Myth: Settling Debt Does the Most Harm to Your Credit
Credit scores are marketed as the end all and be all of your financial well-being. Consumers are led to believe that great credit will open doors, granting both power and happiness. Lenders create fear that if you use any debt relief program, especially debt settlement, that it will do irreparable ...
Myth: Negotiating Debt Restarts the Litigation Clock Under the Statute of Limitations
The statute of limitations can be confusing because the rules are different for every state, and it is often hard to determine what rules apply to which accounts. However, in every case, negotiating and settling a debt for less than you owe will never restart the statute of limitations. Here ...
Myth:Debt Settlement Companies Will Steal Your Money
Successful participation in a debt settlement program requires you to redirect a portion of your regular monthly debt payments into a savings account. The more consistently you make contributions, the faster you become debt-free. The savings balance's growth allows you to make a lump-sum payoff or a series of monthly ...
Myth: Debt Settlement Companies Are Unreliable
According to the American Fair Credit Council, In 2018, the debt relief industry contributed $4.9 billion to the economy. Debt settlement companies also helped consumers settle over 900,000 accounts to achieve a total savings of $1.6 billion in that same year. Settling debt can be a reliable alternative to bankruptcy, ...
Myth: Debt Settlement Companies Are All the Same
In 2010, Congress increased industry oversight by amending the Telemarketing Sales Rule (TSR), giving new guidance regarding contact and communication with consumers along with acceptable fee structures. In November 2020, the Consumer Financial Protection Bureau (CFPB) issued a final ruling that added additional clarification on debt collector communications and electronic ...
Stop Focusing on Your Credit Score if You Are Drowning in Debt
Everywhere you turn these days, someone is offering to give you a free copy of your credit report and credit score. Recently, credit scores started showing up in many credit card statements, further adding to the fixation Americans have with their credit score. We have become a nation obsessed with ...
Why a Credit Counseling Program Takes Longer to Complete and Costs More Than Debt Settlement
You pay your ‘regular’ bills on time. But you can only afford to make the minimum monthly payments on your credit card accounts. In most cases, making only the minimum payment each month and continuing to make purchases causes your balances to increase each month. These outstanding balances build up ...
Stop, Drop, and Budget! Where Does All Your Money Go So Fast?
The budget process often creates resistance. It might feel like a burden or appear to be too hard or overwhelming to follow. In some cases, you may not want to change your spending habits, which can become a barrier to financial success. The reason for a budget is to give ...
Why it Takes Longer to Restore Your Credit After Bankruptcy Than Debt Settlement
Debt has you overwhelmed. Between large credit card balances and only making the minimum monthly payments, you realize it will take nearly three decades to get rid of your credit card debt. And, what about your credit score? Here’s some facts that may surprise you as you make the final ...
Top Budgeting Tips that Make a Big Impact on Your Wallet
The process of creating a budget is really a simple concept. You list your monthly expenses and then do not spend any more than the allotted amount in each category. Implementation of your budget, on the other hand, is more complicated. It’s that whole, ‘working the budget’ that’s challenging. There ...
