Welcome to the First Choice Debt Resolution Blog!

Thank you for visiting our Debt Settlement Company where we will go through a Debt Negotiation process to help settle your debt. We have several ways to work with you and your creditors to begin the Debt Settlement process. If you have Unsecured Debt such as Credit Cards, Medical Bills, Private Student Loans, Department Store Credit Cards, and Revolving Credit Lines, then a Debt Settlement Program is right for you. To begin your Debt Settlement Program, call us or simply fill out the form and a Debt Settlement specialist will contact you immediately.

Will Debt Settlement Work for me?

Debt Settlement is not for everyone and should be used as a last resort. Debt Settlement will work if you have substantial debt with creditors. Creditors want their money and they do not care how the get it. Our Debt Settlement program can start to give you peace of mind as we go through the process of Debt Negotiation or Debt Arbitration with a Debt Settlement Letter that works directly with the creditor. By having our company work with your creditors, you will stop receiving the annoying phone calls from the collection agencies.

What can Debt Settlement do for me?

With our Debt Settlement Plan we can start to eliminate collection calls, lower your monthly payments, you can avoid Bankruptcy, you can have one low monthly payment, and we can get you on the road to become debt free.

What is Debt Settlement?

Debt Settlement is a way to lower your monthly payments and to eliminate your Unsecured Credit Debt. The process of Debt Settlement is geared toward your overall Debt Reduction. Debt Settlement is also called Debt Negotiation or Debt Arbitration. The idea behind Debt Settlement is that your creditor will agree to settle your overall balance with us at a drastically reduced amount and then consider the balance settled or paid.

The overall objective of Debt Settlement is for you to avoid Bankruptcy. If you file for Bankruptcy then the creditor will likely lose all money that is owed to them (a very good reason creditors agree to work with Debt Settlement companies). Bankruptcy will also put you in a bad position credit wise for many years, hurting your chances in the future of owning a home, owning or leasing a car and obtaining credit cards, causing an uphill battle when it becomes time to regain trust from creditors. After a Bankruptcy, you will not be without paying extremely high interest rates on credit cards and loans, if you get approved down the road.

Debt Settlement arrangements can help reduce the money that you owe by 25% to 65%. Debt Negotiation can be complete within 6 to 60 months. Call a Debt Settlement debt analyst now for details.

How will Debt Settlement affect me?

With any Debt Settlement process there are some drawbacks that you will need to consider. Your credit report may show that there was a Settlement of Debt with your creditors which can affect your overall FICO scores. At this point, if you are looking for Debt Settlement, your credit score may already be on the verge of becoming lowered due to overwhelming amounts of debt that you cannot get out of without assistance. It is a good idea to speak with a Debt Settlement specialist to see if Debt Settlement is a good choice for you. Not everyone qualifies for every Debt Settlement program. Call now to find out if you qualify before it is too late!

Debt Settlement and Creditors

Most consumers who are seeking Debt Settlement have thought about Bankruptcy. A creditor does not want you to go this route and neither should you. With Debt Settlement, creditors are happy to know that they are going to receive a payment within a reasonable amount of time. By using our Debt Settlement plan, trust is developed between you and your creditor. Although most creditors would rather receive your full payment, at this point, they know this is your last resort and are willing to work with our Debt Settlement Company.

Do it yourself Debt Settlement?

Like any service or industry it is better to leave the job to the professional who does this day in and day out. Creditors have already been in contact with you and do not want to negotiate the debt that you have acquired with them. Debt Settlement is a process that calls for industry knowledge and the ability to converse with your creditors. If you do chose to do your own Debt Settlement, the process will likely be more costly and take many months or years longer. Our Debt Settlement Company settles large amounts of debt with each creditor, enabling us to get a much better deal at Debt Negotiation time. You can trust our Debt Arbitration Department to take care of your Unsecured Debt.

Should I feel embarrassed about using Debt Settlement as a last resort?

The answer is NO! Most creditors make you feel like you have done something wrong. It is the creditor’s job to do so. The creditor’s main objective is to collect their money PERIOD! They do not understand that situations and circumstances arise causing you to get behind. Hardships make paying bills difficult if not impossible. You could have lost your job, lost a loved one, and the list can go on. Situations happen in our lives that are beyond our control. Creditors are actually happy that they are going to receive payment from our Debt Negotiation Department.

Debt Settlement vs. Credit Counseling

There is a major difference between Debt Settlement & Credit Counseling. Debt Settlement helps settle your debt with creditors by reducing the amount that you will pay them back. Debt Settlement also reduces the amount of time it will take to become debt free.

