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Wednesday, September 1, 2010
More Debt Information
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http://debtconsolidationway.com
http://debtconsolidationway.org
http://debtconsolidationway.com
http://debtconsolidationway.org
Thursday, May 20, 2010
New Law on Interest Rate Increases - How it Affects You Now!
The new credit card law makes many changes to how you are affected by creditors changes.
One of the most significant changes is how interest rate changes are handled.
The new law came into effect in February of 2010.
Prior to that credit card companies could raise interest rates on credit card balances for any reason or no reason at all. They called it Universal Default. You could be one day late on one of your accounts. That one single creditor may not have made any change in your account at all. But others seeing the late payment on your credit report were allowed to change their rates to the default rates. The default rates generally range from 24% to as high as 34%.
These rates could be changed anytime without warning. You can imagine the banks like getting the default rates. So they don't blink at grabbing them when they can.
The new law does not prevent that, but does change the method.
Now creditors are required to notify you 45 days ahead of significant change to your account including interest rate increases.
* The new rates only apply to charges made after the 45 days notice.
* You have a choice here you did not have before;
* You can Opt Out of the increase by closing the account.
* You will make the same payments, receive statements etc.
* But you also will not have access to the revolving credit you had before.
Creditors can raise rates:
* When an introductory period ends, unless you don't keep the terms of the agreement, make late payments etc.
* If the interest rate is a variable rate attached to some variable index.
* If you do not complete a workout plan you negotiated with your creditor.
* If you are more than 60 days late making a payment.
* The creditor must give the reason for the increase and must lower the rate back to the previous rate if the payments were made for 6 consecutive months.
* If you are discharged from the military active duty. Military accounts are capped at 6% for active duty service members.
So what happens if you decide to keep your revolving account?
The new interest rates are in affect for 6 months, at that point the account must be reviewed.
If you have made the correct payment, on time for 6 months and have not exceeded the credit limits the interest rates may be reduced.
The new law makes the creditors jump through a few hoops, but does not prevent you from huge interest payments. It does give the consumer some choices. Beware, if you are up against your credit limits and or are unemployed. Creditors are steadily reducing limits in an effort to reduce their exposure to risk. There could be worse things in store for people in financial trouble.
A good rule of thumb is to make every effort to keep your total unsecured debt under 30% of your established limits. That gives you some flexibility if you need it and prevents you from being perpetually buried in debt.
At Accelerated Debt Consolidation, we specialize in debt consolidation. Part of a professionally managed debt consolidation program is setting up your program to prevent interest rate surprises.
You really can payoff all your unsecured debt at much lower interest rates than creditor currently offer the general public and do it within the federal guidelines.
Hope that helps a little.
Use our CAUTION Page for more information.
For more information contact us Here or 800-810-5250
See our BBB Rating Here.
One of the most significant changes is how interest rate changes are handled.
The new law came into effect in February of 2010.
Prior to that credit card companies could raise interest rates on credit card balances for any reason or no reason at all. They called it Universal Default. You could be one day late on one of your accounts. That one single creditor may not have made any change in your account at all. But others seeing the late payment on your credit report were allowed to change their rates to the default rates. The default rates generally range from 24% to as high as 34%.
These rates could be changed anytime without warning. You can imagine the banks like getting the default rates. So they don't blink at grabbing them when they can.
The new law does not prevent that, but does change the method.
Now creditors are required to notify you 45 days ahead of significant change to your account including interest rate increases.
* The new rates only apply to charges made after the 45 days notice.
* You have a choice here you did not have before;
* You can Opt Out of the increase by closing the account.
* You will make the same payments, receive statements etc.
* But you also will not have access to the revolving credit you had before.
Creditors can raise rates:
* When an introductory period ends, unless you don't keep the terms of the agreement, make late payments etc.
* If the interest rate is a variable rate attached to some variable index.
* If you do not complete a workout plan you negotiated with your creditor.
* If you are more than 60 days late making a payment.
* The creditor must give the reason for the increase and must lower the rate back to the previous rate if the payments were made for 6 consecutive months.
* If you are discharged from the military active duty. Military accounts are capped at 6% for active duty service members.
So what happens if you decide to keep your revolving account?
The new interest rates are in affect for 6 months, at that point the account must be reviewed.
