Business Reference

First Stone Credit Counseling

Best Relief for Credit Card Debt: Credit Counseling or Debt Settlement?

While the United States economy has suffered from the home mortgage crisis, credit card debt has been bubbling up as the next witch's brew ready to bring its own potent poison to the table.

Credit card debt has been getting out of control for years, but the situation has worsened as other forms of credit have dried up. Home equity loans are no longer a ready cash cow for acquisitive Americans, and growing unemployment rates have more people tapping credit cards to the limit.

Credit Counseling and Debt Settlement

It's no wonder, then, that organizations that help consumers resolve credit card debt are extremely busy, serving thousands of new clients. There are two popular approaches to resolving credit card debt issues -- credit counseling and debt settlement.

Each helps clients by educating them in ways to get out of debt and stay that way, but the approaches are significantly different. The objective of credit counseling is to pay off debts in full by negotiating lower interest rates, while debt settlement companies pay off debts fast by negotiating reductions in the amounts owed. Here are the main differences.

Credit Counseling:
1. Negotiate reduced interest rate, pay off full original balances
2. Client pays monthly amount to counseling service, which makes payments to creditors
3. Monthly payments usually higher
4. Compensated by fees from lenders, 4-15%
5. Negotiate reduced interest rate, pay off full original balances
6. More BBB complaints
7. 83.9% of BBB complaints resolved
8. 21-26% reported success rate
9. Professional Associations: National Federation for Consumer Counseling (NFCC) and Association of Independent Consumer Credit Counseling Agencies (AICCCA)

Debt Settlement:
1. Negotiate reduced balances, then pay them off in full
2. Client sets up separate savings account, pays own bills from it
3. Monthly payments usually lower
4. Compensated directly by clients, 10-15%
5. Negotiate reduced balances, then pay them off in full
6. Fewer BBB complaints
7. 91.5% of BBB complaints resolved
8. 40-55% reported success rate
9. Professional Association: The Association of Settlement Companies

Different Approaches for Different Problems

But the biggest distinction is that these two approaches are designed to help people with different levels of debt. Consumers with credit card debt less than $7,500 probably should not consider debt settlement. In such cases, credit counseling or a do-it-yourself program would be a better approach.

But people who have amassed very high levels of credit card debt may find debt settlement the best way to clear the deck and get back control of their lives. Debt settlement companies that subscribe to standards of The Association of Settlement Companies (TASC) work toward paying off all balances in 12-36 months.

Debt Settlement Offers Alternative to Bankruptcy

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 all but eliminated personal bankruptcy for most Americans. When this option was effectively taken off the table, the contemporary debt settlement industry took form to meet the needs of consumers with exceptionally high levels of unsecured debt.

Let's be clear about this: debt settlement is not for everyone, but it provides a much needed alternative to bankruptcy for people who, for whatever reason, cannot meet their obligations. People who cannot make even the minimum monthly payments on credit card debts aren't likely to succeed with a credit counseling solution that calls for even higher monthly payments.

Criticism and Comparisons

For an industry with so much to offer the public, debt settlement has been subject to a great deal of criticism lately, primarily for two reasons: 1) the debt settlement industry is relatively new and not well understood; and 2) a few bad companies have sullied the reputations of the majority of legitimate, highly ethical ones. The industry is correcting both problems by establishing a higher public profile to raise awareness and understanding, and by sorting out the bad apples.

The credit counseling industry, led by the NFCC, is not at all reluctant to cast stones at debt settlement, perhaps even questioning the industry's right to exist. But a quick glance at the comparison above should alert readers to several concerns about credit counseling. Two in particular stand out.

First is the matter of who pays credit counseling agencies. Some have observed that they appear to be well-mannered collection agencies for the card companies, because creditors pay fees to them (which is not the case with debt settlement companies).

Then there is the matter of effectiveness. The credit counseling success rate of 21-26% lags well behind the 40-55% reported for debt settlement. If your financial future were on the line, which would you choose?

About the Author

Zack Anderson is president of American Debt Control, LLC, a full-service debt settlement company. Get Zack's special report "12 Questions to Ask Before You Hire a Debt Settlement Company" here now.

