Avoid Losing Out On What Is Rightfully Due When You Sign Up With A Debt Collection Agency

Debt collection services exists for a very valid reason. When a consumer fails to honor the stipulations of his credit or loan agreement, businesses have to make use of numerous methods to collect what is rightfully due them. One effective way of accomplishing this is simply by talking to a debt collection agency with a lot of experience carrying out this kind of work.

There are a variety of strategies a debt collection agency will employ. This process starts once the lender or creditor sends the client reminders that payments are late. When the customer repeatedly ignores the reminder, the company's next move is usually to look at a firm offering debt collection services. Inside the most serious of situations, an agency will often make use of a lawyer who specializes in recovering debt. What happens at this point is a formal lawsuit may be passed, allowing the court to acquire on behalf of the company.

For the most part, debt collection services do not want to make your life difficult. They'll begin by attempting to contact you, identifying the reasons why you are unable to pay, and figuring out acceptable terms that you can manage to bring things up to speed. Should any of these efforts fall short, the provider may call the whole current debt due, while closing your credit account from further use.

Around this critical point, the lending company may grant you with a specific timeframe to pay back your account. In case you continue to ignore this, a lender is likely to hire the assistance of a debt collection agency, with the objective of taking back all or a portion of the outstanding balance you owe them.

When debt collection services are unable to secure payment on behalf the client, the lender may choose to enforce current collection laws as a way of getting the court pass an honest judgment against you.

If the lawsuit is definitely a success, the judge may order a debt collection agency to start getting back what is due by means of a wage deduction, or seizing and selling off assets that you own. This is seen as a way of settling the debt. Generally, lenders and creditors see this as a final option, since time and effort needed to do something of such a magnitude can be significant. In fact, this might exceed the amount of debt you owe.

Understand that debt collection services should conduct themselves in compliance with laws regarding debt collection. These are in place with regards to the jurisdiction identified within the contract's terms and provisions.  Both the debtor and lender established these at the time the business relationship was consummated.

Basically, if a debt collection agency uses methods not considered legal, they may be found guilty of harassment and be subject to government-imposed fines and possible litigation initiated by the debtor.

Since debt collection laws differ from one country to another, with differences between credit card debt collection and other forms, having a attorney at law well-versed on these laws is critical.

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Debt Settlement Programs In America

In America many consumers are harassed to compensate their bills. The problem is vey severe in credit card debt, medical bills or any other type of debts they can’t pay simply. Some consumers can also have combination of these three problems. A proper and good debt settlement program is much needed for them. Debt settlement is the safest and legal way to get rid of debt quickly for the consumers, particularly if they are working with a flourishing supplier of services.
Some people think that paying pennies to get rid from debt is a quicker and easy way. This process sounds very good to them. But, actually it is much better for the consumers if they follow any debt settlement program. The benefits of debt settlement are very much straightforward. The companies who are related with debt settlement can approximately decrease the debt by 50%. The reason behind this decrease is that professional negotiators of settlement companies negotiate with the lenders on behalf of the consumers.  Consumer’s monthly payment will be reduced according to this strategy and the programs do not last more than 12-36 months. Once you have adopted debt settlement programs, creditors have no chance to make you harassed. They can only contact with the company of debt settlement. The professionals of debt settlement will represent you to the creditors.
The reason behind the working of debt settlement program is that, creditors who are in a situation of getting very less or nothing from any consumer who is extremely in debt. The lenders can get percentage of their getable money as a mechanism of recovery. As, professionals negotiate the settlement of debt, company can easily optimize the strategy of settlement over the total portfolio of the consumer’s creditors and make the perfect timing to offer for debt settlements.
Though debt settlement programs can spoil the credit score of a consumer for a short time period, the programs help him to pass up bankruptcy. So, it will be a better option for him for long term. After the end of the settlement, consumer’s account is resolved and report of credit is updated. A good debt settlement program helps consumers to settle their debts within 1 to 3 years.
The total process of debt settlement includes deposit of fixed amount of money to the company. Then, creditors will be paid from that money. After the payment of total debt your account will be automatically closed. You can easily get the facility of paying business debts, credit card debts, medical debts, shopping carts, auto repos, personal loans, unsecured lines of credit, utility bills etc. Total process will be negotiated by the professionals. There are also affiliate training programs by which the debt can be reduced. The professionals convince the creditors that receiving something is better than receiving nothing. Creditors are also made satisfied by the professionals.
Many consumers face a common problem is that, they contact any settlement company after getting deeply in debt. So, they search for a quick and very much effective solution for them. So, it will best for the consumers to search for the best debt settlement company with a successful records of their work. A better debt settlement company not only solves their current problems of debt but also suggest them to avoid such financial conditions. So, once a consumer is debt free he always remains debt free by the help of the settlement companies. Debtcare USA  is a great firm where you can get all the facilities of debt settlement programs, living in America.

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How To Become Debt Free

Day by day, inflation is increasing and the financial conditions of the people in declining, resulting the economy of the country to face worse conditions. This matter now cannot be handled without the intervention of the government. The economic recession has led to an increase in the number of people who are struggling with debts as well as the ability to provide not only for themselves but also for their families and other dependants. For those in need, there are federal grants which can serve as alternatives to the usual debt consolidation programs. Keep reading to find out how government grants can help you become debt free. In these situations, many of the people go to the court and file for bankruptcy because they cannot tolerate the harassing calls of the creditors. Bankruptcy is a process in which an individual goes to the court and claims that he has no resources to pay the amount of the debts which he has taken from the creditor.

As the world’s economy slowly recovers, consumers should take comfort in the fact that there are a lot government and private aid available for them to take advantage of in order to successfully negotiate their debt relief problems. Just as the National debt is putting real drag on the American economy your personal debt is siphoning off money you could be using to improve your situation, enjoy life more, and save for the future. Of course, it’s hard to live entirely without debt. To buy a home these days you almost always need some kind of mortgage, this is true — few people can afford a house outright, especially at the beginning of their careers and families. But you don’t have to be in debt for the rest of your life.

