As a result of dramatic changes in the economy of recent years, a household industry has emerged, which provides consumer debtors with a "gospel" to get out of debt. However, although many people advise on debt relief, the debt reduction guru is Dave Ramsey. I'm Ramsey's student and fan. To a certain extent I insist on the debt reduction philosophy. However, unlike Ramsey, I am a lawyer for consumer debt reduction. While Dave Ramsey provides useful information and common sense advice on debt reduction, he does not tell a lot about debt recovery.
Ramsey's approach to debt management can be summarized as follows:
1. Make a cash cash checkout
. First, pay the smallest debts and make bigger debts with Ramsey's "debt snowball" technique.
3. Making cash with debt for debt
Although this is a viable method of debt settlement, it is likely to make more money than debt relief. The taxpayers of this technique usually pay 100% and pay interest on the due debts. The use of consumer debt services provides a much more efficient and affordable strategy for settling and settling consumer debt. On behalf of my clients, I rarely settle a collateralised debt on more than 50% of the balance. In fact, many debts were completely eliminated without the lender paying.
Whenever the debtor contacts them to request information to resolve their debt crisis, there is never a "one size for everyone" explanation. It is important to know the identity of the creditor, regardless of whether the debt is assigned to a third party, the debt amount, the type of debt, the law firm or account management agency, the debtor's residence and the general financial situation of the debtor. These factors determine the difficulty the creditor faces in trying the judgment and the extent to which they are trying to make a judgment. If a case is difficult to cope or the lender is not very aggressive in litigation, the debtor has a greater influence over the negotiations.
They enjoy two main types of creditors; original creditors and debt buyers. The original lenders are the banks and companies they originally contracted with. Debtors are companies that buy debit accounts with a significant exchange rate loss, with the intention of generating profits by collecting debts. In general, debts with debts can be accounted for much less than they would pay to the original lender. One of the reasons for this is that an original lender attempts to repay the money borrowed from the capital with the interest on their profits. The debt buyer usually accounts for 2% of the relative amount of debt to 5%.
Therefore, little money is needed for the debt buyer to make profits. The identity of the creditor is also important in the pre-litigation procedure to decide whether the creditor is likely to sell the debt or retain the debt internally. Many debt buyers often use practices that are based on the Fair Debt Collection Practices Act and generally have little documentation to support their claim. The counterclaim in the debt buyer's case often results in the release of the debt. Original creditors use different accounting policies and guidelines. This information, if the debtor is unknown, will pay more money than it needed. From a lawyer's point of view, the most important question is the probability that the debtor will successfully defend the collection lawsuit. The stronger the opportunity for the debtor to gain a profit from the debt judgment, the greater the leverage that can be expected in the negotiations.
Although we win the vast majority of consumer credit issues, some are more difficult to win than others. For example, litigation with credit card debts, exclusion certificates, and automatic redemptions is much easier to win than medical debts and homeowner's association fees. Knowing the type of case helps to evaluate the creditor's claim and to determine the amount to be provided as a settlement. The amount of debt may also affect the possibility of settlement. Although it seems common sense that the greater the debt, the more you have to pay, this is not always the case.
For example, I recently received a call from an AMEX representative that a new policy for a limited time allowed credit card accounts amounting to over $ 25,000 and to be solved at 20% of the debt ratio in litigation. However, accounts for litigation of $ 15,000.00 or less can only be settled at 50% of the debt ratio. According to this policy, larger debt will be less than the larger debt. However, this option is only available to clients who have rented a lawyer to fight lawsuits. If the debtor is involved in debt enforcement, he has to pay the lawyer's office and the judge he is facing. Many collecting companies handle all cases in the same way. Knowledge of their methods helps to exploit their weaknesses. Knowing how the judge behaves in collecting matters and in relation to the civil procedure is also important in defining how best to defend the debtor's case. Finally, the place where the debtor resides will be the case where the lawsuit is filed. This information helps to assess whether the case is the time to start the trial and the distance between the creditor witnesses being sent to the court. Of the state creditors, they rarely testify at the hearing. Another mistake in Ramsey's approach is that he does not recognize bankruptcy as a legitimate debit strategy. While bankruptcy is only used as a last resort, for some people, bankruptcy is the best way of debt settlement. A person who is trying to help someone facing a debt crisis honestly evaluates the debtor's overall financial position in order to determine whether the debtor can and must file a bankruptcy to avoid financial collapse. No one has counseled to risk the financial well-being of his family in order to pay interest to a bank or credit card company.
My approach to debt settlement is very different from Ramsey's approach and can be summarized as follows: 19659003] 1. Do not stop paying out unsecured lenders.
2.) Debate in writing in writing and requesting the validation and verification of the invoice and amount
3. Do not speak to creditors on the phone.
4. Save all the money you can afford to use later on debt accounts that can not be overcome through litigation.
5.) If you are a non-credible creditor, hire a lawyer who specializes in you.
6.) Only settle claims that provide significant reductions and those that can not be overcome.
7.) If you do not have the tools and there is no way to save funds, determine whether you are eligible for the file Chapter 7 Bankruptcy.
The biggest weakness Ramsey's approach to debt settlement is not recognizing the struggle against collection efforts and debt as a valid tool for debt settlement. Debt payment is the only option he provides. Although it is controversial, the lender refuses to negotiate due to the refusal of payment. As long as you believe that all credentials are to be credited to the creditor, you will still need more money. Having accepted that the debt settlement process is a negotiation and not a moral obligation for you, the more effective it will be to release the debt.
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