In the last article I spoke about debt settlement programs and whether it pays to agree to one or not. Keeping all of this information I relayed to you in mind, if you decide that debt settlement is not the best option for you, there are four other main choices: stay delinquent, come up with extra cash to make payments, work with a credit counselor, or file for bankruptcy.

Staying in delinquency will simply make your credit score lower, and the longer you wait, the harder your score will be hit. Just one thirty day late payment can cause your score to drop by up to one hundred and ten points. Ninety days? You are currently three times as late with your card payment, and you are only getting later as more time passes by.

Coming up with extra money to make payments may just be worth your while. Take a look at your budget and finances. Is there anything that can be sold or adjusted? Use any extra money to pay your debt and prevent any further damage to your credit score. For a lot of us, budgeting is not as easy as that. If you need outside help, look for a credit counselor. They will get to the bottom of the problem, and find a solution.

Additionally, you also have the ability to consider filing for bankruptcy. This means that you will not have to pay back the debt, but filing will cause your credit to drop even more than a debt settlement will, by as much as two hundred and forty points. If you are considering bankruptcy, have a consultation with a bankruptcy attorney to discuss the details.

Keeping everything in mind, analysts claim that speaking with a good credit counselor is the best option. They can help you assess your financial situation, offer possible alternative options, and show you how to avoid making the same mistakes in the future.

Rapid Recovery Solution is a new york debt collection agency.

In the last article I spoke about seemingly disreputable debt consolidation schemes that you should be aware of. Read on to find out more about these scams….

In the meantime, your creditors are not being paid. Unfortunately, while you are accumulating that payment, you are not paying your bills and you may be delving further and further into more debt.Instead of taking this gamble check out a not for profit credit counseling firm that might charge you only twenty dollars, if anything. Instead of billing the debtor, these non profit counselors will generally get what is called a fair share percentage payment from your creditors after your debts have been paid.

Finally, and most importantly, DON’T invest your trust in the debt consolidation counselor who tells you that “We will handle everything. You should cease all communication with your creditors.” Even though the fact that the idea of not speaking to creditors and ignoring their mail sounds like a real load off of your back, ultimately, it is your debt and your credit score at hand. Never send in a change of address form directing all creditor mail to a debt settlement company.

It is important to bear in mind that the creditor is the one with whom you signed your contractual agreement. When all of your statements are being sent to the debt settlement company, you relinquish that control. You do not know how much in interest and late fees are being tacked on. You also won’t know if your debt has been moved into collection.

A few final words of wisdom. If you think you need debt settlement, try debt management first. Get in touch with your creditors and request reduced interest, suspended payment or any other payment terms that may suit your financial situation more favorably. Although it may seem like a long shot, or a pain, it is always very important if you are about to miss a payment to call your creditor and say “Listen, I can’t make this month’s payment. I’d like to work something out with you.

Rapid Recovery Solution is a medical debt collection company.

Divorce, coupled with bankruptcy can pose serious problems for those involved. When a married couple who no longer wishes to remain together have debts piling up and are heading for divorce, bankruptcy might be one way to sort out the financial issues. Bankruptcy has the capacity to be filed by just one spouse, or jointly. The effects of bankruptcy on divorce proceedings? Abrupt at best. An automatic stay will put an end to all activities on divorce proceedings.

Even though one lawyer might seem difficult to deal with in a time of stress, two lawyers might be needed to sort the matters out, a bankruptcy attorney and a divorce lawyer to hash things out between the unhappy couple. Some good advice to take would be to immediately seek out a bankruptcy lawyer to guide you through your finance, in addition to the attorney who is assisting you through your divorce. The expert guidance with alimony, child support, property settlements, and other financial issues is key when you are suffering from the stress of bankruptcy and divorce simultaneously.

If the couple shares a large amount of debt, filing for bankruptcy jointly is a good option. This can even simplify the divorce settlement, and filing bankruptcy jointly is more cost efficient. If you are a spiteful ex, filing individually for bankruptcy is a good way to send the creditors after your spouse.

Then there is the problem of property that you have accumulated during the marriage. That’s marital or community property. If you are filing jointly for bankruptcy, and your former spouse has marked some of your own separate property as marital property, you should take these actions. Firstly, you should attempt to prove what is yours is not community property. The bankruptcy court will release the exempt property, and the remaining property that you share will be part of the bankruptcy estate and therefore will be utilized for paying off debts.

After the bankruptcy court has determined which property is exempt from bankruptcy, the divorce court can dole out the property between the divorcing couple equally. The non exempt property will be sold by bankruptcy trustees (representatives) to pay off the money that you owe.

One other way to steer clear of financial loss on account of your former spouse’s debt is to attach a property of your spouse as a security lien. This lien will permit you to seize the property and utilize it to pay off your spouse’s loan if he or she is thinking of ditching and having you pay. The property with a lien might obtain less than the market price, but this is still a good way to protect yourself from a spiteful ex partner.

