Monthly Archives: January 2016

Why Should You Hire Debt Collection Experts

4gSmall businesses require an appropriate credit control process given the constrained resources that they have. This is to guarantee that cash flow is enhanced, which thusly helps them survive. Bad debts of a business can adversely affect its operations. The business reinvests in labor, operations, production, supplies and different resources utilizing the little revenue it gets. Business owners face difficulty when their clients default on their payments. Besides, when the business will designate labor and time to debt recovery, its resources will be wastes as they could have been put into operations and other productive parts of the business.

When the business is developing, it will be better to have a debt collection firm for determining bad debt issues. This is because these professional have the appropriate labor and assets (and even equipments) to focus on the collection of your business. Meanwhile, you can boost the utilization of your own assets to proceed with your business operations and productions. It spares you time and cash on as the debt collection company can help for nominal charges, wiping out the need to pay separate individuals who will simply see on collecting debt from your clients.

The method of debt collection from clients varies from business to business. Some would hold up between 90 to around 120 days while others keep waiting for a year. Do remember that the longer you wait, the lower will be the chances of debt collection.

A business may encounter such clients who will not respond to the first notice. Often these clients do not react as they mostly do not have the ability to pay or they do not have any intention of paying. There will additionally be times when clients simply don’t respond as they just wish to pay whenever it is convenient for them. An alternate issue of businesses is that the clients change their addresses without prior notice. It simply becomes difficult for businesses to find such people.

Then there will be clients who complain a lot. They are quite difficult to manage and more often, they even deplete assets and time. There are additionally clients who just deny obligation regarding a request they have made. These things indicate the more losses of business.

What Are Your Options For Bad Credit Debt Loans

4fThose ready to get out of debt or to make their budget more manageable have probably considered a debt loan. This basically takes your current loans and combines them into one more manageable loan. While it may not necessarily make your payments lower each month, at least your money is going to one place and may have a clearer end date rather than various debts that never seem to go away.

It’s a great way for those with bad credit to help improve their finances and get their budget back on track. This is a great way to get your debts paid off and work towards becoming debt-free. So what are the options for bad credit debt loans?

How to Qualify

Most people with bad credit fear they will not be approved for future loans. When the car breaks down and it’s time to get a new loan or your family is expanding and you are in need of a bigger home, it’s stressful to worry about getting approved for that loan.

The same applies for those that simply want to get their debt under control and need a debt loan to do so. Sometimes even helping yourself can be difficult to achieve because you are trying to get approved for another loan with your bad credit situation. Here is what you need to know.

Debt Loan Companies vs. Banks

While most people go through a bank to get a loan, you can always go through a debt company. Banks and credit unions typically have stricter criteria when someone applies for a loan and usually only approve higher credit applicants.

If you are turned down by the bank, look into a debt company. They are set up to help those with worse credit get the loan they need. Do your research as there are many companies out there that are not trustworthy.

Make sure you are working with a legitimate company and you do not fall for a scam. You don’t want a company that doesn’t review your financial situation, offers you government money to erase your debt or tries to charge you up-front fees.

Those that get approved for their loans should beware, typically bad credit debt loans comes with higher interest. While this means it may take longer to pay off the loan and the loan may cost you more in the end, at least you are getting out of debt and getting approved for something. While the loan will have a longer term, you can always work to pay it off sooner if your income increases in the future.

Improve your Credit Score

One thing to keep in mind, you can work on improving your credit score before applying for a loan. This means regularly monitoring your score to make sure its improving and not taking any hits. Making all your payments on time will help your score. Another way to improve your score is to pay down debt including any past due debts and credit cards. Avoid opening any new accounts during this time.

Other Options

If you can’t find a good debt loan, try a debt management plan or a debt settlement company. Debt management plans are offered by debt relief services designed to help you pay down your debt within five years. You may get a lower interest rate through them than you’re currently paying to your existing creditors.

Debt settlement means you’ll make monthly payments to a debt settlement provider. The payments go to an escrow account, while the provider works with your creditors for a lower settlement on the remaining outstanding debt you owe.

Once an agreement is made, they’ll take the funds you’ve deposited and pay the creditors. This is a good step to avoid bankruptcy, for those not able to afford their current monthly payments, and looking to get out of debt.

Rather than filing for a bankruptcy, which will be on your record for up to 10 years, there are ways to better manage your debt. Try a debt loan through a bank or other lender, debt settlement or a debt management plan.


Vital Information Part IX Debt Agreement and Short Term Bad Credit Loans in Australia

gWhen you are in a financial crisis and want money for an emergency short term bad credit loans are the best to fall on in Australia. These are nothing but unsecured loans obtained mainly to pay for unexpected expenses, emergencies and when there is a shortfall of cash flow. These personal loans are designed typically for quick approval and repayment. The repayment conditions are structured affordably and the term ranges from few months to a year.