If you have made the correct payment, on time for 6 months and have not exceeded the credit limits the interest rates may be reduced.
The new law makes the creditors jump through a few hoops, but does not prevent you from huge interest payments. It does give the consumer some choices. Beware, if you are up against your credit limits and or are unemployed. Creditors are steadily reducing limits in an effort to reduce their exposure to risk. There could be worse things in store for people in financial trouble.
A good rule of thumb is to make every effort to keep your total unsecured debt under 30% of your established limits. That gives you some flexibility if you need it and prevents you from being perpetually buried in debt.
At Accelerated Debt Consolidation, we specialize in debt consolidation. Part of a professionally managed debt consolidation program is setting up your program to prevent interest rate surprises.
You really can payoff all your unsecured debt at much lower interest rates than creditor currently offer the general public and do it within the federal guidelines.
Hope that helps a little.
Use our CAUTION Page for more information.
For more information contact us Here or 800-810-5250
See our BBB Rating Here.
Monday, May 17, 2010
Up To Your Knees in Debt?
Debt is personal. It is not something that is spoken of in public.
That is sad, it is one reason so many people up to their knees in debt. Not everyone has a workable solution for how to get out of overwhelming debt. But they all have an opinion of people in that kind of debt.
The events of the past couple years have changed that a little. To little.
It doesn't matter how much you make, there is a level of debt that will be crippling for you.
And you can be sure there is someone out there willing to make your life even worse with their solution. The horror stories you hear always seem to be bad enough. Then a worse story comes along and the first story is forgotten.
The person that has not forgotten the first story is the one whom it affect most.
That is the nature of overwhelming debt. In the end it comes down to one person making a series of very uncomfortable decisions.
What to pay.
When to pay them.
Whether they need to be paid now, or even at all.
What about the car?
The kids need clothes too.
What about tuition?
Gotta pay the child support....
Or, the child support didn't get here again...
Just started a new job.
Just got laid off or fired.
Another interview with no response.
I am tired, somebody just tell me how to pay these bills. I don't want to get hurt more. Really, can't this process be made easier?
I have income and things I have to pay now. But how do I pay the rest off. I want them gone. I want them paid in full.
These are some of the things I hear daily.
The good news is there is a way to get all the priorities taken care of and pay off the debt.
Here are some simple questions you need to answer.
Did you get into this overnight? Yes or No
Are you hesitating to write the check that will pay all this off or is the money to pay it off not available at this time?
That is sad, it is one reason so many people up to their knees in debt. Not everyone has a workable solution for how to get out of overwhelming debt. But they all have an opinion of people in that kind of debt.
The events of the past couple years have changed that a little. To little.
It doesn't matter how much you make, there is a level of debt that will be crippling for you.
And you can be sure there is someone out there willing to make your life even worse with their solution. The horror stories you hear always seem to be bad enough. Then a worse story comes along and the first story is forgotten.
The person that has not forgotten the first story is the one whom it affect most.
That is the nature of overwhelming debt. In the end it comes down to one person making a series of very uncomfortable decisions.
What to pay.
When to pay them.
Whether they need to be paid now, or even at all.
What about the car?
The kids need clothes too.
What about tuition?
Gotta pay the child support....
Or, the child support didn't get here again...
Just started a new job.
Just got laid off or fired.
Another interview with no response.
I am tired, somebody just tell me how to pay these bills. I don't want to get hurt more. Really, can't this process be made easier?
I have income and things I have to pay now. But how do I pay the rest off. I want them gone. I want them paid in full.
These are some of the things I hear daily.
The good news is there is a way to get all the priorities taken care of and pay off the debt.
Here are some simple questions you need to answer.
Did you get into this overnight? Yes or No
Are you hesitating to write the check that will pay all this off or is the money to pay it off not available at this time?
Protect your Credit and Still Get Out of Debt
So what can you do if you have a need for credit.
Your interest rates have gone up a lot, so most of your payment is going to interest.
Your CC statements now show how long it takes to payoff debt based on minimum payments... and yours is showing 20 years!! You are not alone.
1. You could contact each and claim a hardship, that will get you an interest rate reduction. Usually temporary though. It can also ding your credit.
2. You could go with a program like Dave Ramsey's snowball plan. It works, but you still pay the highest possible interest. If you maintain timely payments your credit will be very good.
