Month: January 2018

Debt settlement is not always the best option

The situation is all too familiar for all of us. Unemployment is at its all-time high and credit scores are down. Since market values of homes are also down, the equity of homeowners has practically gone down drain. Under this prevailing condition, you have practically no safety net to settle all your obligations – mortgages, credit card debts and payday loans.

There are several options that you can consider to get out of this financial mess. You may start now by adjusting your budget and try to get out of your debt hole. Of course, you can opt for bankruptcy. But this is the last thing that you should do. You can also seek the help of your lender and work out an arrangement with them if they are offering some sort of a hardship program. Finally, you can seek the professional help of a debt settlement company.

There are varying opinions regarding the use of debt settlement as there are pros and cons when it comes to this option. It is important that you explore and understand the strengths and weaknesses of such option.

Debt settlement is a pretty simple financial tool that you can use if you are having some problems paying off your debts. The general concept of debt settlement is that you agree to pay a lump sum amount which is lesser than what you actually owe your lender and your debt is considered settled. For example, if you have a $5,000 loan with your bank and you agree to “settle” it by paying in full $3,000 then your debt with the bank is fully settled. Having done this, you must be aware that this transaction would entail a negative information that will be reflected in your credit report. Incidentally, this is one of its downsides.

Before you decide to engage the services of a debt settlement company, it is important that you are fully aware of what you are getting into. You must go beyond the “nice things” that you see on the adverts of debt settlement companies. Surely, there are several downsides that you have to take into account if you decide to avail of their services.

Your Credit Rating will suffer

This is the first thing that will happen once you decide to engage the services of a debt settlement company. As soon as you avail of their services, you will immediately be requested to stop making payments and cease all communications with your bank or lender. These default payments will be reported by your lender to the credit bureaus and the negative information will be reflected in your credit report. This information will remain in your credit report for the next seven years.

Your Lender will Engage the Services of a Third Party Collection Company

This will be considered as a separate collection event and will again be included in your credit report. Needless to say, this will remain your credit files for the next seven years. You will be advised by your debt settlement company to ignore them as well. And this is where your situation can really get serious.

You will get acquainted to a Process Server

A visit by a process server means that you have been sued by the debt collection agency for non-payment of your debt. This can lead to default judgment if you choose not to respond to the summons. Again, this will be reflected in your credit report and will remain there for the next seven years.

The Court will Issue a Writ of Sequestration

Now, this could only mean two things – seizure of your assets or garnishment of your salary. Either way, this information will again be reflected in your credit files in the next seven years.

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Online payday loans

The recent grounding of flights in and out of the USA due to the ash cloud from the volcano in Iceland left people stranded in their holiday resorts. For many this was simply an inconvenience as their holiday or credit card insurance covered all their subsequent expenses but others found themsleves without the appropriate cover and had to fund their extended stays themselves.

Commonly people save all year to go on holiday for a week or two. It is therefore not surprising that an unforseen extension of an additional week or two meant that by the time holiday makers were finally able to fly back to the USA, large numbers of them had run out of money.

It can be daunting when there are no funds in your account and yet all your monthly bills are due to be paid. It’s particularly frustrating when you know that once your salary hits your account, everything will be OK. It’s those few days or weeks in the interim that are the problem.

This is where online pay day loans come into their own. They offer short-term loans which are basically an advance on your salary. As soon as your next salary payment is made you then repay the total loan amount. This avoids getting into long-term debt whilst resolving your immediate cash problems.

The application process is quick and easy as everything can be done online, you don’t even need a fax machine. Online payday loan lenders will normally respond to you with their decision within the hour and if you are approved your account will be credited with the full loan amount within 24 hours.

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Flight to world cup possible with payday loans

Since they graduated from University in 2000, it has been a bit of a tradition for my twin brothers to go to at least one USA match during the World Cup. This World Cup they managed to get tickets for USA’s final first round match against Slovenia.

Unfortunately, the only seats they could get on both the outward and return flights were in Business Class. This obliterated their savings and left them with no funds for their accommodation. Normally they would just have paid for the hotel using their credit cards but at the time their cards were pretty much maxed out as they had not long returned from a stag do in Ibiza.

In order to pay for their flights, they each took out a pay day loan. USA payday loan companies now offer a service where you can apply entirely on-line by simply completing an application form and uploading your supporting documents such as ID and payslips. Of course there is still the option of faxing your application form if you prefer. My brothers used both methods as one had access to his PC and was able to do everything on-line whilst the other completed the form using his iphone and faxed his documents from the pub! They both got pretty instantaneous replies informing them that their loans had been approved and that the money would be in their accounts the next day.

Each of their loans was automatically repaid on the very same days as their salaries were paid into their bank accounts without them having to do a thing.

They flew out to South Africa on Sunday and are looking forward to USA’s match this afternoon. Fingers crossed USA’s performance won’t lead to the crowds booing them off the pitch as they did when they played Algeria otherwise my brothers will be inconsolable! Come on USA!!!

The twins were astounded at the speed of the process and the fact that no credit check was required for this type of loan.

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