Unsecured debt consolidation loan and debt counseling.
Apply for an unsecured debt consolidation loan or for debt counseling. Pay off debts with a loan or combine monthly bills into one low payment per month.
Nonhomeowner unsecured debt consolidation
loan
We are not aware of any lender who offers
a large amount, unsecured debt consolidation loan for nonhome owners. An option is to obtain a loan via refinancing.
An unsecured debt consolidation loan is a loan that is only obtainable by homeowners who have adequate equity to refinance. The loan may then be used to pay off unsecured debt; hence the term: "unsecured debt consolidation loan".
What about nonhomeowners?
Nonhomeowners can also enjoy debt consolidation without a loan by using credit counseling. The unsecured debt is combined into one lower monthly payment.
Don't know which debt program is best for you? Compare credit counseling vs debt settlement to help you decide which one offers the best benefits for your situation.
Whether you choose a credit counseling agency or a debt settlement company, either program can only help you with unsecured debt. Find out what types of unsecured debt qualify.
Debt Consolidation Tips - If you have debts that you constantly shuffle, you may be paying high interest fees or late fees.
Debt consolidation is common and can help you get control of your finances. Money can be saved by eliminating high interest rates on balances or late fees from shuffling debts from paycheck to paycheck. Instead of too many debts that must be paid every week, you have one, low monthly payment until the debt is paid. The important thing is not to make any new debts until the old debts are paid. Consolidating debts can help make debts manageable.
Get out all your debts and get a total amount. Consider ordering a free credit report to review your credit history to see if there are debts you forgot about (or if debt errors exist). Knowing how much you owe in debts is a start to knowing how to handle debts and to make a plan. If you seek professional help, you must have all the details available.
Find a reputable debt consolidation agency, this may take some time and effort. Shop around as they can vary. Check to see how long they have been in business, if they have any complaints against them, do they have clients that are happy, and a list of their fees. Just because a company is ‘Non-profit’ does not mean they are great and you will get the best service.
Debt consolidation programs can be home equity loans or debt consolidation. Make sure you know if you are putting your home up to get a loan that can be used to pay off debts or if it is a non homeowner debt consolidation program. Some debt consolidation programs may hide the fact that you will be using your home to get a loan for debts.
Consolidate all your credit card debts onto one, low interest credit card. This is a good way to help yourself by doing it yourself. This may help you save money on too many credit card balances with high interest rates or late fees.
Negotiate with your creditors and ask them what lesser amount will they will take to be paid in full. Many creditors will take a lesser lump sum as they want to get paid. You may have to ask friends and family to give you a loan, but you can assure them with a written contract that you will repay them or make payments to them monthly.
The
divorce decree made my former spouse responsible for the debt, but he isn't
paying. Given this, the bank says it's my responsibility as a joint account
holder to payoff the debt. Is this correct? Yes, if the account was a joint
account. Joint credit account holders remain liable on the account until the
debt is satisfied or some other manner of release occurs.
When
married joint account holders get divorced, the following factors apply:
*
The terms of a divorce decree do not affect the legal obligation of both parties
to repay the debt.
*
Although the creditor may agree to release one party, it is not legally required
to do so.
The
bank closed my checking account and did not notify me. Is this legal? Yes.
Generally, national banks may close deposit accounts for any reason (e.g.,
inactivity or low usage) and without notice. Federal banking laws and regulation
do not address the closing of deposit accounts.
This
issue is governed by the Deposit Account Agreement you received when you opened
your account. Review that Agreement, and contact your bank directly for more
information.
I
want to close my overdrawn checking account to avoid more overdraft fees, but
the bank refuses to do so. Generally, banks will
not close accounts in overdrawn status. You may want to review your account
disclosure and contact the bank for more information.
Review Disclaimer:
Review information was gleaned from the website, and is neither an endorsement by us nor an confirmation of content nor a warranty of any promises made by the website. Use the review information at your sole discretion and sole liability.
Debt Consolidation Alternative: Become Debt Free in 24 - 48 Months. Low Monthly Payment & No Upfront Fees*
* Reduce your debt balances
* One low monthly program payment
* No fees until you succeed*
Debt Relief Programs and Options: There are many options when it comes to addressing your debt problems. Debtmerica believes it provides better Alternatives to Consumer Credit Counseling, Bankruptcy or Debt Consolidation Loans.
