Are you in debt? Are you tired of answering harassing call and mails from various creditors? Are you unsure of whom to pay and for how much? Do you have too many cards and are not sure how much you owe? In today’s economy, it is all too easy to get seriously into debt; and the only way to get out of it is debt consolidation. What exactly is debt consolidation? Simply put, debt consolidation is a debt reduction system that allows consumers to combine their assorted unsecured debts into a single payment. Instead of sending out payments on six or seven bank and store credit cards, you could easily make one payment to the debt consolidation company and that company would then send the funds for you. This money management system can be highly advantageous to the consumer, as the debt consolidation company generally negotiates a reduced interest rate, a reduced balance, a lower monthly payment and eliminates late fees. The best part is you are given a set time period when the debt will be paid off in full. Mortgage loans and car loans are not subject to consolidation since these are secured. Unsecured loans like bank credit cards affiliated with Visa and MasterCard and assorted department store credit cards are the typical items you will put in a debt consolidation program. Should debt consolidation be preferred to bankruptcy? Creditors view debt consolidation in better light than bankruptcy. This is because debt consolidation shows the consumer's willingness to put forth a strong, good faith effort to take responsibility and pay for his debt; in contrast, when debtors file for bankruptcy, they opt to erase debt or pay little back, leaving creditors with very little from the debtor. Although bankruptcy allows consumers to wipe out their debt and start fresh, it also destroys the consumers’ credit background. With debt consolidation, a consumer can greatly reduce his or her debt, merge multiple payments into one payment, and preserve their credit background by avoiding bankruptcy. There are ways and means of going about debt consolidation, such as contacting debt consolidation companies and applying for debt consolidation loans. The Internet also lists many companies that are willing to help consumers begin the debt elimination process. Visit http:// liabilityrelief. com for more information on credit card repair, debt consolidation, and debt consolidation counseling.
What services do you offer? Look for an organization that offers a range of services, including budget counseling, and savings and debt management classes. Avoid organizations that push a debt management plan (DMP) as your only option before they spend a significant amount of time analyzing your financial situation. Do you offer information? Are educational materials available for free? Avoid organizations that charge for information. In addition to helping me solve my immediate problem, will you help me develop a plan for avoiding problems in the future? What are your fees? Are there set-up and/or monthly fees?
Get a specific price quote in writing. What if I can’t afford to pay your fees or make contributions? If an organization won’t help you because you can’t afford to pay, look elsewhere for help. Will I have a formal written agreement or contract with you? Don’t sign anything without reading it first. Make sure all verbal promises are in writing. Are you licensed to offer your services in my state? If not, run. What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, by whom? If not, how are they trained? Try to use an organization whose counselors are trained by a non-affiliated party. What assurance do I have that information about me (including my address, phone number, and financial information) will be kept confidential and secure? How are your employees compensated? 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? If the answer is yes, consider it a red flag and go elsewhere for help. Debt Management Plans (DMP) If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan. A DMP alone is not credit counseling, and DMPs are not for everyone. Consider signing on for one of these plans only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money. Even if a DMP is appropriate for you, a reputable credit counseling organization still will help you create a budget and teach you money management skills.
According to national surveys, the average household carries a credit card balance of approximately $8,000. Because of high finance fees, many people find that it is difficult to reduce their consumer debts. While bankruptcy is a tempting option, it is important to explore other alternatives for eliminating debts. Benefits of a Debt Consolidation Loan One approach for eliminating or reducing debts involves acquiring a debt consolidation loan. Although debt consolidation loans will not miraculously eliminate your debts, these loans make is possible to reduce your debts faster. Credit cards have high finance fees. Hence, it is difficult to pay down balances. In most cases, the minimum payment barely covers the finance charges. This makes it difficult to reduce the credit card balance. If you obtain a debt consolidation loan, all your credit balances are lumped into one loan. Furthermore, debt consolidation loans have reasonable interest rates. This enables you to become debt free within a few years. Using a Home Equity Loan to Reduce Debts There are various ways to obtain a debt consolidation loan. Individuals with good credit may qualify for a personal debt consolidation loan. Moreover, if you own a home, it may be possible to get approved for a home equity loan. Home equity loans are ideal because the rates are low and the terms fixed. Usually, homeowners are able to repay the money in five to seven years – sometimes less. With a home equity loan, your equity works as the collateral. If your home’s equity is $10,000, it may be possible to obtain a loan up to this amount. The funds can be used for anything. For the most part, homeowners use home equity loans to payoff credit card debts. Other uses for a home equity loan include home improvement, college expenses, etc. Disadvantage of a Home Equity Loan Home equity loans are very useful. However, it is essential to use the funds wisely, and borrow only what you can afford to payback. Home equity loans create another monthly bill. If using the money to payoff credit card balances, avoid accumulating additional debts. Increasing your total debts may create a financial burden. If acquiring a home equity loan, avoid over extending yourself. Failure to repay a home equity loan will result in foreclosure.
