Debt Settlement Attorneys: Will they save you from debts?

The economic scenario that became dismal during the financial meltdown has propelled thousands of Americans to fall into the vicious trap of debts and they have turned to the debt settlement companies for savior. Debt settlement is a perfectly legalized solution for people who are desperately seeking a way out of neck deep debts and avoid filing for bankruptcy. Initially, the consumers often try to dodge their debt related issues that makes it more complicated and unpleasant. The best way out to ease off your debts is to approach a qualified and professional debt settlement attorney who can spearhead the entire process of settling debts with their practical experiences in handling such cases.

The principle function of a debt settlement attorney is to negotiate with the creditors for a debt reduction by establishing successful contacts with each and all of your creditors and collection agencies and finally settling down with a reduced repayment schedule. The debt settlement attorney can help the indebted consumers to a large extent by asking the creditors for a complete cut down of all premiums and penalties that are deepening up on their accounts. By applying their valuable knowledge and workable strategies they can end up striking the best deals to resolve the consumer debts. These lawyers will first have a detailed assessment of the financial condition of the debtors and then try to balance the income and the expenses for deciding the amount of monthly installment that is to be paid by the debtors. Thereafter, the debt settlement attorneys will go into direct negotiation with the creditors and the creditor harassment can be reduced automatically as the debtors will pay their indebted amount. However it is also important for the consumers to acquire a detailed credit report from the debt settlement attorney to have a clear and vivid idea about its inclusions and to check for any mistakes which can later assist them to have good credit ratings and proper management of finances. Consulting the debt settlement attorneys is the ultimate solution for the consumers for dealing with all their debts and related issues that will help them to reduce about 50-60%of their debts from the original balance amount. With a strong focus on consumer debts, they can help them to get complete monetary freedom.

Is debt settlement a worthy option for the Consumers?

Debt settlement companies have grown in number since the onset of recession and helped the people of America who could no longer manage their debts. As a matter of fact, the consumers of the American society had no other option but to embrace the option of debt settlement to get rid of their financial obligations. However, in a hurry to get respite from their debts, they did not even bother to check the legitimacy and the reputation of the company from which they have so willfully decided to opt for these services. It is not untrue that when it comes to financial management, Americans are clueless. This is reason enough that a majority of the consumers have fallen prey to debts and financial hardships. Although, debt settlement has helped innumerable citizens to get out of debts, they have also marred their finances to a large extent particularly because the consumers did not check the credentials of the debt settlement company. However, the reasons for which the American consumers have got into bad debts is due to their habit of spending in an extravagant manner and at times it becomes so irresistible that they may end up buying things beyond their means which is no less than a calamity during an economic crisis; debt settlement companies perhaps indicate that the Americans are still in trouble.

But a majority of debt settlement services do not follow fair dealing methods with the intention of minting money through their clients without taking proper care of their credit score. There are several debt settlement companies that are full of scams and take away people’s hard earned money when they are in deep debts and utter trouble. But the fact remains that handling the creditors and the officials of the collection agencies is the last thing that the consumers desire. Actually debt settlement is a process wherein the lawyers and the debt experts try to negotiate with the creditors to work on a reduced amount of the total outstanding balances.  However, these companies are more famous for making efforts to rope in more people to offer them with fake and flowery promises for ending their debt issues.  In fact, settling debts with professional agencies is a matter of intensive research and a careful approach to get hold of the right company would do more good to deliver the consumers from debts.

Benefits of low interest credit cards

The interest rates of the credit cards are the greatest influencing factors for the balance that we usually carry on a credit card account which on the other hand has an effect on the monthly finance charges; so these low interest cards have emerged to be the more popular ones because it can allow you to save a significant amount of money in both long and short term basis. Apart from saving money, these cards act as good financial tools to improve the credit score which poses as the deciding factor for securing loans and availing credits. Most of the credit card issuers also provide the low interest cards along with the advanced ones. But as all good things come with a flaw so also the low interest cards, as the offer which may initially seem as tempting may turn out to be the wrong deal if you lose sight of the drawbacks as well. As credit card debts have been the ruling and the most persistent problems with the Americans during the last few years, one should not forget to exercise control while making use of these cards even if they have been quite familiar with the best credit card debt help; accumulating debts is one thing which should be strictly avoided.

The low interest credit cards can come to your help if you have ended up spending more than your limits which you are otherwise unable to pay back. A low interest credit card may also allow you to have the advantage of lower minimum payment but it depends on the way that the bank or any other credit card issuing company is going to calculate the amount .Either ways you should be careful while applying for the credit cards and assess the purpose, for which the cards will be utilized. But the best thing is to compare the rates and finance charges of the low interest credit card before you can actually make a choice of opting for one.

Consumption Smoothing and the consumer

It is nothing new and perhaps you have heard of it so many times before that you need to have substantial savings for your retirement years. Followed by this there are other things such as not getting into so much debt as to consult the debt relief programs or to live within your means. The percentage of amount that you may have to save during your lifetime will depend on the time of your retirement; it will also depend on your lifestyle during the leisure years. Following the principles of money management is easier said than done. Life is ever changing and over a period of time your needs may change as well. For instance, your financial needs will increase as you get married and have kids. It is only common to succumb to the sheer pressure of financial discrepancies. However, instead of giving up under the circumstances of financial stress let us get into the concept of Consumption Smoothing. This concept is related to Macroeconomics which implies that a consumer’s earnings should be balanced in order to be able to maintain the best standards of living. The basic idea of the concept is to rationalize the spending and saving strategies so that the consumers are able to have a consistent lifestyle over the period of time. The dangers of over spending have surfaced during recession and all of you are familiar with it. Unlike the common idea that one should keep on with the savings target to enjoy during retirement rather than being indigent is not what is stressed by Consumption smoothing. It simply states that the level of spending should be even and you will automatically enjoy your retirement years. The financial experts may however have a different view towards this concept. A noted economist has discouraged the use of this concept citing two reasons:

·           1) Firstly, it is too difficult to understand the saving and spending strategies in one’s time and it is essentially complex.

·          2)It may not arouse motivation in your financial management.

 Some people may simply use the concept of Consumption Smoothing to procrastinate their financial goals particularly saving. In that case, you will have to save more to compensate for the future needs and it is better to stick to the age old tradition of saving and spending.