Debt relief is a serious problem for most Americans. We live in a society where everyone wants the coolest gadgets, a nice car and a nicer house. There’s nothing wrong with that. The truth is credit is actually very easy to rebuild once you got rid of your debt. I have personally seen credit scores jump over 100 points a few months after a debt settlement plan is complete. Debt free living is something the credit card companies don’t want you to even consider. There are various factors that one employs to become debt free with debt relief government grants. The very first step entails seeking an opportunity to further his/her education. Enrollment in higher education levels puts one at a strategic position to benefit from debt relief grant. These government grants are FREE! There are no fees associated with the grants. This is much better than the alternative, which are usually just loans which you need to pay back, but you will just get a lower interest rate for a short time period to help pay down your principle.

Find out today if you are eligible for this debt relief grant. Remember that the government does not want to see you struggle because it is not in their best interest, so they will help you find assistance when you are in need. You can also resuming our three steps to become debt free:

    * Get all your expenses into an excel spreadsheet and add them all up. First add up the monthly payments, and then on a separate sheet, add up the total amounts of each debt. How much is required to pay them all off?
    * Pay down and hopefully eliminate debt. Personal debt can unwittingly trap families into a regrettable matrix. Increased personal freedom is the intangible value of getting off the hamster wheel forever.
    * If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals.

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What Are The Chances Of Being Sued For A Delinquent Account?

Problem:

I have always been current on my accounts. However, things changed after I lost my job in October 2010. I have not been able to make payments on the Amex card and the Chase card since then. I planned to pay off my debts after securing a job. I told the same thing to my creditors too. However, the creditors refused to believe me. They have sent the accounts to a third party collection agency. I have heard that the collectors are quite aggressive people. Will they file a lawsuit against me? What are the chances of being sued? I am pretty scared. I live in Los Angeles and owe around $45,000 on the cards. My current credit score is around 525. Thanks for any information.

Solution:

Your chances of getting sued are quite high. The collectors are not patient people. They want their money by any means. They will try various methods to collect the money. The collectors will file a lawsuit against you when they lose hope of collecting money from you.

The debt collectors will calculate the total owed money prior to filing lawsuit against you. They will assess their chances of getting the money by suing you. Lawsuits are expensive and so the collectors would not like to waste any money if there is no chance of retrieving money.

The debt collectors will evaluate your income and assets. They will check whether or not you have a house or a vehicle. They will also try to know if you have available funds in your checking account.

If you have some funds in the checking account or have some equity in your home, then the collectors will definitely file a lawsuit against you. They will try their best to secure a judgment against you. Once the collectors win judgment, they will garnish your checking account or put a lien on your home.

You'll also have to think about your credit score apart from the lawsuits. Your credit score is already in a bad state right now. Your score will drop further if you don't make any payments on the cards. This implies that you'll face tremendous problems in getting a new loan or future. Moreover, you may not even get a job in spite of having good working experience and high qualification.  

I would suggest you to assess your financial situation first. Evaluate how much you have to pay on each account. Then, make a list of your assets and calculate the available funds in your account. Find out if you can repay the debts with budgeting. If not, then you'll have to get a job as early as possible. It will not be possible for you to get of this mess without any income.

You should contact the collection agency and explain your situation to them. Explain to them that you are trying your best to get a job. Try to negotiate an alternative payment plan with them.

If the collectors demand full payment, then you can take advantage of Los Angeles debt settlement to clear your dues. However, you should consider debt settlement as your last option. This is because settlement will drop your score further.

Finally, if you are not able to secure a job or qualify for debt settlement, then you can file bankruptcy. This debt relief option will help you repay your debts and avoid lawsuits.

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Tips To Get Personal Loan With Bad Credit

Bad credit private loan always appeared to be a difficult job to achieve. Personal loans are often very useful for paying off debt, paying for holidays or some unexpected expectations etc.  However, it can be really tough to get loan with bad credit.
A lot of the private loans nowadays are signature loans - these loans are backed by the signature of the borrower and a promise to repay the identical inside a stipulated period of time. In case you are having a bad credit, your signature on the contract would not be good enough for the financial institution for lending you money the following time. Unsecured bad credit loans are no longer appreciated by banks, and therefore, folks ought to seek better ways of repaying the amount.
Nonetheless, there are various methods of getting personal loans regardless of having bad credit as well. Some of the loan providers have eased the process of lending and borrowing for such folks with unsecured bad credit loans in order that they can even have a better and improved life.
As a way to get bad credit personal loan, it's essential to find collateral that can be utilized for getting a loan. Collateral is principally one thing that will be seized by the bank in an occasion of you, the borrower, failing to repay the non-public loan. In many of the circumstances, some people use their automobile, valuables and even their properties as collateral for getting personal loan with bad credit.
Folks usually use electronics, jewelries and musical devices as collateral as well. However, the quantity of loan taken will determine the form of collateral you may use.
Having a history of bad credit means you would have to bear its consequences. You would be charged with greater fee of interest for bad credit loan. You could work together with the banker and get all the required details about the private loan and other options that involve the interest rate.
You would have to pay far more than a regular candidate for your bad credit record.  Additionally, you'd also have to produce more documents than common that may be a proof of your income and all of your assets. It is going to assist in getting the loan approved.

Co-signature is commonly required for obtaining personal loan with bad credit. If there are any members within the family who want to stand by you throughout your wet days, you can search help.
You'll be able to have a co-signer who has a good credit score file and also verifiable earnings as probably the greatest technique of getting personal loans despite having bad credit. You would need to be sure that the person who can be co-signing with you has been listed on private loans and has had a very neat and clean credit score record.
This can solely aid you to get the loan you're seeking at that time of time.
Acquiring bad credit personal loan is no longer difficult as of late; however, the one hurdle is to have all your paperwork in place and collateral to help you.