Catholic Credit Counseling

The Blue Lion Goes Green

Ex-rally car drivers Andrew Carter and Spotti Woodhead tested the limits of the Peugeot 308 HDi’s fuel efficiency of their own accord, driving it from Kleinzee to Umhlanga on a single 60 liter tank of diesel. Achieving 1689.7km (3.4 liters per 100km), their effort is considered a phenomenal success.

The tree planting ceremony followed the recommendations of an independent audit (commissioned by Peugeot) by the Global Carbon Exchange (GCX) who measured the carbon footprint created by the drive and the activities leading up to and surrounding the event.

According to GCX, 6.18 tonnes of carbon dioxide (CO2) was emitted and as such, 18 trees would need to be planted to negate the effect to the environment.

Trees act as carbon sinks, trapping carbon during the natural process of photosynthesis. CO2 is absorbed by the tree during photosynthesis, and the carbon absorbed makes up much of the trees biomass.

The GCX have worked on the basis that a tree will absorb up to 500kg of CO2 over a 15 year period. They have also taken into account that almost 40% of the trees do not survive that 15 year period.

The trees were supplied by Food & Trees for Africa (FTFA), a non-governmental organization which aims to both improve the aesthetic appeal of urban landscapes and sequester CO2.

Peugeot have been involved with the Orange Farm community since 2002. They have partnered with local residents of Orange Farm Father Bourgeois Guido, founder of Inkanyezi and Philemon Tjeba, the new Project Director for the Inkanyezi Orange Farm Charity Fund to improve the lives of Orange Farm residents.
The initiative has already seen Peugeot build a community centre, a HIV/Aids testing and counseling centre and a crèche in various parts of the Orange Farm area.
While Peugeot did not initiate the development of the Thulamntwana facility – most of the funding has been provided by a French-based Catholic Church - Peugeot saw an opportunity to contribute by providing trees that would improve both the appearance of the facility and provide much needed shade and comfort to those who use it.

Still in the building stage of its development, once completed the facility will have a church, a crèche for children aged 2-5, a HIV/Aids centre which will provide counseling and anti-retrovirals, a sports ground and an after-school facility that will provide additional learning programmes to children from the surrounding schools. Skills development and education will also be included at a later stage.

For Father Guido, the trees will have a tremendous impact for the community who use the facility.

“They will add value to the property and provide shade for children and the people queuing outside the healthcare facility,” explains Guido. He continues, “I suppose I’m a bit Franciscan in my thinking, but watching another living organism grow alongside you has an effect on your wellbeing and cements the value of nature for the children.”

The white karee trees were specifically selected for their robustness in dry environments and their large foliage for additional shade. The ground-keepers are being taught how to care for the trees in a way that uses minimal water – a precious commodity in Orange Farm that can’t be wasted on excessive maintenance of the grounds.

The activities fit well with Peugeot’s environmental ethics, considering the 308 HDi’s lineage. It is a child of Peugeot’s Blue Lion strategy. Launched in 2007, Blue Lion was a consolidation of Peugeot’s numerous environmental initiatives that saw the creation of a standard by which their vehicles could be judged as environmentally friendly.

The strategy also encompasses many of Peugeot’s environmental activities, The creation of the HDi engine and Operation Carbon – a 40 year reforestation project of the 10 000 hectares of the Fazenda Sao-Nicolau region in the Amazon that will study the link between reforestation, carbon capture and biodiversity while absorbing some 7.32 million tonnes of CO2 a year – are just a few of the items on Peugeot’s green agenda.

Mike Wilson, marketing manager of Peugeot Motors South Africa, stated that, “Making the Coast2Coast event carbon neutral neatly compliments the efforts Peugeot designers went to when putting the 308 HDi on the road, which has a CO2 emissions level of 134g/km.”

CEO of GCX Kevin James commented on the importance of carbon emission monitoring and Peugeot’s approach to the Coast2Coast event, “What Peugeot have done is very forward thinking. Carbon emission audits are definitely an emerging market, and companies are seeking the opportunity to differentiate themselves through conducting business in a sustainable way.”

