Debt Negotiation – Applying the Insolvency Rule to a 1099-C Tax Liability
If I enroll into a Debt Negotiation program to settle my debts with my creditors, will I have to pay tax to the IRS? This is a daily question I am asked during my consultations with consumers. The answer is that it depends on your situation. Before I review a few situations to illustrate when you may or may not be required to pay a tax on forgiven debt, let me make it very clear that I am NOT...
Read MoreHow to find the Best Debt Settlement Company for you.
A question that I am asked quite often is, “who is the best debt settlement company?” Well, that really depends on what your definition of “the best” is. Personally I have not seen more than a small handful that I would even consider recommending to a consumer. Most of these debt settlement outfits have less than a 25% success rate and will do nothing more but siphon...
Read MoreTop 5 Reasons Most Debt Settlement Companies Fail their Clients.
Debt Settlement Companies are everywhere. You have seen the ads on TV and heard them on the radio. You know, the ones where they promise to cut your debts by up to 70%, stop the creditor phone calls, lower your monthly payments, and make your life so blissfully happy that you will wonder how you could have ever lived without them. In reality, I would rate most Debt Settlement Companies as...
Read MoreTop 5 myths told by Debt Settlement Companies
Over the years I have heard so many half truths and flat out lies told to consumers by Debt Settlement Salesman, I decided to make a list of the top 5 most common. If you find yourself on the phone with a settlement salesman that floats one of these over to you, go ahead and politely terminate the call and save yourself some time. Without Further Ado, here is the top 5 in reverse order 5....
Read MoreNew Debt Settlement Video is Eye Opening for Consumers
These days American consumers are hemorrhaging under mountains of Debt. Where there is blood, there will certainly be sharks. Specifically I am referring to Debt Settlement companies. There is definitely not a shortage of shady characters in other forms of debt help, but due to the largely unregulated nature of Debt Settlement, the sharks can find much easier pickings. After several years of...
Read MorePersonal Bankruptcy filings are up 40% from this time last year
I am afraid this number is only going to get worse as the recession slogs on. Unemployment is continuing to rise as companies rush to downsize in an attempt to survive. The unfortunate reason for many of these bankruptcies is that these families where carrying too much debt and living paycheck to paycheck. When they have a hiccup in their income situation, they are left with no wiggle...
Read MoreChase forcing more consumers to turn to Debt Settlement or Bankruptcy
As the recession drags on and consumers are struggling to keep their heads above water, JPMorgan Chase is throwing out bricks to many of their customers. About 15 million Chase credit card holders are going to get an unpleasant surprise in August when their minimum payment jumps from 3% to 5%. If you have a $10,000 balance on your chase card, instead of the typical $300 payment, you may be...
Read MoreHow The Debt Snowball Method Works to Pay Off Debt Fast
A Quick and Simple Method to Pay Down Debt. The Debt Snowball is one of the most talked about methods for paying off debt, although there’s some disagreement about one of the basic premises of the Debt Snowball – whether to start paying off the smallest debt first or the one with the highest interest rate.I tend to prefer the method of starting with the highest interest rate first...
Read MoreDebt Settlement Radio Ads Make my Head Hurt
Earlier today I was pulling into my driveway after a fun family weekend at Disneyland with our two boys and on the radio pops another advertisement for a debt settlement company. Of course doing what I do, I always turn up the volume when I hear these types of spots. This one seemed to rub me the wrong way more than they usually do. The spot was essentially implying that this specific...
Read MoreFun with Financial Calculators
Ok, so you can’t really have much fun with them, but a very insightful and valuable tool. Knowing a few functions on the financial calculator will go a long way toward learning the true cost of debt and why it is essential that you get rid of all consumer debt as quickly as possible. In this video I quickly outline the true cost of carrying $50,000 dollars of credit card...
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