1. Pay your bills first: It’s important to put the money aside to pay your bills as soon as you get paid. That way you will be sure to have enough money to pay them. Don’t go out and buy things, not even groceries until you’ve put the money aside for your bills. Most of your day to day expenses are likely to have some flexibility in them, you can limit how much you spend on coffee a day or buy a less expensive cut of meat, but the power company wants all their money.

2. Make your payments on time: Every late payment can hurt you, and in more than one way. Many utility companies report your payments to the credit reporting agencies, so ahistory of late payments can hurt your credit score. It also costs you more if you pay late. Late fees may be small but when you’re working on reducing debt, every dollar counts. Three dollars a month in late payment charges on three bills works out to over a hundred dollars a year.

3. Write down what you spend: Managing and paying down debt is all about taking control of your money. You can’t control what you don’t know, so it’s important to keep a journal of how much you are spending and what you’re spending it on. Do it before you make your budget and you’ll be able to see what you really do spend money on, rather than guessing and coming up short because you forgot to account for something when you wrote up the budget.

4. Know your credit report: Your credit report is your scorecard in the fight against bad credit. If you don’t know where you stand it’s hard to move forward. Most countries let consumers see their reports for free at least once a year. Take advantage of this, you might find a debt on there that you already paid which wasn’t reported to the agency. Reports of unpaid debts can really hurt your credit, so it’s important to make sure those are accurate.

5. Pay creditors who report to agencies first: Some creditors report each payment you make to credit reporting agencies, while others only report information if they send your debt to an outside collection agency. If you have to postpone one of your bills past the due date, it’s always better for your credit score (all else being equal) if you pay the one that reports regularly as it will have the biggest impact on your credit score.

6. Pay your bills when you have the money: don’t wait until the due dates: A lot ofpeople think the due date on a bill is the day you are supposed to pay it, not the day by which the creditor wants to have received the money. Paying bills as soon as you get paid removes the temptation to take some of the money back to spend on something else. Once it’s gone, so is the temptation to take the money and spend it elsewhere.

7. Ensure your creditors notify credit agencies when bills are paid: If you do have unpaid bills, it’s important not only to pay them but also to make sure those payments are reported to the credit agencies, otherwise those payments won’t help repair your credit. Talk to the creditor about this, and if necessary don’t hesitate to follow up with the credit reporting agency yourself.

8. Always pay something: Even if you can’t pay all of your bills at one time, always make a payment of some kind on each bill. This not only shows your good faith to the creditor by proving that you are not ignoring the debt, but it also reduces the amount you’ll have to pay when the next bill comes due. If one month is hard to pay now, two months will be harder to pay in future. Making partial payments helps reduce the effect of late payments piling up on each other.

9. Make a budget: Budgeting is an important part of controlling your money. It helps you see the big picture and gives you a plan with defined steps to focus on. It moves the what of reducing your debt and improving your credit into a plan of attack. Budgeting is the how of debt reduction, it’s where you write down the plan you’re going to follow to get your finances under control. You have to start somewhere, and budgeting is a good place to start.

10. Save your pennies and other coins: It’s amazing how much money we carry around as loose change in our pockets, and it’s money we often don’t think of as money. Half the time it gets spent on a candy bar because we’re bored rather than anything one needs. Turn it into an asset by dumping your change into a jar every night once you get home. It’s amazing how fast it will add up, and that’s money that can be used for emergencies, or to pay down a debt that suddenly jumped to the top of the pile.

11. Communicate with lenders: This is one many debtors ignore. Your creditors only want your money, and most of them are more than happy to work with you so long as they get their money in the end. The catch is that you have to keep them in the loop. Telling them what’s going on and offering payment plans helps convince them that you’re not planning to default on the debt. Yes they want their money, but that doesn’t mean you have to put them in an adversarial role.

12. Know your rights: Both debtors and creditors have rights, but creditors are usually much more aware of their rights than debtors are. Knowing your rights gives you as a debtor a way to deflect harassing collection calls and a measure of control in the situation. It also lets you tell when an overzealous collection agent is making threats they can’t back up.

13. Set goals: Every task needs milestones, something to let you feel you’re progressing and prevent the enormity of the situation from becoming overwhelming. Repairing yourcredit and reducing debt is no different. Setting manageable goals like paying off one credit card within a year will help keep you focused and moving forward on debt reduction. If you’re looking to build credit, getting a credit card within a year is a good goal. It doesn’t matter what the goal is so much as making sure it’s attainable and working towards it.