Terms and Conditions

Short term bad credit loans in Australia can be obtained by applying online. However, the lenders will offer the finance only if you are eligible for it. A few basic requirements have to be met in order to be eligible. Firstly, you have to be no less than 18 years old and be an Australian resident. You should be gainfully employed and should possess a local bank account so that the funds can be transferred to it. This is the initial criteria for eligibility. Short term loans can vary from one creditor to the other; typically it can range from small amounts of $500 to about $5000. Clients with bad and good credit history can get the funds. Since, the loan is approved quickly, the process is simple; you only have to submit an online application and receive an instant conditional approval. If it is approved, the necessary identification as well as supporting documents should be submitted. Normally, funds are transferred to your bank account within a day.

Avoiding Bankruptcy

Don’t be worried if you are in debt, but avoid insolvency by opting for Part IX debt agreement contained in the Australia Bankruptcy Act. In order to use this service, find a good debt negotiator who will do everything in his capacity to draw up the legal agreement. It is a legally binding agreement between your creditors and you. By this your creditor will agree to accept an amount over a fixed time period of about 3 to 4 years or agree on full debt settlement. Once it is accepted and signed, you are protected legally from your creditor. Moreover, there is also no accumulation of interest on your unsecured loans. This is considered the ideal alternative to insolvency. It will allow you to handle all your debts consistently and on schedule. In Australia, debt negotiators are competitive and work hard to get the agreement enforced quickly.

Commitments and Advantages of Part IX

Once you have agreed on the terms of the Part IX debt agreement, you will be protected legally. You need not worry about threatening calls from your creditors anymore. You can now start saving money and move on systematically as you are freed from all unsecured debts. However, you should be committed to make regular repayments of any other secured debts.

Although, you will be listed in the Australian Insolvency Index and your credit history is affected for 7 years, you can have peace of mind and be at ease. There are several other benefits of the agreement; all charges and interest on unsecured debts are frozen. You can start anew and the disgrace of bankruptcy is avoided. If you have secured assets and make repayments on this loan, the asset is safe. It benefits the debtor more than the creditor.


Get Out of Debt For Less With Interest-Rate Arbitration

rThe average American family has 10 credit cards and over $15,000 of credit card debt. Nearly half of these households have trouble making the minimum monthly payments, and some are using plastic to cover daily living expenses such as groceries, gasoline, and the morning latte. Late fees and over-the-limit fees are rising, and more and more households are missing one or more payments altogether.

If you are having debt problems, now is the time to stop this destructive cycle and get the help you need from a debt relief program. This article teaches you the principles of bill consolidation, one of the most popular forms of debt reduction.

What is bill consolidation?

Bill consolidation–also known as interest-rate arbitration or credit card consolidation–takes your high-interest loans and credit cards and consolidates them into one, low-interest loan that you can afford. In other words, you’re taking out one loan to pay off many others. You make one monthly payment to a debt consolidator who distributes the funds to your creditors until they are paid in full. Only unsecured debt–credit cards, medical bills, and personal loans–can be consolidated. You cannot consolidate mortgages, rent, utilities, cell phone and cable bills, insurance premiums, car loans, student loans, alimony, child support, taxes, or criminal fines.

There are two kinds of bill consolidation: non-profit and for-profit. Both types work with your creditors to work out modified payment plans. Contrary to the popular notion, non-profit companies charge a nominal fee for their services. If a bill consolidation company is for-profit, you must also pay an upfront service charge of about 15% of your debt’s face value. For example, if the total amount owed to creditors is $15,000, you can expect to pay a fee of around $2,250.

If you are considering bill consolidation, here is what you need to know first:

1. Bill consolidation will not solve your careless spending and savings habits. The only way that you will ever achieve lasting financial freedom is to apply the dynamic laws of financial recovery to your everyday life. These smart-money principles will help you to establish spending and savings habits that are built on solid bedrock. They are discussed in a separate article entitled “The Dynamic Laws of of a Complete Financial Makeover.”

2. You might not qualify for a bill consolidation loan because of delinquent credit history. In such cases, you might want to look into other debt relief options such as debt settlement. Bankruptcy protection, however, must be considered only as a last resort.

3. If your unsecured debt is less than $10,000, bill consolidation is probably a better option than debt settlement. Here is why: Most debt settlement companies require that you have $10,000 or more in unsecured debt to qualify for their services.

4. Because most bill consolidation loans are unsecured, the lender can’t lay claim to your home if you are unable to keep up with the payments. However, late or missed payments will adversely affect your credit score.

