Today I'm going to focus on what you, the consumer, should be looking for when picking a Credit Counseling company to assist you with your debt(s).  Because I work for AmeriFree Financial I thought I would do my best to eliminate any bias so I went to the Federal Trade Commission (FTC) website to see what I could find. 

There was some excellent information available for consumers, much of which I’m going to share with you today.  Of course the main focus of the FTC, relating to consumer debt, is to help us avoid bankruptcy and to prevent defrauding of consumers.  The information below was taken directly off of the FTC website.  I hope you find this interesting!

Before You File for Personal Bankruptcy:
Information About Credit Counseling and Debtor Education

Produced in cooperation with the Department of Justice’s U.S. Trustee Program

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 launched a new era: With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.

Important Questions to Ask When Choosing a Credit Counselor

It’s wise to do some research when choosing a credit counseling organization. Some key questions to ask are:

• What services do they offer?
• Will they help me develop a plan for avoiding problems in the future?
• What are the fees?
• What qualifications do their counselors have? Are they accredited or certified by an outside organization? What training do they receive?
• What do you do to keep information about me (including my address, phone number, and financial information) confidential and secure?
• How are your employees paid? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization?
• How long have they been in business?
• Are they licensed in your state?
• How many consumers have they helped?

For More Information and Assistance

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them.

Conclusion

Thanks again for looking.  Should you have questions or would like to talk to one of the AmeriFree certified counselors in greater detail please call 1-800-360-9566 and they would be happy to assist.

Continue to check back often as information is continually being added!

Matthew

Debt Blogger

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.