Debt Settlement Online & Debt Consolidation Help & Tips

Dealing with debt in a divorce

July 2, 2015 by · Leave a Comment 

Article Written by : Financial Resources 101

Marriage as well as divorce will have consequences on debt. In this article we try to explain impacts of a divorce on certain debt incurred during marriage.


Mortgage is one debt that many enter into immediately after marriage. Different state laws are making it complicated for many who are facing a divorce and having a mortgage obtained while married. It is more common for both parties to be responsible for the mortgage regardless of how the mortgage is obtained. But knowing your state law will help.

Credit card debt

If the debt occurred before the marriage, each party may be responsible for the debt. Once again state law may play a role. But most states consider credit obtained during the marriage as joint regardless whose name appears on the card. Therefore, both parties will be equally responsible.

Medical expenses

Once again the state law may handle medical expenses in a divorce differently. Community property law states such as Arizona and California, consider medical expenses incurred during the marriage as community debt making both parties equally responsible. In equal division property law states courts will make a decision taking variety of factors into consideration including whether parties lived together or not and impact of debt on children.

Aware of your options before renegotiating a debt

March 31, 2015 by · Leave a Comment 

Article Written by  : Invisible Insurrection

Many of us are burden by heavy debt load. There is not enough income coming in every month to pay down the debt. Extremely high interest rates are making it more difficult for many to make a dent in their unpaid credit card balance. If these situations are similar to what you are facing every day, there are ways to deal with it. One of many available options is to renegotiate with the debt issuer. Before you start to renegotiate your debt payment do your homework. Find how that particular debt affects you such as what percentage of your income requires you to pay the debt. Also, how much theoretically you can afford to pay.

You can negotiate for a principal reduction, interest rate reduction, reduction of the monthly payment, a lump sum settlement (if you can pay off debt in one payment), late fee reductions or combination of all of these. Once you contact them expect for the worse. If you can’t get at least some relief start going up the chain of command by talking to next level each time you get a refusal. Once you reach your goal get it in writing for record keeping. Honor the deal by making prompt payments.

Enroll yourself in debt settlement to reduce your financial obligations

April 2, 2012 by · Leave a Comment 

If you have been searching a way out of a seemingly endless cycle of debt, then you could perhaps take recourse to debt settlement. Enrolling yourself in a debt settlement program could save you hundreds and sometimes even thousands of dollars. When financially distressed consumers with overwhelmingly large credit card debts cannot find any way out, they consider settling their debts through a settlement program. Have a look at the benefits of debt settlement programs.

1. Reduces the principal amount: If you enroll yourself in a debt settlement program, you can reap the benefits of a significant reduction from the outstanding balance. If your debts are above $600, then you can go in for a settlement. The more your debt amount is, the more you can benefit from settling your debts. Your debt consultant will negotiate with your creditors to reduce the total principal by more than 40-60%. This way you can save a huge amount on the total debt amount.

2. One single low monthly payment: By enrolling in a debt settlement program, you just have to pay a single monthly payment to the settlement company. It is certainly better than making a single monthly payment than making multiple payments to multiple creditors. The amount that you need to pay to debt settlement companies is also considerably lower than what you had to pay to your creditors. Thus you benefit by paying less than what you had to.

3. Get out of debt soon: Debt settlement will help you get out of debt as soon as possible. As you know that incurring a huge amount of debt and not being able to pay it off is the worst thing that can happen to credit card holders. Thus the faster you get rid of debt, the better for you. The maximum time needed to settle your debts is 3-4 years but you can get rid of it sooner too depending on the debt amount.

4. Helps you avoid bankruptcy: If you are knee deep in debt and the only option left for you is to file bankruptcy, then it is best considering debt settlement. Settle your debts to pay off a lesser amount than what you actually owe. This will help you avert the possibility of filing bankruptcy.

If you are serious about getting out of debt, then seek help of a debt settlement company. They will design an appropriate plan for you and help you achieve the goal of paying off debts.

How to Become Debt-Free

March 28, 2011 by · Leave a Comment 

Being in debt is never a good thing because it consumes you throughout the day leaving you wondering how you are going to make ends meet. And mental stress is just as tiring, even more at times, than any other kinds of stress.

There are simple ways to become debt-free, and here is a list of things to consider:

#1: Eliminate all unnecessary expenditure.  This can be done by making a list of things that you consider wants and needs. The money that you save from preventing these purchases can be used to pay off your debt, even if these amounts are very little.

#2: Know how much you owe – what is the amount of the debt involved. From there on, you will have a clearer picture as to how you can pay it off.

#3: If you have a mortgage or credit cards, always ensure that you obtain the lowest rates involved. In the case of the former, you might have to pay higher monthly installment but you will clear it off sooner; and with the latter, you will just have to avoid the high rates that come with it.

#4:  Another suggestion is to build a principal repayment plan which will cut the amount that you have to pay with every penny that you get to save.

#5: Another approach is to try a bi-monthly repayment plan that is commonly available with some banks. Not only will it reduce the term but will also save you a lot of money in terms of interest.

Steps to Remain Within Your Budget

February 8, 2011 by · Leave a Comment 

It doesn’t matter whether you’ve been born rich or poor, the secret to fiscal security is to know when you have to remain within your budget. It’s one thing to make a budget and a completely different thing to stick with it.

However, it shouldn’t be that difficult for you to follow a budget if you follow these tips:

Tip #1: Write out every detail of the budget

Make a list of all the items that you spend on whether it is the groceries, transportation and other bills as well. You need to write it down so that you don’t forget what needs to be spent and what doesn’t. This will come in handy especially if you want to determine the amount of money that is allocated for your savings, expenses and most importantly, your daily expenditure. Factoring all these in will give you an excellent idea as to what is important and what you need to eliminate.

