Unsecured debt help by credit counseling or debt settlement.
Credit counseling and debt settlement can offer unsecured debt help. To see if you qualify for either service, first understand the types of unsecured debt and the pros and cons of each option.
What is unsecured debt?
Unsecured debt consists of financial obligations you undertook which did not require any form of collateral.
Credit cards (i.e.
MasterCard, Visa, American Express, Discover, etc)
Gas cards (i.e. Shell, Exxon, etc)
Store charge cards (i.e. Sears, Wal Mart, etc)
Payday
and personal loans (i.e. check advances & unsecured signature loans)
Medical bills (self-explanatory)
Personal loans (bank unsecured loans)
Credit counseling for unsecured debt:
Credit Counseling: Can't create a budget and abide by it? Unable to work with creditors on a repayment plan? If so, consider professional credit counseling. Many credit counselors are nonprofit and work with you to solve debt problems. Reputable credit counselors can advise you on managing your money and unsecured debts, help you develop a budget and offer free educational help.
Debt negotiation / debt settlement:
Debt negotiation/settlement is vastly different from credit counseling. It can be risky to your credit, but if your credit is already destroyed you may have little to lose and more to gain by settling outstanding debt. Debt settlement is much more aggressive than credit counseling, and it can get you out of debt in half the time of credit counseling. Many states have laws regulating debt negotiation companies. To see if your state permits debt settlement, contact your state Attorney General.
Your control over re-paying secured or unsecured debt:
If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe.
What to do if you believe a debt collector violated the law:
You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney' s fees also can be recovered.
Where to report a debt collector for an alleged violation:
Report any problems you have with a debt collector to your state Attorney General' s office and the Federal Trade Commission. Many states have their own debt collection laws and your Attorney General' s office can help you determine your rights.
Need unsecured debt help? Get professional assistance.
Credit counseling - debt management Unsecured debt is combined into one lower monthly payment to make it easier to re-pay financial obligations. With debt counseling, you may be able to improve credit if you stick with the program. Debt counseling typically takes longer to repay debt or has a much higher monthly repayment plan.
Debt settlement - debt negotiation
The principal balance of unsecured debt is negotiated to reduce the balance owed to get out of debt faster. Debt settlement may impact credit scores; however, if your credit is already bad and if you don't endure the longer debt repayment plan of credit counseling, then debt settlement may be best for you.
Bills: It can be extremely difficult when being in debt becomes a problem. Yet, credit counseling has proved to be beneficial for millions of people having to face debt issues. The first sign there could be a problem, is rejections when seeking credit. Lenders will view their applicant's credit status before approving any loans, and if credit is not good, they reject the applicant.
Credit counseling has helped people who have been unable to pay all their bills, and who have exhausted all means to solve their problems without professional help. Counselors can train people how to spend responsibly, even when using credit cards, and how to manage debts that have been owed far too long.
Lending institutions do not like to get missed or late payments. Just like people expect to get their paycheck, creditors like for their customers to pay their bill on time. People often get into money problems when they carry too many credit cards and they over-spend, thus ending up with high card balances. When they ignore the bills, late fees and higher interest rates could be added which leads to being more in debt.
A credit counselor may be able to help people who are in debt, by reviewing their finances. They can figure out how much a person owes and analyze some spending habits that are causing bills to go unpaid. Along with this, they figure the net income and expenses, and work out a plan for an affordable monthly payment. They are able to educate clients about how to manage their finances productively.
Counselors may recommend negotiating with creditors for revised repayment options, or to consider credit consolidation. They know the types of available solutions, because they are experts at what they do, and they are very knowledgeable in their area. They are good at explaining credit report scores and the types of credit inquiries that appear on the report. They can give valuable tips on how to repair credit and financial tools to use to rebuild scores. When all options have failed, credit counseling programs may be a resource to use to get debts under control
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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.
DebtConsolidationCare.com Review
Get FREE counseling and analysis. With proper help you can:
* Lower your monthly payments
* Reduce interest rates
* Waive late fees
* Reduce collection calls
* Avoid bankruptcy
* Have only one monthly payment
Self-help kit to help you resolve debt
* DIY Debt consolidation
* DIY Debt settlement
* DIY Debt management
What's more?
