Finance Tips

One popular way people deal with medical debt is through consolidation. If you are struggling, medical debt consolidation is one way to attack it but it does have its downsides. Consolidation comes through either a financial institution loan or through the use of a debt management company. Like any other debt consolidation method, there are pluses and minuses – costs and benefits which you need to understand.

Consolidation Through A Loan

One type of medical consolidation is achieved through the use of a bank loan. The loan can be secured or have collateral behind it – in which that collateral could be your house or other assets you have. A secured loan is a much better loan than an unsecured loan. An unsecured loan is a loan in which the bank has no collateral in case you fail to repay. Therefore, a secured loan (refinance, home equity, loan against your 401k etc) usually carriers a much better interest rate. In both cases, your credit score is a huge factor. The lower your credit score, the more likely you are to obtain a higher interest rate. Taking out a loan is only advisable if the interest rate you can obtain on the loan is lower than your medical debt interest rate, it prevents your credit score from being degraded, and or of it prevents you from filing for bankruptcy.

A debt consolidation loan is not beneficial if it is at a higher interest rate than your current medical debt interest rate. However, it can be beneficial in lowering your monthly payments so they are more manageable. However, realize a loan usually results in your paying more principal in the long run because your payments are lower. This type of consolidation can be difficult to obtain although usually a secured loan is much easier to obtain then a non-secured loan.

Consolidation Through Debt Relief Company

Another way to consolidate your medical debt debt is by signing up with a Credit Counseling or Debt Relief Company. These companies can negotiate with your creditors (hospital, doctor’s office, or collection agency) to potentially settle for a lower amount and set you up with reasonable payment plans or payment plan you can afford. If you are the type of person that feels better with assistance then sign up for a “Medical Debt Consultation” at the top to see if you qualify. However, you can also contact your creditors yourself and negotiate yourself (interest rates and payment plan). Make sure when you pursue assistance, that you ensure your credit score will not be negatively affected. You want to reduce your interest rate (if any) and balance but with reporting to the credit bureau as “paid in full” or “paid as agreed” instead of “settled.” In other words, talk to your credit counseling or debt management company that you want options that don’t require your credit being degraded any further.

In summary, debt consolidation, when it matches your needs, can be a viable option for medical debt. Always compare your interest rate with a bank loan, and if you are unable to obtain a loan work with a credit counselor or debt management company. Always consider the consequences and benefits no matter what you do. Moreover, ask questions in whatever consolidation method you select.

The average person juggles numerous bills each month–credit cards, auto loans, personal loans and more! If you’re getting buried beneath paperwork, you may want to consider a debt consolidation loan. Instead of dealing with multiple creditors, you’ll only have to pay one bill each month. And you can get a debt consolidation loan–even if your credit is not-so-perfect–if you secure it with some type of collateral. Here’s how to get approved:

1. Decide on your collateral

Whatever item you choose as collateral for your loan should be one you’re willing to risk, since the lender could take it if you can’t make your monthly payments. One of the least expensive options would be your home, since you could get a home equity loan, a home equity line of credit or a second mortgage. If you’re not willing to risk your house, you could also use an automobile or a boat. Some lenders will accept stocks or bonds, or even expensive belongings such as jewelry or electronics.

2. Find a lender

You’ll need to find a lender that accepts the type of collateral you’re using to secure your loan. Most major lenders and banks offer home equity loans, and many offer personal loans secured with a vehicle or boat. You may have to dig a little deeper to find a lender that will accept jewelry or other belongings as collateral. Check with your local banks and credit unions, and do a search online to find an appropriate lender.

3. Compare loan rates and terms

Before you sign up with any lender, make sure you compare their rates and terms with similar loans. Some unscrupulous predatory lenders may try to take advantage of your situation by charging you a high interest rate or extra fees. It’s always best to compare at least two loans to ensure that you’re getting the best possible rate.

Try using one of ABC Loan Guide’s Recommended Lenders For A Secured Debt Consolidation Loan.

Secured Debt Consolidation Loans are possible even for those with less-than-perfect credit. By using an expensive item you already own–house, car, boat, jewelry–as collateral, you become less risky as a borrower, making it more likely that you’ll get approved for a loan.

Home equity is one of the luxurious something that many people had. Well, many people think that home equity is one thing which can prove that people are rich or not. Home is one of the equity of the people. When the people have the big beautiful home, other people can say that they are the rich people, and comparison of it.
In one time, it will be the huge great problem if suddenly you do not have money for your life and for your family life of course. You do not be able to do your activities, such as eating, shopping, traveling, vacation, and many others activities. You should get the loan to do it. But, you should pay back the money of course. You should have the completed condition before you get the home equity loan.
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If you want to get the home equity loan with the easy way, you can get the loan from lending expo. It is the best recommended home broker for you. You will get the best services from lending expo. Lending expo is founded because of customers. Its duty is made the customer satisfied with the service of lending expo. You will be happy by getting home equity loan from this broker. This broker is flexible broker with the cheap of interest you should pay when you pay back the loan. So, you will have the new home with home equity loans.

