Debt Service Uk

Posts Tagged ‘Debt Free’

(Note:  this is not to be considered legal advice, and it is dealing with the hypothetical “average” elderly andor disabled person.  Each case is unique and to determine the legal ramifications of your individual scenario you should consult an attorney.)

Debt settlement, also known as debt negotiation or debt reduction, is a relatively new way for dealing with your debt problems.  In a debt settlement program, by negotiating with a creditor, a client can reduce their debt by as much as 50 percent and be debt free in as little as 12 months.  In order to accomplish these savings, however, a client must voluntarily stop paying their creditors.  By doing this, a creditor is forced to confront the following question:  How can I collect the most money from this past due debtor with the least amount of effort and the least total expense to my company?  Typically the answer to this question in the minds’ of creditors is accepting a lump sum settlement for less than the full balance owed.

Although the vast majority of cases work out according to this framework, as anyone who has ever read a debt negotiation contract can tell you—it’s impossible for a debt settlement company to guarantee that a client won’t be the target of any legal action by their creditors.  After all, creditors are always reserved the right to sue debtors to collect a past due account, regardless of whether the consumer is taking any action to resolve the outstanding debt.

That being said, thanks to highly favorable state and federal debtor laws, the elderly and the disabled are very difficult to collect a past due debt from relative to the average American consumer, even if a creditor has sued them in court and won a judgment.

Consider the following situation.  Let’s say a creditor has just sued you and won a judgment in court.  They now have to execute the judgment in order to actually start collecting the debt.  One way a creditor executes a judgment is through wage garnishment.  When a creditor garnishes someone’s wages, they automatically (and legally) withdraw a certain percentage of that person’s wages every paycheck (25% after taxes in most states) until the debt is paid off.  Fortunately, creditors cannot garnish Social Security, disability, and most pensions (unless the “creditor” is the mother of your children and she’s collecting alimony).  This being the case, the creditor would probably look for another way to collect the debt.  Levying a bank account is another common method for executing a judgment.  Again the elderly and the disabled are protected, presuming the bank account’s funds are made up of the deposits from social security, pension, andor disability benefits.

A creditor is always reserved the right to pursue legal action to collect a past due debt, even if the debtor is elderly or disabled.  However, it only makes sense that they’d prefer to accept a settlement for less than the balance, especially if the debtor has no assets or lives in a debtor-friendly state like Texas, Iowa, Florida, Arkansas, Massachusetts, or Oklahoma.

Owe money to the bank, bills getting way too high to handle, borrowed off friends who now want to repaid? Any of this sound familiar? If so, you are wrapped in a debt chain, and this article will give you some pointers as to break the chain and become debt-free. All it takes is a firm commitment to change your habits.

Debt is defined as something, normally monetary, that we owe somebody else. It doesn’t always have to mean money, but in this article, we will focus on financial debt.

One of the best ways to reduce financial debt is to consolidate bills. If you have two or three cell phones all on different plans, put them all onto the one plan and take the savings. Pick the best plan for your needs and put everything under it.

Same thing for TV - if you’re not using all those extra channels you are paying for - why are you paying for them? Don’t take the car out for a drive to the corner store and back, it burns more gas to go 1 mile than it does to go 5 because of the start and stop process in the engine. With gas prices so high now, it pays you money to be more efficient and sensible.

Shop for groceries and buy in bulk, you’ll save more money in the long run because you will be able to make your dollar stretch further. When you go out for entertainment, set a realistic budget and then stick to it. You’ll end up enjoying yourself more, knowing that what you allocated for spending is getting you some entertainment, and you’ll stop worrying about how to pay for this or that and will get some stress-free relaxation - which is what entertainment is there for.

If you find yourself mired in store credit debt, owing thousands to store charge cards, there is always hope. Most stores want to be paid off in full - that’s normal, but they will also be willing to compromise if you are honest with them. If you call up the credit controller and tell them you can only afford x amount very month, and then you stick to it- they are quite often willing to drop the interest or any penalty rates because, in the end, if you pay them, that’s what they want to have happen - not force you to go into bankruptcy or to default on the cards.

The same thing applies to credit cards - although they want you to pay them back, again - they will work with you if you are in financial hardship and are honest with them. Keep to realistic regular payments and tell them if you see financial problems ahead. It will cost them much more to pursue legal action against you or force bankruptcy on you, and if you pay regularly, and make the minimum, you will be out of debt as long as you don’t run the card up again once it’s gone down some.