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Avoid Losing Out On What Is Rightfully Due When You Sign Up With A Debt Collection Agency

Debt collection services exists for a very valid reason. When a consumer fails to honor the stipulations of his credit or loan agreement, businesses have to make use of numerous methods to collect what is rightfully due them. One effective way of accomplishing this is simply by talking to a debt collection agency with a lot of experience carrying out this kind of work.

There are a variety of strategies a debt collection agency will employ. This process starts once the lender or creditor sends the client reminders that payments are late. When the customer repeatedly ignores the reminder, the company's next move is usually to look at a firm offering debt collection services. Inside the most serious of situations, an agency will often make use of a lawyer who specializes in recovering debt. What happens at this point is a formal lawsuit may be passed, allowing the court to acquire on behalf of the company.

For the most part, debt collection services do not want to make your life difficult. They'll begin by attempting to contact you, identifying the reasons why you are unable to pay, and figuring out acceptable terms that you can manage to bring things up to speed. Should any of these efforts fall short, the provider may call the whole current debt due, while closing your credit account from further use.

Around this critical point, the lending company may grant you with a specific timeframe to pay back your account. In case you continue to ignore this, a lender is likely to hire the assistance of a debt collection agency, with the objective of taking back all or a portion of the outstanding balance you owe them.

When debt collection services are unable to secure payment on behalf the client, the lender may choose to enforce current collection laws as a way of getting the court pass an honest judgment against you.

If the lawsuit is definitely a success, the judge may order a debt collection agency to start getting back what is due by means of a wage deduction, or seizing and selling off assets that you own. This is seen as a way of settling the debt. Generally, lenders and creditors see this as a final option, since time and effort needed to do something of such a magnitude can be significant. In fact, this might exceed the amount of debt you owe.

Understand that debt collection services should conduct themselves in compliance with laws regarding debt collection. These are in place with regards to the jurisdiction identified within the contract's terms and provisions.  Both the debtor and lender established these at the time the business relationship was consummated.

Basically, if a debt collection agency uses methods not considered legal, they may be found guilty of harassment and be subject to government-imposed fines and possible litigation initiated by the debtor.

Since debt collection laws differ from one country to another, with differences between credit card debt collection and other forms, having a attorney at law well-versed on these laws is critical.

More about → Avoid Losing Out On What Is Rightfully Due When You Sign Up With A Debt Collection Agency

Credit Consolidation- Top 4 Ways To Achieve Your Financial Goals

Credit consolidation is a strategy being used more and more by Americans as we struggle to get our economy back on the right track. Business is booming at such a rate for consolidating debt that there is just a plethora amount of companies opening up every month, or though it would seem. Our goal here is to simply explain 4 of the most common methods people are using to achieve their goals.

The first topic when discussing credit consolidation always centers around refinancing or HELOC ( home equity line of credit). Sad to say that it was just a short time ago that this strategy was probably the most popular and easiest way to do this, not anymore. With loans so easy to come by, and with the value of homes soaring to new heights, this was an incredible option. Talk about crashing and burning, wow. It seems as though we did a complete 360 in record time. With home values decreasing and loan requirements becoming more stringent, this option is not as viable as it once was. Okay wait for it folks, here it comes, the old catch 22 that you just knew was on the way because there is a certain risk with this that most people are very uncomfortable with even if they do have the credentials to qualify. Here lies the problem my friends, that being whenever you move unsecured debt to secured debt there is a risk, meaning besides your credit rating taking a hit, this could put your home ownership in jeopardy if you fail to meet your obligations for any reason what-so-ever. I hope I didn’t scare anybody off with all that, but it is something everyone must be made aware of when considering this as something that you want to do.

I’d be willing to bet that when I mention the second way of credit consolidation we want to talk about most of you already know of or heard it before, it is a debt settlement program. I think the popularity with these credit consolidation services keeps on increasing because of the ease to find and enroll into them as compared to some of the other ways being offered.  Immediately following enrollment, there are certain benefits and privileges that will be awaiting for the consumer. Lets take a quick look at what you can expect without going into great lengths here. You can expect your debt to be reduced, which of course leads to lower payments every month, and the cancellation of those pesky late fees and interest charges that have been piling up. Now that has to get your blood pumping with excitement. I know you are all waiting for me to drop the bomb, you know, when I tell everyone the bad side of this. Okay here it comes since you asked for it. Your credit rating will be impacted by this negatively until you have stayed the course and completed your program. Just a fast quick plus note here. It surely beats the heck out of the alternative, bankruptcy. The good news is once you finish up with all your obligations, you will see that your credit worthiness will be restored rather quickly.

Another way people are using credit consolidation to help with their finances is through a DMP or debt management plan. The many benefits with this will include, but not limited to, lower interest rates, those annoying phone calls will cease, late fees as well as over draft fees will stop, and payments will be combined to form a single  monthly payment. Credit consolidation services such as this will also protect your credit worthiness while you are working hard with putting your finances back to where they need to be. Generally speaking, it only takes the average person maybe 4-5 years to get rid of their debt once enrolled into this program. 

Now it’s time to talk about a way of credit consolidation that many people just don’t like for many reasons. Personal loans is what we will be bringing up next. This is the least favorite just because of it’s nature. Since it is an unsecured loan it will be more difficult to obtain one, and the amount you get will probably be for much less then if you tried another method. The risk with this will be solely on the lender since you will not be putting up your home as collateral. This will result with the consumer paying higher interest rates. It’s not to difficult to understand why I put this method last and why it’s probably dead last as far as which ways are the most consumer friendly. I guess not putting your home in jeopardy is a plus though. There it is everyone, 4 ways credit consolidation services and methods are being used everyday in this country to help people regain control of their finances once again.

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How Should You Choose Best Debt Consolidation?

Consolidation of debt means taking out one loan to pay off many other loans. Consolidating debt is often done to secure fixed interest or a lower rate of interest for the convenience of having only one loan. Consolidation of debt can be done in many ways. However, one single aim that controls debt consolidation is to replace part or all of your debt with one debt as a single payment is easily manageable. In many cases, debt consolidation involves getting a loan against any of your asset, such as your house, to serve as collateral. This can also reduce your interest rates substantially.

