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How to Choose A Debt Relief Company

November 15, 2011 By 3 Comments

Today’s post is Part Two of discussing getting out of debt using a debt settlement program from Travis at Our Journey To Zero Blog. In case you missed that post, you can go back and read it: A Personal Journey Using a Debt Relief Service. I asked Travis to provide some tips and advice for picking a debt settlement company. Here are his suggestions:

Yesterday I told you my personal story of how I found my debt relief provider, made the decision to enroll with them, and what my experience was like in getting my debt management program rolling.  While I have never had even the least bit of regret about the decision to enroll in our debt management program, I admit that I was extremely lucky to find the provider that I did.  I didn’t know what I was looking for, or how to go about looking for it.  I just sort of stumbled upon the information.

It doesn’t always turn out that way. I’ve heard debt relief stories that would make your checkbook quake.

If you’re struggling with debt, want some help, but don’t know where to turn, how do you go about finding a reputable debt relief company that will act in your best interests?  Based upon my personal experience, as well as what I’ve learned since enrolling, I’ve put together the below list of tips that could help you find a debt management provider.

Check out the website:

  •  Design: A sleek website is not necessarily a sign that you’ve discovered a reputable company.  However, if the website is the equivalent of a 5 year old drawing a picture with a crayon, you can be pretty sure it’s not.
  •  Account Management:  If you’re like me, you want to be able to fully manage your account online.
  • Forum or Community:  Sometimes I don’t have the time, or the desire to make a phone call to ask a question.  Typing a quick question and checking the answer later is a wonderful convenience.

If a company can’t put together and maintain a great website, what does that say about how they will handle your program?

Check with the Better Business Bureau:

You can get a lot of information about a company from the Better Business Bureau (BBB) such as:

  • BBB Accreditation and Rating
  • Number of filed complaints
  • Number of resolved complaints
  • Number of unresolved complaints
  • Length of time in operation
  • Recent litigation history

Search for Reviews:

When I searched for reviews of my debt management company, I found more material than I could read.  Mostly positive, some negative.  Every business will have their naysayers, but in my opinion, what you want to pay attention to is the cumulative “voice” of all the reviews.

Check their Product Offerings

There are several types of debt relief programs including Debt Management, Debt Settlement, and Bankruptcy.  A provider cannot possibly hope to match their customers with the best program for their situation if they offer only one.  If you don’t know what kind of debt relief product is right for you, then your safest path is to chose a provider that offers multiple programs.

It’s Who You Know:

Do you know someone who has completed, or is currently enrolled in a debt relief program?  They are your greatest resource!  They’ve been there, and can be a sounding board for your thoughts and can help you decide your next move.

Struggling with debt is difficult.  Finding a debt relief provider that will help you on your way to financial freedom shouldn’t be.  If your looking for debt relief, hopefully the above tips will get your started on your journey to being debt free.

Filed Under: Blog, Credit, Debt, Featured Bar

A Personal Journey out of Debt Using a Debt Relief Service

November 14, 2011 By 19 Comments

 

Today’s post is a guest post from Travis at Our Journey to Zero Blog. I’ve been following Travis on Twitter for awhile and I became very interested in is story on using a debt relief service to get out of debt. I have had no experience using this type of service, and to be honest before reading Travis’s story, I didn’t think they were legitimate. When anyone asked me about these types of services, I really didn’t have an answer. I asked Travis about writing a guest post for us since I thought his story could be both educational and hopefully inspiring to anyone who is in a similar situation. Here’s a little more information about Travis:

Travis is the author of the Our Journey to Zero blog, and is also is a contributing writer for the My Journey Out of Debt blog in the CareOne Community.   Enrolled in a Debt Management Plan through CareOne Debt Relief Services, he shares his family’s experiences, struggles and successes as they fight their way out of debt.  As a father and husband he provides a unique perspective on balancing debt, finances, and family. You can connect with Travis on Twitter @DebtChronicles.

And now, on to the story….

There are many reasons a person can find themselves overwhelmed with debt.  Whether it be student loans, a medical emergency, or in my case years of bad choices and overspending.

My wife and I were forced to confront our debt because we could no longer meet our monthly financial obligations.  We had too much debt to be able to refinance our home or qualify for a consolidation loan. I didn’t know what else was out there for debt relief help besides bankruptcy.

Which is exactly where I thought we were headed.

Remembering hearing radio ads for debt relief programs, I started searching the internet, not knowing what I’d find, if anything.  Typing “debt relief” into an internet search engine returns a massive number of hits.  Trying to process all the information was difficult, but I managed to compile a list of a handful of companies that seemed creditable.

I began to dig into each of their websites to gather more information, as I really didn’t know exactly what it was these companies were offering.  The company that really stuck out to me had a user community that was alive with people asking questions and receiving replies not only from employees, but other customers as well.

I just could not stop reading.  Through hours of reading I learned about Debt Management, and Debt Settlement programs. It was the wealth of information, and the overwhelming support I felt emulating from this community that made me suggest to my wife that this was the company we needed to call.

