Ways To Get Out Of Debt

Archive for the ‘Debt’ Category

Rhode Island has no specific statute related directly to assigning Marital Debt in a Rhode Island Divorce. Theoretically, issues concerning Marital Debt are determined under the RI Equitable Division Statute RIGL § 15-5-16.1 Assignment of property. This statute is set forth below.

If the matter goes to a full trial on the merits, which is unlikely, the judge must rely on the equitable division statute 15-5-16.1 to determine assignment of assets as well as debt. Please contact a Rhode Island Divorce Lawyer / Attorney about your RI Divorce case.

 Article by RI Divorce Attorney David Slepkow (401-437-1100)

All debt incurred by husband and wife during the Course of the marriage constitutes marital debt. Debt incurred prior to the marriage is the responsibility of the person who incurred the debt.

How is marital debt actually divided in Rhode Island Divorce? That is a very difficult and complicated question. There is no clear answer. The answer can only be determined by analytical reasoning. As a practical matter, assignment of marital debt is usually negotiated by the parties during the course of the divorce without the necessity of a trial. This article should be used for informational purposes only and not as a substitute for obtaining a Rhode Island Divorce lawyer.

Judges tend to look at the following factors when determining assignment of marital debt:

1) The court looks at whether the debt was incurred in furtherance of the Marital Partnership. Marriage is a partnership. If the debt was used for home goods, groceries, clothes, family vacations, medical bills etc. then the Court is more likely to divide the debt equitably between the parties.

If the debt was incurred by either husband or wife in furtherance of his or her own agenda then the debt is more likely to be assigned to the person who incurred the debt. For example, gambling debt, debt used in furtherance of an affair or unreasonable debt incurred without the consent of the other spouse is more likely to be assigned to the person who incurred the debt. This type of debt is theoretically “marital debt” although it is inequitable for the other spouse to have to pay. For example, gambling debt should be paid by the spouse who lost the money at the casino.

2) Who will have title and / or possession of the goods or items for which the debt was incurred? This is a significant factor. If the husband purchased a flat screen television on his Mastercard and he will get the flat screen then it is more likely that he will be assigned that debt.

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Credit Info Center Not Accredited by the BBB

Credit Info Center has NEVER been a member of the Better Business Bureau and does NOT have a grade or an accreditation. 

If Creditinfocenter.com ever have a BBB acceditation/membership and decided to cancel their BBB membership/accreditation (same thing) their accreditation seal would say “revolked” just like all others! 

Our advise to Creditinfocenter.com Stop cutting down other companies for not being members when you, yourself are NOT a member!

Credit info center is the pot calling the kettle black.

Click here to read the whole dirty story of credit info centers attempt to discredit Debt Solutions USA , Inc. www.debtsolutionsusa.com

It all started at the beginning of this year when Debt Solutions USA found out that the Better Business Bureau was accused by the Attorney General of running a pay for play scheme. At that point Debt Solutions USA, Inc. cancelled our membership with this dishonorable organization. Go to our website debtsolutionsusa.com to view ABC’s 20/20 video investigative unit report on the BBB.

The BBB gave a terror group an A rating! Wolfgang Puck received an F Rating. The BBB’s rating system is crazy!

“Right now, this rating system is really unworthy of consumer trust or confidence,” said Connecticut attorney general Richard Blumenthal in an interview to be broadcast as part of an ABC News investigation on 20/20.  He also stated “At a minimum, the BBB must disclose to consumers that its ratings system is influenced by fees.”

In an official demand letter sent to the national headquarters of the Better Business Bureau Thursday, Blumenthal called on the BBB to stop using its grading system, which he said was “potentially harmful and misleading” to consumers.

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Are you a home owner and about to start a debt management plan? We consider if your house is at risk from a charging order.

Debt management plans (DMP) are popular with homeowners because they do not force you to release equity from your property which then has to be paid towards your unsecured debts.

However one of the disadvantages of a debt management plan is that it is not a legally binding agreement.

This means that the people you owe money to can continue to take legal action against you to collect their debt. This action could include applying for a charging order against your property.

What is a charging order?

A charging order effectively makes an unsecured debt such as a credit card or personal loan balance into a secured debt against your property.

Once the charging order is in place, you still continue to make payments towards your debt which could still remain part of a debt management plan. The creditor may also be allowed to continue charging interest.

When you sell your home, the outstanding charging order debt will be paid in full out of any home equity available.

A lot of people worry that if they receive a charging order, they will then be forced to sell their home. In fact this rarely happens.

