Do you find yourself asking whether debt settlement is a safe or a wise course of action for you? Many of us have become accustomed to asking the government (Big Brother) to provide advice on how to get back on our feet.  The question then is a simple one; does the government advocate debt settlement? Surprisingly the answer is a resounding YES!

With the increasing economic instability worldwide the government is looking out for consumers more than ever.  Good news for anyone swimming in debt, but how is the government helping?  Let’s just say Big Brother is putting a little “necessary encouragement” where it needs to…In fact, the FDIC has been told to regulate bank debt settlements to prevent unfair and deceptive practices from harming any consumers looking to get out of debt.

Why is the government helping?  The main reason is consumers are having a very difficult time making ends meet these days.  With wages going down, increases in corporate layoffs, and necessities becoming more expensive (fuel, food, etc.) consumers just don’t know where to turn.  While the law does allow you to file bankruptcy, the government does not advocate it because it damages the economy by forcing all involved parties to take a greater loss than they might otherwise have to. With debt settlement, the amount of that loss can be mitigated. You get to keep your assets and your creditors take a smaller loss on their investments.

The government has advised banks and other lending organizations to consider debt settlement as a “favorable” alternative to increasingly harsh collection action. Even though the government may not help you directly, it is still a good idea to get help from someone.  If you think you may benefit from debt settlement I encourage you to review the information on the AmeriFree website.

Bottom line is Big Brother wants to help but does not have the necessary resources at this time to do so…

Hope you found this information useful.  Please come back often as information is continually being updated.

Matthew

Debt Blogger

New statistics demonstrate that most Americans are struggling with a minimum of $8,000 in unsecured debt.  Making matters worse they are attempting to pay that debt back on a median income of less than $50,000 a year, which for most is difficult to do.  Unfortunately many people are choosing bankruptcy as a way out of their financial troubles.  Why, you might ask?  Most are simply not aware of some more consumer, and creditor, friendly options out there for them to try.  I don’t disagree that bankruptcy does serve a purpose but humor me today as we look at some alternative solutions; credit counseling and debt settlement.

First, let’s define what “unsecured debt" means.  Unsecured debt is debt not secured by any property or collateral, meaning that a creditor cannot place a lien against your property and that your property cannot be taken away in order to pay the debt.  Some examples of unsecured debt are credit cards, certain medical bills, department store cards, and cell phone bills.

Second, how does credit counseling and debt settlement work?  Let me start by stating that credit counseling and debt settlement should always be done through an experienced entity like AmeriFree.  When a consumer enters AmeriFrees credit counseling program they are essentially contracting with us to contact their creditors, propose fixed payment plans, take creditor calls and distribute monthly payments for up to 5 years.  That’s right…within 5 years you can eliminate your unsecured debts by enrolling in our credit counseling program.  Our debt settlement is similar to credit counseling except that your individual accounts are actually settled with your creditors.  Debt settlement programs typically run 2 to 3 years and require you, the consumer, to deposit funds in an escrow account that builds up until there are enough funds to adequately settle individual enrolled accounts.  Once there are enough funds available to settle our negotiators work directly with your creditor to come up with a mutually agreeable settlement amount.  Debt settlement can save you money with the average settlement, including fees, costing much less than your original amount owed.  Please review our debt settlement information for all of the ins and outs.

I hope this information opened some new doors on alternative ways to handle your unsecured debt!  Please check back often as new information is continually being added.

Matthew

Debt Blogger

Consumer debt ballooned over the past ten to fifteen years, primarily due to the ease of obtaining low interest rate loans, and consumer’s excessive use of home equity line of credits due to soaring home prices.  With credit so freely available, regardless of credit risk, consumers mounted significant credit card and other debts.  When spending outpaces savings, it often leads to bankruptcy, however with new laws regarding bankruptcy, it has become harder to file, and costs a lot more money.

With a greater number of people unable to qualify for bankruptcy, nor willing to suffer the consequences of filing, they are on the lookout for different options.  Debt consolidation programs like Credit counseling and debt reduction programs like debt settlement help consumers shed debt without the lasting effects of bankruptcy.  These programs are built around recommendations provided by credit counselors based on individual needs.  Once a customized plan is in place, the debt solution company works directly with the consumers creditors to put the plan in action.

Although entering bankruptcy seems easy, more often than not it is not the case as a bankruptcy remains on your credit score for seven years.  A debt reduction program can leave you debt free within two to five years, and does not affect your credit as adversely as bankruptcy.  If you are able to enter a debt consolidation program like credit counseling, you also will be debt free within two to five years, but entering this program will not negatively affect your FICO score.

