I am in the idea of enrolling in a debt settlement program. What are the responsibilities once I enrolled?
Ewan,
DEBT SETTLEMENT IS NEVER YOUR BEST OPTION for eliminating credit card or other unsecured debt. Even if you happen to find a legitimate debt settlement company (good luck there), there are some serious consequences and drawbacks, including…
- Short and long term damage to your credit
- NO GUARANTEE of results
- Very high and confusing fees
- Front-loaded fee schedules that delay progress in settling your debts, and
- Tax Implications (you will most likely receive a 1099 from your creditors for the amount of the balance reduction, which means you’ll have additional income taxes due)
If you need assistance getting out of debt, a superior alternative to traditional debt settlement is Debt Resolution. Debt Resolution offers all of the benefits of debt settlement, but also either eliminates or significantly reduces the negative aspects mentioned above. Unlike debt settlement (which relies solely on the level of your delinquency to negotiate settlements), Debt Resolution leverages good faith debt laws to both challenge the amount of the debt owed, and provide legal protections for the borrower. Features include:
- Eliminate 55% of your unsecured debt (guaranteed in writing). Try asking a debt settlement company for a guarantee.
- Cut your monthly payments in half (or less)
- No interest charges
- No negative tax consequences (you won’t get a 1099 from the creditor)
As an example, if you owes $20,000 in credit card debt, 45% of that is $9,000. If you can afford $750 per month, you can be out of debt in just 12 months ($9,000 / $750 per month). If you can afford $400 per month, you can be out of debt in 23 months (9,000 / $400 per month), etc… The only other cost associated with the program is a one-time enrollment fee of $500 to administer the paperwork, get set up in the system, and establish the trust account from which the creditors will be paid.
That’s it. There are no other costs or fees. Just a one-time $500 enrollment fee and 45% of the current balance, which can be spread over as many as 45 months, depending on what you can afford.
As for those well-intentioned but uninformed contributors on the forum who suggest that you can do a debt settlement yourself… Well, they’re right, you can do a debt settlement yourself. But guess what? You’re most likely not going to settle your debt for less than 45% of the balance, which is the contractually guaranteed amount if you enroll in Debt Resolution. And guess what else? Unless you are familiar with the good faith debt laws and the laws of your state that govern credit card agreements – and you know how to leverage those laws to have the principal reduction considered a correction of the amount owed rather than a forgiveness of debt, you’re going to receive a 1099 for the amount forgiven, and you’ll have to pay taxes on it.
But remember… DEBT RESOLUTION IS NOT THE SAME AS DEBT SETTLEMENT, and you CANNOT get these benefits from a debt settlement company.. Debt Resolution is a unique, proprietary process developed and perfected over many years by a former Deputy Attorney General of California with over 40 years of legal experience, including more than 15 years specializing in resolving debt
For more information on Debt Resolution, you can visit:
http://www.BetterThanDebtSettlement.com
My advice is to stay away from thes type programs. If you need more information, just refer to a BA you received for a similar question. It’s right there in your personal Q&As.
References :
There are a few important responsibilities such as paying all fees, taxes and the original amount, of the debt settled. Unlike customer counseling companies, debt settlement companies do not make payments to creditors on your behalf. So your payments need to be paid on time and directly from you.
References :
http://debtsolutionsgrp.com/
Your responsibilities are the same as before you enroll with a debt settlement company. They do not really do anything that you cannot do yourself. Typically they just hold your money, while deducting their fee, then when your credit is totally trashed, try to settle for less than you owe.
But creditors do not have to accept anything they do, and can still sue you for a court judgment, which would give the creditor more teeth to collect for a longer time (garnishments, liens, etc.).
They make it sound so easy and pleasant to eliminate your debt, but it trashes your credit, and you would then have trouble getting any any credit for some time in the future.
References :
Don’t enroll. The advice they give you is available…right here on this forum for free every day of the week. There are no secrets, short cuts or tricks. Just ask us and we can guide you. You want to get your debt together, 1. Stop spending, 2. Start saving 3. Call all credit card companies ask them to reduce your APR. 4. Rank cards from highest to lowest APR, pay min on all, but put everything you can toward the one with highest APR until paid off. 5. Repeat 4 until all CC’s are gone. Get a second job, buy generic, use coupons, don’t travel or eat out. Check back in two years to tell everyone how well you have done.
References :
Ewan,
DEBT SETTLEMENT IS NEVER YOUR BEST OPTION for eliminating credit card or other unsecured debt. Even if you happen to find a legitimate debt settlement company (good luck there), there are some serious consequences and drawbacks, including…
- Short and long term damage to your credit
- NO GUARANTEE of results
- Very high and confusing fees
- Front-loaded fee schedules that delay progress in settling your debts, and
- Tax Implications (you will most likely receive a 1099 from your creditors for the amount of the balance reduction, which means you’ll have additional income taxes due)
If you need assistance getting out of debt, a superior alternative to traditional debt settlement is Debt Resolution. Debt Resolution offers all of the benefits of debt settlement, but also either eliminates or significantly reduces the negative aspects mentioned above. Unlike debt settlement (which relies solely on the level of your delinquency to negotiate settlements), Debt Resolution leverages good faith debt laws to both challenge the amount of the debt owed, and provide legal protections for the borrower. Features include:
- Eliminate 55% of your unsecured debt (guaranteed in writing). Try asking a debt settlement company for a guarantee.
- Cut your monthly payments in half (or less)
- No interest charges
- No negative tax consequences (you won’t get a 1099 from the creditor)
As an example, if you owes $20,000 in credit card debt, 45% of that is $9,000. If you can afford $750 per month, you can be out of debt in just 12 months ($9,000 / $750 per month). If you can afford $400 per month, you can be out of debt in 23 months (9,000 / $400 per month), etc… The only other cost associated with the program is a one-time enrollment fee of $500 to administer the paperwork, get set up in the system, and establish the trust account from which the creditors will be paid.
That’s it. There are no other costs or fees. Just a one-time $500 enrollment fee and 45% of the current balance, which can be spread over as many as 45 months, depending on what you can afford.
As for those well-intentioned but uninformed contributors on the forum who suggest that you can do a debt settlement yourself… Well, they’re right, you can do a debt settlement yourself. But guess what? You’re most likely not going to settle your debt for less than 45% of the balance, which is the contractually guaranteed amount if you enroll in Debt Resolution. And guess what else? Unless you are familiar with the good faith debt laws and the laws of your state that govern credit card agreements – and you know how to leverage those laws to have the principal reduction considered a correction of the amount owed rather than a forgiveness of debt, you’re going to receive a 1099 for the amount forgiven, and you’ll have to pay taxes on it.
But remember… DEBT RESOLUTION IS NOT THE SAME AS DEBT SETTLEMENT, and you CANNOT get these benefits from a debt settlement company.. Debt Resolution is a unique, proprietary process developed and perfected over many years by a former Deputy Attorney General of California with over 40 years of legal experience, including more than 15 years specializing in resolving debt
For more information on Debt Resolution, you can visit:
http://www.BetterThanDebtSettlement.com
References :
http://www.BetterThanDebtSettlement.com