14. Leave some money for extras: No matter how much debt you’re carrying, always make sure to put some money in the budget for extras and entertainment. Yes there are free alternatives to entertainment, but never having money for treats such as a five-shot Mocha, a night at the movies or a new book or CD is sure to frustrate you and get you off your budget. Put in some money, not a lot, but enough so that you can treat yourself on occasion and it will be a lot easier to stay on your budget.

15. Pay cash: Don’t buy things with the swipe of a card if you can avoid it. Pay cash before using debit or credit. The thing about debit and credit payments is that the expenditure is invisible so you don’t really notice how much you’re spending. If you pay cash you have a much better feel for how much money you are spending which lets you keep more control of your money.

16. It’s not a good deal if it’s more than you can afford: How many times have you gone into a store and seen a ten-pound bag of something at only twice the price of the two poundbag? It may be a great deal, but it’s not always a good buy. Remember, you’re still spending more money, and that has to come from somewhere. Also, if you’re not going to use it all before it goes bad you might find you’ve bought ten pounds and thrown away eight- and then you’re wasting money. Buy based on your needs, not just how good the deal looks.

17. Pay off high rate cards first: If you’ve got two credit cards that you need to pay off, take the one with the higher interest rate and pay it off first while making the minimum payment on the other card. Interest is lost money, so the faster you pay off the card with the higher interest the more debt you’re losing for the same amount of money spent. Even a 2% difference in credit card interest rates can make a huge difference.

18. Consolidate your loans: Loan consolidation is a great tool if you have access to it. If you can get all your debts combined into one monthly payment you’ll often find you’re paying everything off much sooner. Not only will a bank often give you a lower interest rate than credit cards, which means more of your money is going to reduce the debt rather than just service it, but making a single payment is usually cheaper than writing out half a dozen checks every month.

19. Cut up your credit cards: An important part of getting out of debt is making sure you don’t incur more debt, and this is where cutting up your credit cards comes in. You can’t cancel the account before you pay it off, but cutting up the card makes you that much lessable to use it, especially if the CVN on the back isn’t on your statement. Then you won’t even be able to use it online. Part of taking control is reducing temptation.

20. Ask to have your credit limit lowered: Credit cards are useful to have, but it’s important to stay out of trouble when using them. One way to keep control of your credit card spending is to keep a low limit like $500 on the card to make it that much harder to get into trouble. If you get a card with a high limit and are concerned you’ll run it up and not be able to pay, call the company and see if you can get the limit lowered to something you can keep ahead of.

stephan clingman
http://www.articlesbase.com/debt-consolidation-articles/20-ways-to-decrease-your-debt-716286.html

The only way to cut down all your tensions against non-repayable debts and financial stress is by filing bankruptcy. However, filing bankruptcy badly affects the credit points of the person. Therefore, one has to choose the debt consolidation method accordingly. If there is no other way to repay your debts, then the best option is bankruptcy. It is very important for a person to attain basic bankruptcy information before the filing.

Bankruptcy is a way by which a debtor pays all of his debts in the best way he can and has a sense of relief. He can go for a new era in his life and make himself financially very strong. Although, before going for bankruptcy you should make sure that u have no other way left to solve your financial problems. Any person or company must show in front of the Bankruptcy court that he has no other assets to repay the existing loans. Also the expected future income is not sufficient for the repayment of debts; thus bankruptcy is the only left option.

bankruptcy law has many sections covering the various sectors of the society. If you are a self employed individual then you have to file chapter 13 of the bankruptcy. In case of partnership, entities, individuals or cooperation then you need to file chapter 7 of the Bankruptcy Law. Bankruptcy can help you get out of the debts, but it can cause your credit rating diminish. In future you may be seen as a risk factor and may be deprived of certain loans too. But this condition will prevail only a few days if you improve your financial status considerably. So, after bankruptcy you must plan your future well and work on your financial improvement.

Jennifer Morva
http://www.articlesbase.com/loans-articles/bankruptcy-information-get-a-renewed-life-and-make-a-fresh-start-674878.html

I am going to be starting a debt management plan with CCCS this month with a payment due on March 20th…should I pay my credit cards for the month? I am not sure I can afford the credit card payments and a debt management payment in the same month without skipping payments on utilities but I don’t want to ruin my credit either. Any help is appreciated!

Call CCCS and ask your counselor how this should be handled.