: The debt collectors do not have an indefinite period to keep on try to meet payments of old debts. There is an "expiration date", called the decree of the limitations, which prevents the debt collectors and/or the original lender, to continue you for the remainder of your life on old debts. Before you advance and introduce a payment on an old debt, check to be sure that the statute of the limitations did not expire. If the expiration date passed, you can be protected by law and irresponsible for this debt. .Use the Statute to fill your Need.
The statute of the limitations leaves for the date the "activity passed" in the account, according to the displayed thing in its report of the credit. It is not always the date last of his payment. If you one communicated with the collector beyond the date, you made the payment, and bought up to date your report of the credit to demonstrate that the new date as it goes again to the passed activity, the statute of the limitations will begin to leave this date. .At times the statute of the limits expired but the collection agents follow their efforts meeting because they hope that the indebted ones do not know to the statute and that that will pay with enough threats. If they are certain 100% the statute of the restrictions expired, they can simply overlook them. If a lawsuit against you is contributed, you will have the justification because the term expired for the debt recovery .
If you write an agreement of payment, speak with the collectors or promise to carry out a payment; you will restart the statute of the limitations at the day one!The Way to Know Your Statute of Limitations.Each one state has one singular period of time which one allows collectors to continue the recovery of old debts. Examine the statute of the restrictions on the debt to ensure your statute of states of the restrictions. Maintain in the spirit if you move from one state to another, the debt collector can try to restart the statute of the limitations for the new state; or prolong time under the terms of the laws of the new state if they precisely prove to be longer! .<>br
Bad credit debt consolidation loans are the loans which are offered to people who have had a past of bad credit history. Bad credit history means that a borrower was somehow failed to meet the intended or scheduled repayment scheme that was to be followed. Thus this failing brought about a poor credit score – a credit score is a representation of a person’s financial credit worthiness. Depending on the profile a person with bad credit history may be a default, an arrear or a person who has filled for bankruptcy. The principle on which the bad credit debt consolidation loans work is, in this loan all the accumulated debt that a person may have from different sources is organized under one head i. e. from a single creditor. This allows the borrower to concentrate on one single creditor and pay the loans of much easily than it originally seemed along with some other benefits.
Bad credit debt consolidation loans are also beneficial in other ways to borrowers. Like: • Bad debt consolidation loans are always offered at lower interest rates than the average interest rate of all the previous debts. • Some creditors are not professional enough to realize that a borrower may have a problem and do not understand the issue so a person gets organized and professional terms. • While in the process you will find many other fringe benefits of taking a bad credit debt consolidation loan. • A borrower can also choose between a secured bad credit debt consolidation and an unsecured bad credit debt consolidation. This allows people who have not been able to take loans because they do not have collateral to apply for these loans as well. Before the people apply for bad credit debt consolidation loan they can use the following process which is intended to help them. 1. The borrower should first estimate all that is requirements and all the other finer details of the loan. 2. A person should try and use the free quotes that are made available by the creditors and choose one which suits the best. 3. A borrower should not rush for the loan in fact they should talk to few creditors and then choose the one which offers us the most favorable terms. In the meanwhile we can take the advice of the counselors as well. By following these measures a borrower is likely to get a deal that is perfectly suitable. In the end after all the steps have been taken and a decision to take a bad credit debt consolidation has been made all is left is for the borrower to do is to apply for the loan. That process is easy and can be done by applying on line or through a local creditor.