Top Reasons to Look For Debt Consolidation Loans:

Loan for debt consolidation are the best solution if you are bogged down with unmanageable debts. Here are some top reasons why you should go for consolidation of debt.

• To get out of debt faster.
• To reduce the total amount that you owe.
• To avoid long term consequences such as bankruptcy.
• To help you rebuild your credit.
• To help you overcome the stress of rising debts.
• Single monthly payment.
• Professionals to guide you safely and smoothly through your debt consolidation.
• To help you manage other expenses and debts.
• It offers the perfect security.

How to Choose the Right Debt Consolidation Company?

Overwhelming debts can turn out to be quite stressful and hence you should look for consolidating debt. This will help you secure an affordable monthly payment, which in turn will give you a chance to improve your credit score. However, debt consolidation can prove to be a good solution only if you find the right service provider. Here are some tips to help you choose the right debt consolidation company

• Seek recommendations from family, friends or from the internet.
• Choose a debt consolidation company that is legitimate and a not for profit company.
• Check the track record of the company you choose, with a business bureau to determine their reputation.
• See if any complaints are registered against the company.
• Make sure that the debt consolidation company holds a valid license to operate in your state.
• Talk to the company representatives before you actually sign up for loans for debt consolidation.
• Ask lot of questions and make sure that they provide services that will meet your requirements.

Tips To Evaluate Debt Consolidation services:

• Hire the services of a licensed credit counsellor.
• Your debt consolidator should provide a free quote.
• Compare your debit consolidation loans against your old loans.
• They should be able to either reduce your penalty fees or cancel it.

Find out how fast they can deliver their services.

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OFT Clampdown On Debt Management Twitters

According to some reports in the media recently, the OFT could be about to stop debt management companies from using social media sites such as Twitter and Facebook to advertise their services. Firms that use pay-per-click advertising on Google could also be targeted as the OFT continues its clampdown on the debt advice industry.
The OFT has implied that companies that use social media sites to advertise services such as IVA’s, Bankruptcy or a Debt management Plan, may be acting ‘inappropriately’ and that this form of promotion could be viewed as ‘unfair business practice’. The proposals have not yet been confirmed and a consultation is currently taking place.
The main argument behind the OFT’s stance is highlighted in its consultation paper, where it questions whether the limited information that can be transmitted through sites such as twitter can provide a balanced picture for clients. Often, the content on these sites are written by the MD’s and SEO’s of debt solution companies, highlighting all the great things about their companies without ever giving much regard for the ‘free’ or ‘alternative’ debt solutions that are available.
As part of ‘best advice’ guidelines, the OFT have previously stated that commercial debt help companies, as part of their advertising, should always make their clients aware of the free and charity debt advice that is available. This is rarely talked about on Facebook and Twitter.
Most often, the only information that can be found will be written in the garbled ramblings of an enthusiastic director, passionate to get content onto the internet containing as many popular keywords as he can cram into his message in order to boost his company’s website SEO. In many cases, the information to be found on social media sites can be biased, inaccurate and even misleading. Who knows where many of them get the time to post so many blogs and messages – often at a rate of one every half hour or even more frequent, and usually from devices such as Blackberry’s and I-Phones. It could actually be viewed as a little bit sad and desperate.
The question that the OFT raises in regards to pay-per-click advertising is in regards to the limited number of characters available to advertisers, and whether a fair message can be conveyed to potential customers in such a short amount of space. Normally, a debt help firm will be expected to provide certain warnings to potential customers, such as the adverse effect that a debt solution can have on a person’s credit rating and the fact that a debt solution such as a debt management plan can extend the term of a person’s indebtedness.
There have been some murmurings from those in the debt advice sector who use social media to flog their wares that any ban on this form of advertising would be ‘draconian’ and disable commercial debt management firms from operating on a level playing field with others in the industry. The OFT has responded to these concerns by stressing that use of social media is fine as long as the information is accurate, clear and truthful.

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What You Need To Know About Debt Settlement

Let's face it, the financial recession has forced many Americans into positions that they don't necessarily deserve to be in. With financial hardships setting in, many consumers have to make decisions of which bill they are going to pay with this paycheck this week and which bills they won't be paying. Living through financial hardship has lead many consumers into the thought of using a debt settlement program. But, is this the right option?

Well, depending on the severity of your financial hardship this may or may not be the best option for you. It is up to people to decide what will be best. However, I will go over the debt settlement process and some other options that consumers may have.

The first step in a debt settlement process is contacting a professional. There are thousands of debt settlement companies nationwide. However, it is important to do your research before contacting anyone. Look for good companies with great reputations to help you! Once people have found a company they are willing to work with they will need to call that company.
The representative of the debt settlement company will need to know your total amount of debt and will create a payment plan that Americans can afford. Once the payment plan is created and the Americans agree the process starts. The debt settlement company sends a letter to the charge card companies letting them know that they will be working with the debts and they are working on obtaining a settlement.
This process will last several months and in some cases can last several years. During which time, people will be paying the debt settlement company but the debt settlement company will not be paying the banks until they have one complete lump sum! This lack of payment can have a detrimental affect on consumer credit scores.

Once the debt settlement company has saved enough of your payments to offer the bank a settlement, they will offer pennies on the dollar and start the negotiations process. Because the banks haven't received a penny for months or years, they are apt to take a lower amount than what is owed because they think if they don't they will get nothing. At this point a settlement will be negotiated and paid.

Although at this point, the people have no credit card debt left, they also have no ability to obtain a loan. The debt settlement process would have affected the consumer FICO scores so much, they would have to pay cash for everything.

Another option Americans have is calling the banks and letting them know that they are facing a financial hardship. Believe it or not, many of these banks are willing to assist consumers with fixed interest reductions to as low as 0%! All it really takes is a simple phone call to the charge card issuers in most cases to get a decent level of relief!

