Business Credit Services

Business credit services are available to companies that need help with establishing credit policies through the Internet and through traditional transactions. This service can offer clients support with obtaining financial reports from the major reporting bureaus, debt collections, and management systems. When using a business credit service, the organization's owner can relax, knowing that he or she has a team of professionals managing the financial services. Many companies advertise and utilize the Internet for their customer's convenience. There are also software services that can be used in conjunction with these operations. The options are endless, and the help is readily available.

There are skilled teams of professionals that can help a company with business credit services. When a company offers financial extensions to their customers, there can be an extreme amount of labor involved. Bookkeeping and follow-up can take man hours and time away from sales and development. Often, owners do not have the expertise to effectively collect debt in a timely manner. This can cause problems with cash flow. This availability of this service can aid owners with expedient programs of accepting credit, managing accounts payable, and quick and easy access to account income. There are many options available with these services. Those organizations thinking of operating with extensions will want to research several companies before determining which program and system is the best option.

Wholesale companies may want to employ a business credit service to help with debt collections from other businesses. Offering credit to other businesses is the key to keeping inventory moving and offering competitive services. Accounts payable can be managed online with some of these services, allowing for expedient financial turn-around. There are software companies that interact with websites and allow wholesales to access accounts and reports quickly. There are also business credit services that can set up a payment plan where payments can be completed at the customer's conveniences.

When checking out business credit services, owners and managers will want to take time to seek guidance from experts and those experienced with the new e-commerce business credit service companies. Gathering information about a service first will help managers make better choices and decisions, and be better equipped with knowledge. The Bible teaches that we are to speak with others who can offer wise advice; this is how God uses people to aid and minister to one another. "Where no counsel is, the people fall: but in the multitude of counsellors there is safety." (Proverbs 11:14)

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Easy Credit Card Debt Reductions

Credit card debt reductions include different means of lowering one's owed balances to creditors, that mount up to thousands of dollars. Seeking to reduce these obligations is only for those who are in extreme situations because lenders and creditors will only consider lowering payments if the circumstances merit it. A debtor must consider several things when signing up for credit card debt reduction. If they don't consider these things, this strategy may put them into a deeper hole.

Before deciding if this option is best, one must understand exactly what these services do for their customers. Debtors go to credit card debt reductions companies with all of the information concerning their overdue balances and debts to creditors. They can either approach a company online, in person or over the phone, depending on the type of person the debtor is. The credit card debt reduction counselor will then look at the customer's information as well as their monthly income to determine how much can be paid back and in how much time. The counselor then contacts each creditor to negotiate repayment terms such as the term length, interest rate and fees. Often these counselors can get late fees and other charges removed. With this complete, the debtor can begin making steady smaller payments on each balance or the debts can be consolidated by the credit card debt reductions company.

One big problem people find after working to lower debts is that when their balance is in the process of being cleared up, they get further into debt than ever. Debtors can get their balances reduced and put onto a reasonable pay plan, but if the root of the problem, such as overspending, continues, credit card debt reduction will be useless. The first thing a debtor must do when looking to reduce overdue balances is examine their spending habits and alter them. The solution to just about any money problem is to spend less than one makes.

The other aspect to remember is to carefully examine the terms and services of the company. Debtors must remember that credit card debt reduction programs are often loan programs, so it is wise to read the fine print to determine whether consolidating is a good deal. Debtors can find nonprofit groups who offer credit card debt reductions, and many times they offer the best deals. It is a good idea to carefully and prayerfully look toward the future when repaying creditors. Financial freedom is not that far off. "The small and great are there; and the servant is free from his master" (Job 3:19).

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Credit Card Debt Counseling

Credit card debt counseling is available to people who are struggling with their finances and need help to straighten out their problems. These services can be found for a small fee or, with some companies, at no charge. Many of these are nonprofit organizations that receive grants to perform their services. The services specialize in assisting people who have messed up their financial future and don't know how to change their course.

Most of these companies require that the applicant make a commitment to credit card debt elimination, and they work with the client to build a manageable budget. They also work with the client's creditors in an effort to decrease interest rates, cut off late charges and fees, and consolidate loans into one monthly payment that the client can manage on his income. The companies do not loan money to the client; they do not eliminate the borrower's debt. Instead, they provide financial counsel from years of experience and from building networks with creditors. The responsibility of the client is to commit himself to sticking with the budget and consolidation terms until all the money is paid off. The company will help the client set up an account through which the transactions are funneled. They also educate the client in maintaining a good financial future and how to raise credit report scores as the money is paid off. These professionals will emphasize the importance of maintaining good finances and avoiding bankruptcy.

Because of the new bankruptcy laws that have been passed, bankruptcy is now much more difficult to obtain. One section of the law requires that before anyone can file for bankruptcy, he must be briefed by a credit card debt elimination agency first. Many of these services can be found online. The advantage of applying over the Internet is that the applicant can compare the programs of several credit card debt counseling firms so that he can find the best terms for his situation. Some sites are available twenty four hours a day, seven days a week. Getting the needed help from a counseling company can help a borrower avoid filing for bankruptcy.

Debt can be overwhelming to deal with, but there is affordable assistance out there. When a person is working towards credit card debt elimination and their payments have been made on time for at least 6 to 12 months, the client may be eligible for an FHA loan. If the person builds up a good repayment history for 18 months, he may then be eligible for other conventional loans. Getting credit card debt counseling can be the first step to debt free living. And living this way honors God. Psalm 111:10 explains, "The fear of the Lord is the beginning of wisdom: a good understanding have all they that do his commandments." Seek God's counsel first, then pursue credit card debt elimination.

