Debt Collection Letter

Long-standing debt is a nuisance for both creditor and debtor. It can damage their professional relationship and trust especially when the one who owes the money is not cooperating or communicating at all. Sending out a letter to the debtor is one way to call his attention and this can be done even before the assistance of a collections agency.

Mindful creditors are smart when it comes to letters requiring action and response from their debtors. One good example is a prepared reminder from a credit card company or a service provider clearly stating their intentions of hiring a collections agency if due payments are not forwarded within a specific period. Some creditors give at least thirty days for their delinquent clients to pay off their dues in full; while others may have a leeway of up to ninety days.

In a perfect word, no one wants to hire a collections agency to do the cold calling and drafting of debt collection letters. But these agencies can also be the last resort if all attempts to communicate with your debtor fail. And of course, a professional collections company will abide by the guidelines that protect customers

Ensure That Debt Settlement Will Work

There are reports showing that an estimate of 10% of those enrolling in a debt settlement program actually achieve what they set out to do – get a significant reduction in their debts, pay it off completely and have the rest forgiven. The other 90% either went out to complete payments on their own or give up entirely and file for bankruptcy. Some of them got themselves even further into debt than when they started.

Most of you reading this may be slightly discouraged at the figures and while it is a normal reaction, you need to know a few things. The first is debt settlement does work. We have the 10% to prove that. It may be a small statistic but it goes to show that there is nothing wrong with the concept.

So what happened to the 90%? Or probably the right question is, what did the 10% do to make this debt relief work for them?

Most of the people who think so negatively of debt settlement are usually those who did not succeed at it. For one, most of them complain of the service fee that debt relief companies charge.

Stop the Debt Cycle

The debt cycle begins with word play. If lenders offered customers the opportunity to owe them money, most would decline and run for the hills. Instead, the word credit is used to trick the mind into believing your not entering into an employment agreement. The term debt free bread means money owned not owed which everyone should want. When you acquire credit you begin to work for someone else instead of yourself. For example, most people aspire to obtain a mortgage which usually carries a 30 year sentence. Luckily, my family’s attempt to do the same changed our relationship with money forever.

After applying for a mortgage with Wells Fargo, we discovered we couldn’t get pre-approved without extra measures like a manual underwriting complete with letters of explanation. The feeling of being rejected was a much needed wake-up call. We realized our finances weren’t healthy, managing debt is idiotic, and paying minimum payments on time wasn’t enough. That day changed my life because it began my quest to learn more about money, credit, and buying a house.

As a result, we’re now on a debt free journey and never want to acquire credit i.e. debt ever

Debt Assist

Bankruptcy is the dreaded direction when you cannot pay your debts anymore. It is not a debt free settlement scheme. It will freeze your debt accounts and in what price do you have to pay? Negative credit score, meaning, you will not have the chance anymore to get credit or loans from all financial companies which can last from 10 to 20 years depending on the severity of your problem.

So if you can still prevent falling totally into bankruptcy, be informed of your financial status right away. Do not let financial crisis ruin your life by paying attention to these warning signs when you can still do something about it before the problem gets worse. When you are not able to pay for the principal amount or full balance of your credit card, there may be something wrong with your finances. If you happen to spend your payment to cover other priorities, you need to catch up and pay bigger amount for the next month so interest charges on your credit card will not pile up.

Getting more debts to pay the other may be your way to survive the pressures and strains of your

Secrets to Becoming Debt Free

  • Write down all your debts. Sometimes, writing things down keeps everything in perspective and you get to see which debt should be prioritized.
  • Set up a realistic monthly budget and stick with it. This way, you know just how much should be spent for your daily needs and the amount that should be paid to your creditors.
  • Do not be content with the minimum. If you can afford it, you need to pay for more than the minimum payment requirement. Otherwise, you may end up paying for your debts forever.
  • Limit your spending what you can afford to pay in cash. If you cannot pay cash for something, best not to buy it.
  • Maintain only one credit card. If you have more than one credit card, keep the rest and bring out the one with the lowest interest rate. And if you have to use it, make sure you can pay for the debt within the first billing statement.
  • Build up your emergency fund. This does not really need much explanation. Just make sure you do not spend this fund unless you really have to.
  • Keep your entertainment activities economical. There are

Choosing Debt Consultant Company

A consulting company with the client’s best interest in mind will always take the time to inform about the exact services offered and the steps they will take to get a client to a beneficial settlement. There is no quick fix, and the debt settlement process will take some time in order to be debt free.

