Debt happens. As a whole, our society has been caught up in the bigger, better, faster, more expensive thought process that has brought about so much debt. Coupled with banks that have precisiely calculated measures to put you on the edge of financial suicide there comes a point where life suffers. We all want happiness, romance, a great and fulfilling life and to be able to provide the neccessities to our spouse, partners, and children, but at what cost.

Every city is different, but there is a very pretentious crowd in Dallas that I see does place emphasis on where you eat, what you drive, all of the things in life, but no one is being taught how to have a great time on a budget. I recently read through a post from Debt Advice Trust, a debt counseling agancy out of the UK, that highlights ways to  keep the romance on a budget.

1. Go for a picnic - romantic gestures do not have to be expensive and taking a date on a picnic in the park with some homemade goodies is not only cheap but incredibly thoughtful - a sure fire winner.

2.  Rent a film - with some cinemas now charging up to £12 per screening it's a miracle any one can afford to go. By renting a film you can set the mood in your own home, will not have to deal with annoying children kicking your seat and of course if the film is really good you can watch it again and again without incurring the cost.

3. Go to a museum - forget the cliché there is a reason why people take dates to museums, not only do they make you look ‘clever and cultural like' but they give you something to talk about together that could ease your nerves and encourage conversation. More importantly, they are free. 

4.  Go for a romantic walk in the park - sounds obvious doesn't it, but not only can a walk in the park be extremely romantic, it can help improve your exercise regime and of course is free so will save you money.

5. Cook at home - Save money on stuffy, expensive dining costs by staying at home and impressing your date with your culinary skills. Light the candles cook up a storm in the kitchen and watch as your date thinks you are the best thing since sliced bread - excuse the pun. 

These are all excellent ways to keep the romance on a budget. Debt does not mean that your life has to stop, but does require some adjustments to  get out of debt. Analizing the way you live and spend money could save your financial life.  

The focus of Total Debt Services is on unsecured consumer and business debt, however, there is an overwhelming need for student loan consolidation. Due to laws and regulations there are some things that a debt settlement company cannot help a consumer with. Student loans are different from unsecured debts and require a different skillset, contact list and education. As a service to consumers we have talked with and screened several companies that claim to consolidate student loans and reduce monthly payments. After a long process we have chosen to back Consolidation Campus in their efforts to assist consumers.

Reduced monthly output through student loan consolidation is one way to free up cashflow to resolve other outstanding debts such as credit cards, mortgages, medical bills, and car payments. For a free no obligation analysis of your financial situation and to determine what the best options are for you in reference to your unsecured debts, Call Now 866-671-DEBT.

By Ashish Rajan, CardTrak.com 

Consumer revolving credit jump significantly in March as Americans tacked on more $6.0 billion in net new debt, mostly credit card debt, compared to the prior month. In February consumers added about $4 billion. Revolving consumer credit has now reached a record $957.2 billion and is growing by 7.9% per annum. Based on revised figures, revolving debt rose 5.0% in February and 7.1% in January. According to data released by the Federal Reserve, total revolving credit has expanded by $70 billion over the past twelve months. Bank credit card debt (excluding store and gas credit cards) at the end of the fourth quarter was about $800 billion or roughly 85% of total revolving credit, according to CardData. Store and gas credit cards had about $109 billion in outstandings at year-end 2007. At the end of March, Americans were $2558 billion in debt, excluding home mortgages.

REVOLVING CREDIT HISTORICAL ($billions)
Mar 08 Feb 08 Jan 08 Dec 07 Nov 07 Oct 07
GRWTH: 7.9% 5.0 7.1 2.8 12.8 8.7
$OWED: $957.2 950.9 947.0 941.4 939.6 921.8
Source: Federal Reserve; revised figures as of 5/7/08;
For complete historical data, visit CardData

Collection Attorneys are notorious for their threatening and questionable tactics when t comes to collecting a debt. Often times debtors who are sued experience what is called "Sewer Service" where a Collection Attorney or process server does not properly serve the debtor with a summons in order to obtain a default judgment and execute to collect. Some states do allow for summons to be affixed to the door of a residence, or for debtors to be served via U.S. Mail. I have argued until I was blue in the face that this is a violation of a debtors Constitutional right to a fair trial, but as I am not a lobbyist it falls on deaf ears. Collection Attorneys will defend their practices as "just", "fair" and within the law, but are they ethical, and are they really "within the law"?