Sometimes your monthly installments exceed your repayment ability. This results due to all the numerous debts that you have piled up. debt management is important to avoid such problems. Successful debt management involves making a plan, implementing it and strictly following it to become debt free. Some debt management may help you resolve your problem to some extent.

There are different ways of debt management. The most common is debt consolidation which helps you to consolidate all high interest debts into single loan that too with lower interest rate. This helps you to manage your debts easily and reduces your burden.

To manage your debts it’s important to make monthly payments on time without faltering payments. To ensure timely payments you can opt for lower monthly payments. This can help you to do away with the problem of non payments or any such defaults that show up negative.

To avoid any further addition to the pile, make minimum use of credit card. Reduce the number of credit cards currently in use and instead make maximum use of your debit cards. Only keep one credit card that too to meet any urgent financial need and not for common use. Also avoid taking any other loan unless all your previous debts are settled in full.

Try to save maximum every month and cut down your undue expenses. This debt management tip will help you save money that can be used to manage your debts.

Anyone can search online for debt management advice or seek professional help. The professional in this field may provide you with expert advices and suggestions that can effectively solve your problem. Do research about the company before applying for debt management.

Eliminating all your debts is difficult but definitely is not impossible. It is important to scrap off all your debts for a debt free life. Debt management is one such tool that can help you to do so easily. More and more people are now learning debt management to avoid any financial crunch which creates problems.

Roger John
http://www.articlesbase.com/debt-consolidation-articles/debt-management-avoid-debt-accumulation-731495.html

Who is a prime candidate for debt consolidation loans? Is it the business corporate professional who, behind the scenes, is barely living paycheque to paycheque? Is it the administrative assistant, struggling to make ends meet as a single mum? Or is it the large family, with another baby on the way and little time to manage their funds?

The truth is, all the aforementioned persons are potential beneficiaries of a debt consolidation system. Without a doubt, the “face” of debt consolidation users knows no one look, a direct result of the versatility that debt consolidation loans offer.

First and foremost, debt consolidation loans give families or individuals the opportunity to have some “breathing room” when it comes to paying their bills. By merging all their monthly debts together and allowing a financial institution to negotiate on their behalf, they actually wind up paying a monthly bill that is much more manageable than was the total of their previous debts.

Secondly, the process of debt consolidation can be a huge relief, especially for someone who cannot make ends meet. Getting calls from creditors day and night (even on the job) can become mentally exhausting; by eliminating those demanding (and sometimes harassing) communiqués, an individual can finally move forward with a better outlook… and a reduced monthly outlay of cash.

Finally, debt consolidation loans are terrific options for the family that wants to save for a new automobile or residence. By combining many monthly payments into one, they can set aside a small amount every 30 days or so to put towards a future down payment.

If you’ve looked in the mirror and wondered, “Is debt consolidation for me?”, why not visit www.dbsfinance.co.uk today? You’ll be able to find all the information you need to make an educated decision on when or whether to consider debt consolidation loans.

Bruce Stander
http://www.articlesbase.com/loans-articles/the-many-faces-of-debt-consolidation-loans-96009.html

The debt consolidation on credit card is considered to be the first step to get rid of the debt on your credit card. This loan is one of the ways to consolidate you credit card debts. Apart from this offer, you can also apply for balance transfer to some other credit card. The sad part is that the balance transfer is more known to people than the debt consolidation loan. Many people forget about the whole concept of consolidation loan of the debts on the credit card as a method to clear all debts on the credit card. But, people have started realizing that the debt consolidation method is also an effective way to get rid of all your credit card debts.

The Credit Card debt consolidation loan is a loan that is offered at very low interest when applied in a bank or in any financial establishments, to clear off the high interest debt on your credit card. This loan is also based on the same ideals as that of balance transfers, the option to move from one high interest debt to a low interest debt. The loan on debt consolidation for the credit card should be paid back in the form of installments every month, according to the conditions and dealing between your dispenser and you.

In more general terms, the loan on credit card debts is more of an unsecured loan. As in, it does not force you to pledge any of your properties for the loan to be sanctioned to you. But, if your credit history is bad, and if you want the loan sanctioned, then the loan on credit card debt settlement might be considered a secured one. In that case, the consolidation loan requires you to pledge any of your properties before you get the loan from them. So, it is up to you to maintain a good credit rating in order to get your debt settlement loan for credit cards at the earliest.

The balance transfers and the consolidation loans on credit card debt have similar principles as the base. The consolidation loan on credit card debts are considered a better option as they help you close down most of your credit card accounts which was responsible to put you in such a embarrassing situation. There are advantages with balance transfer too. But, they are not available with the consolidation loans for credit cards.