3. You could use another version of the snowball program, but lower your interest rates substantially through a debt management program. Your credit will still be very good. Simply put, more of you money will go to paying down your balance. So you debt will payoff much faster.
Banks like it when they get paid in full, so you benefit with a better credit score and become debt free in the process.
So how do you find a company you can trust?
Some criteria to consider:
BBB Rating, There are A+ rated companies. Use one of these.
Some of the nationally advertised companies are F rated. So be sure and check, no matter who you consider.
You will find debt settlement companies, either are rated very poorly or are rated NR.
The settlement industry is being heavily investigated by the FTC.
The BBB gets more complaints concerning settlement companies than anything else.
Ask how long a company has been at their current address, phone and or Internet URL. You are looking for stability here.
The biggest name in the credit counseling industry is funded primarily by the large banks. Guess where their loyalty is? That is right, they work for the creditors.
You want to hire a company that works for you.
There should be NO up front fees.
There should be a written guarantee.
You should be able to talk to a real human being, not a machine.
No personal information should be needed unless you are hiring them.
A toll free phone is good too.
If they are busy selling books etc, you can be sure their efforts are not in helping you manage your accounts. If you are battling debt, you don't want to be buying more stuff....
You don't need to buy things to get out of debt, you need to pay the debt.
You should be able to do this whole process online or over the phone. Physical office visits are not necessary.
Cutting up your credit card ceremony's are just plain demeaning. But there are companies out there that require that sort of thing.
You should not have to sign agreements that do allow you to use or apply for credit.
There really are some very good companies out there.
Do Not go with any form of debt settlement.... Simply put, it will destroy your credit. The damage here is serious. Bankruptcy is not a great option, but at least the collection calls are stopped cold. Between settlement or bankruptcy your credit will be ruined for 7-10 years respectively.
If you have a need to use credit for business, travel etc. you don't want to use settlement or bankruptcy.
Hope that helps a little.
Your interest rates have gone up a lot, so most of your payment is going to interest.
Your CC statements now show how long it takes to payoff debt based on minimum payments... and yours is showing 20 years!! You are not alone.
1. You could contact each and claim a hardship, that will get you an interest rate reduction. Usually temporary though. It can also ding your credit.
2. You could go with a program like Dave Ramsey's snowball plan. It works, but you still pay the highest possible interest. If you maintain timely payments your credit will be very good.
3. You could use another version of the snowball program, but lower your interest rates substantially through a debt management program. Your credit will still be very good. Simply put, more of you money will go to paying down your balance. So you debt will payoff much faster.
Banks like it when they get paid in full, so you benefit with a better credit score and become debt free in the process.
So how do you find a company you can trust?
Some criteria to consider:
BBB Rating, There are A+ rated companies. Use one of these.
Some of the nationally advertised companies are F rated. So be sure and check, no matter who you consider.
You will find debt settlement companies, either are rated very poorly or are rated NR.
The settlement industry is being heavily investigated by the FTC.
The BBB gets more complaints concerning settlement companies than anything else.
Ask how long a company has been at their current address, phone and or Internet URL. You are looking for stability here.
The biggest name in the credit counseling industry is funded primarily by the large banks. Guess where their loyalty is? That is right, they work for the creditors.
You want to hire a company that works for you.
There should be NO up front fees.
There should be a written guarantee.
You should be able to talk to a real human being, not a machine.
No personal information should be needed unless you are hiring them.
A toll free phone is good too.
If they are busy selling books etc, you can be sure their efforts are not in helping you manage your accounts. If you are battling debt, you don't want to be buying more stuff....
You don't need to buy things to get out of debt, you need to pay the debt.
You should be able to do this whole process online or over the phone. Physical office visits are not necessary.
Cutting up your credit card ceremony's are just plain demeaning. But there are companies out there that require that sort of thing.
You should not have to sign agreements that do allow you to use or apply for credit.
There really are some very good companies out there.
Do Not go with any form of debt settlement.... Simply put, it will destroy your credit. The damage here is serious. Bankruptcy is not a great option, but at least the collection calls are stopped cold. Between settlement or bankruptcy your credit will be ruined for 7-10 years respectively.
If you have a need to use credit for business, travel etc. you don't want to use settlement or bankruptcy.
Hope that helps a little.
