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.
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.
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DebtConsolidationCare.com Review
Get FREE counseling and analysis. With proper help you can:
* Lower your monthly payments
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* Have only one monthly payment
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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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Debt after death - What happens to debt by a deceased person? AARP.org Copyright 1995-2011, AARP. All rights reserved
Are you responsible for a dead relative's unpaid bills? Debt collection agencies frequently employ specially trained representatives who make sympathetic calls to husbands, wives, children and other family members to urge them ever-so-gently to pay what the loved one owed.
But you can hang up. - "There is an orderly court process, called probate, for the collection of a deceased person's debts," says Sally Hurme, senior project manager of health and supportive services at AARP, "and it doesn't include harassing calls from debt collection agencies."
Such calls are frequently successful, with some families believing it a matter of honor to pay family debts. But a consumer alert, "Paying the Debts of a Deceased Relative: Who Is Responsible?," published by the Federal Trade Commission, warns that a surviving family member usually has no legal responsibility for the debts of a deceased relative. According to the FTC, typically only a surviving spouse can be required to cover the deceased's debts, but even that obligation may be limited, as Matthes learned the hard way.
"You really need to consult an attorney in the state where the will has been filed," says Martin Shenkman, a New York attorney who specializes in estates. "The impact of state laws can be significant."
Creditors file during the probate process, and debts - whether an electric bill or a mortgage - are paid out of the estate before disbursements are made to heirs. Often secured assets - like a house or a car - have to be sold to pay the deceased's debts. If there is not enough in the estate, debts typically go unpaid, but it's possible that legitimate creditors can completely deplete an estate, leaving nothing for the heirs.
Here's the bottom line when dealing with debt collection agencies:
* You do not have to speak with debt collectors who contact you about the debts of a deceased relative. Refer them to the executor or administrator of the estate.
* Do not give out any personal information. There are scam artists posing as debt collectors who check obituaries and then contact relatives.
* To stop a debt collector from calling you, send a certified, return-receipt requested letter saying that you do not wish to be contacted again.
Report any problem with a debt collector to your state attorney general's office and the Federal Trade Commission. For more information, you may decide to consult with your debt advisors.
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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Collection Agency Contact - When a collection agency calls you, don't be afraid to answer the phone. Answer and ask these questions: What is your company name? What number do I call to supply new information or to ask additional questions? Where are you located? Who claims I owe this debt? If you do not recognize the debt, demand the agency to mail proof to you. If the agency cannot provide proof, you can send them a cease and desist letter which also forbids them to place a bad credit entry on your credit report.
Personal Credit Advice: If you are short of money and a bill is due that will result in a late payment penalty fee, what can you do? Charge the bill to your credit card, because the interest on it may be lower than the late fee. If you don't have a credit card due to bad credit, get a payday personal loan to fill the temporary cash shortage.
