What is debt settlement, really?
Pittsburgh, PA ( Newston ) November 27, 2008 -People who are in debt can be vulnerable when it comes to choosing a reputable debt relief company to help them get out of their financial quagmire and back in the black.
There are many advertisements out there right now that promise consumers they can “settle their debts” for pennies on the dollar. This can sound especially appealing to someone who is worried and struggling to make monthly payments on their credit cards. However, there are some things about debt settlement that people should be aware of before they agree to work with such a company.
It is important for consumers to understand that Debt settlement is a negotiation process through which a creditor agrees to “settle” a consumer’s debt for less than owed. This, in an of itself, can be a black mark on a consumer’s credit report because the credit report will reflect that the debt has been “settled for less than owed.” It signals to creditors that the consumer did not repay the full amount owed.
A consumer may be asked to sign over power of attorney to the debt settlement company, which means the consumer will no longer receive any communication from his or her creditors including monthly statements. The fees associated with debt settlement can be very high and are often based on the amount of debt the consumer owes.
Some of the major creditors, such as American Express, do not work with debt settlement companies. Creditors that do work with debt settlement companies require a consumer’s account to be in a “charge off,” or severely delinquent, status before they will even consider accepting a settlement. Allowing accounts in good standing to go into a charge off will have a very negative impact on a consumer’s credit score. In addition, late fees and over the limit fees may continue to accrue while the consumer is saving up enough money to make a settlement offer, and the consumer could be subject to legal action to collect the delinquent debt.
Also, any debt that is forgiven through a settlement may be considered by the Internal Revenue Service as income. That means a consumer is likely to get a 1099 form and have to pay taxes on the forgiven debt. There are some cases where debt settlement can be beneficial to a consumer. However, it is possible for a consumer to do their own debt settlement directly with their creditors without having to turn over power of attorney and pay large fees to a settlement company.
The best course of action for anyone who is in debt is to start with a credit counseling session with a non-profit credit counseling agency that is affiliated with the National Foundation for Credit Counseling. A credit counseling session is free. A certified credit counselor will help the consumer get a complete look at their financial situation, offer suggestions to help the consumer find the best plan to reduce their debt and give the consumer financial education to help them going forward.
Consumers should research any debt relief agency before committing to a debt repayment program. This research should include checks with the Better Business Bureau, the state Attorney General’s office and the Federal Trade Commission. Consumers should also ask the company to disclose all fees up front and provide written contracts.
Advantage Credit Counseling Service, formerly known as Consumer Credit Counseling Service of Western Pennsylvania, has been helping people get rid of their “debt monkey” since 1968 by educating them on matters of personal finance management, budgeting and credit management.
The non-profit 501(c)3 agency is accredited by the Council on Accreditation (COA) and holds membership with the Better Business Bureau. Advantage has been designated as a certified comprehensive housing counseling agency by the U.S. Department of Housing and Urban Development (HUD). Advantage is also a member of the National Foundation for Credit Counseling, the umbrella association for over 100 credit counseling agencies nationwide that promotes the highest member standards for credit counseling.
Contact:
Kristen Garrett, Public Relations Coordinator
(412) 390-1300 x 107
kgarrett@advantageccs.org
www.advantageccs.org
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Dr Alba Reyes Launches New Website On Hair Transplant Surgery
New York (PR Web), Nov 23, 2008 – Dr. Alba Reyes, the first physician in Latin America to be admitted to the American Board of Hair Restoration Surgery, has launched a new multi-media website to share detailed information on Hair Transplant Surgery to help hair loss patients. The domain name remains the same at: www.AlbaReyes.com
The new website is available in both English and Spanish, and it features dozens of case studies and patients testimonials in Text and Video, along with detailed Q&A from patients. The website is receiving very positive feedback from visitors, with each visitor spending over half an hour on the website. This is a proof of the quality of the content shared on the website.
The website also allows you to book a free consultation using an online form, and also enable online messaging and communication with the staff. There is also a blog where Dr. Alba Reyes answers questions from patients.
About Dr. Alba Reyes:
Dr. Alba Reyes is the expert pioneer of Micro Follicular Unit Transplant (FUT) and Follicular Unit Extraction (FUE) in Dominican Republic. Her expertise has helped thousands of patients to replace baldness with natural hair and obtaining a more youthful look. Her reputation as a world-class hair transplant surgeon comes from her satisfied patients. She has consulted and helped thousands of patients who sought her help and recommendations in the area of hair loss and hair transplant surgery.
Dr. Alba Reyes is counted among the best hair transplant surgeons because she offers 100% Results Guarantee to each Patient, and each full hair restoration is at a flat fee (not pay per graft) at 50-70% lower than costs in the US (when comparing a similar procedure by a reputed and American Board Certified surgeon in the US) due to much lower operating costs at her clinic.
Contact:
Eldad Sagiv
Phone Number (Toll Free): 1-(877)-627-8449
Email: info@AlbaReyes.com
English Website: AlbaReyes.com
Spanish Website: es.AlbaReyes.com
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