Sure, the Federal Fair Debt Collection Practice Act (FDCPA) defines the borders within which all debt collectors should stay when dealing with delinquent debtors. But are they really that law-abiding? This article lists the most widely used threats that debt collectors may use when talking to you over the phone or in the process of face-to-face encounter. Are the things that they are threatening you with legal? Read this article to the end to understand it – and choose a perfect resistance tactics for yourself.

The statistics concerning the amount of people’s complaints concerning the work of debt collection agencies is oppressive – in 2004 there has been as much as 58,000 debtors addressing the Federal Trade Commission (FTC) claiming that they were harassed by the debt collectors – and the number only keeps on growing! Complains about illegal methods of debt collection hold one of the first places in the FTC’s rating – currently, 17% of all complaints concern this problem.

The following list states the most common threats used by abusive debt collection agents – and states how true they can be in reality.

1) The threat to take away the debtor’s house if he/she doesn’t make the payment immediately. This threat has nothing to do with reality unless your loan is actually secured with your home (mortgage or home equity loan). Only in this case will a debt collector be able to seize the real estate in your property.

2) The threat to arrest the debtor if he/she doesn’t start paying off immediately. First thing you should know about if your creditor ever tries this intimidation technique on you is that a delinquent debt is a civil matter, while only a person committing some criminal act can be arrested.

3) The threat to keep on with regular collection calls in spite of the cease communication note sent to the creditor. Federal law states that a cease communication note received by the creditor obliges him/her to stop all efforts to contact the debtor. If your creditor fails to follow this regulation, remind him that this activity may be considered a breach of the law.

4) The threat of assault. Yes, you might be surprised but some debt collection agents use that as well. FTC receives an average of about 300 complaints caused by the threat of violence to a debtor. There’s no law that would allow the debt collectors to resort to such means, so if you ever happen to be the target of it, it will be you who is recommended to bring a lawsuit against your creditors, not vice versa.

Threatening the debtor is not the only illegal method that and abusive debt collection agency may be using. It’s important that you realize which of your creditors’ activities can be considered illegal and use this knowledge to protect yourself. Remember that your debt collection agent is breaking the FDCPA if he/she is:

- sharing the information about your debt with third parties – except your neighbors, relatives, and employers who may be contacted in order to obtain any required information about you. However, you should know that contacting these people is only allowed if the creditor doesn’t mention anything about your debt at all;

- calling you at work despite the fact that you notify him/her you are not allowed to receive personal phone calls during your working hours. However, there are very few debt collectors that really do follow this rule – most of them keep on calling you no matter what. Consider resorting to legal protection means if that happens to you;

- using rude or profane language or raising his/her voice at you during collection calls;

- calling you too frequently, thus making your life really stressful;

- ignoring written disputes;

- providing public access to debtor information.

What can you do to fight off the illegal debt collection attacks? The very first thing that you should do as soon as debt collection calls begin is surfing through the detailed description of consumer rights under FDCPA. Do it even if the collection calls are not bugging you really bad. You can easily get this information from the official website of the Federal Trade Commission.

If any of your debt collection agent’s activities turns out to be illegal, file a formal complaint with your state’s Attorney General and the FTC. In case these authorities receive enough complaints about the activity of a given creditor or debt collection agency, heavy fines may be imposed as the penalty for their illegal practices. This will definitely make them think twice before doing that again. Plus, you shouldn’t forget that you have the legal power to file a counterclaim against a harassing or exceptionally abusive debt collection agent.

On the other hand, you should remember that everything listed above applies to third-party debt collection agencies and attorneys that your creditors may resort to only. Your creditor’s own debt collection department representatives are subject to only a few of the FDCPA regulations listed. Nevertheless, you shouldn’t forget about other consumer protection laws that might help you to resist the abusive activity of debt collectors and even the creditors themselves. Thus, you shouldn’t hesitate to file a complaint with your state’s Attorney General and FTC if you believe that your creditor is harassing you. In this case, an abusive creditor may be considered guilty under state law or some other FTC act.

Fighting off illegal debt collection attempts may be a really hard thing to do – but you should remember that this may get your out of your debt sooner and easier than you think, so… Educate yourself!

