Everyone knows how difficult it is to get out of debt and stay debt-free. It is necessary to keep in mind that your debts can have a huge impact on your financial future. Bad debts will continue to stay on your credit reports for years. Unresolved financial obligations even have the tendency of haunting you for your entire life. The first step towards eliminating your debts is to understand your present financial standing. If you have amassed a huge amount of debt these past few years, then be aware that eradicating these financial obligations is possible through the following tips: [Read more…] about 7 Easy Tips To Get Out of Debt
People who are already up to their ears in debt would want to learn everything about obtaining professional debt help. This holds true especially if their huge financial obligations have already caused them to be unable to sleep better at night and face depression. If you need help with debt, then rest assured that there are a few professionals in this area that are willing to help.
It is even possible to obtain free debt help by researching the web for information about what you can do to restore the stability of your finances, and eliminate your financial obligations. Just make sure that your choice for a professional debt help provider is reliable to ensure getting your desired services, and restoring the normalcy into your life.
A sign, that a professional help is already needed, is if your non-mortgage obligations that usually include loans and credit cards exceed your annual salary after tax. This is because this means that you will be required to work over a year in order to repay such financial obligations.
What can a Professional Debt Adviser Do?
The best solution for those who would like to get help with debts is to assess their personal circumstance. This is crucial in taking the most suitable action to the problem. Seeking the help of a professional and reliable debt adviser is also beneficial. This is a professional who knows almost all of the aspects related to getting out of debt. Expect him to provide you with reliable and expert help with debt problems.
This professional adviser can provide help with debt by managing your income and expenses, working out all your debt elimination options, explaining the primary reasons for your financial issues to your lenders, and explaining steps that are already taken to reduce your financial obligations.
A professional debt adviser can also provide help with debt management by creating a detailed summary of your present finances. This summary is beneficial because it gives you a clear idea about the amount of money available to settle your debts. Other functions of a good debt adviser include negotiating with your lender to produce a more manageable debt than before and organizing and prioritizing your payments.
Benefits of Getting Help through Debt Consolidation
Debt consolidation refers to a solution in eliminating financial obligations, which is carried out by taking a single loan to pay off the others. The execution of this process is usually intended to secure a fixed rate of interest or low-interest rate. It is also useful in creating a manageable debt because it only involves repaying a single loan. Getting debt management help through consolidation is capable of providing numerous benefits to borrowers.
One benefit of seeking debt consolidation help is that it reduces your total payment amount. In most cases, the low-interest rate and long payment terms of the loan provided in this process will allow borrowers to reduce their monthly payments. The payments are usually lower than paying multiple loans individually.
Deciding to get debt relief help through debt consolidation is also very convenient. The concept behind the process is to combine your multiple monthly payments in one. This is convenient because it reduces the amount of your debt. This is also less frustrating and stressful than having to tackle numerous payments in a single month.
Debt consolidation also provides tax-deductible interest. This is usually the case for those who choose to get a second mortgage using their homes or acquire home equity loans with an aim of settling their outstanding debt balances.
Selecting the Best Debt Consolidation Company
While debt consolidation is a process which proves to be beneficial when it comes to obtaining the best financial debt help, be aware that the benefits you will receive still boils down to choosing the right company. A wise tip in choosing a debt consolidation company which can offer the professional help you need is to seek out good recommendations and referrals.
Ask your friends, associates and family members for recommendations. Keep in mind that these people are among those you trust. This means that they can offer unbiased opinions that are beneficial in formulating the most informed decision. Picking the right choice is possible by trusting the unbiased opinions given by your close friends and family.
Another tip is to ask questions. Talk to several debt consolidation providers to gather information about their offered services before finally hiring one. Make sure to understand the manner through which they work, the length of time that they will be working on your problem and the fees. These factors are beneficial in deciding whether a particular company works in your favor. By seeking the services of reliable consolidation companies, getting debt help direct from real experts and professionals is possible.
And remember – when in doubt, call an expert. A1 Debt Solutions is here to your debt questions and needs. Call us today at 888-248-4468
If you are a recent college graduate, a young individual in the business industry, a newcomer in the employment world or just someone who still faces challenges in managing your finances, then there is a high possibility that you will find yourself buried deep in debt. Credit card and medical bills, as well as mortgage and students loans, will tend to pile up in these situations.
The problem is that no one can wave a magic wand to eliminate all their bills. If your medical bills have already piled up, then be aware that getting medical bill help is possible. There are ways to get help for medical bills, and all it takes is to understand which among the solutions available for you can work in your favor.
Understand the Power of Negotiation
When planning to get help paying for medical bills, be aware that negotiation works. Note that everything is negotiable, and all it takes is to know whom to talk to and discuss your inability to pay a portion of the bill. Hospital or medical bills come with various expenses and fees like medications, surgery, anesthesiology, and x-rays. It is worthwhile to talk to the providers of these services to determine if they can cut or waive some fees. Who knows that by negotiating with these providers, you will be able to obtain help pay medical bills by reducing your fees. Just make sure to be polite and clearly explain your present financial situation so they can provide you your desired help.
