Debt Settlement, debt negotiation, and debt consolidation, are terms used by firms who charge fees to negotiate lump sum settlements with credit card companies. Regrettably, these companies do a much better job of eliminating your worries with a false sense of security than they do of eliminating your credit card debt problems.

Their fees, a minimum $1500-2000 on $10,000 in debt make it difficult for settlements to take place before credit card debts charge off and are sold. Their lump-sum settlement programs are standard. You stop making payments on your credit cards and pay that money into an account they have created for you. They take their fees out of that account then they pay your creditors, when, and if, enough money accrues to strike a settlement.

According to MSNBC, settlement firms often promise more than they can actually deliver. They keep their fee whether or not a settlement agreement is achieved.

Due to Federal Reserve regulations, credit card companies write off their bad debts after six months. The difficulty is if an indebted consumer cannot save enough money with the debt settlement firm to settle the debt within six months, then they could be faced with bad credit, collection agencies and lawsuits.

After the charge off of bad debts the credit card banks sell large blocks of those debts to junk debt buyers for around 10 cents on the dollar. The buyers of this junk debt will then attempt to collect on these credit card debt(s). It is better for the consumer to demand the return of their money and to use consumer protection laws like the Fair Debt Collection Practices Act to fend off, rather than attempt to settle with these scavengers, according to the Credit Card Debt Survival Guide.

Eliminating credit card debt through debt settlement is best accomplished on a do-it-yourself basis. Consumers must be ready to present a need-based case for a reduced balance settlement, according to the Credit Card Debt Survival Guide.

Matt Highlander researched the Credit Card Debt Survival Guide. Learn about debt settlement and legal nonpayment strategies for eliminating credit card debt. Matt Highlander is a contributing writer.

Important Merchant Account Comparisons And How They Affect Business Cash Flow

Merchant accounts allow businesses to accept payment for goods or services via credit cards. They are contracts between an acquiring bank who extends a line of credit to the merchant.

Did you know that customers are more likely to purchase from businesses that offer credit card facilities? Statistics show that businesses using merchant accounts can see an immediate increase in the number of sales. These statistics are based on the average cash sale being only $9, while the average credit card sale is approximately $40.

Regardless of the type of business, the availability of merchant accounts will definitely improve your cash flow in several ways. Below are some benefits for using merchant accounts:

- Having credit card facilities means customers can purchase right on the spot.

- Processing fees for merchant accounts can be lower than check transaction fees.

- Issues about debt collection will become the bank’s problem, not yours.

There are obvious and clear benefits to having merchant account facilities in your business. There are also drawbacks that should be examined as well.

- You will have to institute measures to protect your business from credit card fraud.

- You may need to examine and possibly revise your policies concerning charge-backs and refunds to minimize damages.

- If you accept credit card payments via your website, be certain youre using fraud protection measures to minimize scams, thefts and fraudulent charges

Setting Up Merchant Accounts

Setting up a merchant account can be relatively simple. You will need to set up a bank account for your company for the proceeds of any credit card purchases to be credited to. You will also need to lease processing equipment and software that will facilitate transactions.

If you’re planning to process credit cards via your company’s website, then you’ll need to register with a payment gateway like VirtualNet or CyberCash. You should also make sure that the merchant account software you’re using will be compatible with your online payment gateway.

Merchant Account Comparisons

Before you call your bank to get a merchant account, take the time to compare the options and offerings of several different banking institutions, in addition to merchant account providers. Fees and charges often vary greatly, so its very important to check what you’ll be charged and what fees are likely for each transaction.

For example, fees could include initial start-up costs, monthly lease fees for equipment, transaction fees…even sales volume costs and processing fees. Ask any potential provider for a written list of all the fees you’ll be charged so you can compare them accurately with other vendors.

Merchant Account Charges and Fees

Most providers will charge some form of application fee. This can vary from $0 up to $100 and sometimes more depending on your lender.

You will also need to pay for your software, which will have an initial cost of around $80-$100. Once the software is installed, you’ll then have to pay the licensing lease on the software, which could be anywhere between $20-$50 per month. Once again it depends on your lender.

On top of these, you will incur transaction fees that range between $0.20-$0.50 per transaction. While these don’t sound high, if you process a lot of transactions they can really add up.

Other fees to query with your chosen merchant account provider are statement fees, charge back fees, close-out fees, minimum usage fees, annual fees and account keeping fees.

David P. Montana has been a recognized industry expert, business consultant and author in commercial collection agencies and other business services for thirty years. Read more valuable tools and resources, including negotiating tactics, and important red flags and pitfalls to avoid when considering merchant accounts.

Debt Reduction Solutions

Have you ever wondered what debt reduction solutions are all about? This informative report can give you an insight into everything you’ve ever wanted to know about debt relief grants.

Debt reduction companies work with creditors to reduce the amount owed by their clients. AARP financial counsellors report that some debt reduction programs aim to get the credit companies to accept a reduced amount of payment. Debt reduction Australia disclaims any liability due to our contents fitness for any particular situation. As this is not a site run by professionals in the finance and debt recovery fields and therefore advice from the appropriate representation in this field may be required in your situation before applying any suggestions or affiliated products. Debt reduction assistance on a smaller scale is known as debt counselling. The idea is to offer knowledge to the individuals.

