These latest additions address needs common among consumers who are buried in debt, including how to deal with debt collector calls and communication, and the risks involved in doing business with a debt settlement company.
The Debt Free Bible currently covers 19 methods of paying off debt, and aims to help consumers develop their own comprehensive debt free plan that is tailored to their own needs. It also includes information on how to save money on everything from coffee to home mortgages, to car purchases and more. To purchase the Debt Free Bible, consumers can visit the website at www.DebtFreeBible.com.
About Zodiac Publishing Corporation
Zodiac Publishing Corporation has published credit courses and materials for over 15 years. Owner Jay Peters and his staff have spent much of that time researching, developing, and testing methodologies to help consumers get out of debt faster and navigate the often confusing credit system. The company has taught thousands of people how to fix their credit and become debt free, and maintains an “A” rating with the Northern Nevada Better Business Bureau.

For more information on becoming debt free, or to learn about the Debt Free Bible and other products offered by Zodiac Publishing Corporation, visit the company’s website at http://www.CreditRepairPublishing.com.

Many of us have dealt with people who work in debt collection. Complaints range from back-to-back calls at odd hours to hardball tactics that make the debtor feel like they’re being personally attacked. Few things in life are as burdensome as spiraling debt, but there’s nothing quite like getting harassed by debt collectors multiple times a day to make it so much worse. No one wants to go through their day like this, which is why legitimate debt relief help is something that many folks are desperately seeking.

First and foremost, it’s helpful to understand how the debt collection process works. Why are you being contacted by the debt collector in the first place? Keep in mind that if the credit card company has taken a loss on your account, it may show up negatively on your credit report. If you are late on making a credit card payment, for example, a collection agency that either works for your creditor in-house or is a third party that has purchased your debt for less than you owe has been handed the reins in trying to collect payment. It might also be the case that you’re being contacted about a debt that isn’t yours, in which case it’s quite likely that you’ve been a victim of identity theft. It may be difficult convincing the collector of this at first.

You have rights under federal and state laws. For instance, they may be liable for failure to cooperate if they aren’t taking certain responsibilities in investigating your situation, particularly if the debt isn’t yours to begin with. If a debt collector’s conduct isn’t in compliance with the Fair Debt Collection Practices Act, they may be liable for their conduct.

Finally, put any and all debt collection complaints in writing and send them to both the creditor and the collection agency via Certified Mail. This includes any promises or threats, any rude or harassing comments, or any explanations of the collector’s behalf that may show improprieties in the handling of your debt, disputes, or payments.

Keep notes of conversations and copies of all correspondences. From the first time you are contacted by a debt collector, start a file. Keep track of dates and times of phone conversations, recorded messages, and when you send and receive correspondence via mail. Ask specific questions when you talk with them – get the name of the collector, the name of the agency, the name of the creditor, and phone/fax numbers for the agency. Keep in mind that if you’ve notified the collector not to contact you at all, they are entitled to contact you one more time to let you know how they intend to proceed. Collectors are supposed to follow up with you via mail within five days of a phone conversation. In addition to this, you can request that all future correspondences be in writing. You can request that they don’t call you during certain hours, at work, or at all. Follow up with any privacy requests in writing.

Once people get frightened and intimidated, they become powerless in the face of these debt collectors.
Debt collection agencies are actually third-party private companies that are hired by larger companies to collect debt.

Normally, the debt collection agencies are commissioned on a fixed fee or a percentage of the collected debt.

Sometimes, the debt collection agency buys the debt from these larger companies, so that the persons debt will be transferred to them.

This just makes them more aggressive in collecting debts from people as they want a quick return of investment. To collect debts, some debt collection agencies even resort to unfair practices to pressure people into paying.

However, under the Fair Debt Collection Practices (FDCPA), there are guidelines in which third-party debt collectors have to conduct themselves.

This is to eliminate abusive practices, promote fair debt collection and give people an avenue for disputing and validating debt information to ensure accuracy.

Under FDCPA, all debt collectors are required to:

Identify themselves and provide notification to the consumer in every communication. It should also be clear that the communication is from a debt collector and that any information obtained will be used to collect debt.

The debt collector should also specify the name and address of the original creditor.

The debt collector should notify the customer of their rights to dispute the debt, partial or full.

In case the consumer disputes the debt, the debt collector must provide the consumer the requested verification information or cease collection efforts altogether.

If the debt collector plans to file a lawsuit, he/she should file it on the state or county where the consumer lives or signed the contract.