Abhishek Agarwal
http://www.articlesbase.com/credit-articles/credit-card-debt-consolidation-loan-feel-free-to-breathe-while-paying-up-703473.html

In a sense, the entrance to SFGT is a window into the person who leads the company, Dudley Fitzpatrick, CEO. Open the big front door of the old town house on Walnut Street and the first thing you notice is three old stone steps. Couldn’t they afford new steps?Then you see the second door. It’s all glass and through it you see the modern reception room,the classic furniture, the attractive receptionist and the small oriental rug in the center of the beautiful wood floor. “I get it,” you think to yourself.

When you meet Dudley and chat with him, you really get it. He’s a traditionalist, like the steps and the beams on the ceiling. He’s confident and assertive, like the stately furniture and the offices themselves. He’s tasteful, like the oriental rug and like the conference room on the fifth floor. You go there for the interview after a trip on the modern elevator.

And Dudley’s a trip.

This is a man who knows where he’s going, who wants to do it the right way, who has strong feelings about his beloved business. Notice that I didn’t say “his beloved advertising business.” He has different views about that way of looking at the business of marketing and advertising.

Life and career are quite different than he would have anticipated when he graduated from Miami University in Ohio. He got a degree in Mass Communication even though he says he went there primarily “to play hockey.” While there, he discovered that “movies were more fun” and decided that he would like to write movies. Off to New York, he “bummed around for over two years” trying to connect in the film business and finally had to get a steady job.

He decided to settle for “30 second movies” and he landed a job in the creative department of one of New York’s biggest agencies, now known as Ammirati Puris Lintas. There, he worked exclusively on television and participated in network spots for Heineken, Diet Coke, Lysol and Mennen.

The agency was account-service dominated which influenced his firm belief that “strategy and creative are really the same thing.” That is an idea which continues to drive his work and the agency’s intentions.

While in New York, he was recruited to a Los Angeles agency, Dancer Fitzgerald-Sample. He took the job and became their youngest ever vice president but he admits that he probably took it because making movies still had some intrigue for him. At D-F, he worked on their efforts to get accounts to supplement their Toyota business. The agency landed Pioneer Electronics which became one of his proudest successes. His campaign, “Catch The Spirit of a True Pioneer,” led Pioneer to great success.

Dudley created and produced the first music-video commercial in the industry for his client, Pioneer. It was a takeoff on West Side Story. Because it reflected the social realities of that era, it was selected to be part of the permanent collection of the Smithsonian’s Cultural Mores Section.

Both Dudley and his wife, Tanice, were raised in New Jersey. They live there now, in Pennington, with their three children: Aubrey, Drew and Tess. The two older children go to The Lawrenceville School, Dudley’s alma mater. The proximity to New Jersey was one of the reasons he responded to an opportunity at Lewis Gilman and Kynett (now Tierney Communications.)

He was very impressed by the quality of LG&K’s work. As vice president and group creative director, he participated in what he calls their “glory years” but was one of the victims of one of their many top management changes.

He and a good friend at LGK, Bob Schell, were both let go with quite limited severance. Fortuitously, they were contacted by Herr’s Potato Chips which offered themthe account if they wanted to start an agency. That was in 1992, the beginning of what is now SFGT. Herr’s was with them for 12 productive years. Today, the agency has 30 people and serves eight accounts. Interestingly, two of their accounts, Tylenol and Sunoco, are deeply involved in NASCAR racing.

Dudley feels that their work with NASCAR is one example of why he prefers not to be thought of as a traditional advertising agency. He insists that the agencies which rely primarily on “advertising” for success are on the wrong track. His vision calls for an agency which is deeply involved in all aspects of a client’s marketing communications activities. For SFGT’s clients, NACAR is one (important) ingredient in all-inclusive programs for the clients’ core consumer markets, for clients’ public relations focus and for clients’ employee pride.

When asked about the account he is most proud of, he winces and reminds me that he’s proud of every account. Prodded, he volunteers that he is particularly proud of the work SFGT did for the opening of the Constitution Center. His feelings of patriotism seem to be reflected in the positioning they created for the Center, “The Freedom To Be You. It All Starts With The Constitution.”

Oddly, he says that the “dumbest” and the “smartest” things he ever did in business are actually the same thing. “The smartest thing I ever did was to surround myself with my two partners: Sarah Lenhard, Managing Director and head of Account Service and Dan Reeves, Managing Director and Executive Creative Director.” The dumbest thing? “Not bringing them on board sooner.”

