An Advanced Strategy In Debt Reduction:

These 5 simple steps to reduce debt are designed for those who are truly struggling with there unsecured debt. There are basic debt reduction steps you can take that are outlined here. The methods listed below are more of a last Hoorah! before a complete debt settlement or bankruptcy decision is made. Please feel free to contact us if you’d like a free debt diagnosis to find out where you might stand and what your next move should be.

Reducing monthly debt payments isn’t rocket science. All it takes is a little organization and determination on your part. If you find yourself struggling to make the minimum payments, and you’re continually watching your balance climb due to high interest rates, give at least one of these options a try. In most cases 2-3 of them will take a substantial load of your back and free you of the stress your unsecured debt has so kindly placed on you.

1. Transfer Credit Card Balances:

This option may not be available for everyone, but if your credit is still in good shape there are plenty of offers out there for you. Most of the time you can get a balance transfer credit card at a  rate much lower than your present credit card interest rate.  If you do your homework, you can find credit cards offering extremely low introductory APR’s on all credit card balance transfers. There are a few credit card programs left that even offer 0% introductory APR’s on balance transfers, utilizing this period to make interest free payments is extremely beneficial.

2. Negotiate Debts With Creditors:

Again, this may or may not work depending on if you’re still current on your payments, and who your creditor is. Unfortunately most creditors are unwilling to negotiate if you’re still making your monthly payments on time. If you are current, and don’t want to “settle” your debt, call and talk to each individual creditor and let them know you’ve run into some sort of hardship. Make sure you’ve got all your facts and figures straight before making the call, this way you know exactly what you’re able to pay to them each month and what your current balances are. In some cases they may even reduce your APR in attempt to assist you.

On the flip side of this, as we’ve mentioned above, it seems the majority of companies out there are unwilling to negotiate anything until you’ve defaulted 3-9 months. This is the start of Debt Settlement, which is talked about in more detail HERE.

3. Consolidate Your Debt:

Using a debt consolidation company is something that we at Total Debt Network don’t necessary recommend, and here’s why. In very few cases can a debt consolidation program TRULY help you out. The majority of the time, it only looks better on the outside. Sure your interest rate is a little lower and your payment is a bit less, but generally the terms have been lengthened. Meaning, you’re in debt longer which negates the little savings you’ve accrued anyway.

There is a way to consolidate your debt that we do recommend. If your credit is still in tact, head over to your personal bank or credit union and apply for a personal loan. Your interest rate on a personal loan is going to be a fraction of your credit card rates. Pay off your credit cards with your personal loan and not only have you dropped your interest rates, you’ve consolidated all your debt into one place. If possible, this is the best way to consolidate your debt.

4. Find a Good Credit Counselor:

A good professional credit counselor can assist you in showing you the fastest and most effective path to becoming free of debt. A credit counselor will assess your debt, negotiate rates down for you, help you out with a manageable re-payment plan, and educate you in the process. Credit Counselors come up with what is called a Debt Management Plan (DMP) after looking over all your accounts and evaluating your finances. From there they will submit this to all of your creditors for acceptance. The credit counselor disburses your monthly payment to each of your creditors as per the DMP.

Even though these credit counselors do not possess any powers over you, most find the convenience of someone else going through the negotiating for them. And obviously, they have the training and skills that the average consumer doesn’t when it comes to debt and how to deal with it. Most consumer credit counselors are “non profit”, this does NOT mean they won’t charge you some sort of fee for their service. Do your homework before committing to any sort of program of this nature, you should never pay for a simple analysis of your situation.

5. Bankruptcy:

This should be the very last resort. If you’re completely drowned in debt and have exhausted all other options, bankruptcy may be the only choice. Bankruptcy can provide you with the clean slate you desire, but the cons will definitely out weight the pros, so make sure to consult your financial advisor before making any decisions. We go into detail about bankruptcy HERE.