The FDCPA also classifies certain actions as abusive and deceptive, and are prohibited from being practiced.
Some of those actions are:

Contacting the consumer outside 8:00am to 9:00am local time.

Failing to cease communication upon request of the consumer.

Ringing the phone or engaging a person in conversation repeatedly with the purpose of annoying, abusing or harassing that said person.

Communicating with the consumer at her place of employment even after being prohibited by the employer.

Using misrepresentation to collect debt. An example would be pretending to be a lawyer or a police officer.

Publishing the name of a consumer on a bad debt list.

Collecting unjustified amounts that are not permitted in any of the applicable contracts.

Using abusive and profane languages.

Revealing debt information to parties outside the consumer.

Reporting false information on the consumer credit report or threatening to do so in the process of collection.

If you are being harassed, by debt collection agencies, you should be aware that you can take actions against that collection agency.

Consumers may file a private lawsuit on the third-party debt collection agency and collect damages.
Contact a business attorney who had handled such cases to help you with your options.

Your total net worth includes your monthly net pay, overtime and bonuses, and any other annual income. Your total debt includes your mortgage, other loan payments or revolving accounts, car payment, credit cards, and any child support you pay. If you divide you total monthly debt payments by your monthly income, you have your debt to income ratio. In the eyes of a creditor, if your debt to income ratio is lower than 36% you are in good financial shape. However, your personal situation, your unique expenses, and your number of dependants will determine how much debt you can reasonably pay each month. If your debt to income ratio is less than 30 percent, you are in excellent financial condition; 30-36% – you will have no trouble with lenders, but should work to bring this number down to 30 or less; 36-40% – you will most likely be able to get a loan, but you may have trouble meeting your monthly obligations; 40 percent or higher – you will need to evaluate your finances and work towards eliminating debts.

Your credit card debt plays a major role in determining your debt to income ratio. The amount you owe on your credit cards has a direct bearing on your credit score. If your debt exceeds your income, your credit score will drop. Many factors go into determining your credit score, all of which are indicators of your overall financial health. Lowering credit card debt is one of the best ways to improve your credit score and your debt to income ratio. The average American has over $8000 in credit card debt. If you are paying the minimum payments each month, this still takes a big bite out of your income. Even if your credit history is excellent, with very few or no late payments, if you have too much debt, you could be denied a loan.

Take control of your credit score by lowering your credit card debt or eliminating it all together. Your credit score will rise and you will lower your debt to income ratio. If you plan to apply for a loan, purchase a new home, or want to buy a new car, you must make sure your level of debt does not exceed more than 36% of your income. In addition, if you have several credit cards with very low or zero balances, you would benefit by closing those accounts and transferring any outstanding balances to a credit card with a low interest rate. Some lenders will calculate your debt to income ratio based on the amount of credit that is available to you. If you have several dependants, you may want to lower your debt to income ratio to around 20% to ensure that you can pay your monthly debt comfortably.

Chat about debt and personal finance in the Destroydebt.com Debt Forums.

One of the most appealing advantages to consolidating a debt consolidation loan is that it makes paying back your debt a simpler process. Instead of a number of debts to pay, all with different due dates each month, consolidating debt allows one payment per month. The consolidating company is responsible for making sure the payments get to each creditor. Be it a student loan consolidation or credit card debt consolidation, the situation allows the individual to focus time and energy on finding other ways to improve the financial situation.

Another way in which a debt consolidation loan is helpful is that it lowers the rate of interest. Credit cards tend to have high interest rates, so it is always good news when an individual finds a loan at a lower rate. This lower rate also lasts for the duration of the payment period, though with a consolidated payment plan, individuals pay off the loan for an extended period. Be sure to keep an eye on current interest rates. Interest rates will be determined in large part by what is going on nationally.

It is entirely possible to use this plan to help seek a more stable financial standing. Finding a reputable consolidation company, however, is paramount. Take as much time available to research the many options. The best bet is to go with companies that are familiar and well known.

A debt consolidation loan is used most often when someone has accumulated too much credit card debt. Credit card debt consolidation is useful in relieving some of the stress caused by collection agencies, but it cannot – and should not – be viewed as a life jacket that will save all. Individuals must do what is necessary to develop good, responsible spending habits. The importance of budgeting can not be overstated. Always avoid taking out more loans for debt relief – it simply makes matters worse.