It’s a question that has stumped wise men (with overdrawn credit limits) for generations. Do I file for bankruptcy, or do I get debt consolidation loan and spend ten years paying off my debt? The simple answer is, if you can do the latter, do it. Sure, bankruptcy means you don’t owe anything to anyone (well, sometimes it means you need to sell your assets, but more often than not you’re starting afresh), but it also means a big fat black mark on your record that will never go away (despite what some people say about seven years being a magic slate cleaner). Bankruptcy marks you as a bad risk for every potential lender. Mortgage lenders, credit card companies, employers – they all see that credit history and get the same furrowed brow. And even worse, the Bush administration has chosen to pass laws that mean, now, if you go bankrupt owing money to a credit card company, they can take your family home. Yes, that’s right, the government has made it law that, unlike big businessmen who can go bankrupt every second year without penalty, normal people like you can have your family home taken off you just because you couldn’t keep up with your MBNA payments. Of course, the credit card companies were behind the bill, and spent millions on Congressmen and Senators to ensure it passed without too much debate, and millions of Americans who look at their debt and think, “Well, I can always go bankrupt”, have no idea that if they do, they’ll genuinely lose everything they have. Which leaves us with the other option – debt consolidation. Debt consolidation is when you gather all the debts you owe, pool them into one amount, and borrow that amount from a bank or other financial institution, to be repaid over a long period of time, at a set (and low) interest rate. It means that everything you owe to Sears and Best Buy and MBNA and Citicard is suddenly paid off, and all you owe is one long-term debt to a stable, secure, eager to help you stay afloat bank. Think about it – why carry six debts that all need to be repaid in the short term, when you can have one debt that doesn’t have to be completely repaid for years? It just makes sense.
: Credit card debt consolidation program is the process of taking one loan in order to pay off many other loans. This provides the ease of paying one loan with secured or fixed interest rates. Many companies provide credit debt consolidation services and it is advisable to consolidate credit card debt because credit cards carry high interest rates than those of an unsecured loan from a bank. Today, more and more credit cards are used because these are the safest method of payment to sellers and there is less risk of being theft. But while you shop with the help of credit card you have to make timely payment with amount due. This sometimes creates lots of stress while you are in debt because of credit shopping and the creditors are constantly calling you up one after the other. A good way to escape of such headache is to go for a credit card debt consolidation whereby all loan debts taken by you shall be treated as a single creditor. It would then become easier to pay off one single creditor rather paying many creditors.
While you need to pay many creditors you all have to keep a record of the amount to be paid and the due date whereas by taking a debt consolidation you need not worry for that. At the same time with the help of debt consolidation you can have lower interest rates in form of lower installments. You also don’t get those annoying phone calls by your creditors since you are not supposed to interact with them. You can take these loans either with security or without security whatever you could afford. There are many website that offer online loan services or you could directly move to a local creditor as per your requirement. In any case you should always be careful that you are not cheated on any grounds and terms of debt consolidation are very clear to you. Debt could be very hectic but it could be made simpler by taking a debt consolidation loan.
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Debt negotiation and debt management/consolidation both help consumers pay off their debts through two different approaches. Each affects your credit score, payoff period, and taxes differently. Before choosing either options, be sure you understand the long term consequences of each debt management option. Influence On Credit Score Debt consolidation is better of the two when it comes to influencing your credit score. By consolidating your different loans into one, you are using the same amount of credit and will be dinged only slightly for opening another account. If you choose a debt consolidation company, your creditors may report delayed payment. However, after regular payments have been established for several months, you will be able to apply for more credit if needed. Debt negotiation leaves a lasting impact on your credit history, much like a bankruptcy. When creditors agree to reduce your debt, a record of the debt reduction will stay on your credit score for seven years. However, you will be able to qualify for credit as your score improves, usually within two years. Payoff Period Using a home equity or personal loan to consolidate your debt can extend your payoff period up to 30 years. You can also choose shorter periods for your loans. A debt consolidation company can help you pay off unsecured loans in less than five years. Debt negotiations reduce debt, but don’t eliminate it. Credit cards and short term debt can be paid off in less than five years. Other forms of credit can take longer. Tax Impact Interest from your home equity loan can be deducted from your taxes for a financial savings. But any debt reductions have to be reported as income to both federal and state governments. Expect to pay income tax with debt negotiations. Cost Of Fees With both types of debt management, you can expect to pay fees. Depending on the type of home equity loan you pick, fees can range from hundreds to thousands of dollars. A second mortgage or line of credit have lower fees than cashing out your equity with a refinanced mortgage. Debt management and debt negotiation companies also charge fees for their services. Fees should not be paid until these companies actually provide you with a service. Also, compare several companies to be sure you find the best deal.
Tax debt relief is opted for by people who have somehow failed to file their returns, which in result have made them liable to pay a repayment of back taxes. This is no doubt a severe and frightening state of affairs. This may occur due to various reasons. It might be an emergency such as individual or family illness, death in a family, change in economic condition, and lack of budgeting or lavish lifestyle. In these situations failure to pay the money or underpayment are the two most common things to happen. And if this thing really occurs one should fix it as early as possible that is because some forms of non-payment are liable to be punished by imprisonment for every year of taxes that has not been paid. Tax debt relief is the best solution that one can go for if he or she has failed to pay the taxes in time. There are several tax debt relief agencies that offers tax settlement plans so that their clients may come out of their debt quickly.