* Best free way to plan your budget
* Compare debt relief plans
* Learn how to handle collectors
* Learn how to settle debts yourself
31 Sample Debt/Credit Letters
* Debt Validation Letter
* Debt Verification letter
* Counter Offer for Debt Settlement
* Debt Settlement Agreement
Best free way to plan a budget and simplify your finances
* Track your income and spending
* Have better control over your money
* List your income and allocate your funds
* List your expenses and Calculate your savings
* Get budget report & Compare income/expenses
* Find where you can save more
* Set easy goals & stay under budget
Here's an example of how consolidation works: Suppose you have accumulated debt on 2 credit cards, as well as medical bills and a personal loan. The details of these accounts are:
Outstanding balance on credit card X (15%) - $15000
Outstanding balance on credit card Y (20%) - $12000
Amount you owe on medical bills (13%) - $13000
So, the average interest rate = (15% + 20% + 13%)/3 = 16%
After you enroll in a consolidation program, the interest rates on your debts are negotiated down to:
Credit card X - 10%
Credit card Y - 16%
Medical bill - 10%
So, the average interest rate = (10% + 16% + 10%)/3 = 12%
Now if your total debt amount is $40000, you'll save = (16% - 12%) * 40000 = $1600 per year
How our community helps you: With over 237,000 members, our community gives you the strength and support to resolve financial problems on your own. Here are the benefits of being our community member.
* Forums: Discuss your problems and get free debt advice from our community members. The members share their real life experiences on how to deal with creditors and collection agencies and give right advice on debt consolidation, settlement, management, mortgage, personal finance, budgeting, tax, bankruptcy, chexsystems, credit repair, loans, etc.
* Debt calculators: These are financial tools that help you calculate your debt and figure out how much you save by consolidation or settlement. There are tools to determine how long you'll take to pay off your credit cards and how much you need to pay monthly. Then there are calculators which help analyze your debt and income and calculate the APR on your loan. Finally, there are calculators to help you choose the debt plans suitable to you. In short, you can determine whether or not you should get debt consolidation help or go for settlement, interest rate arbitration or bankruptcy.
* Earn dollars: Our community rewards you for your valuable contribution in the Forums, Social Answers and other community activities. Community members can get credit points for making posts in Forums and Social Answers. They can encash these points in dollars to make money. In total, there are 7 simple ways to earn dollars in our community.
* Get recognition: Our community appreciates your valuable contribution and gives you the opportunity to earn recognition as "Hall of Fame" member, "Debt Samaritan", "Moderator" and an Expert. Apart from that, the community also gives you a golden opportunity to be recognized as a financial writer by writing articles for DebtCC Wiki.
Top rated articles to help you lead a debt-free life
* 7 Steps to become debt-free: Getting rid of debt isn't impossible but you need to plan your way out of it. Becoming debt free is a realistic goal. You can achieve it by putting your heart and soul into it. Right financial planning and proper budgeting are some of the key steps you need to take for becoming debt free. Check out 7 steps on how to pay debt off and achieve financial freedom.
* Debt consolidation loans: Banks and financial institutions often provide you with unsecured personal loans to consolidate debts. After the consolidation of debt with the new low interest rate loan, you only need to make a low single monthly payment to the financial institution. This is also known as loan consolidation. However, bad credit debt consolidation loans are hardly available because banks and lenders may consider you as a high risk borrower if they find too many negative items on your credit report.
* Credit card consolidation: With this option, you consolidate debt on credit cards and get rid of bills with one monthly payment instead of many. Here, the debt consultants of America talk with the credit card companies and arrange an affordable single monthly payment for you. If you're in military service, you may qualify for military debt consolidation program that'll help you pay off credit card debts with a small monthly repayment.
* 6 Types of debt solution: Compare and contrast debt consolidation, settlement and other ways to resolve your credit problems. Know about each and every debt service or solution in details. These 6 types of debt solutions can help you put your debt behind and lead a financially happy life. Find out what impact they can have on your credit score and choose the one that suits you the best.
* Christian debt consolidation: It works similar to any other consolidation program. The only reason why it is called Christian consolidation is because it is based on the Christian principles which believe in serving one master, that is, God. Since man cannot serve 2 masters at the same time, hence he can get help from Christian consolidation services and free himself from the bondage of debt. That's how he'll find out time to serve God and live the Christian way of life.
* Bill consolidation: Under this program, interest rates on credit card bills, medical bills or utility bills are lowered and any late fees or over-limit charges may be eliminated to help you pay off debt conveniently. So, you pay less toward your bills and save money each month. You can use the money to pay off other debts or contribute toward your retirement/future savings.
