7 Effective Ways to Use Debt Settlemnet

Approximately 43 million Americans have at least one account that is 90 days or more late. There are several methods that can be used to pay off a debt such as paying in installments, paying the debt in full or negotiating with the creditor or collection agency to offer a debt settlement. Apply for debt settlement if an account is more than 90 days late.  

Debt settlement is best used for unsecured debt such as: credit cards, medical bills, department store cards, student loans, personal loans or other small debt that have been reported to a collection agency.

Debt settlement can consist of offering a one-time payment or installment payment that is less than the full amount owed. The remaining debt owed is forgiven.

The advantages of a debt settlement are: it eliminates a monthly payment, puts you back in good standing with the company, and reduces the total amount of debt you owe, helps boost your credit score and helps you look more favorable to potential creditors and lenders.

The disadvantages of a debt settlement are: it may take months before an actual payment is applied to your debt, you may be subjected to legal action while waiting for a payment to be made on your account(s), using their service may be reported on your credit report which lowers your credit score, you will be required to participate in a payment plan for 3-5 years and will be required to pay a monthly fee plus setup or other fees. Here are 7 effective ways to negotiate a debt settlement.

1. Contact information. Prior to negotiating log the person’s name, direct phone number, email address, and the name of the company. Avoid providing your home or work phone number or employer name.
2. Negotiation type. Negotiate either over the phone or in writing. Keep accurate notes of what the representative says and everything you say.
3. Negotiate. Don’t agree to the first offer. Don’t offer to pay more than 50% of the outstanding balance.
4. Documentation. The company may ask for proof of income, assets or other debt owed to determine if you can the debt. Block out your bank account numbers, SSN, DOB, phone numbers and any other personal information when submitting documentation.
5. Proof. If they have informed you they are recording your conversation, you can also record the conversation and inform them you are doing so. Request a debt settlement agreement confirmation letter.
6. Don’t accept no. If your debt settlement offer is rejected consider asking the company to lower your interest rate, lower your monthly payment, and waive any late fees or other fees.
7. Payment. Pay by money order or cashier’s check which is the safest method. Avoid paying by personal check.

5 Simple Ways to Pay Off Debt

Many Americans have still not changed their mindset and financial behavior. Stock market volatility, administration changes and federal and state regulatory changes should make everyone improve their financial behavior. Many Americans allow fear to cause them to make hasty decisions. Don’t let fear lead you to make a decision you will regret in the future.

If you owe debt and have the money - pay it off. Forget about the rumors that others have said about keeping a balance on your accounts. Paying off debt will help you maintain a good relationship with your creditors, stop those harassing calls, increase your credit score and reduce financial stress.

To pay off debt you have change the way you think about money.  Money is a tool that can be used either to generate debt or to generate wealth. There are several ways to get out of debt. Use these five simple ways to pay off debt, increase your credit score and improve your financial life.

TRACK SPENDING

A budget helps you identify your total monthly income, how much you owe and how much you spending each month. A budget also quickly identifies areas where you may need to reduce spending. Use online banking or automatic paycheck deduction to pay bills. 

SPEND LESS

Buy needs vs. wants, control your spending, don't buy in excess or more than you need, keep debt (excluding mortgage or rent) at 15% of your total monthly income (after taxes). Keep rent/mortgage at 30% of your total monthly income. Reduce expenses by 30-50%. Delay purchases until you have the cash to purchase them.  

PAY IN FULL

Pay the balance in full each month prior to the due date or as soon as you receive the bill, which helps to avoid, paying finance charges. This also reduces your chances of going into debt and making late payments. 

PAY MORE THAN ONCE

Many consumers do not realize that they can send in payments for their debts multiple times a month.  Pay half of the bill balance with first paycheck of the month then pay the remaining balance with second paycheck of the month. Pay weekly instead of monthly or pay the minimum monthly payment the first week after you get the bill. Then each week pay as much as you can toward the monthly balance and repeat every month.  

PAY MORE THAN MINIMUM MONTHLY PAYMENT

If you pay the minimum monthly payment, you will end up paying 2 to 3 times what you actually purchased due to finance charges that accrue on your balance. Send more than the minimum monthly payment each month.