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Top Credit Card Debt Settlements

A credit card debt settlement is the process of reducing steep balances and rising interest payments through an agreement with the creditor to adjust their percentage rates, achieving a lower monthly payment that pays less on interest and more on principal. Many firms specialize in helping debtors arrange credit card debt settlements. They might advertise themselves as firms to help with debt management or reduction, but all have one thing in common; they help reduce the amount the borrower owes.

Why would any creditor agree to getting less money? Sometimes, credit card debt settlements are the only way to retain any payment at all under current bankruptcy law. Getting such an agreement with their debtor could be the best they can hope for, so agreeing to these terms is the best choice, rather than receiving no payment at all. Personal finance history records are public knowledge. All creditors can easily see where they stand in the midst of a debtor's financial trouble. Plus, the more the borrower shares about their financial status (income and assets), the better the results they may receive in a credit card debt settlement. These contracts are a definite option in a time of financial hardship. "Lo, all these things worketh God, oftentimes with man, To bring back his soul from the pit, to be enlightened with the light of the living" (Job 33:29-30).

An overwhelmed debtor has a better chance for such an agreement with creditors when they don't have any assets; in other words, nothing to lose. Without equity in a house or car, then the relatively few possessions that remain demonstrate that the erasure of overwhelming balances owed through bankruptcy may be one of the last options remaining. Another key factor that may give more credit card debt settlement clout is by showing that the debtor cannot repay their loans by the sheer fact that, for several months, charge card bills and other financial obligations have been piling up. It may appear that the debt is hopelessly rising and, if so, the creditor will sincerely desire that the debtor be equipped to get a handle on personal finances so that the overall financial obligations can be met, including the most significant one, the funds they have loaned. Credit card debt settlements can help give the borrower some ease in payback requirements, like a short payment plan, a long-term plan, reductions between 30-50% if paid off in a lump sum, and reduction of penalty fees.

Attempting to negotiate terms on one's own is not advisable. These intricate agreements need to be professionally negotiated by someone who knows the creditors standards, types of fair, typical credit card debt settlements, the proper financial forms and formats, and the tricks of the trade, including fraud. All of these factors are not well understood by the average consumer who has been inundated with bills, pressure from bill collectors, and the embarrassment of financial failure. In addition, an agent specializing in credit card debt settlement will act on the debtor's behalf as a strong, prudent assistant who will spare them the roller coaster of emotions likely to be encountered if attempting to handle one's own negotiations alone.

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Credit Card Counseling Services

Credit card counseling services can be extremely helpful for anyone who struggles to pay off their credit card bills. Because credit cards are so accessible and so easy to use, people often over charge them. Before they know it, they are in desperate need of credit card counseling because they are up to their eyeballs in debt. Credit card counseling services offer a number of ways to get out of debt. Borrowers should look into all of their options to decide which route would be best for them.

Training on how to maintain a budget, debt consolidation, and debt management plans are all examples of credit card counseling services. All of these are viable options when it comes to improving debt. Maintaining a budget is the most important advice. Without a budget, debt consolidation becomes useless. The borrower will pay off what they owe then immediately repeat the debt cycle by overspending. A budget allows consumers the chance to track where their money goes each month and how much was spent on certain bills such as groceries and utilities.

Some counselors also offer loans to help those in debt pay off multiple bills. This helps simplify the payoff process by converting several bills into one monthly payment. Plus, these companies will attach one interest rate to the loan so borrowers no longer have to pay multiple interest rates of varying amounts. As part of debt consolidation, they will usually require that the borrower have a debt management plan and budget in place.

Friends and family may be able to recommend local credit card counseling services that were particularly helpful to them or someone they knew. The Internet is also a good source. However, be mindful that there are companies out there that charge hefty fees and are only looking to make money, not help consumers. Look for a non-profit or ministry-tied financial counselor to avoid high fees. These can be just as helpful in training someone on how to maintain a budget as credit card counseling.

Preparing to seek credit card counseling, it is important to know that no one has to take the road alone. Pray that God will provide guidance and provide people to help efforts to eliminate debts and your responsibility to a new budget. Make sure you have the support of a spouse and family. Look for support from church family and friends as you try to rebuild your credit. "Carry each other's burdens, and in this way you will fulfill the law of Christ." (Galatians 6:2)

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Credit Collection Agencies

Credit collection agencies are used for collecting any debt owed that has not been paid. A credit collection agency usually specializes in securing delinquent debts and is licensed and must adhere to certain regulations in their efforts. Many financial service companies work on a contingency fee basis. When monies are secured by the service from the borrower then they take a percentage for payment. Companies that specialize in securing payment for lenders must send the borrower a written notice within five days of initial contact. This notice should include amount owed, name of lender, and the action to take if the money is not owed.

Actions of credit collection agencies are covered under the Fair Debt Practices Act. They cannot use threats of violence or harm, obscene or profane language or repeated telephone calls when seeking monies. A credit collection agency can contact the debtor by mail, telephone, telegram or by fax. Calls are restricted before 8 a.m. in the morning and after 9 p.m. in the evening. They cannot call the debtor at their place of employment without approval. They can't contact friends and family in an effort to collect the debt. They are allowed to contact other people but only to find out how to contact the borrower, specifically for address and place of employment.

After making initial contact with the borrower a credit collection agency must send the consumer a written notice with the amount owed and to whom it is owed. Credit collection agencies usually start by just asking for the balance owed. After attempts at securing monies an agency may use legal means to try and secure the debt. Even though credit collection agencies are regulated, there are those who go overboard in their efforts. When suffering from harassment write a letter to the service company and ask them to stop. "Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law" (Romans 13:8).