Do you feel like you are running out of financial options, and facing mounting debt?  Call now and speak with one of our friendly debt experts.  In just fifteen minutes you can have a financial plan to be debt free.

Managing credit card debt can be tricky, if not downright impossible if left unchecked.  There are simple questions you can ask yourself to identify if you are heading in the wrong direction, or if you need to take corrective action.

1. How much have you saved in your rainy day fund?
   
   Maybe the first question to ask is if you even have an emergency fund.  Many people find they enter the downward spiral of debt, not by living the excess lifestyle, but because they did not have rainy day fund when their financial skies were clear.  All it takes is one unexpected expense, whether that be a medical emergency, loss of job, etc, and you could be stuck in a financial hurricane.  Fortunately, as you emerge from debt, you can include a "personal rainy day bill" in your budget.
2. Are you spending more than you are paying?
   
   This should go without saying, but if you are consistently spending more than you are able to pay off, you have a problem.  There is an old saying that it is easy to spoon away money faster than it is to shovel it in.  If you find yourself in a financial mess, with unsecured debt piling up, take a few minutes and speak with one of our credit counselors to see how we can make a customized plan to help you get out of debt.
3. Are you living day to day because of your credit card or special terms financing?
   
   Sure it is nice to have the monster, in-home movie theater, closet full of designer clothes, and other nice things that your friends and neighbors have, but if you don't have the means to pay for it, you are certainly headed for trouble.  Use special caution when signing up for "bargains" like zero percent interest for X months.  If you choose to utilize one of these promotions, divide the total balance by the number of months of the terms, and decide if you can make that payment (not the minimum payment the store advertises).  If you are unable to pay the bill calculated with this method, you will most likely be suprised with an overnight increase of the balance of 20-30% when the terms expire.  That $5000 deal could easily become a $6500 deal breaker, with an APR approaching 30%.
4. What is your financial plan to get out of debt?
   
   If you fail to plan, you plan to fail.  Did you know that if you are making minimum payments, you could be paying off that balance over a period of 20+ years?  AmeriFree can help you come up with a financial plan that will enable you to be debt free in 24-60 months.
5. Do you charge your day to day purchases on a credit card, rather than a debit card?
   
   If you use the available credit on your credit card, rather than paying with a debit card due to lack of funds in your checking account, this is a strong indication you are heading in the wrong direction.
6. Are you floating bills, or altogether skipping payments?
   
   If you find yourself in a situation where you are playing a sliding tile puzzle game with your cashflow, you certainly have problems with debt
7. Are you behind on your credit card bills?
   
   Being late on a credit card payment causes your previously small minimum payment to snowball into a much larger minimum payment.  It also causes your credit card interest to go up dramatically, and will cause the creditor to scrutinize your account.
8. Are you on a first name basis with those seeking to collect debts from you?
   
   Although it may begin as a casual follow up to your delinquent account, collection departments and agencies will quickly ratchet up the pressure to get paid.  Our debt solutions offer relief from the incessant calls, harrasing communications, and relentless pressure used by collection agencies.

After taking this quiz, you now have a better idea where you rank on the financial freedom barometer, and can forecast what lies ahead.  Fortunately we offer a free consultation to go over your monthly budget, unsecured debts, and living expenses to come up with a plan that can help you be debt free must faster than making token monthly payments.

Consumer Federation of America reports debt collection experienced the fastest growth in consumer complaints in 2008.  With the state of the economy, companies have cranked up the pressure and shady practices on consumers to collect debt.  Most people that are down on their luck, or behind on their bills will receive phone calls from collection agencies demanding payment for past due balances, however the trend is showing they are using more deceptive and harmful practices.

Despite the growth in consumer complaints, the resources to help are shrinking due to budget cuts and staff reductions.

Consumers that are having a difficult time keeping up with their bills should strongly consider enrolling in a credit counseling or debt settlement program with AmeriFree Financial.  Our debt solutions are consumer friendly, allowing you to pay what you can afford, while putting a stop to collection calls.  Call us today to discuss your financial needs.

In a Demos article titled The Plastic Safety Net, Tamara Draut and Jose Garcia outline how households are managing their cost of living in these hard economic times.

While the deep recession continues to threaten the financial well being of middle-income families, its become a more dramatic problem;  even before the economy tanked, millions of households were already having a hard time meeting most simple expenses, and barely making minimum payments owed to creditors.  As unsecured debt balances ballooned families are now experience declining home values and see their credit lines shrink, a lot more people are falling behind on their mortgage and credit card payments.

Now is the time to get out of debt!  Our credit counselors can help you develop a customized debt solution plan to help you get out of debt quickly.  The call is free, so act now!