STOP CHARGING

Keep credit card balances at 20% or below the credit limit.  Having accounts with balances above the credit limit will decrease your credit score and may increase the chances of your credit limit being reduced or your credit card account may be closed.

Generate Wealth Right Now

                                              

Whatever you have been doing before regarding your finances stop doing it. See the advice of a true financial expert to help you blast away bad financial habits and achieve the life you always wanted. 

You go to see a dentist when you have a tooth problem, a doctor when you are sick, a mechanic when you car needs repair, a lawyer for legal advice, so why don't you hire a financial expert to help you with your finances? Well you still have time.  

Take charge of your finances now and go into 2016 with a bang!

I also have some great financial programs for you!

Financial Group Coaching

I now offer Financial Group Coaching. Group coaching will offer you financial advice, tools and resources in a collaborative forum with other like-minded individuals. This is an exclusive program with a small number of participants.

If you are interested in group coaching contact me at consulting at hefreemanenterprises dot com. You can buy now at https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=2GAW67KF35WHN.

If you want to go deeper and get more assistance here are some high impact programs to help you with your finances.

Financial Freedom Program

If you owe lots of debt, have bad credit and overspend, I have a Financial Freedom Program. After completing this program clients: will owe less money, will increase their credit score, free up money for unexpected emergencies, increase their household cash flow, will stop overspending, be able to buy what you want and need, best use of the money you have, and be able to plan for the future. I had a client who was struggling with debt. They had been a renter for twenty years and did not believe homeownership was possible. I helped the client create and maintain a budget, become debt free, increase their credit score by 120 points and was approved for a mortgage loan with a low interest rate. The client was the first person in her family to become a homeowner and became a role model for her daughter who also became my client. If you want to become debt free, have good credit and have money left over each month click here to purchase this program now! 

Financial Makeover Program

If you owe lots of debt and have bad credit I have a Financial Makeover Program. After completing this program clients: will owe less money, will increase their credit score, free up money for unexpected emergencies, and increase their net worth. I had a client that filed bankruptcy, had a repossession, had bad credit, and no savings. I helped the client rebuild their credit and they were able to purchase a single family home with a low interest rate, purchase two vehicles and pay down credit card debt. The client was also able to create financial goals such as starting a business. If you want to become debt free and have good credit click here to purchase this program now!

Credit Score Program

If you have bad credit, I have a Credit Score Program. After completing this program clients: will feel better, will get easily approved for personal or business credit, will have negotiating power, increase job opportunities, will save money in fees, will increase liquidity, and have more options and more choices when spending money. I had a client who had a 420 credit score and I assisted them by increasing their credit score to 700. They were able to purchase a home and create financial stability for their family. If you want to have, good credit click here to purchase this program now!

Only a few spots left. Sign up here. https://www.eventbrite.com/e/financial-coaching-via-email-with-harrine-freeman-tickets-18894997446

 

The second is a Phone Financial Coaching Program. In this program, you will get financial advice for 45 minutes once a week for 5 weeks. You get expert advice to all the financial topics you ever wanted to be answered. 

Topics include but are not limited to: credit, debt, budgeting, saving, investing, retirement, paying for college, paying off student loans and more.

Only a few spots left! Sign up here. https://www.eventbrite.com/e/financial-coaching-via-phone-with-harrine-freeman-tickets-19049620929

If you woud like more information feel free to contact me at consulting at hefreemanenterprises dot com.

I also create customized programs to fit your specific needs. Take action today. Don’t wait. Contact me at consulting at hefreemanenterprises dot com.

Kind regards,

Harrine Freeman

Owner, H.E. Freeman Enterprises

www.hefreemanenterprises.com

Financial Expert/Speaker/Author

As seen in Forbes, MSN Money, Marketwatch, NASDAQ.com, Yahoo

http://hefreemanenterprises.blogspot.com  (blog)

http://www.twitter.com/harrine

Be Your Own Santa Claus

                                                              

Santa Claus or St. Nicolaus is known as a legendary saint and is the symbol of generosity. He gives to the less fortunate, goes all over the world, carries a naughty or nice list, loves children and inspires imagination. Santa answers and fulfills the hopes, wishes, thoughts, and prayers of children all over the world.  Santa symbolizes a belief in something.  The mere belief in his existence shows faith, innocence and a strong belief system. Santa Claus is always happy and full of joy.  Santa is young at heart and has an open heart showing love for all mankind.  Santa provides gifts to children and has a vast knowledge and memory of what each child deserves as a gift for Christmas.

