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Archive for September, 2009
Annuity Rates
Tuesday, September 22nd, 2009Baby Boomers Unite
Tuesday, September 22nd, 200976 million baby boomers were born b/t 1946- 1964 and will need income. Right now they control over 16 trillion in assets. SYD Financial can help these baby boomers retain their assets through their fixed annuity programs. SYD offers Single premium policies as well as flexible policies. Indexed annuities will allow boomers to participate in market fluctuations and protect them on the downside.
Guaranteed income for life, guaranteed interest rates, guaranteed returns. Fixed annuities allow you the client peace of mind with the flexiblity of investing your money.
why you should settle debt
Tuesday, September 22nd, 2009Debt Negotiation is here and is primed for big things. SYD financial is launching a new technique to benefit their clients. Performance based models. SYD gets paid only if they do work. Contact a rep to discuss how much they can save for you
How Does Debt Settlement Work?
Tuesday, September 22nd, 2009Debt settlement or credit card debt settlement is consistently used by people who cannot afford to pay their debt, and are highly unlikely to be able to afford to pay it, but who wish to avoid bankruptcy. The process consists of lengthy negotiation by a third party with your creditors in an effort to reduce your debt balance drastically in order to clear the debt off.
There are certain companies who will negotiate with your creditors to obtain reduced settlement amounts for an up front fee- SYD Financial also offers a Performance Based Plan, you only pay based on the settlements. These companies are called Debt settlement Companies. Debt settlement or credit card debt settlement follows a pretty much standard format, below is an example of how the settlement process works:
Credit card debt settlement Example:
A debtor has a debt of $50,000 over four credit cards and is struggling to make even the minimum payments each month. A credit counseling service has already attempted negotiating with the creditors but the reduced payments were still too high for the debtor to pay. Bankruptcy is an option, but the debtor does not wish to go down this route as it will destroy his/her credit rating for at least the next seven years, nor does the debtor want to go to court, which would be inevitable if this path was chosen.
Another option, and the one the debtor opts for, is to work with a credit card debt settlement company who advises that the following four steps are taking in order to get rid of the $50,000 credit card debt:
Refrain immediately from making any further payment to creditors: The debt settlement company asks the debtor to stop paying his/her creditors with immediate effect and instead to start depositing a set amount each month into a trust account created by the company.
Collection calls are passed on: Once payments begin to get behind the credit card companies will start to call the debtor with requests for payments these are effectively passed on to and handled by a representative from the debt settlement company.
Negotiation begins: As money is continually being paid into the trust account, the debt settlement company representative will begin negotiations with the creditors.
Settlements of between 40-60% are acquired one by one: Part of the negotiation process is getting the credit card companies to accept the fact that the debtor cannot afford to pay the individual debts in full and as a result they agree to accept a much reduced amount, often between 40% to 60% of the outstanding debt.
These settlements do not happen all at once, but as they do the debtor is able to pay them off using the money deposited in the trust account. It is important however, that any extra funds the debtor finds are deposited into the trust account also. It is completely possible that this debt could be completely cleared in as little as two years, depending on how successful the negotiations have been.
It is irrespective whether it is a credit card debt settlement program or one that includes other forms of debt, the initial thing you should do is to stop paying your creditors and forward payments to your debt settlement company instead, without doing so you risk not having funds in place when an agreeable settlement is offered.
There are certain debts that you can be settled with these techniques and those that can’t as they are excluded from settlement programs:
Debts that can be settled:
• Unsecured Credit card debt
• Medical Bills
• Gas/store cards
• Personal loans
• And basically anything credit that is unsecured
Debts that can’t be settled:
• Tax debts
• Alimony,
• Child support,
• Mortgages,
• Car loans
• Student Loans that are covered by federal insurance
How much can I expect to pay for a settlement service like this and how long will it take to clear my debt?
The usual fee that a debt settlement company charges is based upon the size of your debt, the number of accounts that are being settled and the amount you will actually save through the settlement company’s efforts. It usually equates to between 25-35% of the balance that is forgiven by the creditors. SYD Financial’s fees are substantially less than industry standard. Please call us at 866 364-9161 for a no obligation quote today.
Therefore, if we use the example above and the debtor saved 50% and the settlement company charges 25%, the charge will be $6250. This would mean that the actual settlement saving to the debtor is around 32%.
The whole process can take as little as 2 years but could extend to 4 years, but this is mainly dictated by the size of the debt being settled.
Once my debt is cleared is it really…cleared?
Generally, once both sides have agreed upon a settlement and the debt has been paid off, as per the agreement, most creditors will not pursue you for the remaining balance.
Unfortunately, any proportion of debt that has been forgiven by creditors is called ‘cancellation of debt income’ and under IRS guidelines is still taxable!
