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Posts Tagged ‘debt management’

Instead of International Revenue Service agents being evil, people that are out to cause harm, these people are government professionals that work hard to help people out when back taxes are owed.  This government agency has a tough position in that they are required by law to make anyone owing taxes paid.  After all, if the IRS does not collect these taxes, which come from business owners and individuals, the operations of the United States would suffer.

Every year, millions of people are faced with difficult financial situations, which could mean not paying taxes.  Then, you have individuals that feel they do not owe the government anything so they simply refuse to pay.  Instead of ignoring the problem, it is important for people to know that IRS debt relief is an option offered by the government to get the issue of past due taxes resolved in a fair and quick manner.

If you are among those struggling with paying taxes, you need to know that a number of IRS debt relief options exist but the goal is choosing the one that would benefit you most.  For example, the IRS has a Debt Assistance program designed for taxpayers.  Under this law, collectors are not allowed to contact you.  Additionally, this program would be beneficial if any portion of the debt were being used to refinance your home but keep in mind, it would only help to a certain point, meaning up to a point of the principal balance owed on the first mortgage might benefit.

The best step is to start by locating an accountant or financial advisor that has knowledge of tax debt relief.  As long as the professional has a good understanding of how IRS methods work, you would be in good hands.  This person would be able to determine the kind of IRS debt relief compromise that would work best, thereby allowing you to keep your home, car, etc but still get past due taxes paid.

The amount of Tax Debt Owed to The IRS, Offers are Often Less Than the Balance.

The IRS has several possibilities for tax debt relief in the form of compromises and in about 50% of cases, the offer is accepted.  Of those offers accepted by the IRS, the actual amount of money paid ranges from 3% to 80% on the amount of money owed in back taxes.  However, for this to happen, you need the assistance of a professional, someone that understands taxes and the Internal Revenue Service.  In fact, many people offering this type of service were at one time officials or agents with the IRS.  The two of you would sit down and come up with an offer that would be realistic for you but fair in the eyes of the IRS.

Tax liens are like time bombs; they can quietly be placed against your property and erupt as huge problems months or even years later. Tax levies can empty checking and savings accounts overnight, leaving you just about broke. Tax specialists can help you make peace with the IRS and get back on the right financial track.

The actual arrangement made and accepted would vary, depending on several things.  For instance, your current financial status would be reviewed, the IRS would determine the person owed the tax debt, the amount of money owed, and whether penalties are applicable.  If there were any penalties, these would be tacked onto the amount of taxes already owed.  The final dollar amount would go through the government’s computer system and calculated down to the last cent.

The biggest point of dealing with the Internal Revenue Service is to talk to them frequently about the debt and continue to seek some sort of debt relief solution. Offers in compromise are often better accepted when made through qualified legal counsel and although they will charge for their services, the money saved on past due taxes will more than pay for their work on the tax debt relief.

Life has become one of constant ups and downs. Suddenly there is no way you can plan for anything, as there is nothing that is stable anymore. Scores of people have been losing jobs because of the worldwide recession, major companies have become bankrupt, and world leaders are trying to formulate plans in an effort to keep their country economies afloat. Through all this a major problem many people are going through is their inability to pay back the loans and bills they have incurred over the past months.Looking for debt relief?

With all the debt’s that many of us have, there has become a worldwide search on what methods can be taken to receive debt free advice. There are a number of places where debt free advice is offered, in an effort to help you understand the problems you have right now and also help you find a solution to those problems. Debt free advice is also something that many people think it is fun to give. Haven’t you met a guy who would tell you; Oh no, that bank is terrible as their interest rate is quite high. Just try with the bank about a couple of blocks down the street and they have a great replayment plan as well. Of course, that this type of debt free advice can be annoying at time as some people pretend that they know it all. There are many professional services for giving debt free advices, which will be the most effective ways of starting the process of paying your debt back. Wipe out your debt! Get relief now!Many banks have credit officers who can give you some debt free advice, and also help out in some way to make sure your relationship with those banks do not turn sour because of the loans. This debt free advice has to be taken seriously, especially for those who cannot seem to get out of their cycle of debt. Of couse many people who have gone in to a vicious cycle do not admit the fact and sometime they genuinly do not know. In case if they are aware of the issues, most of the cases they refuse to seek some help. But when your loans are suddenly blown to a proportion you do not think you can manage, there is absolutely nothing wrong in admitting that you need help. You can definitely look for debt free advice and they will keep your information confidential for sure. This means that only the you and the person who is giving you advice would know that you have even asked for some help!Learn how to be debt free!

