When looking to work your way out of credit debt there are many aspects to consider, one of which is finding legitimate help. Unfortunately, there are just as many non-reputable companies out there looking to make an easy dollar off of unsuspecting debtors. However, you don’t have to be one of them. Here is what to look for:

Upfront fees: This is one of  the first, and biggest, warning signs. Paying for services upfront based on a promise to negotiate debts with your creditor is risky, especially when these services are not guaranteed. The truth is that your creditor holds the power of approval and any service provider that “promises” or “guarantees” they can help you should be an indication you aren’t seeking the right kind of help.

Sales approach: While it may seem normal for a debt relief agency to try to sell you on using their services, the fact is that a high quality service sells itself. A company that seems pushy or trying to get you to agree to working with them before you leave your initial consultation may not be looking out for your best interest. A reputable company knows they don’t need high pressure tactics, because they know that you can be convinced by their reputation.

Unlicensed staff: It can be hard to decipher who is a true professional in the field of debt relief and who is simply “trained on the job”. Anytime you are handling a matter as delicate as your finances and credit, it is important that you only use professionals who are properly trained and licensed. Look for staff to hold degrees in finance, accounting or law.

If you are concerned about finding quality help for your debt, contact a debt negotiation lawyer. Many offer free initial consultation to review your financial situation and discuss your options. To pay a small fee for debt relief is well worth the money, especially when you have the peace of mind of an experienced lawyer on your side.

Many of those experiencing overwhelming debt burdens reach a point of desperation. Worried about credit scores, asset liquidation and wage garnishment, many people are scared into making big decisions about their debt. For some, these decisions came without proper investigation; leading them into the office a phony debt relief company.

FTC Warnings

Just this week, the Federal Trade commission has charged an Ohio-based company for making fraudulent debt relief claims. Operating over 17 websites offering false claims of debt relief services, this company has been shut down and ordered to pay hundreds of dollars in restitution. Cases like this go on every single day, as the FTC works to protect consumers and put an end to predatory service providers.

Some of the more recent claims being made by this, and other phony companies, are:

• “Once creditors agree to make a deal, you can get out of debt from 12 to 36 months.”
• “The U.S. government decided to introduce a stimulus package to boost the financial institutions and prevent them from breaking down.  Part of this stimulus money is being utilized by the credit card companies to offer debt settlements to the users.”
• Debt settlement companies “can take all of your outstanding debt and not only eliminate at least 50% of it but also provide a realistic repayment plan for the rest of your debt.”
• “If you play your cards right, your debt problems will vanish before the first year ends.”

Other signs of a potentially fraudulent debt relief service are:

• Making guarantees to settle debts for “pennies on the dollar”
• Requiring debt payments be made through their company or asking for access to the debtor’s financial accounts.
• Requiring debtors to pay up-front fees for their services.
• Lack of proof of accreditation or unable to be verified by the Better Business Bureau.

If you are like the majority of Americans, you probably carry an uncomfortable amount of credit debt. While it is the debt collector’s job to obtain payment for your creditor, they are required to adhere to certain rules.

Fair Debt Collection

Debt collectors are notorious for pushing the boundaries of appropriate debt collection practices. Besides making repeated calls or using threats when attempting to collect, they are actually supposed to follow a protocol. The collector is required to send you a written notice telling you the amount of money owed, the name of the creditor who carries the debt and what action may result of the debt is not paid. However, if you wish to fight this collection activity you can do the following:

• Request written proof of your debt, verifying that you are the owner and sole responsible party for the amount owed.
• Research the collection agency with the Better Business Bureau and verify with your creditor that the collection agency is legitimately representing them.
• Send a written notification of your intent to cease communications with the collector within five days of receiving the collector’s notice.
• Contact your creditor directly to enter debt negotiations.

When it comes to dealing with creditors we tend to dodge phone calls rather than make them. If you are considering debt negotiation, you would be better served being the aggressor when it comes to making calls and discussing your account.

What Is In A Good Call?