Credit Counseling Services works for the creditor. Simply put, Credit Counseling may only reduce your payment by a small amount and keep you paying on your debt for many years longer than if you were to be enrolled in a Debt Settlement program. Did you know that by paying minimum payments on a credit card you can be paying for over 50 years before the balance is paid? Call us now and one of our Debt Settlement debt analysts can calculate how long you will be paying on your credit accounts. As always, there is no obligation.

What Type of Debt can be settled?

The Debt Settlement process can be used to pay off Unsecured Debt. Unsecured Debt is Credit Card Debt, Department store Credit Cards, Gas Cards, and Medical Bills in Collection, Revolving Credit Lines, Unsecured Lines of Credit, Personal Loans and some other loans that have made it into collections. Call now to find out if your debt qualifies for elimination through one of our Debt Settlement programs.

Debt Settlement can not be used for…

Mortgages, Auto Loans, Student Loans, or any type of government loan cannot be negotiated by a Debt Settlement Company. In most cases the creditor can repossess, or foreclose on a home or auto loan. Private Student Loans may be an exception. Speak to a debt settlement specialist now for details.

Will my wages be garnished by my creditors?

If you listen to some Debt Collectors, you might be fooled into thinking that they will seize your very next paycheck unless you make a payment right then and there. The threat of losing part of one’s wages to a garnishment action is truly frightening to someone already struggling financially. This is mainly an intimidation tactic used by collectors to scare people into committing to a payment schedule whether or not they have the funds available. Actual garnishment actions are relatively rare, and do not happen without advance warning. First, a creditor must bring a lawsuit, obtain a judgment, and then take additional steps to obtain authorization for the garnishment. No one can take your paycheck without court approval, and you must be given notice of such court action through formal documentation. So don’t be fooled by one of the oldest collection tricks in the book.

Is Debt Settlement Legal?

Debt Settlement has been around for decades. Debt Settlement has only become more relevant since the 1980’s when the banks became more accessible to lend out more money and when there has been a recession or economic collapse. Debt Settlement is looked at in a positive light. This gives your creditors a good impression and shows that you are making strides to pay your debts.

Who we work for?

Many people think that when they decide to hire a Debt Settlement Company that the Debt Settlement Company works with the creditors and not the consumer. This assumption is not correct. We work for you. You are our customer, the creditor is not. First Choice Debt Resolution, LLC is the Debt Settlement Company that will work directly with you to put you on the right path to become Debt Free. Fill out the form now for a free, no obligation analysis of your debt. One of our Debt Settlement debt analysts will call you immediately.

To learn more about our debt settlement services, click here.

Facts About Debt Settlement Letters

Here at www.1debtres.com we handle your Debt Settlement and put you on the path to becoming Debt Free.  Please Vistit our website of call 1.866.957.0213.

The process of debt settlement includes a wide array of debt settlement letters as well as extensive knowledge of the credit industry and debt settlement negotiation.  Through the process of settlement, you are better off if you have a professional working on your behalf.  Some people choose to write their own debt settlement letter proposals and because of lack of knowledge and skill, they miss out on the best results of debt settlement negotiation.

               The Types of Debt Settlement Letters Most Commonly Used

When you decide to work with a debt settlement professional, they will send one of the first letters to your creditors that will use legal jargon that basically tells them to cease and desist.  When receiving this debt settlement letter, if prepared properly with the right language and wording, the slew of collection calls that you are probably currently receiving will stop.  This is nice because you already know that you are deeply in debt and you probably know if your payments are past due.  You really don’t need collection agents calling you constantly to remind you.  All that the collection calls do is increase the stress of the situation that you are in and they accomplish nothing.

Next, debt settlement negotiation begins.  Debt settlement letters are used in the process to propose settlements, make offers or counteroffers.  It is imperative that knowledge of credit industry, legal language and your rights as a debtor is used in the preparation of such letters. 

If you do have some money saved, the debt settlement company may strive to get a lump sum settlement.  Usually, if you can settle in lump sums, you will get a better deal.  However, if you don’t have money stuck back, which is very common, they will try to get you a reasonable payment plan as part of the settlement.    

After the debt settlement negotiations are over, you should get a debt settlement letter that confirms either the lump sum settlement or the payment plan settlement.  If you agree with the settlement and you are able to make the payments agreed upon, a remittance letter will be prepared to acknowledge your agreement with the terms reflected in the lump sum settlement or payment plan settlement. 