“An event like this is still about promoting your product - and it is an activity that should be offset by purchasing carbon credits in some form to reduce the carbon impact. I think one of the things that an audit ultimately does is create awareness that every action has consequences.

“Peugeot is the first vehicle manufacturer to contact us with regard to a carbon emission audit, and in these trying economic times - where many car manufacturers are focusing purely on reducing costs and increasing sales - I believe they can pat themselves on the back for still taking the initiative to determine the impact and do something about it.”

About the Author

Creator of www.greenpoll.com - changing the way we live.

Debt Management Credit Counseling C

Credit Debt Solutions - Credit Counseling Vs Debt Settlements - Which is Better?

If your unpaid debt is haunting your sleep, it is time you seek credit debt solutions and receive some solace. When it comes to credit debt solutions, you have various options at your disposal. A layman, in financial matters, may not know the pros and cons of choosing a particular solution to his debt problems. A prudent choice can put an end to your worries; while a hasty decision can begin a series of fresh problems to attend. Both consumer credit counseling and legitimate debt settlement are effective tools to move out of debt. The choice depends on the seriousness of the problem.

Loan defaulters can rebuild their credibility in the market only after they have paid all their dues. Obviously, an unemployed or underemployed person finds it extremely difficult to satisfy his creditors. Debt settlement comes to your rescue, in such cases. A debt relief firm negotiates with your creditors to buy reduction on the borrowed amount. If your unsecured debt amount is more than$10k, you can opt for debt settlement.

A competent debt relief company can get a waiver of as much as 70%on the total debt amount. The credit card company will consider your case, favorably, if it is convinced that your financial status is not robust enough, to return the borrowed amount.

Consumer debt counseling is a useful way to receive education on the importance of financial planning. A disciplined life style and an organized pattern of expenditure can protect you from the predicament of being a debtor. A certified counselor can help you understand the efficacy of a monthly budget He also prepares a proper debt management program for his customer. He even negotiates with the lenders to sort out a loan repayment plan. This plan offers slashed fees, payments and interest rates to the debtors. You may also refer to a bankruptcy counselor who can convince you on the disastrous effects of proclaiming bankruptcy.

It is pointless to compare credit counseling with debt settlement. Debt settlement is a process of coming out of debt, while credit counseling is more of a tutorial that guides you to streamline your financial plans.

Debt settlement is a legitimate alternative to filing bankruptcy. If consumers are experiencing a financial hardship and have at least $10k in unsecured debt then debt settlement can be a legitimate way to eliminate up to 70% of that balance.

About the Author

www.debtconsoladate.com
is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.

http://www.debtconsoladate.com

Contact us for free debt advice = 8883613619

Debt Negotiation With Creditors

Debt Negotiation-Clear Off Your Debts

Debt negotiation helps you to clear off your debts and lead a debt free life. If you have been irregular with your payments and missed 3 or more of them, it is time you start thinking of negotiating your debts. Debt negotiation is a good option for you if your debt account has been sold to a collection agency.

In debt negotiation, your outstanding balance is reduced by as much as 40% to 60%. You can opt for debt settlement in case you have the following debts to settle.

1. Store cards
2. Credit cards (unsecured)
3. Personal loans
4. Payday loans
5. Checks that have bounced
6. Medical bills

If you are hiring the services of a debt negotiating company, they work on your behalf and negotiate with the creditors to lower your outstanding balance. The debt negotiation firm evaluates your financial situation to find out if debt settlement is the right option for you or not. A budget is worked out so that you can curtail your other expenses and save some money for making payments towards debt negotiation.

A trust account is created into which the payments are made instead of paying them to the creditors. When there is enough money to start negotiating with the creditors, debt negotiation is initiated. Once the creditors agree to lower your outstanding balance, you start making payments to the creditors. A trust account usually doesn’t earn any interest but you regularly receive detailed statement indicating the monetary movements that have taken place in the trust account.

Effect of debt negotiation on credit score
Your credit score is an important indicator of your financial health. If you have a good credit score, it increases your chances of availing fresh credit in future. Not only this, you also stand a better chance of availing the various financial privileges some of the creditors offer, the rate of interest being one of them.