Once a request is made for contact to stop a credit collection agency should stop pursuing the consumer. Complaints on agencies should be made to the Office of the State Attorney General. It is important to pay debts owed so that this type of situation doesn't have to happen. If however, one is pursued for a financial agreement through a service company try to set up a payment plan and be faithful to pay it as agreed.

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Credit Bureau Score

A credit bureau score may affect a persons whole life, depending on their goals and lifestyle. Working to have the best credit bureau score is a great goal to have, even if a loan is not needed, because these numbers represent credibility for other areas of personal reference as well. It can even affect where and if a person will get a job and the types of opportunities offered throughout life. Knowing what the reporting agency is saying in the report is as important as the score itself.

Boosting personal numbers is easier for some people than it is for others. There are simple ways to boost a score if a person simply does not have a lot of credit. A person could apply for one, and only one, charge card and use it every month. The main thing is to pay it off every month. That way the borrower are increasing the credit bureau scores, but not paying high rates of interest to a card. If a person has a bad score due to delinquencies, the need to find a plan to pay these off or get involved with a debt settlement program.

Developing a plan to pay off debt may be the most difficult task of increasing the numbers, and it may be important to seek counseling. Counselors can provide services that will help a person develop a financial plan for getting out of debt without settling with creditors. This is very important because if a person settles with creditors they are essentially lowering their credit bureau score and giving up on making payments. Sure, the score will be boosted a little for paying something on the debt, but not as much as if a plan is developed with creditors to pay off the whole debt. Bad numbers can affect everything a person wants to do in life. Likewise, good credit bureau scores will affect everything wanted in life. It is very important to take care of debt and maintain good standing.

Whatever the needs a person will want to understand that God is there through the tough times. He wants to see us succeed in our financial endeavors and gives us clear instruction in the Bible. If a person is unfamiliar with Gods financial principles they can ask at church for assistance or simply ask a trusted friend or family member. The important thing is that they take care of any problems that may arise from the credit bureau report and to review all the credit bureau scores.

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Bureau Report

Credit Bureau reports affect millions of Americans as they report on the person's ability to accurately take care of their debt by making payments on time. The American economic system today is largely dependent upon credit, meaning that the economy thrives when people are using money they do not have to purchase necessities. The credit bureaus help creditors determine if a person is approved for financing by issuing reports on their payment history. As long as people continue to have good ratings and continue buying with credit, parts of our American economy stay afloat. To stay afloat personally, it is God to whom we need to turn. "And even to your old age I am He; and to hoar hairs will I carry you: I have made and I will bear; even I will carry and deliver you." (Isaiah 46:4)

These are agencies that use these reports to give a lender a picture of a person's ability and determination to pay off debt. Credit bureaus gather information on individuals by soliciting the creditors. These creditors are banking systems, and other lending facilities that might have any information history on people. They obtain this information then, keep track of payments and payment history and then offer their members this information so that financial decisions can be made about new potential customers or for the purpose of reviewing existing customer accounts. When creditors want to look at a customer's payment history, they look into Credit Bureau Reports.

Most Americans use financing to make large purchases, generally cars, land and homes. The ability to buy a car or home will be determined by the information within the credit bureau reports. Also, the amount of interest charged for borrowing money can depend upon the information obtained on them. It is important to a person's financial future to maintain a good rating and making sure that their reports are such that they are allowed to purchase necessities and have financing available during times of emergency.

As a consumer, there are times that copies of payment histories can be obtained. Under The Fair Credit Reporting Act (FCRA), consumers have a right to free reports about their history in certain circumstances. The most common circumstances for obtaining these from credit bureaus is in a situation where a person has been denied financing, in the last sixty days, based on information in their reports. In this situation a report can be obtained free of charge. Additionally, under the new law, a person may obtain these reports once a year when requested.

It may be advantageous to get a copy of payment history before applying for any financing to be aware of what lenders and financing companies will be basing their decisions on. The Internet can be a good source to find more information to contact these reporting agencies and obtain copies. There are articles and websites on the Internet that give information about acquiring credit bureau reports, or purchasing them.

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Debt Collection Services

Creditors often use debt collection services for a twofold purpose. The first purpose is to obtain payment on overdue bills and the second purpose is to move a debt from an organization's accounts receivable database. It is unfortunate that many individuals incur debts that they are unable to pay back. In these situations the creditor is put in the position of taking action to recover the money that is owed to them. Turning to debt collection services is often the only way to gain back at least some of the funds that are owed. When all is said and done, there may be a significant difference between the amount of monies received in the recovery of debts and the actual amount of cash that was originally owed. The difference between these two amounts is typically labeled as a loss and written off by the creditor. Just how much pressure can be applied to individual debtors can vary according to circumstances, but these practices are controlled by law.

The way that debt collection services work is that the service will retrieve payment from debtors and charge a fee for collecting these debts. That way a creditor can turn what can be a sticky situation over to professionals in this field. Hopefully, this will result in a win/win situation for both the service and the creditor. These debt collection services might also function by purchasing a debt outright. Since these debts are being purchased for far less than their face value, the service can pursue the full value of the money owed while the one time creditor can simply write off any losses. A company may have an individual department that handles delinquent accounts. When this is the case, the department that is engaging in efforts to recover a financial obligation is considered a first party agency. The laws that govern how collections take place will vary depending on whether the agency that is trying to collect the money owed is a first or a third party agency. The person who owes the debt is considered the second party in these situations.