I found some marketing information from a debt collection attorney that could shed some light on all of this. Here are a few snippets.

• We provide the muscle behind your push for payment.

• places a calculated amount of pressure on the debtor

• It is important to note that the Defendant is unaware you have asked the Court for judgment in this case.

• If, however, the Defendant files an answer, we usually respond with a motion for summary judgment. This motion is predicated on an affidavit from you that the account is due.

• In most cases the Defendant cannot defend themselves and the Court awards a judgment in your favor. Note: if the Defendant can defend themselves at this point by showing the Judge that there are particular areas of the invoices that have been paid, then this is not a routine collection case and we need to carefully examine the circumstances surrounding the invoices to be certain everything is "in order."
  

Everything is "in order"? Does this reference the earlier mention of poor record keeping? Could it be that Collection Attorneys are suing without proper evidence in order to obtain a judgment and keep the debtor from a fair trial?

I can't answer all of that. I'm not an attorney, but debtors should know the dirty practices of Collection Attorneys. It is not a crime to have a hardship that has set you back on keeping up with your financial obligations, it is not a crime to seek debt help through a consolidation loan, CCCS program, debt settlement, or bankruptcy, but the practices of some Collection Attorneys are a crime. The Fair Debt Collection Practices Act outlines consumer rights pertaining to debt collection. If you are in debt and are struggling to gt it resolved, know your rights and exercise them. Good people fall on hard times and do not deserve to be treated poorly by bad Collection Attorneys.

Q: What is the difference between a Debt Settlement Program and Debt Management Plan (DMP)?

A: Debt Management

In a debt consolidation programs, also known as a Debt Management Plan (DMP), you pay back 100% of your debt plus interest. Interest is commonly reduced to the 8% to 10% range. Additionally, Most Debt Management Companies have a monthly service fee tacked on to your monthly payment. Most people pay back about 130% of their debt over 5 to 6 year period. Debt Management has a moderate affect on a good credit file and will improve most poor credit files.

Debt Settlement

In a Debt Settlement program, most pay back an average of 40-50% of their total debt, including all agency fees as well as accruing fees and interest. This 40-50% figure is based on your starting balances.

In some cases, where a client has very challenging creditors combined with a good income, liquid assets, etc., Certified Debt Specialists may end up with what they consider to be a less than perfect result and pay back may be in the 60% range. This is still a substantial savings for most clients and proves to be an effective program.

Also, the contrary is true. Certified Debt Specialists often are able to obtain total settlements including fees in the 40% range when the factors are just right.

Most clients are able to liquidate their debt in 2 to 3 years vs. 5 to 6 years in the DMP and the monthly payment is commonly smaller than a Debt Management Payment for the same debt.

Debt Settlement has a major impact on good credit but will improve credit for people that are 6 months or more past due. This improvement in credit profile is caused by bringing outstanding balances down to a ZERO balance.

Q. Is Debt Settlement like Bankruptcy?

A: There is a major difference between Debt Settlement and Bankruptcy in many areas. Chapter 7 Bankruptcy remains on your credit report for a minimum of 10 years, whereas your charged-off accounts (the derogatory accounts) may remain on your credit file for only 7 years. Sometimes, these may be removed by a competent credit repair firm earlier. But be advised that most credit repair companies will just take your money and not deliver the promised results. There are very few qualified companies.

Never enter a Debt Settlement program, under the assumption that you will get the negative accounts removed in less than 7 years. To be safe, base your decision on the 7 year rule, then, if you are successful in removing negative accounts earlier, it will just be frosting on the cake.