Giving unites people of all races, cultures and backgrounds.  Giving eliminates fear and helps to relieve your burdens.  Giving to others helps you discover who you truly are.  The best way to give to others is to give to yourself first. Start by being the best person you can be. 

Make a commitment to learn something new every day.  Make another commitment to manage your finances on a regular basis.  Many hopes, wishes, thoughts and prayers are not fulfilled due to lack of money or not properly managing your money.  Money will not solve all of your problems but effectively managing your money with help you develop good habits that will transcend into other areas of your life such as patience, discipline, accountability, and time management.  Here are 19 ways to be your own Santa Claus.

1. Change Your Mindset.  Change the way you think about money. If you believe you will always be in debt or always be broke you will.   
2. Develop a Financial Plan. Write a list of your entire total monthly expenses including debt and write down your total monthly income after taxes.  If you do not have any money left over (at least 10% of your monthly income) look at the areas where you can reduce spending.
3. Pay down debt. Pay ½ the balance with the 1^st paycheck then pay the remaining balance with the 2^nd paycheck or pay the minimum monthly payment when you get the bill, then each week pay as much as you can toward the balance.
4. Become debt free. Pay more than the minimum monthly payment which helps pay your balance down faster so you can get out of debt. Keep debt balances at than 10% of your monthly income.
5. Keep money in your pocket. Do an annual check on your heating system or insulate your attic. Automate thermostat settings and use the lowest setting. Seal drafts and cover floors to retain heat. Open blinds during the day to let heat in. Find other ways to save money.
6. Plan for the unexpected. Create an emergency savings account to cover all of your monthly bills and expenses for 9-12 months. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D.
7. Go green. Help save the environment by filing your taxes electronically and get your refund in 2 weeks from the date of filing. Use tax preparation software like Turbo Tax or Tax Cut to help with the tax filing process. Purchase energy efficient appliances.
8. Shop like the rich. Set a budget and find bargains online, use coupons or shop at holiday sales. Mix and match basic pieces with fashionable accessories such as belts, earrings, bracelets, shoes and purses. Buy knockoff pieces for extra style. Shop at discount stores and outlets.
9. Cut back. See what areas you can reduce spending in your budget. A balance budget recommends 35% should go towards housing, 15% towards debt, 25% towards transportation, 10% towards savings, and 15% towards other expenses.  Reduce spending by 30-50% each month.
10. Save. Do at least one thing a week to save money, i.e. bring your lunch to work or bring coffee from home one day a week.  
11. Limit Credit Card Usage. Use your credit card for emergencies only.  Keep credit card balances at 20% or less of the credit limit. Pay balances off at the end of each month.
12. Plan for the future. Open a retirement account and save at least 10% towards your retirement each month. You will need 70-80% of your pre-retirement salary for a minimum of 20 years to have enough money during retirement or at least $1,000,000. 
13. Don’t be a question mark.  Know your net worth (assets - liabilities). Verify your net worth annually. Know how much you earn, how much you owe and how many assets you have. Use the figure as a baseline to increase your net worth on a yearly basis. 
14. Get Your Financial House in Order.  Organize financial papers and store in a centralized secure location. Backup financial documents and records saved on your personal computer.  Make copies of all personal documents and store in a waterproof fire proof safe.  Develop a will and update beneficiaries for life insurance policies.
15. Get insured. Make sure you have adequate health, auto, life, disability and long-term care insurance.
16. Don't stop at retirement. Don't just plan for your retirement, plan for your children's retirement. If you plan for your children's retirement or your grandchildren's college education this will ensure you have more than enough money to retire and enjoy your golden years.
17. Do better than your parents.  If you parents retired at 65 or had to work until they were 70 and had nothing to show for it, do better than your parents. If you retire at 55 be sure you have at least enough money to live on for 20 years.
18. Further Your Education.  Take training classes or get a college degree to increase your skills set and salary. Plan to take at least one training course every year during your career to stay current with industry standards and technology advances.
19. Consult a professional.  Contact a financial advisor or financial planner to help you determine your financial goals, where you want to live, the age you want to retire and the lifestyle you would like to have when you retire.