Comprehend how debt relief plans can help you get out of debt
Tuesday, September 22nd, 2009Right now there are so many Americans who are greatly ailing from this horrible economic disaster. Such a large amount of financial sectors have been ripped so negatively over the past 12 months that we are realistically on the verge of falling into a huge recession. This is forcing many consumers into a extremely dangerous situation concerning their financial picture. One problem remains that is especially affecting American consumers in a negative manner and that is credit card debt. But there is hope for these people and that is the advantages of signing up with a debt settlement program.
Credit card debt settlement is one of the only credit card debt relief programs that can truly save people a lot of money, and currently with the way things have been heading everyone can benefit from saving additional income. Each thirty days consumers will be able save money that could actually go towards paying their mortgage helping to keep them out of a foreclosure proceeding.
Many debt reduction services do not benefit people as much as debt settlement. Understandably the most lucrative benefit from utilizing a process like debt settlement is how quickly someone can find their families getting out of debt. The credit card banks would like the consumer to just continue paying their minimum payments for what very well may be up to thirty years. Throughout this paying process the consumer will end up paying back more than five times the original debt owed in interest alone. This is such a large amount of funds and would definitely help people out if they could keep the money for themselves and not give it to the scandal ridden credit card banks.
Market Rally is for Suckers
Monday, September 21st, 2009Well the S&P is up 56% since 3/9/09 and Mr Bernanke is saying the recession is over. Go for it cash back into the market, increase 401k contributions, hmm even plan a vacation. Be Leery!!! have we seen corporate profits rebound, consumer spending, and an active credit market. NOPE- suckers rally.
Banks have been rescued not our economy
Corporate profits have risen from cost custting not increased sales
Banks are not lending to consumers or small business
Unemployment is still pushing higher
Institutions are investing shall we say wisely- trap for the consumers as we tend to follow whats hot.
Cash for Clunkers and 1st time homeowners relief cmon now.
As you can see we are not ready to rebound from the depths of hell. With no economic recovery in sight it is time to utilize what SYD Financial has to offer. SYD can help you relieve yourself of debt and protect your assets by using the features of tax deferred fixed annuities. Do you want to preserve your nest egg for your family ask SYD about their insurance programs.
In summary read what you want, beleive what you see but understand the articles we read in the papers are smoke and mirrors to make us believe we are heading in the right direction. its all about being cyclical and the time is here to settle debts. Contact SYD
Legislation Targets Fees That Can Add To Consumer Credit Debt
Monday, September 21st, 2009Consumers will soon see the benefits of federal legislation aimed at reining in abrupt interest rate hikes and high late fees that can add greatly to their credit card debt.
Now, Senator Chris Dodd, a Connecticut Democrat who chairs the Banking Committee, is introducing new legislation that will follow up on these provisions by targeting the high overdraft fees that many financial institutions charge their customers.
“Excessive, automatic overdraft fees are forcing many American families deeper into debt at a time when they are already struggling to make ends meet,” said Dodd as he announced his new legislation.
Under the legislation, financial institutions would have to create an opt-in program, where consumers would be able to have their cards simply declined for insufficient funds rather than paying a fee that can in some cases can run well over $30 even if an account is over-drafted by so much as a dollar.
Dodd had previously been urging the Federal Reserve to enact such a provision.
Financial institutions maintain that they are merely providing consumers with flexibility to make purchases and avoid the embarrassment of having their card declined at an inopportune time. The institutions also point out that it is the responsibility of their customers to stay aware of what their balances are.
However, some critics have argued that lenders take steps to maximize their profits from overdrafts with practices like processing large purchases before smaller ones.
According to the Center for Responsible Lending, financial institutions collect about $17.5 billion per year in these fees. The organization maintains that many of these overdraft fees can be prevented if consumers are warned or have the transactions denied, and has reported that the average overdraft is less than half the amount of the average $34 overdraft fee.
Reduce your debt and pay it off fast
Monday, September 21st, 2009If you’re unable to pay off debt simply by cutting down your expenses or consolidating bills into a single monthly payment, debt negotiation is what you may need.
What is debt negotiation?
Debt negotiation or debt settlement is all about negotiating with your creditors or collection agencies (CAs) in order to reduce your outstanding debt balance. The purpose is to make your creditors accept payment up to 40-60% of what you owe while the rest is forgiven.
What debts can be negotiated?
Debt negotiation is applicable to debts such as:
• Unsecured
-credit cards
- Medical bills
- Payday loans
- Personal loans
- Store cards
- Bounced checks
- Student loans can be negotiated if they are not insured by the Federal Government.
When should you go for negotiation?
Negotiation may not be a debt solution for all. It depends upon the individual situation and the debt he owes. Here are the 6 situations when you can opt for debt negotiation.
1. You cannot make payments for past 3 months
2. You’re in hardship such as job loss or medical emergency
3. Creditors are threatening to file a lawsuit
4. The debt is sold off to collection agency and they’re harassing you
5. You cannot make use of debt consolidation program
6. Bankruptcy seems to you as the only debt relief option
What happens in debt negotiation?