To force you to sell your property, the person you own money to must return to the court and apply for an order of sale. The court will generally not grant an order of sale unless there are very particular circumstances.

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  Unsecured debt settlement info 

      Debt settlement is the fastest and least expensive way to get out of debt period. The fact that it is interest free and many debt settlement programs reduce the principal balance by half makes people very interested. When done right debt settlement can be an absolute godsend. If you have thirty thousand dollars worth of unsecured debt and you pay minimum monthly payments to you creditors it will take you 50+ years and at least $112,000 to pay it off and your credit will be below average for that duration. With a debt settlement program, you will pay about $16,500 plus a small service fee usually between $50-$75 a month and you would be debt free in as little as 1-4 years. For instance, if you owe $30,000 in credit card debt and you have a low interest rate you would be paying at least $900 a month and it would take you 50+ years to pay it off, with debt settlement you can go into a 24 month program with a payment of $753 a month with all fees included, that’s around $150-$200 a month less than you would be currently paying with a total savings of $11,928 not including all the interest you would be saving. Lets do the math, you owe $30,000 with interest it would take you 50+ years and about $112,000 to pay it off, with debt settlement your $30,000 would become $16,500 if you add in the fee of $65 per month and you go into a 24 month program you would pay $18,072 in total. If you deduct $112,000 from $18,072 your total savings would actually be $93,928.

     If you do consider debt settlement, it is important that you choose a reputable attorney backed firm that can remove any negative marks associated with the accounts that you enroll into the debt settlement program. Debt to income ratio accounts for 50% of your credit score. Even if you have a long credit history and you have never been late on a payment your credit can still be below average because of your debt to income ratio. Another important reason you should only use an attorney owned company is the fact that the U.S. government is trying to regulate the debt settlement industry. There is a good chance that only attorney affiliated companies will be allowed to do business as debt settlement companies. Most debt settlement companies make about 15% of the total debt enrolled, most of which is taken within the first year of the program. If the company you choose in not attorney affiliated and is forced out of business, you could be left with more debt that you had before and your credit will be even more damaged. You should only choose an attorney owned company that will guarantee you free attorney representation if needed, at least 40 hours per year and make sure that all unused hours roll over to the next year.

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     Most debt settlement programs are considered hardship programs and are for people that are behind, at risk of falling behind, or have considered filing for bankruptcy. When choosing a debt settlement firm it is important to do your homework. Make sure the firm you choose is attorney owned and operated or at least attorney backed. It is recommended that you check their credibility with www.settlementratingsystem.com to make sure that the firm you choose has a good rating. Also it is important to completely understand how debt settlement works. Debt settlement is not a consolidation loan. It is a program that will help you save money to pay your unsecured debts in the future. Debt consolidation, on the other hand, is a program designed to simply reduce your interest rates among your creditors. Depending on the amount of debt that you owe, it may take literally decades to clear your name, even with a reduced rate. Not to mention, consolidation will negatively affect your credit score. Debt settlement will only negatively affect your credit while you are enrolled into the program, once you have completed the program and you have eliminated your unsecured debt you will have lowered your debt to income ratio, thus increasing your credit worthiness. You should only hire a debt settlement firm that offers a free credit restoration at the end of the debt settlement program.

     With a debt settlement program your monthly payments go into an escrow account that will be set up in your name and the debt firm attorney’s name. Make sure the debt settlement firm you decide to go with provides you with the ability to monitor your account. A reputable company will provide you with a user name and password so you can see what is going on at all times. Most good debt settlement companies reach an agreed settlement with the creditors with in the first 4-12 months of your program. However your creditors do not get paid until the money is available in your escrow account. Most debt settlement companies settle your debts from the smallest to the largest as the money becomes available. Your first actual settlement will not take place for at least three months. You must be 90 days late before your creditors will settle. Once you enroll into a debt settlement program, the firm’s attorney should send several letters including debt validation letters and “cease & desist” letters, which requests that all further communication in reference to your account be directed to them. Often times, the creditors will continue to contact you, which is completely legal. However, once your debt is sold to a collection agency, the Fair Debt Collection Act is implemented, meaning that it would be illegal for a collector to communicate with you in connection with the collection of any debts. A debt collector may not harass or abuse any person in connection with attempts to collect a debt. So the harassing phone calls will eventually stop.

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Average rents have now risen to £713 per month and are set to increase further. We consider what options you have if you are struggling to pay your rent and other debts.

During August according to figures from LSL Property Services the average rent rose by 2.1 percent bringing the average monthly cost of renting to £713. If you live in London, rent costs are even higher with a typical monthly rent costing £1025.