Once you agree, you are legally bound to the terms reflected in the final debt settlement letter.  It is very important that you make the agreed payments regularly and on time.  You don’t want to default on the agreement.  It is highly recommended that once your debt is settled with an agreeable payment plan, that you authorize automatic payments.  That is the best way to stay on track and to make sure that your payments are received timely and in accordance with the agreement that is reflected in final debt settlement letters. 

Can’t I write my own debt settlement letters and obtain a settlement?

This is a commonly asked question of debtors.  Of course, you can give it your best shot at debt settlement negotiation.  However, the process is difficult if you are not in tune with the way that the credit industry works and the wide array of laws involved in relationships between creditors and debtors.

In most cases, debtors are inclined to take the first offer that a creditor makes.  If they don’t, they may sent a counteroffer that compromises their chance for settlement, and if they do they may end up paying much more than they would if they had a debt settlement company prepare their debt settlement letters in the engagement of debt settlement negotiation.

When you owe someone money believe it or not, the creditor has the upper hand.  A lot of debtors hear of their “rights” and totally misinterpret them.  They are much more likely to threaten the creditor, rather than negotiating with them.  Creditors generally do not deal well with debtors who are insistent, threatening or inflexible.  If you attempt to negotiate without using a professional, you are likely to stop debt settlement negotiation in its tracks.  Debt settlement letters that are not prepared properly and do not use the appropriate legal terms can actually work against you.

Also, it is common for debtors to make an agreement that they cannot live up to.  Doing so can get you a worse situation than you were in to begin with.  By using a professional debt settlement company, you are more likely to pay less in terms of the overall balance, late fees and over limit fees.  They can usually negotiate a lower interest rate as well. 

 What will it cost me to hire a debt settlement professional?

Honestly, the cost of debt settlement negotiation depends on your individual circumstances.  It may vary based the amount of debt you owe and the portion of the settlement, the number of creditors that they will be dealing with, and the number of debt settlement letters and other efforts that they have to put into the process. 

It may also vary by the type of settlement that is negotiated.  For instance, for a lump sum settlement, the fee is usually based on the amount of debt that is written off.  If you obtain a payment plan settlement, the debt settlement company may handle each payment resulting a monthly fee.  At any rate, the fees that you pay to a debt settlement company are usually worth it when compared to the amount of money that you will save due to the debt settlement negotiati

Know Where You Stand

If you are deep in debt, you are probably overwhelmed.  You are probably contemplating bankruptcy, credit counseling and debt settlement and trying to make the right decision.  By talking to a debt settlement professional, you will know where you stand.  They can advise you whether or not your debt qualifies for debt settlement negotiation and if debt settlement letters will benefit you or not.  They can also give you an estimate on how much the process of debt settlement negotiation will cost you and some insight into the terms of their services. 

 

 

Is Unsecured Debt Haunting You?

Unsecured debt, especially unsecured credit card debt, is something that you can be somewhat relieved of.  Honestly, you don’t have to tolerate the endless calls from creditors once you get behind on your payments and you don’t have to sell your home or car to make it possible to survive.  Debt settlement is totally possible if you have a knowledgeable representative from a debt settlement company working for you. 

The Reality of “Drowning in Debt”

All credit card companies, including Chase, Citi, Discover and Amex, are overly willing to issue just about anyone a Visa, MasterCard or other credit card when they have good credit.  With disregard to the amount of available credit and the human tendency to use it, this often leads a person to being over-extended in unsecured credit card debt. 

Being over-extended means that your resources for repaying the debt (and living expenses, of course), don’t quite meet the requirement for making even the minimum payments that are required by the credit agreement.

This leads to missed or late payments, increased interest rates due to default clauses, a decreased credit score, and a long tunnel with little light at the end.  The stress is unreal and never ending which could also cause health issues – and nothing is more important than your health. 

When you get to the point of being overextended, the creditors seem to be more than willing to negotiate the unsecured debt through a process called debt settlement.  The process will lower your overall debt and greatly decrease the anxiety that you face day after day. 

                                                                   Frequently Asked Questions

 

What is debt settlement?

Debt settlement is the process of negotiating the unsecured debt owed with the creditor and lowering the overall amount to be paid before the debt is to be considered “paid in full”.  It basically is an agreement that give the borrower the possibly of lowering their unsecured debt in exchange for regular payments.  Failing to make payments, in many cases, can void the agreement.  So, if you do agree to lowered unsecured debt, be sure to make your negotiated payments on time.  

Why would creditors be open to negotiating?

