The performance based program, helps consumers pay down debt quicker by reducing pre-settlement fees.
SYD Financial’s consumers are charged a nominal retainer fee to establish a plan to pay off creditors.  They will receive 24-hour access to their account balances as well as free support services, financial management advice and money management education.

SYD Financial’s performance based program creates a new standard that sets us apart from other providers who follow the current standard practice of charging consumers fees before settlements are reached with creditors.

SYD Financial is modeling its performance based program on standards adopted by the National Conference of Commissioners on Uniform State Laws (NCCUSL).  The NCCUSL model act caps pre-settlement fees at a nominal level and settlement fees based on a percentage of the savings realized by the consumer when an outstanding debt is settled. The NCCUSL model act has been introduced in 25 states and has been enacted in six states.

Like other debt relief services, such as debt management and credit counseling, the debt settlement industry fills a critical need by helping consumers improve their economic welfare.  SYD Financial is working hard to make sure consumers understand the importance of the way these programs work by disclosing everything up front.

SYD Financial does agree with the fee structure that is currently in place, but also thinks that there needs to be some regulation. There are just way too many companies promising clients things that they know are not true. “We need all of these companies shut down and put out of business.”   In California the DRE has been very vocal in regards to “For Profit” Loan Modification companies. We need to see something similar take place in the debt space.  “There really are quite a few companies who are out of control.”   The public needs to be made aware of them so they can avoid them.

With this new program, SYD Financial will be able to offer it’s client’s an alternative to the standard fee structure.
– Offering the debt settlement product only to consumers who are best suited for that solution and offering free advice on other options that may be more appropriate.
– Charging only nominal fees to retain our services.
– Charging a settlement fee only after an agreement with a creditor has been reached and savings are achieved on behalf of the consumer.
– Offering free access to support services, financial management advice and money management education while the consumer is contributing to a debt settlement fund.
– Supporting consumers with on-going outreach to encourage and support consumers enrolled on the debt settlement product.
– Capping the total of all fees charged to ensure consumers are not immediately thrown back into a cycle of debt.

There are a handful of great companies doing business in the debt settlement space right now.  We are proud of the fact that we are one of them and do applaud the others that are really trying to help people either dealing with or facing financial difficulty.

For more information regarding our services please visit www.SYDFinancial.com. We are here to help!

Debt consolidation

Credit counseling

Debt settlement

While these approaches can help you pay off your existing debts they won’t necessarily help you avoid getting back in debt. The strategy you choose depends on the amount of debt and urgency of your financial situation. Filing bankruptcy is a legal proceeding that has gained popularity recently. Once reserved for the most extreme debt situations, bankruptcy and personal bankruptcy have reached epidemic proportions in many states. If you have tried conventional approaches to getting out of debt then it might be best for you to consider bankruptcy. Remember bankruptcy should be used as a last resort.

The spiral of debt is often reborn after managing or paying off debt. Once you settle your debts, you can prevent future debt by tracking your spending and following a monthly budget that prevents you from spending more than you earn more that you can afford.

This is where the rubber meets the road for many people. Living in debt or living beyond your means becomes a way of life. This culture and its philosophy is often born with your first new credit card, usually around your 18th birthday. Credit card companies insist through their advertisements that your life will be better, especially if you buy the things you’ve always wanted and that you deserved with a credit card. That simple strategy in advertising unfortunately loops in many people to an introduction to debt.

If you have spent a number of years living the life of a credit card abuser or a personal loan abuser you can expect the challenge of living without credit cards to be significant. If you are married it will take a total commitment to living debt free. If you are single it may be even more difficult. We have talked with many people in their 50s who have gone through several debt spirals. The cycle of debt is vicious and relentless. Use caution when you get a handle on your debt not to get back in.

Obviously debt problems almost always lower your credit score. While that will not be a priority when you are involved in managing your debt it is something you should consider once on solid financial ground. Improving your credit score is best accomplished by simply paying your bills on time. That sounds too easy doesn’t it? You will likely find many companies that offer credit repair services. The fact is you do not need a credit repair service if you structure a plan and follow your plan to pay your bills on time. Over time your credit score will improve naturally and prove to lenders that you are indeed a good credit risk in the future.