Educating oneself is one of the best things you can do while reducing your debt. By educating yourself, it ensures that you won’t make the same mistakes again and you’ll have a much brighter picture of what debt really is.

Please  contact us for a free debt analysis and consultation or simply fill out the form to the right and one of our debt professionals will contact you shortly. We can arm you with the ammo necessary to gain back your freedom of debt.

Why Trusted Debt Settlement Programs Can Be Exactly What You Need In Your Life!

Debt Settlement, also known as Debt Consolidation, is the process of paying less than is owed on credit cards and other unsecured debts, by negotiating with your creditors. Secured debts such as student loans, auto loans, and home mortgages unfortunately do not qualify for such programs. You will need to be in default on your current loans to utilize any debt settlement program and be able to gain the leverage needed to negotiate with your creditors. Typically, debts can be reduced by 40-70%.

Debt Settlement FAQ’s:

Does Debt Settlement Work?:

Yes! However, debt settlement isn’t for everyone. Debt settlement is designed for those who can no longer make their payments, already behind on their payments, or even considering bankruptcy. Debt settlement, when done properly, is a very safe alternative to bankruptcy. Debt settlement may not be an ideal option for those with very little debt. On average, a debt settlement client has $30,000 of unsecured debt.

Does Debt Settlement Hurt Your Credit?:

Debt Settlement is listed on your credit report, so yes, it will definitely impact your score. Debt settlement only works once you’ve been in default on your loans, because if you’re still current, creditors are unlikely to want to work and negotiate with you. Even though debt settlement can adversely affect your credit score, when compared to filing bankruptcy, debt settlement is far less detrimental to your score.

Is Debt Settlement Better Than Bankruptcy?:

Like we’ve discussed Bankruptcy Here, comparing debt settlement to bankruptcy, should be on a case by case basis. They both have their pro’s, and they both have their con’s. Bankruptcy will offer you legal protection under the court so that you don’t have to worry about being sued or harassed by creditors during the bankruptcy process. Debt settlement does not provide the guaranteed legal protection that bankruptcy does, however most reputable debt settlement companies will work to assist you in minimizing creditor calls and harassment where they’re able to.

Obviously there’s much to consider when deciding which route to take between bankruptcy and debt settlement. Our recommendation is to speak directly to a bankruptcy attorney to make sure you understand all the ins and outs of the process. This will help you make a more informed decision and should not be taken lightly.

If you’re in need of a trusted bankruptcy attorney or debt settlement company, please fill out the form to the right and one of our professionals will contact you personally to assist.

Debt Settlement Tax Implications:

Probably the worst part of the entire debt settlement process are the tax implications. Unfortunately, Uncle Sam won’t let you off completely scott free. Any money saved from utilizing the debt settlement program is considered taxable income by the IRS. Meaning, if you settle $30,000 in credit card debt for $10,000, $20,000 will be considered taxable come tax time. However, this is a small price to pay for the amount saved so this really shouldn’t be a deterrent when considering debt settlement. Should you have any further questions regarding this topic, please contact your personal accountant or tax advisor.

Credit Repair After Debt Settlement:

This is where the term “Having your cake, and eating it too” comes in handy. After going through the debt settlement process it is highly recommended to speak with a reputable credit restoration company. We touch on credit restoration basics in our blog. After completing the debt settlement process, your credit is likely to have some negative information on it. Credit restoration companies can have these items completely and legally removed from your reports. There are many legal loopholes that credit restoration companies utilize during this process. Many times, after the restoration, your credit score will be higher than it was before defaulting and going through the debt settlement process.

Our Credit Restoration company has a 100% success rate with over 200,000 clients and growing. Let us help you get out from under all the debt. Please feel free to call, fill out the form to the right, or contact us for a free debt consultation.

A short sale can potentially occur when a homeowner finds themselves in a situation of being upside down in their mortgage. What this means is, the current market value of the property is much less than the present mortgage value on the home.  The Lender then agrees to accept less than the mortgage amount by the current homeowner from the sale of the property.

