Watch Out For Scams & Frauds
Want to eliminate 100% of your credit card debt without paying a dollar bill to your creditors? As your mother always told you, if it sounds too good to be true, it probably is. With many Americans falling further into unsecured debt with personal loans , credit cards, repossessions, and credit collection accounts, a new type of debt management company has sprung up---the so called debt elimination agency. These organizations claim they can “legally, lawfully, and ethically” terminate your debt. Naturally they charge a hefty up front fee, sometimes as much as several thousand dollars, and in return, they will provide you with legal documents and attorney support to help you exercise your “legal right” to not pay your debt.
These firms are not to be confused with credit card counseling and debt settlement companies , who can set up plans and programs to negotiate lower interest rates or reduce the debt you owe. Debt elimination companies, on the other hand, claim to be able to get you out of credit card debt by taking advantage of legal loop holes within your credit card contract and the entire process of getting credit . Their claims can be downright confusing and much of their argument rests on the concept that the Federal Reserve is actually lending your own money. Other credit card elimination services maintain that they can get the case ruled in a consumer’s favor in an arbitration court because the whole premise of a mandatory arbitration clause is bogus from a legal standpoint.
After waiting long enough for payment and never receiving it, eventually the unsecured creditors are pursuing legal action against the people enrolled in this type of service to collect the full balance, and needless to say, judges are ruling in the favor of the credit card companies, junk debt buyers and collection agencies. In the end, the consumer is left with a damaged credit score and a larger account balance due to interest charges and late fees by enrolling in a program that had no chance of success.
Best Tips & Strategies for Credit Elimination
Tip 1: Seek debt help. There are reputable services that can help you reduce your debt or restructure it so that paying it back is much simpler and affordable. The two most popular types of debt consolidation programs are debt negotiation, also known as debt reduction or credit card settlement , and consumer credit & debt counseling. Although the underlying premise is the same (pay off your personal debt with adjusted terms), they are very different in terms of how they actually go about accomplishing this task. Credit counselors will try to lower your interest rates and reorganize your debt through a consolidation payment plan , whereas debt reduction plans involve negotiating to reduce your principal balance, which is only appropriate for debtors experiencing a financial hardship since you need to be behind on your bills in order for a settlement to be reached. To get more information about these type of debt plans please fill out a form for a free, professional consultation.
Tip 2: Eliminate your credit cards . Cut them, close the account, and never use them until your debts are satisfied. Ultimately, being debt free is not possible when you continue to use your available credit lines. Paying off your debt takes a tremendous amount of self-discipline in order to be successful.
Tip 3: Slash your spending. Finding ways to cut expenses can be difficult or easy depending on your level of frugality to begin with. Look for good deals (but don’t buy just because it), spend less on rent, use your heat less, whatever you can do to get more cash.
Tip 4: Increase your income. Easier said than done? Perhaps not. Check out Careerbuilder.com or Monster.com to see if there is a better paying job in your industry. More income = more money to eliminate your credit card debt.
Still not sure that you can get out of debt without some help? Let PayingPaul.Com refer you to a leading provider of debt consolidation on the web. Simply fill out a form and a representative can contact you to explain what your debt options are. Start today!