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      February 19, 2018

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Related Articles

Benefits of Debt Settlement

Debt Consolidation vs Debt Settlement

Debt Relief vs Bankruptcy

Pitfalls of Declaring Bankruptcy

Reasons for Debt Consolidation

The Bankruptcy Process Explained

What Is Debt Consolidation?

What Is Debt Negotiation?

What Is Debt Settlement?

What To Do if You're In Debt

 

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What Is Debt Negotiation?

According to the United States Census Bureau, 69 percent of Americans are in debt by an average of $70,000.

The same report indicated that consumers with the greatest amount of growing debt were those in the age group of 35 to 45, with roughly $108,000 in debt. Those aged 45 to 55 were carrying $86,500 in debt and people aged 55 to 64 were saddled with $70,000 in debt.

So how do people get so far in debt in the first place?

All it takes is one job loss, one health crisis or one unexpected expense for the average American to become financially stressed. Once a personís credit is over-extended, it creates a vicious cycle of paying only the minimum balance and accruing penalties and fees until the original amount owed has tripled or worse.

If you are among the 69 percent of Americans who are carrying around more debt than you can reasonably pay off, then itís time to explore options for reducing the financial burden.

There are a plethora of companies which offer debt negotiation services. However, not all debt negotiators are created equal.

The concept behind debt negotiation is to convince creditors to reduce the total amount of money owed in lieu of a set fee. The set fee usually is required to be paid up front.

Sounds like a great idea, doesnít it?

Thereís only one problem Ė most for-profit debt negotiation companies are nothing more than crooks. They require hefty, upfront fees for their services, and then not only fail to contact your creditors on your behalf, but also will not put any of the money you gave them toward your owed debt.

So how do you know if youíre about to be taken by a company that has no real intention of helping you reduce your debt?

The Federal Trade Commission offers the following warning signs for identifying fraudulent debt negotiators:

  • They will promise they can reduce your debt to the point that youíre paying pennies on the dollar for what you actually owe
  • They will promise that some of your debt will be eliminated entirely
  • They lie and tell clients that unsecured creditors do not sue debtors for non-payment
  • They claim they can remove negative information from your credit report

Debt negotiators are not lying when they say they can negotiate with creditors on your behalf. However, what many fail to disclose to clients is that creditors are under no obligation to agree to a debt negotiation.

Debt negotiation can be a very effective tool for consumers looking to get out of an overwhelming debt situation. Finding a quality debt relief service is an important first step in the process.

Credit Utilization Rate Explained By National Debt Relief

Credit utilization ratio is an important factor in computing for credit scores and National Debt Relief explains it in more detail. The article titled "Understanding Your Credit Utilization Rate and How to Improve It" released February 14, 2018, helps ...

Published:  Sun, 18 Feb 2018 10:52:00 GMT



Consumer Alert - Debt relief promises: Tips for choosing a debt relief service that keeps its word

OTTAWA, Feb. 15, 2018 /CNW/ - Whether trying to catch up on holiday bill payments or dealing with an unexpected life event, most Canadians would agree: struggling with debt is not what they are looking forward to in 2018. Fact: According to recent data ...

Published:  Thu, 15 Feb 2018 10:33:00 GMT



EU's Moscovici calls for Greek medium-term debt relief deal in June

ATHENS (Reuters) - Greece and its lenders must agree on measures for medium-term debt relief in June, before Greece exits its bailout later in the summer, Europe's Commissioner for Economic and Financial Affairs Pierre Moscovici said on Thursday.

Published:  Thu, 08 Feb 2018 08:47:00 GMT



Courts can examine interest rate on farm loans in states having debt relief laws: SC

In a significant verdict, the Supreme Court today held that the courts can scrutinise the rates of interest being charged by banks from farmers in states where debt relief laws are in place to deal with rural indebtedness. In a significant verdict, the ...

Published:  Fri, 16 Feb 2018 08:20:00 GMT



EU's Moscovici 'Especially Optimistic' on Greek Debt Relief

ATHENS (Reuters) - European Commissioner for Economic and Financial Affairs Pierre Moscovici said on Thursday he was "especially optimistic" about efforts to reach a solution on Greek debt relief. Greece's third bailout ends in August and debt relief is ...

Published:  Thu, 08 Feb 2018 03:39:00 GMT



Cuba Creditors Offer 'Very Significant Relief' in Debt Proposal

Cuba's commercial creditors have offered "very significant debt relief" in a proposal sent to cash-strapped Havana in late January, according to two advisers to the group, in a sign that holders of the defaulted debt are ready to ramp up the pressure.

Published:  Tue, 13 Feb 2018 08:33:00 GMT



Debt Relief 101: Things To Know About Your Debt

Debt is a common term found in a lot of industries today, especially if we realize that debt can be used by almost all people in all walks of life. Many see debt as an answer and as a solution to their financial needs. On the other end, some people also ...

Published:  Fri, 16 Feb 2018 14:15:00 GMT



FTC Accuses Student Loan Debt Relief Operation of Deceiving Consumers

On February 7, 2018, the Federal Trade Commission ("FTC" ) announced an enforcement action against a student loan debt relief operation, claiming it deceived consumers out of $28 million by falsely promising that their monthly payments would go ...

Published:  Wed, 14 Feb 2018 19:30:00 GMT



Student loans: From repayment to forgiveness to consolidation, your 5 biggest questions - answered

Sometimes student debt can be discharged in bankruptcy ... Different from federal loan consolidation - which combines together multiple debts and might actually increase your interest rate, but qualify you for additional repayment or forgiveness ...

Published:  Thu, 15 Feb 2018 15:20:00 GMT



Courts can examine interest rate on farm loans in states having debt relief laws, says Supreme Court

In a significant verdict, the Supreme Court today held that the courts can scrutinise the rates of interest being charged by banks from farmers in states where debt relief laws are in place to deal with rural indebtedness.

Published:  Fri, 16 Feb 2018 22:23:00 GMT



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