Before independent debt collection services are engaged, a first party agency will usually handle collection proceedings. This can generally last for around six months or so. After that, the liability is often handed over to a third party agency and written off by the first party in most cases. These third parties are what is usually referred to when the phrase debt collection services is used. Contingency fees are sometimes associated with the hiring of these agencies. When an agency collects on a balance that is due, a percentage of that balance will go back to the third party agency. Should a first party creditor decide to curtail any further collections on an obligation, that first party creditor will often pay the contingency fee as part of a cancellation agreement. Other agreements could include a no collection-no fee arrangement. This simply means that a third party agency will not be paid if they do not recover any delinquent balances. The Bible talks about the importance of trusting the Lord. "Rest in the LORD, and wait patiently for him: fret not thyself because of him who prospereth in his way, because of the man who bringeth wicked devices to pass." (Psalm 37:7)

A law was passed in 1977 called the Fair Debt Collection Practices Act. This law controls the practices that are associated with debt collection services. One area of activity that is controlled under this law are the hours of the day or night that collections agencies may contact a debtor. Under this law, a third party collections agency can't make any kind of false or misleading statements when attempting to recover financial liabilities. Administered by the Federal Trade Commission, this act also states that an agency can not use unlawful threats to coerce a debtor and also can't suggest possible courses of action that the agency has no intention of following through on. The practice of placing phone calls for the purpose of tracking when an individual is likely to be at home and receiving calls is legal under this legislation. However, third party agencies are not allowed to place calls in a way that will cost the debtor money such as collect or toll calls. The main role of the collections professional is to remind the debtor of the money that is owed and to encourage the debtor to make attempts at repayment.

The reasons that an individual debtor may find themselves dealing with debt collection services can vary. Poor planning, or over estimating how much indebtedness a consumer can handle are common reasons. Job loss, health issues, or loss of a primary breadwinner can also cause an individual to struggle with bill payment. Organizations such as Americans for Fairness in Lending can help consumers who face these dilemmas. These non profit organizations can help debtors understand exactly what legal rights pertain their situation as well as how to best handle any dealings with third party agencies who may be contacting them. Since some collections professionals work on a commission basis, these workers can be extremely persistent in their efforts, and at times even attempting to bend the law, or violate a debtor's rights. The most effective collections practices will generally involve skill and a certain amount of courtesy on the part of the collections agency. By trying to work toward a workable solution rather than berating or threatening a debtor, arriving at a satisfactory conclusion is much more likely.

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Credit Bureau

A credit bureau (also called a credit reporting company) receives, maintains, and provides information about each consumer's financial history and creditworthiness. There are three companies that dominate the financial reporting landscape: Equifax, Experian, and TransUnion. They have always operated completely separately until 2005 when all three bureaus announced a cooperative effort to coordinate their data encryption---a credit bureau agency commitment to safeguard consumer data and clarify reporting. Each one also participates on a new encryption task force to keep up with new technological methods. If a person has ever been the victim of identity theft, they can get a free financial report immediately. Each is working diligently to protect and prevent fraudulent use of the data.

Each office rates the creditworthiness of every consumer with a financial report. It begins with the first application for a charge account, a personal loan, insurance, or employment and continues for the rest of life. A record contains information about debts, payments, and any judgments against that person. The top three names to know are: Equifax Inc. which is headquartered in Atlanta but is a global network with employees in 12 countries in North America, Latin America and Europe; Experian, the largest credit bureau agency supporting clients in about 60 countries, and a subsidiary of GUS, a giant retail corporation; and TransUnion, based in Chicago, the smallest of the three. All make money every time a request comes in for data to be processed from its computers and used to verify personal, financial or property identity. All lending institutions use a credit bureau agency to verify creditworthiness. Deuteronomy 15:7 says "If there be among you a poor man of one of thy brethren within any of thy gates in thy land which the Lord thy God giveth thee, thou shalt not harden thine heart, nor shut thine hand from thy poor brother:"

Each department has provided a complex mathematical score that evaluates all the information in a file and discloses how likely a person is to default on any loan payment in the next few years. A high score from a credit bureau is good. Every 12 months, everyone is entitled to receive one free file disclosure from each credit bureau agency. A person can get them all at once to compare or spread out the reports to continually check for changes in rating and see a record of everyone who has gotten the consumer report, the contents of the revealed report, the information providers, and the information that the credit bureau has suppressed like insurance reviews and medical account information. Anyone can purchase their actual FICO score from each agency at any time. If a financial rating is based on faulty information, anyone can report a problem and even add a short explanation to the credit bureau if the problem is not resolved to personal satisfaction.

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Budget and Credit Counseling

Budget and credit counseling helps people in debt develop a budget as well as proper spending habits, including payment plans, to overcome debt plus reestablish a good financial report and score. These services are offered through certain venues both for free or for a small charge. It is also possible for an individual to obtain books which can assist them in budgeting and paying off debt on their own, but this would require a lot of will power and commitment. Actually meeting with a counselor to learn budgeting as well as how to improve credit might be a better option for a person who requires another individual to motivate them and hold them accountable.

A budgeting counselor can help any person in any walk of life who feels like it is time to develop wise spending habits and pay off debts. Budget and credit counseling can be the answer in a marriage that is on the rocks due to financial disputes. A college graduate who borrowed more than they should have can really benefit from meeting with a counselor as well. Retired individuals need financial guidance and advice so they can stretch each dollar in order to live comfortably for the rest of their lives. Even kids can benefit from budgeting tools as well as lessons about credit, creating a foundation for future financial responsibility.

Often times there are financial counselors available at no charge by places in the community. Consumers should check into the local church to see if they have any financial gurus who would be willing to mentor in budget and credit counseling. Chances are the person who offer assistance has struggled financially in the past, but now they are using their experiences to comfort others. They are fulfilling Second Corinthians 1:4 which says, "Who comforteth us in all our tribulation, that we may be able to comfort them which are in any trouble, by the comfort wherewith we ourselves are comforted of God." This is a great way to honor God. After a consumer overcomes financial trouble, they should take the time to help out someone who is struggling in the same manner.