The words ‘buy now, pay later’ goes hand in hand with the credit card. In the present era, finding at least a handful of people with no credit card to their name can be rather difficult.  A credit card offers its users several advantages, some of which include the option of buying goods and paying later, enjoying vacations and paying the total cost in instalments at a later time, travel insurance to the credit card holder, etc. Since there is a grace period, many users are tempted to over use their cards ending up in credit card debt problems.Looking for debt relief?

Having a credit card can mean that there is a high probability for a person to have credit card debt problems in the future. If a credit card debt goes out of hand, it can cause a person a lot of financial problems. If you too are going through credit card debt problems, it is best to focus on some of the following issues that might help in lessening your problems.Wipe out your debt! Get relief now!

One of the first things a person faced with credit card debt problems can do is obtaining copies of their credit card statements. Going through them will give you an idea of your expenses and also help you notice if there are any errors and unaccounted payments. If by any chance you notice some kind of error, it is important that you notify or contact your credit card company with immediate effect and inform them. If this becomes the case, it can be a huge benefit in reducing your credit card debt problems.

If you are already having credit card debt problems, what do you think would happen if you keep on using your card? It would only increase your financial troubles. Therefore it is important that you stop using your credit card the moment you know you are in trouble instead of using it and worsening the situation.

If you really want to reduce your credit card debt problems, then you should start to pay more than the minimum amount due. If you want to reduce the amount of money that you owe, then increasing the money you pay off each month should increase. Paying only the minimum amount due means only one thing; everything that’s left to be paid earns more interest making you pay heavy amounts in the end. If you think that you are unable to pay even the minimum amount due, then it’s always better to get the help and advice from a credit counsellor as they could help you make the best decision.Learn how to be debt free!

Credit card companies are sometimes flexible with their conditions especially if they are faced with customers who have credit card debt problems. If  you know how to negotiate with them and get a better deal such as a lower interest rate, settling your credit card debt problems can be much easier. If none of these methods work out as planned, you could always apply for a personal loan at a lower interest rate and try settling your debts.

Are You Having Sleepless Nights Because You Just Plain Refused To work for Yourself?

Your body and mind is numb and your feet hurt because you worked hard all day and you have come to a place you call home at night, only to discover that you will not be getting that sleep you really deserve after all. You will toss and turn again tonight because on the table in the next room, there is pile of bills.

Sometimes the collection agents know ways to trick you to pick the phone. Need i say more?

You will toss and turn because you think its about the immediate debt, but believe me, the mind is way smarter than you want to give it credit.

Deep rooted issues that nag you secretely and subtle.

You are no more indispensable at your job place. Most of the time , you will have to clown your way and suck up more in order to stay in the loop.

Your better half does not think you are in control anymore and now and then goes or stays away for a while with other folk for you to sort yourself out. It’s already 3 a.m. and your body finally gives up and you go to sleep but then off goes the faithful alarm always on schedule to wake his master up to rise up and shine.

Whatever the deal is with your debts, you will still have to get to work on time before you lose everything.  And you will have to be on the road in 15 minutes flat else you will hit the traffic, and you remember what happened last time when you were late to pick your son up for school.

OK. It’s time for you to hit the road. Day two comes and you’re off again to go work for someone else. You repeat the same pattern once you get home. Later that night you lay in bed, thinking how you’re going to pay all of these bills. Despite your best efforts on the job, including overtime, it doesn’t seem to be enough. What can you do? Who can you to turn to?

