Huge unsecured debt makes it impossible for the debtor to lead a normal life with the creditors after their money and finances going to dumps. In this case bankruptcy is not the only possible option with the new age options like debt settlement. Debt consolidation, credit counseling and lower down payments. Each option carries with itself its set of good and bad points. However all of them can reduce your debt greatly or make it...more
With the current economic scenario everyone is desperately finding ways to eliminate their debts. Credit card debt negotiation has become one of the most popular systems for attaining debt freedom. Many people have lost jobs or have had their salaries reduced during the recent economic slowdown. For them it is difficult to meet their daily expenses and keep up with their debt payments. Credit card debts can seriously weigh down...more
Credit card debts when get out of hand can make you miserable. This is a debt which gets heavier with time. It is easy to plan ways of getting rid of your debts but difficult to execute them. There are a few steps that you can follow in order to pay off your debts as quickly as possible.1. List out all your debts: You will have to make a list of all your debts with their current balance and interest rates. With this data in hand you will be able to come up with a payment plan which will suit you the best. Some like to pay off the lowest balance first while others might just want to get rid of the one charging them the highest interest rate. You have to choose the one which you are most comfortable with.2. Save Money: You have to cut down on all you extra expenses. You could save by taking your lunch to work. Cancel out any gym membership if you are not using it. There will be a lot of items under entertainment section or miscellaneous section of your expenditure list that you can do away with in order to save some money.3. Try generating extra income: You can generate more money to pay off your debts faster. You could either take up a part time job or sell a few...more
One of the most popular options for coming out of debt is debt settlement. The unsecured debts charge higher interest rates than the other loans. The biggest problem is the credit card debts which can easily get out of hand as it is generally unplanned expenditure. One should try to clear their debts as soon as possible. Debt...more
The market is slow in recovering from its recent economic crash. Most of us are still deeply into debt. For those having huge amount of debt in unsecured debts can take help of debt settlement to clear them off. Creditors offer debt settlement on those accounts where they think the investment has gone bad and chances of recovering...more
When any financial institution settles a portion of your debt, then they issue a 1099-C. This 1099-C reflects the amount that has been settled. The IRS will consider the amount mentioned in 1099-C as taxable. This tax can only be avoided if you can prove insolvency at the time of settlement. In order to do this you will have to follow a few steps.First you must compile all your 1099-C and get the total amount that has been settled or cancelled by your creditors. Let's say you had a debt of $ 10,000 and creditors settled it for $ 5000. At the time of settlement your creditor will issue a 1099-C with $ 5000 mentioned on it. As per rules, any settlement amount above $ 600 has to be informed to the IRS. The IRS will treat this $ 5000 as an income. Now you need to make a list of all your assets. Anything valuable which can be sold for cash is an asset. This list will include your house, car, jewellery, and any other valuables. Next to each item you have to put a fair market price of that object. Make a list of all your liabilities including your debts.Now you can use this data to create a financial statement. You will have to create a table to compare your assets with...more
For a long time the best way of getting out of debt had been bankruptcy. However, people have learnt that bankruptcy is not the best option for those in financial trouble. This is not only because of the effect it has on one's...more
A debt settlement attorney is an expert in negotiating with creditors and financial institutions on various types of loans. They also give tax related advice to their clients who are trying to get out of debt. A lot of people have come...more
he direct tax paid by the people constitutes a major part of the revenue for the government. Hence, it is mandatory for everyone to pay their taxes. Evasion of taxes is a crime and an unpardonable offence. Tax laws applied not only to...more
People who have faced unemployment due to the recent economic recession find it hard to pay off their debts just like those who are facing financial difficulty due to other reasons. Debt settlement is the most common sought of relief...more
The recent trend shows that more and more people are opting for debt relief options in order to come out of their debts. People are becoming aware of the fact that paying only the minimum on your account does not help in bringing down...more
Most debtors would agree to the fact that an improvement in life style will be possible if you could get rid of your debts. Getting out of debt is one the top five priorities of all Americans. There are many techniques that you can use...more