Getting help with money is not a shameful thing. Those who are struggling should know that it is okay. Everyone has some type of struggle going on in his or her lives. Someone might be struggling with alcohol or drugs, maybe another with pornography or overeating. Whatever the case, God can get them through the toughest situations. So if one's downfall is finances, he or she should look into budget and credit counseling today.

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Bill Collection Agency

A bill collection agency is a third-party entity hired by creditors to collect payment on delinquent accounts. However, the job of collecting past due monies involves dealing with consumers on a professional and emotional level which is regulated by state and federal laws. As economic woes increase in the United States and abroad, consumers of every socio-economic level are experiencing monetary problems such as foreclosures, business failures, and bankrutpcy. Added to this volatile mix is a sluggish housing market and high-interest lending. The result is a cash-strapped public with reduced spending power and an increasing amount of unpaid credit card debt. Debtors faced with a myriad of financial problems either don't have the cash to pay past due accounts, or lack the ability to make a sufficient income to manage household finances. However, in spite of a lagging economy, creditors deserve payment for goods and services rendered. The welfare of the U.S. economic system depends largely on the ability of corporations, manufacturers, retailers, and healthcare professionals to stay in business; and they can only remain viable if they get paid.

A bill collection agency works diligently on behalf of creditors to secure payment from delinquent debtors for a certain percentage of recovered funds. Percentages can range from as little as 15% to as much as 50%; and some charge a one-time administrative fee for each account. As a neutral party, the debt recovery firm can exert influence and apply a measure of pressure on delinquent debtors, which could place creditors in an unfavorable light. Physicians, business owners, and retailers who spend years building up a loyal customer base simply don't want to have to use tactics to collect monies owed to them which might be perceived by long standing customers as strong-arming. That's why physicians known for a cheerful bedside manner will seldom be found calling patients about past due bills. "A good name is rather to be chosen than great riches, and loving favour than silver and gold" (Proverbs 22:1). But when the physician's office administrator consistently issues gentle reminders and collection letters, with little response from delinquent payers, then it is time to call in the "big boys."

Calling in the "big boys" must still be done with decorum and within the limits of the Fair Debt Collection Practices Act (FDCPA), issued by the federal government in 1977. Most debtors are unaware that the FDCPA prohibits a bill collection agency from making threats of imprisonment or doing bodily harm for unpaid debts; calling before dawn or well after midnight; or making harassing phone calls to debtors on the job, especially after the debtor has given instructions not to be contacted at a place of employment. Other prohibited practices include contacting family members, coworkers, or employers and sharing confidential information, which places the debtor's job or reputation in jeopardy. A debt recovery firm may call debtors directly or solicit relatives, family members and employers for information, such as a new address or phone number after debtors relocate. However agencies are strictly prohibited from discussing the reason for the call or details about the debtor's account. A bill collection agency can send registered letters via the postal service which require a signature to acknowledge the debtor's receipt of a creditor's intent to prosecute or take action.

After efforts fail to elicit a favorable debtor response, a persistent bill collection agency can undertake more severe recovery efforts, such as wage garnishment, lawsuits, and judgments in states where they are allowed. By law, wage garnishments cannot exceed one-third of the employee's income; and workers making less than $20,000 are exempt. When third-party agencies have the court issue an order to garnishee the debtor's wages via mandatory payroll deductions, the court notifies the employer to initiate the process. Employers are responsible for deducting monies from each paycheck and forwarding funds to the court. The court then becomes an agent for the bill collection agency and forwards the debtor's funds to agency's attorney. Wage garnishments are a surefire way to settle with creditors, but the process can cause some debtors to lose out with employers. Companies realize that employees have personal problems, but the time and money expended by employers to manage employee garnishments may adversely affect a worker's chances for merit raises and promotions.

Debtors who have been contacted by a bill collection agency should deal with indebtedness head on. The problem won't go away on its own and the more debtors ignore phone calls and letters, the more late fees and administrative costs will add up. The moment harried debtors realize that they are unable to honor financial obligations, they should respond to debt recovery letters with a phone call or email. Most agencies will be happy to make payment arrangements to accommodate debtors who have lost employment or income due to chronic illness or layoffs. Although under financial distress, honesty is the best policy when dealing with recovery agents; and debtors should refrain from making promises that are impossible to keep. Each time debtors fail to honor payment arrangements, the bill collection agency will make a note of broken promises in customer records and add more late fees. It is better not to verbally commit to making a payment, unless debtors intend to fully comply with agreements previously reached with recovery agencies. But the best hedge against collection of delinquent accounts is to develop a practical budget and stop overspending. In a lagging economy, consumers will have to forego luxury items simply to afford high-priced gas and food. But, as debtors take a more responsible attitude towards consumer spending, the collection call will become a thing of the past.

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Bankruptcy Credit Counseling

Bankruptcy credit counseling is a requirement for anyone who is thinking about filing bankruptcy. The U.S. Congress passed the Bankruptcy Abuse Prevention Act in 2005 to help individuals to avoid financial crisis by learning how to budget and set financial goals. Bankruptcy credit counseling may provide the help a person needs to avoid filing. Once a bankruptcy has been discharged it appears on financial history for seven to ten years depending upon the Chapter that has been filed. Counseling helps the consumer to acquire the knowledge necessary to understand why being accountable with finances is so important. Once a person has damaged financial history because of paying late, having property repossessed, and filing bankruptcy it takes a great deal of time and patience to turn the situation around.

