Ideas towards Debt Relief

The first word when associate with debt is stress and debt relief is relaxation. In the similar way when we decide to take debt, people should give thoughts to ways for debt relief. The market is overflowing with companies who offer services dealing with debt relief. But can they all be trusted and are the ways they offer the best ones with regards to your debt. Help should always be welcomed but cautiously as like in any other industry or business, there are fraud and scamming companies in this sector too. So, what does one do and how to go about the process?

Well the first step towards debt relief is to understand the debt situation clearly. As correct for any financial transaction, we do not always consider all aspects of it when we agree to it. Such as when agreeing a student loan or mortgage on a house we overlook the years and exceptions in rules for debt exemption. It is a common error on the part of debt owner as these terms and conditions are often in small print on the agreement or are explained by the dealing party in a way that does not emphasise their impact. So, the first point to start when regarding debt relief is to know absolutely everything about the debt conditions.

The next step is to know the local legalities regarding debt relief and their relevance to the specific case. It is at this point that often people get confused and start stumbling due to lack of knowledge in the aspect. The best solution to this problem is to look for answers online and research the situation in depth. Technology has covered the distances to enormous lengths and almost everything is available on internet. Once, there is a better idea of the legal conditions and its relevance an approach can be formed. If there are still doubts regarding the legal conditions of debt relief, professional help can be sought.

When considering professional help it is good to go by reputation of the firms. There is always a risk that wherever we go it might be a mistake but sticking general consensus of good usually works. Once professionals get introduced it is important to not get laid back and take everything for granted. One should be as involved at each step of the process as the professionals because at the end of the day nobody cares about your debt relief than yourself.  

Debt Settlement: Is this better than Debt Consolidation?

Debt settlement is a situation in which both parties; creditor and debtor, agree on a reduced amount to be repaid over a fixed period of time. Debt consolidation is a process where a person either takes a loan to repay the creditors at once or engages a debt consolidation services firm who manage a monthly payment for the creditors charging a fee or commission from the debtor.

Debt Consolidation: 

This is a solution for people to start taking action towards resolving the debt. The process requires a lot of research and study on each case and the decision which option to adopt is a critical one. The choice between whether to take a loan and repay the loan at once or to pay monthly to debt consolidation service to pay the creditors by charging a commission is difficult. The first option entails that previous debt is paid at once but there is another debt of a loan which includes interests and is equivalent to any other debt. While the second option is processed within the available resources, there is quite a bit of money that is paid extra as the commission of the debt consolidation services.

Debt Settlement:

This solution is more focused on resolving the debt problems in a shorter time period. The process is shortened because both parties involved wish to waiver a part of the debt so that repayment can be done sooner. It has been argued mostly that it is loss situation for the creditors but has been researched to realize that in practical terms it is not a loss situation. Since the creditors get the money in less amount of time, the lost amount can be recovered by reinvestment. As for the debtor, there are usually no extra debts involved and repayment is made within the resources available to them. There are a lot of debt settlement firms who help in this process and charge a onetime fee from both the creditor as well as debtor.

So, it is difficult to decide which option is better in generalized version; debt consolidation or debt settlement. The choice depends upon the circumstances of the case and the debtor and acceptance of creditor. But it can easily said that both options help resolve the issue of debt and should be considered before a decision is made about one’s financial crisis.

Debt Relief: Ways to be free from debt

Debt is not something that anyone is ever proud about. It hits a person’s ego and confidence every single time when think of the debt that owe or when mentioned to them. Debt induces to increase stress, decreases self-confidence and plants seeds of self-doubt. It does not help either that society always looks down upon people ridden with debt no matter what kind. So, why is it that the majority of people still are debt ridden?

Thus, we discuss the ways by which we can keep our debt free under normal circumstances. There are always exceptions when people get debt ridden due to being in dire situations. So, besides such exceptions we take seven simple steps in life, there is a huge possibility we would be debt relief.