Our first phone call lasted about 90 minutes.  The representative and I talked about the different kinds of programs and how they worked.  He asked me questions about our monthly income and expenses in order to determine what program was the best fit for our situation, and what our monthly payment would likely be.

At the end of that conversation, I felt that my wife and I needed to do more research and discuss whether this was the direction we wanted to go.

The representative understood, and said he would call us a few days later at 7:00pm.  I remember my wife commenting that the return phone call was the test to see if this was for real.  After all, as of just a few days prior  we hadn’t heard of this company, or the type of plan we were considering.

On the day we were to get the phone call, 7:00pm came and went.  Our hopes sunk with the big hand on the clock as it neared 7:30.  Our hearts jumped when the phone finally rang.  The representative apologized for being late, however the phone lines were down.   He knew he had promised that he would call, so he was calling us from his personal cell phone.

For close to two hours, I fired questions at him that I had written in a notebook, checking his answers with information I had gathered from the online community over the last few days.  That night, we enrolled in a Debt Management Program from CareOne Debt Relief Services.

About a week prior to our first scheduled payment, proposals were sent to the 13 accounts we included in the program.  The proposals are the mechanism by which our program provider negotiates a monthly payment and a lowered interest rate.  In exchange for accepting the proposal, the creditor closes the account.




Over the next few weeks we received acceptance notifications from many of our creditors.  We did have two that declined the first proposal.  Minor adjustments had to be made to the monthly payment amount, and a second proposal sent to those creditors, both of which were then accepted.

We were still skeptical when our first payment was made to CareOne.  However, a few days later I received an email indicating that funds were being dispersed, and I began to see payments being posted to my creditors online.  I remember leaning back in my office chair, clasping my hands behind my neck, closing my eyes and thinking, “This is happening.  This is real.  We’ve found our path out of this hell hole of financial misery”

Having our lines of credit closed and making a single payment each month has greatly simplified our lives.  We are forced to lived within our means.  No more juggling credit card balances, no more looking for the next card that will give me a promotional rate. We can instead apply that time and energy to learning how to handle our finances the right way.

Now almost half way through our 5 year program, I still visit the online community daily.  I go there for budgeting tips, and tricks to save money.  I go there when I’m having a bad day and need a little “pick me up.”  I go there when I’m having a good day to return the favor.

Getting out of debt is hard, but you don’t have to do it alone.  There are programs available to help you on your journey out of debt.  By enrolling in a debt management program, I have a structured payment plan with a lowered interest rate that allows me to pay off all my debt in a timely manner.  It provides me the resources to learn how to handle finances the right way, as well as a support system of others going through a similar experience. The community has fostered several friendships with people also struggling their way out of debt.   After years of struggling with debt, I can finally see a light at the end of the tunnel.

My friends and I are walking towards it together.

 

Stay tuned to part two of Travis’s story tomorrow where he gives you tips and advice on picking a debt relief service. 

 

Filed Under: Blog, Credit, Debt, Featured Main Tagged With: ,

Your Credit File: Do It Yourself Tips to Improve Poor Credit

October 31, 2011 By 1 Comment

If you have poor credit, do you know how to legitimately work to improve your credit score?  You may be tempted to answer an ad that claims they can help you repair your credit. But is that a smart way to improve your credit score? 

What is Credit Repair?

Since credit affects a lot in our life from buying a car to buying a home, improving your score can help you save money and mean the difference between getting a loan or being denied for a loan. This is especially true after going through a rough time in your life financially.  What does credit repair really mean? Here are some definitions:

A generally unscrupulous or illegal form of credit counseling that promises the impossible, such as erasing accurate records from your credit report. Source: Credit.com

The process of turning around bad credit by disputing errors and improving credit behavior. Source: TheCreditTruth.org

Is basically when a consumer disputes the accuracy of information in his/her credit reports. If a consumer disputes information in a credit report, the credit bureau has 30 days to verify the data and notify the consumer of its decision. It also refers to when consumers develop a spending plan to lower debt and raise their credit score. One way of doing this is to maintaining current balances below 40% of their credit card limit. Source: Financelopedia

As you can see, there are many different definitions for credit repair but they all revolve around trying to get inaccurate information off our credit report with the hope that this will raise our credit score.

How the Scam Artists Prey on You

According to the Federal Trade Commission (The government agency responsible for protecting consumers):

The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan. Source

The credit repair companies contact consumers with poor credit and promise to get them out of their dire financial situation by improving their credit score. There is one problem with that. The FTC says:

The truth is, these companies can’t deliver an improved credit report for you using the tactics they promote. It’s illegal: No one can remove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in fees, you’re left with the same credit report and someone else has your money. Source

Lesson Learned – If you have accurate negative information on your credit report, there is nothing a credit repair company can do for you. 

