Dig up cash for Debt Settlements
I’m sure you’re saying, “I don’t have any money to settle my debts or I would have paid my debts – what do I do?” Well, you may have to make some hard choices to get out of your problems. And you may have assets that you hadn’t thought to tap into, here are some ideas:
Automatic Deposits into a Savings Account
Basically, this means talking to your bank and setting up an automatic transfer from your checking account or other regular account you use and transferring money into a savings account. Oftentimes, to find the money to make these payments, you can simply stop paying your unsecured bills until you have enough to make a lump sum payment. When enough money is saved, a debt reduction settlement is negotiated for one of the accounts. The strategy, of course, is to first settle the account which is most troublesome and which may provide the greatest savings. The process continues in this fashion until all debts have been settled in full. Remember, creditors are much more likely to settle for less money when you pay in a lump sum, and also when you are not current on the account.
Tap into the ole' Savings Account, Money Market Account, CD's
What's 2% interest, when you can save 50%? In addition to saving this money, (and potentially your credit rating if you get them to report you as “Paid As Agreed”) you'll stop high interest charges, and perhaps late fees and other related charges.
Yes, it's time to tap into Stocks, Bonds, Mutual Funds or Other Investments.
Again, even if you are making 10% on your money in these accounts, you are
getting a better deal by saving potentially 50% or more by negotiating with a lump sum. Getting a 10% return on an investment is often considered great, especially these days. The piece of mind and peaceful-looking credit report you’ll get by settling your debts is well worth some delay in building your retirement. As mentioned above, you may also stop collection calls, interest charges and late fees!
Borrow from Family, Friends, or Relative
Don’t be afraid to ask those who love you to help you out. You'll be surprised how often family members and friends are willing to step up to the plate and render assistance, especially if this is the first time you’ve gotten into trouble. The only way to find out is simply to ask.
Retirement Funds
Although the experts warn against borrowing against your401k, it’s still better than defaulting on your debts. And if you have an IRA, SEP account, annuity, trust fund, or other forms of retirement funds, the tax penalties may still be less than a ruined credit report or saving money on a debt settlement. It’s not a step to take lightly, so you are smart to consider your options carefully.
Borrow from Whole Life Insurance Policy
If you have cash value in a life insurance policy, you can typically borrow from these funds at a very low interest rate. Best of all, you need not repay the loan. As a consequence of this, however, your life insurance benefit will be reduced by the amount you borrow and any accrued interest. But, being debt free, the reduced stress may add years to your life!
Sell Assets
Here’s the hard part of it all, selling those treasures of yours. You may have valuable assets that can be sold to get the money you need for debt settlements. Things which really are (come on, now, it’s time to be practical) luxuries like that extra car, recreational vehicles, family heirlooms, gun collections or even your home. Remember, if you are unable to resolve your financial hardship through debt settlement, it’s possible that the creditor will sue you for the cash.
Home Equity Loan, Second Mortgage, Home Refinancing, Reverse Mortgage Notice: This method should ONLY be used when it results in significant savings, and the effect of it resolves your financial hardship. You must be reasonably certain that you will never default on the obligation. Otherwise, it is not practical and financially sound to convert unsecured debt to secured debt and risk losing your home!
Increase Your Income
Ever consider getting a second job or having your spouse take on part time work? How about learning to budget more carefully? If you learn to spend less, this is essentially increasing your income, as you will have more money to save.
******Usman ahmed owner of this blog created this post with his knowledge.All content provided on this blog is not copied from any other blog and site and is for informational purposes only and The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.
I’m sure you’re saying, “I don’t have any money to settle my debts or I would have paid my debts – what do I do?” Well, you may have to make some hard choices to get out of your problems. And you may have assets that you hadn’t thought to tap into, here are some ideas:
Automatic Deposits into a Savings Account
Basically, this means talking to your bank and setting up an automatic transfer from your checking account or other regular account you use and transferring money into a savings account. Oftentimes, to find the money to make these payments, you can simply stop paying your unsecured bills until you have enough to make a lump sum payment. When enough money is saved, a debt reduction settlement is negotiated for one of the accounts. The strategy, of course, is to first settle the account which is most troublesome and which may provide the greatest savings. The process continues in this fashion until all debts have been settled in full. Remember, creditors are much more likely to settle for less money when you pay in a lump sum, and also when you are not current on the account.
Tap into the ole' Savings Account, Money Market Account, CD's
What's 2% interest, when you can save 50%? In addition to saving this money, (and potentially your credit rating if you get them to report you as “Paid As Agreed”) you'll stop high interest charges, and perhaps late fees and other related charges.
Yes, it's time to tap into Stocks, Bonds, Mutual Funds or Other Investments.
Again, even if you are making 10% on your money in these accounts, you are
getting a better deal by saving potentially 50% or more by negotiating with a lump sum. Getting a 10% return on an investment is often considered great, especially these days. The piece of mind and peaceful-looking credit report you’ll get by settling your debts is well worth some delay in building your retirement. As mentioned above, you may also stop collection calls, interest charges and late fees!
Borrow from Family, Friends, or Relative
Don’t be afraid to ask those who love you to help you out. You'll be surprised how often family members and friends are willing to step up to the plate and render assistance, especially if this is the first time you’ve gotten into trouble. The only way to find out is simply to ask.
Retirement Funds
Although the experts warn against borrowing against your401k, it’s still better than defaulting on your debts. And if you have an IRA, SEP account, annuity, trust fund, or other forms of retirement funds, the tax penalties may still be less than a ruined credit report or saving money on a debt settlement. It’s not a step to take lightly, so you are smart to consider your options carefully.
Borrow from Whole Life Insurance Policy
If you have cash value in a life insurance policy, you can typically borrow from these funds at a very low interest rate. Best of all, you need not repay the loan. As a consequence of this, however, your life insurance benefit will be reduced by the amount you borrow and any accrued interest. But, being debt free, the reduced stress may add years to your life!
Sell Assets
Here’s the hard part of it all, selling those treasures of yours. You may have valuable assets that can be sold to get the money you need for debt settlements. Things which really are (come on, now, it’s time to be practical) luxuries like that extra car, recreational vehicles, family heirlooms, gun collections or even your home. Remember, if you are unable to resolve your financial hardship through debt settlement, it’s possible that the creditor will sue you for the cash.
Home Equity Loan, Second Mortgage, Home Refinancing, Reverse Mortgage Notice: This method should ONLY be used when it results in significant savings, and the effect of it resolves your financial hardship. You must be reasonably certain that you will never default on the obligation. Otherwise, it is not practical and financially sound to convert unsecured debt to secured debt and risk losing your home!
Increase Your Income
Ever consider getting a second job or having your spouse take on part time work? How about learning to budget more carefully? If you learn to spend less, this is essentially increasing your income, as you will have more money to save.
For The User
******Usman ahmed owner of this blog created this post with his knowledge.All content provided on this blog is not copied from any other blog and site and is for informational purposes only and The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.
Thanks so much for sharing this. I have been looking into a cash for settlement program that will allow me to get some money right away. I have some debts to pay off and I could really use anything that I can get.
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