Answer : Choices Are The Cornerston Help ?

I don't have to tell you that time is money. Compound interest is proof of that. When you're serious about getting out of debt, some gurus would have you get 'gazelle-like' and use a snowball or avalanche to get out of debt. While you live on beans and rice like no one else, it's ironically like the all the third world countries, interest is being added to your debts. The experts won't put a time limit, but you should. Here's why.

Life moves by quickly. That's time. Financial goals need to be met like buying a car or a house, or saving for retirement. The time you take to get out of debt slows down your ability to meet other goals. The more money you spend getting out of debt slows down this process even further. What do you do when you're stressed out and backed into a corner? You do everything you can to avoid the devastation of facing a possible bankruptcy because that would the be the worst thing ever, right? Read on.

Choices are the cornerstone of freedom we have in our country. That's great news that you actually have choices when it comes to getting out of debt. First, we'll explore each option. Then, we'll look at the numbers using an example of what it would cost under each method. From there you can make a better choice of the option that is right for you.

A debt avalanche (also known as "debt stacking") targets debts with the highest interest rates first. A debt snowball plan, in contrast, prioritizes your smallest debt first no matter the interest rate. Each time the smallest one is eliminated you move to the next smallest.

Alternately, consolidation is a new loan that rolls all the debt into the new loan. The average annual percentage rate (APR) on a consolidation loan is around 18.56%. To put that into perspective, the average range of interest rates charged on consolidation loans typically falls between 8.31% and 28.81%. Negotiating and settling debts for less than what is owed requires that you pay some of the debt and then pay taxes on the cancelled debt. The main problem with debt relief companies is the fact that they cannot stop lawsuits and it wreaks havoc on your credit report due to late and missed payments.

You can follow the gurus and use a snowball or avalanche method and repay your debts as you lose weight on beans and rice. Other options include consolidation and negotiated settlements, paying less that what you owe. Paying less than you owe does come with a tax bill for the cancelled. Each method has its pros and cons and affects credit availability. All the while interest continues to accrue, your credit score drops as you fall further behind and you may even get sued. What if you could find a way to repay your debts with all of these benefits rolled into one? Let's look at the numbers.

Let's use the example of someone who has a total of $30,000.00 spread over two accounts and a student loan. In addition, you are able to set aside an extra $200 toward debt payments after making the minimum payments on all three accounts. 15000

t relief agency won't make a payment on that debt until you have enough money in reserves for them to negotiate a lump sum settlement. So, even though it appears to be the cheaper way, it may not be the best way based on ruined credit score, tax consequences and you may still wind up dealing with debts on your own if you're sued.

About Christine A. Kingston Consumer protection and bankruptcy lawyer of Surf City Lawyers representing families facing financial difficulties, burdened by debts including taxes, student loans, credit cards, medical bills, law suits, fallen behind on home mortgage payments, or facing auto loans they can no longer afford. We stop wage garnishments and foreclosures dead in their tracks. The firm has helped clients eliminate $1.5 million in student loan debt and helped reduce principal mortgages through the bankruptcy process. The law firm is passionate about helping clients achieve financial freedom from their debts and fights oppressive debt collectors.

A wage garnishment is a legal request from a creditor to take money directly from your paycheck before you get paid. If you owe taxes or fall behind on your federal student loans, the government can make such a request without a court order. All other creditors must obtain a judgment in a court of law before they can legally order your wages taken to repay a debt.

The good news is that you'll usually get a notice first and depending upon when your employer calls in to order payroll, (known as the "payroll cutoff date"), you will have a limited amount of time to take action that might stop your wages from being taken. The amount of your wages that can be taken also depends on who is garnishing. The IRS can take up to 50% of your wages to pay back taxes, so a wage garnishment is going to hurt you financially if you don't take action to stop it. The amount that creditors can take ranges from 15% up to 50%.