Individuals or businesses that do not have a lot of property but do have a great deal of high interest debt often choose to file Chapter 7. Businesses that choose to restructure instead of close down might want to consider filing Chapter 11. Individuals can choose to file Chapter 13 if they own property or want to try to repay their debts. A bankruptcy credit counseling organization can give individuals or business owners advice about their debts, how to make a budget, and what will happen to their credit once the bankruptcy has been completed but for questions on how to file the debtor should seek advice from an attorney.

Agencies that are certified to give debtors professional guidance with finances normally charge a fee to the customer for a pre-filing bankruptcy certificate. The debtor must have this certificate before the legal issues can be taken care of. Bankruptcy credit counseling agencies may waive the fee for special circumstances such as those who have only disability income or are having to use a legal aid office. Professional guidance with finances might make it possible for some debtors to avoid seeking legal discharge of debts. Some agencies work on debt management so they are qualified to help debtors to settle debts and avoid foreclosure, repossessions, and bankruptcy. "Happy is the man that findeth wisdom, and the man that getteth understanding. For the merchandise of it is better than the merchandise of silver, and the gain thereof than fine gold" (Proverbs 3:13-14).

Non-profit organizations that are set up to help consumers with budgeting and debt management will be relatively inexpensive. Some do not charge anything for the consumer who needs guidance on how to live on a budget. However, if the debtor opts to use services that help to repay and settle debts then there is usually a fee that applies. Bankruptcy credit counseling can be very beneficial to the debtor if he or she finds reconciliation of finances is possible without having to seek legal discharge of debts. Creditors who work with organizations on debt repayment may be very glad to receive a proposal on how the consumer is going to repay debts. Not being cooperative could be detrimental to creditors because the debtor who legally files to discharge debts may not end up having to pay creditors anything.

Courses online for bankruptcy credit counseling are generally done within a day or less. The topics that are covered include creating a budget and managing it, how to read a credit report and how to reestablish financial history. Debtors that are having trouble paying their bills each month may have more debts than income. This generally happens because there is no budget or no financial goals. A course that provides professional guidance can help the debtor to learn the importance of having realistic financial goals and why living on a budget is necessary. Online organizations that provide counseling provide a certificate showing that the debtor completed the course. The certificate can be received by email the client can print it out or if the client chooses the certificate can be mailed. Certificates are generally good for at least 180 days.

In choosing professional guidance a debtor should do some research and check the Better Business Bureau to make sure that the agency offering bankruptcy credit counseling is a legitimate company. A person can also check with the state Attorney General's office for a list of any companies that have been suspected of fraud and unfair business practices. Some things to watch out for are companies that charge large fees for their services and require that the debtor makes payments to them instead of their creditors. Some make promises that they can not keep. The promises of being able to settle or negotiate with creditors for half of what is owed should be questioned. Occasionally a creditor may negotiate for less but to expect to settle for half or less of what is owed is not generally accepted with many creditors.

Some companies that offer professional guidance on bankruptcy credit counseling claim that they can remove all negative information from a person's credit report. While credit repair is possible, the negative information that is legitimate should not be removed. However, errors that have a negative impact on financial history should be disputed and corrected. A counseling agency can help individuals to work on repairing or correcting their own financial report but can not do the disputing for them. The best way to reestablish financial information is by paying bills on time, paying off excessive debts, not applying for new credit accounts, and keeping debts to less than 25% of income.

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Bad Credit Problem

A bad credit problem may have an effect on future borrowing, insurance premiums, and even acquiring employment. Debt counseling is available on the Internet for the consumer with bad credit problems. Look for a debt counseling agency who is accredited by the National Foundation for Consumer Credit (NFCC) when seeking answers. Find out the fees charged by a credit-counseling agency before enlisting their services. Some agencies offer a debt repayment plan which may only include unsecured debt such as card debt and other high interest loans. Financial issues may have some resolution through a debt counseling agency but make sure the agency is reputable. Find out how their program is tailored for a bad credit problem and if they will be able to eliminate or lower interest rates with current creditors.

Financial trouble won't go away with the enlistment of a debt-counseling agency. A plan will need to be set in motion to try and repair a bad credit problem. The consumer has options online through various companies to get help with financial repair or choose to tackle this themselves. Some institutions online offer help with financial repair for bad credit problems. Do some research and check out various types of organizations. Many will charge fees for these services. If the consumer uses a company who specializes in debt consolidation loans they may have staff that can offer needed assistance. Learning to live on a budget and not use high interest cards for purchases are a good place to start. With any plan of action reform is needed along with that plan. Understand the reason for the bad credit problems and don't make the same choices the next time around.

Some useful tips regarding a financial issue might include avoid impulsive spending, stop using high interest cards for purchases, make up a budget and stick to it, don't make high-risk investments, don't co-sign for someone who has questionable financial habits, and don't buy on cards when it is unnecessary. Consumers with for bad credit problems can find assistance with their financial issues online and locally. The local phone book is a good place to start searching. Being a good steward with money is essential when trying to overcome a bad credit problem. There is a lot to be said for learning to live within one's means. "Thou oughtest therefore to have put my money to the exchangers, and then at my coming I should have received mine own with usury." (Matthew 25:27)

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Commercial Credit Counseling Services

Commercial credit counseling is for those who are running a business and need to know what kind of steps to take with their finances. There are many commercial credit counseling services to help business owners move forward in improving their finances. Small business owners can greatly benefit from this kind of help because counselors will give a personal approach to financial development. However, for those who run a large business, these counselors will help to give clear vision of the company's financial position as well as help gage what the next step should be.

There are many counselors who will help business people see where they need to make investments with their business and will give them advice on finances as well as what to do with them. Commercial credit counseling services involve speaking one on one to a counselor, making a financial plan, finding out places for credit, etc. Commercial credit counseling is something that everyone who is in business should do at some point. Therefore, there are a variety of these services available.