When you contact a creditor to discuss your debt it is important that you prepare ahead of time for the conversation to come. First, realize that your creditor may not be very flexible, or even willing, to negotiate at first. This means that you will need to be persistent, but also polite. Threats or rude words won’t get you anywhere.

Also, be sure you have an idea of what you can afford to pay each month. Telling a creditor you cannot pay at all is not likely to get you any help. Instead, focus on the amount that you feel you can pay and even offer to set up an automatic payment system each month. This shows the creditor that you have intentions of repaying the debt and are simply looking for a modified payment.

Last, remember that you may need to make several phone calls or even speak with a supervisor. Debt negotiations rarely take place in one phone call, rather the most successful negotiations occur after several attempts to work out a deal and may even require documentation of your financial hardship. Be willing to put it all on the line and demonstrate your financial troubles by sending lack of income or copies of other debt accounts to show your need for modifications in your payment.

Unemployment continues to be a problem and salaries are stagnant. Income issues contribute to personal finance problems, which are easy to spiral out of control. When it comes to debt there are ways to get out, you just need to know your options.

Choose Wisely

One of the most underutilized resources for debt relief is credit counseling agencies. While many people have heard of them, very few have taken advantage of their affordable services. Seeking help with a credit counselor is one of the best places to start when you are looking for debt relief. Why? Because they can educate you on all sorts of debt relief options.

• Debt Management Plan — these come in two forms. A personal debt management plan is when you develop a course of action to repay your debts on your own. You may decide to pay minimums on all but one account and funnel all your extra cash to that account until paid off, then repeat with another account. You may also choose a structured debt management plan where you deposit money into a credit counseling organization, who then pays all of your creditors on your behalf.
• Debt Negotiation — is when you make an arrangement directly with your creditor to repay your debts in a modified way. You might  be able to negotiate a  lower monthly payment, a reduced interest rate or a reduction in your overall amount owed. The key to debt negotiation is knowing how much you can afford to pay and the ability to demonstrate financial hardship.
• Debt Settlement — is an arrangement between you and your creditor, in which you offer a one-time lowered payment in exchange for the remaining debt to be forgiven. You may offer to pay a lump sum of $5,000 on a $8,000; whereby the remaining $3,000 balance would be forgiven and your liability of payment erased.

Medical debt is becoming a problem for more and more Americans in today’s economy. With health care insurance coverage at its minimum, many people are uninsured or under-insured. When illness or injury strikes, even a minor trip to the emergency room can land you in thousands of dollars of debt. Luckily, medical debt is also one of the easier debts to manage.

Healthy Wallets

Medical debts can be scary at first glance, but the truth is medical debt collectors have very little recourse over collection. While a medical debt collector is rare to garnish wages or liquidate assets, they can damage your credit. Your best line of defense is debt negotiation.

Negotiating debts with any creditor can seem stressful, but it doesn’t have to be. Follow these simple steps to find relief from your medical debts.

First, contact your health insurance agency to discuss your coverage. You may need to file an appeal with your insurance provider to have your benefits reviewed. If you do file an appeal, be sure to collect all the necessary documentation (medical records, etc) to submit with your appeal.

If you do not have health coverage, contact your medical provider to request the non-insured rate for services. Medical providers often write off a portion of the balance for those without insurance and you may be able to have your total debt balance lowered in this way.

After you have submitted an appeal or requested the non-insured rate, contact the medical provider to discuss payment options of the remaining balance. It is important to know what you can afford to pay before going into the negotiation. Many providers will try to have you pay a set amount, which you may not be able to afford. Instead, offer to set up an automatic draft of your payment each month for the amount you can afford. This is will keep your account active and out of collections or under threat of credit damage.

When it comes to debt negotiation, things might be fairly straightforward, or the terms and agreements could be so complicated you feel like you were just hit by a legal train!  Everyone’s situation will vary, so there’s no short answer on whether you should handle debt negotiation on your own or call upon the services of a  professional.  However, here’s some food for thought as you make your decision.

Before You Hire a Professional

Do all the research you possibly can.  If you’re reading this blog, then you’re well on your way to beginning the research stage.  There’s plenty of advice on this blog and elsewhere on the Internet when it comes to making the most of your debt negotiation experience.  Soak up everything you can.