A debt consolidation loan has many advantages. It can reduce high interest rates and simplify monthly payments by reducing them to one. However, individuals must do their part by learning to spend wisely and responsibly. A card debt consolidation loan can only take a person so far, and a debt-free future is up to the individual.

If you can afford to pay more than the minimum payment, then you may want to check out the best debt reduction tips. However, if you are making minimum payments, or are struggling to make your monthly obligations, then this article will give you the facts so that you may be able to make a sound decision to eliminate your debt.

Please note that a couple of these options are obvious that they are not viable solutions. I only mention them because many debtors do not know the facts pertaining to these options. Here are the best debt relief options available to you:

Save Big by -Doing it Yourself’ Debt Settlement

This may be the best debt relief option at your disposal. You may save a few thousand dollars by doing it yourself. Then again, you may not. It depends primarily on how much knowledge and expertise you have about debt negotiation, and also your persuasive skills. Here’s what you need to know:

1.The debt collectors will do almost anything in their power to get as much money as possible from you as they can. After all, we’re usually talking about thousands of dollars.

Many of them don’t even care about your legal rights when it comes to collecting a debt. They will lie, cheat and play mind games. You must know how to handle them. You must know your legal rights. You must be intimately familiar with the Fair Debt Collection Practices Act (FDCPA) & the Fair Credit Reporting Act (FCRA).

2. Every debt collector has a different collection policy. Hence, you must be familiar with the amounts and terms that the debt collector will accept. You are short-changing yourself if you don’t know how low each of your creditors will settle for. Only experience can help you with this one.

3.Be prepared to do tons of paperwork. Remember, the program takes about 3 years (on average) to complete.
4.A debt settlement usually has a network of attorneys that have experience dealing with your creditors. You need these attorneys because they will be much more likely than you to get the debt collector to drop the lawsuit. There is more to know, but the above covers the main points.

What Will Happen If I Simply Stopped Paying My Debts?

You would probably be spending more time than you care in court. If you are having financial problems, it’s very important that you communicate with them. I know it’s uncomfortable to talk to them. But you only have to do it once.

There are laws that protect you from having to speak to them. If you don’t initially communicate with them, they will assume that you are refusing to repay your obligation. So the best strategy for them is to expedite the situation and file a lawsuit to scare you.

If you continue to stop paying your unsecured debt, your credit will be shot for the next 7 years. What are the effects?

You will be harassed to a great extent by the debt collectors.
If you own property, the creditor may get a judgment and then place a lien.
You may not qualify for future loans. Many lenders require that all delinquent debt be paid before they fund the loan.
If you do qualify, the interest rates, down payment and the terms will be unfavorable.
If you plan to rent a house, the deposit will most likely be higher. In addition, you may be forced to live in a less prominent neighborhood than you wished.
You may be denied employment or a promotion. More employers than ever are looking at credit reports and judging your character in part based on what they see.
Of all the debt relief options, ignoring your debts is the worse choice.

Debt Management-Sleeping With the Enemy

Until this day, I cannot understand why anyone would want to enroll in this program. It’s not that debt management doesn’t have benefits. It’s primarily due to the fact that the overall benefits aren’t all that great when you compare it to debt settlement. Let’s take a look at the pros and cons so that you can see what I’m talking about.

The Benefits:

Negotiates with your creditors to reduce your interest rates. This is accomplished most of the time, but not always.
Requests that unpaid interest, fees and other penalties be waived. Sometimes this is successful.
Gives you tips and literature on financial planning. Excuse me, but wouldn’t it be much better to prioritize the situation and get tips and advice on how to get out of debt?

The Detriments:

I believe that the main reason that debtors join a debt management program is because of the -non-profit- status that they boast. But non-profit is only a legal and an accounting term. It only means that their books must not show a profit. True, their fees are lower than debt settlement. However, what they don’t advertize is the fact that they receive -kick-backs- from the creditors.

The higher they keep your interest rates, the larger the kick-back. This is what the credit card companies dub -fair share-. The first debt management company was established by the credit card companies. They know that there is, and always will be, a percentage of debtors that inevitably end up filing bankruptcy. So, in order to prolong the inevitable, they lowered the rates in order to keep these debtors out of the courts for as long as possible-they want that monthly payment to keep coming!

Debt management has about a 75% drop-out rate. Just this fact alone would make me run as fast as I could! Why so high? Because if you miss just one payment, you are booted from the plan. I don’t think this is fair considering the majority of the enrollees are already struggling.