The easiest way to stop a wage garnishment from happening is to make a payment arrangement with the creditor immediately and start making payments. Unfortunately, this priceless information is only helpful when you have money to pay them. If you don't have the money to pay them, then the next best alternative to stopping the wage garnishment is to file for bankruptcy protection.

You see, the filing of a bankruptcy case raises what is called the Automatic Stay, which is a court order to stop all collections against the person filing for bankruptcy protection, including foreclosures and wage garnishments. This makes for a powerful tool against those aggressive debt collectors who have taken the trouble of suing you, obtaining a judgment and exercising their legal debt collection efforts by finding your employer and requesting to be paid from your paycheck.

Depending upon your income and financial status, you could file under Chapter 7 of the Bankruptcy Code for a liquidation bankruptcy where you stop the garnishment without making a single payment on the debt. Otherwise, if you income is above average for your household size (using IRS median household income standards), or, if you have assets to protect like home equity, then you can propose a repayment plan under Chapter 13 of the Code.

Whichever direction you choose to take, you need to act fast or the garnishment will go forward. It's important to consult with an attorney to explore all of your options for getting out of debt and it's worth exploring a bankruptcy case because it's a powerful tool that puts you back in control of your paycheck and gives you breathing room to get back on your feet financially. Dump the debt and move on quickly toward your financial goals. Most attorneys provide free consultations, so take advantage of their advice even if you don't hire them. We've helped hundreds of families avoid wage garnishments. Let us know if we can help you too.

About Christine A. Kingston Consumer protection and bankruptcy lawyer of Surf City Lawyers representing families facing financial difficulties, burdened by debts including taxes, student loans, credit cards, medical bills, law suits, fallen behind on home mortgage payments, or facing auto loans they can no longer afford. We stop wage garnishments and foreclosures dead in their tracks. The firm has helped clients eliminate $1.5 million in student loan debt and helped reduce principal mortgages through the bankruptcy process. The law firm is passionate about helping clients achieve financial freedom from their debts and fights oppressive debt collectors.

According to the author and company that this book is basically an advertisement for, Debt Cleanse, Americans have been duped by creditors, credit card companies and other corporate entities into carrying on several self-serving relationships based on long-term or extensive term debt.

Mr. Newbery narrates the story of his problems when an unexpected natural disaster turned his business and enterprises into huge debts. He went from successful to broke and owning $26 million in debt in the matter of a few days following an ice storm. Instead of following the way of many in America, from the poorest to the wealthiest, he did not choose bankruptcy. He made the decision to not pay his debts, any of them.

He embarked on this plan and has adhered to that and learned the lessons that he presents here in this book.

Reading the introduction and the first 3 chapters leaves one with the impression that he was able to do this with large amounts of help from friends and especially the company that is referenced very frequently in those pages.

However, persistence is rewarded in the following chapters and especially when Chapter 15 Action Tools is thoroughly understood. For each of them, from Chapter 4 on, Newbery presents a step by step process to become debt-free.

As he warns in the prologue, introduction and throughout the book, this is not a quick process. This is not an easy process. This is a one-time only process. At the end of all this work and stress, though, anyone can be debt-free.

Chapter 15 and the forms presented there are the most important feature of this book, as long as the uses for these forms are understood from the explanations in the previous chapters. Each is a fill-in-the-blank type which the reader can adapt with the needed information and have an accurate, legal and properly worded communication device for their specific situation.

The writing is consistent and well-considered. Newbery does an excellent job presenting situations, solutions and examples that will guide the most beleaguered person in clearing their debt and living debt-free. With the exception of the frequent references to the Debt Cleanse website, anyone can use the information presented herein and do the same work Newbery did and is still doing to relieve debt that is overburdening them.

This book can be recommended to any reader. The.pdf version of the book is highly recommended for anyone wishing to utilize the forms in the last chapter. These forms can be printed directly from the book, if a printer is accessible. If the reader owns Adobe Acrobat full version, these forms can be filled out on a computer before printing.