Negotiation is offered by debt settlement companies which communicate with creditors and debt collectors in order to reduce your debt amount. Creditors agree to negotiate depending upon the status of your delinquent accounts, your total debt amount and the age of the debt accounts. Here are the 6 steps in a debt negotiation program.
1. Debt counseling: A debt negotiation or settlement company will offer you a free debt counseling session. Herein a debt counselor will review your situation to find out if debt negotiation program is possible in your case.
2. Realistic budget: The company will help prepare a realistic budget for you in order to free up cash flow so that you can pay off the debt after negotiation. The budget gives a clear idea of what you can pay and how much the company needs to negotiate on your behalf.
3. Calculate program term: The company will review your income and set the program term for 2-4 years depending upon how much funds you can accumulate for debt payoff.
4. Trust account: The company will create a trust account (bank account) for you. Instead of paying creditors, you’ll have to deposit a monthly payment into the trust account. This continues till the funds accumulated are enough to start the negotiation.
The trust account does not earn interest. But it is insured by the FDIC (Federal Deposit Insurance Corporation) for an amount up to $100,000. You will receive monthly statements of all transactions on your trust account and the funds available for negotiation.
5. Negotiation with creditors/CAs: Negotiation starts off when you’ve saved about 50% of your debt balance into the trust account. The amount negotiated depends upon the creditor/CA and the debt amount you owe.
6. Settlement offer: The negotiation company will not settle the debt without your approval. Once the creditors (or CA) accept a reduced settlement offer, the company will request them to send you the offer in writing. Based on the offer, you’ll make a lump sum payment to your creditors from the funds in your trust account. Your debt is thus settled at an amount lower than what you owe.
How do you benefit from negotiation?
Debt negotiation offers you the following benefits.
1. Reduced debt: Negotiation helps to reduce your debt amount so that you can get out of debt faster than you’ve ever thought possible.
2. Lower payment: Your monthly payment to the negotiation company is comparatively lower than what you’ve been paying your creditors.
3. No extra charges: Negotiation helps you to avoid paying extra charges like late payment dues or over-the-limit charges (for credit cards).
4. Avoid harassment: Your creditors and collection agencies may stop making harassing calls for debt repayment.
5. Negotiate account status: The negotiation company may negotiate with your creditors/CAs and try to get the account reported in your favor. This is to make sure that the account status on your credit report is “Paid as agreed” or “Settled” etc. The purpose is to minimize the negative impact on your credit.
How much do you pay for negotiation?
Debt negotiation fees depend upon the number of credit accounts you have, the debt amount you owe and the amount you can save through negotiation. Some companies may charge 25%-35% of what you save.
Does debt negotiation hurt your credit?
Creditors don’t agree to negotiate the debt until and unless you’re behind for 3 months or more. Moreover, negotiation requires you to stop paying creditors till you have gathered enough funds to settle the debt.
Since you don’t make payments for a number of months, your credit report shows the account as “delinquent”. Your account may also be charged-off by the creditor or collection agency. Such things ruin your credit and bring down your score. However, once you settle the debt, your credit score will improve gradually with time.
What are the tax consequences?
When your debt is settled, the IRS considers the amount forgiven as taxable income. For example, if your forgiven debt is $4500 and you’re in the 15% tax bracket, then you’ll have to pay $675 as income tax. However, you will not be liable for such taxes if the creditor settles your debt because you protest an owed amount.
With debt negotiation, your credit gets tarnished and you may incur taxes on forgiven debt. However, negotiation reduces your liability towards debt and here lies its importance. The purpose of debt negotiation is to help you fulfill your debt obligation and lead a debt free life.
IRA vs Permanent Insurance
Friday, September 18th, 2009So it was told to me many years ago the concept of investing in an IRA vs allocating funds in a cash value life insurance policy. The numbers speak for themselves. With an IRA you put away $3,000/yr for 30 years. You have now accumulated $90,000 in your nest egg and lets assume a 7% return. Your money doubles every 10 years- see rule of 72. You will have close to $300,000 in your portfolio but wait dont forget market risk. Whether this is a Traditional IRA or a Roth there might be tax implications. Lets now look at a whole life policy. Take that same $3000.00 a year and put it towards a insurance policy. Depending on health and current status that $3000 could land the insured a policy worth well over $1,000,000 upon the insured’s death. It will be a tax free benefit to the insured’s beneficiary. What now makes more sense- IRA’s or Insurance policy. Contact an agent at SYD to discuss in further detail
Wealth Transfer
Friday, September 18th, 2009Do you have a lump sum of money with no idea of what to do with it. Would you like to leave it to a loved one with a tax free implication. SYD can help you. Single premium wealth transfer is the way to go. Answer a few questions and your on your way to passing monies to your beneficiaries free of taxes. Ask your insurance specialist at SYD to explain to you Wealth Transfer