How Do I know if I Qualify for a Short Sale?

Qualifying for a short sale today is no easy task unfortunately. There are many variables going into the short sale process. Before getting into all of those, there are 4 vital questions and qualifications one must ask themselves before moving forward with a short sale.

1. Has your home value depreciated since it was purchased?

If you’re unsure about this, the easiest way is to contact your local realtor and have him/her pull up comparable SOLD homes in your neighborhood or surrounding area for a precise market evaluation. If you don’t know a trusted or certified short sale agent, we work with the top producing agents nationwide. Simply fill out the form to the right and one of our agents will provide you with a fair market value analysis of your home.

2. Your mortgage must be in or near default

There have been cases in the past when the bank will accept a short sale if the loan is not in default, however times have changed and it’s become a rarity that they will do such a thing. Nowadays in the majority of cases, you must have missed mortgage payments, and received a Notice of Default from your lender.

3. Have You Fallen on Hard Times?

This step can be the trickiest of all. A hardship letter must be written up and submitted to the bank proving you have fallen on rough times financially. This letter must address why you will no longer be able to continue to make payments. The hardship letter must include detailed financial information in regards to your inability to pay the difference as well.

Some Examples of Hardships May Include:

• Divorce
• Unemployment
• Medical Emergency
• Bankruptcy
• Death

4. You Must Have No Assets

Having no assets that can be used to pay off the remaining balance is the last big step that needs to be addressed in the short sale process. Your lender will most likely ask for your financial statement, income tax returns and other financial documents to support your claims. If assets are discovered, the lender may not grant the short sale simply because they will feel you have the ability to pay back the shorted difference.

If the bank grants the short sale even with your assets, you may be required to pay back the shorted difference.

If you are seeking some professional assistance or simply have more questions in regards to a short sale, please fill out our contact us form to the right and our short sale specialists will assist you.

Total Debt Network works exclusively with the best short sale certified professionals and attorneys in the country.

Improving Your Credit Score One Step At A Time

A damaged credit score can effect a number of things in your everyday life. Aside from the emotional strain and stress that damaged credit provides, a poor credit score can affect anything from applying for loans, to potential job opportunities. Credit restoration takes more than just time, it requires effort on your part as well. It’s easy, we’ll show you how.

1. Order Your Credit Reports

You can’t begin the process of credit restoration without having a good grasp on your own credit situation. This is an extremely important step. You must find out what the 3 main credit bureaus, Equifax, TransUnion and Experian, have on file about you and what is being reported.  Chances are all 3 are going to vary, this is completely normal as creditors aren’t required to report to all 3 bureaus.

2. Carefully Examine Your Credit Reports

We can’t stress this enough! Be extremely thorough in your examination. The majority of Americans have incorrect information reported on their credit reports. The credit bureaus are not required to verify the information the creditors send over to them. They generate your credit score/reports based solely on what they receive, regardless of the accuracy of the information. This leads us straight into our next step.

3. Credit Disputes and Resolution

Credit errors hurt your credit score more than you may think. This is why creating a dispute is vital. You can do this all online as you’re investigating your credit report. If you prefer to have hard copies of your documents, mailing these disputes in is an option as well. It is important to clearly identify and document all the disputes being submitted. Make sure to print out and keep extensive records of EVERYTHING. Once submitted, a resolution may take up to 45 days to be completed.

If you need assistance with this step, please fill out the contact us form to the right and we’ll be happy to assist you through the credit restoration process.

4. Get Caught up on All Open Accounts

Devise a structured plan to bring all your open accounts current. Do this as fast as you can. If you’re struggling to make your monthly payments, call your creditors and let them know your situation. Communication is key during this time. The easy way is to just ignore it and hide under a rock, but if you show the creditors you’re actively trying to get caught up, they will work with you and you’ll feel surprisingly relieved after this.