That supports his conviction that the toughest part of the ad business is finding, hiring, nurturing and growing with good people. He worries about that because he finds it difficult to find candidates with outstanding talent, valuable experience and a good cultural fit. He also worries about the possibility that good clients may be losing confidence in agencies. He says, “Agencies have to be emotionally able to have complete confidence in themselves in order to be secure enough to warrant meaningful collaboration from clients and in order to provide optimal service.”

Dudley Fitzpatrick is confident. It’s apparent. Think about the old stone steps leading into the agency. Sure, they could afford something new but “old” has character and character is what he wants to project. It’s apparent when you take the elevator to the spiffy conference room on the fifth floor. That’s another, positive message to visitors. It’s apparent when you hear his straight forward answers to direct questions. Yes, Dudley Fitzpatrick is confident about his agency, about his vision of the business he’s in and about himself.

Malcolm Brown
http://www.articlesbase.com/advertising-articles/profiles-of-the-powerful-advertising-exec-dudley-fitzpatrick-10487.html

There must be a few valid reasons why you’d think of bankruptcy to clear out your ongoing problems. Everyone who’s in bad financial problem would like to know how to find a cheap bankruptcy lawyer. Here are easy ways of locating cheap bankruptcy attorneys online.

Web Resource #1:

Use Google Maps located in http://maps.google.com

Type the search phrase “cheap bankruptcy lawyers” in the search field. Add your city, state, and zip code to make the results more accurate. Click the “Search Maps” button or press “Enter” on your keyboard. Google will then give you a result of law firms that meets your search query. You will see a map with markers on it. Click any of the marker and you will see the actual address, web site address, and phone number. You can also do the above procedure using Yahoo! Local located in http://local.yahoo.com

Web Resource #2:

LexisNexis’ Martindale-Hubbell Lawyer Network located in http://www.lawyers.com

This is LexisNexis’ online version of Martindale-Hubbell comprehensive attorney directory. Use the “Lawyer Search” to find an attorney from over one million lawyers and law firms in their searchable database. Under the “Lawyer/Law Firm or Area of Law” input field type in ‘bankruptcy’. Type your city under the “City” input field and select your state. Remember to change the country to “United States”. Click the “GO” button and you should see your result of bankruptcy attorneys. If the results are too few, then you can widen your search criteria by removing the city on the search box. You can also use the adjacent towns close to you. Make sure that you select lawyers or law firms that handle consumer bankruptcy.

Web Resource #3:

Thomson Reuters’ FindLaw located in http://lawyers.findlaw.com

This is the online version of West Legal Directory of attorneys. Use the “Search for a Lawyer” to search their online database. Under the “Legal Issue” input field type in ‘bankruptcy’. Type in your city under the “Location” input box. Remember to include your state and zip code. It will make the query results more accurate. Press “Enter” or click the “Find lawyers” button. You will then be presented with a list of bankruptcy attorneys. If the list is too few, then you can widen your search criteria by removing the city on the search box. You can also use the adjacent cities close to you. Take note of the entries that have “offers free consultation” mark. They are the attorneys that you should prioritize on your list.

Some Warning on Choosing a Bankruptcy Lawyer

A lawyer can either represent the creditor or the debtor. Make sure the bankruptcy attorney that you are getting is a “pro consumer” and not a “pro creditor.” Remember that bankruptcy is not an easy matter, you do not want your attorney to miss the complexeties and intricacies that could save you money and property in the long run. Never assume that free or cheapest is better. Experience always counts.

Roilee Mandeville
http://www.articlesbase.com/law-articles/cheap-bankruptcy-lawyers-the-real-secret-to-quickly-finding-them-online-674359.html

Anyone who has paid attention to the mounting credit card crisis afflicting modern Americans should not be surprised by the sudden explosion of debt management firms in the last decade. The debt management industry has grown exponentially over the past few years, assisting any number of borrowers with their financial burdens, but, as with any new business that concerns itself with debt and credit cards, a breed of predatory debt service ‘professionals’ seek only to exploit the economically desperate households by promising savings they could never deliver and sometimes even defrauding them altogether. Scam artists are an unfortunate consequence of any profession, and the debt relief industry is no better or worse. However, since word of mouth and a reputation for honesty and competence can make or break a company – especially a finance company – these nefarious loan workers don’t last long. However, just in case you’re unlucky enough to meet one of the less reputable debt management workers, here are a few tips to identify the worst sort.