If you are overextended, there is always the possibly that you might file bankruptcy.  For creditors that offer unsecured debt, handling a bankruptcy can be expensive and chances are, that since the debt is unsecured, that they will lose the possibly of collecting anything. 

Companies like Chase, Citi, Discover, and Amex are well aware of the risks that they face in issuing unsecured debt through MasterCard, Visa or other credit cards.  Negotiations are a way that they can minimize their risks.

Can all of my debt be settled in the process? 

No.  Only unsecured debt is eligible for debt settlement.  There are also some forms of unsecured debt that don’t quality for settlement.  For instance, student loans and tax liens.  Other loans that are secured, like your mortgage and auto loans, can’t be settled.  They are secured by either your home or your vehicle, so the creditor does have the right to foreclose or repossess and get their money out of the sale of the asset.  Most forms of unsecured debt, especially unsecured credit card debt, can be included in the settlement process.       

 If I settle unsecured debt, will it affect my credit score?

Sadly to say, yes, it will.  But, the effect is not nearly as devastating as a bankruptcy would be and the strain is much less than trying to pay “over your head” unsecured debt on time.  Late or missed payments also lower your credit score. 

For most people, debt settlement is a viable option.  The total amount owed will be lowered along with the demands that you face every month.

Can I engage in debt settlement myself?

You can, but it is highly discouraged.  It is best to be represented by a professional in debt settlement.  They know all of the ins and outs of the negotiation process and can ensure that you get the best deal possible.

Don’t debt settlement companies charge a fee for negotiating?

Yes, they do.  The company represents you and negotiates your unsecured debt with the creditors.  This is a service that they offer at a reasonable fee.  Considering that they do this all time, and that the creditors know them and the knowledge that they possess, your chances of getting a better settlement is greatly increased providing much relief for you. 

 Why is debt settlement better than credit counseling or bankruptcy? 

Companies that engage in settling unsecured debt actually work for you while credit counselors usually work in agreement with the creditor.  Credit counseling may provide some relief to you, the debtor, but in most cases you don’t get the best deal possible.  They are kind of the “go between” between the creditor and the debtor. 

While you can get total relief from bankruptcy, you may end up losing some of your assets and the bankruptcy will stay on your credit report for at least seven years.  It can also be a hindrance when applying for jobs or applying for credit in the future.  Through debt settlement of unsecured debt, you stand a better chance of lowering your debt without severe long-term effects. 

Don’t live your life, working day after day, for the benefit of Chase, Citi, Discover, or Amex.  They make enough money through the issuance of credit cards, MasterCard and Visa.  Debt settlement is a viable option to lower your unsecured debt and give you the opportunity to live up to your responsibilities and to fulfill your dreams. 

Visit www.1debtres.com for a Free Debt Stress Test or Call 1.866.975.0213

Alternatives to Bankruptcy Chapter 7 & Chapter 13

Use our Debt Settlement Process as a Bankruptcy Alternative for all of your Credit Card Debt.

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First Choice Debt Resolution is devoted to helping Americans avoid Bankruptcy and stop Collection Calls. Our Debt Settlement Process helps consumers lessen the financial burden and become Debt Free by using Debt Negotiators trained by the International Association of Professional Debt Arbitrators. Typically, clients become free of credit card debt within 36 months and can save up to 65 percent of their original balances. Feel confident with a company who complies with the United States Organization for Bankruptcy Alternatives.

First Choice Debt Resolution strives to be number one in compliance and in customer satisfaction!!! Please take some time to navigate through our website which we developed to help you understand how you can become Debt Free.

Debtors should be aware that there are several alternatives to chapter 7 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor may seek an adjustment of debts, either by reducing the debt or by extending the time for repayment, or may seek a more comprehensive reorganization. Sole proprietorships may also be eligible for relief under chapter 13 of the Bankruptcy Code.
In addition, individual debtors who have regular income may seek an adjustment of debts under chapter 13 of the Bankruptcy Code. A particular advantage of chapter 13 is that it provides individual debtors with an opportunity to save their homes from foreclosure by allowing them to “catch up” past due payments through a payment plan. Moreover, the court may dismiss a chapter 7 case filed by an individual whose debts are primarily consumer rather than business debts if the court finds that the granting of relief would be an abuse of chapter 7. 11 U.S.C. § 707(b).