Once you are managing your current debt you can begin to build your cash reserves again. One of the most common things that we hear from people in debt is that they do not have enough money to pay their bills, how could they possibly save money. Again this is part of the new process you must adopt. Quite simply if you want to save money, pay yourself first. Think about that.

Let’s assume your paycheck is $500 for the week. A modest savings plan of 5% and you would take $25 and deposit them in a savings account or savings instrument of some type. That does not sound like a lot of money but over time you can increase the amount and what you are doing is developing a discipline of saving and not spending. That bears repeating develop the discipline of saving and not spending. Before you know it saving money will be the new priority in your life, and managing your debt will become much easier.

That tendency for people that are in serious is to think of hopelessly. To some extent it does feel that way. You must look beyond the present and to your future. As you know if you are in debt or in that hopeless situation, the stress and anxiety you feel on a day-to-day basis is overwhelming. Imagine yourself and your financial situation without that stress. That may be the motivation that you need to make a concerted effort to getting out of debt and staying out of debt.

Whether you choose debt consolidation, credit counseling, debt settlement or find it necessary to file bankruptcy, you must choose a plan that will get you on the road to recovery.

Do not fool yourself into thinking that you do not have debt problems because you are paying your bills. If you are paying the minimum payments on your credit accounts it is likely you will spend years and years paying off the debt. Generally speaking paying the minimum payments is risky. What if you miss a paycheck? What if you become unemployed? Both of those scenarios are happening to thousands of people every day.

If you can make your mortgage payments, make your car payment and pay off your credit card in full each month then you are among the minority. Essentially if you make your payments on time to your good debts and pay off your bad debts in full each month you may not need to use the debt strategies we have outlined.

Determining where you are with regard to debt is not difficult. Simply ask yourself and answer this question honestly. Am I in debt? An honest answer should provoke an honest action. Whether that is continuing on your present course or charting a new course for debt free living is up to you.

These reductions can range from 40 to 60% and play a major role in getting the client out of debt. Clients in a debt settlement also see their monthly payments decrease by approximately 50%. The process to pay off debts completely takes 12 to 36 months which is considerably shorter than a credit counseling that takes anywhere from 4 to 28 years.

Any debt that is unsecured can be settled using this process such as credit card debt, medical and hospital bill debt, business loan debt, personal loans, utility bills, department store credit cards etc. With negotiation, debt settlement companies like www.sydfinancial.com will try and convince creditors to lower the amounts you owe them.

You can avoid creditor harassment using the debt settlement process. Debt settlement companies normally contact all your creditors and inform them that you are working with them and that you are now being represented. This helps minimize or eliminate creditor calls. The standard practice is to communicate with the company that is representing you. However creditors do not have any legal obligation to do so.

Once you sign the power of attorney authorizing the debt settlement company like www.sydfinancial.com to negotiate with your creditors, the process begins. During the process, you must make a monthly deposit into a settlement account. The company will use funds collected in this account to repay your debts. Once all your debts are paid off, the account will be closed.

Credit card debt, medical and hospital bill debt, business loan debt, personal loans, utility bills, department store credit cards and generally any debt that is unsecured can be settled using this process. With negotiation, debt settlement companies will try and convince creditors to lower the amounts you owe them.

My 21 year old son wants to buy a home theater system using a Visa card and he has no intention of paying it back. He’s says that it’s OK because Debt Relief companies that advertise on shows like Hannity and Rush will fix it for you. It seems to me that someone has to pay for it in the end, but I know that Rush and Hannity would never advocate anything unethical.

It’s very simple… they take your money and then you owe more. there is nothing they can do that you can’t do by yourself. It’s all a scam.

