Debt Relief Solutions- Lower Your Debt Payments

Credit card payments can be a scary thing for a lot of people. People aren't able to prioritize their lists, can't figure out which debts are most important, and often have mortgages and auto loans that are far more important than credit card bills. Also, these people have to live, which brings about the cost of living versus paying credit card bills every single month. Even just the minimum payments can make consumers stressed and strapped for cash, which can be a scary situation to be in. No one likes to be in financial trouble, but there are debt relief solutions that can help.

Debt Relief Options- Credit Counseling vs. Chapter 13 Bankruptcy

There are many consumers in need of debt settlement or debt relief options. Those who look into debt settlement might also find various advantages to credit counseling or Chapter 13 bankruptcy. While the two are very similar, they have different consequences, processes, and even different end results in many cases. The general idea is to pay debts back with the help of a third party, and some companies will tell you that the negative impact that credit counseling has on your credit is just as bad to potential lenders as bankruptcy.

Debt Relief Solutions- Credit Counseling 101

For many people, the uncertainty that comes in seeking debt relief is more frightening than the actual process itself. Credit counseling is just one alternative that people have when it comes to paying bills or finding other means of managing their debt. Credit counselors can offer various debt management plans for consumers as well as educational resources and financial advice.

Who is Best Served by Credit Counseling? - Finding Your Debt Relief Solutions

Debt relief comes in many forms, but all consumers have one thing in common: difficulty paying off unsecured debt or a situation where they have become overwhelmed by creditors and bills that cannot be paid. There is very little else in common between debt settlement and credit counseling other than the clients. Here are some tips about who is best suited for credit counseling:

Companies Abusing Their Non-Profit Status for Debt Relief Profits

The National Consumer Law Center is a great source of information about the goings on of non-profit debt relief organizations. In many cases, these businesses abuse their position by focusing more on profit and sales than on their non-profit claim of educational services to the general public. These companies are allowed to make a profit, but there are limitations on how much they should be making and what part of their business makes up the profitable activities. The IRS mandates that the earnings of a credit counseling agency that is non-profit is limited so that the profits will not benefit any entity of the organization. Ameridebt is the best known example of this type of abuse, and was shut down by the FTC a few years ago.

Why So Much Bad Press for Not-For-Profit Debt Relief Companies?

There has been a lot of negative attention recently that is focused on non-profit debt relief companies and the abuse of their organizations. In many cases, being non-profit is required in becoming a credit counseling agency, and most companies will set up as charitable organizations or educational companies. However, there are so many companies out there, and so few who actually provide any charitable services or educational materials to clients. The IRS even cautions consumers against non-profit companies that are using their status to get around state and federal laws that are designed to protect consumers.

Non-Profit Debt Relief Agencies Aren't as Educational as They Should Be

The failure of non-profit debt relief companies to provide educational resources for their clients is the second most widely noted type of abuse these companies commit, according to the National Consumer Law Center. To earn the non-profit status, the IRS states that an organization has to be operated for charitable, educational, religious, scientific, or literary purposes. There are guidelines that allow non-profit groups to do things beyond this realm, but they are limited and should focus mainly on their non-profit intentions.

Non-Profit Organizations and Their Abuse of Power

There has never been a time when medical and credit card debt have been higher, which is creating a spotlight of sorts on the credit counseling and debt relief solutions that are out there. Americans are increasingly searching for debt relief solutions and the quality of the services is in question now more than ever. The credit counseling industry has grown significantly, and so has the number of less than satisfactory companies out there trying to lure clients in with their ‘non-profit' status and their sweet-talking. Some companies lack the funds necessary to actually offer the right services, but many are just in it for the sake of making a profit off of the growing need for these services. Understanding which companies are which is critical to consumers' success in finding debt relief solutions that are effective and useful.

Debt Relief Solutions- Finding a Credit Counseling Company that Works for YOU

It is important to understand that all consumers will have different views and opinions about the effectiveness of debt settlement and credit counseling based on their specific needs. Therefore, if consumers feel that credit counseling is what they need, they should have the information and tools necessary to choose the right agency to work with. There are many things to consider, including the variety of not-so credible companies out there who are preying on unsuspecting victims. Here are some great tips about choosing a credit counseling company to work with:

Debt Relief through Credit Counseling - Failure is Common

There are many different solutions to debt relief, but credit counseling is perhaps one of the most common. Surprisingly, the majority of consumers who enroll in credit counseling programs never complete them, which might seem a little extreme. However, this high failure rate in and of itself is reason enough for people to seek other alternatives to debt relief when they have the chance. While credit counseling can be effective for some, it is rarely helpful to the many people who really need it.