If the debtor’s “current monthly income”(1) is more than the state median, the Bankruptcy Code requires application of a “means test” to determine whether the chapter 7 filing is presumptively abusive. Abuse is presumed if the debtor’s aggregate current monthly income over 5 years, net of certain statutorily allowed expenses, is more than (i) $10,000, or (ii) 25% of the debtor’s nonpriority unsecured debt, as long as that amount is at least $6,000. (2) The debtor may rebut a presumption of abuse only by a showing of special circumstances that justify additional expenses or adjustments of current monthly income. Unless the debtor overcomes the presumption of abuse, the case will generally be converted to chapter 13 (with the debtor’s consent) or will be dismissed. 11 U.S.C. § 707(b)(1).

Debtors should also be aware that out-of-court agreements with creditors or debt settlement services may provide an alternative to a bankruptcy filing.

What can Bankruptcy do to my Credit?

Both the Bankruptcy Code and the Fair Credit Reporting Act (which regulates what a consumer reporting agency may include in your credit report) are Federal law, so the same rules apply to all states.

A consumer credit report may include information on a Chapter 7 and Chapter 13 bankruptcy for 10 years from the commencement of the case. We have been advised that at least one major consumer credit reporting agency removes information about Chapter 13 after only 7 years although it is not legally required to do so.

Most other credit information may be reported for 7 years, except for civil suits, civil judgments, and arrest records can be reported for at least seven years, but may be reported longer if the governing statute of limitations is longer. For example, in Arizona, a court judgment is effective for 5 years. However, it may be renewed at the end of that time for another 5 year period, and again after that period. As a result, a renewed civil judgment could be reported for as long as it is effective.

Bankruptcy is on the Rise.

Total bankruptcy filings in the United States increased 31 percent in 2008 over calendar year 2007, according to data released today from the Administrative Office of the U.S. Courts (AOUSC). Bankruptcy filings totaled 1,117,771 for the 12-month period ending Dec. 31, 2008, a significant increase over the previous year’s total of 850,912. The 2008 filing total marks the first year since the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) that bankruptcies have surpassed 1 million.

Bankruptcy filings will reach 1.4 million or even more this year, especially if Congress changes the law to permit homeowners to modify home mortgages via chapter 13.

The 1,074,225 consumer filings during the 2008 calendar year represented a 31 percent increase over the 822,590 recorded during the same period in 2007. The 714,389 consumer chapter 7 filings during the 12-month period ending Dec. 31, 2008, comprised 67 percent of the total consumer filings for the 2008 calendar year, up from 61 percent the previous year. The consumer chapter 7 total for 2008 represented a 43 percent increase over the 500,613 consumer chapter 7 filings during 2007.

Top States with Bankruptcy Filings

1. Tennessee  – The total number of bankruptcy filings rose to 42,893, an increase of 18.6 percent compared with 2007. The eastern district (Tri-Cities region) was up 30.8% from last year. Some expert argue the methods use to tabulate the numbers might be some of the cause. To quote, “there’s no clear reason why the state has persistently led the nation in bankruptcy filings…the bulk of those were for Chapter 13, a court filing under which a person’s debts are restructured…Tennesseans repay about $160 million to creditors, out of about $6 billion paid annually in the U.S.”
    
2. Nevada  #2 in the nation. Foreclosures are high, Casinos file for bankruptcy and the State continues to lose people. As a consumer, you can file for bankruptcy in Nevada under either:

   - Chapter 7 (Straight Bankruptcy) to wipe out all debts except those listed and get an immediate fresh start or
   - Chapter 13 (Wage Earner Bankruptcy) to set up a repayment plan to pay back your debts over several years’ time.
    

3. Georgia  The already busy bankruptcy courts in Georgia had even more filings as the mortgage meltdown and job losses sent consumers to the courts looking for relief because of heavy debt loads. Bankruptcies went up 23 percent in the first quarter of 2008, compared to the second quarter of 2007. Georgia is third in the nation for filing bankruptcies, behind Nevada and Tennessee.
    
4. Alabama  For Alabama, for cases filed after February 1,2008, the median income for a single wage earner is $36,192; for a family of two, it is $44,918; for three, $51,103; and for four, $62,015. Add $6,900 for each individual in excess of 4
    
5. Indiana Bankruptcy in Indian has continued to increase every single year. Although the bankruptcy rate has dropped from the following years, we have now seen a steady upward movement in the recent years.
    
6. Michigan  If your monthly income and expenses are more than what is the average for Michigan employee earners you can’t file for chapter 7 bankruptcy. Instead you will be able to apply for chapter 13.

   In the Michigan bankruptcy law chapter 13 allows you to keep all pf your assets and property. You can pay off your creditors using the wages that you have left from your monthly expenses.
    