They have specialized professionals who work round the clock to help out their clients. Government also on the other hand has many provisions for the people who have their taxes due. An underpayment is easier to pay back than the person who has just refused to pay the money. With the help of a professional mediator one can reduce his or her payable amount to a smaller fee, which will enable the government to get back a portion of the money that is owed. Tax debt relief may often call for legal proceeding that is why a proficient lawyer who is qualified in this field is indispensable.
The professional attorney can help to get the relief without imprisonment. Whatever the reasons be, taxes due are always offensive in the eyes of law. The tax collectors in the first hand send legal notifications which if not answered leads to the prosecution and the professionals best handle these situations. Conditions that lead to inescapable delinquency are always unacceptable but not beyond negotiation which can be done with the help of a professional tax debt relief help. A proper Tax debt relief program provides quite a few pertinent assistance such as embellished salary, bank charges, bankruptcy among other circumstances.
A responsible citizen should never ignore to pay tax. Even if he or she failed in first position, a solution should be tried to find out and the amount should be paid back. The person who has failed to pay his or her tax for the first time shall also have to plan certain things for future so that it might not happen again. A tax debt relief might work first time but it should be kept in mind that government is always willing to help people but those who commit the same mistakes again and again shall be considered irresponsible and be put on trial. That is why it is always advised to have a certified help plan for the future payments.
Important Advice on Debt Consolidation Advice for debt consolidation is great, in that the advice given by qualified sources can help you find a solution to relieve your debt and build your credit. Debtors often tire from hassling phone calls and letters from collection agencies and creditors. If you are tired of searching on your own for a solution for repairing your credit, paying your debts, restoring your life; and are tired of getting turn downs on loans, then read this article: it might be that advice you need to find debt relief on your own. To begin with, on a personal level, it is important to cutback on your spending, as well as avoiding purchases that are not necessary. Cutbacks mean that you will review your bills carefully and look for areas where you can reduce your bills for debt consolidation. For example, how much are you paying for car insurance? Is it possible you can find another provider that offers cheaper rates? There are also a number of do-it-yourself kits on the market that can help you consolidate your debts and manage your money more efficiently. Do-it yourself kits are available online to help you process debt consolidation on your own; however, these kits may cost you a small fortune. But do not despair. The library has completely free kits to help you go through the process of debt consolidation on your own. This includes kits for going to bankruptcy court if you find no other way out of debt. Any service or company that is trying to charge you fees or interest rates for helping you to get out of debt is a source you should avoid if possible. There are free services, including United Way and a few other sources that will help you relieve your debt, while giving you advice on debt consolidation. You should definitely consider seeking help from them. Many people fall into traps, since some advisors will lead them in the wrong direction hoping to make more money in the long run. For the best solution for debt consolidation, try spending some time at the local library, where advice is free and information is abundant and less biased.
Do you have huge pile of debt, and desperate to get rid of it right away? Free debt consolidation can be very tempting to take as a fast solution. Do Free Debt Consolidation Really Reduce Your Debt? Some company will lead many to believe that they can literally reduce the amount of your debt. In most cases these companies only reducing your rates of interest.
As a matter of fact there's nothing free in this life, everything has it own price. In many cases free debt consolidation only means you can get free quote or free counseling session from particular organization. It can help you a lot especially when you have no money left, and you should use this kind of facility well. But first off be careful to choose with whom you can trust. Having free counseling can help you a lot by asking many terms you may confuse with, they will answer all of your questions, because different field has different language, and understand the language is the first step toward your success in that field. The Trap of Free Debt Consolidation But beware, many companies use free debt consolidation with refers to free consultation just want to lure you into paying more money for their services. You should choose wisely whether you can trust those free programs or it is better to pay. Sometimes those free programs just add more worries to your financial situation, and in this case it is better to pay program with clear costs and fees. Remember, "you get what you paid for" At first you may reluctant to spend money with huge pile of debt, but in the end it will pay back many times. If you choose your company well they can give you a great deal of assistants in managing your debt. Words of Advice Educate yourself first before taking any decision, with informed decision you can avoid company that use paralegal tactics and means. There're a lot of books and articles on web that discussing about debt consolidation.
