Category Financial Services

Five Steps to Deal with Debt Collectors

Do you receive phone calls from debt collectors? As embarrassing as it may sound, you should know that you are not alone in this. There are many people around the world who are facing the same problem. Living with debt not only affects your chances of getting a loan, but it also affects your insurance premiums and reduces your chances of getting a job, or a job promotion. To get help with debt collectors, here are things you can do:

help with debt collectors

Know what you can afford to pay

That is either a monthly payment or a lump sum to settle your debt.  After all, you can’t sign up for a plan that you cannot afford. Also, you do not want to estimate your expenses. Instead, check your credit card and your bank statements and organize your expenses on a worksheet. Once you know exactly where your finances go, it becomes easy to reduce some of the expenses. The result is the amount of money that you can afford to pay towards your debt every month.

Know the amount that you owe

For every debt that you have, find out the interest rate, the balance, the minimum payment and the period it has been delinquent. You can prepare a worksheet to record all the details. If you notice any form of inaccuracy, raise a complaint with the credit bureau so that it is eliminated.

Focus on the latest debt first

There are a number of reasons for this. Firstly, an older debt does not affect your credit much. Secondly, depending on where you live and how long your debt has delayed, the possibility of them suing you is very minimal. Lastly, most debt will eventually be wiped out from your credit card report, seven years from the date of delinquency.

Negotiate an affordable payment plan

Another important step of getting help with debt collectors is to have a realistic payment plan that will help you pay your debt. Once you know what you can manage to pay and you know which debt to clear first, talk to the debt collector and negotiate a payment plan that you can afford.  Ensure that the payment plan doesn’t compromise your ability to pay for your mortgage, gas, food, rent and lights. Also, do not mention any of your old debt to the debt collectors because this may restart the statute of limitations. Read more at Debt Mediators

Work with a credit counseling agency

You can hire a credit counseling agency to get help with debt collectors. A credit counseling agency will negotiate for a better payment plan on your behalf. Note that a credit counseling agency is not a debt settlement company. Since debt can be emotionally involving, it is advisable to hire a counseling firm that is within your locale. Look for an agency that will not only guide you on how to deal with debt collectors, but also offers emotional counseling.

To get debt collectors help, you need to hire a reputable company such as Debt Mediators Australia. Debt Mediators Australia can help with debt collectors. To know more about this company visit https://www.debtmediators.com.au/debt-articles/how-to-deal-with-debt-collectors/

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The Debt Helpline: Demystifying Bankruptcy

Our society has made a culprit of bankruptcy so much so that many people feel like life will never be the same again once they declare themselves bankrupt. However, bankruptcy declaration may help you regain control over your finances and even prevent you from losing your assets. If you feel like you have too much debt, a good solution would be to consult with an experienced bankruptcy lawyer who can give you information concerning how to declare bankruptcy or other options to consider in your situation. It is better to start looking into your financial situations earlier instead of waiting because of the many stereotypes that are associated with being bankrupt.

How to declare bankruptcy

How to determine where you are financially

Before you can go to a bankruptcy lawyer, you need to determine where you stand with your financials. In order to do these accurately, take an inventory of all your liquid assets including stocks, pensions, savings, real estate and so on then add your bills and credit card statements. If the value of your assets is much lower than the bills, you may need to consider filing for bankruptcy.

How to declare bankruptcy

Bankruptcy can be declared in two ways:

·         Voluntary: This is where you decide to declare bankruptcy from your end with the help of your bankruptcy lawyer. In this case, it is advisable to look for professional legal advice before filing since once declared bankrupt; you will have to take dire measures to fix your financial status. Also, this may affect your credit score pretty negatively.

·         Through Creditors: This is where the people you owe cash decide to ask a court to declare you bankrupt.

Why should you consider bankruptcy declaration?

Asset Protection: Depending on the type of bankruptcy you choose to file, your assets will be protected so that your creditors do not liquidate them if you had placed them as security for your loans. Many people who file for bankruptcy end up keeping most of their assets, especially their homes after filing for bankruptcy.

Freeze interest payments: As all loans are paid back with interest, the more time elapses, the more a debt accumulates. When you file for bankruptcy, you only pay the cash that is outstanding before filing preventing payment accumulation

Release from debt obligations: A person who has sought declaring bankruptcy help from a lawyer is guaranteed release from debt obligations once the grace period is over. Such a debtor is normally given a grace period within which he/she can make payments according to his/her ability. Once the period is over, the debts are written off regardless of whether they have been completed or not. However, payments such as alimony or child support need to continue being paid as one cannot be released from those.

Creditors stop calling you: Once you file for bankruptcy, collection agents stop calling since the law stipulates that they leave you alone, helping you to have less stress over your financial situation.

Filing for bankruptcy is not necessarily a bad thing. It may signify a fresh start for you, a new slate where you work to take charge of your finances.

Do you have anyone near you saying, “Help me declare bankrupt!” Contact the Debt Helpline for guidance on how to declare bankruptcy.

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7 Steps to Get Yourself Out of Debt

Millions of consumers are suffering from the staggering amount of debts that a lot of people are suffering from the so-called debt fatigue. If you find yourself buried underpayments or owing more money than you earn, your situation might seem hopeless. How do you get out of this situation? This is where debt consolidation loan comes into the picture. This method of debt repair solution is grabbing attention for its ability to simplify the loan payment process.
Debt Consolidation Loan
1. Acknowledge the problem. If you throw your bills into the trash bin unopened, you are not really helping yourself. One of the first and most crucial steps toward credit repair is to own up to your mistakes. Once you acknowledge your debt problem, you can map out the steps needed out to get out of debt.
2. Make a repayment plan. Not all debts are equal. Therefore, pay off the high-interest debts first. Put the tax-deductible debts last. While repaying your loans, you need to be on a cash diet and stop accumulating more debts.
3. Obtain a copy of your credit report. This report will provide you with detailed information about your existing loans and overall credit rating. This report provides a bigger picture of what you owe, which is crucial in mapping out the repayment plan.
4. Consider debt consolidation loan. This simplified repayment process rolls all existing loans into a single account so you will have to make just one payment each month instead of multiple payments. It is important to emphasize that this is not a debt reduction approach but rather a step towards debt management.
5. Double up on payments while you can. If you have extra cash, pay beyond the minimum and use that to repay your loans, especially the high-interest ones. The same is true when you have applied for a debt consolidation loan. The sooner you can diminish the loans, the lesser the amount you have to pay for the interest.
6. Meet with a credit counselor. There are several companies or professionals that offer credit repair in Australia. Their services can help organize your debt reduction process, especially if you are simply too overwhelmed to make any logical step.
7. Renegotiate terms with your creditors. A credit counselor can also help in this regard. A lot of creditors would be willing to negotiate terms for your loans, such as lower the interest rate, just so you can pay them off. Do not be afraid to approach them and ask for a negotiation deal. It is a win-win situation for both parties.
Dealing with debt is no joke. If you find yourself overwhelmed, look for a professional credit repair Australia company to help you out. These companies are made up of financial and debt experts who can provide consultation so you can get a good grasp at the extent of your debt problem. Moreover, they will also recommend the best repair methods so you can be on your way to becoming debt-free. Get your free consultation here: http://www.debtmediators.com.au/bad-credit-debt-consolidation-loan/.
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