Does this sound like you? Are you a Christian having sleepless nights because of your finances? Here are the top five reasons I have found why people get into debt:

1) We are not taking the time neede to really understand in detail the people who’s lives we tend to emulate. 2) We refuse to accept the truth about our current Health Care System. If you don’t have money in America, you can die from lack of  appropriate care.~ Health care in the USA is headed the wrong when you can’t get decent medical care for $150,000 a month.3) The only way you can have a three month vacation is when you have your own business. And three months vacaton is what you really need to wind down  4) Divorcing and the other party charged up cards in the process splitting up 5) Impulse Shopping?Well that is only me.

I too was a victim. Debt is like a social virus, it spreads so fast and very hard to contain. My husband equally had financial woes, his was still on this list. Being in debt has a way of having a hold on you and causes you not to think clearly. People in debt tend to operate out of fear – for example they ignore phone calls because it might be a collection agency on the other end. How many calls have they missed? Or perhaps, they write a check in the hopes that it will clear the bank; knowing full well they spent the money on luxuries and other needless excesses that have caused the bank account to have insufficient funds.

If any of this sounds like you or someone you know, assure them they can get out of debt without filing bankruptcy. They have to want help and not let pride or embarrassment get in their way of being helped.

I refuse to accept the current nonsense about being financial solvent so long as you obtain a degree so long as you dont work for yourself, you are not living the American dream. The economy always dances to the tune of supply and demand. At a certain time, it was the automobile industry,then came the computers and now its going to be the Green Dream Peddlers. The Gold Rush demon has ways of transforming and renewing its image but it is the same story. There are going to be people well placed to profit personally, but making it has nothing to do with saving it.

In a Gold rush, there are those who dig and those who provide services to the digger’s, buyers,and whoever happens to be there.

Why would you pay someone to help you get out of debt?

You can always count on the relevance of debt management when money is tight, such as in today's economy. Most folks have a small portion of debt while others are drowning in it. Debt management is a good thing to seek out when you find it near impossible to keep up with your monthly bills. There are several methods to accomplish this task.

To begin to handle credit card debt management, put together a monthly budget that targets payoffs. This entails listing all credit card accounts, balances, minimum payments, and interest rates. Once this is done, prioritize them in one of two ways. One is making some extra payments to your highest ranking credit card in terms of interest rate, or you can begin with your card that has the lowest balance. Continue to make the minimum payments on the rest of the credit cards. Paying off the card with the smallest amount owed can feel like a real victory and helps the debtor see their plan is working. You might say that the emotional progress may be worth more than the extra dollars to be paid for choosing to neglect the cards with the highest interest.

-Debt Payoff Acceleration. When you pay off the first card regardless of what route you took, continue to put forward the same amount of payments, but use the amount you were paying on the card you have already payed off to the next card on your queue. Do this until everything is paid off. The same amount of money will be paid in total each month, but when you progressively pay more on every card, you will pay them off faster.

If a person is in serious debt and needs credit debt management, they may need to consider a Debt Consolidation Program. It's possible to do this on your own by contacting creditors and bartering for a lower interest rate, payment, or settlement of the total balance. For better and quicker results, a debt consolidation company can do this for you. They have better standing, and can achieve results in a fraction of the time. With this, a person usually makes one low monthly payment to the debt consolidation company and they then pay the creditors because they were able to get lower rates for a longer period of time. Your budget will be somewhat relieved, since the amount you pay them will be less than what you are having to pay now.

-Debt Negotiation: This can be done by you, but it is a tactic of debt management better handled by a professional company. Those professionals generally charge for their services or they could possibly get a kick back from the credit companies because they are recieving their payments on time. The best things they are able to negotiate on are fees, interest, and payment breaks for you.

-Debt Consolidation Loan: You can also get a personal consolidation loan that might be able to cover all of your credit debt, and in turn you will be left with nothing but one payment for that large loan. The lender writes payoff checks to each creditor. Hopefully, if the loan is done right, a person can expect to be debt free in a much short period of time and they will get to save some money.

