We recently discovered that bill collectors are using popular social networking sites like Facebook and Myspace to dig up very personal information on people in debt.
Recently a bill collector from a collection agency purportedly discovered new employment information published on a Facebook profile they didn’t originally have. Soon enough collection calls and threats of garnishing wages followed at this individual’s place of employment.
It’s probably a good idea to set your social networking profile to “private” in all areas, if a bill collector learns something about you through a social networking site you have no one to blame but yourself for publishing it.
Anyone with a Facebook profile is familiar with status updates; we had a bill collector contact us as we were in the midst of negotiating a massive reduction in an unsecured debt for our client. The bill collector discovered our client was boasting in their status update that they were “thrilled to have a new home”. The bill collector interpreted this as a home purchase; our client was actually intending to tell their friends that they rented a new apartment.
Their argument then became: Why should we take a settlement on our debt if the debtor has money to buy a home? Needless to say it had a crippling effect on our negotiations with that particular creditor and stalled our progress in finalizing a settlement.
Be careful with the internet. If you are using social networking sites, make sure your profile is kept private and keep those nosey bill collectors out of your personal life.
Showing posts with label debt consolidation. Show all posts
Showing posts with label debt consolidation. Show all posts
Thursday, October 30, 2008
Wednesday, May 14, 2008
Borrowing Your Way Out of Debt - The Shocking Truth Exposed
The phrase that most people associate with getting out of debt is "debt consolidation". Consolidating debt requires getting a new loan to pay out existing debts. This situation is ideal if you have great credit and can get an interest rate lower then what you are paying right now.
Now there are two types of consolidation loans. Unsecured loans are not secured against an asset and typically have higher interest rates and secured loans (mortgages) are collateral loans and have lower interest rates.
Often the best and easiest way to get a lower interest rate is to get a second mortgage and pay off the debts with the proceeds of that financing. Consolidating your high interest credit card debts into a lower interest second mortgage is smart.
Borrowing unsecured money in the form of a consolidation loan is a very expensive way to pay off debt, you can expect to pay much more then what you borrowed doing things this way. This is a dumb way to get rid of debt but extremely profitable for the lender.
Those with bad credit often make the colossal mistake of getting an unsecured loan at an even higher interest rate unsecured loan then what they are paying now. Unsecured consolidation loans can range from 28-35% interest. Run; don't walk away from these debt consolidation offers. This is not the best solution to debt. You cannot borrow your way out of debt with these types of loans and it is almost always a path to much deeper troubles.
If you are not a homeowner and have bruised credit then getting a consolidation loan with a lower interest rate is probably not an option. Your bank will tell you if they can help or not. Bankruptcy is an option but should only be used as a last resort.
If you do not have any security like a home to put up then your best bet is a debt settlement plan. Provided you owe $10,000 or more in unsecured debt and have steady income. You can get out of debt in 12-36 months; even with the fees you pay, your total cost is usually about half of what you originally owed. Debt settlement plans are highly effective at eliminating debt and should always be considered before bankruptcy if your bank turns you down. What debt settlement does is reduce your debt by about 50-70% before you pay it.
Homeowners with sufficient equity but bad credit can actually get out of debt in about one month. The same principle of debt settlement applies as above, the only difference is the money to settle is available right away and you can get out of debt much sooner.
Debt settlement and mortgage financing is a marriage made in heaven for those in financial hardship, but not all homeowners will qualify.
Talk to a reputable debt settlement company like Total Debt Freedom Inc. and get a free consultation to see if it will work for you.
Richard Cooper is Founder & CEO at Total Debt Freedom Inc. Canada's most respected debt settlement company. Total Debt Freedom offers debt settlement plans that can save you 50-70% of what you owe and get you debt free in 1 - 3 years. http://www.totaldebtfreedom.ca
Now there are two types of consolidation loans. Unsecured loans are not secured against an asset and typically have higher interest rates and secured loans (mortgages) are collateral loans and have lower interest rates.
Often the best and easiest way to get a lower interest rate is to get a second mortgage and pay off the debts with the proceeds of that financing. Consolidating your high interest credit card debts into a lower interest second mortgage is smart.
Borrowing unsecured money in the form of a consolidation loan is a very expensive way to pay off debt, you can expect to pay much more then what you borrowed doing things this way. This is a dumb way to get rid of debt but extremely profitable for the lender.
Those with bad credit often make the colossal mistake of getting an unsecured loan at an even higher interest rate unsecured loan then what they are paying now. Unsecured consolidation loans can range from 28-35% interest. Run; don't walk away from these debt consolidation offers. This is not the best solution to debt. You cannot borrow your way out of debt with these types of loans and it is almost always a path to much deeper troubles.
If you are not a homeowner and have bruised credit then getting a consolidation loan with a lower interest rate is probably not an option. Your bank will tell you if they can help or not. Bankruptcy is an option but should only be used as a last resort.
If you do not have any security like a home to put up then your best bet is a debt settlement plan. Provided you owe $10,000 or more in unsecured debt and have steady income. You can get out of debt in 12-36 months; even with the fees you pay, your total cost is usually about half of what you originally owed. Debt settlement plans are highly effective at eliminating debt and should always be considered before bankruptcy if your bank turns you down. What debt settlement does is reduce your debt by about 50-70% before you pay it.
Homeowners with sufficient equity but bad credit can actually get out of debt in about one month. The same principle of debt settlement applies as above, the only difference is the money to settle is available right away and you can get out of debt much sooner.
Debt settlement and mortgage financing is a marriage made in heaven for those in financial hardship, but not all homeowners will qualify.
Talk to a reputable debt settlement company like Total Debt Freedom Inc. and get a free consultation to see if it will work for you.
Richard Cooper is Founder & CEO at Total Debt Freedom Inc. Canada's most respected debt settlement company. Total Debt Freedom offers debt settlement plans that can save you 50-70% of what you owe and get you debt free in 1 - 3 years. http://www.totaldebtfreedom.ca
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