Reduce Debt - Debt Reduction Plans
The popular saying goes that "A man who can manage his finance well can also manage his life well". A person's credit report is a proof of how organized a person is in his financial arena. It is a very important document based on which a person is eligible to apply for loans. Thus it is very important to maintain a clean credit report, especially at a time when the country is suffering from major debt problems. A good credit report increases your financial credibility and makes you eligible for loan approvals. But at times there are some mistakes in the credit report which hampers your financial status in a big way.
Sometimes you can become a victim for the misleading information in your credit report. In such cases there is a stipulated time for the reporting period, which is generally seven years. There is a standard method for calculating the seven-year reporting period. Generally, the period runs from the date that the event took place. But there are a few exceptions to this rule too.
Any delinquent account placed for collection both internally or by reference to a third-party debt collector, whichever is earlier-charged to profit and loss or subjected to any similar action. The seven-year period is calculated from the date of the delinquency that occurred immediately before the collection activity. For example, assume that your payments on a loan were late in January, but that you caught up in February. You were late again in May, but caught up in July. You were again late in September, but did not catch up before the account was turned over to a collection agency in December. You made no more payments on the account and it is charged to profit and loss in July of the following year.
Under the FCRA, each of the January and May late payments can be reported for seven years. The collection activity and the charge to profit and loss can be reported for seven years from the date of the September payment, which was the delinquency that occurred immediately before those activities.
However there are exceptions to this seven years reporting act. There is no time limit in cases of bankruptcy, criminal conviction, student loan, information on a lawsuit or unpaid judgment and in case of credit information in response to a job application.
But even after knowing the pros and cons of maintaining a good credit report we tend to get into debts. You may have debt problems for illness, education and your home loans or even for careless spending. But whatever the reason one should strive to get free from it. It is not an impossible task at all. These days debt consolidation is undoubtedly the best way to get you free from debts.
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07-27-2006, 01:56 PM
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Reduce Debt - Debt Reduction Plans
Good Day Everyone
 I am recently divorced, and recently in credit card debt up to my **** and over my head. I cannot believe how naive I was to think that I could float along for a while paying bills with my zero% interest credit cards. I thought that I'd be able to keep rolling my balances to zero% cards. But the financial dry spell lasted much longer than I could have anticipated, and my emotional state didn't help. Here's the deal. I have 16,000 in credit card debt (on 4 different cards/two different creditors- Chase and Citibank)that is 90 days behind on payments. I just couldn't pay them anymore once my credit limits were used up, because that's how i payed my bills. Now, I'm trying to get approved for a loan to buy a home. I want to get my credit card debt paid off and repair my credit. I was recently fired from my day job, for missing too much work (two bouts with strep throat, and a back injruy within a month) But I wasn't planning on staying there anyway. It was a factory job that I was doing during the summer when I had planned to go back to school in the fall. Not enough financial aid for me to go back to school and not have to work, so I still would have had to work full time and take at least 15 semester hours. I decided not to go back to school this fall, but was still at the crappy factory job. (Enter remedy: I got canned) Now, I'm interviewing/testing/sending out resumes, but I need to also get my debt under control and paid off. I spoke to a guy today who called me after I entered my info online about debt consolidation. I don't have the budget to anything but debt settlement or Bankruptcy. He suggested Hess and Kennedy. He quoted me a payment of $238.05 per month for 40 months. This is for my $16,000 in credit card debt, which he said they would reduce and accept around .40 on the dollar. PLEASE TELL ME EXACTLY WHAT THIS "Debt Settlement" WILL MEAN TO ME AS A CONSUMER. MY GOAL IS TO REPAIR MY CREDIT (And pay off my debts) SO I CAN GET A HOUSE LOAN. HOW WILL IT AFFECT MY CREDIT? (keep in mind, that i've been paying nothing at all for the past three months, so something's better than nothing, right?) WILL I STILL BE RESPONSIBLE TO MY CREDITORS AS WELL AS HESS AND KENNEDY ONCE THEY DO THE SETTLEMENT? The loan company wants some sort of proof that I am going to pay my debts to the credit card companies. If I settle, will this be a mark against that? I will ask the loan officer this too, but I always want to get unbiased opinions. THANK YOU THANK YOU THANK YOU FOR ANY AND ALL INFO AND ADVICE!!! ****Adult term removed - Jason 
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07-27-2006, 02:13 PM
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Hey, Welcome to the settlement world.
Your settlement company will charge you a small monthly fee more than likely out of your total monthly payment, then they set aside the rest to put in YOUR acct to build up. Ok, you will keep the company up todate with all current activity on all your accounts and the settlement company will negotiate with your creditors. Keep in mind that this will not happen quickly and will more than likely take the full time estimated by Hess and Kennedy. Your credit score will drop while in the program, however once completed I have been told that it should bounce back up with your accts showing "settled" or "paid in full". No, once the account is settled they should not ever bother you again. GOOD LUCK.
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07-27-2006, 02:13 PM
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First confirm whether the debt management company will be offering you a settlement program or a consolidation program. A consolidation plan is better than a settlement plan out of the two. If you take any of these programs, it will be reported in your credit file and show that you are making the payments through the plan. Consolidation stays in your file as long as you are enrolled in the plan. But a settlement stays in the file for 7 years even though you might have finished the program earlier.
