Clear debts - 3 options and 4 tips to get you out of debt
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If you're getting deeper into debt and you're having trouble paying your monthly installments, look out for options to pay off your dues and get relief from your debt load. There are different ways to clear debts and reduce your stress. This article deals with some of the options you may choose in order to pay off bills and get rid of creditor harassment. Options to clear debts and get rid of duesThere are 3 options to help you pay off past due accounts and other bills. Check out the options given below. Option 1: Professional debt relief services Debt consolidation program: This is an option by which you can clear debts in consolidated monthly repayments. This means, you can replace payments on several bills with a single consolidated monthly repayment. Whether it is credit card consolidation or a program to consolidate payday loans, you can expect to have your interest rates reduced after a negotiation between your creditors and consultants at the consolidation company. The company will also negotiate for accounts which your creditors have sold off to collection agencies. Debt reduction: It is appropriate for those who're in financial hardship and cannot carry on with monthly repayments. Debt reduction programs are offered by settlement companies which talk to creditors or CA on your behalf and negotiate a reduction of your overall debt balance. Depending upon your financial situation and how much you owe, creditors may be willing to reduce your dues by 40-60% of what you owe. Credit card debt management: If your credit card debts are spiraling and you're in trouble managing multiple cards, you can go for credit card debt management programs. Once you enroll in such a program, consultants at the debt management company negotiate low interest rates with your creditors or CA and help you clear debts faster. Apart from the above programs, there are credit counseling services which offer you financial advice on how to clear debts. Credit counselors help you prepare a monthly budget and provide money management tips which enable you to deal with several bills at a time. Option 2: Self repayment plan With a self repayment plan, you take the initiative to write to your creditors and request them to lower your monthly repayments. If you have accumulated credit card bills, you can request your credit card issuers to cut down high interest rates. The creditors may even freeze your interest rates for a certain period of time. This will make it easier for you to repay your card balances. Just check out the 6 steps and 5 tips you should follow in order to clear debts with the help of a self repayment plan. Option 3: Applying for a loan to pay off dues You can take out a personal debt consolidation loan from a bank or financial institution and clear debts with a single lump sum payment. In order to get approved for the loan, you need to satisfy the lending criteria such as having good credit and income. A consolidation loan comes along with lower monthly payment and a longer repayment period. The longer your period of repayment, the more you have to pay back in overall interest. Just keep in mind that when you go for a loan to repay your bills, you don't get out of debt completely. You still need to pay off this loan in small monthly installments. 4 Tips to help you clear debtsWhen you're paying off your dues with or without professional help, follow the tips given below so that you don't get into trouble while making your payments.
If you're falling behind on your bills, contact your creditors asap and work out a payment arrangement you can afford. If you don't find it easy to communicate with creditors, seek professional help to negotiate with them in order to reduce your balance or lower your monthly repayments. Once you settle your dues or obtain low interest rates to meet up with your monthly payments, you'll be able to clear debts and get back on top of your finances. |
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#1
03-02-2006, 07:00 PM
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Clear debts - 3 options and 4 tips to get you out of debt
Hello,
I am needing to figure out how to take care of all of my debt. It's been about 3 yrs since I have had any contact from any collection agencies. I've ran a credit report and it has given me the following collection agencies and information: NCO FIN/99 ($1813.00) NCO FIN/22 ($2129.00) Midland Credit ($1213.00) CER STS REC (1634.00, 99.00) Discover ($1118.00) P&L write off(What Does This mean?) and LVNV Funding/ Sears Citi ($361.00) Where should I start? debt negotiation? I am at the point to clear all of this debt. Thanks for all the input and time. Thanks, T. Nguyen 
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#2
03-02-2006, 08:12 PM
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I would start with sending out validation letters to all of these companies,from your list,I can see that most of them are collection agencies,You want to make sure that there are no duplicate debts on your credit report,for example,maybe the write off from discover may now have been sent to NCO.Once you receive validation,consolidation will most likely be your best move.They will set you up with one monthly payment,and when you have more money you can increase your payments thru the consolidation company.You can get a free consultation from this site.If you can pay all of this off now,you will want to make sure that they change your credit report to paid as agreed once the payments are received.But validating these debts should be your first move.There is a sample of a validation letter on this also.Hope this helps some.