5. Don’t Wait!

It’s very easy to become overwhelmed and put off the credit score restoration process. Don’t do this. Whether you’ve just filed Bankruptcy or you’ve finally decided to do something about your situation, get started now. One of the easiest ways to get up your credit score is getting a secured credit card. Go to your personal banking institution and apply. The majority of them will report to all 3 major credit bureaus. This is an excellent way to get your credit score back on track. Start small and remember to keep your CUR (Credit Utilization Rate) between 20%-40%. Be patient, and most of all be smart about your purchase.

Be sure to visit our blog for more information on how to repair your credit, on your own, with little out of pocket cost.  If you would prefer to hire a professional to assist you, contact us for a free consultation and we can point you in the right direction.

Get on the Road to Recovery Now

1 in every 10 U.S. Consumers have been victimized by identity thieves (Javelin Strategy and Research, 2009). If you’ve been or currently are a victim of identity theft, you’re not alone. Understanding the steps needed to take to get your life back are vital. Below we’ll cover the most important steps to recovery.

Steps If Your Identity Is Stolen:

• Contact the fraud department at all 3 credit Bureaus
• Contact your creditors
• Contact the FTC (Federal Trade Commission) at 1-877-438-4338
• Alert the police in your city
• Change all account passwords
• Notify the Office of the Inspector General at ssa.gov
• Change driver’s license number
• Contact your telephone and utility companies

Recovery and What to Expect:

• Depending on the severity of the identity theft case, in extreme situations, it can take an individual 5,840 hours to fix the damage done from identity theft. This is nearly the equivalent of working 40 hours per week on it, for 2 years!*
• Nearly 1/3 of all victims spend between 4-6 months straightening out issues regarding their identity being stolen. 11-23% of victims spend 7 months to a year attempting to resolve these issues.*
• On average, it will take approximately 330 hours to repair the damages done from identity theft.*

*ITRC Aftermath Study, 2007

Related Posts

• Click Here to read about what criminals do when they steal someone’s identity
• Click Here to read about methods in which criminals steal someone’s identity
• Click Here for ways in which to minimize or prevent identity theft

Have you suffered from identity theft? Are there any criminal uses we missed?

Please share your story or comments below.  Thanks – TDN

How Identity Theft occurs and the consequence of this crime have been covered. At this point you should have a better understanding of what is done with your social security number, banking info, and other personal information once it has been stolen. Below we’ll cover basic, yet important steps to take to ensure your personal info stays……..personal.

Steps you can take to prevent Identity Theft:

• Destroy private records and statements.
• Secure your mail.
• Safeguard your social security number.
• Don’t leave a paper trail.
• Never let your credit cards and check cards out of your sight.
• Know who you are dealing with.
• Take your name off marketers’ hit lists and opt out of sharing info.
• Be defensive with personal info.
• Monitor your credit report.
• Review your bank statements carefully.
• Add passwords to all accounts.
• Don’t allow your kids to use the same computer on which you do online banking and store financial records (children are apt to download games and attachments that host damaging viruses or attract spyware).
• Beware of offers that appeal to greed or fear in exchange for personal data.
• Be aware. A lot of people associate identity thieves as “shady guys sitting in a hotel room who pick names at random.” Be aware that everyone from organized crime to your father-in-law could potentially be an identity thief.
• Don’t give out your social security number before carefully evaluating if it is absolutely necessary. Your bank may need it, but your grocery store savings club does not!
• Invest in a shredder. Get into the habit of shredding all documents before tossing them in the garbage.
• Practice safe shopping. Only shop from secure sites that will encrypt your order. To make sure you connection is secure, look for “https://” at the beginning of the URL and also check for a little picture of a padlock or an unbroken key in the bottom right-hand corner of your browser.
• Be suspicious of unexpected calls or letter. Even if the caller asking for your information seems real, it’s best to double check. Protecting yourself from identity theft is important and can be accomplished by being constantly aware and taking simple measures such as those listed above.