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A Professional Debt Recovery Letter Can Save You!

Customers who fail to settle their accounts on time and renege on payment are the scourge of any business. Attempts to recover these bad debts are both time-consuming and expensive. Bad debts harm any goodwill between you and your customers which may have been built up over many years, leaving that "never again" feeling.
A professional debt recovery letter can save you from all of that.
Debt recovery services provide a simple, cost efficient means of minimising the risk of reduced cash flow to your business. Often, the mere fact that you have employed a reputable debt recovery service to act on your behalf, may well be sufficient to encourage a defaulter to settle his account without the need for any further action. Remember, such customers are also less likely to default on payments in the future.
Debt recovery can be a long and complicated process. However, often all it takes is sending a debt recovery letter to persuade your customer to settle his account. Indeed statistics show that written demands result in a satisfactory outcome in over 60% of cases. With such a success rate, the "demand" letter is clearly a most effective way to recover outstanding debts thus precluding the need for further, more expensive action.
However, professionaldebt recovery services offer much more than just a simple debt collection service. As well as sending out debt recovery letters and then recovering overdue accounts on your behalf, they will offer advice at all stages during your relationship with your customers, that may well reduce the risks to you caused by bad cash flow. Adopting their expert advice can create significant savings for your business both financially and in improved staff morale with the reduction of pressure on your account manager, whose stress level will benefit from the increased cash flow.
When you are approached by a potential new customer seeking credit, your debt recovery service will be able to determine the credit history of this customer and therefore decided their creditworthiness in respect of your business.
From the information provided by the debt recovery service, you will be able to see if the customer has a history of late payments, bankruptcy or insolvency proceedings or indeed has any default judgements marked against them.
This service will also establish beyond doubt the correct legal identity of your potential customer, something businesses often overlook and which can severely hamper the debt recovery process.
A professional debt recovery service will review your existing credit management practices and in effect, ensure that they are "fit for purpose". They can, for example: –

• ensure that your printed Terms and Conditions of Trade are adequate and legal
• a strict control is placed on the limit of credit allowed to anyone customer
• pre-determined agreed days of credit are strictly adhered to
• penalties for late payment of account are clearly defined

Chasing the bad debts does not make you money and it certainly does not improve your cash flow! Let a debt recovery service take over this burden for you. Not only does a debt recovery service provide a most cost effective way of retrieving what you are owed, thus improving your cash flow but perhaps, more important, a debt recovery service may well reduce the risk of default in the first place.

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Debt Management and Debt Management Solutions

Debt managementis difficult at the best of times, as you try to juggle different loans, amounts, interest rates, payment dates and creditors.
But in the middle of a global financial crisis, the already hard task of debt management has been made more difficult by layoffs, slashed pensions and benefits, and an uncertain economic future both individually and nationally.
In the West Midlands, you can get expert advice on debt management from Gemstone Financial Management, a company founded and managed by a team of finance industry professionals. Gemstone Financial Management’s team of highly qualified staff is made up of a number of highly skilled individuals who can offer you the benefits of their experience and expertise across a diverse range of the financial services spectrum.
We can explain and arrange a variety of financial services, includingdebt management, lump sum negotiations, loans and insolvency measures.
No two clients, and no two financial situations, are the same. For this reason, the team at Gemstone Financial Management will undertake an in-depth consultation with you, working through every detail of your financial situation in order to help your understand the intricacies of your situation and the various options for financial restructuring open to you. We’ll make sure that you understand the details and implications of measures such as debt consolidation loans, individual voluntary agreements (IVAs) and bankruptcy, so that you can make an informed decision about which one is right for you.
At Gemstone, we don’t just offer advice. We can offer support and practical help. We can arbitrate between you and your creditors on your behalf, and even (in the extreme case of bankruptcy) arrange for you to be accompanied during court appearances, and help you as you begin to rebuild your credit profile.
In the difficult and sensitive area of debt management we understand that integrity and professionalism are of the utmost importance. This is why we are proud to say that we are one of the founders and board members of the Debt Resolution Forum (DRF), the largest trade body operating in the UK advice sector today. The DRF represents debt advisers and solutions providers who voluntarily adhere to standards that go beyond the minimum regulatory requirements. The DRF sets the standards for others to follow, and is arguably the most respected body in the UK debt advice sector.


As a member of the DRF, Gemstone Financial Management recognizes that reliable advice is an essential element of any debt management. This is why we endorse the BTEC Advanced Certificate in Debt Resolution developed by the DRF, which has been accredited by Edexcel. All our staff must undertake this course before dealing with our customers, in order to ensure that they have a sound understanding of debt management solutions and can give only the best, most appropriate advice.
Regular audits are carried out by the DRF in addition to all the standard regulatory reviews, ensuring that the exceptional standards of the membership are maintained.
Call us today on 0800 112 4313 for financial advice you can trust.

Gemstone Financial Management Specialists in debt management,debt management solutions, consolidation, help and bankruptcy advice. Call now on 0800 112 4313

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How can you plan an effective strategy to dig out of debt?

Problem:
Due to some idiotic financial mistakes and prolonged illness, I have not been able to keep up with my payments. Some of my creditors have assigned the accounts to the collection agencies. Anyway, I am well now and want to rectify my mistakes. I want to fulfill my financial obligations. The total outstanding balance is $54,256. My question is should I make payments to the creditor or the collection agencies? Given a choice, I would like to deal with the creditors directly. Thanks for any information.
Solution:
I am extremely happy to know that you are well now and want to pay off your debts. It is a good sign that you want to rectify your past mistakes. Don’t be too hard on yourself. It often happens with a lot of people. Your main goal will be to plan an effective strategy to clear your debts.
It is not surprising that you want to deal with your creditors and make payments to them. Most of the debtors prefer to negotiate with the creditors directly. You can certainly contact the creditors and make a written request to repay your bills. However, you should understand the fact that some of your past due accounts are with the collection agencies (CA) right now. So, there is a high chance that the creditors will not want to negotiate a payment agreement with you. They may ask you to contact the CAs and make the required payments to the collection agencies straightway.
Before contacting the creditors/collection agencies, you should at first craft a spending plan. This will help you realize the amount you can pay to your creditors/CAs every month. You can tell the creditors/CAs about the amount you can afford to pay per month/year while negotiating with them.
Once you have a clear idea about the affordable monthly payment amount, you can communicate with the creditors/CAs in writing. You can send a letter via certified mail with return receipt request, and propose a payment plan. If they happily accept the repayment plan, then you should request them to mail/fax the written agreement to you. Read the terms and conditions of the agreement letter thoroughly before putting your signature on it.