Refinancing your home loan can be worthwhile for several reasons. If you purchased your current home when rates were high, refinancing for a lesser rate may actually lower your monthly payment. Moreover, refinancing your home and receiving cash at closing is another attractive feature. With this option, homeowners also have the opportunity to eliminate debt. What are Refinance Mortgage Loans? By choosing to refinance your existing mortgage loan, you will create a new loan to replace the old. Aside from getting a lower interest rate, some choose refinancing to convert their adjustable rate mortgage into a fixed rate. Obtaining a shorter loan term is another reason for refinancing. Refinancing your home loan may take several weeks.
Moreover, homeowners must have the disposable income to pay closing costs and other mortgage fees. How to Consolidate Debt with a Mortgage Refinance? A cash-out mortgage refinance will allow you to obtain a lump sum of money when you close on the new loan. When you refinance, you create a new mortgage and borrow money from your home's equity. The borrowed money can be used for any purpose. Debt consolidation is a top reason why many homeowners choose this option. Once the funds are received, you can use the money to payoff the balance on credit cards, automobile loans, student loans, personal loans, etc. In most cases, the amount borrowed from your home's equity can be included in the new mortgage amount; thus you will not acquire a second loan.
Choosing a Good Debt Consolidation Refinance Lender Several lenders are willing to offer mortgage refinancing. However, homeowners should not make a hasty decision. Instead, you should carefully review lender sites and request quotes before making a final decision. The key to refinancing is getting a good, low rate. Moreover, homeowners should attempt to get some fees waived. For this matter, contact the lender of your current mortgage. If you were a loyal customer and developed a good relationship, your lenders may not charge fees such as title search, application, etc. In this instance, you can save hundred on your closing cost. Working with an online mortgage broker is another great way to locate a good lender. Brokers will contact several lenders on your behalf. In turn, lenders will make you an offer. The offer will include rates and mortgage terms. You choose the lender with the best quote.
Debt has a way of piling up in a sneaky way. Many consumers think that they are wisely managing their money until the day comes when they realize that they are way too deep in debt. The average U. S. household has nearly $10,000 in credit card debt, and that debt is often distributed among multiple accounts, each of which has its own minimum payment requirements. As most credit card companies have recently increased their minimum monthly payment requirements to approximately 4% of the unpaid balance, paying off a number of credit card accounts at once can be difficult. The sum of the minimum payments can be more than many people can afford to pay. There is a solution, however. It is called debt consolidation. Debt consolidation is the process or taking out one loan to pay off a number of different loans.
By doing that, only one payment need be made each month. Depending on minimum payment requirements for the credit card debt, the single monthly payment could actually be less than the sum of the previous payments, thus easing the burden of retiring the debt. But where can you get such a loan? While there are companies that advertise heavily that they can provide such loans, you may have other sources of funding at your disposal. Some may be worth pursuing, while others may be poor choices. Home equity loans - If you own a home, and most people do, you could borrow against whatever equity you have accrued during the time you have been living there. Home equity loans are available from many lenders at affordable interest rates. As a bonus, the interest is deductible from your Federal income tax returns on loans of up to $100,000. Be aware, however, that a home equity loan puts your home at risk if you default on your bills. Retirement plan or 401(K) - If you have a retirement plan or a 401(K) plan where you work, you may have the option of borrowing against it. The interest rates are quite favorable, and it may seem like you are borrowing from yourself.
The downside to this is that your money is not earning interest during the time you have borrowed it, and this lost earning power is lost for good. You can't make up for interest you didn't earn. Insurance - If you have whole or universal life insurance, you may be able to borrow against it. Talk to your insurance agent for details. Family and friends - Not always the best choice for a loan, but it may be better than nothing. Just remember that many valuable friendships have been lost over loans. If you plan to borrow from friends or relatives, make certain that you can them back in a timely manner. Most people with problem debts will have one or more of these sources of funding available if they want or need to consolidate their debts. Before you borrow, be sure to weigh all of your options carefully.
The last thing you want to do while trying to get out of debt is to make the problem worse.
Debt is a four-letter word we all want to avoid. However, the cost of living alone is so demanding that debt follows us wherever we go. We have to pay bills, pay for clothing, food, gasoline, taxes, rent, mortgage, car payments, college, etc, that sometimes it is next to impossible not to find yourself humming this four-letter word. The best way to solve debt is to sit down and find solutions. Solving problems is the first step you will need to take to find a way out of debt. Once you start to see you have options, you can find it easier to cope with your stress and debts. If you cannot find new ideas to help you find ways out of debt, visit your local library and look for debt solutions and guides that walk you through steps in getting out of debt.