Don’t Hit “Send” Just Yet:

Sensitive Information That Should Not Be Emailed:

• Social Security Number
• Drivers License Number
• Account Number(s)
• Credit or Debit Card Number
• PIN or Password granting access to an account

Related Posts

• Click here to read about what criminals do when they steal someone’s identity
• Click here to read about methods in which criminals steal someone’s identity
• Click here to read about what steps to take if your identity is stolen

Have you suffered from identity theft? Are there any criminal uses we missed?

Please share your story or comments below.  Thanks – TDN

Identity theft can happen hundreds of different ways.  With today’s fast paced and ever changing technological advances, it’s becoming increasingly difficult to keep personal information safe and secure. Identity thieves work diligently to obtain or access your social security number, credit card, and banking information. And with new scams coming out every day, one must stay ahead of the curve when it comes to protecting your identity.

Identity theft is the fastest growing crime in the U.S. The major culprit for identity theft stems from the internet, and the mass amount of readily available info online. Identity theft doesn’t stop there; we’ll touch on a handful of the major identity theft sources.

Common Identity Theft Methods:

• Fake mortgage brokers offer super low rates to get individuals to provide personal info
• Individuals act as an internet service provider by sending emails and requesting personal info
• Secret shopper scams involving mailing back funds once paid
• Skimmer steals check card and credit card numbers and pin numbers
• Scanning card numbers through Blink
• Stolen wallet including social security card
• Dumpster diving
• Mail theft
• Phone scams
• Via text message
• A number of online scams i.e. Craigslist, Lottery winnings, Nigerian Prince, etc.

Educate Yourself

Not only is it important to be conscious of the ways you can have your identity or personal information stolen, it’s equally important to know the right steps to prevent identity theft.

Related Posts

• Click Here to read about what criminals do when they steal someone’s identity
• Click Here to read about the steps to take if your identity is stolen
• Click Here for ways in which to minimize or prevent identity theft

Have you suffered from identity theft? Are there any criminal uses we missed?

Please share your story or comments below.  Thanks – TDN

What Thieves do With Your Personal Info

Do you ever wonder what thieves do with a stolen identity?  There are some obvious ones, but here are some things that you may not think of.  Everything falls under the umbrella of fraud so we will break out what criminals are doing in 5 various areas of fraud.

Credit Card Fraud:

• Thieves may open a new card in your name and rack up big bills, negatively affecting your credit.
• If they have obtained a stolen card or card number, they may change the billing address and run up charges.  This practice has become less common with online bill pay.

Phone or Utilities Fraud:

• Thieves commonly open up new phone or wireless accounts in your name as this is relatively easy to do.
• Thieves also may use your identity to get electricity, heating, cable TV, etc.

Finance Fraud:

• Counterfeit checks
• Fake bank accounts
• Access your ATM or debit card electronically

Official Documents Fraud:

• Thieves may get a driver’s license or official ID card issued in your name but with their photograph.
• They may use your name and Social Security number to get government benefits.
• They may file a fraudulent return using your tax information.

Other Fraud:

• They use your personal information to gain employment.
• They may rent a house or get medical services using your name.
• They may give your personal information to police during an arrest.

Related Posts

• Click Here to read about what step to take if your identity is stolen
• Click Here to read about methods in which criminals steal someone’s identity
• Click Here for ways in which to minimize or prevent identity theft

Have you suffered from identity theft? Are there any criminal uses we missed?

Please share your story or comments below.  Thanks – TDN

With advent of advancing mobile technology and the internet, both fraud and identityf theft have been on a steady rise for the last several decades.  In the year 2000 Fraud and ID theft crimes were 230,628 in the United States.  By 2009 this number had risen to 1,330,426.

Some Quick Identity Theft Stats:

• An identity theft victim will spend an average of 175 hours and $800 trying to clear up their record.  It can take months or even years to resolve it.

