It is easy to accumulate a huge amount of debt in no time but extremely difficult eliminate your debts and get back the controls of your financial life. Too much debt can be overwhelming and can make you desperate enough to take extreme steps. Many debtors are tempted to file for bankruptcy even though they know the long term effects they will have to deal with. This is not a time to panic but to methodically work your way out of...more
With the new age debt laws, having huge unconsolidated unsecured debts does not worry people as much as it used to. People no longer just look towards bankruptcy as the only option to support their ailing finances. They are much more aware of options like consolidation, settlement and credit counseling However a certain portion of ridden people still remain skeptical about the uses of debt settlement deals. They have certain...more
Huge unsecured debt makes it impossible for the debtor to lead a normal life with the creditors after their money and finances going to dumps. In this case bankruptcy is not the only possible option with the new age options like debt settlement. Debt consolidation, credit counseling and lower down payments. Each option carries with itself its set of good and bad points. However all of them can reduce your debt greatly or make it easier to pay off.Debt consolidation is basically the process to consolidate your many small debts into a single one with lower interest rates. This decreases the interest rates and makes monthly payments more easily payable. Then comes the option of debt settlement in which you can hire a debt settlement company who bring your financial situation back on track and try to negotiate your debt amount with your creditors and can get you reductions upto 50% on it.Credit counseling is another good option with a third party party overseeing the deal between the debtor and the creditor with reduction's in interest rates. Although the third party works for the creditors officially so it does not make for the best of deals.Lower down payments just...more
With the current economic scenario everyone is desperately finding ways to eliminate their debts. Credit card debt negotiation has become one of the most popular systems for attaining debt freedom. Many people have lost jobs or have had their salaries reduced during the recent economic slowdown. For them it is difficult to meet...more
Credit card debts when get out of hand can make you miserable. This is a debt which gets heavier with time. It is easy to plan ways of getting rid of your debts but difficult to execute them. There are a few steps that you can follow in order to pay off your debts as quickly as possible.1. List out all your debts: You will have to...more
One of the most popular options for coming out of debt is debt settlement. The unsecured debts charge higher interest rates than the other loans. The biggest problem is the credit card debts which can easily get out of hand as it is generally unplanned expenditure. One should try to clear their debts as soon as possible. Debt settlement being the fastest way out of debt, a debtor has to remember that the forgiven amount is taxable.During a debt settlement if the amount that has been forgiven is more than six hundred dollars then the creditor sends the report to the IRS. In case the settlement amount is less than six hundred dollars the debtor himself has to report it with the IRS. In this way the government collects all data about any debt reduction that a person has got from his creditors. The reduced amount is taken as taxable income by the IRS.With the help of settlement companies these taxes can be avoided. People who were on the verge of filing for bankruptcy when they opted for debt settlement are exempted from this tax. Hence the details o insolvency has to be informed to the IRS. Also, this detail should be documented at the time of settlement. If your case...more
The market is slow in recovering from its recent economic crash. Most of us are still deeply into debt. For those having huge amount of debt in unsecured debts can take help of debt settlement to clear them off. Creditors offer debt...more
When any financial institution settles a portion of your debt, then they issue a 1099-C. This 1099-C reflects the amount that has been settled. The IRS will consider the amount mentioned in 1099-C as taxable. This tax can only be...more
For a long time the best way of getting out of debt had been bankruptcy. However, people have learnt that bankruptcy is not the best option for those in financial trouble. This is not only because of the effect it has on one's credit...more
A debt settlement attorney is an expert in negotiating with creditors and financial institutions on various types of loans. They also give tax related advice to their clients who are trying to get out of debt. A lot of people have come...more
People who have faced unemployment due to the recent economic recession find it hard to pay off their debts just like those who are facing financial difficulty due to other reasons. Debt settlement is the most common sought of relief...more
The recent trend shows that more and more people are opting for debt relief options in order to come out of their debts. People are becoming aware of the fact that paying only the minimum on your account does not help in bringing down...more