-Debt Management through Bankruptcy: This is a last resort, but a Chapter 13 bankruptcy will allow you to restructure your bills, making credit debt management easier. Chapter 13 Bankruptcy allows the debtor the opportunity to pay the creditor but usually at a reduced rate and for less time. This type of credit debt management program will negatively affect a credit report for up to ten years or longer. Chapter 7 Bankruptcy is also an option but it is harder to qualify for and a debtor will not owe their creditors anything once it is finalized.

Debt consolidation loans are one option for getting rid of a large amount of debt. Debt consolidation loans can help when your debts become so large that you cannot manage them with disciplined spending. The longer you delay in getting out of the debt cycle, the deeper you can sink into it. You need to research consolidation loans and get a debt consolidation quote to see how you can best solve your debt problem. 

If you are not extremely careful, it is easy to overspend on credit cards.  Spending money is easy, repaying money is not always easy.    Even if you do not have too difficult of a time making your monthly minimum payment, your credit scores will be low if you carry a large amount of outstanding credit.   It will take a long time to get out of debt if you only make the minimum payment each month.

Debt consolidation loans help you free yourself from embarrassing collection calls and hefty late payment fees and over the limit charges.   Loans for debt consolidation are a way to convert all of your loan and credit card debts from multiple creditors into one loan from a single creditor.

Do an online search for a free debt consolidation quote and find out what kind of consolidation terms and consolidation loans are available to you. Before taking a loan, it is best to analyze your financial status including your total debt and your monthly income and expenses. After you have assessed your financial situation, do a search online for debt consolidation quotes and check out their consolidation loan terms.  Review the loan terms and interest rates offered and choose the loan that best meets your needs.

Select the debt consolidation quote from the company that offers a low rate of interest and charges minimal closing fees on your loan. You will be able to choose a loan payment that fits your budget.   If you opt for a longer repayment term, you can be comfortable paying smaller installments, but you may end up paying higher overall interest.  The shorter the repayment duration, the lower amount of interest you will have to pay.

We all need relief from debt at one time or another, and debt consolidation loans will help you eliminate your debt. Since we never know what the future holds, it is best to find debt management methods that will allow you to find debt relief before your debt manages your life.

Repossession of your House – one of the most traumatic events in any person’s life.

In the current economic climate it is distinctly possible that even somebody who is very careful with money can fall on hard times.

The bond repayment that was well within your reach when you bought the house has now become a commitment that you cannot manage – because of rising interest rates, and the price of fuel, food and other essential items.

Irrespective of the reason why you have stopped paying your mortgage – redundancy, death of the breadwinner, divorce, failed business venture, inability to refinance and many more – the bank will take action as soon as mortgage payments are not kept up to date, and will repossess your house if they feel you are unable to meet your monthly repayments presently or in the future.

What a wonderful relief it would be if you could go to bed again at night and fall asleep without this sword hanging over your head everyday.

The good news is that we can prevent the repossession of your house, if you are willing to work with us.

There are, however, a few things that you must understand beforehand:

The biggest mistake that property owners make who cannot meet their bond payments, is not to contact the bank in good time, but wait until the bank contacts them first. Many property owners then ignore the bank’s calls and letters.

Now alarm bells will ring at the bank immediately! If you see that you will not be able to make any month’s payment, you must contact the bank, explain your situation, and make an appointment to see them. It is in the bank’s interest to find a solution to the problem.

There are various possible solutions – each person’s situation is unique:

The bank may give you a payment ‘holiday’ until your situation has improved – like 6 months of paying only half the monthly amount, or 3 months of making no payments, depending on your personal situation.

You could extent your mortgage payback period to 30 years, or apply for an interest only mortgage (SA Homeloans, for instance offers interest only mortgages) which will bring your monthly payments down. This will give you more money in your pocket, but you will be paying more interest. You could change the mortgage repayment again after reorganising your finances.

