Secured and unsecured - DEBT

Unsecured debts medical bills, credit cards, department store cards, personal loans, student loans, bounced checks

Secured debts "home", "auto".

Now as per rule you can only settle unsecured Debt

As in secured debt, a creditor will accept the promised property if a debtor is unable to pay. In case of real property (home or automobile) a creditor will be always on profit in a debtor will not pay the accept amount.

In case of unsecured debts such as medical bills, credit cards, department store cards, personal loans, student loans and bounced checks there is no loan promised attached in document. So unsecured loans are given to only good credit people.
In case of unsecured debts there is no guarantee that a creditor will receive anything form debtor.

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Debt Settlement Vs Bankruptcy

What will you choose between debt settlement and filing bankruptcy due to economic crisis?

Process of bankruptcy.

1. You will lose all your credit card scores
2. Make bad image to credit rate
3. No bankers will be ready to give you loan.
4. Take at least seven to ten years to get stability.

Debt Management Plans

1. Managing debt is little bit hard.
2. If your debt gets managed then you will gain your financial support.
3. Debt management tries to convince the creditor to reduce debt amount
4. Do not try to manage your debt yourself there are 90% of chance of failure as you are not an expert.
5. Firms will help you to manage around 70% discount of your debt.

Now i think it will clear your doubts regarding debt management procedure.

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Older People help on Debt Collection

Mostly old age people are unable to work due to physical and mental weakness. Older people being in this debt can feel overwhelming and stress as they may have maxed their credit cards. To overcome with this problem follow the following steps.

1. Call the agent to decrease down the interest from credit cards.
2. Pay the bill on time
3. Better to have a lower payment plan
4. You can even hire lawyer for your credit relate issue.
   

Never ignore the collection agency in any situation it mean collections actions or even lawsuits

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Do's and Don’ts while contacting Collection agencies

Do:

1. Collect list of collection agency with the help of Google.
2. Contact through letter or mail do not use your phone to contact to avoid unwanted call from collection agency.
3. Always refer to the debt by listing account number instead of "my debt"
4. Ask agency to give their contact details and their registration as per the laws.
5. Request the collector to provide a written follow-up including "claims" "name of the original creditor" and "steps"
6. Keep all documents sent to the Collection agency or received from them.

Don'ts:

1. Do not make any payment arrangement or negotiation over phone (negotiations should be made in writing)
2. Do not lose your temper when you deal with a collection agency and do not use any rude word in your latter to collection agency.
3. Don't ignore the calls or late response from your collection agency

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