7. Ohio  Filing for bankruptcy in Ohio does not cancel all of your debts. You may be required to pay the following: Alimony & Child Support, Taxes, Student Loans, Purchases of luxury items within 90 days of filing, Fines owed to federal or Ohio government agencies, Debts accrued as a result of fraudulent activity, Recent Cash Advances
    
8. Kentucky Kentucky Bankruptcy Exemptions This list of exemptions updated January 2009. All law references are to Kentucky Revised Statutes unless otherwise noted.

   Federal bankruptcy exemptions are not available in Kentucky.
   Homestead Real or personal property used as a family residence up to $5,000. Sale proceeds are also exempt. (427.060)
   Insurance- Annuity contract proceeds up to $350 per month (304.14-330)
   Fraternal benefit society benefits; casualty insurance or cooperative life benefits (427.110)
   Group life insurance proceeds. (304.14-320)
    

9. Arkansas Bankruptcy Laws – Arkansas WAGE GARNISHMENT EXEMPTION $500 head of family; $200 if single. Since federal law offers better exemption, it applies

   MAXIMUM INTEREST RATE
   Legal: 6% or 5 points above the federal discount rate
   Judgment: Contract rate or 10% per annum, whichever is greater

   STATUTE OF LIMITATIONS ON ENFORCEMENT

   Open Account (credit card): 3 years
   Written Contract: 5 years
   Sale of Goods: 4 years
   Domestic Judgment: 10 years (judgment is renewable)
   Foreign Judgment: 10 years
    

10. Illinois
    Federal Offsets:
    Debts owed to the federal government may be dischargeable;
    Income taxes may be dischargeable if return has been filed and tax liability is at least 3 years old. Example: Bankruptcy filed July 27, 2002, taxes owed for 1998 are dischargeable if no extensions to file were granted;
    Non tax debts are dischargeable unless they would be nondischargeable on generally applicable grounds, such as fraud or theft.

Do not file for Bankruptcy; we are your Alternative to Bankruptcy. We work with you and for you. With our debt settlement program you will be on the ROAD TO DEBT FREEDOM. Contact one of our Debt Settlement Specialist Today.

Credit Card Debt Can Lead to Bankruptcy?

Credit Card Debt Facts

There is so much information online about credit card debt that sometimes in can be a little overwhelming.  Our credit card debt experts can help answer many of the questions you might have about credit card debt, reducing credit card debt and other debt relief subjects. To help understand this process, we have included some basic credit card debt facts and information on late fees, payment of minimums balance on credit cards and what large credit card debt can result in regard to bankruptcy.   After reading the following credit card debt facts, please contact a First Choice Debt Resolution consultant to learn more and see how our services can possibly help your credit card debt situation.

Credit Card Debt Facts

It is amazing how many Americans are in Credit Card Debt. There are several reasons why we get caught up in this type of debt, and many of them are not our fault.

Credit Card Interest Rates and Minimum Payments

This is a big factor. The interest rates on most credit cards range from 9% to 36%. In the short term, if you make a purchase of $1000.00 on a credit card with a 19% interest rate, and have nothing paid toward the principal balance, you end up owing $1190.00 at the end of the first year. Because interest compounds, you will pay 19% interest on your new balance of $1190.00, which will equal $1416.10 after the second year. Multiply the new balance, again by 19% ($1685.16), and you can see fast your original balance of $1000.00 can grow. Try this for five, ten, twenty plus years, and you can get into some serious debt. This is a very profitable scenario for the credit card company.

Credit Card Late fees

Not only is your interest rate high, but if you are even a day over a payment due-date, the credit card company hits you again. Credit card late fees can range from $10 to $39 or more, depending on the credit card company. A late payment will generally cause an interest rate increase. This negative information is actually shared among your creditors and can cause your other credit card companies to increase their interest rates on your accounts.  Universal Default is the term for a practice in the financial services industry in which a particular lender changes the original terms of a loan to your default terms when that lender is informed that their customer has defaulted with another lender, even though the customer has not defaulted with the first lender. See your Credit Card Company Agreement. With today’s economy, loss of jobs, and other common hardships, it’s no surprise that so many people are “up to their eyeballs in debt!”

Here are some more Credit Card Debt Facts:

• Consumers who use credit cards in fast food restaurants spend up to 50% more than consumers who pay with cash.

• More than 60% of Americans have been 30 days late paying credit card bills this past year.

• The average interest rate on a credit card is 18.9%.

• Last year the credit card industry took in $53 billion in credit card fees. • A typical family today pays about $1,600 annually in credit card interest. Yes, just credit card interest!