Friday, May 7, 2010
Debt Help Without Ruining Your Credit!!
We are a full service Credit Counseling and Debt Management firm.
We are known for providing the highest quality Credit Counseling and Specialized Debt Management service in the industry.
You can see our Better Business Bureau Rating here.
Credit card debt can be drastically reduced through a properly administered Credit Counseling or Debt Management Program.
DEBT HELP is available WITHOUT ruining your credit.
See our Caution page now.
Then save time and trouble by filling out our Free Quote form.
We specialize in providing debt management services for consumers that must maintain credit.
With Accelerated you assume no risk at all.
Our firm offers a written GUARANTEE with our client agreement if it is determined that you are suitable for a Debt Management Program.
You pay no fees until you see that the job is being done as promised.
Many advertise on the internet these days are nothing more than marketing companies.
They only sell your name to other companies and you get harassed.
We do not collect, distribute, sell or share your information with anyone.
When you submit a Free Quote form to us you will be contacted by phone or e-mail only once.
If we speak with you again, it will be because you called us.
If after you receive your free debt consolidation consultation you feel our service does not suit your needs the information you submitted will be destroyed. It will never be passed on to any other organization.
At Accelerated Debt Consolidation, we specialize in debt consolidation. Part of a professionally managed debt consolidation program is setting up your program to prevent interest rate surprises.
You really can payoff all your unsecured debt at much lower interest rates than creditor currently offer the general public and do it within the federal guidelines.
Hope that helps a little.
Use our CAUTION Page for more information.
For more information contact us Here or 800-810-5250
See our BBB Rating Here.
CLICK HERE FOR A FAST QUOTE
We are known for providing the highest quality Credit Counseling and Specialized Debt Management service in the industry.
You can see our Better Business Bureau Rating here.
Credit card debt can be drastically reduced through a properly administered Credit Counseling or Debt Management Program.
DEBT HELP is available WITHOUT ruining your credit.
See our Caution page now.
Then save time and trouble by filling out our Free Quote form.
We specialize in providing debt management services for consumers that must maintain credit.
With Accelerated you assume no risk at all.
Our firm offers a written GUARANTEE with our client agreement if it is determined that you are suitable for a Debt Management Program.
You pay no fees until you see that the job is being done as promised.
Many advertise on the internet these days are nothing more than marketing companies.
They only sell your name to other companies and you get harassed.
We do not collect, distribute, sell or share your information with anyone.
When you submit a Free Quote form to us you will be contacted by phone or e-mail only once.
If we speak with you again, it will be because you called us.
If after you receive your free debt consolidation consultation you feel our service does not suit your needs the information you submitted will be destroyed. It will never be passed on to any other organization.
At Accelerated Debt Consolidation, we specialize in debt consolidation. Part of a professionally managed debt consolidation program is setting up your program to prevent interest rate surprises.
You really can payoff all your unsecured debt at much lower interest rates than creditor currently offer the general public and do it within the federal guidelines.
Hope that helps a little.
Use our CAUTION Page for more information.
For more information contact us Here or 800-810-5250
See our BBB Rating Here.
CLICK HERE FOR A FAST QUOTE
Thursday, May 6, 2010
Consumed By Debt?... There are Sharks in the Water!
The tremendous demand for debt management services today has created a national opportunity for unscrupulous operations.
They are exploiting consumer credit card debt problems to their advantage and damaging many people's credit in the process. It is extremely important that you understand the different types of debt management services available today.
BEWARE OF ALL SETTLEMENT PROGRAMS. SETTLEMENT ACCOMPLISHES NOTHING AND DESTROYS YOUR CREDIT.
Common Warning Signs, Avoid Firms That...
· DO NOT OFFER A GUARANTEE!
· Beware those companies that require payment by money order or cashiers check or try to get you to allow them to debit your checking account immediately.
Be especially wary of this because it is not necessary to make a payment immediately.
Most of your accounts will be accepted on our program before you even make your first payment.
· Run from those that require you to close and include ALL ACCOUNTS.
· Hang up those that retain your first payment as a set up fee. At one time in this industry that was a common practice. It could be done because creditors would re-age and account so there was no damage to a client’s credit. Today your credit score will take a hit for this. We do not retain any portion of a client’s payment to their creditors.