Tip #2: Consider savings as expenses

While it is important for you pay off your bills first, when you consider your savings as expenses, you will not miss a payment even once, and this will mean fiscal security in the long run.

Tip #3: Control Yourself and value every penny

Learn to control your desire to splurge on things that you really, and if you detail out your expenses for at least a month, you will know how wasteful you can get on things on you don’t really need. Another aspect is to value every penny that you can save, even if it comes to spare change. In the long run, they count for a lot.

Debt settlement to benefit both parties

November 27, 2010 by · Leave a Comment 

Debt settlement is similar to debt arbitration and negotiation. It aims to reduce debt by making an agreement between both debtor and creditor to lower the debt balance and rendering it as full payment once made. As a prerequisite of debt settlement, it must be proved that the debtor can no longer make monthly payments. Only then will a creditor be obligated to negotiate reducing the debt balance that’s favorable to both parties. The debtor also has to keep in mind that once payments are ceased, the debt balance will keep growing due to late payment fees and interest rates.

Settlement lawyers as well as companies may be able to help debtors undergo settlement with creditors. However, they do charge service fees which may be too large for the debtor to afford. Also, they may impose monthly debits from the client’s bank accounts, thus making their service more of a liability to the debtor. There are experts giving advice on seeking settlement services, such as agreeing to pay only after the settlement is done, and the amount of fees should be equal to one-fifth of the amount by which the debt balance was reduced.

The main of a debt settlement should be for the creditor to salvage credit that would otherwise be negated if the debtor files for bankruptcy. It’s also more viable to the creditor than taking other measures to collect credit from the debtor. The creditor may resort to selling the debt to bad debt purchasers, in which case the creditor will be extremely shortchanged. Finally, the barrage of calls and lawsuits that a creditor files against a debtor may result in bankruptcy filing.

Tribune deal ‘one of the worst corporate deals in American history

October 21, 2010 by · Leave a Comment 

A committee of creditors for the Chicago-based Tribune Media company has called the 2007 buyout one of the worst corporate deals in American History. A lawsuit against the company accuses Chairman Sam Zell, who agreed to buy the failing company for 8.2 billion dollars of engaging in fraudulent business practices. Dennis Fitzsimmon, a former CEO, and the Chandler family, one of the largest shareholders in the company, were also named as defendants in the new suit. 

Plaintiffs claimed shady dealing pushed the company to file for bankruptcy protection in 2008. The lawsuit of the creditors names the Valuation Research Corporation for breach of fiduciary duty and accuses Morgan Stanley or professional malpractice. The creditor’s committee filed a number of other complaints in court, in part because of a two year statute of limitations on bankruptcy proceedings. Another lawsuit goes after the banks that financed the buyout for garnering more than $200 million dollars from the Tribune Media Company leverage buyout.

Plaintiffs in the case have approved the Tribune Media company’s reorganization plan, but the plan must go before a judge to meet final approval. If the deal goes through, the company will come out of bankruptcy and the banks named in the second lawsuit will gain limited liability from their role in the 2007 leveraged buyout of the Tribune Media Company.

Legal battles with creditors have cost the company nearly $135 million dollars in legal costs. Tribune Media company owns 23 television stations, the Los Angeles Times, and their flagship publication, the Chicago Tribune.

Is it the right time to refinance?

September 26, 2010 by · Leave a Comment 

Well, you’re in debt, and during these tough financial times, there’s no doubt that in looking for a way out, one of the options that might crop up is taking the ‘refinancing’ option. While most financial experts suggest that it is not necessarily the best approach to take, misfortune comes when you least expect it.

While there might be a slew of reasons why one might consider taking this option, perhaps medical bills, paying off school loans, and medical reason might some of the most common ones, and while there are reasons why one should avail of this financial offering, there are several others that should encourage you to do so, especially if this is the only way by which you can deal with financial deficits.

No matter what the situation, one should always ask themselves how long they are going to stay in the home that they intend to get refinanced, however,  if you have no plans of moving and if the interest rates are low, one can save thousands of dollars over a fifteen to thirty year period of time.

Since refinancing involves a new mortgage and a new payment schedule on a revised (read: lower) interest rate, it will be a good idea to go in for this option especially if your home already has built equity when paying for your previous home loan.

And while one has options of either going directly to a bank officer or getting in touch with mortgage brokers, both of them have their advantages which could work out in your favor. However, it is up to you to weigh the pros and cons.

Settling your Debts with Debt Settlement

June 3, 2010 by · Leave a Comment 

Sometimes, debt has a way of snowballing. When it gets out of control, you will find that you have no way of settling what you owe to your creditors. Fortunately, there is a way in which this situation can be handled without filing for bankruptcy.


In a nutshell, Debt settlement is a process whereby a mediator negotiates on your behalf to reduce the amount owed. Debt settlement is handled by financial firms that specialize in this area. Depending on how good the firm is, the discount you will get from you debt can be substantial. The percentage can vary from 20 percent to around 75 percent; but keep in mind that the higher percentages are only possible through a combination of excellent negotiation skills and the perception your creditor has of you.

One fact that is to your advantage here is that all creditors’ view the amounts owed in a practical way. They have no real advantage in sending you to jail and getting no remuneration in the process. Instead, they prefer to get whatever they can from bad debts. In their eyes any money from a bad debt is good money. This is one reason why most financial firms get good results for their clients.

Most firms will give you a loan to pay off the altered amount in a lump sum. However, to get to this stage you need to have certain documentation cleared by them. You should also have a regular salary from which a fixed amount can be deducted towards the loan.