If you are behind on your bills and on the receiving end of collection phone calls, you will probably hear collectors make some very threatening statements. While most debt collection professionals try to stay within the boundaries defined by the Federal Fair Debt Collection Practices Act (FDCPA), many others cross the line on a regular basis. Last year, the Federal Trade Commission (www.ftc.gov) received more than 58,000 complaints about debt collectors, a figure which represents 17% of the total number of complaints received by the FTC. Consumers complain about the collection industry more than most other industries combined.

Collection professionals would probably respond that the enormous size of the industry and the sheer volume of collection activity accounts for the large number of complaints. However, only a small percentage of violations are actually reported by consumers, so the data collected by the FTC represents only a tiny fraction of the true scope of the problem. Even so, a pattern of abusive and illegal collection activity has been well-documented by the FTC, and it is getting worse instead of better.

Here are some common threats made by debt collectors:

“We’re going to take your house unless you pay this bill immediately.” This is a bogus threat. Unless the debt being collected is secured by the house in question (i.e., a mortgage or home equity loan), the creditor does not have the power to take your house away from you.

“If you don’t pay this bill today, we’re going to have a warrant issued for your arrest.” Nonsense. Failure to pay a debt is a civil matter, not a criminal matter. Threatening a debtor with jail time or accusing them of committing a crime is totally against the rules.

“We don’t care that you sent a cease communication notice. We’re going to call you anyway.” The FDCPA gives you the right to terminate contact efforts by a debt collector. Failure to respect a cease communication notice is a clear violation of Federal law.

“We’re going to garnish your wages to recover this debt.” A collector can only threaten action it has the legal authority to take, and the vast majority of collection agencies have zero legal authority. Your wages can only be garnished by a creditor after they have won a judgment against you in a lawsuit.

“We know where you live, so you better pay up.” Yes, threats of violence still happen in this industry. Nearly 300 complaints against collectors received by the FTC last year cited the threat of violence as the cause of the complaint. This is absolutely illegal.

Aside from the usual bogus threats, collectors also use other tactics that are illegal. For example, discussing your debt with a third party is a clear violation of the FDCPA. Yet collectors routinely call neighbors, relatives, and employers to obtain information on debtors. So long as the collector does not discuss the actual matter of the debt, they still have their toes on the right side of the line. But as soon as they mention or even hint that they are calling about a debt, they have crossed the line.

Since many debtors have taken to screening their phone calls at home to cut down on the relentless barrage, debt collectors frequently call at work when they can obtain an office number. In theory, a consumer can get the collector to stop calling at the office simply by stating that they are not allowed to receive personal phone calls at work. That puts the collector on notice that such activity constitutes interference with the consumer’s employment, which is not permitted. In practice, however, collectors routinely ignore this rule and continue to call at work.

There are many other techniques of harassment and intimidation that cross the line from permissible to impermissible collection activity. Use of obscene or profane language, shouting, constant and unrelenting telephone calls, failure to respond to written disputes, and publication of debtor information all constitute illegal activity as defined by the FDCPA.

So if you are on the receiving end of illegal collection actions, what can you do to protect yourself? First and foremost, it’s important to know and understand your rights as a consumer. A description of your rights under The Fair Debt Collection Practices Act may be obtained directly from the FTC ([http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm]).

If you believe that a collector has violated your rights in their attempt to collect from you, then you should not hesitate to file formal complaints with the Attorney General for your state (www.naag.org) as well as the Federal Trade Commission. If enough complaints are received about a particular collector, then these authorities are empowered to bring an enforcement action against them, which may result in expensive fines that will make the agency or collector think twice about using such tactics in the future. You also have the right to bring a lawsuit yourself against a collector that harasses or abuses you, or otherwise violates your rights under the law.

One final point. The FDCPA technically only applies to third-party debt collectors, which includes collection agencies and collection attorneys. It does not apply to the original creditor when collecting their own debt. For example, if you borrow money from a bank, the bank is not regulated by the FDCPA. However, numerous other public laws protect consumers from deceptive or abusive collection practices even by original creditors, and many states also have laws that parallel the FDCPA but go further and include original creditors in the definition of debt collector. So if an original creditor is harassing you or has crossed the line, you should still file a complaint with your state’s Attorney General as well as the FTC. If a clear pattern of abuse emerges, the original creditor can be charged with unfair or deceptive acts or practices, either under state law or under the FTC Act that governs conduct of commerce in our country.

To sum up, if you are on the receiving end of collection harassment, don’t just take it. Educate yourself on your rights as a consumer, vigorously dispute debts that you don’t believe you owe, and take action yourself in the form of complaints to your Attorney General and the Federal Trade Commission. By standing up for your rights, you can put a stop to bogus threats and illegal collection tactics.