Stay away from companies that promise their debt settlement process will not affect credit rating or who promise debt problems can be fixed quickly. Going through a debt relief program means a credit score will go down before it goes up. This is one of the consequences faced when debt gets out of control to the point where it cannot be paid off.

Using a debt settlement plan is still a great financial choice, even if the credit score will go down. Choosing debt settlement means a business does not have to file for bankruptcy. To get a stable credit rating, business owners need to pay bills on time, or the score will drop significantly.

However, if an SBA own was used, then credit should not be affected too terribly. In an SBA loan, the borrower is the business

Way to Negotiate Business Debt

It is a bad idea to try to tackle debt negotiation individually. A debt problem is threatening and lonely. Having a good support system of friends and family will help relieve the stress of business debt. To actually help get rid of debt, seek out a debt consulting company to help organize, manage, and communicate with lenders to get a beneficial debt settlement.

Time can be a business’ enemy or friend, depending on how soon the debt is acted upon. Immediately contact creditors and explain the current debt situation. Ignoring lenders will make the situation worse. Tackling a debt problem in the early stages will make the process easier to resolve.

It is in everyone’s best interest to find a solution, so lenders should work with businesses to lower interest rates, increase the credit line, and restructure repayment options. Dealing with multiple creditors or collection agencies can take away from running the business. Reputable debt consultants can negotiate with creditors to settle debts for less than what is owed.

Creditors are terrified of losing the money they loaned out and need to remove the debt from their books. They will respond positively to efforts in

You Can Solve Your Debt Problems

In order to solve your debt problem, you must keep a proper record of your financial situation. You should be able to have figures on your revenue and expenditure so that you will be able to plan effectively. Book keeping is not reserved for companies or organizations alone, it is a tool that you can use to organize your finances and get out of debt.

Moreover, you can negotiate a lower interest rate or principal balance with your creditors, even if you have not missed payments or aroused their anger. By negotiating a lower interest rate, you will be able to prevent the debt from increasing. There is nothing bad in calling your creditors and ask if they could offer you either of these benefits so as to have the opportunity of reducing the burden of that debt significantly.

Since the quickest way to solve a debt problem is to have enough money to pay it off, if you have other sources of income, you can use them to settle your debt. You can make use of your investments or savings to pay part or the whole debt. This option is ideal in a situation whereby

Negotiate Business Debt

Debt can be owed to many different companies. It can come from utilities, service providers, landlords, suppliers, and banks or private lenders. First, it is important that business owners alert the creditors that the business is being closed. This could reduce the amount of liability owners carry.

After notifying creditors, owners should make plans to get rid of these debts. Options include paying the bills in full, settle the bills for less than the full payment, or file for bankruptcy. No matter what, owners should not ignore their debt and hope that creditors will ignore it as well. Collection agencies, repo men, lawyers, and lawsuits will haunt owners for several years.

Most likely, business owners will not be able to choose the first option to pay all the bills in full. This means owners need to negotiate their business debt to get a settlement. This depends on the type of creditor, the legal portion of the debts, and how severe the creditor acts.

If the business is an LLC or corporation without any debts personally guaranteed, then the creditor cannot collect from the business owner personally. This means creditors will be able to accept a

Debt Management Plan

This is one of the best options for people who have difficulty meeting their financial obligations. However, there are other options available and suitability will depend on your individual circumstances. A Debt Management Plan will work best for people who owe £5000 or more and can afford to pay at least £100 each month to their creditors.

Your normal household bills will have to be deducted from your monthly income first and the amount that remains is the amount available for your monthly DMP repayments. Normal household bills include, for example, your mortgage, rent, utility bills, council tax, food and groceries, travel expenses and child care. Many of these are classed as priority so they take precedence over payments to creditors.

Whatever amount is left after all these are paid will serve as the starting point for a DMP. The types of outgoings that can be included in a DMP include unsecured loans and overdraft repayments, catalogue payments, charge cards, credit card bills, payday loans and personal loans from finance companies.

Debt management companies work effectively in two ways. Firstly, they play an active role in helping you to take control of your financial commitments,