Since debt consolidation loan programs are the most popular form of debt management, let’s start with loan officers and how they can trick unwary homeowners into borrowing more than would be advisable upon their property. Essentially, this sort of debt consolidation depends upon home equity. Credit ratings (above 700 FICO scores, ideally), debt to income ratios (less than forty percent of gross months income should go to home mortgage payments and revolving debt payments), and employment histories (clients most likely to be approved should have worked the same job for two years as provable by W-2 tax returns) are, of course, important. However, the most important element for mortgage debt consolidation will be the amount of home equity the homeowner currently enjoys.

Now, not only is home equity a tricky subject at present with property values falling all over America, but this drop in values is largely the fault of mortgage companies themselves. With an absence of regulation somewhat absurd in retrospect, criminally negligent loan officers and mortgage brokers (together with processors that looked the other way and appraisers that exponentially bumped up home values) gave loans to borrowers that should never have deserved them. The resulting mortgages proved more than the homeowners could possibly afford, and the glut of foreclosures (which should have been expected) drove down home prices which only worsened the potential refinance and debt management solutions homeowners would ordinarily presume to be available. Furthermore, these same foreclosures cost the original mortgage lenders (within a debt industry dependant upon constant cash flow for their bottom line) tens of millions of dollars and a previously inexplicable number of mortgage companies simply faded away. Though many of these businesses deserved to go under, the sudden failure of so many mortgage companies had a dire effect upon the American economy and our newly skyrocketing unemployment is but one consequence.

This is not to say that all of the mortgage refinance options are to be avoided. While it is much harder to take out a mortgage loan under current conditions, some homeowners – facing adjustable rates or balloon payments – simply have no choice. On the other hand, it is NOT necessary for them to include their credit card debts within their refinance no matter what the more aggressive loan officers would try to convince them of. Home mortgage refinancing is a form of debt management, of course, and making sure that what will be the average American consumer’s largest lifetime debt falls under acceptable (and formally fixed) interest rates should be of the utmost priority. However, what trustworthy mortgage professionals will explain is that the longer the term the more money you pay with even a locked prime interest rate. That’s just the way compound interest works. For that reason, mortgage professionals attempting to explain debt management should do whatever it takes to make borrowers have the lowest terms that would be comfortable for their household budget.

Not, you understand, that they should try to find the lowest payments for borrowers (obviously, it would be rather the opposite), but rather the fewest payments that they would have to pay over the course of the loan. A fifteen year term, if applicable, should be advised before the thirty, and biweekly payment programs that add up to essentially thirteen months of payments every year with accompanying years off the loan pay-off should also be strenuously encouraged. Perhaps most importantly, the loan officers should always ensure that the lender did not include some provisions against early pay-offs. Prepayment penalties, though technically legal, are the most underhanded strategies of less than trustworthy mortgage brokers. Anyone who tries to force through a prepayment penalty on unsuspecting homeowners or tries to convince them of the merits – often they’ll knock a few hundred dollars off the loan fees – should be avoided no matter their (evidently overstated reputation).

While all of this should be fully recognized by homeowners before they start talks with any mortgage lender or broker, your authors are aware that debt management this day and age primarily concerns itself with credit card debts. There are many other sorts of financial burdens for consumers to worry about, but the average American’s greatest worry tends to be the overload of credit card bills. Student loans, for example, generally boast the lowest interest rates of all types of debts. Hospitals and insurance companies, whatever their public perception, regularly work with their debtor clients to make sure that their medical bills are not an undue burden, even offering stays of payment. Auto loans, it is true, sometimes have higher interest rates, but they’re still rarely above those offered from mortgage loans or home equity loans. Nevertheless, even if there is a significant different between the interest rates (and, for credit card debts, there is almost always a steep drop once consolidated), the smart borrower has to remember the effects of compound interest. It is easy to see why loan officers would try to sugar coat the debt consolidation program, their pay is based around the overall size of the loans that are refinanced or taken out, but that is no reason to willfully ignore the borrowers’ true needs.