Rents continue to rise because of a rising demand for rented property as more and more people struggle to get a mortgage and buy their own home.
 
The problem with this is that the majority of family incomes are remaining static or even at risk of falling and so more and more people are finding it difficult to keep up with their rent payments.

Also struggling with other debt problems?

For many the way to deal with rent rises will be to budget more carefully and perhaps cut back other areas of their monthly spending.

However increasing rent costs become particularly serious if you are unable to cut back because you are also struggling with other debt problems such as being unable to pay your credit cards and personal loans.

Where this is the case you may well be tempted to pay your credit card debts before your rent meaning that you start getting into rent arrears. 

The main issue with this is that getting into rent arrears can result in very serious consequences as you could put yourself at risk of being evicted from your home. 

If you find yourself at risk of missing your rent because of other debt problems you should consider a debt solution which will enable you to reduce the amount you pay to your debts and free up the money you need to pay your rent.

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If you are in need of credit card debt relief, you’re likely to turn to an qualified expert or debt settlement company. That is certainly a good start, but earlier than you take this important step you will find a number of things you need to think about. Like what?

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Debt relief for over leveraged consumers has become bigger than ever. There is over $13 Trillion of consumer debt, with almost $2 Trillion of that amount in revolving debt. With rising interest rates and exploding debt levels, what does this mean for the American family? It means you better either be debt free, have rising income levels, have equity in your home… or start looking around for debt relief.

There are as many forms of debt relief out there as there are ways to get into debt. You’ve probably heard terms like debt consolidation and credit counseling, but have you heard of debt resolution, debt settlement and debt roll-up? Since there are so many debt relief alternatives, it is important to learn about all of the options and then assess what your primary needs are – so that you can pick the debt relief option that best fits your needs.

When evaluating debt relief, the four primary concerns for most consumers are: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the consolidation program. Be sure to evaluate each program, relative to your prioritization of these factors.

Credit Counseling
Credit counseling, or signing up for a debt management plan, is a very common form of debt relief. There are many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. So if your primary concern is to lower your monthly payment a little bit, then evaluate if credit counseling is your best form of debt relief. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts – but with lower monthly payments. On average, most online credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan DOES show up on your credit report… and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy – or using a third party to re-organize your debts. So if your credit profile is a concern for what debt relief program you select, be aware of how your future lenders will perceive credit counseling.

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It was my wife who first introduced me to debt counseling and I thought it would be just another agony uncle whom I would have to deal with. However, it was not late that I was proved wrong. It was through debt counseling that I survived the deadly debts to recount its benefits.

Debt counseling is the advice offered through experts on several debt related issues. Debt counseling has a two-pronged strategy. While the advice focuses on ways to counter the current debt load, the borrower will also be informed of methods to prevent debts from originating. Thus, debt counseling plays defensive as well as a preventive role.

The defensive strategy will be employed for situations where the debt load is sufficiently large. In my case, the debt load was substantially large. My personal savings and monthly income would have lessened the burden a little. But, there were other expenses too that needed to be paid through the same limited income. By channeling my income towards debt settlement, I would only have paved way for newer debts.

Debt counseling showed the way out. Large number of people in the UK owe their freedom from debts to debt counseling. In fact, the very first lesson that I learnt from debt counseling is that I was not the only person who had debts. There were many others who have even messier finances. The statistics are really appalling. How come so many people, belonging to so rich a country as the UK, be so vulnerable to debts? However, people do incur debts. A desire to have almost every material comforts, often pushes people to spend rashly. On most occasions, the expenditure is without any consideration for the sources of payment.

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However, as the pressure of the creditors mounts, the very first priority of debt counseling will be to design a way out for the debtors. Presently, there are a number of debt elimination options available in the UK, namely debt consolidation loans, debt consolidation mortgages, debt consolidation through remortgage, home equity loans and credit cards. Each option has its own set of advantages and disadvantages, and it will be really difficult to make a choice for one of these. Through debt counseling, borrowers can also get help during the product selection process.

Since I had a large debt load, the debt counselors suggested that I take up a debt consolidation loan. They did not force the product on me. This is one of the peculiarities of debt counseling. The debt counselor presents an impartial view of the various products. However, not all debt counselors adopt a similar view. Most of them will sell their products in the guise of debt advice. Borrowers need to stay clear of such advisors. As in medical sciences, second opinion is always beneficial during selection of debt settlement products. There are a large number of profit and non-profit agencies and individuals who provide genuine and professional advice. Some of these, like Independent Financial Advisors are bound by the rules laid down by the Financial Services Authority to offer genuine advice.