SYD ANSWER:

It really is amazing how little research people do and then jump all over something.
First.  The advertisements that are on Limbaugh and Hannity are paid for by companies. Meaning they are (Hannity and Limbaugh are not endorsing it) paid advertisement’s by the company for the company. A company buys space, the radio plays it, everyone makes money this has been going on for years. There is nothing new to this we see it in every sector of business.
Two.  What this person is doing would be considered fraud and a debt settlement company (a real one) would not enter something like this into their program or condone someone who is doing this.
Three.  If you have ever heard a commercial that states something similar to this you should report it to your state attorney general’s office. I am sure this would be considered unethical and pulled off the air. I personally have never heard anything that says “Go run up your bills and then we will pay them off”.
What Debt Settlement does do is help people who are having a difficult time paying their bills because of a hardship, and are seeking help to get out of debt. Please keep in mind that not everyone may even qualify for the program. Again a reputable Debt Settlement company should be able to tell you this. Also keep in mind that because it is a fairly new industry there are a lot of Rouge settlement companies who will take you for a ride. What I would suggest to do is research. Call a few companies, read about them online really get a feel for who you are dealing with. If you decide that it is not something for you, there are numerous other programs that might be such as debt management, debt consolidation and credit counseling just to name a few.
Here is a list of all the negatives that are involved with debt settlement. I would provide the positives but I am sure someone will argue those so I will only give you the negatives. Debt Settlement does have a negative impact on your credit score. You will get calls from your creditors and collections company. You could be sued or have your wages garnished. You will owe the IRS for any debt settled over $600.00 dollars. The debt settlement company makes money for providing this service.
It is also very true that you can do this yourself but that also applies to anything and everything. Most of us can cook and we do but sometimes we want someone else to do it for us so we dine out. If you work 12 hours a day I am sure the last thing you want to do on your free time is sit on hold with your creditors. Before making a decision in regards to the industry try talking to a few people who are in it. Find out what they are doing and how their program works, once you have done that you have earned the right to form an opinion.

Thanks

SYD

Bankruptcy, foreclosure, bad debt used to be all four letter words. Not any more, defaulting on loans, mortgages and promises is happening so often it has nearly become acceptable. Obviously there are situations where there is nothing we can do and bankruptcy and foreclosure are the only viable way. However in many if not most of the situations they don’t have to be the only way out. The issue is that many people choose to opt out just because their home is no longer the dream investment it once was. It is attitudes like that, that are behind the fragility of our credit system, a promise to pay is not always worth that much if it is no longer profitable.

It is not only the moral implications that make unnecessary foreclosures and bankruptcies wrong. Although they might often seem like the easy way out they are rarely the best way out. It is much better to use debt management to face mortgage and loan issues than just giving up at the first hiccup.

As mentioned above this comment is not meant for families and households that truly can’t pay their home mortgage or have fallen in a cycle of debt they cannot get out from.

So how can you avoid bankruptcy with debt management?

Debt management refers to the methods used to control, limit and reduce debt. This can be done in a variety of ways:
Debt reduction.
Talk to your bank and ask for a debt reduction. This is by no means a fail sure approach but banks will in some cases offer help and debt breaks to people who come out in the open and explain a bad financial situation before missing payments. The key is to talk sooner rather than later and to present your case in a way that shows that you really want to find a solution that will benefit both of you. This option will only be attractive to banks if their security on your loan is not high and they would lose more money if they simply foreclose your debt.
Loan Modification.
Loan modification or home mortgage refinancing can be a great way to reduce your monthly bills and even the overall cost of your mortgage. The key here is to make sure the cost of your refinancing is not higher than the savings or the benefits you receive from the loan modification. Understanding the real cost of your loan mod can be sometimes complicated so it pays to find good advice and information. This site has many articles on this issue.
The main loan modifications you can apply for are interest rate reduction and loan tenure increase.

You can find a home mortgage interest rate reduction by either approaching your current bank or finding a competing lender that is willing to reduce the interest rate. If you have found a better deal it is often a good idea to give your bank a chance to match or improve the offer. Banks are often willing to reduce their interest to keep good customers. As we have said before, please make sure you understand the full cost of a loan or mortgage modification before you go through with it. Clauses included in the original mortgage can make the loan modification uneconomic.