· Avoid the ones that require any personal information before providing you with a quote. Account numbers are not needed to provide a quote. All that is needed for a quote are the names of the creditors, the balances and the current interest rates.
· Offer many services like debt negotiation, IRS Help, credit repair and seem to be jack of all trades firms.
Debt Consolidation is a specialized, labor intensive process when done properly. Firms that have branched out into all of these related services are most likely having trouble internally.
· If you need a credit card for business or travel you will find the heavily promoted national companies require a client to include every account. They make you sign an agreement saying you will not apply for new credit while on their program etc. It is not a requirement to give up all credit to enter a debt management program here.
· If you need a new card prior to entering a debt management program, you may find one here that suits your needs credit card offers or try Cardratings.com
· Stay away from those that play “approval” games".
There are no approval requirements for debt management programs other than determining whether the creditors you have will be ones that will offer better terms, and whether you can afford the required payment. Those decisions are all yours!!
Beware those that collect your personal information and say they will find the “right” or “best” debt management company for you. These firms advertise on the internet and elsewhere and are just marketing or lead generation firms. They sell your name to other companies. Your name will be sold many times. We do not share your information with anyone.
· Advise you to include accounts that already have low rates - see chart at the on this page. Be sure to use the payoff calculator here. No personal information is required or asked for.
· Advise you to include Student Loans in your consolidation. Student Loans already have low rates, usually 7.75% to 8.25% and do not offer more favorable rates for debt consolidation plans. If you need help with student loans click here.
· Stay away from those that advise you to include credit union accounts with rates that are already low. There is no point in including accounts with low interest rates.
· Stay away from those that advise you to include the IRS.
IRS debt must be handled separately from the rest of the accounts in the consolidation. Accelerated Debt Consolidation, Inc. can advise you on how to handle your IRS problem through the proper source.
· Quote a set interest rate like "between 0% and 10%" instead of quoting each creditors rate individually. Each creditor dictates terms they will accept in any debt management program. Those terms do not change between agencies.
· Quote payoff times of "4 years" or "53 months" instead of giving you the individual payoff time for each creditor. When you have 7 creditors with 7 different balances and 7 different interest rates an answer like "4 years" or "53 months" is obviously coming from a telemarketers sales script not a Debt Management Professional. See our Payoff Calculator for payoff times and rates for your accounts. Nothing you put in this calculator is saved or used in anyway.
· Do you like "Cash Back Awards"…. Who wouldn’t…. In this industry, they are scams…. Stay away!!
· Stay away from those that quote an unusually low monthly payment especially if you have gotten higher quotes from other companies and have substantial balances totaling $30,000 or more. See How Your Payment Is Calculated.
· Debt Arbitration Or Debt Negotiation Services, these are wolves in sheep's clothing. Today it is also called Debt Settlement - This Is An Entirely Different Service Than Debt Consolidation. These firms negotiate with creditors to reduce the total amount that you owe.
This is NEVER a viable alternative for consumers that wish to maintain their credit.
What most debt negotiators don't tell you is that when they negotiate a reduced payoff amount, it is reported as a paid charge off or R-9 on your credit report.
You will pay income taxes on the amount that the creditors let you off of.
If a creditor settles a $10,000 debt for $5000, the $5000 is reported as income and you will be taxed on it.
In addition, the account/accounts will be R-9 charge offs on your credit report.
Debt Settlement / Negotiation is never for consumers who are current on their accounts and want to maintain their credit.
Let's take a look at traditional non-profit credit counseling services. These companies specialize in accounts for consumers that are already delinquent.
- They require consumers to include all of their accounts in the program.
There are several large, legitimate, non-profit credit counseling firms.
- These firms will only accept you as a client if you are already behind on your bills.
It is also important to be aware that many very large non-profit firms are not legitimate.
Many of these firms advertise nationally on television and the internet. They use their 501-C3 non-profit status to lead consumers to believe that they are some kind of public service.
It is these so called "non-profit" firms that should be avoided.
Many consumers and even credit advisors make the mistake of assuming that a non-profit firm is automatically legitimate, nothing could be further from the truth.
Some of the largest perpetrators of consumer fraud are non-profit 501-C3 companies. The "non-profit" feature of credit counseling firms was originally established because the creditors could write off the "fair share" distributions to these companies as a contribution.