• On average, a $1,000 credit card charge will take almost 22 years to pay off.

• Credit card purchases will end up costing 112 percent more than if cash was used

• 2.2 billion Credit cards are currently in use in the United States.

• Today over 34 percent of personal expenditures in this country are made with credit cards and debit cards.

Credit card debt is a significant factor in many bankruptcy cases with nearly 20 billion dollars discharged in chapter 7 cases per year. Cases in which the debtor has at least $50,000 in credit card debt account for nearly one-third of this amount. Credit card debt levels are particularly high among joint filers, high-income debtors, elderly debtors and debtors with no listed medical debts. Credit card debt tends to be lower among low to moderate income debtors, female debtors, debtors under the age of 35 and debtors with very high medical debts.

Here at First Choice Debt Resolution, we want to help you become Debt Free. Our Credit Card Debt Settlement Program will put you on the right track! Simply fill out the form or call our toll free number and a Credit Card Debt Settlement Specialist will help you immediately. 

While tips are a very valuable way to control debt, they are not the solution to your current debt problem. With our Debt Settlement Program we can eliminate your Debt. This is a real solution that will give you peace of mind. We will work together to get you back to a Debt Free lifestyle. To learn more about debt reduction and how First Choice Debt Resolution can help you with your debt, contact us.

The Debt Settlement Process

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Learn about the Debt Settlement Process from the Debt Settlement Experts a First Choice Debt Resolution

What Kind of Debt can be settled?

There are several types of debt that can be settled with negotiation: credit card debt, medical and hospital bill debt, business loan debt, personal loans, utility bills, department store credit cards and generally most debt that is unsecured.

What Is Considered Unsecured Debt?

Unsecured debt is debt that is not secured by property or collateral. The creditor cannot take any personal property if you default on a loan. A creditor does not have the right to grab property to satisfy the debt if you default. The creditor’s only remedy is to sue you and get a judgment. Credit cards are just one example of unsecured debt.

Whether it’s a Visa, MasterCard, local merchant or department store card, most credit debt balances can be negotiated down to a fraction of what is owed. Unsecured signature loans and lines of credit (those not attached to personal property) will also qualify for debt settlement. Debt such as medical bills, automobile repossessions, old utility bills, past due rent and most debt in collections are additional examples of unsecured debt that may qualify for a debt settlement program.

What Type of Debt Can NOT Be Settled?

Most student loans may not be negotiated in a debt settlement program, just as they would not be discharged in a bankruptcy.

Federal and State taxes owed also will not qualify for entry into a debt settlement program. One must seek the help of a tax professional or tax relief agency to resolve this type of debt situation.

Child support and alimony cannot be settled.

Mortgage debt cannot be negotiated in a debt settlement program.

Business debt secured by assets cannot be negotiated in a debt settlement program.

Will Debt Settlement Affect My Credit?

At this point, if you are behind on any of your payments your credit is already being affected. The Debt Settlement process is less damaging to your credit rating than bankruptcy and other debt remedies, especially when employed without a Third Party Assistance (TPA) notation on your credit report. This means that the company that you hire to negotiate with your creditors will not be required to report your program participation to the 3 major credit bureaus, Experian, TransUnion, and Equifax. This is very important. Documentation of that nature will show that you gave up control of your finances and monthly obligations, and will imply that you could not manage your money.

What We Do To Settle Your Debt

Once enrolled in your customized debt settlement plan or program, and the debt settlement process is established, our debt negotiation team can negotiate debt on your behalf. Our Debt Settlement Plan allows you to lower your total monthly payment and pay off debt in a relatively short period of time, when compared to the 40+ years it can take to pay off credit cards by making minimum payments.

Some benefits our clients receive are:

•  Debt Resolution Specialist who will take care of Debt collections

• Debt Settlement Negotiator that works with you to Settle your Debt up to 60%

• We will take care of each Debt to out you on the path of Becoming Debt Free

A debt-free life within 12-36 months

A Few Steps of the Debt Settlement Process

Our Debt Settlement process usually involves a cycle of events that is repeated until all debts are settled. Here, in a nutshell, are a few steps of the debt settlement process:

• Cease and Desist letters and Power of Attorney letters are sent to collectors to stop harassment

• Debtor saves and has full control of money in a debt settlement fund set up by our Customer Care department

• Negotiations take place between our company’s debt negotiation team and the creditors to settle an account in full

• Money is withdrawn from the debt settlement fund to settle the account

• Creditor or collector receives payment and debt is then paid, with no further obligation from debtor

• This series of debt negotiation and payment events continue until debts have been settled or satisfied.

