That’s because more than 1 million bankruptcies were filed in the first nine months of this year, according to the American Bankruptcy Institute, which reported a total of 1,046,499 such filings during that time period this year.

That was said to be the highest level since 2005, when Congress passed a bankruptcy reform law that made it harder for many people to file. Bankruptcy stays on one’s credit score for 10 years.

Bankruptcy is likely to become an even more serious problem in the future, with former Federal Reserve chairman Alan Greenspan making news over the weekend with his appearance on ABC’s This Week, where he predicted that unemployment rate would end up above 10 percent.

Greenspan also indicated that an eventual upswing in jobs is likely, although the overall conditions currently point to what will be a slow economic recovery.

A 10 percent unemployment rate has long been predicted by various economists as the recession drags on, although last week’s figures showed only a fractional increase, from 9.7 to 9.8 percent for the month of September.

An increased unemployment rate is also bad news for credit card companies because it means that over time they may find themselves forced to write off more accounts at a time when pending government reforms will already take a bite out of the ways they currently boost their profits, such as through punitive interest rates and late fees.

Elsewhere, a new Associated Press analysis of 3,100 U.S. counties provides further reason to expect a slow and difficult recovery. According to that report, 39 percent of the nation’s counties show signs of being economically distressed, down from 41 percent in both June and July.

Call SYD Financial today at 866 364-9161 and let us help you!

One of the most widely known credit card debt relief programs in existence is debt consolidation. Simply put, debt consolidation is the process of combining multiple existing loan payments into a single, more manageable monthly payment. A debt consolidation company has the expertise and knowledge to work with multiple lenders and extract more favorable terms. The end result is is a program and monthly payment that you can afford.

Pitfalls

Credit card debt is unsecured debt. There is no collateral tied to it. If you were suffering a financial hardship and could not for a time or for the foreseeable, future pay your credit card bills, you could be subject to harassing phone calls from the credit card company and collection firms. You could also be sued for repayment of this credit card debt. Lawsuits over credit card debt depend on many factors including:

•Whether or not there is a co-signer on the account(s) which the credit card company can pursue
•The length of time at your current job for a long period of time or not
•Age of the customer
•Total dollar amount of the debt owed
These factors and other determine whether a credit card company decides to pursue a lawsuit against a customer that has defaulted on credit card debt. But generally, credit card issuers are usually willing to work with their customers towards repayment of the debts owed.

However in the case of debt consolidation loans for homeowners, you are essentially exchanging unsecured debt for secured debt. And this security almost always comes in the form of a home equity loan. If a consumer goes down the road of a credit card debt consolidation loan, and it is in the form of a home equity loan, and they do find themselves unable to make their new payments at some time – they risk losing their home. Therefore, for debt consolidation to work and be successful, you must have reached a point where you are on sufficiently stable financial footing to be able to continue to make your new payments – because the stakes are high.

Consumer Credit Counseling

If you are in a position where you find yourelf beginning to slide down that slippery slope of credit card debt, then consumer credit counseling can be extremely beneficial. Credit counselors are able to analyze every aspect of your finances and budget. Based on this in-depth evaluation they can craft a personally tailored strategy for paying down credit card debt.

One of the key methods employed by credit counseling is the creation of a personal or family household budget. In order to understand and follow the money trail it’s important to lay down on paper or on an Excel spreadsheet every expense that comes up. Seeing in black & white how much is being spent and on what every month can be a real eye-opener. Those gourmet morning coffees surely add up, as does dining out, entertainment, etc.

A household budget designed with the aid of a skilled credit counselor can therefore be extremely beneficial for those whose credit card debt issues have not yet reached critical stage. And many consumer credit counseling services are in fact non-profit groups, so you can rest assured the credit counseling service has your best interest at heart.

Debt Settlement

A newer program and method of debt relief that has been gaining in popularity and getting much media attention of late is known as debt settlement. The program differs greatly from debt consolidation. For starters unlike debt consolidation which simply seeks to gain a lower monthly payment with a lower interest rate and/or extended payment terms, debt settlement works to actually reduce the principal that a consumer owes.

Here’s how it works. A cosumer will authorize a debt settlement firm to negotiate on her behalf with her creditors. Also known as debt arbitration or debt negotiation, this type of program can typically achieve reductions of debt as high as 50% to 75% off of the original amount(s) owed. What is even more amazing is that this reduction in debt is achieved without all the harmful effects of a bankruptcy filing.

Debt Relief Takes Time

Even a debt settlement program however takes time to complete and to eliminate one’s debt. Consumers in debt need to realize that their personal credit card debt issue did not arise overnight; it grew over time, typically several years. And it will take a few years to complete any debt relief program. The good news is that there are indeed many programs in which those who are struggling with credit card debt can use to their advantage beginning with today.  Call SYD Financial at 866 364-9161 for a free consultation today!

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.

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.

“The largest and most respected debt relief networks on the marketplace today”
If you are over $10,000 in debt it would be prudent to talk with a debt settlement company and take advantage of market conditions while they are so favorable.Credit card debt is the most common type of unsecured debt that is settled. It is very easy to accumulate credit balances with all of the ridiculous fees that credit card companies charge you. Remember this: Your unsecured debt is always negotiable.