Having many resources can help you to pull up new ideas that lead to solving problems. Rather than allowing problems weigh you down, take action now and find solutions that will reduce your stress and your debts. If you have access to the Internet, search the engines to find relevant links that guide you into debt relief. Stay away from companies that offer to get you out of debt for a high monthly fee. The concept of getting out of debt is to relieve self of extra burden, such as a new bill. For the most part, you can call your creditors and make payment arrangements. The creditors are often glad to hear from you. Rather than have the hounds from hell hunt you down, the creditors would rather keep you as a friend, since they want you to pay your debt and incur future debt with their company. You have recourses when it comes to finding ways out of debt.
Debt elimination is not an option, since when you get rid of one debt another will follow. You get the point. The solution is getting out of the past debts you owe, set a budget and avoid spending more than you can afford. Pay off one debt at a time, until gradually you find relief. To avoid incurring additional debt, stay away from credit cards. Only use your credit cards to pay bills, and payoff your credit card as soon as possible to avoid high interest rates. Stay away from payday loans also, unless you see that you can avoid late fees and can payoff the loan right away.
Keep in mind however, that payday lenders often attach a steep fee. The above tips are just some of the many ways to keep out of debt and manage the debt that you already have. If you can manage your debt effectively you can save a massive amount of money over the years in interest.
Debt Collection FactsThis article is intended to be a brief general guide only and should not be used or relied on as a complete or authoritative source of legal information.
INSOLVENCY PROCEDURESThe insolvency procedures open to a creditor are a powerful tool in recovering debts. Whether the debtor is a company or an individual, an intelligent application of the insolvency rules can enable a creditor to obtain payment of their debts without the need for protracted and costly litigation. The insolvency rules can be used for a broad range of debts exceeding Ј750 provided that the debt is not genuinely disputed by the debtor. Insolvency procedures however can be a high risk strategy and one needs to be very careful in using these procedures. There are substantial adverse cost consequences where the procedure is incorrectly used.
GUARANTEEIt is often the case that debts that are difficult to collect from the debtor company are as a result of inadequate checks being made as to the financial strength of the company when the contract was entered into. It is therefore essential that you should check the credit rating of any potential new customer or client and where there is concern as to the ability of the company to make payment for goods or services supplied, then you should obtain a guarantee either from a parent company of sufficient financial standing or an individual to ensure performance of the contract. It is essential that any guarantee is documented in writing and clearly places the guarantor under a binding and contractual obligation to meet the liabilities of the company or individual if they default in meeting their contractual obligations. It is essential that the wording of the guarantee is well drafted as the courts tend to construe the terms of a guarantee strictly and will only find that there is a third party liability if it is quite clear from the wording of the guarantee.
INTERESTWhere a debtor has failed to pay you monies for goods or services supplied, it is normal to charge interest for late payment. Interest can be charged either in accordance with your terms and conditions of business provided your terms make provision for this or, alternatively, you can apply the Late Payment of Commercial Debts (Interest) Act 1998 which allows you to claim interest on overdue accounts. If the contract with the debtor predates 7th August 2002, then businesses that are eligible to charge interest can do so at a rate of 8% above the Bank of England base rate that was in place on the day the debt became overdue. For contracts dated on or after 7th August 2002, all businesses can charge interest at a rate of 8% above the late payment reference rate. The Bank of England base rate on 31 December, is the "reference rate" for debts becoming overdue between 1st January to 30th June each year. The Bank of England base rate on 30 June, is the "reference rate" for debts becoming overdue between 1st July to 31st December each year.
RETENTION OF TITLEA well drafted set of terms and conditions of business will include a retention of title clause. The effect of such a clause enables a seller of goods to retain ownership of the goods supplied until payment has been received in full. This can be of great value where the purchaser of the goods supplied becomes insolvent. There are various types of retention of title clauses but the essence of a well drafted clause means that a seller will have added protection in the event of failure by the purchaser to comply with their contractual obligations and pay for the goods ordered. In particular where a buyer subsequently goes into liquidation after acquiring stock which is subject to a retention of title clause, then the seller of the goods may be able to obtain the return of the goods notwithstanding the fact that the buyer has gone into liquidation. A carefully drafted retention of title clause is a powerful tool to assert ownership rights and recover property. They can however be complicated and need careful consideration.