__________________
"No amount of time can erase the memory of a good cat, and no amount of masking tape can ever totally remove his fur from your couch." Leo Dworken
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#3
03-02-2006, 08:14 PM
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You could contact each and negotiate a settlement, if you have the cash OR you could contact a settlement company and have them negotiate for you.... they might have contacts at said companies and be able to negotiate better deals for you - so even if you have to pay them, you would might be ahead. Either way, be sure the negotiations include "Paid" or "Paid as Agreed" as the only acceptable account designations.
If you don't have the cash available to pay them all, I would start with the lowest balance and pay it, then next and so on and so forth. Good Luck! __________________
Life isn't like a bowl of cherries or peaches.... It's more like a jar of jalapenos. What you do today, may burn your butt tomorrow!
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#4
03-03-2006, 09:18 AM
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T. Nguyen,
You can definitely negotiate with all these agencies listed in your report by your own, but dealing with collection agencies might be a hectic job. That is the reason I will go for consolidation. The counselor will negotiate with all your creditors and collection agencies on your behalf and set up the payment plan for you. So you need not worry any more. I would also suggest you to check the SOL of these accounts. If they are past SOL, no one can legally force you to pay them. So it's completely your choice whether you will pay it or not. Any negative entry like charged-off, collection, etc stays on your report for 7 years from the date it was reported and goes off automatically after that. So please check if these accounts are near to 7 year reporting time or not.
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#6
07-20-2006, 04:05 PM
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NCO FINANCIAL SYSTEMS
PO BOX 41457 PHILADELPHIA, PA 19101-1457 800-873-5697
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#8
07-25-2006, 03:08 PM
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The contact number of NCO Financial is given above. This website has no connection with them. It's just a public forum where we discuss our debt problems.
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#9
11-15-2006, 07:57 AM
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Collection Agency
I just found out that my ex-husband has defaulted on a debt that he was suppose to pay off (according to the divorce decree). He has also added to the acct. The credit card company does not honor the decree and since the acct is under my name, they want me to pay. I had not received any info on it because it was going to his address. Now it is with a debt collection agency and they are willing to reduce the debt and have me pay it off, but I don't want to do this. Plus they are pressuring me to pay the settlement amount over a two month period. What are my options?
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#11
05-16-2008, 04:27 AM
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Quote:
If you delibrately do not plan to pay these debts because they will "fall off" your CR in a month, that is essentially stealing. In other words, you used those credit cards to buy things, and never paid for them. Start by sending the DV letters and go from there. Find out the "Date of last Activity" on these accounts and such, and take care of this in a responsible way. You'll be much better off for it. __________________
I am working hard to take care of my debt...any point donations are greatly appreciated!
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#12
05-16-2008, 07:13 AM
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I would suggest you definitely look into debt settlement. Your credit has already been affected basically as bad as its gonna get so why not save a lot of money and get this debt burden off you shoulders quickly. Debt settlement is going to get you out of debt fast so you will be in a prime position to reestablish your credit. A good settlement company will be able to settle these around 40-60%. I would suggest you shop around and compare different company's. There are alot of crooked one out there unfortunately so please be sure to look them up with the BBB to see if they have a good track record.
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#13
05-17-2008, 11:07 PM
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Go for debt consolidation....
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#16
05-18-2008, 08:22 AM
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Regardless of what strategy you intend to pursue, validation is key when dealing with collection agencies, especially the less ethical ones like NCO, Midland, LVNV, and that ilk. These folks are famous for scamming people out of the full balance on a debt they bought for pennies or may not even own at all. You want to make damned certain that you're dealing with the right company on each account, othrewise you could potentially be out the money with no change in your credit report. And your list includes three of the worst CAs.
There's a good DV [debt validation] letter here. Send it certified mail, return reciept requested. And be sure to print out and include the enclosure [FTC opinion letter.] Validation is a right, not a privelege. If the CAs cannot or will not properly validate the debt, don't pay them dime one. __________________
Wulfisms: my blog The four 'no's of dealing with collectors: No validation? No payment. No way! No kidding!! Tellin' you all the zomby troof Here I'm is, the zomby woof [Frank Zappa, 1988 - R.I.P.]
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