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Whenever the topic of finance is discussed, it is important to note that everyone’s situation is different and that financial advice should be tailored to an individual’s particular circumstances with the help of a professional advisor.

Everyday our mailboxes are flooded with advertisements, catalogues, and “pre-approved” credit card offers hoping to deplete our savings and draw us deeper into debt. In the latest Survey of Consumer Finances conducted by the Federal Reserve, concern has been expressed that the rising level of debt may become “excessively burdensome to families.” Similarly, the American Bankruptcy Institute reports personal bankruptcies are near an all-time high and in 2004, more than 1.5 million were declared.

Debt is a scary place to be; it is emotionally and financially threatening. It limits our ability to meet daily expenses, invest for the future, and creates a long chain of financial difficulties. The strains put on our relationships due to these financial pressures make it imperative that we find ways to effectively deal with debt. Like all problems, it will dangerously compound if we ignore it, so we must confront it head on to positively change the condition of our lives.

Permanently resolving our debt situation involves three things: gaining an awareness of the different types of debt, understanding the psychologyand circumstances that led to the current situation, and devising an effective debt reduction, savings, and wealth acquisition plan.

Put simply, debt falls into two categories: investment debt and consumer debt :

Investment debt is an obligation that one takes on in order free up funds, generate cash flow, and build wealth. It is the leverage of other people’s money (OPM) to purchase assets that substantially increase in value or produce income. A few examples of investment debt include mortgages for rental properties, business loans, and stock margin loans. The best forms of investment debt produce positive cash flow. When debt produces positive cash flow, it generates more money to invest and does not reduce your existing income.

Consumer debt is a financial commitment used to purchase items that have no substantial resale value or depreciate after they are bought. Examples of consumer debt include: automobile loans, personal loans, personal lines of credit, credit card debt, and more. It can be wise to buy an item using consumer credit, if the after-tax return on your investments is greater than the interest rate on your debt. With this approach, you have more money available to invest at a higher rate of return. This is a riskier strategy and should only be employed by sophisticated investors. It is also important to note that one person’s consumer debt is another’s investment debt. The money one expends servicing debt goes to help another build their wealth. Over time, your goal should be to turn the tables.

Read the rest of this entry »

Whenever the topic of finance is discussed, it is important to note that everyone’s situation is different and that financial advice should be tailored to an individual’s particular circumstances with the help of a professional advisor.

Everyday our mailboxes are flooded with advertisements, catalogues, and “pre-approved” credit card offers hoping to deplete our savings and draw us deeper into debt. In the latest Survey of Consumer Finances conducted by the Federal Reserve, concern has been expressed that the rising level of debt may become “excessively burdensome to families.” Similarly, the American Bankruptcy Institute reports personal bankruptcies are near an all-time high and in 2004, more than 1.5 million were declared.

Debt is a scary place to be; it is emotionally and financially threatening. It limits our ability to meet daily expenses, invest for the future, and creates a long chain of financial difficulties. The strains put on our relationships due to these financial pressures make it imperative that we find ways to effectively deal with debt. Like all problems, it will dangerously compound if we ignore it, so we must confront it head on to positively change the condition of our lives.

Permanently resolving our debt situation involves three things: gaining an awareness of the different types of debt, understanding the psychology and circumstances that led to the current situation, and devising an effective debt reduction, savings, and wealth acquisition plan.

Put simply, debt falls into two categories: investment debt and consumer debt :

Investment debt is an obligation that one takes on in order free up funds, generate cash flow, and build wealth. It is the leverage of other people’s money (OPM) to purchase assets that substantially increase in value or produce income. A few examples of investment debt include mortgages for rental properties, business loans, and stock margin loans. The best forms of investment debt produce positive cash flow. When debt produces positive cash flow, it generates more money to invest and does not reduce your existing income.

Consumer debt is a financial commitment used to purchase items that have no substantial resale value or depreciate after they are bought. Examples of consumer debt include: automobile loans, personal loans, personal lines of credit, credit card debt, and more. It can be wise to buy an item using consumer credit, if the after-tax return on your investments is greater than the interest rate on your debt. With this approach, you have more money available to invest at a higher rate of return. This is a riskier strategy and should only be employed by sophisticated investors. It is also important to note that one person’s consumer debt is another’s investment debt. The money one expends servicing debt goes to help another build their wealth. Over time, your goal should be to turn the tables.

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