If you have no intention to negotiate with the creditors/CAs on your own, then you can approach small debt consolidation companies for help. The consultants of the small debt consolidation companies will contact your creditors/CAs and negotiate with them. They will arrange a repayment plan which you can easily afford. You can just make a single monthly payment to the consolidation company and they will disburse the money amongst your creditors/CAs.
If you don’t want to approach a debt consolidation company, then you can try for debt settlement. This debt relief option helps to slash your outstanding balances by a certain percentage. However, keep in mind that this debt relief option will drop your credit score by around 125 points.
Finally, if debt settlement does not help you repay your bills, then you may go for bankruptcy. Here, you can pay off your debts under court supervision. You will have to submit bankruptcy petition and go through the means test to know about the type of bankruptcy you’ll qualify for. If you qualify for Chapter 7 bankruptcy, then you can get rid of debt within 3-4 months. In case of Chapter 13 bankruptcy, you’ll be able to dig out of debt within 3-5 years.

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OFT Crackdown on Debt Management Leads Generators

As part of the OFT’s attempts to clean up the UK debt management industry, companies that provide debt management leads must now ensure that they have a consumer credit license containing the ‘debt counseling’ category. This is also applicable to anyone who acts as an introducer to debt solutions firms such as mortgage brokers, loan brokers, IFA’s, finance professionals etc.
The requirement to be appropriately licensed also applies to off-shore call centers that generate leads for UK-based debt management companies. By offering a service to UK consumers, lead generating companies need a UK consumer credit license covering the relevant debt counseling category, even though their company is based on foreign shores.
If a company is operating websites to generate leads, then all domain names must be registered and included on their consumer credit license. Not only that, but the OFT may refuse to grant a license or revoke a license if the domain names are in any way deceiving to consumers – for example if the domain names are similar to charities or fee-free providers, or if they imply that debt can be ‘written off’ or not need to be paid back at all.
The OFT is keen to clampdown on ‘copycat’ websites that sound similar to free advice agencies such as Citizens Advice, the Consumer Credit Counseling Service, the Money Advice Trust and Advice UK because these can be particularly confusing for consumers who may not notice the difference. Companies operating such websites have been described as ‘unethical’ by some observers in the industry.
The OFT has already started taking action against companies that have, in their opinion, flouted the rules. Earlier this year, the lead generation firm Money Advice Direct Ltd had to face questions from the OFT regarding its website ‘UK Insolvency Helpline’. MADL were informed that they needed to make it clearer that they were not a fee-free or charity service, and that they made money by selling on the referrals to debt management companies.


The reason for the OFT’s action is because they want debt help firms to be more transparent in their advertising so that consumers can make clearer, informed choices about who to approach for debt advice. They have also stated that it’s important that consumers understand who they are dealing with and that they can clearly distinguish between the debt solution provider and the lead generator.
Most debt management companies in the UK fully support the actions being undertaken by the OFT to clean up the industry to ensure that customers are treated fairly. They have made it clear that they will simply not tolerate ‘cowboys’ in the industry and that non-compliance with the rules could result in a £50,000 fine and the revocation of consumer credit license.
The clear message to all professionals who generate debt management leads such as mortgage brokers, loan brokers and such like is: get compliant, get the ‘debt counseling’ category added to your consumer credit license, and operate compliantly within the rules – or face the wrath of the OFT.

UKMS Introducers work with hundreds of Loan Brokers across the UK who offer their clients personal loans, unsecured loans, secured loans, bad credit loans, payday loans etc. All loan brokers are welcome to get benefited from UKMS debt management referrals.

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What You Need To Know About Debt Settlement

Let's face it, the financial recession has forced many Americans into positions that they don't necessarily deserve to be in. With financial hardships setting in, many consumers have to make decisions of which bill they are going to pay with this paycheck this week and which bills they won't be paying. Living through financial hardship has lead many consumers into the thought of using a debt settlement program. But, is this the right option?

Well, depending on the severity of your financial hardship this may or may not be the best option for you. It is up to people to decide what will be best. However, I will go over the debt settlement process and some other options that consumers may have.

The first step in a debt settlement process is contacting a professional. There are thousands of debt settlement companies nationwide. However, it is important to do your research before contacting anyone. Look for good companies with great reputations to help you! Once people have found a company they are willing to work with they will need to call that company.
The representative of the debt settlement company will need to know your total amount of debt and will create a payment plan that Americans can afford. Once the payment plan is created and the Americans agree the process starts. The debt settlement company sends a letter to the charge card companies letting them know that they will be working with the debts and they are working on obtaining a settlement.
\This process will last several months and in some cases can last several years. During which time, people will be paying the debt settlement company but the debt settlement company will not be paying the banks until they have one complete lump sum! This lack of payment can have a detrimental affect on consumer credit scores.

Once the debt settlement company has saved enough of your payments to offer the bank a settlement, they will offer pennies on the dollar and start the negotiations process. Because the banks haven't received a penny for months or years, they are apt to take a lower amount than what is owed because they think if they don't they will get nothing. At this point a settlement will be negotiated and paid.

Although at this point, the people have no credit card debt left, they also have no ability to obtain a loan. The debt settlement process would have affected the consumer FICO scores so much, they would have to pay cash for everything.