Debt Relief Solutions Explored - Credit Counseling and What You Should Know

Every debt relief solution has its own advantages and drawbacks. There are many things that need to be carefully considered before someone can enroll in the right debt relief program. Credit counseling, in particular, is the focus of this article, and is something that needs to be explored thoroughly before it is chosen as a means of debt relief.

Credit Counseling Drops the Ball- Non-Profit Debt Relief Solutions Aren't Always Effective

Non-profit debt relief companies are not hard to find. These companies will advertise their non-profit status as a temptation for consumers who have a need for debt relief but an inability to pay for services that can help them to get out of debt. The reason that many consumers who are in over their heads seek bankruptcy alternatives through non-profit companies is because they promise a chance to get back on track without charging high fees, interest rates, or other charges that people cannot afford. This is often a dream come true for consumers who need help, but can quickly turn into a nightmare for those who are not prepared or informed about what credit counseling actually does.

Whose Interests Really Matter? - Credit Counseling Agencies Often Funded by Creditors

Most consumers know about credit counseling agencies. What most people don't know is that these companies get most of their income from creditors. That's right. Every time that someone sets up a payment plan through credit counselors, that agency gets a percentage of the payments back as profit. Consumers and financial experts alike that learn this question the intentions of the credit counseling agencies, which is not surprising. Are these companies serving consumers or are they serving creditors, and acting as collection agencies in disguise?

Debt Relief Solutions- Debt Relief Came Right after the Creation of Credit

Dating back to the 1920s, unsecured credit lines and credit cards were issued to consumers. Once people started borrowing, they almost immediately started defaulting on their credit for various reasons. Because of this, the development of the National Foundation for Credit Counseling happened in 1951 and created some of the first formal credit counseling companies. This organization was founded to help creditors like department stores and other companies to recover the money that was owed to them from delinquent accounts and prevent consumers from having to file bankruptcy. Starting in the 80s, credit cards and the use of credit became much more popular, as did the need for credit counseling and other debt relief solutions.

Debt Relief and You- Knowing What's Best

Epic Debt Relief specializes in debt settlement and negotiation. If you seek or are in need of credit counseling or other services, you will need to find those on your own after taking the time to educate yourself on your available options for debt relief, credit repair, and other financial stabilizing tools. The information in this article is for the purpose of education only, and is not a promotion of services or a suggestion about what is right for the consumer.

Debt Settlement and Negotiation for Complete Debt Relief

Debt relief requires a behavior change. You cannot change your life, your financial future, or anything else without changing your attitude and your behavior. You can't have a different life if you keep making the same choices. Another element that comes with debt solutions is effort. You have to be willing to work for your financial stability. You are the one that got yourself into the debt, and it takes your effort and commitment to get out of that debt. No one is going to do it for you. Even if they do, they cannot keep you out of debt in the future. That is up to you.

Say Goodbye to Bad Credit Card Debt

Here's Why!

When you work with services like Epic Debt Relief, there is no guarantee on improving your credit, only that our services will help you to settle your debt, sometimes for less than you owe, and sometimes not. You need to fully understand this in order to be prepared for finding the best solutions for bad credit card debt resolution.

Credit counseling is a service that is very different from debt settlement. Customers will make payments to the counseling agency on a monthly basis. Their payments are then distributed to the creditors based on the plan set up between the consumer and the credit counseling agency. These plans generally last up to 5 years, and the interest rates will be lower than what consumers are used to paying for their credit cards. The savings can be larger because of the reduced interest rates, and counseling is also offered to help with budgeting, spending, and debt.

Epic Debt Relief is a debt settlement company. We do not work with credit counseling, so this article is simply designed to offer information so that consumers can make educated decisions about their debt settlement and negotiation options. There are a variety of things that need to be considered when it comes to the debate between debt settlement and credit counseling. The situation is different for everyone, and will be up to you to determine.

So what Causes a Creditor to Pursue Legal Action?

That's the million dollar question which is impossible to answer, but we do know that attorneys generally get involved in two types of circumstances: