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How to Maintain a Good Credit Score with Credit Repair and Debt Consolidation

debt relief, credit repair, debt consolidation

Beginners Guide to Credit Repair and Debt Consolidation

The best kept get out of debt secrets

Having and maintaining a great credit score and low debt is paramount in todays credit crazy culture.

In todays economy you need to purchase many items with a credit card like airline tickets, online purchases etc. so good credit is essential to your financial health.

If you have bad credit or poor credit then you will need to find ways imporove your credit report now.

This can easily be done with credit help counseling, or credit repair services that will review credit repair techniques and debt consolidation strategies that work for you.

When do I Need Credit Repair Advice?

In the current world that is witnessing skyrocketing prices of goods,

huge level of inflation and increasing debts and taxes,

it is time for you to sit down and ponder about clearing off your credit card debts and other loans you’ve taken,

before your creditors come down upon you and make you go completely bankrupt.

Tyler Gregory  stated that “If you don’t take good care of your credit, then your credit won’t take good care you.”

This statement is very valid in today’s scenario where people fret and worry more about a low credit score and dwindling bank balance than anything else.

It is highly important that you stay aware and updated about mind boggling, yet essential…

…terms that will haunt you for days to come.

Also acquaint yourselve with ways to resolve them, in case you fall into such situations.

You must have heard the term called “credit repair” many a times over casual chats with your friends.

If you’ve ever had a poor credit score (below 601), you should probably sit upright and read through this entirely.

Here is a step by step credit repair and debt consolidation strategies presented to you in the simplist and most easily understandable way.

Here is the Deal:

Understanding Credit Repair and Debt Consolidation

crdit report, credit repair specialistLet’s first try to understand the term credit repair. In the most technical terminologies,

credit repair basically involves fixing a bad credit in any form and shape, disputing errors on credit reports.

In order to deal with dispute process you can approach the credit bureaus and complete the process for no fee by yourselves.

You would be required to file a formal dispute with the credit bureaus either online or through mail.

This formal dispute presents a detailed explanation of the error, which needs to be supported with the required documents along with it.

In case you are unable to resolve the issue, you can seek a credit repair specialist or get  help from a credit repair company that offers a credit repair program that will dispute errors on your behalf.

But before venturing into hiring process (if you plan to submit your case to such organizations) let’s quickly understand the basics of Credit Repair Organizations Act.

Credit Repair Organizations Act, a federal law that came into effect on April 1, 1997,

when large number of consumers suffered from credit repair scams ensures that credit repair service providers are…

…Prevented from taking money from the consumers until their services are fully catered to
Providing a written contract stating all the services they provide,

along with the terms and conditions for the payment.

As per the law, consumers can withdraw from the contract within three days.

Prohibited from making false claims with respect to the services that they intend to offer to the consumers.

Forbidden from asking the consumers to sign any document that leads to forfeiting of their rights under this Act.

You Might be Wondering:

Best Methods to Fix Credit Repair on Your Own

It is impossible for you to fix your credit quickly.credit consolidation loan, credit repair

Repairing you credit is going to take some time. So be patient.

Information about your delinquencies and late payments are reflected on the credit report and will remain as such for many years..

However, here are a few steps that you need to follow to deal with your credit repair loan so that you build a positive credit history which will eventually improve your credit scores as well.

1. Keep a Check on Your Credit Report

You need to thoroughly check your credit report for getting a good grasp of your credit picture and what the creditors get to see in that.

You can always file a dispute, in case you find any incorrect information in the report.

For example, the items on your credit report that seem unrecognizable to you, can also mean presence of some fraudulent activity.

You need to have a clear understanding of fraudulent items vs. incorrect items given in the credit report.

2. Keep Track of Your Payment History

It is important to have a good payment history to show off as delayed or missed payments lead to lower credit scores, public records and collections may cause more damage.

This negative information stays on  your credit report for 7-10 years.

Be aware that the more recent your missed payments are and the larger your credit debt is,

the lower your credit score will be.

A well maintained account and timely payment will boost your credit score higher.

3. Be Aware of Your Credit Utilization Rate

A credit utilization rate is the amount of outstanding balance compared the available amount of credit that can be accessed;

it is also called the “balance-to-limit ratio”.

That is, it is the total sum of all the revolving debt divided by total credit available (for that particular credit card, for example).

If the credit utilization rate remains high, your credit scores are sure to be impacted.

Ideal credit utilization rate is assumed to be below 30%.

In order to reduce the credit utilization rate either pay off all account balances to reduce the overall debt,

or increase your credit limit on the existing account or open a fresh account
in order to increase the total available credit.

But the second option surely is a risky one.

4. Manage Your Credit Accounts

credit card debt, business debtCredit scores take into account each and every account you own and the amount you against each of them.

It is a good idea to pay off the debt against some of the accounts, in case you own more than one credit card.

Also, the more paid-off accounts or debt cleared accounts can be a plus in the overall credit mix as they are old accounts maintained in good standing.

5. Consider Your Credit History

It is a wise move to give a thought about your credit history before you close an account.

Credit scoring models often seek the age of an individual’s oldest account along with the average age of all other accounts,

in order to reward individuals with long credit history.

It is considered beneficial to retain an account whose debts have been cleared off.

6. Stay Wary of New Credit

A good credit repair tip to consider is to think extensively before opening several credit accounts in a short span of time.

This can be a risky procedure for the lenders and might later affect your credit scores.

Whatever inquiries you make, whether for buying a car or for mortgage rates, they will be grouped and considered a single inquiry for adding information to the credit report.

The inquiries into your credit report will negatively impact your credit score so be aware of this when applying for more credit or loans.

If  you feel that your credit debts are getting out of control or too large to handle on your own…

…then you should seriously consider seeking a professional credit repair expert for advice.

You can get a free credit repair consultation from CuraDebt, one of America’s top credit repair and debt consolidation companies.

Now:

How Do Credit Repair Firms Help You

An established and experienced firm scrutinize credit reports from all the major credit reporting agencies and puts your credit issues on the table for you to understand.

This is because each credit reporting agency may have its own lenders, debt collectors,

…and credit card companies who will collect all the credit information and report the same to such agencies.

Chances of errors in any of these reports are high and it is important for the companies providing credit repair help to have a thorough information about the same.

In case errors or discrepancies are identified in your report, necessary documents have to be provided by the consumer to the credit repair company…

…in order to rectify those errors and generate an appropriate report for you.

How Can You Identify the Best Credit Repair Firm

As the market is strewn with credit repair service providing firms,tax debt counseling, debt settlement plan

it surely would be tough task to identify the right one to deal with your kind of problems.

Here are a few tips to consider, before you finalize a firm to do your job.

The company is aware of your rights and also helps you understand them.

Find a firm that genuinely explains you the consumer credit rights and answer all your questions.

If the firm is unable to do it, it’s a red flag that you should keep looking for a more knowledgeble firm.

The firm should understand the reason why a consumer wants to dispute an item on the report presented by the data furnishers and credit bureaus before they start offering solutions or sign a contract with them.

The company is able to explain how they can best represent a consumer to the credit bureaus.

A good credit repair company is the one that gives an accurate information about all the services they can and can’t provide before the consumer hires them.

So in case you are wondering as to how long the credit repair firms take to deal with your case and how much will they be charging you, here is what you need to know.

In order to remove negative and erroneous information off your report, the credit bureaus take a total of 30 days or less (exceptional cases may extend to 45 days) to respond and resolve a dispute.

The price of credit repair services offered by a firm depends upon the company, the state you reside, and the type of services you are seeking from them.

It is important that the consumer is aware of what type of services he requires and signs up for  with the firm.

Another term that you need to understand when it comes to keeping your finances on check and debts at bay, is debt consolidation.

This procedure may sometimes be a boon in disguise as it will help you pay off most off your debts and relieve you off the constant stress and worry from them.

Let’s take a look into this method a little more in detail and understand how it is going to help us.

Debt Consolidation and the Methods Involved

Debt consolidation is the method wherein you take out a new loan so that you can pay off a number of unsecured debts – liabilities and consumer debts.

That is, you are attempting to combine multiple debts into a single, large piece of debt which can have better pay-off terms like low rates of interest, low monthly payment, etc.

This method is a common one when it comes to clearing off student loans and credit card debts.

A consumer can utilize numerous ways to combine all his debts into a single large chunk.

One possible method is to merge all credit card payments onto a new account, in case the credit charges very low or no interest at all for a particular time period.

Another option can be opting for balance transfer feature of a credit card.

Other forms of consumer debt consolidation methods can be going for home equity loans –

which is essentially a mortgage of your home until you pay your debts – as the rate of interests on the loan is deductible.

Major Advantages of Debt Consolidation

debt management, debt consolidation loanFor people who have numerous debts, or owe close to $10,000 and above,

as debts are contacted frequently by the collection agencies,

owe accounts that charge high income rates and monthly payments,

are not able to negotiate lower rates of interests on loans and are having a tough time making payments for their debts, a debt consolidation strategy is an absolute necessity…

… as this plan will help you pay off your debts and never be troubled by the collection agencies.

But here is the kicker:

if your debt consolidation loan is backed up with an asset,

you can also qualify for a tax deduction as Internal Revenue System does not allow a consumer to deduct interest on any debt consolidation loans that is not secured with an asset.

In the case of the use of home equity, debt consolidation loans are tax deductible and thus such loans can help you improve your credit score.

Types of Debt Consolidation You Can Go for

Home Equity Loan

This is one of the most affordable and safe methods of consolidation as you have a choice of selling the house in case you are unable to pay your debts on time.

This method will, help you pay your debts and free you from them, making life easier and stress free.

You will be required to pay just one monthly payment, which will be way less than the total previous outstanding debts that you were paying.

Also, your lender can opt to pay other debts from the funds from home equity loan and ease you off some strain.

The major advantage of this loan is its tax deductible feature, thus proving to be the most essential form of debt consolidation plan.

Credit Cards Offering Low Rates of Interest

Now in case you do not wish to opt for home equity loans, as you don’t own a home, you can always opt for credit cards that offer very low or zero rate of interest.

Although there are high chances of getting signed up to a  fraudulent credit card company that lure you into signing up with them…

…the best way to keep a check on them is to look out for such credit card companies that focus on the consumer’s’ credit score or sound credit.

You also have to focus on the terms and conditions put across to you by the company, before you give your final word.

Take these precautionary steps before agreeing to  them:

Read their agreement thoroughly.

credit loan application, credit repairTake a note of the rate of interest that you will be required to pay after you sign with the company.

Always make your payments on time.

Even if you are late on one payment, the company can jack up their interest rates on you.

Have a keen eye for hidden charges and fees that may be present and can make the seemingly low interest look high.

Personal Debt Consolidation Loan

This method is a way to combine  all your bills into one and pay them all off with a sigh of relief.

Personal debt consolidation loans generally bundle all the existing and current debts and gives you a lump sum for paying off your combined cards or debt with single lower interest rate bill.

Although this seems a good alternative, consider the following before you jump onto it:

Be aware of the terms and conditions of the consolidation loan you are planning to procure and ensure that it doesn’t burden you by adding onto the amount that you are currently paying.

As you have no asset to secure the loan, the lender will surely hike up the interest that they will charge you.

Poor credit leads to high rate of interest and the possibility of the getting your loan turned down by the lender.

So be prepared for the same.

Applying for loans at banks and credit unions is a much better option they offer better rates of interests to the members and thus save you from higher rates.

It is best to do a survey of rate of interests and their terms before settling down for any firm.

What’s the Bottom Line?

It is always best to maintain a good credit score and pay your debts on time.curadebt credit consulting

If you fall prey to mounting debts, you can choose appropriate credit repair and debt consolidation methods to free yourself from the clutches of debts.

This is not an area where you want to do it your self.

There are some areas of expertice that just requires calling in a top professional to help you out, and this is one of them.

(For me it is plumbing!)

One of the top debt consolidation and credit repair companies operating today is CuraDebt.

CuraDebt has received numerous awards and are always ranked at the top for customer satisfaction.

Just click this link NOW for your FREE Credit Consultation.

debt relief, credit counseling, credit consultant

 

www.us-debt-free.com

 

Disclosure: We are a professional review site that receives compensation from the companies whose products we review. We review each product or service thoroughly and give high marks to only the very best companies. We are independently owned and the opinions expressed here are our own.

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How to Pay Off Federal or State Tax Liens or Debts

tax liens, pay back taxes, IRS tax lien

How to Pay off Your Federal or State Tax Liens or Debts

Guide to getting IRS tax debts and State tax liens paid off fast

Have you recently been notified that you have a Federal or a State tax lien filed against you?

It is not uncommon in this current economic environment that we are in to be saddled with a state or Federal tax lien or debt.

Many small businesses and entrepreneurs who struggled under the heavy regulatory burden of the Obama presidency…

…just could not keep up with their tax payments during the slow economy of the the Obama years.

So what to do now that the economy is booming under Trump?

If a person holds an unpaid tax bill with the country, city, state or the IRS,trump economy, IRS tax lien

…a tax lien is filed in order to force them to pay all the outstanding taxes.

A lien is a method by which the government claims an individual’s personal property (it can be the property or money) when they do not pay taxes.

When a tax lien is filed it becomes a public record easily accessible to anyone including the companies dealing with credit reporting.

This is sometimes misunderstood by the customers with tax liens that state tax authority and IRS have reported about the lien to the credit bureaus…

…which is not the case in reality.

It is the other way round wherein the credit bureaus themselves find out the tax liens and bankruptcies of individuals to include such reports on the consumer credit report.

Therefore it is extremely tough to escape such details from being included in the credit reports, and more often than not the person will be forced to pay the taxes to whomever they are owed.

Important Tax Lien Terms to Be Aware of:

Unpaid — This means that the tax lien that has been issued due to non payment of taxes is still unpaid and the debt is still uncleared.

Tax liens in the unpaid status are going to be there for a very long time on the credit reports.

Paid or Released — This state declares that the tax owed by the individual has been paid and therefore lien (government claim on property) issued has been released now.

Such Tax liens are usually going to be there on your credit reports for a period of 7 years from the date of payment of the lien.

Withdrawn — This is the status every individual with liens strives for.

It means that the public record of the lien has been withdrawn by the tax authorities and the credit report is free from any kind of tax lien reports on it.

How does  a State or Federal Tax Lien Affect Me?

Assets: When lien is attached to all of your assets (be it vehicles, property, or securities) the assets that you buy in the future will also have a lien attached to them when acquired during the duration of the lien.

Credit: Once you are affected by IRS tax lien and a notice is filed the ability to get credit becomes limited.

Business: A lien is attached to all business property as well as the rights to such business property, including all receivable accounts.

Bankruptcy: Even if an individual files for bankruptcy, the lien and tax debt may continue after the bankruptcy too.

What Does the IRS Do If You Have Federal Tax Lien

In case a federal tax lien is attached to your property, the IRS…federal Taxes,state tax lien

…Puts all the balance that is due on the books (that is, assesses the liability);

Sends a bill to the person mentioning how much they owe (Notice and Demand for Payment);

It then files Notice of Federal Tax Lien, a public document, in order to the creditors about government’s rights over the person’s property.

How do I Get Rid of a Federal Tax Lien?

Pay the tax debt in full:

If a Notice of Federal Tax Lien is sent to an individual who has not paid taxes, it should never be ignored.

The more it is delayed on taking the appropriate steps, the harder it will be to take the rights steps towards clearing off the taxes…

…as well as the accuring interest on the balance due.

In such cases paying off the entire debt in full is the best method to hop out of the clutches of a federal tax lien.

And once the entire tax amount is paid, the IRS releases the lien within 30 days.

In case a lien is attached against an individual’s liability by mistake or during some very difficult circumstances (like an injured spouse claim), the tax lien can be appealed.

Discharging the Property:

Another option is to apply for a Certificate of Discharge in order to remove a tax lien from some specific property.

But such a “discharge” of property to remove the federal tax lien from some property would be granted only if they qualify under Internal Revenue Code (IRC) provisions.

Subordination:

This is process by which the the creditors who have a share on the property on which a federal tax lien has been laid, gets paid first before an individual clears the lien.

That is, the other creditors are given preference over IRS for a particular property.

This process does not remove the lien as such but allows other creditors to get paid first.

This process, called subordination, is carried out by IRS in case it requires other creditors approval while putting up the property for sale.

For instance, in case the IRS has attached a lien to a property which also has a mortgage, it means that the bank is involved as it also holds a lien.

If the bank doesn’t get the money it holds on the property, even after the satisfying the federal tax lien, then it might not approve for the sale of the property.

But if the IRS goes for subordination, IRS gets paid after the bank receives its share.

Withdrawal:

Withdrawal is a method to remove the Notice of Federal Tax Lien and ensure that other creditors are not competing with the IRS for the property.

Taxpayers who go for a Direct Debit Installment Agreement are mostly eligible for the withdrawal option.

This method does not free you off of the tax debt and the individual still need to pay the amount that is due.

There are two additional withdrawal options. In the first option, withdrawal of Notice of Federal Tax Lien is possible after the lien’s release.

The following considerations come into play:

back taxes, IRS taxesThe tax liability is satisfied and the lien released.

The individual is in compliance for all individual returns, business returns, and information returns for the previous three years.

The individual is still paying federal tax deposits and the tax payments.

In the second option, the Notice of Federal Tax Lien is withdrawn after one has opted for or converted the regular payment instalment agreement to Direct Debit instalment agreement.

The following considerations come into play:

The individual qualifies as a taxpayer (for example, businesses have income tax liability, or any out of business entities having tax debt).

The individual owes $25,000 or less (In case of owing more than $25,000, one has to pay the balance to $25,000 and only then request the withdrawal of the Notice of Federal Tax Lien).

The Direct Debit Installment Agreement that an individual has opted for must pay the entire amount owed within 60 months or prior to expiring of the Collection Statute, whichever comes earlier.

  • The individual is fully complies with other payment and filing requirements.
  • The individual has made close to three back to back direct debit payments
  • The individual has not failed to pay any current or previous payment in the Direct Debit Installment agreement.

What Are the Steps to Follow If A Notice of Federal Tax Lien Is Issued To an Individual?

Firstly, the individual who has received a notice of federal tax lien should remain calm and not panic.

IRS and other agencies that are into tax relief services provide sufficient assistance for anyone who has been issued the notice.

Following are the ways in which IRS offers assistance:

Installment agreement:

In this method, the individual accepts to have payments automatically debited from his or her bank account for a total of 72 months.

Applying for withdrawal:

When an individual agrees to enroll for direct debit installment agreement, the payments to the IRS are automatically deducted from the bank account at different intervals agreed by them.

Offer in compromise:

An Offer in Compromise is a process where the taxpayer and IRS come to a mutual agreement,

and the individual is allowed to settle the tax debt for an amount lesser than the full amount, asked on the assessment of IRS on their ability to pay the debt.

In case you do not qualify for any federal tax lien payment methods by which you can clear off the federal tax lien…

…if you have a debt of more than $25,000 under your belt, you can also go for federal debt consolidation way to pay them off.

What Is The Difference Between Federal and State Tax Liens?

All citizens of the United States, regardless of which state they belong to, have to pay federal income tax.

So in case you own a house or a business in any of the states, you are bound to pay the tax imposed by the Federal government.

Internal Revenue Service (IRS), a Federal agency, enforces all the tax laws and collects taxes from the citizens.

The tax amount charged by the IRS is based on the income earned by the individual,

since the US follows a progressive system of tax — wherein the more you earn, the more tax you pay…

…the marginal tax bracket is the highest tax rate that is paid by the citizen from his income.

In case an individual has some outstanding tax liens, he can join the Fresh Start Program

…introduced by the IRS wherein a taxpayer can request to withdraw the lien from his account if he pays the outstanding tax in full.

In some cases there is the facility for the taxpayer to withdraw their federal liens after they make a minimum of three payments.

Once the tax liens are withdrawn, the credit bureaus can be informed.

In the case of state liens a taxpayer can request for withdrawal after he has paid the state liens.

O.K. so what if I owe a State Tax Lien?

state tax lienA state tax lien is the state imposed claim on an individual’s personal or real property used as collateral for paying the tax debt incurred back to the state.

In order to ensure that each taxpayer pays his dues to the state, the State Department of Taxation is set to secure payment in any form from the individual.

Like the federal lien, even a state lien is displayed on the credit reports and impact the taxpayer negatively in his attempt to secure financing for car or house, etc.

Filing of State Tax Lien

A state tax collector can easily file a lien against an individual’s personal property in case he has made no efforts to pay back the taxes imposed by the State Taxation Authority.

When a state tax lien is imposed on a person’s property, the state government has the rights to seize or sell the assets owned by him…

…in case he cannot or is not in the situation to pay back the taxes.

But before taking the extreme step of filing a lien, the state taxation authorities will seek alternative methods to collect taxes.