Another option Americans have is calling the banks and letting them know that they are facing a financial hardship. Believe it or not, many of these banks are willing to assist consumers with fixed interest reductions to as low as 0%! All it really takes is a simple phone call to the charge card issuers in most cases to get a decent level of relief!

This article was written by Joshua Rodriguez and is brought to you by:

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Debt Solutions

Are you struggling to make ends meet? Has a sudden change in circumstances affected your financial situation? We can help.
As a licensed professional Debt Management Company, Gemstone Financial Management can provide you with practical advice and support on a range of debt solutions. We can advise you and assist you, dealing with your creditors on your behalf.
We will draw up a Debt Management Plan which combines all your unsecured debts into one manageable monthly payment that will pay off your debts to your creditors as part of an agreed repayment programme. One of our team of dedicated and professional account managers will work with you for the duration of your plan to find the most effective debt solutions to help you get your finances back on track.
If you can manage regular payments into your Debt Management Plan, we may be able to arrange concessions from your creditors such as a suspension or reduction of interest and relief from further charges, although such concessions are negotiated from case to case and cannot be guaranteed. This plan may mean that your repayment period is longer and that the total sum paid may be larger. It is important to understand that any delayed or missed payments to creditors, or failure to pay our plan setup fee, may result in your accounts going further into arrears.


Another one of the debt solutions we can offer advice on is the Individual Voluntary Arrangement (IVA). This is a legally binding agreement with your creditors to pay back a percentage of your debts over a set period of time (usually five, or sometimes six, years). A licensed Insolvency Practitioner will assess your circumstances and formalise the agreement which can sometimes require the disposal of some personal assets. After living expenses, the remainder of your income is paid to the insolvency practitioner, who will deduct a fee and then distribute payments to your creditors. Home owners may be required to remortgage their property in the fourth year in order to release equity to their creditors. The initial cost of an IVA is usually the equivalent of 5 months' payments, with an ongoing cost of around £1,200 per annum, as agreed with your creditors. However, you will not need to paythese in addition to your normal monthly payments.
Getting an IVA is not guaranteed, as creditors holding at least 75% of your debt by value must agree to, or not vote against, the IVA. Once the IVA is agreed, creditors cannot add fees or charges to your debt and will not chase you for any further payments. And once the IVA is complete, any remaining debt is written off. Before entering into an IVA you should be sure that you can make the payments, as if an IVA fails the Insolvency Practitioner may have to file for your bankruptcy. We can provide access to market leading Insolvency Practitionerswho can guide you through the IVA process. All costs will be covered by your monthly payments.
Call us today on 0800 112 4313

Gemstone Financial Management Specialists in debt management solutions, debt consolidation, debt solutions , debt help and bankruptcy advice. Call now on 0800 112 4313

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Debt Consolidation

Finding it hard to keep track of multiple debts and creditors? Stung by late payment charges and mounting interest? Wish you could just pay one simple, regular, payment that you can reasonably afford? Debt consolidation may be right for you.
Debt Consolidation is the process of taking out one large loan to pay off all your existing debt. This means that you will have one monthly payment to make, to one creditor. In addition to simplifying your financial life debt consolidation can mean that you can get a lower interest rate on your new loan than the rates attached to your existing debt (for example, the high rates of interest on credit cards). Furthermore, Gemstone Financial Management has experience of successfully renegotiating clients’ payment terms, wining concessions from creditors such as freezing mounting interest and charges.
One of the main ways to get a lower rate of interest on your consolidation loan is through being a home-owner with a good level of equity in your home. This would allow you to get a loan ‘secured’ against the value of your home. However, it is important to understand that by doing this you might put your home at risk if you fail to keep up the payments on your secured debt consolidation loan. You should be certain that you have the ability to make and maintain payments before taking out such a loan. You should also consider that there may be penalties for paying off your other debts early, that this may make the repayment period longer and the total sum larger, and that taking out such a loan may affect your ability to discharge debts in bankruptcy.


If you are considering taking out a consolidation loan, you could benefit from speaking to a professional debt adviser before making any decisions. Consolidation is only one option for people seeking to manage and optimise their finances and debt. At Gemstone Financial Management we offer a range of financial services, and our experienced staff can devise solutions to suit the interests of you, the customer, in managing your finances or finding your way out of debt.
As suppliers of a range of financial services, Gemstone can advise you on a variety of strategies for dealing with financial issues. Based in the West Midlands, Gemstone is a company founded and managed by industry professionals, with a team of staff with a wealth of relevant experience in financial services. We pride ourselves on providing a service with integrity and professionalism. Indeed, we are one the founders and board members of the Debt Resolution Forum (DRF), the largest and arguably most respected trade body operating in the UK advice sector today, which represents firms of debt advisers and solutions providers that voluntarily adhere to standards that go beyond the minimum regulatory requirements. In short, it sets the standards for others to follow.

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Debt Collection Melbourne – Can You Afford To Do Without It?

In these times of economic uncertainty, businesses in Australia face the ever increasing prospect of a overdue accounts and even worse, the complete default of any payment. No business can afford to have its cash flow disrupted in this way and for those who are, the results may have a potentially devastating effect on the business.

Debt Collection Melbourne may, for such businesses, prove the most effective way of preventing of such default by carrying out debt recovery on behalf of these companies. Debt Collection Melbourne is not only an expert at recovering debt, but is also able to offer invaluable advice on how to avoid such difficulties arising in the first place by using their credit management services.
When approached by a prospective new customer, Debt Collection Melbourne will carry out such investigations as to enable you to decide if it would be economically viable to do business with the customer. They will check and verify your potential customers bona fides; determine their previous financial history, particularly if they have a bad record of payment; ascertain whether there has been any record of previous financial litigation, all of which will enable you to have a complete overall financial picture of your potential customer, before starting to do business.