When negotiating your medical bills, be aware that investigating the payment plans used by the hospital or clinic where you are is also beneficial. Spend time understanding the payment plans in the hospital so you will know if there is one, which can offer a tremendous help paying medical bills. In the majority of cases, hospitals are actually more forgiving than credit card providers. This is a good thing, especially when planning to reduce your bills.
Researching about the payment plans used by your hospital is also a good way to find out if you can negotiate your payments, or if they can set up a payment plan that will surely help to pay medical bills. Just be ready to explain your current financial situation with the hospital’s representatives to raise their willingness to offer help with medical debt.
Importance of Reviewing your Medical Bills
If you are seriously contemplating about where to find help with medical bills, then consider taking the time to review the presented bills. This is crucial in assessing the accuracy of the charges stated in your bills. Note that you can submit billing disputes to the right people in the hospital in case you see inaccuracies in your medical bills. It is necessary to raise the disputes before applying the expenses to a loan installment or credit card. This offers ease in lowering your hospital expenses.
Seek Help from Medicaid
Find out if you qualify for Medicaid since this program can offer tremendous help with medical expenses. Medicaid refers to a state and federal program designed for families and individuals with low income. The program is established by the federal government. Note that each state administers the program differently. Because of this, it is necessary to be familiar with how this program is administered in your state to get an idea about the requirements and qualifications. The program is useful in minimizing your future medical bills.
Debt Consolidation or Consultation Agencies
All communities have their own local debt consolidation or consultation agencies, and you can deal with these agencies if you want to gain immediate help with paying medical bills. Skilled debt consolidators or consultants will work towards contacting your medical clinic or hospital and negotiate your bills. They will try to negotiate with the representatives of the hospital and find out if a more financially flexible payment option and terms can be offered for you.
Just make sure to be careful when hiring an agency. Pick one which has a good reputation and long years of experience in the field. This increases your possibility of working with an agency with expert consolidators and consultants who are fully aware of how to minimize your medical expenses, if not eliminate them.
Other Potential Solutions
Other possible solutions to gain medical bill help is to take advantage of your medical insurance, disclose your income especially if it is low and make small payments as much as possible. When deciding which solution works best for your situation, it is crucial to assess your current finances and your health condition. This is valuable in determining which among the offered solutions can work wonders in minimizing your medical debt.
Remember – when in doubt, call an expert. A1 Debt Solutions is waiting to hear from you at 888-248-4468.
Debt scams are constantly rising in number considering the many borrowers, who are already very desperate to look for help in the full elimination of their debts. This desperation causes them to deal with fraudulent agencies that promise to offer help in the significant reduction of debt, but tend to escape after receiving the fees that they ask their clients to pay. Fortunately, there are ways to determine if a debt reduction or consolidation agency or professional is fraudulent, thereby preventing you from facing a debt scam. The following are few ways to avoid a debt solution scam:
1. Stay Away from Companies or People Asking for High Service Fees with Minimal Work
One of the warning signs, that you are on your way towards dealing with a debt consolidation scam, is when an agency asks you to pay huge monthly fees for getting their services. Note that most of these debt consolidation scams offer limited services while pulling huge sums of money from your bank account.
This is the reason why you need to be extra careful when searching for a debt consolidation company to hire. Note that the fees asked by these scammers may reach up to $450 every month. They also tend to receive payment before your creditors. This means that your chosen company will receive payment monthly without actually making great improvements in your financial situation.
2. Choose an Agency with a Reliable History and Good Records
This is one of the best solutions in avoiding debt elimination scam. It is crucial to assess the trustworthiness of its team by checking out its history and records before hiring an agency. Finding out if a company deserves your trust can help you stay away from debt elimination scams. Assess the company’s history and records by reading reviews delivered by its previous customers. This can truly help in figuring out if the company has a high satisfaction rate.
3. Gather More Information About the Loan you Plan to Acquire
Debt consolidation or settlement involves acquiring a single loan to settle all your other outstanding loans. To avoid a debt settlement scam, it is advisable to gather a lot of information related to the loan you plan to acquire including its benefits, consequences, terms and interest rate. Keep in mind that being well-informed is the key towards effectively preventing debt settlement scams.
A wise tip in gathering information is to drop by the office of your chosen company. Talk to its representative personally. This is helpful in your attempt to ask all the necessary questions, thereby giving you a clear view of what its debt settlement or consolidation team can offer. Make sure to avoid companies that are unwilling to share more information about their offered loans and services. Note that this serves as a warning signal that they are hiding something.
4. Avoid Fixers as Much as Possible
Preventing debt relief scams is also possible by avoiding fixers whenever possible. These are people who usually provide promos to borrowers and promise to make things more convenient and easier than trying to fix their debts on their own. Note that these fixers might cause you to face more problems in the end, so be careful. These fixers might also promise to do some work for you like paying bills to avoid spending time going to the office.