Credit counseling for businesses is available both locally as well as on the Internet. Local commercial credit counseling services usually are offered through a finance company. This is the preferred method for people who want face-to-face contact during counseling. However, there also is a service available over the Internet, but it is a little harder since the contact is not necessarily in person. Commercial credit counseling needs to be with someone who understands a particular business as well as doing their own job very well. The best counselors will be someone who has a lot of knowledge about finances and investments. Because there are many options available for business owners, it is important to do the research to find the best one for a company's particular needs.

Commercial credit counseling services will be available throughout the day. After picking a company, people can proceed with figuring out what works best for their schedule. Finally, business owners will want to make sure that they are consulting the Lord about what kind of counsel needed for the company, knowing he will give knowledge in this area. For the Lord is the one that can be trusted to give wisdom when you have no where else to turn. "Trust in the Lord with all thine heart; and lean not unto thine own understanding. In all they ways acknowledge him, and he shall direct thy paths." (Proverbs 3:5-6)

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Consolidate Credit Card Debts Online

Consolidate credit card debt to help break free of the burdensome cycle that seems to accumulate faster than most people will ever be able to pay back. When repeatedly falling behind in monthly payments, it's time to examine solutions to the problem. Owing money a person can't afford is one of the easiest traps to fall into. Card companies are ever so willing to make spending easier and pile up charges, only to penalize with late fees and exorbitant interest charges. Reigning spending habits are important, develop a reasonable budget, and consolidate.

This course of action means taking all the current money owed and rolling them into a large loan at a lesser interest rate than the cards are likely charging. Use the loan to pay off creditors and then pay one monthly fee to the bank that provided the loan to consolidate credit card debts. The result is hundreds if not thousands of dollars in interest savings. There are a variety of types of personal loans available, but a home loan is the most popular and most effective. Home equity loans to consolidate credit card debts typically feature very low interest rates since a home is used as security for the loan. In addition to the interest savings earned by financing at a lower rate, the interest on a home equity loan is also tax deductible. Plus, home equity loans can be spread out by as long as 30 or 40 years. While longer loans result in increased total interest costs over the life of the loan, they do result in a much smaller monthly payment, which might provide a better solution if the current income is limited.

Even not owning a home, there are a variety of personal loan programs for those who want to consolidate credit card debt. Generally, secured loans, or those for which a valuable piece of property was used as collateral for the loan will carry lower rates than unsecured loans. However, the vast majority of loans will charge much less in interest than what is currently paid on the credit cards. Getting out of a bad financial situation can seem an impossible task, especially alone. Take advantage of free advice. Home equity loans and other loans to consolidate credit card debts can help release anyone from the suffocating burden accumulated. It is important to find a most trustworthy person to help you. God warns of this in Proverbs 12:5 saying "The thoughts of the righteous are right: but the counsels of the wicked are deceit."

Programs for those who want to consolidate credit card debt. Generally, secured loans, or those for which a valuable piece of property was used as collateral for the loan will carry lower rates than unsecured loans. However, the vast majority of loans will charge much less in interest than what is currently paid on the credit cards. Loans are not for everyone. Hired financial advisors can provide much needed guidance. Some states and community agencies offer free advice on ways to get out of debt. These advisors can recommend courses of action and can point out sources of a lower-interest loan. If there are lots of different debts or high interest rates, it is probably best to consolidate credit card debt into a lower-rate, single payment. A single payment is much easier to budget for and pay on time.

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Credit Consolidation Counseling

Credit counseling could be an excellent step for people who are deep in debt and on the verge of filing for bankruptcy. Obtaining accounts and other forms of unsecured debt is so easy and, unfortunately, too many people do not know how to handle such responsibility wisely. As a result, people without sound financial management skills end up drowning in debt. This affects their lives in profoundly negative ways. Seeking help from an advisor or through credit consolidation can help ease the anxiety and the frustration.

Financial advisors can act as a mediator or sorts between the consumer and creditors. As they work on the individuals credit consolidation efforts, they can negotiate lower interest rates and, in some cases, even lower the overall balance due. The credit counseling service will help a person establish a savings account that will allow the individual to deposit money on a weekly basis. The counseling service then uses those funds to pay off debts. Depending on the overall balance of what is owed and the amount the consumer is able to contribute toward paying off that balance, the length of the payment plan may be several years. It is important to keep in mind that debt consolidation is not a quick fix.

During the repayment process, the consumer should not use cards or apply for any additional funding. This part of the credit counseling may be the most difficult part. However, it may also be the most important. For many people, poor money management and impulsive buying are the key behaviors that brought them to need consolidation in the first place. Recognizing and modifying those bad habits is what will create long-lasting change.

Although the benefits of pursuing assistance are many, the consumer should know that there are potentially negative consequences too. For example, although the credit counseling service will probably not report prior delinquencies to the credit bureaus, the creditors that are negotiated with can report that the individual is not paying according to the originally agreed upon terms. This will adversely affect a persons financial rating or score. However, if debts are so high and unmanageable that the individual is seeking credit consolidation and counseling services, their credit score is probably already low. Working with a counseling service is still a better option than filing for bankruptcy.

Above all, it is important to remember that God expects the actions of His children to honor Him. This includes how people spend the money he has entrusted to them. It is important to repent, if necessary, and commit finances to His will. A person can prayerfully consider all of options, including credit consolidation and counseling, and proceed with faith. "But thou shalt remember the LORD thy God: for it is he that giveth thee power to get wealth, that he may establish his covenant which he sware unto thy fathers, as it is this day," (Deuteronomy 8:18)

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Consumer Credit Counseling Agencies

Consumer credit counseling agency may be just what one needs to lift that dark cloud of debt over the future and bring relief to worries over financial problems. Is it realistic to dream of financial freedom? Debts seem to be piling up more everyday with no end in sight. Phone calls from creditors are happening more frequently and there isn't enough money to pay everything. More borrowers are finding themselves suffering from financial disaster every day. Consumer credit counseling agencies have the expertise to take the borrower out of the debt dilemma in the least painful way. They can also provide valuable insight into credit repair and raising scores.

