Debt Settlement Survival

Ok, it’s a new year and your resolution is to resolve your credit card debt for once and for all.

In previous posts I have discussed how to decide whether or not you need debt settlement. But in a nutshell, if you can’t make at least your minimum payments without causing financial hardship to you and your family or if your debt is already in a charged off or legal status, then you likely need debt settlement.

So it’s January and you promised yourself you will take the bull by the horns and resolve your debt. Where do you start?

Step 1, you made the decision to settle your debt so dedicate your efforts toward that end. And that means, no more payments to creditors that won’t help you achieve credit card settlements. This is hard medicine, but if you can’t continue making the minimum payments without giving up an essential ingredient of your life or without risking your welfare or that of your loved ones, it’s time to make this very important decision.

Step 2, decide how much you can set aside each month. If the answer is $0, I have really bad news. Debt Settlement is not the answer. To design an effective debt settlement strategy, you should be able to set aside at least 2 percent of your debt amount. So if you have $30,000 of credit card debt, $600 would do it. Anything else will drag the process on too long.

Step 3, open a bank account that will be dedicated to these funds. For now, you can open an account at your local bank, but if you have accounts that are already in judgment status, you will need to do something else otherwise you will risk getting your bank account frozen.

Step 4, silence the debt collectors. This is an important step to achieving the results you want. There are a number of ways to do it, but make the calls a non factor in this process.

Take these four steps and you will be well on your way to achieving a debt free life. For more information on settling credit card debt and other debt, click here

The number one reason debt settlement plans get derailed is due to debt collection calls.

Aggressive debt collectors can cause people anxiety and could also cause them to question their strategy and their actions. In reality, debt collectors have little power other than their words, but they are usually skilled at making those words burn.

Do how do you stop debt collectors from interfering with your debt settlement strategy?

Simple, don’t entertain their calls.

The old way was to just not answer the phone and let the answering machine pick up. But that causes stress in itself and can also lead to embarrassment. Another method is to use caller id and only answer the calls you want. But that to can lead to anxious moments.

The better solution is to block the calls you don’t want. There are a number of ways to do it.

You can purchase phones that will allow you to enter numbers to be blocked. Panasonic makes a few units that do the job. But there is a problem with this approach. First, the units only allow you to input a certain amount of phone numbers, usually 20. This is limiting. Second, your phone will still ring once and then be blocked. Third, the caller knows they are being blocked.

Another approach is to do it through the phone company. There are problems with this method. First, they charge a monthly fee. Second, they usually won’t block business numbers.

We found an even better answer. A small unit that attaches to your phone line that essentially controls the ring and stops debt collectors in their tracks.  We have worked with this unit and it operates like a charm. It lets you program up to 70 numbers to clock and you can block whole numbers or partial. For instance, you can block all ‘800′ numbers and it only counts as one entry.

And your phone never rings. The caller hears  the phone ringing on their end, but your phone is silent. It is by far the most powerful product for blocking debt collectors. For more information, click here.

Remember, there is no reason to ever speak to debt collectors. Our system drives you toward settling your debt without ever having to get on the phone. It is really the only to go for debt settlement.

For more information on the Debt Settlement Survival System, click here

As you can probably tell by now, I’m not an advocate for the debt settlement industry. The fees they charge to settle your debt is outrageous and the service they provide is nowhere near the value.

But that being said, it does take knowledge and a certain mindset to doing it yourself.

There is a compromise. And that compromise is to use a debt settlement coach.

A debt settlement coach will offer the knowledge and in some cases all the tools you will need. They will provide the “what”, “when”, and “how”. A good coach will also provide all the moral support you will need.

Really, the only things a coach will not do for you (or shouldn’t do for you) is manage the money and act as an intermediary between you and your creditors.

As for handling the money, you absolutely shouldn’t want that anyway. There are countless stories about consumers left holding the bag when a debt settlement company either left the business or was put out of business. The only safe guardian of your money is you.

As for dealing with your creditors, there is little that needs to be said or written to them until the moment of truth- the point when you are ready to settle debt. A good coach will help you avoid interaction for your peace of mind until you are ready. And even then, the contact required is minimal.

So what do you look for in a coach?

First, you want someone experienced or at least under the guidance of someone experienced.

Second, you want someone that will not charge an arm and a leg. I have actually seen coaches that charge more than the debt settlement companies. Why would anyone want that?

Third, you want to avoid bells and whistles. There are coaches that will add all kinds of unnecessary services and products so they can charge a higher fee.

And fourth, you want a coach that will be available. Some coaches offer no or little support once you sign on. Some will throw cd’s and books at you and call it a coaching program. You want someone that will be there to handle any obstacles.

For more information on debt settlement coaching and do get the free ‘Debt Negotiation Blueprint’, click here

Debt Settlement is not for everyone. It is an aggressive strategy that should be considered only under the proper circumstances.

If  your accounts are current or close to current and you can make your minimum payments without subjecting you and your family to hardship, then you should continue making your payments.

On the other hand, if making the payments means you’re going to deprive you and your family of any of the key ingredients of life, then you should consider all other options, including Debt Settlement (Credit Card Settlement). That means, keeping a roof over your head, putting food on the table, keeping up with your utilities, providing transportation so you can maintain an income, and sustaining a reasonable quality of life. Do not eat mac and cheese for dinner every night so you can keep paying your credit card debt. That makes no sense.

Also, consider debt settlement if it no longer makes sense to make payments. If your accounts have been charged off with the creditor and is now in the hands of a collection agency or an attorney, making payments makes no sense. Paying off your debt in full will not earn you any brownie points so you might as well use the money you will save through settlement to re-build your credit cand your financial life.

So, assuming another option does not make sense, the next question is does debt settlement make sense. Here is the financial test. Can you set aside at least 2 percent of the debt you want to settle each month using the criteria I set above with regards to quality of life? If you have $20,000 of debt that would be $400. If you can, then debt settlement may be the right thing to do. If not, then other options including bankruptcy or even avoidance may have to be considered.

I’ll provide more information on those options at a different time.

For more information on debt settlement, go to Debt Settlement Survival.

As a twenty year plus veteran of the debt industry, I think I know everything about debt settlement and credit card settlement.

I am no longer in the mainstream debt settlement industry for a number of reasons. But what I now know leads me to offer this advice.

If you need debt settlement, do it yourself or with the help of a coach.

This is not sour grapes from a disgruntled employee. I had my own company and worked with tens of thousands of consumers. But this is not the same industry I helped create.

First, the fees are out of control. The standard in the industry is to now charge 15% of the amount owed. That is hefty, but that’s not even the worst part. In almost all cases, most of the fee is due upfront. That’s right, they get paid thousands of dollars before you even save a dime. And in some cases, these companies are tacking a monthly service fee ontop of that.

Second, many creditors no longer work with debt settlement firms. As soon as they find out one is involved they will turn the account over to legal or you will be forced to settle the account yourself. And yes, you will still owe the fee.

Third, you are trusting them with your money. This model has not worked out for many consumers as companies go out of business or mismanage funds. Remember, this is an industry that is highly unregulated.

Fourth, success is no longer about negotiating. When I started out, we negotiated. Our skills made the difference. Now, i’s really just a matter of setting up the strategy for allocating money and waiting for the right time to settle.

A big part of the success of this type of program depends on you being able to withstand the collection pressure. Well, I have solved that issue and can now show you how to stop debt calls dead in their tracks so you can go about your business of becoming debt free.

I hope you continue to follow my updates. Go to the Debt Settlement Survival System main site for additional information on how we can help you save $1,000 in fees.