Below are summaries of the various alternatives available to you so that you can make an informed and well-educated decision based on your own individual situation.
Our Debt Resolution Programs can help you get out of enrolled debt in as little as 24-48 months, and debts can be settled to as low as 50% of what you owe at the time of enrollment. If you are experiencing a financial or personal hardship that is preventing you from paying your bills, the five most generally accepted debt relief options you have are:
1. Bankruptcy.
While bankruptcy is a legitimate route to get out of debt, it can negatively affect your credit for as long as 10 years and can be a very unpleasant experience emotionally. You shouldn’t consider bankruptcy as a simple “quick fix” to all of your financial problems, but rather as one of the many available solutions you may have given your individual situation. As of October 2005, congressional legislation made filing for bankruptcy more difficult and burdensome. A Chapter 13 bankruptcy could result in higher monthly payments and may last longer than an alternative debt resolution program. If you have questions about bankruptcy or are considering it as an option, we advise you to speak directly to an experienced bankruptcy attorney licensed in your state.
2. Consumer Credit Counseling (CCC).
A Consumer credit counseling program is a method of debt relief for those who are unable to make minimum payments and undergoing financial difficulties. However, CCC programs could take up to 6 years or longer to complete and your debt is not reduced when compared to a debt resolution program. You may still have to pay back 100% of the debt you owe plus interest. In addition, if you miss just one monthly payment, you could be dropped from the program altogether. Consumer Credit Counseling Services, on average, have very high rates of client cancellation, which does not bode well for their delivery of a successful debt management program. (see below for more information on CCCs). With that being said, a CCC program may be a viable option for those with under $10,000 in unsecured debt, are able to afford higher monthly payment obligations, and are well disciplined to remain in the program.
3. Debt Consolidation Loan.
This option may work financially if you have at least an above average or good credit rating and considerable equity in your home. If you have a very large debt balance and have been late on just one monthly payment, it is likely that your credit may be impaired. Also, with this option, you do not reduce or settle your debt to a lower amount than the original balance; you are only transforming it from unsecured debt to secured debt. While a debt consolidation loan coupled with a debt resolution program provides a very powerful solution, remember that debt consolidation alone does not reduce or settle your debt; it only shifts your debt from one place to another.
4. Continue minimum monthly payments to credit card companies.
Many people struggle to make their minimum monthly payments and this option could take over 30 years to pay back the debt you owe, costs thousands of dollars in interest alone, and could require you to potentially pay back over three-times what you now owe on these balances. This may be the least timely, most costly, and most economically disadvantageous way to get out of your unsecured debt (see below for more information). Keeping high balances on your credit cards may affect your credit in a negative way and could make it more difficult to obtain any other type of loan.
5. THE DEBT RESOLUTION PROGRAM
This could be one of the fastest, most effective ways to settle your debt for less than the original balances owed. Debtmerica’s “Debt Resolution Programs” could not only settle your debt by up to 50% of your original balances, but it also may enable you to become debt-free from your enrolled accounts in as little as 24-48 months. Our programs are custom-tailored to provide you with just one low monthly program payment. We feel this option could be one of the fastest ways for you to become debt free while we work hard to minimize your stress burden. Typically, we negotiate your balances down to about 50% LESS than what you owe. For example, through our debt resolution programs, if you owe $30,000 to your creditors, you may be able to reduce your debts by $15,000 or more.
Debtmerica’s programs are performance based, which means we do not receive any fees until a settlement has been reach. Debtmerica offers programs that charge fees as a percentage of savings or as a total percentage of enrolled debt balances. Regardless of which program you enter, you can expect the total fees of the program to range from 20% to 24% of the enrolled debt amount by the time you complete the program.
If you are considering all of your debt relief options, and want to get out of debt, complete our easy and hassle-free 30 Second Savings Quote to see if a debt settlement program is the best option for you.
Debt Consolidation Loan
To be approved, you must have the ability to repay a larger home loan and also have an acceptable credit rating. Even if you do qualify, without debt settlement combined, your situation could likely get worse. Rather than helping you to reduce your debt through debt settlement, a consolidation loan may increase your debt burden. Here are some more facts that you may want to know about debt consolidation loans:
* You must qualify, which may be difficult given the recent mortgage reforms.