TERMS AND CONDITIONS OF BUSINESSOne of the major reasons that clients have difficulty in recovering their debts is because they either have inadequate terms and conditions of business or they in fact fail to have any written terms and conditions of business. Although terms and conditions will vary from one business to another and from one industry to another, certain key areas are common to all businesses and need to be addressed in your terms and conditions. Your terms and conditions should :- - Ensure that the customer or client’s details are correctly shown. - Make clear whether you are dealing with an individual, a partnership or a limited company. - Set out what services or goods you will be supplying. - Clarify when payment is due. - Make provisions to protect you if for good reason you are unable to supply the goods or services or only part deliver the goods or services or if faulty goods or inadequate services are provided. - Ensure that you retain ownership of goods until payment in full is received. - Make clear any additional charges that may be payable if the customer or client fails to pay in accordance with the payment terms. In particular the right to claim interest and the right to claim for collection costs and solicitor’s fees should be clearly set out in the terms and conditions. - Ensure you comply with all statutory requirements. A well drafted set of terms and conditions will make collection of a debt substantially easier.
Not all debt consolidation companies are the same. Some are in the business of offering you a service to pay off your bills and clean up your credit history. Others take advantage of your situation and scam you out of your money. To protect yourself from such companies, compare programs based on their services and promises. Non-profit Versus For-profit The only difference between non-profit and for-profit debt consolidation programs is how they file their taxes. Some of the largest fraudulent companies claimed non-profit status. However, there are many legitimate non-profits. Some of these companies are subsidized in part by creditors, reducing fees you would have to pay. This is especially true for agencies which cater to those with poor credit. Legitimate for-profit companies charge comparable rates, but they usually focus on those who still have a good credit score but are struggling to pay bills. Like a non-profit, they can reduce your interest rates for most types of unsecured loans, making repayment easier. Monthly Payment Quotes – The Litmus Test The real litmus test to find a credible debt consolidation company is to request a monthly payment quote. By providing information on your account balances, interest rates, and creditors’ names, a debt consolidation company can give you an accurate quote. Compare this payment with several other agencies. Since all companies will get you the same low interest rate with a creditor, there should be very little difference between quotes. Anything too low is a sign of a shady deal. Services Provided Besides requesting quotes, you should also research the services they provide. Debt consolidation involves constant communication with creditors to lower rates, remove late charges, and close accounts. Companies that fail to mention what they do for you are probably more interested in taking your money than servicing your accounts. Also be suspicious of companies that offer debt settlement or bankruptcy help. If they are doing their job, there is no reason to use these credit damaging services. In the end, take the time to research companies to find one you are comfortable with. By making the investment of time now, you can save yourself headaches in the future.
California debt consolidation is no different from any other state's consolidation firms, only that the laws may change slightly. Many of the debt consolidation loans offered in California are lent to families and individuals to help them payoff their debts. If the money is used for any other purpose, the debtor may face penalties. Many firms--instead of giving the debtor cash--will manage the loan them self, using it to payoff the debts owed. Instead of paying your pending debts, you will now be paying off a loan lent to you by one of the debt consolidation agencies in California. Rather, if you are paying for a vehicle, mortgage, or credit cards, then the debt consolidation agency will use the loan to payoff these debts, leaving you owing the amount of the loan, plus interest. Don't be fooled! No one can really reduce your debts in most instances.
Rather, no can reduce your debts more than you can yourself. If you contact your creditors before you land in the hands of the collection agencies, you can negotiate on your own. Some creditors will reduce you debts, while others may terminate the debt entirely. The downside is that if the creditors wipe out your debt, or else reduce your debts, then in one instance you will be a 'write off." In other words, the information given to the IRS, which in turns adds the debt back to you by increasing your taxes. The solution isn't entirely a bad deal, since the IRS only comes around once every year, which will give you some time.
Most people with credit cards utilize the cards to their limits and fail to make full payments on time. This is one of the primary reasons why people search for debt consolidation, since most credit card lenders include high rates of interest. If this sounds like you, stop borrowing and try to increase your income; try to get your finances on track before you ever even consider contacting a debt consolidation agent.
: You are in debts and have decided to start afresh with a debt consolidation loan. At this time, the last thing you need is unfavorable terms that will keep you in debts for even longer time. Be sure to check out the following aspect before you commit and finalize your debt consolidation loan. Upfront Fees Small upfront fees like processing fee are common in most debt consolidation loans. Avoid loans with expensive upfront fees and companies that offer to charge you large commission to help reduce your debts. Interest Rate Your interest rate should be much lower than that of your credit card rates. A debt consolidation with high interest rates will only slow you down in clearing your loan off. Get and compare as many loan quotations as possible.
