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Archive for the ‘Debt Settlement’ Category

Famed billionaire investor Warren Buffett once said that if you find yourself in a hole, the first thing you must do is to “stop digging.” It may sound basic, but every day, people with massive amounts of consumer debt continue to dig themselves deeper into the red by spending as if there’s no tomorrow. If you know you’ve been over-spending, you must vow to end negative spending habits. This is crucial to fixing your finances. Let me put it another way: if you’re serious about chucking your credit card debt, you have to put an end to frivolous or excessive spending – starting today!

So many of us tend to make empty promises to ourselves and others: promises that we’ll spend less and save more; promises that next year we’ll get our act together; promises that with the next promotion or the next bonus or the next money that comes in we’ll make good use of that cash – anything related to whipping our finances into shape. It especially happens at the beginning of the year. Have you ever made a New Year’s resolution concerning your finances? More to the point, if you have such a resolution going forward, chances are you’ll need all the help you can get to stay on track. The December holiday season is the time of year that many of us tend to overspend – leaving us with big credit card bills, and the equivalent of a shopper’s hangover that lasts well into the following year.

For those of you determined to better manage your money, you don’t have to live a life of deprivation in order to get into the black. The best way to turn your financial resolutions into lasting changes is to take some concrete steps that won’t cramp your style, but will definitely improve your personal finances.

Here are some ways you can do just that:  Read the rest of this post on The Zero Debt Online Course. It’s free!

If you’re having trouble paying your bills on your own, yes, a debt management company can help. And contrary to popular opinion, simply enrolling in a debt management plan does not impact your credit score. Read this article on the differences between debt management and debt settlement companies, and learn why I strongly recommend debt management firms.  (Read More).

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A subscriber wants to know if she should select a debt management program or a debt settlement program.  Read this article to understand the difference between the two

If you’re having trouble paying your bills on your own, yes, a debt management company can help. And contrary to popular opinion, simply enrolling in a debt management plan does not impact your credit score. Read this article on the differences between debt management and debt settlement companies, and learn why I strongly recommend debt management firms. One excellent non-profit organization is the National Foundation for Debt Management (www.NFDM.org).

You should definitely attempt to continue negotiations with this law firm. I also think it would be a good idea to speak to a supervisor at the law firm. You may have to be persistent to go up the food chain and reach the supervisor. But it may prove very valuable to talk to a boss, instead of the phone representatives you’ve been dealing with. If you honestly can’t afford the $1,500 settlement they’re proposing, hold firm to your numbers ($1,200). Let them know that you’ve exhausted all other financial resources and that $1,200 is the most you can come up with in a lump sum payment. Also point out what the original loan/debt was. Sometimes, debt collectors will reduce or waive all those extra penalties, fees and interest charges that get added to a debt if you will only agree to pay the full amount of what was owed (minus those extra fees). It wouldn’t hurt to also get some free or low-cost legal assistance. I don’t know the laws in your state, but a qualified consumer attorney can explain your legal options and advice your of various alternatives.

Get online or consult a local phone book for a legal aid clinic in your area; that should help since you said you can’t afford to hire a lawyer. Finally, if you do wind up having to go to court, don’t neglect to go. Too often, people get scared and they simply don’t show up in court. Don’t make that mistake. If you fail to appear, a judgment will automatically be entered against you – in the full amount the attorneys seek. At least if you show up in court, you have a chance to present your side to a judge and to explain your financial circumstances.