Friday, March 8, 2013

Know The Steps To Settle Your IRS Tax Debts

Dealing with Internal Revenue Services is a difficult task, especially if you owe a large amount of tax debt to them. But there are some ways to settle your tax issues. You can opt for tax debt management to get professional tax negotiation services. There are many solutions available for your tax debt problems. Instead of hiring a professional negotiator you can employ some of the common ways.

IRS Tax

Here are Some of the Ways to Settle your IRS Tax Debts:

  1. Offer-in-Compromise: You can propose this settlement offer to the IRS if you fail to pay your taxes in full. When you settle your debt through offer in compromise then make an offer to pay what you can afford. The IRS will review your current financial situation and then decide to approve or decline your offer. This program will help you to save your interest along with the penalty charges on your outstanding balance and gives the opportunity to pay off your debts.
  2. Installment agreement: IRS often offers a repayment plan for the taxpayers, who fail to pay their taxes in a single payment. There are four types of installment plans offered according to the taxpayers’ requirement. Your tax amount, current income and ability to pay in future will determine whether Installment agreement or IRS payment plan will be effective for your tax issues. If you are unable to arrange an Offer in Compromise then Installment agreement can be a good alternative for you.
  3. Opt for a penalty removal: With the help of an automated process, penalty charges are levied on your tax debts that you owe to the IRS. But these penalties are often not accurate. If you find that incorrect penalty charges have been imposed on your taxes then you can request the IRS to remove the penalty fees. If you consult a tax specialist then he can guide you to eliminate the penalty charges on your owed amount. When the penalties are eliminated then the payable tax amount will be diminished and make it affordable for you to pay off.
If you are looking for a tax debt relief then the above mentioned tips will be help you settle your tax debt.

Wednesday, March 6, 2013

How To Negotiate With Your Debt

Financial crisis if not dealt with properly can get you into serious problems at the later stage. If you are undergoing a mounting debt crisis it is high time that you do something about it right now than dragging it. When the debt amount is huge you need to look for a debt relief option which can resolve such lump sum debt issues. In such circumstances the best way to fix your debt problem is to negotiate your debt with creditors through a debt negotiation program.

Debt Negotiation

However the negotiation process is not that easy. You need to be wise while handling your creditors as the creditors may not agree on a settlement program. This article provides you with certain tips that you can consider if you want to settle your debts successfully:
  1. Decide on A Budget: The first thing that you need to do is to decide on a budget before you start negotiation with your creditors. Know your financial condition well before you inform you creditors that you want to settle your debts. Make note of all your monthly expenses to know where you stand with your finances. Check out the debts that you can afford to pay and those debts that you need to pay in the beginning. After you have analyzed your finances you can know how much you can pay as the minimum amount due on your debt. Follow the budget to save as little money as you can. This will help you to speed up your debt repayment.
  2. Take the Calls of your Creditors: If you ignore the calls from your creditors, they can get more irritated. They will keep on calling till you do not pick up the calls. This behavior gives them an idea that you are not interested in paying off the debt. This can lead to the creditors taking serious actions against you. Talk to them so that they get the message clear that you are interested in paying off the debts but are unable to do so due to your financial condition. If you do not have the money at present to pay them off make it clear. If you hide facts it can make the situation worse. If you maintain honesty it can have a positive impact as your creditors will support you to get your condition.
  3. Do not Act under Pressure: If your creditors are pressurizing you to agree on a deal, do not do that. Take your time to understand the details and then arrive at a decision. If you are dealing with the original creditor, then things might not be that bad. They will know about your condition from the beginning so they will be much more supportive. There are collection agencies that may pester you for countering offer. Remember to clear out the details beforehand so you do not have to face problems later.
  4. Have Everything Written Down Clearly: Do not believe in just verbal sayings. Do not assume anything when negotiating a debt. If it is a collection agency, inform them by sending letters or requesting them to send you a return in return. Having everything in writing saves you from any legal complications later on. When negotiating your debts send your negotiation offer and ask for a duly signed letter mentioning the details.
  5. Ask them to Remove your Negative Markings: After your debts have been settled ask your creditors to report it to the credit bureau. Also request them to remove all negative markings from your credit report. If there are any mistakes ask the bureau or your creditors to remove them as they affect your report negatively.

Saturday, March 2, 2013

Tips To Settle Pay Day Loan Debt

Your financial situation might have forced you to take payday loan at the middle of the month. But are you aware of the traps that you can fall in to if you take the help of a payday loan in order to meet your urgent financial requirements? These loans have high interest rate that varies from 10% to 30% making the repayment plan affordable for your pocket.

Payday Loan

If you are struggling to come out from this vicious cycle of debt then this article can help you with different ways of payday loan settlement.

How to settle payday loan debts?

1. Add the Amount of Debt You Have Incurred:

One of the easiest ways to evade the trap of payday loan debt is by calculating the total amount you owe. Write down the sum of the outstanding balance along with the interest rate as that would help to settle your debt with ease. Your state law would have an immense effect while settling your payday loan therefore gather information regarding the law.

2. Keep A Record of the Dealings with the Lender:

You can request your creditor to mail you the required documents or ask to send a postal letter if he tries to contact you. Try to keep a record of the dealings with the creditor as that would be beneficial for you while you plan to settle your debts. A certified letter would be ideal if you want the creditor to stop communicating with you. This would help to reduce the creditor harassment as you would maintain a record of communication with him. And if you find him violating any rule then you can lodge a complaint with the Federal Trade Commission (FTC) against the creditor.