It would be best to get a fixed interest rate loan such that your monthly payments do not change over time. It will be easier for you to plan your budgeting. Repayment Period Your loan repayment period should not be too long as it will increase the amount of interest paid. You can even find yourself paying more than before you consolidate your debts. As far as possible, you should aim for the shortest repayment period to save you on the interest.
Try to work out a repayment period and amount where you can manage. Effects on Credit Rating Understand your debt consolidation loan procedures before you sign your loan. Ask if it is going to affect your credit rating and scores. Avoid lenders who are not clear on the issue as these are most probably the ones that will mess up your credit rating. Local Consumer Affairs or the Better Business Bureau It is in your best interest to check out the reputation of the company that you are working with. You want to avoid working with someone who receives tons of complaints. Check you with your local Consumer Affairs or online with bbb. org/ to see if there anr any outstanding issues with your lender. With all the above factors considered, you should be able to find a good debt consolidation loan to help you regain a debt-free life.
How to Find Suitable Debt Consolidation Financing People tired of wading in the pool of debt will often seek out debt consolidation financing solutions. Some people land in debt because they lost their jobs, went through costly divorces, fell victim to an accident that disabled them, or extended their credit beyond their financial means. To make things even worse, many of these people file for bankruptcy, believing there is no way out. Bankruptcy leads to additional problems, since the bankruptcy stays on your credit report for up to ten years. Many debt consolidation financing solutions offer debt reduction programs for relieving debt. They claim to reduce your entire amount owed through the process of negotiation. Some debt consolidation financial solutions claim that they will get your bills reduced up to 70 percent. Many of the debt financial services work to help people avoid bankruptcy, eliminate the hassling phone calls from creditors and collection agencies, as well as lower their payments up to 70 percent. They will combine your entire amount into one monthly payment, thus claiming to make it easier for debtors. Therefore, if you are searching for debt consolidation loans, be advised that there are several online sites that offer such services; and many of these websites are run by scammers, act illegally by using advertising tricks that lure debtors into their hands. Once the debtors become involved with the companies, they soon learn that they are in deeper debt. This is why it is important that you learn your rights under the law. It is also important to investigate any source that claims to loan you money for relieving debt. You will also need to learn your choices before jumping into any agreement that can send you out in left field. One of the best ways to get educated on debt consolidation is to visit libraries or go online to government resources, searching for debt consolidation financing.
Getting into debt is fun isn’t it? You get to buy all those cool clothes, take your friends out to dinner, do anything you want, after all you’re just going to “put it on your card” -- Spending money is fun and paying with a credit card to just too easy, so easy that before you know it, you’ve buried yourself under a mountain of debt. Once you’ve fallen into the trap of credit card debt, it’s very difficult to get out. Taking out a debt consolidation loan is sometimes the best way to eliminate the burden. There are a few ways that you can get a loan to consolidate your credit card bills but in my opinion the best way is to gather some free debt consolidation loan quotes. There are a number of agencies that will do some of the work for you and help you find the best loan for you. The fastest way to get out of debt is to pay off your existing debt with the lowest interest rate. A debt consolidation loan is the best solution for this. A few minutes of online research will reveal a number of agencies that will give you a free debt consolidation loan quote. Be sure to take all your quotes and compare them side by side to get the best rate and terms. The time you spend researching will be well spent because it can save you thousands of dollars. So what do you want to look for when making your comparison? The first thing is the most obvious; you want to make sure you are getting the lowest interest rate. This rate should be lower than the rate that you are currently paying for your credit cards as this will accelerate the pace that you’ll be able to pay off the debt. The other detail that some people over look is weather the loan is secured or unsecured. Make sure that you are getting a loan that is unsecured. If you have to put your home or automobile up as collateral for your loan, you now have the added stress of worrying about losing your property in addition to paying off the loan. Unsecured loans will generally be at a higher interest than an unsecured one but the lower stress levels may make it worthwhile. Many consolidation loan companies offer online quote applications. You can apply to a number of agencies and then select the best quote. You can apply for a quote on the telephone or they may send you an application for you to fill out and then send it back through the mail or fax. There are also companies that will offer an application online and give you an answer in just a few minutes. Getting a free quote before you decide on a debt consolidation loan is the best way to get yourself out of debt fast. Take advantage of the ability to compare these free quotes choosing the right one will have you back on the road to freedom from debt in no time.