Consumer debt programs

Are you in debt and looking for a professional debt advice companies to get out of debt?

I will tell about a company which has designed debt management plans for people facing money problems. The company’s name is Advocate Credit Assistance(ACA). They have designed consumer debt programs for debt settlement, bankruptcy, credit counseling, and debt consolidation.

The company has experienced and trained debt consultants who can explain your options in clear and lucid language. I think their advice and solutions will get you out of financial crisis. They have good relationship with creditors and financial institutions. This helps them to negotiating with creditors in friendly environment. ACA charges a very affordable fee for their program.

ACA is a member of The Association of Settlement Companies.

Debt Negotiation: Get the Facts

(PRWEB) February 20, 2004 –We looked into debt negotiation and the impact this debt service has on consumer credit rating. There is apparently a difference of opinion on this subject. We discovered some debt negotiation companies that claim negotiating accounts improves the credit rating. We also found those that said debt negotiation causes serious negative impact into a consumers credit rating.

We have confirmed that the act of negotiating past due accounts has a positive impact on a consumers credit rating, particularly over the long-term. The reason is that paid/settled accounts that are negotiated are much better than unpaid past due accounts. For consumers with unpaid delinquent accounts this makes negotiating a settlement either on their own or using a debt negotiation service a superior alternative to either ignoring the delinquent past due account or, considering the savings, paying the past due account in full. Negotiating delinquent accounts does improve the credit rating.

The dilemma lies with those consumers who have current accounts, and a good credit rating Current accounts cannot be negotiated. It seems there is no motivation on the part of the creditor to accept less than the full balance on a current credit card account. Therefore, those with current accounts must allow those accounts to be delinquent to negotiate which does conclusively affect the credit score. Some consumers credit score is already negatively impacted by the debt itself and in this case negotiation of the accounts may be a better alternative than to continue making minimum monthly payments for the next 30 years and still have bad credit.

Nevertheless, debt negotiation or debt settlement for people with current accounts will probably have an adverse effect on the credit rating. Our research indicates the consumer credit score is negatively affected by the delinquency period. This occurs for two reasons. The account is late and as the delinquency period extends (60, 90, 120 days) the way the account is reported by the creditor to the credit bureau has a continuing derogatory effect on the calculation of the credit score. Secondly, the amount listed in the payment due column increases as past due payments stack up. If the accounts are current but the credit score is low due to high balances or a history of late payments, this is not an issue. Those with a high credit score must weigh the negative impact on credit rating with the promise of debt elimination for less than the full balance.

Once the accounts are resolved however the credit seems to improve. The account balance and payment due is reported as zero. This has a positive impact on the account and the credit. The history of the delinquency remains, but the account moves from the current derogatory section of the credit report, to the closed account section. As months pass this derogatory history has less and less bearing on the credit score. Mortgage lenders believe that after 12 months the accounts are given very little consideration. It appears that provided all other obligations are paid in a timely manner (House, car, other accounts kept current) that the effects of the negotiation process are temporary.

If you are considering debt negotiation and you plan to hire a debt negotiation company it is highly recommended that you choose a company that meets state and federal guidelines and has a record with the Better Business Bureau.

Get a free guide to disputing credit report errors

Do you know that your credit report is often scrutinized by prospective landlords, employers and insurers to ascertain your credit worthiness?

Financial experts say that a healthy credit score enables a person to get low interests loans and mortgages. They advise individuals to view their credit reports annually. They should report to authorities if they find any mistakes. You can get a free guide to disputing credit report errors from The Federal Trade Commission’s website.