* It requires ownership of a home with considerable equity
* Closing costs are usually required upon closing or built into the interest rate
* Missing payments could cause you to lose your home
* You would pay back the entire balance of your credit cards, plus interest
* Payback could be 10-30 years or more depending on debt balance, type of loan, and your ability to pay
* You are paying off unsecured debts in favor of a new secured debt
* The debt consolidation loan reduces the equity available in your property for future use
Continue to Make the Minimum Payments or Don't Pay Anything at All
* You could pay almost 50% of your original balance to your creditor in interest costs alone over the first 36 months. Your principal balance may barely be touched
* If your credit card interest rate is 25% or higher, it may be almost impossible to pay off your debt by making the minimum payments
* With a high credit card interest rate, it would most likely take you over 20 years to become debt free - and that's if your balances don’t increase
* Until you pay off high balance debts, your ability to be extended credit becomes substantially more difficult.
If you have already stopped making payments to your credit cards or other creditors, you are negatively affecting your credit rating without reducing, settling or managing your debt successfully.
To see if you qualify for debt settlement, please fill out our 30 second savings quote form for a free, no cost or obligation consultation.
Debtmerica, LLC
Attn: Customer Care
3100 S. Harbor Blvd., Suite 250
Santa Ana, CA 92704
1-800-470-8155
Review Disclaimer:
Review information was gleaned from the website, and is neither an endorsement by us nor an confirmation of content nor a warranty of any promises made by the website. Use the review information at your sole discretion and sole liability.
Wage garnishment is when a debt collector or creditor gets permission from a court to take money directly from a consumer's earnings or tax refunds. However, consumers have certain legal protections regarding wage garnishment at both the state and federal level. These restrictions include the amount that can be garnished and, in certain states, the length of time the garnishment can take place. Also, you have the right to dispute a wage garnishment with the court that issued the judgment by filing a form with the court.
The basics of wage garnishment: Most wage garnishments are initiated by court order after a creditor or debt collector obtains a judgment that allows the creditor or collector to take personal earnings to pay the debt. The payments come directly from your employer by deducting the payment amounts from your paychecks.
If you owe non-tax debt to the Internal Revenue Service or other state or federal agencies, your wages may be garnished without a court order.
It is not considered wage garnishment when you voluntarily work with your employer to set aside part of your income to fulfill a debt.
How wage garnishment works: Once a creditor or debt collector has obtained a writ of garnishment, the creditor or debt collector must provide notice to your employer and to you. Generally, this notice informs you that a garnishment has been placed on your earnings by the courts, the amount that will be garnished, and the length of time it will be in effect. The notice also provides you with your rights.
Government restrictions on wage garnishment: Under federal law, there are restrictions on how much can be garnished from your wages. The amount is based on your disposable income, or in other words, the amount of money you have after legally required deductions, such as federal and state taxes, Social Security and unemployment insurance, are made. Parts of your paycheck that are not exempt from garnishment are union dues, health and life insurance contributions and savings bond purchases, as these are considered part of disposable income.
Ordinary wage garnishment. The weekly amount can not exceed the lesser of either:
* 25 percent of your disposable income, or
* The amount by which your disposable income is greater than 30 times the federal minimum wage. ($7.25 per hour effective July 24, 2009).
Child support and alimony. Federal garnishment law allows up to 50 percent of your disposable earnings to be garnished if you are supporting another spouse or child, or up to 60 percent if you are not. Your wages may not be garnished if another creditor is garnishing your wages already, unless:
* The first garnishment takes less than 25 percent of your disposable income, or
* The creditor or collector has a judgment for alimony or child support.
Chargeoff credit card - How to charge off credit card balances yourself, or get professional help from a debt settlement company.
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Typically a 'charge off' is when a creditor, bank, or bill collector writes off a balance as "bad debt" because they believe they can't collect the debt. Usually this happens when a person has not made any payments for six months or longer. The lender will still try to collect the debt and then write as a charge off. They can report the charge off to credit bureaus. Charge offs can have negative effects on credit scores, but thankfully credit reports are updated often and positive information could help rebuild the bad information.
Before you settle debt with a collection agency, ask them to agree to a settlement in writing that they will not report the settlement to the credit bureaus in a less than favorable way for you.
