Navigation

Simple Strategies For Dealing With Debt Consolidation Correctly

Debt consolidation can help erase your debt. Although it won’t save you from everything, it is going to allow you to make just one payment every month to the people you owe money to. If you’re struggling to pay your monthly bills, continue reading this article to get great tips about debt consolidation.

Think about filing for bankruptcy. Whether Chapter 13 or Chapter 7, it can be a bad mark for your credit. However, when you are already missing payments or unable to continue with payments, you may already have a worse looking credit report than a bankruptcy will be. You can get your financial house in order by clearing the decks and starting fresh with a bankruptcy.

Borrowing money can really help you pay off your debt. Speak with a loan originator to see if there is something you can get with lower interest rates to help you pay down your debt. You could use vehicles as collateral for those loans and using that borrowed to pay them. Make sure you pay your loan back on time.

When shopping for a good debt consolidation loan, look for one with a low interest rate that is fixed. This will help limit your stress and expenses during the process. Choose a loan which has favorable terms, a great rate and the ability to pay off your debts in full.

Negotiate as much as possible to get the best possible deal. For instance, ask the credit card company to consider lowering your interest if you close the account. You never know what they might offer you.

If you can, accept a loan from somebody you know. Although, this is risky for the relationship if you never pay the money back. This should be considered as a last resort, so take this route only if you fully intend to repay the debts.

Always do your research when look for debt consolidation firms. You don’t want to end up with a debt consolidation company that has a bad reputation, so you should check with the BBB first.

Ask how much you will be charged by the debt consolidation service. Reliable professionals should have a brochure with their fee structure. Just bear in mind that financial professionals like this have to perform a useful service before billing you or collecting fees from you. Don’t pay set-up fees for opening an account.

You don’t want to allow your bills that are piling up to get you down. Debt consolidation exists to make repayment of debts a bit more manageable. Use these tips to combine all bills into a single, easy payment to escape debt quickly.

Selecting A Collection Agency

If you run a business, you are sure to have some customers who require a lot of follow-up before they pay you. Often you spend too much time and energy to collect money that is rightfully due to you. Giving this task to a collection agency will help you:

Concentrate on your core business rather than on non-core tasks like debt recovery.
Increase your debt collection and reduce bad debt.

You must consider the following factors while selecting a collection agency:
1. Experience
How many years of experience does the collection agency have?
Does it have experience in the debt collection services you require, such as commercial, medical or check collection?
Can it collect debt for your kind of account balance?
Can it give references?
2. Professional Collectors
Are professional collectors in the collection agency well trained to deal with your customers? Remember, they are going to represent you and tempers may run high in debt collection. One bad conversation can spoil your relations with the customer.

Legal Debt Collection Best Practices:
There are plenty of articles on the web that lay out in plain English what the Fair Debt Collections Practices Act says you can and cannot do. Just to give you some idea of the law’s requirements, here are some of the biggest:
– No telling any third party about the debt (except collection bureaus, collection agencies, or the debtor’s attorney).
– No calling on the telephone 9 pm – 8 am, or calling repeatedly in a way that is annoying.
– No postcards or envelopes that mention the debt.
– No threats to take actions you cannot or will not really take, such as seizing property, in the case of an unsecured debt.
– No misrepresenting yourself (e.g., “Hi! This is the Publisher’s Clearinghouse Sweepstakes. May I speak to John?”).
– No paying down the debt with payments the customer has directed be applied to other debts
Tips and Tricks for Legal Debt Collections:
With all these limits on what you can do to collect a debt, what can you do legally?
– Speak with the debtor personally on the telephone

Also it is important to know that there is a law in place intended to protect the people that collection agencies contact. The FDCPA (Fair Debt Collection Practices Act) was enacted to keep debt collectors from abusing, harassing, or deceiving a person when attempting to collect a debt. It also gives debt collectors strict guidelines to follow when collecting a debt.