This is not to say that all non-profit firms are bad, however whether a firm is non-profit or not is by no means a way of determining if they are legitimate.
The major creditors have rates and established minimum percentages of the balances that you owe. These terms are use to determine your minimum payment in the debt management program.
These are the same for all debt consolidation plans. In other words, one debt management company can't get you a lower rate or payment than another.
Minimum payment requirements and interest rates are the same for all legitimate debt management plans.
For example if you owed Chase Manhattan Bank $10,000. They want 2% of the balance or $10,000 X .02 = $200. They would reduce your rate to 6%.
You are essentially be converting a revolving account to an installment account.
You would have it paid off in approximately 5 years. These are the terms that you would get from Chase no matter which firm handled your debt consolidation.
Now let's take a look at how Accelerated Debt Consolidation, Inc. operates. If you are current on your account or even a bit behind and get them current without having to make back payments.
We can get the late and over-limit fees stopped.
Our main specialty is helping clients that are current on their accounts and need reduced rates while minimizing any damage to their credit.
At Accelerated Debt Consolidation, Inc. we can consolidate your high interest, high balance accounts while allowing you to keep some of your credit cards for essentials like business, travel or emergencies.
We service clients on a national level and can provide you with excellent references verifying our high quality service and customer satisfaction.
At Accelerated Debt Consolidation, we specialize in debt consolidation. Part of a professionally managed debt consolidation program is setting up your program to prevent interest rate surprises.
You really can payoff all your unsecured debt at much lower interest rates than creditor currently offer the general public and do it within the federal guidelines.
Hope that helps a little.
Use our CAUTION Page for more information.
For more information contact us Here or 800-810-5250
See our BBB Rating Here.
They are exploiting consumer credit card debt problems to their advantage and damaging many people's credit in the process. It is extremely important that you understand the different types of debt management services available today.
BEWARE OF ALL SETTLEMENT PROGRAMS. SETTLEMENT ACCOMPLISHES NOTHING AND DESTROYS YOUR CREDIT.
Common Warning Signs, Avoid Firms That...
· DO NOT OFFER A GUARANTEE!
· Beware those companies that require payment by money order or cashiers check or try to get you to allow them to debit your checking account immediately.
Be especially wary of this because it is not necessary to make a payment immediately.
Most of your accounts will be accepted on our program before you even make your first payment.
· Run from those that require you to close and include ALL ACCOUNTS.
· Hang up those that retain your first payment as a set up fee. At one time in this industry that was a common practice. It could be done because creditors would re-age and account so there was no damage to a client’s credit. Today your credit score will take a hit for this. We do not retain any portion of a client’s payment to their creditors.
· Avoid the ones that require any personal information before providing you with a quote. Account numbers are not needed to provide a quote. All that is needed for a quote are the names of the creditors, the balances and the current interest rates.
· Offer many services like debt negotiation, IRS Help, credit repair and seem to be jack of all trades firms.
Debt Consolidation is a specialized, labor intensive process when done properly. Firms that have branched out into all of these related services are most likely having trouble internally.
· If you need a credit card for business or travel you will find the heavily promoted national companies require a client to include every account. They make you sign an agreement saying you will not apply for new credit while on their program etc. It is not a requirement to give up all credit to enter a debt management program here.
· If you need a new card prior to entering a debt management program, you may find one here that suits your needs credit card offers or try Cardratings.com
· Stay away from those that play “approval” games".
There are no approval requirements for debt management programs other than determining whether the creditors you have will be ones that will offer better terms, and whether you can afford the required payment. Those decisions are all yours!!
Beware those that collect your personal information and say they will find the “right” or “best” debt management company for you. These firms advertise on the internet and elsewhere and are just marketing or lead generation firms. They sell your name to other companies. Your name will be sold many times. We do not share your information with anyone.
· Advise you to include accounts that already have low rates - see chart at the on this page. Be sure to use the payoff calculator here. No personal information is required or asked for.
· Advise you to include Student Loans in your consolidation. Student Loans already have low rates, usually 7.75% to 8.25% and do not offer more favorable rates for debt consolidation plans. If you need help with student loans click here.
· Stay away from those that advise you to include credit union accounts with rates that are already low. There is no point in including accounts with low interest rates.
· Stay away from those that advise you to include the IRS.