Avoid trusting other people to handle money-matters for you since this will not offer a hundred percent assurance that they will not run away. It should also be noted that most genuine and legal debt consolidation companies accept payment either through wire transfers and cashiers, not fixers. If you do not want to fall victim into a debt reduction scam, then consider minimizing your trusting ability.
5. Stay Away from Companies that Promise Quick Fixes
Staying away from agencies that tend to promise quick fixes is beneficial in preventing a debt relief scam. Remember that there are no immediate cures when it comes to getting out of debt. You will have to go through a process with gradual results. It is for this reason why you need to be wary of someone who promises quick results.
6. Put your Agreement in Writing
If you already make your choice for a debt consolidation or settlement agency, then the next step is to ask them to get all their proposals and offered services in writing. Make sure to have a written agreement. Details that should form part of the written agreement include fees, terms and interest rates. This increases your chances of receiving genuine services.
Debt resolution scams are continuously rising, so borrowers should work hard towards ensuring that their desperation to receive debt help will not cause them to deal with fraudulent agencies. With the help of the tips above, preventing scams in the debt settlement industry is greatly possible.
…and remember – call A1 Debt Solutions at 888-248-4468 for all of your debt questions and needs.
The Truth About Good and Bad Credit
The first thing you need to know is that there is a huge difference between “good credit” and “good payment history”. They are not the same and many consumers mistakenly believe that making payments on time equals good credit.
Often when I am counseling individuals in debt crisis they will express to me that they don’t want to do anything that will affect their “good credit”. They may even have a good FICO score, but that still does not necessarily mean they are a good credit risk in the eyes of a lender. They believe they are creditworthy because they have never (or seldom) been late with a payment. They guard their good credit carefully and often make financial decisions based on misinformation.
Let’s take a look at how credit reports are compiled and credit scores determined.
In their efforts to evaluate consumer creditworthiness, creditors depend on credit reporting bureaus to supply reports that provide more specific consumer information. Credit reports contain personal information, account history, payment history, legal information and information about inquiries. When a consumer completes a credit application many creditors submit the information on the application to credit bureaus. This is how credit bureaus compile personal information. Many credit institutions hire companies to research and verify information.
But how is your “creditworthiness” actually determined? Well, it depends on who is looking at your credit and for what purpose.
I hear people say, “My credit is good, I just got approved for another credit card”. If you have applied for a new credit card, the credit card banks only concern is whether or not you make your payments. The banks buy lists of names from the credit reporting agencies of people that have been making their payments (they don’t even have to necessarily make the payments on time). This is usually all it takes to qualify for additional credit cards. They may ask about income but they don’t make much effort to verify it. So, a lot of consumers end up on the credit card merry-go-round: use your income to pay the credit card bills and other debts every month, and then live off the credit cards. When the limit gets close, play the “balance transfer” game by getting a new card with a deceptively low introductory interest rate. This allows people to continue to pile up debt while living off new cards.
The banks are not blind to this. This is right where they want you, paying and paying with no end in sight! So here you have “qualified” for a new card, but this is NOT the same as being creditworthy. You are just being snared deeper into the credit card trap.
Mortgage companies and automotive lenders, on the other hand, look closely at income as it relates to debt or debt to income ratio. This is where you need to be creditworthy and not just able to squeak by every month by overextending yourself on credit cards.
Here is a sample calculation: Let’s say your monthly income is $3000 (gross). The maximum mortgage debt to income ratio for a mortgage is 40% or $1200. Your current credit card payments are $500. You have a car payment of $350, your total is $850. The amount you have left for a mortgage payment is $1200 – $850 or $350.00. Take out taxes and mortgage insurance of about $130 and you are left with $220. At an interest rate of 7%, you qualify for a loan of about $40,000 or less. Now I don’t know about your neighborhood, but that wouldn’t buy anything in my neighborhood.
The truth of the matter is most people are paying more in credit card debt than the $500 we used in the above example. They are NOT considered creditworthy and don’t have “good credit”.
By the way, if your balances are high, lenders see this as a sign that you are overextending yourself and dependent on credit to maintain, or artificially enhance, your style of living. It can be regarded as an indication that you are not in control of your spending habits. Carrying high balances, exhausting available credit limits and using balance transfers may be considered the unreasonable use of credit and will weigh against you.
So what is the solution? It is really quite simple. Change your debt to income ratio by paying off your credit card debt.
But wait…you say you are having a difficult time even paying the monthly payments on your credit cards. How on earth will you pay them off in any reasonable amount of time?
We have the solution. Our programs of debt negotiation will reduce your debt ratio, and when you finish our programs, your credit rating will be drastically improved. You will most likely qualify for three to four times the amount of mortgage or other loans. Instead of a declining credit score due to maxed out cards, your score will prove you to be creditworthy due to your decreased debt and improved debt to income ratio. That’s what lenders are looking for. That’s the main criteria they use to determine your creditworthiness.
But best of all, you’ll finally be free of the burden of overwhelming debt and high-interest rates.
Call A1 Debt Solutions today at 888-248-4468 for help getting your debt back on track.