“A debt settlement company can provide you significant leverage when negotiating with your creditors.”
The best companies have established relationships with all the major creditors including banks, credit card companies, and medical institutions and will be able to use their leverage to eliminate a percentage of your debt. The best debt settlement companies will be able to eliminate credit card debt at 50% although cases in the 70-80% range are not uncommon in this market. This means that at least half of your credit card debt should be eliminated on average. The fact is that creditors are scared of massive defaults and are more than willing to make deals and write off a good portion of your debt. It is critical however that consumers know where to find a legitimate and established debt settlement company if they want to get the most favorable deal.

As U.S. consumers cope with large amounts of debt and seek out good, proven methods for relieving this debt, one program has demonstrated its debt relief ability above all others, and this program is known as debt settlement.

(News4Press.com) Chicago, Illinois September 15, 2009 — Debt Settlement – the meaning of this program can be sort of mysterious to many. But what the program is and how it works is really a thing of beauty. But the question has be asked – why is there such an interest these days in debt relief? How did we arrive at this point?

As has been said in the past quite rightly – it’s the economy. We live in a global marketplace now. There is simply no denying this fact. And when one local, regional, or national economy falters it can have a domino effect on other economies of the world. And this is what has taken place.

The interest in debt settlement today stems from the fact that as consumer spending slowed, employers were quick slash payrolls. As jobs were lost, consumer spending slowed even more dramatically. Couple this fact with homes whose values have plummeted during this same time period, and credit card companies who have been raising rates and fees – and you have the perfect recipe for financial stress and duress. And this is what has occurred.

Debt settlement is of such great interest today because consumers are being hammered on many fronts today. They’ve heard of bankruptcy, but have doubts and questions about whether it really is the right thing to do – or does it do more harm than good (the latter is actually and factually the case) Bankruptcy has many negative consequences, including: the virtual destruction/implosion (any harsh metaphor could be used here, as the devastation to the filer’s credit score cannot be emphasized enough), the inability to obtain future credit for a long period of time, the inability to rent an apartment in one’s own name, the very real possibility of being passed over for a job, as more employers are doing credit checks as part of their routine screening process for job applicants, and being required to pay hefty deposits for new home utility service in the future.

Debt settlement on the other hand is able to achieve enormous amounts of debt reduction and debt elimination without all the harsh consequences of bankruptcy. Debt settlement can in fact typically achieve a 50% – 75% debt reduction instantly, right off the bat. Think about that for a moment – having your credit card debt ELIMINATED by up to 75%! This is the beauty of debt settlement.

Tustin, CA (PRWEB) September 15, 2009 — As more and more debt strapped consumers are asking “How can I get control of, reduce and pay off my credit card debt and other unsecured debt in the fastest most cost effective manner,” PaymentReduction.com announces a settlement rate of 40 cents on the dollar for average unsecured debt and credit card bills.

What many struggling consumers don’t know is: “There is help out there. There are many consumer relief programs that can drastically cut debt and monthly payments for struggling consumers that many consumers don’t even know about,” says President and CEO of PaymentReduction.com, Amit Oberoi.

How can I get control of, reduce and pay off my credit card debt and other unsecured debt in the fastest most cost effective manner
There is help out there. There are many consumer relief programs that can drastically cut debt and monthly payments for struggling consumers that many consumers don’t even know about
Debt settlement, also know as Debt Relief or Debt Reduction, is a fast and effective method for any consumer who has found themselves under a mound of high interest compounding credit card debt and other unsecured debt, with no way out. Stuck paying minimum payments with the balances going up or staying the same. Debt that just continues to grow with no way out
“Debt settlement, also know as Debt Relief or Debt Reduction, is a fast and effective method for any consumer who has found themselves under a mound of high interest compounding credit card debt and other unsecured debt, with no way out. Stuck paying minimum payments with the balances going up or staying the same. Debt that just continues to grow with no way out,” says Paymentreduction.com Debt Settlement Expert Colleen C.

Instead of filing bankruptcy which can stay on the record for 10yrs and give a hard working consumer a negative stigma, more and more hard working, honest, consumers are getting savvy and are turning to Debt Settlement to eliminate their unsecured debt for a fraction of its current balance while cutting the payments in half, freeing up much needed monthly cash in this tough economy, often paying off all the debt in as little as 12-36 months while avoiding bankruptcy.

Although some credit card companies claim low interest start rates or special low rates, these rates are teaser and short term and when they change they change drastically and when a credit card company says they have a single digit rate, that rate is compound daily, making the actual effective rate extremely high. Although they may claim a low rate the actual rate almost always ends up in the 18-28% range, says Debt Settlement expert and COO of Paymentreduction.com H. Eugene Fouchia.

Debt Settlement, also known as Debt relief, Debt reduction, or credit card reduction is fast becoming the alternative for hardworking honest consumers inadvertently overcome with credit card debt and other unsecured debt… to avoid bankruptcy, credit counseling, or letting go of hard earned cash to pay off debt at full value.

Common unsecured debt effectively settled are: credit cards, store cards, cell phone bills, gas cards, unsecured credit union cards, unsecured jewelry, furniture, computer store bills, repo’d car loans, utility bills (outside collection), business loans.

For more information on the latest debt settlement and debt reduction programs available go to paymentreduction.com they can tell you exactly what you qualify for right over the phone or internet.

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.