Preventing State Tax Lien:

State tax lien is prevented best by making a full payment to the state before the lien is even filed.

In case, making a full payment in a single go becomes impossible, other options such as choosing an installment agreement, or negotiating for OIC method can be a solution.

But it is always best to approach the tax attorney for assessing the current situation and choose the best way to avoid lien and save your credit report from a negative entry.

Methods to Resolve Unpaid State Taxes

Following are the methods to deal with the unpaid state taxes that have mounted on your account:

Installment Agreement:

This is a payment agreement which allows an individual who is a taxpayer to pay the amount in monthly instalments in order to relieve themselves from the imposed taxes.

A taxpayer entering into such an agreement is considered to be in a stable position while dealing with the IRS or other state taxation authorities.

Offer in Compromise (OIC):

When a taxpayer is not in the position to pay taxes at all before the given time duration, this program is offered to him.

This program helps taxpayers to settle down for amount lesser than their due amount and pay the same, instead of paying the entire amount.

Partial Pay Installment:

payment planPartial pay installment aids a taxpayer to pay the tax amount in small monthly installment than the otherwise regular installment that is assigned to them.

The financial situation and the income earned by the taxpayer determines the amount for the monthly installment.

Sometimes, the amount that is decided for monthly installments is quite small that the entire debt is not covered, or paid off before the Collection Statute Expiration Date (CSED) or the statute of limitations on the debt expires.

Thus, any unpaid taxes by the CSED is said to have been wiped clean and the taxpayer is relieved from paying taxes.

Agreement of Currently Not Collectible (CNC):

If the taxpayer does not have enough money to pay the taxes,

he can be declared uncollectible which ceases the collection activities till the time the financial situation of the person improves…

…enough to let them pay the debt amount without causing them any financial hardship.

Sometimes, even the statute of limitations expires prior to taxpayer being able to pay the entire debt and the taxpayer later does not owe the debt.

Penalty Abatement:

This option comes into play in conjunction with other options of paying off the state lien.

If an individual has a very genuine reason for not being able to pay the tax amount, which is also considered to be a reasonable cause, the penalties are either reduced or removed.

Thus, there is a solution to every situation.

Generally, the taxing authorities do not make things hard for the taxpayer who is facing some kind of financial crunch.

After the IRS or the state taxation authorities assess a taxpayer’s financial situation…

…and understand that collection of taxes will only worsen the financial hardship faced by the person,

they find suitable solutions for the taxpayer and help him deal with the situation.

How do I Remove Tax Liens from My Credit Reports?

The tax reports will always display your debts and taxes.pay taxes

Having unpaid IRS or state tax debts will always negatively affect your credit score,

…thus making it hard if you to get any additional loans if you do not find ways to deal with paying off the debt.

Following are some methods by which you can ensure your credit report does not have many negatives on it.

Request a copy of credit report to check for accuracy from www.annualcreditreport.com.

Everyone is entitled to one free credit report per year that does not get reported as an inquiry on your credit report.

You can always check your credit with www.creditkarma.com as well. It is 100% free.

All the tax liens can be found within the report.

Contact the federal or state tax office for confirming the due that is left for you to pay off.

It can also be a good opportunity to understand various agreements and choose one to settle the debt.

Paying off the amount in full or using repayment plan is the best way to come out of the burden of taxes.

Also, take the paid-in-full letter for sure from the tax office.

Taxpayer can dispute the items on the credit report either online, or through a dispute letter or by making a call to the credit bureau in case he or she is not sure about the entry on the report.

What’s the bottom line?

If you find yourself in this situation of owing back taxes to either the Federal IRS or the State Depatment of Taxation then you owe it to yourself to seek solid professional help or counseling.

Unless you are a tax lawyer who is fully up to date on all of the intricacies of tax law then by all means seek professional help.

This is not an area of your life where you want to wing it and just let the chips fall where they may.

These government agencies want their money, and they have all of the resources of the U.S. government and States to back them up to make sure that they get paid in full.

If you need help you can always get a free credit and tax consultant at CuraDebt.

CuraDebt is one of the nations top credit and debt resolution companies.

They have highly trained IRS experts on staff, standing by and ready to help.

So ckick this link – get IRS tax help now for your free consultation.

Let a trained professional deal with you burdens so you can get on with your life.

