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Debt Settlement 101

Your heart is telling you to settle your bad debts and you’re not sure the best way to do it. I recommend that you not deal with the collection agency if one handles your debt. These are middlemen and they are in the business of harassing, threatening, and scaring you into paying your debt, plus interest and service charges on that debt. If you really feel compelled to make good on your debt, then you need to approach the original creditor and make the arrangements to pay off that account. We all know that you must do the right thing if possible and pay debts owed. But we also know that everyone experiences money problems some time in their lives.

You should know that by the time your debt was sent to a collection agency, it has already been written off by the original creditor as an uncollectible debt. In other words they took a write-off on their tax returns… so when you approach them, they consider your offer to pay them back as windfall. If you are able to pay the full amount, do so. But if you are still in a bind, you can negotiate a lower pay off amount. In fact you can start as low as 40 cents on a dollar and work your way up. But your real goal should be payment in return for the removal of the negative item on your credit bureau reports. The creditor may seek all or most of the amount owed for this option, but that’s for you to work out.

I feel the best possible result on your credit reports is to have the item totally removed, or at the least marked as “Paid”. Also request any mention of this item by a collection agency be removed at the same time. This is part of the deal. “Paid” is a neutral entry and will not affect your credit score at all. If you can’t get them to agree this, second choice is “Settled”. This is negative, but it’s much better than “collection charge off”. Here is the list of terms that you do not want to agree upon: “Paid Charge-Off” -Charge-Off”- “Paid Collection”- “Repo”. These are all still very much negative and should never be accepted.

All of us live in a society that is inherently forgiving and most companies are willing to work with you. On the other hand, most collection agencies are in the business of collecting debts, and they have never heard “…forgive us our debts, as we also have forgiven our debtors. Mt 6:12″. I hope you’ll consider taking control of your past by repaying your debts as best you can. Use the tools provided by the CreditMania portal to accomplish this. The first step is just getting on the phone making the call to the original creditor. Try negotiating a pay-off agreement on the phone, then get it in writing. And do yourself a favor, fire the collection company pronto, this will stop the harassment.

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Matters of the Wallet and Sleep Aids

According to research firm GFK Roper, more than 2 out 3 Americans are losing sleep worrying about their finances. And more than 1 in 5 over credit card bills alone.

This is staggering data and yet it is so true! Isn’t it scary how much or health issues are related to financial woes? If we would simply address our matters of the wallet head on and stop avoiding solutions we could all live life more richly. We could get more rest which our bodies require on a daily basis.

If you are losing sleep because of worry about personal finances please resolve to adopt an action plan to solve the problem. If you need help there are plenty of resources available. You can seek help online in various venues including right here or at our sister website CreditMania where we have solutions for most debt and credit problems.

I firmly believe if you take control of the matters of wallet you will have discovered a powerful sleep aid!

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Why a personal worth blog?

Welcome to my new blog spot! I hope you find this a worthwhile spot to hang out and that very quickly you you’ll decide to subscribe.

The Internet is flooded with thousands of websites that deal with credit, debt, and credit repair. My own CreditMania.com is among the mix. It is great that we can take advantage of the web to help get our credit scores improved, but how many of us really take a good honest look at how we ended up searching Google on such credit related topics? Personally I think the reasons are numerous and in many cases very much out of our own control. But in most cases, if we get “real”, most of the we time can attribute that we are the cause of our own misery.

My goal is to spark the motivation in each of you to look deep into your souls to identify why you are where you are and help you make a decision to get things fixed and committ to not let history repeat itself.

Ultimately I define personal worth as:
• Solid Personal and Family Financial Habits
• Making your financial life automatic
• Living everyday as an opportunity to better ourselves and make a difference

Please stop by frequently to read my and other’s blog posts. The possiblities are endless and together we’ll learn how to live life richly… I promise!

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