Finally, you can work an indemnity clause into your divorce decree. This will help guard you from creditors who are coming after you to pay for your ex spouse’s debts after the divorce. If your husband or wife files for bankruptcy, don’t worry. The judge will enforce it to protect you.

Rapid Recovery Solution is a credit debt collection agency.

The most recent research on the American economy alleges that incomes are dwindling for those just starting out. The Collections Industry has reason to believe that this paradigm shift will be permanent.

First, young adults are the highest uninsured demographic of any group in the United States. 30% of young adults go without health coverage currently today. Despite the fact that the majority of uninsured young adults are employed, a number of uninsured young adults work in low wage jobs and for employers who offer limited or no health care coverage.

With this much young adults already struggling to pay everyday expenses, debt collectors should step back and take a look at this situation. Uninsured young adults are two times as likely as those with private insurance to have no education beyond high school. That limits their future earnings potential.

Due to the financial crisis in 2008, it is probable that stricter credit standards will make it harder for many young adults to pay for post graduate education or get loans for positive assets, such as a home.

This as well as the new problem of cell phones, makes it harder than ever for collectors to get into contact with consumers. John Monderine, owner of Rapid Recovery Solutions believes that over 40 percent of his consumers do not have landlines.

Experts in the field expect more intense profiling systems will be made to assist collection agencies in collecting those accounts where there is an active cell phone and information from bureaus to see if the debtor has a new address or phone number.

Many collection firms are getting ready for younger adults, attempting to use the ways that they like to communicate and do business. One collection agency recently added an online system that allows consumers to make payments online, rather than deal with a collector in person.

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Your credit score can be likened to your criminal record. Both will follow you around for a very long time, and both are supposed reflections of the person you are. Only you and perhaps your attorney will know your criminal record. But your credit score can be pulled when you apply for a credit card, or go to get a new car, or even try to move in to a new place.

For those not in the know, your credit score is based on a number system between 300 and 850. A secret formula (OK a mathematical algorithm) will determine what your number will be. Creditors and experts agree that your credit score is said to be a very accurate prediction of how likely you are to pay off your bills.

Your credit score is imperative. If you already have a credit card, the creditor will probably take a gander at your credit score to try and decide whether to decrease your credit limit, or give you a higher interest rate. Those lucky people with the highest scores get the lowest rates.

But don’t wig out yet if you have a low credit score; there are things you can do in order to improve your situation. Most importantly, try to pay your bills on time. Paying late or even worse, allowing a negative account to go to collection can have a negative impact on your credit score. It logically follows that the longer you pay your bills on time the better your credit score will be.

Try to pay off debt rather than just move it around. It’s really the most effective way to help your credit score. Don’t close your unused credit cards. Closing will close the gap between the amount of credit you are using, and the sum amount available. If you have a bunch of credit, and only use a little, its good.

And for the love of God, don’t open new accounts. New accounts aren’t even useful in credit scoring because they will diminish your average account age. Which leads me to my final point. Longevity. Try to maintain your oldest accounts. Longevity has a lot of clout on credit reports, so the oldest account you have is the most available.

Mallory Megan is employed bya debt collection company. Also, shewrites pieceson consumer spending, business, financeand debt collection.

There have been recent changes in the credit industry due to the new credit card bill that takes effect in February. It will have huge ramifications for both issuers and cardholders. Restrictions on rate increases, fees and increased disclosure requirements will bring about many changes for issuers. Every borrower should learn about the crucial stipulations in the law and the loopholes.

While the new rules will heavily restrict retroactive rate increases, they will not put an end to all negative changes to card accounts. Even consumers with high credit scores may be affected by negative adjustments.

The best way for a consumer to maintain an adequate credit score and keep account provisions intact is to be on the defense. This includes paying on time, not closing accounts unless its necessary and keeping balances low.

A decrease in your outstanding balance will help to protect you against unwanted changes to your account, improve your credit score, and most importantly saves you money. This is because a lower balance could help protect your credit score against credit limit reductions. If your credit limits decrease, and your debt doesn’t decrease, your credit score may drop. According to the CARD Act, issuers have to give you the option to opt out of a considerably large change in terms.

In these situations, issuers must send out a notice 45 days in advance at the least from the date the changes will take effect. The purpose of this is to give you time to decide if you want to reject the proposed change.

It is key that you check your credit score frequently; this is based on your credit report. Mistakes such as collection accounts or delinquencies will lower your score. This is why it is imperative to check on your credit reports at the three major credit reporting agencies on a regular basis. You can do this free of charge.

Any large change in law that could affect your finances is a big deal. Consumers should educate themselves as much as possible in order to protect their credit report and financial situation.

Mallory McGuinness-Hickey works for a debt collection company. She also does articles about consumer spending, business, finance, and debt collection.