Start strategizing.  Based on what you’re learning, where does your debt fall in?  Debt negotiation strategies will vary if you’re dealing with a credit card company versus a mortgagee.  How does your debt align with the recommended strategies you’re discovering?

Draft your own debt negotiation plan.  How much financial information have you been able to bring in?  Are you including plenty of details?  Does your plan sound reasonable given the context?  How does it align with other plans you’ve seen?  These are all important questions to ask before you pitch your debt negotiation plan.

For many people who are facing debt and financial hardships, anything money-related can seem to be rather demoralizing.  However, it doesn’t have to be like that!  There are opportunities available to you that can help you turn your situation around, and put you back in the driver’s seat.

Enter Debt Settlement!

Debt settlement is a terrific way to approach your difficult financial situation.  If you’re feeling like all of your credit cards and loans are just too much to handle, and you’re behind on payments, then going through debt negotiations with a professional consolidation company can be a lifesaver.

If a debt settlement company tells you that the process is extremely easy, then be wary of their services.  Debt settlement is a great opportunity, but it will require a little bit of patience and a lot of perseverance from you.  But, the best things in life always come from work, right?

When you enter into debt negotiations, you will come up with a plan alongside your debt settlement company that helps you repay your debt more efficiently.  The process might require some lifestyle changes, but the method is always feasible.  Don’t worry!  You won’t go hungry to pay off your debts!

When you come out on the other end of the debt settlement process, you’ll be debt free, and experience life in a completely new way!  Many people who come out of debt negotiations can not believe how much of a relief the debt-free life is.  When you get rid of your debts, you’ll get to experience that wonderful feeling, too!

Dealing with creditors is not something anyone wants to face, especially alone. Since your creditor holds all of the power of approving a debt negotiation or settlement agreement, you are essentially left living on the hope that they will help. Although it isn’t impossible to pursue credit negotiations on your  own, many people find hiring a lawyer to be beneficial.

Representation

The most obvious benefit of hiring a debt settlement lawyer is their legal status. Having a lawyer shows the creditor that you are not alone and that you are well represented if they decide to pursue court action or engage in abusive collection practices. Many creditors may be more willing to negotiate a deal outside of court simply because you have a lawyer on your side.

A debt settlement lawyer can also take the stress of dealing with creditors off of your shoulders. As your representative, they can mediate all negotiations on your behalf and field any collection notices. This makes your job much easier when pursuing all of your options to negotiate a debt relief plan. Further, a lawyer is well trained in all aspects of debt relief and management. They will be able to review your situation to determine which of the numerous options available would best suit your financial needs.  You may find that getting out of debt is easier than you once thought and, with the help of your lawyer, develop a plan to financial stability.

While debt settlement isn’t for everyone, there are circumstances in which credit negotiations aren’t effective and debts are bad enough for bankruptcy. When a debt burden splits this line, settling debts directly with a creditor may  be an option. However, how you handle a debt settlement is extremely important in the outcome. In order to get the best deal, there are a few simple tips to follow:

Prepare your case- one mistake people often make when negotiating with creditors is failing to prepare. The best way to win your negotiation is to know how much you can afford to repay before you contact the creditor. Examine your financial situation and settle on a number that works for your budget.

Negotiate and counteroffer­­-debt settlement is nothing more than a simple negotiation between you and the creditor. Although the creditor holds the power of ultimate approval, you have the right to counteroffer to get closer to what you want. Remember that, like any negotiation, persistence is important but you also need to be flexible to compromise on a fair number.

Hire a representative-you may consider hiring a third party settlement company or a debt negotiation lawyer when dealing with creditors. These professionals are often well versed in how to negotiate with creditors and can help you secure the best deal possible.

Get it in writing-always be sure to get a copy of your debt settlement agreement. Never assume that any verbal agreement made with a creditor is valid unless you have a written letter to back it up. Make your payments according to schedule until you receive written validation of your settlement agreement in order to avoid default or penalties.