IRS debt must be handled separately from the rest of the accounts in the consolidation. Accelerated Debt Consolidation, Inc. can advise you on how to handle your IRS problem through the proper source.
· Quote a set interest rate like "between 0% and 10%" instead of quoting each creditors rate individually. Each creditor dictates terms they will accept in any debt management program. Those terms do not change between agencies.
· Quote payoff times of "4 years" or "53 months" instead of giving you the individual payoff time for each creditor. When you have 7 creditors with 7 different balances and 7 different interest rates an answer like "4 years" or "53 months" is obviously coming from a telemarketers sales script not a Debt Management Professional. See our Payoff Calculator for payoff times and rates for your accounts. Nothing you put in this calculator is saved or used in anyway.
· Do you like "Cash Back Awards"…. Who wouldn’t…. In this industry, they are scams…. Stay away!!
· Stay away from those that quote an unusually low monthly payment especially if you have gotten higher quotes from other companies and have substantial balances totaling $30,000 or more. See How Your Payment Is Calculated.
· Debt Arbitration Or Debt Negotiation Services, these are wolves in sheep's clothing. Today it is also called Debt Settlement - This Is An Entirely Different Service Than Debt Consolidation. These firms negotiate with creditors to reduce the total amount that you owe.
This is NEVER a viable alternative for consumers that wish to maintain their credit.
What most debt negotiators don't tell you is that when they negotiate a reduced payoff amount, it is reported as a paid charge off or R-9 on your credit report.
You will pay income taxes on the amount that the creditors let you off of.
If a creditor settles a $10,000 debt for $5000, the $5000 is reported as income and you will be taxed on it.
In addition, the account/accounts will be R-9 charge offs on your credit report.
Debt Settlement / Negotiation is never for consumers who are current on their accounts and want to maintain their credit.
Let's take a look at traditional non-profit credit counseling services. These companies specialize in accounts for consumers that are already delinquent.
- They require consumers to include all of their accounts in the program.
There are several large, legitimate, non-profit credit counseling firms.
- These firms will only accept you as a client if you are already behind on your bills.
It is also important to be aware that many very large non-profit firms are not legitimate.
Many of these firms advertise nationally on television and the internet. They use their 501-C3 non-profit status to lead consumers to believe that they are some kind of public service.
It is these so called "non-profit" firms that should be avoided.
Many consumers and even credit advisors make the mistake of assuming that a non-profit firm is automatically legitimate, nothing could be further from the truth.
Some of the largest perpetrators of consumer fraud are non-profit 501-C3 companies. The "non-profit" feature of credit counseling firms was originally established because the creditors could write off the "fair share" distributions to these companies as a contribution.
This is not to say that all non-profit firms are bad, however whether a firm is non-profit or not is by no means a way of determining if they are legitimate.
The major creditors have rates and established minimum percentages of the balances that you owe. These terms are use to determine your minimum payment in the debt management program.
These are the same for all debt consolidation plans. In other words, one debt management company can't get you a lower rate or payment than another.
Minimum payment requirements and interest rates are the same for all legitimate debt management plans.
For example if you owed Chase Manhattan Bank $10,000. They want 2% of the balance or $10,000 X .02 = $200. They would reduce your rate to 6%.
You are essentially be converting a revolving account to an installment account.
You would have it paid off in approximately 5 years. These are the terms that you would get from Chase no matter which firm handled your debt consolidation.
Now let's take a look at how Accelerated Debt Consolidation, Inc. operates. If you are current on your account or even a bit behind and get them current without having to make back payments.
We can get the late and over-limit fees stopped.
Our main specialty is helping clients that are current on their accounts and need reduced rates while minimizing any damage to their credit.
At Accelerated Debt Consolidation, Inc. we can consolidate your high interest, high balance accounts while allowing you to keep some of your credit cards for essentials like business, travel or emergencies.
We service clients on a national level and can provide you with excellent references verifying our high quality service and customer satisfaction.
At Accelerated Debt Consolidation, we specialize in debt consolidation. Part of a professionally managed debt consolidation program is setting up your program to prevent interest rate surprises.
You really can payoff all your unsecured debt at much lower interest rates than creditor currently offer the general public and do it within the federal guidelines.
Hope that helps a little.
Use our CAUTION Page for more information.
For more information contact us Here or 800-810-5250
See our BBB Rating Here.
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