Credit Repair and Your Rights 

The Federal Trade Commission has extensive information on their website about your rights as a consumer when it comes to credit repair. Here is a summary of that information:

No one can legally remove accurate and timely negative information from a credit report. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Some people hire a company to investigate on their behalf, but anything a credit repair clinic can do legally, you can do for yourself at little or no cost. According to the Fair Credit Reporting Act (FCRA):

  • You’re entitled to a free report if a company takes “adverse action” against you, like denying your application for credit, insurance, or employment. You have to ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft.
  • Each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — is required to provide you with a free copy of your credit report once every 12 months, if you ask for it. The three companies have a central website, a toll-free telephone number, and a mailing address for consumers to order the free annual credit reports the government entitles them to. To order, click on annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to:

    Annual Credit Report Request Service
    P.O. Box 105281
    Atlanta, GA 30348-5281

You can use the form in this brochure, or you can print it from ftc.gov/credit. You may order reports from each of the three consumer reporting companies at the same time, or you can stagger your requests, ordering one from each company throughout the year from the central address. Don’t contact the three nationwide consumer reporting companies individually or at another address because you may end up paying for a report that you’re entitled to get for free. In fact, each consumer reporting company may charge you up to $10.50 to purchase an additional copy of your report within a 12-month period.

It doesn’t cost anything to dispute mistakes or outdated items on your credit report. Under the FCRA, both the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under the FCRA, contact the consumer reporting company and the information provider.

Remember, if the information is accurate on your credit report, it can’t be removed. If there is inaccurate information, you do not need to pay someone to remove this information for you.There are steps you can take today to get this information removed. Why pay someone to do what you can do yourself? All it takes is time, effort and consistent follow up.

Next Steps That You can Take to Help Yourself

If you feel your credit report may contain inaccurate information, it is in your best interest to start taking action and getting this information removed. Remember, the credit reporting agencies can’t remove accurate information but if there are things on your credit report that are not accurate, there are things you can do:

  • Get a free copy of your credit report. There are three sites I trust to do this. One is AnnualCreditReport.com (you have to pay for your credit score but you can see what is on your credit report). You can also use Credit Sesame  or Credit Karma to get your credit report along with your credit score. Both sites are free (no trial to  try to get you to buy something later) and they both offer additional debt analysis. You need a copy of your credit report so you have a clear understanding of what it is showing and to make sure everything is accurate. Document anything that is incorrect & gather any receipts you have that will help prove your side of the story.
  • Contact the consumer reporting company that issued the credit report to dispute any inaccuracies. Use the sample letter on Step 1 to dispute the items in question.
  • Build a budget – This single step can help you begin to get out of your financial situation by planning where your money will go each month
  • Begin to pay your bills on time (even if it is just the minimum amount)
  • If you are unable to pay your bills on time, contact your creditors directly to see about working out a payment plan.Showing the budget you have created with your income and expenses may help in negotiating with your creditors.
  • Keep track of everything you do in the process of getting inaccurate information off your credit report. This includes keeping a list of the dates and times you followed up with companies via phone or mail and make sure you write down the name of the person you spoke to. This will help avoid any errors as you go through the process since you will have dates and times to confirm when action was taken.

Removing inaccurate information from your credit report will take some work on your part, but it is worth it in the long run. In my next post, I will give you some recommendations on how to start rebuilding your credit using credit cards.

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Filed Under: Blog, Credit, Featured Bar

Don’t Let Your Unused Gift Cards Expire, Use Cardpool.com to Buy & Sell Gift Cards!

June 10, 2011 By 1 Comment

I just stumbled upon a new site called Cardpool where you can sell gift cards and buy gift cards online.  Woo hoo! I always like finding reputable sites like this because I really hate to see gift cards go to waste. Did you know there are $30 BILLION in unused gift cards just lying around? Seriously, don’t waste your gift cards people!

How Does it Work?

Cardpool connects the millions of gift card holders around the world to create a gift card exchange marketplace where customers can buy, sell, or trade their gift cards safely and securely. By gathering all the buyers and sellers in one place, Cardpool helps everyone get exactly what they want, whether its a discounted gift card or simply cash.

What Gift Cards are Available?

There are TONS of gift cards available on Cardpool.com so you are sure to find one that you are looking for. Some of the more popular gift cards are:

  • AMC Theaters
  • Best Buy
  • iTunes
  • Kohls
  • Lowe’s
  • Macy’s
  • Target
  • Tiffany & Co
  • Walmart

Just to name a few! Explore the site to see what you find, you might be surprised.

The Fine Print

Gift cards are shipped free and are guaranteed! You can buy gift cards for up to 35% off or sell gift cards for up to 92% cash back.

What are You Waiting For?

How many unused gift cards do you have in your wallet or sitting at home right now? What do you plan to do with them?! Let them sit until they expire?  :) Why not try out Cardpool.com today and then come back and leave a comment and let me know your experience!


Filed Under: Blog, Credit, Saving Tagged With:
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