Not to belabor the point, but the worst suggestion that an unscrupulous loan officers can inflict upon their homeowner clients would be advising them to throw their credit cards debts onto a mortgage consolidation lasting decades. This is not debt management, this is debt avoidance. Borrowers will find that they are still paying their debts, but, after the interest continues to multiply, they will be paying their debts many times over. Worse still – especially in these trying times – homeowners are surrendering their ever more precious equity for only a temporary fix. Credit scores will fall from the sudden amount of credit card accounts now open, and, more to the point, how many consumers, once they have moved their debts over to a different loan source, would be able to resist the temptation to revisit their former spending habits and once again rack up bills through thoughtless purchasing. The key to any true and lasting debt management must be the debt professional working with the consumer to actually pay off their debts! Simply moving them to an equity loan that, for the moment, lowers their payments (however much longer and how much more they will inevitably pay) does nothing to assist the borrowers’ long term financial stability. Any viable program for debt relief must concentrate not only upon education to prevent such debt from occurring in the future but on actually eliminating the borrowers’ debts!

There are many other varieties of debt management, of course – not all debtors, after all, own their own homes. Consumer Credit Counseling companies have been exploding in popularity of late, but they contain their own string of suspicious activities each consumer must keep an eye out for. Since the industry does not tend to care so highly for certification, they attract more than their share of con artists and shady ‘corporations’. For this reason, borrowers must be incredibly diligent when investigating the bonafides of any business that they consider dealing with. Do not be fooled by flashy web sites or nice offices in well regarded areas. Debt management is about the people that you work with and many of the best debt professionals and debt management films, working in such a new industry, will not spend the time or money on advertisements while trying to make their way through a career or business with the best of motives.

Once again, though, even for those Consumer Credit Counseling companies that actually are legitimate, so much of the industry still depends upon credit card conglomerates (the very creditors that your debt management representatives are ostensibly fighting against) for half of their payments. Have you ever wondered why there are so very many Consumer Credit Counseling commercials on the television urging unsuspecting debtors to take a change at easing their financial burdens? As it turns out, above and beyond the sky high fees initially charged to the debtor clients themselves, the CCC firms get even more money from the various lenders. It is all part of a ploy by the credit card companies to prevent borrowers from attempting to declare bankruptcy. Chapter 7 bankruptcy protection has been greatly lessened over the last few years of an unfettered congressional deregulation, but the option does still attract a number of desperate debtors, and, though the chances are slim to none under the newest changes to the bankruptcy code statutes, some may have even have a chance to successfully wipe clean their unsecured debts (though it would also mean basically erasing the entirety of their possessions).

Because Chapter 7 bankruptcies do still remain a threat to their eventual bill collection, the credit card companies help fund the Consumer Credit Counseling companies so as to convince hapless borrowers to maintain and try to repay their loans, albeit in a different form. There are benefits to signing up with the program, to be sure. Interest rates are lower (not that they could actually be higher) and many of the creditors will agree to waive some of the fees assessed from over limit accounts or payments that arrived too late. However, considering the amount of money Consumer Credit Counseling professionals would charge for the opportunity – and, also, keeping in mind how damaging the Consumer Credit Counseling approach would be to the prospective client’s credit ratings once entered – most every applicant should be able to search out a better route to debt management success.

Debt settlement is another form of debt management rising in publicity the past few years, and these types of companies have many similar features to Consumer Credit Counseling firms. Both industries, after all, ask borrowers to sign over their collected debts (once again, primarily those unsecured ones which would be affected by bankruptcy protection). The debt settlement industry, however, does have a national certification program with which borrowers may rely upon to ensure that the people that they are dealing with could be properly trusted. Furthermore, since the underlying principles behind debt settlement thoroughly guarantees that there will be no collusion between the debt management professionals and the credit card companies, consumers do not have to worry about their counselors serving two masters. With debt settlement, the specialists working upon the specific case maintain an adversarial (though, as you’d imagine, still friendly for business purposes) relationship with the credit card companies so as to negotiate a reduction of their clients’ total balances. The debt settlement representatives have no reason to ever do anything more than work for the debtors’ best interests. That’s the only way their careers and the industry as a whole will survive and thrive within the new economic realities.

No matter the foundations of the debt settlement industry’s guiding principles, however, there still exists (as always will, with any possible employment opportunity) desperate scavengers aiming to take advantage of their clients’ ignorance and neediness regarding complicated financial matters. As we have said, these few practitioners of economic scams are found sooner rather than later and let go, but borrowers must always be wary of any debt management specialist that insists upon his or her fees paid up front. Initial consultations, by industry standard, should always be free of charge. They are, after all, trying to impress the clients with their professionalism so as to win their business, and it is highly suspicious that they would ask for money before they have even begun to do their job. Debt management must garner the trust of both the debtors and the creditors. Do not take the advice of anyone that you believe would be purely out for the quick buck.

For that matter, there are also any number of less than legal financial ploys that may sound like normal business practices but, in actuality, would leave the borrower open to charges of fraud. In the same way the malfeasant loan officers may urge homeowners to go with appraisers promising to pump up home values to tens of thousands of dollars more than the properties are actually worth or fool with pay stubs and tax records to suggest greater gross incomes than the true earnings, some debt management professionals might even advice that their client ask for a different Employee Identification Number. The purpose of altering Employee Identification Numbers is purely to trick lenders into disregarding credit report information and would be thought of as highly fraudulent behavior punishable by the fullest extent of the law. Before signing off on any such activity, make sure that you contact an attorney or – at the least – read up on the consequences of such actions. Whatever minimal savings may result from these sort of tactics are hardly worth the legal struggles that may ensue.

All of these warnings are not meant to turn prospective borrowers away from the good that proper and law abiding debt management counselors could do for household dearly in need of debt relief. The overwhelming majority of specialists working in these fields obey the strict letter of the law and, even beyond that, the specific rules of their chosen field. Most debt professionals enter the industry because they enjoy helping borrowers climb through the thickets of debts and find a better life for themselves and their families. Do not assume, just because of a few bad apples, that debt management specialists should be considered suspicious solely because of the nature of their work. As with any profession – from mechanics to congressmen – there are always bound to be a few brigands only out for themselves, but, with careful study of their company and a close reading of precisely what they are attempting to do, it is not that difficult to figure out which ones you should trust.

Cole
http://www.articlesbase.com/personal-finance-articles/avoid-debt-management-scams-736179.html

Most likely you are reading this article because you typed “free debt consolidation” in your browser window. You certainly had a lot of hits on that one and this is just one article of many. One of the things you will have noticed if you start reading articles that seem to be about this concept that there is really a lot of differing information in them. One main reason for this is the fact that there is a lot of ambiguity surrounding the term “free”. You may find an article that talks about free debt consolidation and they really mean there is no fee for the service. You may find another where the concept of free really only refers to the free material you can receive to learn more about debt consolidation.

So here we will discuss both of these concepts.

Free debt consolidation would appear to mean that you can have your debt consolidated into one single loan and you will not have to pay anything for this service. If you are someone who believes there is no such thing as a free lunch, you will probably be skeptical about this and assume there must be hidden fees involved, or they are just lying. Well, the truth lies somewhere in the middle. There are companies, which are true non profit companies that will help you to look at all of your debt and plan the best way to pay down the debt and also advise you on a budget and keeping within it. This is not the same as a debt consolidation company that will take your current bills and pay them down and you pay that company back at a slower rate; these non profit firms are not able to do this and this is not a service that usually comes for free, I’m sorry to report.

If however, you are talking about obtaining a free consultation from a debt consolidation company, you certainly can obtain this service for free. Debt consolidation companies want your business, otherwise they wouldn’t be in business. So they will be happy to have a representative sit down with you or speak to you over the phone about your questions regarding debt consolidation. You can always read about information regarding debt consolidation on the internet, but you may still be confused. As you are looking at the internet, you should make a list of questions to cover every topic that confuses you about debt consolidation. The representative will be happy to spend time with you to answer these questions if there is a chance they are going to get your business. While you are searching on the internet for information about debt consolidation, be sure to visit those sites that give consumer advice about unreputable debt consolidation companies, and also about how to get out of a debt consolidation contract if you do get stuck with one of them. There are even sites that will try to dissuade you from doing a debt consolidation loan. Read about that as well, since you want to know about all sides of the issue. These articles usually discuss companies that use practices that are at best, unethical, and at worst, illegal.

Whether you are online looking for information about “free” debt consolidation or about “free” information about debt consolidation, make sure you know what you are doing before you commit any funds to any organization. Even information that really is free may be totally valueless if the information is wrong. Debt consolidation that purports to be free may not be, and as you originally suspected, has hidden fees that may make your financial situation worse.

That is a reason that many debt counselors advise against using so called free debt consolidation services. You may be better off in the long run working with a company that has clearly stated written fees for their services. You know upfront what you are paying for, and you won’t get stuck with hidden fees that add even further to your debt. When the charges are listed clearly, you can calculate them and know for sure that consolidating your debt is going to cost “x” %. With hidden charges that free debt consolidation companies tack on, you may be paying a much higher rate in the long run and not even know it.

Jack K. Blacksmith
http://www.articlesbase.com/finance-articles/what-is-free-debt-consolidation-in-financial-planning-96213.html