• The FTC claims that 9.91 million American’s are identity theft victims each year

• Losses total $52.6 billion

• Social Security numbers cost roughly $49 on the black market

• A driver’s license is roughly $90

• Birth certificates are about $79

• It is believed that in 2005, an identity was stolen every four seconds

Identity Theft Complaints by Age

<19         =    7%

20-29    =    24%

30-39    =    22%

40-49    =    19%

50-59    =    15%

60-69    =    8%

70+         =    5%

Related Posts

• Click here to read about what criminals do when they steal someone’s identity
• Click here to read about methods in which criminals steal someone’s identity
• Click here for ways in which to minimize or prevent identity theft

Have you suffered from identity theft? Are there any criminal uses we missed?

Please share your story or comments below.  Thanks – TDN

1. Payment History – 35%
2. Amount Owed – 30%
3. History of Credit – 15%
4. Inquiries – 10%
5. Account Diversity – 10%

Today we are going to take a deeper look inside each of these categories including a few credit building tips that will show you how to improve your credit score for FREE!  As always, if you are looking for assistance on how to repair your credit quickly, effectively and at a low cost, be sure to contact us.

Payment History

These factors make up 35% of the FICO score.

• Payment info on specific types of accounts (credit cards, installment loans, mortgage, etc.)
• Negative public records (bankruptcy, suits, liens, judgements, wage garnishments etc.)
• Collection items, and/or past due items
• Severity of delinquency (how long past due)
• $ past due on delinquent or collection accounts
• Recency of delinquency, public records and collection items.
• # of past due items on file
• Number of accounts paid as agreed

Amount Owed

Debt amount makes up 30% of the score, and also impacts the debt-to-income (DTI) ratio another tool lenders use when qualifying a loan application.

• $ owed on accounts (including specific types)
• # of accounts with balances
• Lack of a specific type of balance, in some cases
• Credit Utilization Rate (CUR) – The percentage represented by the amount owed on an account divided by the credit limit of the same account.  This also applies at the aggregate level for all revolving lines of credit for a consumer.

Length of Credit History

This is the part of your credit profile that you have no physical control over.  The sooner you establish good credit practices the better.

• How long accounts have been opened
• How long accounts have been opened (measured by specific type of account)
• Time since last account activity

Inquiries & New Credit

Only 10% but the easiest to control

• Number of recent credit inquiries (all credit pulls within 30 days count as 1 – for rate shopping)
• Time since last credit inquiry (month-to-month)
• # of recently opened accounts (by amount & type)
• Time since recent account opening(s), (by type)
• Re-establishment of positive credit history following past payment problems

Account Diversity

Account mix makes up 10% of the FICO score and acts as a mechanism to help prevent the manipulation of scores.

myFico.com defines Account Diversity as…

“Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)”

Having a balance between a mortgage, auto loan and revolving lines of credit on your profile will help this portion of the score.

As Pat Riley told Lebron James “The main thing is to keep the main thing the main thing.”  The major areas to focus on when looking at your own credit score is Payment History and Balances Owed as they account for two thirds of the total rating.  Having a basic understanding of how to keep the others in line will suffice.

The major proactive steps you can take in order to improve your credit profile are as follows…

1. Pay future bills on time

2. Keep CUR to between 20%-40%

3. Limit inquiries or new lines of credit

4. Ensure accuracy of your credit report

The first 3 are fairly straightforward but when it comes to ensuring accuracy of your credit report or repairing your credit, the specific actions can be a little confusing and tricky.  The good news is that challenging your reports for incorrect or out of date items, will impact practically every area of this credit score pie chart.  Legally the 3 credit bureaus (Equifax Transunion and Experian) are required to verify items with creditors.  Agencies and companies reporting negative or positive items have 30 days to respond and if they do not the credit bureaus must remove the items from your report.

Studies have shown that 79% of reports have incorrect items with 25% of those items serious enough to impact approval in lending.  Given these staggering statistics it is worth taking a look at your report rather you choose to challenge or not.

Be sure to visit our blog for more information on how to repair your credit, on your own, with little out of pocket cost.  If you would prefer to hire a professional to assist you, contact us for a free consultation and we can point you in the right direction.