You will be glad you did!

taxes, back taxes, federal tax lien

 

www.us-debt-free.com

 

Disclosure: We are a professional review site that receives compensation from the companies whose products we review. We review each product or service thoroughly and give high marks to only the very best companies. We are independently owned and the opinions expressed here are our own.

 

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Best Debt Solutions and Credit Repair Help

 debt relief, credit repair startegies,

What is the best Debt Solution and Credit Repair help that fits your needs?

Debt Settlement Plan, Debt Consolidation , IRS and State TAX debts

For unsecured debts the best option is to pay back your credit in full by paying more each month than the minimum payment.

If your situation is such that the minimum payment is causing you challenges , or if you already gotten behind on payments then the best solutions to try a settlement with the credit card companies or your unsecured creditors through a debt relief program.

If you have tax debt, then to ensure compliance and come to the best resolution, your best option is to have a highly trained IRS Tax Relief expert identify the issues and get them resolved with the IRS.

Try to get you credit card interest rates lowered

Contact the credit card companies. If you have good credit, ask the credit card company to lower your interest rate. That will help save money every month.

If you can afford to:

  • accelerate your credit card payments
  • personal loans
  • and even your house mortgage by paying a little extra each month

This will help speed up paying off the loan and also save you a lot of interest over the term of the loan.

Just make sure that whatever loan that you have doesn’t have a pre-payment clause that will penalize you for paying it off in advance.

Know What You Owe…

  • Know what money you have coming in and how much you have going out.
  • Create a budget and track all of your monies.
  • Make one list for your income and another for all of your expenses.
  • Be sure to include everything, including groceries, utility bills, insurance, baby sitters, entertainment, etc.

Everything!

If you don’t know where you are at, you won’t know hjow to get where you want to go.

Subtract your expenses from your income. That is your leftover discretionary income to pay off debts or to put into savings. Which brings us to the next step…

Make a Plan and Plan Your Strategy

Break the total debt payments down for let’s say a three year goal to be debt free.

Divide your total debt amount ny 36 months and that is what you would need to pay monthly assuming  that you do not increase your debt with more purchases.

debt relief, credit repairIf you don’t have a plan – try the Debt Snowball Plan:  Here is how it works-

Make your standard monthly payments on all of your cards except for the smallest one.

Make as large of a payment as possible on your smallest debt, so that you pay off your smallest one first.

Once the smallest debt is paid off this then frees up extra monies to make additional payments on the next smallest credit card debt.

Rinse and repeat until you get your largest debt paid off. If you stay focused with your eye on the prize and start by paying off your smallest debt first it will create large results later.

Good Luck – remember, determination and perseverance wins the day!

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IRS “Offers in Compromise” Agreement

 

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What is an IRS “Offer in Compromise” Agreement?

 

With the IRS “Offer in Compromise” Plan if you have an IRS tax debt that you need to settle you may be able to settle it for LESS than the full amount!

WOW – How is that so you ask.

 

If you have an outstanding IRS tax debt you might consider an IRS tool called the “Offer in Compromise”.

The IRS naturally wants to / has to collect something from you Mr., Mrs taxpayer.

If the IRS questions that they think you would not be able to pay your tax bill in full then they go to plan B…

that is to get what ever they can out of you determined by how much you owe.

Your true ability to pay and how much time they have to collect on the tax bill.

The OIC “Fresh Start Program” has been expanded and streamlined by the IRS. 

The taxpayer has now been allowed more flexibility when the IRS analyzers the taxpayers ability to pay.

This makes the “Offers in Compromise”, Fresh Start program available to a larger group of taxpayers.

If the taxpayer can convince the IRS that the amount they are able to pay represents the most they would be able to pay within a reasonable period of time then generally, the IRS would accept the offer.

If the IRS believes the taxpayer can pay the full amount owed either through a payment agreement or as a lump sum then the IRS will not accept an offer in compromise.

Several factors are considered in the decision making when the IRS reviews the taxpayers ability to pay including the taxpayers income and their assets.

If you would like to see if you qualify for an “Offer in Compromise” settlement go to the IRS.gov website and use their Pre-Qualifier tool to determine your eligibility.

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Disclosure: We are a professional review site that receives compensation from the companies whose products we review. We review each product or service thoroughly and give high marks to only the very best companies. We are independently owned and the opinions expressed here are our own.

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