By law, when a consumer credit counseling agency makes contacts with lenders, they are no longer allowed to contact the debtor. Instead, finance companies must correspond with the consumer credit counseling agency that is serving the consumer. This will provide some relief right away. Consumer credit counseling agencies will also negotiate with lenders to try to negotiate debt. Debt management companies work with the same finance companies frequently and can often negotiate a lower payoff amount with reduced interest. Finance management companies will work out a payment plan that is affordable based upon individual needs. Instead of making several monthly payments the borrower makes one monthly payment to the consumer credit counseling agency.

There are many companies online that are nonprofit including Christian debt solution services that offer assistance with financial problems. A Christian company will usually provide counseling using God's word, helping the debtor to see a biblical perspective to financial concerns. "And every one that was in distress, and every one that was in debt, and every one that was discontented, gathered themselves unto him; and he became a captain over them: and there were with him about four hundred men" (1 Samuel 22:2). Taking one's burdens to the Lord and allowing him to be the captain over them will bring peace in the midst of the storm.

Money management techniques through consumer credit counseling agencies help borrowers to set up manageable budgets for future financial endeavors. Consumer credit counseling agencies serve as advisers to those who are having difficulty balancing their checkbooks and reining in their spending. Sometimes all it takes is making one change to bring a positive focus to a negative situation. Working with a professional agency can change one's perspective and bring light to a dark situation.

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Consumer Credit Bureau

Consumer credit bureaus hold all of the financial histories of people who use credit or lending to obtain products or services, developing scores for each person to reflect their financial dependability. These institutions can be found on the World Wide Web by simply searching on a search engine. A consumer credit bureau can assist a person in obtaining a copy of their report which is something all borrowers should have. The institution keeps track of and monitors one's borrowing and debts, can identifies identity theft, and can correct any mistakes that may have been made on a report that might harm one's history or ability to receive lending in the future. Forty eight percent of all spenders have some sort of error in their files. It is essential that individuals become aware of their financial history and online consumer credit bureaus make this an easier task.

These institutions keep track of a variety of information in their databases which includes but is not limited to information from lenders, creditors, student loan companies, retail stores, and finance companies. Lending related public records including bankruptcy judgments and tax liens are included as well. Consumer credit bureaus may also have information on any collection agency debts the individual may have. Most consumer credit bureau reports will include the FICO score as well. This score is used to assess one's level of lending risk which helps with predicting whether or not the borrower will pay back the loan in a timely fashion. The higher the score, the higher the borrower's level of dependability.

Experian, Equifax, and TransUnion are three of these institutions. Basically these agencies compete against each other and don't always contain the same information making a credit report dependant on which of the consumer credit bureaus are used to obtain it. Lenders report financial information to which ever of the three agencies they choose to work with. They do not have to report to all three. Information on reports might also be different depending on when the data that is sent to the agencies and when it is recorded. Therefore it is important to get all three consumer credit bureau reports in order to get a clear and accurate picture of one's ratings. An honest look at oneself can be eye-opening, but today is a new day for change. "Lead me, O LORD, in thy righteousness because of mine enemies; make thy way straight before my face" (Psalm 5:8).

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Consumer Credit Card Counseling

Consumer credit card counseling is available through debt management services when debt has spiraled beyond a cardholder's ability to repay. The easy-to-use consumer credit card has caused a nationwide indebtedness of over $360 billion dollars. "Be not thou one of them that strike hands, or of them that are sureties for debts" (Proverbs 22:26). Although people are called by God not to accept interest, this is just how creditors make their money. Because families use the consumer credit card like a mini-loan for bills that are difficult to pay, creditors make millions. Fortunately, counselors can help an adult resist the habit of paying tomorrow what should be paid today. Credit card counseling also exposes the dangers of high interest rates and reveals how debt ultimately becomes a greater burden than a convenience. This kind of counseling is especially important in a society that relies more and more on the convenience of being "cashless".

Most counselors will quickly counsel clients with some hard, fast rules about credit. Yes, they'll say, consumer credit cards give up-to-date financial statements, one convenient payment for many varied purchases, and a handy way to manage cash when traveling. However, for those seeking advice, odds are that they are in a black hole of debt. Some people may have believed advertising that there is an "acceptable" level of debt. For instance, in a recent study, college students carried an average consumer credit card balance of nearly $3000; two years previous the average was closer to $2000. Truthfully, by adding up the cost of an item, plus the interest on every single dollar, it may be that the actual expense of "buying now, paying later" is far more money than the shopper really wanted to pay. Most shoppers need to seriously rethink their spending habits.

Consumer credit card counseling will advise cardholders to do everything possible to pay off the balance monthly, at least to make more than minimum payments. At the very least, cardholders should pay the interest each month and stop charging the card until funds can be freed up to pay on the actual balance. Otherwise, the interest payment will accrue faster than the debt reduction. Credit cards with a high interest rate should be traded for those with low introductory rates as long as cardholders can pay off the loan during that time. Counselors may also recommend taking out a home-equity loan with a tax-deductible interest rate to break away from the repeating cycle. When seeking advice, be prepared for some significant changes. You won't be alone; numbers indicate that more than 3 million Americans contact financial counselors each year. Consumer credit card counseling demands more responsibility in spending, but the freedom of being debt-free is worth the hard work.

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