Money Minute – Thursday 23 January

Are you living within your means? Many Americans spend more than they are saving, thus, gradually going deeper into debt. According to the Federal Reserve statistics, “consumer debt has more than doubled in the past 10 years” and the average American family has taken on more debt than can safely handle. How can you avoid falling into this pitfall and build wealth?

A debt management plan offers an individual the prospect of rescheduling their unsecured debt repayments in an affordable way. Where there are multiple creditors it’s actually the combination of a co-ordinated series of agreements between the individual and each creditor. While some people handle these negotiations themselves, many prefer to use the services of professional intermediaries known as debt management plan companies or debt management plan charities. Anyone considering starting a debt management plan must consider which type of DMP provider will provide a service that will best meet their needs.

Debt consolidation advice is one of the hot topics on the Internet. The recession has caused a lot of people to turn to credit cards and short term loans to maintain their lifestyles. Now that things are getting better, it’s time to get your finances under control. So let’s take a look at some of the ways you should be doing debt management.

When dealing with a debt collection agency, it’s important to take precautions and protect yourself – and understand the provisions of the federal Fair Debt Collection Practices Act (FDCPA). That’s the law that protects you, as a consumer, from debt collector abuse.

If you have been through a debt crisis and want to demonstrate that you now have your debt under control then you will want to have it properly shown on your credit reports. You need to show that you have taken care of your debt or are faithfully taking care of it now. It is important to get hold of copies of your credit reports so that you can make sure that everything reflected on them is accurate and true. So here is what you need to do in order to undertake that process.

According to recent research and the monthly Markit index, Britain’s household finances are deteriorating at their fastest rates since the recession was at its most volatile in 2009. There is new information which leads us to believe that consumers are having huge problems with their household finances, stemming from rising prices of most household items and fuel, as well as wage cuts and job losses.

When going about their daily business, the employees at Release Money Group often remark on the number of people that are puzzled at the difference between debt collection and debt management. As a quick explanation to help to educate our customers, here are the definitions of debt collection and debt management. Debt Collection – Debt Collection is defined as a business that pursues payments on debts owed by individuals or businesses.

On the surface, declaring bankruptcy looks like an easier and better way to be free from debt. However, doing so can have major repercussions, affecting your assets, career and credit rating. A debt consolidation scheme – such as an IVA (Individual Voluntary Arrangement) – can act as an alternative to bankruptcy, but even so, is it really suitable for everyone?

Debt Elimination is suitable for a broad range of consumers who are currently in debt and are having trouble meeting their minimum monthly repayments. Debt Elimination is best for people who would like to: Evade the Embarrassment of Declaring Bankruptcy The very attractive alternative to declaring bankruptcy is Debt Elimination. You will destroy your credit rating entirely and it will take many years to rebuild it, if you take the bankruptcy route.

When searching for a credit counseling agency, it is essential to pick a company that truly works in your favour and is not after making its commissions from you. The Federal Trade Commission (FTC), IRS and other non-profit consumer protection companies have compiled a list of tips that consumers can use to find good credit counseling firms that will represent your case.

The Fair Debt Collection Practices Act states that federal law prohibits a collection agency from engaging in various deceptive or illegal debt collection practices such as threatening the debtor, etc. In this article, we go over some debt collection practices that are banned by the FDCPA and any collection agency that employs such tactics is looking for trouble!

Most debts that are assigned to debt collection agencies are unsecured debts that do not have any collateral attached to them. Examples of such debts include credit card debt, medical bills, telephone bills, payday loans, gym dues, health club memberships, unsecured lines of credit, lawyer fees, etc. If the creditor is flexible, it might be willing to accept a lump sum settlement below the full amount to avoid spending months of collection efforts and expenses.