The creditors receiving payments from you in the settlement plan will report your accounts to the bureaus as 'settled'. This will indicate your future lenders that you were unable to pay the full debt and hence have settled for a reduced amount. But, if the accounts are paid off, this negative mark might be overlooked when you are shopping for credit. The lenders are keenly interested to view your past accounts paid off so that you don't pose any risk to their money in the future. Consolidation program has a very good impact. The best choice would have been if you had paid the accounts on your own. But since you use the professional help, it is much better than leaving the accounts delinquent and ruin your credit. These debt management programs will help in paying off your accounts and improve your credit. If you can't make the payments on your own, feel free to choose any of the debt management programs. Give consolidation plan more priority than a settlement plan. If you are unaware about how these programs work, take a look at the following pages. It will help you in understanding how each of the plans work individually. http://www.debtconsolidationcare.com/benefits.html http://www.debtconsolidationcare.com...ettlement.html Assess your financial situation and if you are able to afford the monthly payments set in the program, go for the consolidation first. If this is not the option, choose the settlement plan. This is far better than filing for bankruptcy. If you have any queries, feel free to ask.
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07-27-2006, 03:32 PM
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Thanks to both of you (linda and Guns n Roses) for your replies. The info is great.
I would love to do debt consolidation instead of a settlement. I'm considering some pretty major life changes so that I can make it on my own as well as start making a dent in these debts. If I move out of my apartment, and live with someone or stay with family or friends, I'd be able to afford the consolidation. I haven't looked into it as closely because I didn't think I could swing it, but depending on the monthly payment, I might be able to. I entered my info on the site, so I'll wait for someone to contact me regarding my options as far as payments per month, etc.
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07-27-2006, 04:24 PM
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Yes, you must discuss your accounts with the consultant and get your free quote. This might be your first step in repairing the credit for good. Remember, once you have started any of the programs, don't miss your payments. Even though if there are situations of financial crisis, give priority to the consolidation payments. If you miss it, you will return back to where you find yourself now and will deprive from the benefits the creditors will be offering you. I hope that things get better for you.
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08-03-2006, 12:27 PM
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Question of When Payment to Creditor is Expected To Start
Hello,
A couple of months ago I decided to utilize your company to help me out with just debts that were accumulating as I had recently been let go at work. The two creditors were USAA and Bank of America. Bank of America is bugging me on a daily basis and taking down national forests in paperweight, and USAA has just now begun filling my answering machine and using up trees in paper. I would like to know that arrangements have been worked out and that payments to these creditors is in the works and due to begin paying out shortly. I believe it is now four or five months since I signed the paperwork and not only am I tired of being driven nuts by these creditors, I am just a little anxious to ensure that things are in resolve since, aside from your taking the money from monthly as agreed, I have heard absolutely nothing from you since those papers were signed and returned. Can you give me a status report on my case? I would greatly appreciate it. Thanks David A. Glass
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08-03-2006, 02:39 PM
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Hi David
It seems that you are placing this query to HK. Call them directly and know the status of the negotiations. They have responded to another member also. Read this http://www.debtconsolidationcare.com...bout13492.html
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08-06-2006, 04:53 AM
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Senior Member
Join Date: Dec 2005
Posts: 3,666
Credits: 36,602
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Hi,
Welcome to the forums I am working with a different settlement company. I am not to familiar with Hess Kennedy but I have heard good things about them. With that small of payment, you may want to consider debt consolidation instead. Plus, since you want to buy a house, this might be the best route for you in the long run. I am already a homeowner and wanted to get out of debt. I am working with a reputable company but I chose to go 18 months or shorter because I was finally in a position to make that type payment every month. I started out on a longer payment plan but it was shortened a couple of months ago when some other things cleared up. Now, my company is close to settling my first debt which will be a big relief. There are many factors to consider when entering into debt settlement so think about it if you consider it an option for you. My comany does credit repair at the end of the program so that is definately a plus down the road.
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08-19-2006, 01:08 PM
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Debt Settlement
I, too have built up an incredible amount of credit bills. Hess Kennedy, this far, has been or enormous help, although I have only been in the "program" for three months. Keep calling them and ask for details of whom they are contacting as to a settlement. Good Luck, - I am able to sleep better, but I caution you, be sure to keep in touch with whomever you decide to assist you in settling your debt. Mira's mom
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02-26-2007, 02:52 PM
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Hess Kennedy
Hess Kennedy stole my money. Do not do business with them!! Danger!!!
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02-27-2007, 03:50 AM
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Guest Posts
"Stole My Money" Guest poster, if you have had money stolen from you, I am the compliance officer of Hess Kennedy Company. I have complete authorization to make you whole for your losses. Send me an email info(at)hesskennedylaw.com, and copy a moderator in this forum. Give me permission to post all your email.
This will help all involved in this forum becuase if someone at Hess Kennedy Company is stealing, it is my job as compliance officer to stop the stealing.
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02-28-2007, 06:57 AM
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HESS KENNEDY
Yes i said stole my money you understand english guess not.
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04-23-2007, 08:46 AM
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Hess Kennedy get slammed
Just do a google search for HK, they get terrible reviews from current and former clients. Check out the Billings Gazette, Hess Kennedy is ripped as being a total scam!
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