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Budgeting 21 Jan 2012 | 05:11 am
Your final step is setting up a budget for yourself and your family. As we already discussed, you should keep making the monthly payments you had been putting into your settlement account but now mak...
How to rebuild credit 21 Jan 2012 | 05:10 am
The good news is, once you’ve settled all your debts, you’ve already done most of the work in repairing your credit. Your debt to income ratio, which we discussed earlier, is now looking much better....
Handling Income Taxes 21 Jan 2012 | 05:07 am
As we talked about briefly in a previous section, you will receive a Form 1099-C the following January for every debt that was forgiven over $600. If you were insolvent (more debts than assets) at th...
Post Settlement Process 21 Jan 2012 | 05:04 am
Be sure to keep records of each settlement including the settlement offer letter and also bank statements showing the money coming out of your account or copies of checks. You will want to also follo...
Negotiating with Debt Collectors 20 Jan 2012 | 03:18 am
Negotiating with third party debt collectors is very similar to negotiating with the original creditor. You will continue to make offers in flat dollar amounts, not percentages. If a creditor asks y...
Debt Purchasers 20 Jan 2012 | 03:16 am
A debt purchaser is a company that buys old debt accounts from banks. Contrary to some internet rumors, debt purchasing is completely legal. It is the same as selling any other asset like a car. Yo...
Debt Collection Attorneys 20 Jan 2012 | 03:14 am
As we said earlier, a collection attorney is virtually the same as a collection agency, the office is just run by a lawyer. Don’t panic if you get calls threatening legal action, they are almost alwa...
How to deal with Collection Agencies 20 Jan 2012 | 03:07 am
A collection agency is used by the original creditor on a commission basis to collect on your debt. You still want to maintain some lines of communication during this stage but not as often as with t...
Common Collection Tactics 20 Jan 2012 | 03:04 am
As we discussed in the section outline, third party collectors are an entirely different breed from original creditors. They are paid professionals that will use intimidation and psychological pressu...
Completing payment and documentation 19 Jan 2012 | 03:39 am
Always have a settlement letter in hand before making payment. See sample settlement offer letter below. Creditors have been known to verbally offer a settlement and then apply that payment to the f...