1. Focus on needs rather than desires: It is important that we understand our resources and needs and act accordingly. The needs should be our priority and the focus should be on fulfilling them and living with the needful. The desires in life should never become priority especially in the lack of resources to accomplish them.
2. Use cash for the majority of task: When we use cash for activities like shopping and buying gas for cars, the knowledge of the exact amount of money left helps keep us in check from overspending.
3. Managing activities by own: It helps a lot and also enhances skills and knowledge to perform activities by ourselves. It helps save from paying other for the same.
4. Minimum use of credit cards: Credit cards makes it difficult to restrict ourselves from being extravagant. So, their usage should be kept to a minimum of emergencies.
5. Evaluate finances regularly: It is always advised to regularly evaluate the financial situation. This gives us the clear image of our earning and spending to make any changes needed.
6. Think about debt before taking it: People fall prey to the flashy promotions from companies who charge enormous amounts of hidden costs to help them with debt relief after introducing them to the vicious cycle in the first place.

Everyone knows the ill effects, still there are individuals who everyday apply for all sorts of loans, take mortgage to buy houses and use credit cards. The answers to these questions simply lie in ignorance and unrealised until debt relief is needed. Most people do not realise that some things that are part of their regular life actually put them in debt of banks and financial bodies.

Mortgages that got a debt relief won’t get hit with tax rate increase.

Extension of Mortgage Forgiveness Debt Relief Act will prevent mortgage modification or short sale as being treated as taxable income.

Till now Ohio had in writing that home owners that saved money from debt relief, a short sale, or loan modification on their mortgage would have to pay for it dearly on their taxes. Save one spot and pay in another right?

The Mortgage Forgiveness Tax Relief Act, cosponsored by Brown, would extend relief originally passed in the Mortgage Forgiveness Debt Relief Act of 2007. The legislation allows homeowners to exclude from annual, reportable income the discharge of mortgage debt owed on their homes. Individuals who receive assistance through the Home Affordable Modification Program (HAMP), Ohio’s Save the Dream Program, or other private agreements with financial institutions to save their home from foreclosure may now face additional tax consequences if the law is not extended.

you can read more here, but there isn't a point. http://www.norwalkreflector.com/article/4337346

Don’t celebrate yet, even though U.S. jobs recovery is on the rise...

Labor Department released its March employment report Friday, which showed businesses added 192,000 jobs and the unemployment rate was unchanged at 6.7%.

What does this mean? What it doesn't mean is things are looking great (just yet). You need to understand that unemployment remains but the working-age population has grown by 15million since 2008. So 6.7% now is worse then 7% back in 2008.

The unemployment rate stayed at 6.7% despite a surge in job growth because there were about 500,000 more unemployed people looking for jobs. Better job prospects drew discouraged workers back into the hunt.

College Students lobby for Debt Relief in Pennsylvania

debt relief is a huge problem. Everything from credit card debt to medical debt. And something most people don't even think about. Student debt. Even students need debt relief - or, according to some, only the middle class does.

While we can't take this debt relief article too seriously i do have to point out something.

College students from across Pennsylvania are heading to Harrisburg today, to lobby lawmakers on debt relief for middle-income college students.

The bus pulled out before the sun came up, carrying about 40 Widener students heading to Harrisburg where they’ll join up with undergrads from several other colleges and universities across Pennsylvania and lobby lawmakers on supporting two bills aimed at easing college debt on middle income students

Did i read that correctly? for "middle-income college students" ? really? read more here: http://philadelphia.cbslocal.com/2014/04/01/widener-students-in-harrisburg-to-lobby-for-college-debt-relief/

Debt Relief Companies Violate the Fair Debt Collections act?

Huffington Post has a great article on Debt Relief Companies and the Fair Debt Collections Act.

from the article:

This issue about out of SOL debt and debt relief companies is important for consumers to be aware of and informed about so they do not rush to settle or repay debt that is out of the Statute of Limitations (SOL) or time barred.

And the statute of limitations isn't so clear cut that anyone on the street can provide correct advice. It would be best to get the opinion of an attorney who is licensed in the state the consumer lives in to make sure which state statute applies in a specific and particular situation.

Consumers need appropriate disclosures and awareness before enrolling debt in a debt relief program so they can make an informed decision about how they really want to tackle the out of SOL debt. And this should be equally important for the debt relief company to be aware of as well. Out of SOL debt should be the lowest priority on repayment and set aside till all other debts are tackled first.

The biggest problem for credit counseling and debt settlement companies seems to be in blindly assisting the consumer to repay debt which would otherwise not be legally repayable. Or worse yet if the debt relief company represented to the consumer they debt was still legally repayable when it was not. That's where it seems a debt relief company could brush up against the same FDCPA problem the debt collector did.