5. If a bill consolidation loan is secured and you miss payments, the lender can lay claim to your home or other asset.

6. There is no public record that you have ever consolidated your debts.

7. Bill consolidation should not be confused with debt settlement, another form of debt reduction. With debt settlement, negotiators communicate with creditors on your behalf to settle you debts to reduced and agreed-to amounts. Once you enroll in a debt settlement program, your negotiation team opens a trust account for you. You must deposit up to 50% of your debt’s face value into the account over a period of 24-60 months. This money is used to settle your debts with creditors.

8. As we mentioned above, you can only consolidate unsecured debt such as credit cards or personal loans. You cannot consolidate mortgages, rent, utility bills, cell phone and cable charges, insurance premiums, car and student loans, alimony, child support, taxes, or criminal fines.

9. Bill consolidation could hurt your credit scores over the short term. For example, applying for a bill consolidation loan from a bank or credit union requires a “hard credit check,” which might affect your scores a small amount. More importantly, you must be aware of how a bill consolidation loan might affect your “credit utilization ratio.”

According to “Credit utilization refers to the percent of your available credit that you’re currently using. For example, if the credit limit on all your credit cards combined is $30,000 and you have $15,000 in credit card debt then your credit utilization is at 50%. But if you get a bill consolidation loan and close all your credit card accounts, your total debt will still be $15,000 but your credit utilization will now be 100%, which may hurt your credit score.”

Detweiler adds: Over the long term, “a bill consolidation loan shouldn’t hurt your credit score. You may see a dip temporarily since you have a new account. But if you pay it on time, that should even out. If you close all the credit cards you’ve consolidated you may see your scores drop – though for some that may be safer than running the risk of charging on those cards and getting deeper in debt!”

10. Never let a bill consolidation company pressure you into joining their program.

11. Don’t hire a company that has no interest in your specific financial needs.

12. Before you enroll in a bill consolidation program, review your budget carefully and make sure that you can afford the monthly payments. Don’t be surprised if you have to eliminate certain nonessential expenses.

13. Before you join a bill consolidation program, type in the company’s name followed by the word “complaints” into a search engine. Learn what others have said about the company and whether the firm has ever engaged in any unfair business practices.

14. Find out if the company is a member of the Online Business Bureau as well as their local BBB. Check their ratings with both bureaus and whether any complaints have ever been made about their services.

15. Contact all of your creditors and find out if they are willing to work with a particular company.

16. Never pay a debt consolidator until all of your creditors have approved your modified payment plan.

17. Once you begin to pay the debt consolidator, contact all of your creditors and find out if they are receiving the monthly payments.

18. No matter what, make your monthly payments to the debt consolidator on time.

19. A bill consolidation company cannot represent you in court unless it is also a law firm.

20. A bill consolidation company cannot prevent the foreclosure of your home or the repossession of your car.

Let’s apply bill consolidation to a typical financial situation:

Suppose you have $20,000 of credit card debt with an average APR of 23%. Assuming that you make no additional purchases or cash advances, it will take you 145 months to get out of debt if you only make the minimum monthly payments. You will pay $38,085 in interest and a grand total of $58,085 (principal + interest).

By using bill consolidation, the amount of interest that you will pay is reduced. If you choose a for-profit company, you will also pay an upfront service fee of about 15% of your debt’s face value.

Using the example above, let’s say that you choose a for-profit company to consolidate your $20,000 credit card balance. A consolidator negotiates an average APR of 15% with your creditors and a fixed monthly payment of $402. You must also pay a $3,000 service charge–15% of your debt’s face value–to the consolidation firm.

If you make a fixed monthly payment of $402, it will take you 77 months to become debt free. You will pay $10,823 in interest and a grand total $30,823 (principal + interest).

Let’s compare your total payments by using bill consolidation and by only paying the minimum amount due each month.

Here are your total payments by using bill consolidation:

$20,000 – Original debt

$10,823 – Interest paid

$3,000 – Upfront service fee

$33,823 – Total payments

Here are your total payments by only paying the minimum amount due each month:

$20,000 – Original debt

$38,085 – Interest paid

$58,085 – Total payments

By using bill consolidation, your net savings is $24,262 and you become debt free 68 months sooner than by making the minimum monthly payments.

This article has taught you the principles of bill consolidation, one of the most popular forms of debt relief. Although a bill consolidation program can help you to reduce your debt, it does not teach you how to live fiscally fit. The only way that you will ever achieve lasting financial freedom is to apply the dynamic laws of financial recovery to your everyday life. These smart-money principles will help you to establish spending and savings habits that are built on solid bedrock. They are discussed in a separate article entitled “The Dynamic Laws of a Complete Financial Makeover.”

Gregory DeVictor is a financial consultant and professional writer. He has published over 100 e-books and articles on debt reduction, money management, and financial planning. Gregory is also affiliated with CuraDebt, one of America’s leading debt relief companies. Over the years, he has helped hundreds of consumers to get out of debt and achieve financial freedom.