Credit card interest expense is not tax deductible, meaning you should only invest if you think you can earn a 22% after tax return on your investments. Given that the historical long-term return on equities has been somewhere around 11-12%, this seems highly unlikely. Credit card debt reduction consolidation is the right way to go if you want to immediately work on reducing or eliminating your card debt. It’s being used by many people effectively for debt reduction. Credit repair can work if you know how to do it.

How can you put a limit on learning more about debt relief grants? The next section may contain that one little bit of wisdom that changes everything.

Credit counselling companies are vying considering your business. This charge be a good option as you shop around to find the best plan exterior there, but best kind as you learn that bounteous companies will outbreak exorbitant fees or sign work for you that you can do yourself.

Later on, the new instalment could be much more manageable and should reduce the account quicker because less money is being flushed down the toilet on high interest. The only con is having to put up some sort of valuable to get the new loan. Late fees can be brutal and you may encounter yourself getting a few calls whether you are not prompt with paying these bad credit debt consolidation loans. However, it is quality it consulting that the loans are a processes of assisting you get out of debt.

Financing companies generally give bigger loans to individuals with a good payment record will naturally be allowed a bigger loan. So if a borrower intends to borrow money, he will have to work on improving his credit score by paying off those smaller debts and inform the credit rating establishment. Financial corporations provide unbiased consumer information, software and marketing services for the mortgage, debt, foreclosure, auto lending and other financial or real estate related industries.

Hopefully the sections above have contributed to your understanding of debt relief grants. Share your new understanding about debt reduction solutions with others. They’ll thank you for it.

About the writer: provides free resources on debt reduction solutions and ways to access debt relief grants. You have full permission to reprint this article provided this paragraph and the hyperlinks are kept unchanged.

The Lies Concerning Bad Debt Consolidation

Many people think there is nothing worse than being in debt, but there is. Being in debt and falling behind on the monthly payments is much worse, because your credit score begins to fall. When you reach that spot, be careful. A bad debt consolidation loan will be waiting just around the corner to lure you into a trap.

Many people will tell you that you won’t be able to get a consolidation loan if you have bad credit. That is not true. There are places on the internet that will guarantee you a consolidation loan for your bad debt. There is always a consolidator that will be ready and willing to entice you with an easy to get bad debt loan that will lump all of your debt together. What they don’t tell you is that your interest will be as high as 20 to 22 percent because you’ll be considered a high risk.

All of this is true: lower monthly payments, all of your bills lumped together into one monthly payment and extra time to pay it off. You. ‘ll have at least 10 years to repay your loan, and they will extend it even longer if you ask them to. Have you considered what the results will be of that extremely high interest rate? You. ‘ll pay a whole lot more in the long run.

They will even paint a rainbow in the picture by offering to take care of everything. They aren’t lying either. They will charge you an extra 10 percent fee that will be hidden in your monthly payments. If you pay $500 per month, $50 will go to the consolidation loan company and only $450 will go to your actual creditors. In the long run this will add a considerable amount to the total you have to repay.

You need to ask yourself if it is really worth paying someone else that much money, ($40 a month over 10 years, the minimum time you can pay it back, is $400) to do something that you can do yourself? You can talk with your creditors and negotiate a lower interest rate, stretch out your repayment plan and pay off the highest interest debt first.

Be careful, because these consolidation companies have a bag full of trick tactics. They will promise you that you can rebuild your credit quickly when you only have to make one monthly payment, and you make it on time. The problem comes when they pay your creditors late. Your credit will bottom out.

What can you do? Instead of turning to bad debt consolidation, turn to your creditors first. Tell them your situation, and see if you can work out a solution. You will still have the many monthly payments, but you’ll save yourself a lot of money in the long run.

Will Debt Consolidation be the answer for you money problems? Learn ways that you can use Bad Debt Consolidation to help you out. Get out from under the pressure of all those payments now!

Debt Slaves: Barely Hanging On

Are you days away from being evicted? Are you more than six months behind on your mortgage? Are creditors harassing you? Do you loath checking the mail? Do you wake up in the middle of the night, terrified creditors are at the door? Do terms like consumer debt settlement make more and more sense? Well, for what it’s worth, you’re not alone.

Like 85% of households in the US, you probably live from paycheck to paycheck. Should something happen and that next paycheck disappear, you’d be in ruins. Unfortunately, this is also all too common. Welcome to life in the 21st century. Not all you thought it was going to be, eh?

No one grows up to be a debtor. It’s something that happens while you’re busy making other plans. It’s something that happens while you’re in school, working hard to earn your degree in fine arts or poetry. You relied too heavily on credit and student loans to get you through, convinced that your brilliance was going to save the day.

Welcome to the rest of your life. While you may well be brilliant, turns out no one is willing to pay you for it. The days of sheer brilliance paying your bills and putting food on the table came and went with Pollack and Nash. That part-time job now means everything and I bet you’re wishing you had majored in something a bit more…practical.

Yes, you should have listened to dear old dad when he warned you. Now, your fall back isn’t mathematics or computer engineering. It’s the $9.00 an hour you earn as a cashier at Whole Foods. Not exactly the best recipe for getting out of debt or taking care of a family. Yes, that old drowning feeling is back and it’s here to stay.

You need to start paying attention to terms like consumer debt settlement and carefully weighing your options in life.

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