In this respect, it is vital that all your potential new customers are made fully aware of your Terms and Conditions of Trade before you begin starting any business with them. Debt Collection Melbourne will ensure that your Terms and Conditions are specific to your business and will offer you the appropriate protection under such legislations as the Fair Trading Act, the Commonwealth Trade Practices Act and the Privacy Act.
They will also ensure that your Terms and Conditions provide adequate protection in respect of title, warranty conditions, returns, defects and cancellations. Clauses relating to the recovery of collection costs and interest due on late payments, will leave your new client in no doubt as to the consequences of default.
Debt Collection Melbourne, by providing credit management services, will help reduce your exposure to a late payment risk and may well forestall many problems you might otherwise face in regards to defaulting customers. Such services can considerably reduce your business costs, whilst at the same time adding value to your business.
Customers who fail to settle their accounts on time and renege on payment are the scourge of any business. Bad debts harm any goodwill between you and your customers which may have been built up over many years.
Despite taking all precautions possible, there will be instances where customers may still default on payment. Debt Collection Melbourne will first assess whether it is financially viable to pursue the debt and then focus on recovering overdue accounts as quickly and as cost effectively as possible. In practice, a "demand" letter is all that is required: legal action is generally a last resort!
Debt Collection Melbourne offer a comprehensive service of not only debt recovery but also credit management which, when combined together, provide your business with the ultimate in financial protection. The outlay is minimal for results that could well save your business from financial collapse.

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Debt Collection – An Imperative Daily Business Function

In recent years, the way in which we undertake our business operations has changed.  It is now more important than ever for businesses to keep on top of their finances, particularly in relation to cash flow.  In order to achieve this, it is essential that you ensure a positive cash flow is maintained by correctly managing your overdue accounts and debt collection.
If you offer credit facilities to certain customers, such as account holders, you must agree at the outset of such credit arrangements as to the expectations involved by both parties.  Written conditions that clearly state the terms of any account, such as the number of days credit that may be allowed until payment is due, along with the recovery procedures that will be adopted should the account not be paid within the agreed time scale, must be provided to each such customer.  You must make these Terms and Conditions part of your everyday business practise.
For example, if the normal procedure is to engage the services of Debt Collection companies after the account is 90 days overdue, then that is what should happen.  The longer you leave a debt outstanding, the harder it may be to ultimately collect and hence the longer that money is not within your business, paying for day-to-day operating costs or even to utilise for capital investment.


In this present economic climate, there is also the very real danger that if you leave a debt uncollected for any extended period of time, that debtor may become insolvent, dramatically reducing your chances of recouping your money.  It also greatly increases the time and cost involved in seeking some form of retribution.
The reasons given for not actively chasing overdue debts can range from the time that would be taken from completing other tasks, to the lack of knowledge regarding the actual legalities of debt collection.  There can also be the embarrassment factor when asking for money, especially when a long-term business relationship is involved.
This is not an issue to be overlooked or to become complacent about.  You have to keep in mind that debt collection is an important daily business function and one that may eventually have a resounding impact on the very survival of your business.
If you find that, for whatever reason, debt collection is not being correctly managed within your business, there is help available.  Debt Collection companies are able to work with your organisation to introduce credit management services, which in turn can be tailored to suit the individual requirements of your business in relation to debt collection.  These may include drafting and issuing debt collection letters, actual recovery of the debts and even instigating legal proceedings, should this be required.
As a professional, third party company, they have the knowledge, expertise and resources to actively and persistently pursue payment of your overdue accounts without damaging your business relationships.  By engaging such Debt Collection companies, you are retaining professionals to do what they do best, thus freeing you up to do what you do best – namely running and building your business.

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A Professional Debt Recovery Letter Can Save You!

Customers who fail to settle their accounts on time and renege on payment are the scourge of any business. Attempts to recover these bad debts are both time-consuming and expensive. Bad debts harm any goodwill between you and your customers which may have been built up over many years, leaving that "never again" feeling.
A professional debt recovery letter can save you from all of that.
Debt recovery services provide a simple, cost efficient means of minimising the risk of reduced cash flow to your business. Often, the mere fact that you have employed a reputable debt recovery service to act on your behalf, may well be sufficient to encourage a defaulter to settle his account without the need for any further action. Remember, such customers are also less likely to default on payments in the future.
Debt recovery can be a long and complicated process. However, often all it takes is sending a debt recovery letter to persuade your customer to settle his account. Indeed statistics show that written demands result in a satisfactory outcome in over 60% of cases. With such a success rate, the "demand" letter is clearly a most effective way to recover outstanding debts thus precluding the need for further, more expensive action.
However, professionaldebt recovery services offer much more than just a simple debt collection service. As well as sending out debt recovery letters and then recovering overdue accounts on your behalf, they will offer advice at all stages during your relationship with your customers, that may well reduce the risks to you caused by bad cash flow. Adopting their expert advice can create significant savings for your business both financially and in improved staff morale with the reduction of pressure on your account manager, whose stress level will benefit from the increased cash flow.


When you are approached by a potential new customer seeking credit, your debt recovery service will be able to determine the credit history of this customer and therefore decided their creditworthiness in respect of your business.
From the information provided by the debt recovery service, you will be able to see if the customer has a history of late payments, bankruptcy or insolvency proceedings or indeed has any default judgements marked against them.
This service will also establish beyond doubt the correct legal identity of your potential customer, something businesses often overlook and which can severely hamper the debt recovery process.
A professional debt recovery service will review your existing credit management practices and in effect, ensure that they are "fit for purpose". They can, for example: –

• ensure that your printed Terms and Conditions of Trade are adequate and legal
• a strict control is placed on the limit of credit allowed to anyone customer
• pre-determined agreed days of credit are strictly adhered to
• penalties for late payment of account are clearly defined

Chasing the bad debts does not make you money and it certainly does not improve your cash flow! Let a debt recovery service take over this burden for you. Not only does a debt recovery service provide a most cost effective way of retrieving what you are owed, thus improving your cash flow but perhaps, more important, a debt recovery service may well reduce the risk of default in the first place.

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