counseling become redundant. Debt management is controlling and managing debt responsibly by reducing or eliminating debt and creates a cash flow that keeps you out of debt. To completely control your debt you need to make a budget, reduce expenses and focus on paying debt this is the essence of debt management. 

Debt management requires that you keep good records and stick to your budget so debt doesn't get out of control. Try to cut expenses and remember to always live within your means. Debt management is open to all: good credit people, bad credit people or people with bankruptcy,

There are various tools available for debt management. 

Debt management on a smaller scale is known as debt counseling. It involves various debt management techniques-expenditure should be restricted proportionately to the income. Debt management technique  includes non formal  negotiation with lenders to  get your interest rates lowered, late payment penalties cancelled or suspended, and you loan may  be extended so you have longer to pay it off.  If there is shortage of funds at the borrowers end and he is simply not in a position to pay, then discuss it with the lender. Ask the lender for the payment options, If the situation is very tight, the borrower can explain it to the lender and he  will be more than willing to help, since he is interested in recovering his amount. This will help a lot in avoiding  any late payment penalties.

Another important tool for debt management is debt consolidation, this loan helps in consolidating the existing debts of borrower to one loan making  the repayments affordable by  lowering the interest rates and more manageable. Another technique for debt management is debt consolidation mortgages that include certain debts in an existing mortgage.  The advantage of this method is that debts are settled at the rate of a mortgage. Home equity loans put a convenient method of debt management. Since home equity loan is secured, it provides cheaper finance. Whatever be the method of debt management adopted, it must be effective towards debts. The ultimate aim of debt management must be to find a long lasting solution for debts.

Debt management processes in are similar to those followed all over the world. A sincere effort at debt management in will essentially involve keeping ones finances under control, taking the  right debt from the right lender, never missing any installments, avoiding any late fees and if needed, consolidating  the debt in the most efficient way.

More debt management tips can be found at www.ezmortgagecalculator.org.

Personal Debt Management Starts with Paycheck Management

This is an exciting time of the year for many American consumers, as tax time approaches.  No, most people are not too excited about filing their income tax return, but most people receive a refund each year, and this year that refund averages out to a little more than $2000.  That windfall is usually quickly spent on a new TV or a vacation or as a down payment on a new car.  Tax refunds are rarely spent wisely, which is a pity.

The average American household carries nearly $10,000 in credit card debt, and that $2000 or so could go a long way towards paying that debt down.  Of course, few people will see it that way, as such a large sum of money just seems better suited towards some large purchase.  But what if that $2000 was in your pocket all along?  Could you have done something smarter with it?

The tax refund that most people receive each year is just that; a refund.  It means that the taxpayer paid more money in taxes than he or she owed, and for the average taxpayer, that means about $170 per month.  That money has effectively been lent to the government, interest-free, for a year.  With most people heavily in debt, who can really afford to lend the government money at no interest for a year?  Couldn't that money be put to better use year-round?

Of course it can.  That money can be used each and every month to reduce debt.  If consumers would simply adjust their tax withholdings by filing a new form W-4 with their employers, the amount of taxes taken out of their paychecks could be reduced accordingly.  That means, on average, an extra $170 per month, every month in the paycheck.  And that money would be available to make extra payments on those monthly credit card bills.  It's a far cheaper and easier way to reduce debt than to go through some complicated and expensive debt consolidation plan.

The W-4 form allows tax deductions for each dependent child and offers allowances for employees who are married.  Each time that status changes, employees should reevaluate their tax payments and fill out a new form accordingly.  If you have no idea how much should be withheld from your paycheck, you can go to the Web site of the Internal Revenue Service and try their tax-withholding calculator.  There is no reason to lend interest-free money to the IRS when you could be using that money to pay off your bills that are accruing interest at 20%.  Use your money wisely.

Check out www.adamscapgroup.com for more Information on personal debt management.

Debt Negotiation | How to Deal with Debt Collectors

When it comes to debt negotiation and working things out with debt collectors, the first thing you need to understand is that they are the professionals in this area. They do this for a living and hence, they know how to get what they want even if that would be detrimental to your interest. However, with a few simple guidelines, you can deal with them successfully and get them to agree with your terms.

First of all, you have to know what your rights are when it comes to third party collection agencies. What we have given above are starters. There are very good resources online or in the attorney general’s office in your state that teach you about the ins and outs of debt settlement with collection agencies. You should also read the FDCPA and the FCRA (Fair Credit Reporting Act) as these govern actions done by debt collectors. When a debt collector knows that you know what you are doing, they will less likely employ questionable tactics.

Next, always ask that your debt be validated. This means that the collection agency has to provide proof that you owe the debt to the collection agency and not to the original creditor. Failure to validate your debt will mean that they will not be able to collect it from you, that they cannot anymore contact you about the debt, and that they cannot report it to the credit bureaus. Be sure to check that the debt is not past the statute of limitations in your state. If it is, they cannot anymore collect the debt and you should inform them. If they persist, you can sue them in a small claims court.

Third, tape the phone conversations if possible. This way, you have proof of violations committed. Even if you don’t record the phone, you should still keep a record of all phone calls which details the date and time when it was made, who you talked to, and what the conversation was about.

Fourth, negotiate for a complete deletion of the negative listing on your credit report from the start. They won’t gain anything by having the derogatory item remain on your credit report after you have agreed to settle anyway. Make sure that you get that in writing before settling your debt.

Fifth, get everything on paper. Always operate under the assumption that a debt collector will not honor agreements made over the phone. Letters must be sent via registered mail with return receipt requested.

Sixth, never give personal information such as your work place or bank. This simply makes it easier for them to collect judgment should they win a case against you. In addition, never pay collection agencies using your personal check as this could reveal precious bank information you want to keep secret. Pay by money order or cashier’s check from a different bank than the one you have an account with.

Seventh, settle near the end of the month to get very good deals.  The reason for this is that debt collectors also work on commission so what they do each month will determine the added income they will get aside from their base pay. They will be in “settlement mode” near the end of each month and will most likely agree to your settlement terms.

Finally, stay calm and cool throughout the whole deal. Focus on the facts and leave your sob story out of the negotiation process. Do not allow them to pressure you into negotiating quickly as you will be more likely to miss out many critical things when you do. You are more likely to land a good settlement deal if you remain in control of the whole situation. 

You can find more information on debt negotiation  by just clicking on this link: http://consolidatedebtguide.org