Posts tagged Debt

How to get out of debts with the help of debt attorneys?

Feb 11th

Posted by Charles in Finance

Many people have this question whether they should or should not go to a debt attorney for resolving their debt related problems. If it is regarding credit card debts or payday loans, the query becomes all the more puzzling! People often get scared with the thought of an attorney, legal laws and the court.

Let’s go through an example. If you want to build a house for yourself, who will you go to? You will surely want to contact an architect or an engineer, right? Why will you do that? Because they are professionals and they are the concerned people to go to for such a thing. You will certainly not start to dig the ground with a shovel by yourself and trying to build the house! Likewise, if law looks like a maze to you, why will you want to waste time and energy to solve it? It is better to leave it to a lawyer to handle such legal issues which are very hard to understand. You must take a professional counseling from a debt attorney for the settlement of your debts.

Let us now focus on a credit card debt settlement attorney that can help you in getting out of debts. It is quite natural that a lay man will not be aware of the laws of his land. Collection agencies and creditors cash on it. You definitely do not want to get harassed or deceived in the name of collection! That is why you should consult a debt attorney for negotiating on your total debt balance. The attorneys will offer you their professional help and a proper guidance.

Fair Debt Collection Practices Act (FDCPA) has laid down a series of rules for collections. Violation of these rules may cost (not only monetarily but also in other forms of penalty) creditors or collection agencies. Sometimes situations may also arise that only an attorney can help you.

Consider the following facts, as this gives you a fair idea about how debt attorneys or lawyers can help you get out of your debt(s):

• If you can afford an attorney’s help then, definitely it is the best option for you. This is because a debt settlement attorney knows about the rights and limitations of every one. Be it the creditor or the debtor, a lawyer knows it all. He can guide you in the time of need, especially if you are planning to file a bankruptcy.

• Of course the concerned attorney has to be someone who has handled such cases and has also delivered results as well. Better Business Bureau can also help you in deciding an attorney for your debt negotiation. All you need to check is how many complains were made in the past against the lawyer of your choice.

• It is estimated approximately a good attorney can negotiate and reduce the debt by 50 – 65 cents on a dollar.

• Not to forget that a lawyer’s charges are based on the amount that is saved!

• About repaying your debts, what can be said is that if you are unable to pay the full amount, then you can make payments in installments.

• Although the time taken for negotiation varies from case to case and person to person. Nevertheless it is estimated that with the intervention of an attorney, one can become debt free within a span of 9-24 months.

Eventually when attorneys negotiate for debts, there is a high probability that they will get a better settlement for you. There are a lot of debt settlement programs which have mushroomed in the past, but it is always to be in the safe hands of a reliable debt attorney!

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Understanding your finances:1st step to controlling your debt

Jan 25th

Posted by Saurabh Dhanuka in Money

If you don’t really understand your finances, you’re bound to find it harder to get / keep them under control. It’s true of anything, but it’s particularly true of personal finance matters – that’s one reason there are so many companies, charities and government organizations which exist to help people get to grips with their money and control their debts.

Understanding your finances: income and expenditure

  1. How much do you earn?
  2. How much do you spend?

These two questions are right at the heart of your personal finances. When you know exactly where your money is coming from and exactly where it’s going, you’ll know:

  1. How much you can afford to put towards your debts every month.
  2. Where you can cut back on your spending so you can put more towards your debts and get ‘back in the black’ faster.
  3. When your situation is serious and you need to look for debt help.

So, start by writing down everything you receive in a month:

  • Wages, child benefit, income support, tax credits, Jobseeker’s Allowance, Incapacity Benefit, Disability Living Allowance, etc.

    Add it all up to get your Total income.

Next, write down everything you need to spend in a month:

  • Rent/mortgage, secured loan payments, council tax, utility bills, pension contributions, phone bills, TV licence, housekeeping, child care, the cost of essential transport, clothing and food, etc.

    (Please note that this list includes payments to your priority debts but not payments to your non-priority debts (see below).)

    Add it all up to get your Total expenditure.

Take your Total expenditure away from your Total income and you’ll get your Disposable income. This is the money that’s available for:

  • Making payments to your non-priority debts.
  • Spending on non-essential goods and services.
  • Saving.

Understanding debt

  • Priority debts

    Your priority debts are the most important ones, with the most serious consequences if you don’t keep up with them.

    If you fall behind on your payments, you could have your possessions removed by bailiffs, or have your gas / electricity supply cut off. If the worst comes to the worst, you could be evicted – or even imprisoned! (Having said that, you should have plenty of warning if any of your creditors were thinking about taking action against you, giving you the opportunity to get some debt advice and sort out your problems before things got so far.)

  • Non-priority debts

    Unsecured loans. Credit cards. Store cards. Catalogue debts. Overdrafts. Some Hire Purchase agreements (for non-essential goods).

    These are your non-priority debts - but that doesn’t mean you don’t have to repay them! It just means they’re less important than your priority debts, since the consequences of non-payment aren’t as serious.


So staying on top of your non-priority debts is important – but staying on top of your priority debts is vital. That’s why your priority debt payments make up part of your Total expenditure. Your non-priority debt payments will have to come out of your Disposable income.

If your Disposable income isn’t enough to cover your payments to your non-priority lenders, your creditors may agree to accept lower payments if you ask them – and show them that this is the best way for you to clear your debts. Just bear in mind:

  1. They won’t know you need help unless you tell them.
  2. You need to take action as soon as possible, before your creditors decide that they need to.
  3. You don’t have to do it alone. Click here for help with managing debt.

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