Over $10,000 in Unsecured Debt? – Why There’s Never Been a Better Time For Debt Settlement
December 18th, 2009 by adminFear of loss of job combined with more than ten thousand dollars to credit card issuers and other unsecured lenders may sound like a terrible thing. However, this can actually work to your benefit. You can actually save a lot of money if you owe money to credit card issuers and other lenders. Reason? Debt settlement!
The large number of bankruptcies has forced credit card issuers and unsecured lenders to change their approach. Lenders realized that they could not simply intimidate their customers into repayment. They realized that those who owe more than a particular amount would prefer declaring bankruptcy than struggling to repay the debt in full. Consumer confidence is low and people are scared of doing anything that may hit their savings and affect their cash flow. Hence, lenders decided to offer debt waivers and other debt relief assistance to those who owed beyond a particular limit.
Today, if you owe more than ten thousand dollars to your credit card issuer, chances are high that you will be offered a waiver. The original offer may range for 30% to 40% of the original amount owed. If this is not high enough, you can negotiate and bargain for a higher waiver. If the issuer does not agree, you can always opt for a bankruptcy.
The time for obtaining a waiver has never been better because credit card issuers
- have the support of the government in the form of the stimulus package
- Have suffered huge losses and are not ready to push the customers beyond a certain limit
- Are interested in being assured of returns rather than risky and uncertain high returns
- Are in a position where shareholders and investors are ready to condone losses provided there are no further bankruptcies.
The fantastic combination of circumstances will never come again. Hence, if you owe excess debts, then you should take the initiative and make use of debt settlement companies to seek a settlement. If you are still not convinced, just make use of the World Wide Web to know more about settlement and settlement companies. Visit the website of TASC for authentic information.
If you are over $10,000 in unsecured debt it would be wise to utilize a debt relief network instead of going directly to a debt settlement company. Using a debt relief network guarantees that the debt settlement company you choose has been certified and has established success in negotiating settlements. They are free to use and a good starting point to begin your debt relief process.
Free Debt Advice (href=’http://www.freedebtsettlementadvice.com/)
Secured Debt vs. Unsecured Debt
November 13th, 2009 by adminMany Americans don’t understand the difference between secured and unsecured debt. In fact, few Americans even know either secured or unsecured debt exists.
Secured debt – Debt backed or secured by collateral to reduce the risk associated with lending. An example would be a mortgage, your house is considered collateral towards the debt. If you default on repayment, the bank seizes your house, sells it and uses the proceeds to pay back the debt.
Unsecured debt – A debt that is not tied to any item of property. A creditor doesn’t 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 card debt falls into this category.
Difference
The most straightforward way to understand the difference between unsecured and secured debt to is to work out if your creditor can take away any item or property in the case that you are not able to repay the overdue amount in time. Common examples of unsecured debt, other than credit cards, are medical bills and store cards where you aren’t putting up any materials as security for the debt. Car payments and home loans however do have physical items attached.
Bankruptcy
Secured and unsecured debt also make a difference when it comes to bankruptcy. In Chapter 7 bankruptcy, you can make the choice of either keeping the product or property and pay off your debt in some other way. When a debt is secured, the creditor has rights in the security (or collateral) in addition to the rights against the debtor. The debtor’s personal liability may be discharged in Chapter 7 while lien rights in the collateral pass through bankruptcy unaffected unless they are avoided or stripped down. In Chapter 13 bankruptcy, you are allowed to keep the merchandise or property, but you will be allowed to pay off your debt according to the Chapter 13 plan.
Danger of Both
Debt Settlement agencies will tell you that both secured and unsecured debt are dangerous. With secured debt, you could lose your home, your car or other possessions. With Unsecured debt, your credit score could take a major beating, any future loans could have seriously high interest rates and more.
Unsecured Debt
Many households across the United States have over $25,000 in unsecured debt. In fact, the average American carries over $9,000 in credit card debt alone. This raises stress levels, causes sleep disorders and sometimes even depression. Hiring a qualified debt consolidation or debt settlement company can help you clear your debt quicker, pay off your loans for less than you owe and move you towards financial freedom.
Unsecured debt includes:
Credit Card Debt
Medical/Hospital Bills
Department Store Charge Cards
Oil/Gas Credit Cards
Personal Loans (unsecured)