Your credit will be negatively affected. When you enroll in a debt management program, every one of your accounts on your credit report reads like this: DEBTOR IS CURRENTLY ENROLLED IN C.C.C.S. PROGRAM. (C.C.C.S. is an acronym for Consumer Credit Counseling Service).

Do you think this is a good or a bad thing? Some people argue that it’s a good thing. It shows that the debtor is making an effort to change his situation. They have a point. However, it doesn’t matter what the layman thinks- it only matters what the underwriter thinks. She will be the one to determine the probability of the debtor repaying a future loan.

Just because the debtor is enrolled in a management program, the underwriter knows the statistics of the fall-out rate. They think like this: -what’s the difference between personal counseling and financial counseling? They both indicate that there’s a problem. Consequently, the loan is usually denied.

Last, the duration of debt management is up to 8 yrs, whereas debt settlement is usually completed in about 2-3 years. Why the difference? Because debt management only lowers the interest rate.

Debt settlement, on the other hand, attacks the principal. It’s the drastic reduction of the loan balance that gets you out of debt fast. Debt management doesn’t accomplish this. Why should they? The longer they keep you in debt, the longer they keep getting kick-backs from your creditors. Debt management is a slow death- it may not be the best debt relief option.

Summary: Beneficial insight into the best debt relief options for debtors with excessive amounts of unsecured debt. Some of these facts may surprise you.

Make up your mind to get rid of the credit cards permanently. If you are hesitant to do this, gather your credit card statements from the last year and add up the amount of interest you paid. Once you do so, you will see how much money you could be saving each year. Although this won’t be easy at first, you can do it. Lifestyle changes are required, but it will be worth it in the end.

Build up an emergency fund. This fund should be equal to six to twelve months of your basis expenses. If you lose your job, you will know that you have the money to survive until you find another one. Remember that this is for basic expenses. If you have a YMCA membership or 500 cable channels, those are extras that you can easily eliminate. Once you cut your expenses back to the bare necessities, you will find this fund does not have to be as big as you first imagined.

Make a budget and stick to it. As Dave Ramsey, a get out of debt guru, often says a budget is required so you can be in charge of your money. When you first make up a budget, expect to have to fine tune it. It can take three to six months before you have your budget down. Don’t get discouraged. With time, you will get this process right.

Make resign debt free priority one when it comes to your goals in life. Many experts will tell you to list your debts by interest rate with the highest interest rate at the top. This does not work for most. You need to list all debts from smallest to largest and pay them in that order. Each time you pay one off you will have the motivation to continue working toward becoming debt free.

Self-control is essential when it comes to debt management. Don’t buy something you cannot afford by putting it on a credit card. This will set you back financially each time you do. Save up cash to buy these items. If you see something you really want to have, wait a few days before actually making the purchase. By doing so, you can ensure that you want to spend the money. Impulse buys are frequently mistakes. By following this rule, you can make great headway in your debt.

Don’t try to keep up with the Joneses. If your neighbor runs out and buys a new car, don’t follow suit. Stop and think for a minute how much his car payment is each month. Do you really need a new car and are you willing to make those payments for the next five, six or seven years? Take the money and put it toward your debt. By doing so, you can be debt free and, in most cases, it won’t take five or more years to do so.

Christopher Benoit
www.WealthProtectionOnline.com

One of the most important things in credit repair is to act quickly. Although your credit rating will become damaged as soon as you begin to miss payments to your creditors, it will get continually worse if you continue to do so. Many people get confused into thinking that credit is either “good” or “bad,” and that once they get into trouble with a creditor it’s fruitless to try and rectify it. The opposite is true, however, so even if you are in bad standing with creditors, credit repair requires that you pay off your debts as quickly as possible.

The problem, of course, is that you probably don’t have the money to pay off the debts, after all, your economic situation probably was the reason for the missed payments in the first place. It is for this reason that debt consolation can be an excellent tool in credit repair. It works by consolidating all of your debts into one loan. In other words, if you have multiple outstanding debts, you take out a loan from one company, use that loan to pay the debts, and then make payments only on that loan.

What debt consolation achieves is some flexibility in situations where your debt is becoming unmanageable. Although you will ultimately owe the same amount of money, you could get a debt consolidation loan over a long term, so that your monthly payments will drop. Most importantly, debt consolidation immediately puts you back on solid footing with your creditors, and ultimately bodes well for credit repair. Things won’t be perfect, but your creditors will report that you have cleared up your debts, and so the process of credit repair can begin quickly.