Bankruptcy reporting on your credit file may also affect other areas of your life. Bankruptcy is a PUBLIC RECORD. Most counties report recent bankruptcies in the newspaper every month or every quarter. The is also a publication that most lenders subscribe to the provide them all the recent filings. Bankruptcies filings can be found at the county registry as it is considered public information.

So its important to understand that a bankruptcy is not easy to hide from and is considered public information.Most employers pull credit files on potential candidates. It is likely that the candidate without bankruptcy will have a better chance at the position. Additionally, some employers will not hire an individual with a bankruptcy on their credit file, period. Lastly, some positions will absolutely exclude a candidate with a bankruptcy. This is especially true for security jobs, high level management jobs, jobs at banks and financial institution and many other types of positions.

Bankruptcy can also cause issues with renting. Many landlords will not rent to individuals with a bankruptcy file. While, landlords cannot discriminate, they may legally not rent to someone based on their credit profile.

Bankruptcy can also exclude you from loans in the future. While its true that some creditors will grant credit after a person files bankruptcy, (although there is typically a waiting period) some creditors will not grant a loan to anyone with a bankruptcy on their credit file. Most loan applications ask if you have filed bankruptcy in the past 10 years, and some actually ask if you have ever filed for bankruptcy. Although the question – have you ever filed for bankruptcy may not be a lawful question, nonetheless, if you do not answer it, it will raise a red flag and if you answer “no” you will not be truthful.

No matter how you cut it, bankruptcy can affect many areas of your life and should be avoided at all cost. It should be your last resort. You should not file bankruptcy until all your options have been exhausted or at the very least explored. Unless you have come to the decision that you have no other viable options.

A: How Debt Settlement affects your credit depends on many factors. The primary factor has to do with how your credit rating is now.

If you have perfect credit, or even slow credit, Debt Settlement will derogatorily affect your credit. If however, you already have accounts that are over 4, 5 or 6 months past due, it may not affect your credit any worse than it already is.

When a revolving account becomes past due, typically over 180 days, the account is "written to profit and loss" by the creditor. This is lender lingo for what is also known as a "charged-off account" or "charge-off". This profit and loss status or charge off status is reported to the 3 credit bureaus.

It doesn't matter if the "charge off" occurred prior to enrolling into a settlement program or occurs after enrolling into the program, a charge off is a charge off no matter how you cut it.

The delinquent status and subsequent charge status will be reported on your credit file, in either case.

Creditors report monthly payment history using number - it is a little confusing because one credit bureau uses 1 as current and paid as agreed, while another uses 0 as paid as agree.

Depending on the bureau, the numbers used to report account payment history is commonly 1, 2, 3, 4, 5, and 9. A Charge off is reported on your credit file as a "9" on your credit file.

Over 60, 90, 120, 150 and 180days, charge-offs and written to profit and loss, are all considered derogatory credit remarks and will remain on your credit file for up to 7 years.

If all these next statements are true, then debt settlement may not be the right course for you:

1) Good credit is important to you

2) You have the means to pay off your debt in full by making required monthly minimum payments

3) You can afford the high interest charges associated with paying off unsecured debt.

While debt settlement will adversely affect your credit score, there are many factors that influence your overall credit. In addition to your credit fico score (a number between 350 and 900) another major factor in determining your credit worthiness is your debt to income ratio. If you are maxed out on your credit lines and your debt to income ratio is out of sight, you are most likely not bankable - therefore, in many cases, even having a great credit score is not as valuable as it may seem. Therefore, you must liquidate your debt in order to get your debt to income ratios in line. Either way, you may have credit problems. So the question might be, how do you want to resolve the problem?

Be on the lookout for updates on the new piece "David Says" from Total Debt Services. David is highly experienced in the debt settlement industry holding positions in every aspect of the business and working with trade organizations to continue the growth and integrity of the debt settlement industry.

David will be taking questions and answering them here to help inform consumers of their options pertaining to all forms of debt relief. If you have a questions, feel free to contact David and ask.

Look for the first installment of "David Says" to be published soon.