Your accountant or financial advisor could give you financial advice (NOT an insurance broker!). They have seen situations like this before and might give you feasible ideas that can be implemented.

The consequences of not keeping up with your mortgage payments:

The bank will repossess your property if you do not keep up with your monthly payments, and do not communicate with them to find a solution. If a solution cannot be found, the bank will take steps to have the property repossessed.

Some people give up and wait for the bank to do the repossession. They think that all their financial worries will be over after the bank has repossessed the house – but as soon as your house has been repossessed, all your creditors will be knocking on your door.

Someone who has gone through repossession might be financially ruined for a very long time, because he will not be able to get credit.

When the house has been repossessed, the Sheriff will auction it. The bank will also be bidding at this auction. If the property is worth $1 000 000, for instance, and the outstanding bond is $500 000, the bank will bid at the auction up to a price of $500 000, and then leave the auction. If the bid is granted at $500 000, the bank will get their outstanding money back.

Don’t think you will get any money back after the auction, you might still be owing the bank. Many auctions, or most auctions do not go much higher than the reserve price that the bank has asked for. Now the owner has no house PLUS a bad credit record. He may not be able to get credit for a long time (talking in years!), and struggle to rebuild his life.

How we can help and assist you

The best action to take to prevent repossession is to sell the property to a reputable property investor and settle all outstanding debts as soon as possible. The property owner might have some late payments listed on his credit file – but not a repossession that might take years to repair or clear. He can rebuild his life again by starting afresh, and may soon be able to buy a property again.

We are property investors who will valuate your property and give you an offer to purchase within days. We will even settle your outstanding payments with the bank before the transfer has taken place. So you will not have to worry about a creditor every time the phone rings; or that the Sheriff or Bailiff will come knocking on your house front door.

Thanks to the NCA (National Credit Act) there is another way to save your house from repossession and that is Debt Counselling.

You can apply for Debt Review at any time. As long as your income is lower than your expenses and you have income every month. While you are in debt review or applying for debt review the bank may not repossess your property or any other asset in your name. You will have more time to reorganise your finances.

Our Criteria to help you:

We are not able to help everyone. There are certain criteria according to which we can help you:

We must be your last resort, and you must be willing to work with us to find an solution. First of all we must valuate your property to see if you have enough equity in it. Equity is the difference between the market value of your property and your outstanding bond. Should you meet the criteria, we shall buy your property for up to 70% of its market value.

We can also help with fast sales in cases where people are relocating abroad, or have been divorced or separated.

Applying for debt review is a simple process. You can send me an email to help you apply for debt review or you can contact me for more information.

Do not hesitate to contact Colin Brazendale at colin@prevent-repossession.co.za for support and help.

OK, you are in a bet of a mess; your debt is spiralling out of control; you are struggling to sleep at night and you are feeling a sense of guilt. You feel that you have let your family down and fear how they will react if and when they ever find out about the scale of the problem. Does the above sound familiar? There are many people in a similar situation and many who have now become debt free. In reality there is no time for fear as it is action that is now required.

Now before you continue to read this article I would like to point out that I am not a financial adviser and that what I write in this article should not been as “financial advice”. It is always worth seeking the advice of a debt specialist before proceeding or making a decision etc.

Not everyone has access to a debt management specialist therefore we have to think about more realistic action to reduce our debts.

What we require is debt solution. At the outset we should seek help with family and friends being the first port of call. It will be hard to come clean to your loved ones however you will need their support to find the way to a debt free life.

After step one has been accomplished it is then time to move on to stage two. The interest added to the repayments is usually what leads to the debt to becoming out of control. The fact that we are in the middle of a recession and a credit crunch could now work in our favour – as strange as this may seem.

The lenders are now writing off thousands of pounds worth of debt each and every day. They are in need of cash themselves and would much rather receive something than nothing. Contact each of the creditors and request that they freeze the interest payable, tell them what you can afford to pay and state that you do want to somehow pay the debt off. You should confirm your annual earnings by enclosing a copy of your payslip. Also let them know the true extent to your whole debt problem, for example what you owe to other companies.