Debt consolidation is an important tool in credit repair because it allows your status with creditors to change very quickly: you go from someone on bad terms with multiple creditors to someone on good terms with a single one. It allows you to stop the damage before things get out of hand, and gives you the breathing room you need to engage in credit repair. In this way intelligent debt consolation is a valuable tool in credit repair.

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Lots of the available systems can work, but if they don’t, it might not be your fault, but simply that you have too much debt, and the compounding interest is just burying you.

So What Are The Alternatives?

Turning to a good credit counseling agency would be good of course, but if your present state mirrors the one described above, then it’s unlikely that they’d be able to suggest anything other than debt settlement or debt consolidation, with the exception of bankruptcy.

Bankruptcy has its place of course, and it’s always an option, but even that’s not as easy as it once was, and in any event, either debt settlement or debt consolidation should always be tried before filing for bankruptcy, which will ruin your credit rating for at least seven years.

Debt Settlement Explained

Debt settlement basically means that the creditor and debtor agree to new loan terms that are more favorable to the borrower and if the debtor sticks to the terms of the agreement then it’s something that’s good for both parties because the debtor pays less, and the creditor avoids forcing him into bankruptcy.

The process would not be overly complicated if only one creditor were involved, but that’s seldom the case. The major complication is that every creditor wants the best deal that he can get and is not the slightest bit interested in other creditors or the deals that they’re making with the debtor.

What this means in essence is that deals often have to be renegotiated several times before they’re finally signed, and given the fact that credit companies make it intentionally difficult to talk to anybody that can make a decision, it’s incredibly frustrating and stressful.

It is of course possible to handle the whole process alone, but it’s highly nerve-racking if you’re personally involved, and if you’re not sure that you can handle additional stress then a debt settlement company that’s BBB (Better Business Bureau) affiliated might be the best way to go.

Debt Consolidation Explained

Debt consolidation means combining all your individual debts into just one debt, that will cost you less in interest and fees than all the separate debts combined.

Be aware that debt consolidation is normally only available to people who’s credit is still in reasonable shape, and if yours isn’t then debt settlement and not debt consolidation would probably be the better the way to go.

There are plenty of companies that offer consolidation loans to people with even terrible credit, but they’re usually very expensive, and if you’re still tempted by this route, then be sure to check out all the fine print in the contract.

If however, you’re credit score is still better than poor then a debt consolidation company might be the answer because it will;

a) Carry out all the negotiations, and get the best possible rates.

b) Stop the harassing phone calls and knocks on the door.

c) Arrange for one set amount that has to be paid every month.

d) Remove a tremendous amount of stress from a highly stressful situation.

But please be sure there are no upfront fees and do check the small print to see what happens if you can’t make the regular payments.

An additional upside to debt consolidation is that your credit score will be less affected than if you were to opt for debt settlement, provided you stay the course and don’t default.

To help you avoid debt you must total a budget accounting for each cent you earn and every one that you just pay. Look more than simply your traditional household expenses like house payments, automotive payments, utilities and alternative such expenditures look conjointly at the cash you pay on quick food, sodas, and unnecessary things. All of your cash ought to be accounted for as a primary step to debt solutions. Once you have got determined and accounted for all of your income vs. expenditures, following step is to seem at any sensible method that your budget will work for you in your debt solutions. One in style thanks to begin to eliminating your debt is to require the one debt with the smallest {amount} amount owed and pay it off initial. Once you’ve got done this, you roll the quantity you were paying on it over to feature to consecutive least owed. Continue this method united of the debt solutions which will eventually bring you to a life that’s debt free.
This is not forever a straightforward method; however it’ll work in precisely regarding any debt state of affairs you will face. Do you have to end up sliding back and not having the ability to stay to those debt solutions, you must contemplate obtaining the recommendation of knowledgeable in your space. There is several debt solutions that you simply will realize on-line and lots of of them are quite sound and were designed by individuals similar to you, who at just one occasion were in debt themselves. Setting your goals within the starting to become debt free and knowing precisely how you may approach your scenario could be a important step in the entire debt solutions method. While not a well laid out arrange, the method are going to be prolonged and your debt issues can continue for unnecessary years. To measure debt free may be a good way of life that you just deserve, and sorting out debt solutions is that the 1st step to achieving this goal. Ochoa has worked in sales and sales management for over twenty four years. He has perpetually been ready to offer his customers with data they’ll use. This has carried over to his net business where he continues to produce his customers with data they’ll use these days.

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