Will My Creditors Settle?

Yes, it is in their best interest to settle. Creditors are willing to settle if they believe that payment in full will never be received or if you have the potential to file for bankruptcy. In these particular situations, your creditor will accept partial payment on money owed. We will be equipped with enough facts and a thorough understanding of your hardship to persuade your creditors that debt settlement is their only payment option left. Typically, creditors will forgive between 40 to 60% or more of the amount owed.

Let’s take the next step together and put you on track to becoming Debt Free. Contact one of our Debt Settlement Specialists TODAY. Please call 1.866.957.0231 or fill out our Contact form.

How to Stop Collection Calls!

1.866.957.0213  www.1debtres.com

At this point if you are receiving calls from your creditors it is fair to say you are behind in your payments and your either looking into bankruptcy or Debt Settlement. 

With our Debt Settlement Program we work with you and go directly to the creditors to stop the collection calls from continuing. 

 If you do not go through a Debt Settlement Program with us then you’re hung out to dry.  Debt collectors can be ruthless when it comes to getting the money they are owed. Their phone calls can start early in the morning and continue through nine o’clock at night. They can call your home and your place of business. These debt collection calls can cause massive amounts of stress and annoyance.

The Debt Collectors will not stop until they get a response from you.  In some cases you might have to result in changing or disconnecting your phone number to stop debt collection calls.

If you want to put a band aid on this situation before going through a Debt Settlement Program then you will have to jump through some hula hoops.

Letters to a Debt Collection Agency.

It is possible, however, to stop these debt collection calls through the mail. Under the federal debt collection laws, any debtor can request that the debt collector contact them through the mail only. However, this request must be in WRITING.

When you send the cease and desist letter to the debt collector, send it via certified mail with return receipt requested. This will provide proof that the letter was sent and received. If the debt collector communicates with you beyond the single instance allowed by law, this evidence will allow you to seek punitive action against the debt collector.

The Fair Debt Collection Practices Act does not apply to original creditors, like a credit card company; it only applies to debt collection agencies and attorneys collecting debt.  Therefore, do not quote the FDCPA to get original creditors to stop calling.  Instead, quote state law which governs original creditors but usually has similar provisions to the federal legislation

Why you are receiving calls from a Collection Agency.

Why are you being contacted by a collection agency? It usually means that a creditor has not received payment from you for several months. They have negotiated with another company or are using an in-house affiliate called a debt collector to attempt to get you to pay. Third party collectors often purchase your debt for less than you owe, and your debt is now owned by the collector. A collector may also work for the creditor in return for a fee or a percentage of any money collected. In-house collectors that are affiliated with the original creditor work on behalf of the company directly. Because the creditor has taken a loss on your account or because you are late with making payments, this negative information may show up on your credit report.

Can I receive Collection Agency calls at my Job?

Yes and No.  A debt collector may contact anyone other than you, but only to find out where you live or your telephone number. This includes your employer, who is treated like any other third-party contact under the FDCPA. Unfortunately, the FDCPA creates no specific restrictions on contacts with an employer. Although not required to do so, a collection agency should contact your boss only as a last resort.

The FDCPA says a collector cannot call you at work if your employer does not allow you to receive such calls or if you have asked (preferably in writing) that they not call you there. If you are first called at home, make sure to tell the collection agency that it cannot call you at work if that is your wish. Follow up with a written request.

Keep detailed notes about each violation of this request, making sure that both you and any witnesses to the contact will be able to testify at a much later time if you decide to take legal action against the collector. One ideal way is to have witnesses write a statement specifying the date, time, and details of the contact.

You have read a brief overview of how Debt Collection Agencies can really bother you.  Collection Agencies will stop at nothing or make it impossible for you to get them to stop calling you. 

What is worse getting calls from Collection Agencies at home, work, cell phone or becoming Debt Free by working with us.  This is a simple decision.

We can put you on a road of becoming Debt Free.  We have a simple Debt Settlement Program that is easy and fast.

We can get you out of Debt within 12-36 months.

 We can settle your Debt by 40-60%

We will put you on a Debt Settlement Strategy and knock out your Debt.

We will HELP STOP THE COLLECTION CALLS from COLLECTION AGENCIES.

Stop the harassment NOW and Settle your Debt with First Choice Debt Resolution.  Remember WE are ON YOUR SIDE.

 Call 1.866.957.0213 or click this link Contact us