I believe that many of the lenders will write back to you with a positive response.

There are always alternatives of course including going for a no credit check loan however these are not a solution to becoming debt free.

Another alternative is to formulate a business cost reduction strategy; you can do this with the aid of a cost cutting specialist. This is where you obtain lower prices for things such as your telephone calls, electricity bills and even cleaning.

I wish you every success in your quest to become free from debt.

So, you’ve managed to clear off all your credit card debt and can breathe a sigh of relief.

Phew … feels good huh?

Now what?

Well, your next step is … TO STAY OUT OF DEBT!

It can take years to clear your debt and get rid of it, and the last thing you need is to be saddled with more and go through the process again.

Whilst you were clearing your debt, you will have got into the habit of watching the pennies and managing your finances. Just because you are now out of debt, there is no reason whatsoever to stop this.

Keep it up.

Keep managing your finances; keep watching the pennies; keep making sure you don’t overspend.

This is an excellent financial habit to keep. You’ve struggled to get into it, so don’t get out of it so quickly.

Now you are debt free, use the extra income you now have that isn’t paying of debt to go into a savings plan.  If you were paying $400 a month to clear your debts, you were living on what was left of your money every month. If you put $300 of this $400 a month into savings, you will soon have a very nice nest egg for holidays, emergencies and other big purchases that you want.

Avoid further hire purchase agreements or buying anything on credit too. If you save like this every month, then you will have $3,600 saved in a year. By using this money to fund larger purchases, you are avoiding the spiral of debt and getting yourself back into financial trouble again.

Credit and hire purchase is a slippery slope back into debt, and it won’t be long before you are struggling to meet repayments and having problems again.

Oh, and it goes without saying, don’t get any more credit cards! Avoid them!

Now you have got yourself debt free, make the effort to stay that way and keeping practising the good financial habits you’ve got in to.

The National Credit Act (NCA) came into effect in June 2007 and with it came the process of Debt Review or Debt Counselling.

The consumer applies for debt review at the debt counsellor or consultant. The consumer must know the debt review process and the fees that go with Debt Councelling. Debt review will influence the consumer’s credit rating, but this is temporary while the consumer is in debt review. The consumer can opt-out of debt review at any time.

The fees must be explained to the consumer so that he or she knows the cost. Debt counselling is not cheap and can be expensive, but is far better than losing your house or car to the sheriff’s auction. In the current economic market you will only get halve of the value of your car or house price at an auction.

The consumer completes and signs a debt review application form after consultation with debt counsellor or consultant. The form is called a Form 16. Form 16 together with supporting documents is handed over to the debt counsellor or consultant. The form 16 must be completed with all details. All personal details must be entered as well as a budget will all details.

The budget is very important to the debt counsellor to determine if the customer is over indebt or not. Supporting documents are necessary to confirm account name, account number, address and creditor details with amount outstanding and monthly instalments.

The details on the form 16 are captured immediately. Within 5 days (normally sooner) all creditors are notified with form 17.1 that consumers is applying for debt review. The debt counselling application is now in progress. It is not possible for any creditor to take legal action now.

The debt review process takes 60 working days. The creditor has 5 business days to provide information on consumer. The debt counsellor will check the details he received from the consumer to see if the details are correct. The creditor is reminded to give feedback after five days.

Another 10 days grace is given to the creditor to reply to notice debt counsellor sent.

If the debt counsellor does not receive conformation from creditors, he may presume that the figure provided by consumer are correct. The debt counsellor will now determine if consumer is over in debt, in other words, is the consumer’s monthly expenses more than his or her monthly income.

The debt counsellor will now prepare a debt-restructuring proposal to the creditors. The proposal must be sent 25 days from date of application. All creditors have 10 days to respond. If there is no response, the creditors will get a reminder and another 5 days to respond.

The proposal will be sent to the Payment Distribution Agency to start the distribution to creditors. That is the debt review process in a nutshell.