Since you stop making payments to the creditors for sometime and make payments into the trust account, your credit score gets damaged for a brief period. The score drops till the time your creditors don’t receive any payments from you. However, once your payments get regularized again, your credit score starts increasing.

Debt negotiation firms-check their credibility
If you are taking professional help, the debt negotiation firm you hire determines to a large extent, how successfully you complete the debt negotiation program. Prior to hiring their services, it is better to check their credibility. Try to search for the past records of the negotiating firm. Don’t settle for the firm that asks for fees before they actually do anything for you.

How do you benefit from debt negotiation?
Debt negotiation can be of immense benefit and can help you to lead a debt free life. Once you enroll for a debt negotiation program, the number of collection calls made by debt collectors is greatly reduced. You are entitled to pay less than what you owe, you become regular with your debt payments and finally you are able to lead a debt free life.

About the Author

Author Bio:
This article is written by Jason Holmes, a community writer of Debt consolidation care. Jason Holmes has been writing on debt settlement, debt consolidation, credit card debt, debt consolidation loans and various other financial aspects.

If i do debt negotiation,debt settlement with creditors (acceptance of my offer),is there any bad credit.?

Yup, because you are not going to live up to the terms of the original debt agreements

Credit Counseling Fact

Should You Opt for Credit Counseling?

This is a common fact that every one needs credit counseling at one point of time or the other in life. In the present-day situation, everyone faces financial crisis for during his or her life. They face bad credit situation and bankruptcy mainly because of their exaggerated expenses and personal loans. In these difficult situations, people need a professional guidance to overcome the situation. Credit counseling will be a helpful lesson for them when they are suffering from these situations.

Many counseling agents and experts can assist them in case of bankruptcy or in case of any other financial turmoil. Some times people take high amount loans and it causes a financial crisis in future because of the high interest rates. The counseling agencies help them to understand the investment policies and they will teach you how to invest and where to invest. If you take any instant loan for your personal investment then you must make it sure that the loan is the most suitable for you. If the plan under which you are taking the loan is not appropriate for you, it can lead you towards a financial crisis.

The credit counseling course is for the financial and investment education. The experts are there for you to make you understand the process clearly. If you take the help of the professionals, you can definitely avoid the financial crisis in the future. This credit counseling service is also for them who are facing any financial problem at present. The experts will show them the right path to overcome the situation. They will tell them the best way to get rid of the crisis. The credit counseling agencies provide many services. They can offer you debt repairing plans, bankruptcy avoiding plans, and many other important plans to get a healthy economical life.

Many other services are provided by various credit counseling agencies. You can have professional advices regarding your budget and credit. If you are thinking to take a huge Loan to fulfill one of your dreams, then the experts will tell you what will be the right choice for you. If you have huge debt in the market then your guide will tell you how to manage your debt. The experts also help you to get a credit card. The agencies provide credit counseling for all of your family members. Reverse mortgage counseling is also available as an essential service in the credit counseling agencies. You really need the assistance because it solves every problem that any one can face at any time regarding his or her financial career.

The credit counseling experts also help you by providing repayment plans. It is a fact that most of the people take loans for their personal or other use. However, a large number of them face a crisis when they have to repay the loan. It is only because they do not know the pros and cons of the particular loan agreement that they sign. The credit counseling professionals will help them to choose the right one for them and have a concrete plan to repay the entire loan.

About the Author

Usha Pradhan has completed her MBA in finance sector and currently working as financial author for cash loan by phone. She is contributing her knowledge on loan, cash loan, credit counseling. To know more about her please visit website www.cashloanbyphone.com.

How can I research a debt/credit restoration agency to see if they are legit?

My husband and I are interested in Gren Path Debt Solutions - we like the fact that they are local to us and can provide face to face financial counseling. They are also a non-profit (although they are a .com instead of a .org??) . However, how can I find out if they are really able to help us? What if they point us in the wrong direction? How can I research the company to be sure we are safe, and not digging ourselves deeper?

Sorry I'm not sure, but I must warm you, 99.9% of those companies are bad, even not for profit, so please be careful =/ My best advice would be search the companies name on Google along with "complaint" "ripoff" "scam" and see what comes up.

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