* Credit counseling: This is an option in which you seek debt advice from a credit counseling agency that is a member of the NFCC (National Foundation for Credit Counseling). The credit counselors help you with budgeting and money management advice and offer tips on how to manage multiple bills conveniently. The credit counselors also communicate with your creditors to reduce the interest rates on your outstanding loans if you are unable to handle your debts even after the initial counseling.
* Debt consolidation non profit: This is similar to any consolidation program but it is offered by a company that has obtained the non-profit status from the IRS. Debt consolidation non profit programs are not available for free. Either you'll need to pay lower fees or make voluntary contributions to take advantage of these prog
Contact Numbers: For free consultation: 800-debt-913 (between 9 AM and 6 PM PST) General queries: 775-297-8585
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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 after Death - Managing Debt Following the Death of a Spouse (Husband or Wife) - Copyright 2009, Consumer Credit Counseling Service of St. Louis formerly Consumer Debt Counseling (CDC). All Rights Reserved
The last thing anyone wants to think about after the death of a spouse is dealing with their financial matters—but the reality is, it has to be done. Managing debt and other financial obligations can be a daunting task, especially if financial records are disorganized or unavailable. Taking proactive steps now to avoid an unnecessarily difficult situation from occurring can save you from experiencing added stress down the line. And if you need help with debt management, consumer credit counseling services agencies, commonly known as CCCS are available to guide you through the process of repaying debt owed to creditors, and learn ways of coping with living on one income.
Perhaps the most difficult part of this process is determining what to do first. Consumer Credit Counseling Services (CCCS) agencies like ours advise that good organizational skills are a key part of effective debt management for any situation.
Begin by making a list of all financial obligations and concerns. It is probably a good idea to separate the list by which financial matters are solely your spouse's, and to which you have a joint obligation. Having a list will help you to get a handle on the scope of the debt management and financial issues you will have to address. Your list may include the following items:
Documents to Gather:
* Copies of Will and Trust
* Insurance policies
* Birth and Death Certificates
* Retirement plan documentation (pensions, social security benefits)
* Tax documentation (related to income or property tax)
* Funeral arrangements (service and burial costs)
When you have completed your list, you will have to prioritize which items will need to be dealt with first, and from which third-party professionals you will need assistance. For example, you may need the assistance of an attorney to arrange the will and trust, or an investment advisor to address your long-term investments. When it comes to debt management, a Consumer Credit Counseling Services agency like ours can help you with ways to keep up your payments to creditors and learning how to budget effectively.
Our CCCS Agency Says Know Your Rights and Obligations: To manage debt most effectively, you need to be educated about your legal rights and obligations as a consumer. It is important to understand what your financial obligations are beforehand so that you know what you could encounter should your spouse pass away. An attorney can advise you on the legal details and a consumer credit counseling service can assist with debt management concerns. Some questions to consider are:
1. Have I co-signed on any outstanding loans or credit cards? If your deceased spouse carried a credit card solely in his/her name, many creditors will write-off the debt owed then. On the other hand, if you have co-signed on a credit card that has outstanding debt, you will be responsible for managing and paying back that debt.
2. Is my state of residence considered a community property state? If you live in any of the following states, your property and assets are considered to be jointly owned.
* Arizona
* California
* Idaho
* Louisiana
* Nevada
* New Mexico
* Texas
* Washington
* Wisconsin
Credit accounts opened by a married couple are also considered to be joint accounts in community property states.
3. Did my spouse have assets that could be subject to probate? The term "probate" refers to the legal process of determining the validity of a will and estate. Creditors have the right to submit claims on debt that is probated. This process varies from state to state so it is important to have an attorney explain the process since it could affect the value of assets a surviving spouse is entitled to.
Get more information about debt, and read our articles related to unsecured debt.
Chargeoff credit card - How to charge off credit card balances yourself, or get professional help from a debt settlement company.
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Can I get debt relief without hurting credit? First, it's not the credit
counseling agencies themselves that may pose a risk to your credit scores. By
the time you need help from one of these nonprofits (and you should use a
nonprofit), you've probably already hurt your credit. So, what you are asking
is: Does participating in a debt repayment plan set up by a legitimate,
nonprofit credit counseling agency hurt your credit score? The answer is in
general, no. But that's a no with a caveat. If you aren't careful, and you hook
up with a scam agency or a poorly run one, the money you send every month to the
agency to forward to your creditors as part of the payment plan could be sent
off late. It's the late payments that can damage your credit even further. In
other words, if the agency doesn't pay the creditors on time, that does, or can,
get reported on your credit report.