3. Consult the Federal Regulatory Body:

You are secured from the evil practices of the creditor by the law enforced by the state. Try to acquire more knowledge on state laws as that would show you various ways to avoid creditor harassment. There are few states that have restricted the amount of interest charged by the payday loan company and others have declared the payday loan companies as unauthorized. If you locate any of the creditors violating the law implemented by the Federal regulatory body then you can negotiate to settle the account on this ground. Lodging a complaint with the state regulatory board would help to put an end to the creditor harassment.

4. Take the Service of A Debt Settlement Program:

If you are eager to come out of the clutches of the payday loan debt then try to enroll with a debt settlement program. The settlement company would negotiate on the outstanding balance along with the interest rate on your behalf. They would also consider of making the repayment plan affordable for you.

5. Save and Pay your Own Debt:

If you are planning to take a consolidation loan then change your mind. Taking a second loan in order to pay off your previous loans would not beneficial as you won’t be able to come out from the vicious cycle of debt. Try to save money and start paying the amount you have incurred. Following these easy steps would help to pay off your debt.
  • If you spend your hard earned cash sensibly that would help to save money therefore you a scope to get rid of debt.
  • Plan a budget as that would help you to control your extravagance and forcing you to save a portion of your income. With the help of the saved amount you can pay off your debts.
  • Look for some extra source of income for instance get hold of a part time job or give a room if your apartment on rent. You can use these extra cash for paying off your bills.

Tips To Improve Your Credit Score

Indebted people who are looking for debt relief program often focus their attention to improve the credit score. If you do not want to hamper your credit report then you need to keep bankruptcy as your last option. Your credit history partially gets affected while you enroll with a debt settlement program. The effect of settlement on your credit report is not as severe as the result of bankruptcy since it remains there for 10 years.
Credit Score

Why A Positive Credit Score Required?

After the calculation of the ratio of your repayment that is actually owed by you then your credit score is fixed that determines your credit report. Your credit report establishes your economic stability and shows your eligibility to apply for other loan program. Your credit report would help you to get loans with interest at an affordable rate.

In order to rebuild your credit report you need to follow the tips given below:

  1. Avoid late Payments: Paying off your existing bills on time would help to have a good credit score. Apart from phone bills, utility bills and rent you need to make payments on your credit card bills, mortgage or car loan on time. If you default on any of the accounts then it might have a negative effect on your credit score.
  2. Do not Ignore your Credit Report: Try to maintain a good credit report if you are planning to apply for a car loan or a mortgage. Always review your credit history in order to remove the incorrect entries as that might have a negative impact on it. Your credit score would plummet immediately on ruining your credit report. If your lender is not contented with your credit report then he might disapprove your loan application. Therefore talk to the credit bureau in order to analyze the discrepancies on the credit report.
  3. Adverse Impact of Check Bounce: Your credit history would be adversely affected with a check bounce. If you do not control this matter then it might give rise to a major issue. Your credit report won’t show that you have overdraft but the banks can mark the customers who have bad financial history. The overdraft charges along with the bounced check would affect the credit report.
  4. Older Accounts Should Be Reopened: As your credit report determines your credit score, therefore, try to keep the other accounts active. One of the major reasons for overwhelming debts is uncontrollable accounts that you have opened. But closing the older accounts might damage your credit score. Therefore keep the accounts open and add the existing balance to your current account. 
Thus these tips would help to improve the credit score. Recover your credit by following these simple steps.

Friday, March 1, 2013

Smart Ways To Settle Your Credit Card Debt

Are you facing problems with unmanageable credit card debt? Is it becoming difficult to cope up with the harassment and abuses of the creditors? Then it is high time that you do something about your financial state to get it on right track.

Credit card debts are a part and parcel of life and you cannot get rid of them just like that. You need to plan out your financial life well if you want to fix your debt crisis. If there are late payments or penalties associated with your bills your debts can increase. Thus you should be careful while handling your credit cards so they are not hampered to the extent of filing bankruptcy.

Credit Card Debt
But if your cards have incurred certain negative markings at present, here are some smart ways to fix your credit card debt issues:
  • Credit card debt settlement can be a great way to get rid of your huge debts. Negotiating your debts yourself can help reduce your debts to a considerable extent. You can also save the money that would have else gone for hiring a debt settlement company. If you enroll in a debt settlement program you can expect to reduce your debts till 40-60%. You can also get rid of all creditor harassment issues with professional help. Thus from the time you realize that your debts are moving out of control, monitor your finances and get them back on track.
  • If your debt account is closed or restricted, you will not be charged off the amount you owe on your income statement. When your bad debts increase, the stocks in banks drops. With mortgages where your loans are backed up by collateral, the risk is less. Credit cards fall under unsecured debts and it depends upon your ability to pay back. Always keep note of your debts so you can avoid the risk of bankruptcy filing.
  • Convince your creditors for debt settlement by explaining your weak financial situation. Ask them for reduction in your debt amount and interest rates. You can tell them that you are considering bankruptcy filing. It is likely that your creditors will opt for a settlement rather than losing out on the whole amount.
  • Offer lump sum amount to the creditors as the initial settlement sum. This may offer motivation to creditors to opt for debt settlement as they can get back the major part of their lend amount.
  • Suggest a repayment plan if you are unable to offer a lump sum amount. You can sort out this plan in consultation with your creditor. It will help you to pay back your debts with affordable installments without increasing the negative impacts on your credit score.
If you are still confused about the ways to go about it, consider asking help from a debt settlement attorney in your state. Credit card debt settlement is a great way to fix your finances. But you need to be prudent while handling your debts in order to settle them successfully.