Vishal Verma asked:

debt settlement and consumer credit counseling are services with the same goal but apply to different circumstances and goals. Once fully aware of one’s circumstances the choice between the two becomes obvious.

Consumer Credit Counseling (CCC) is primarily for those seeking financial convenience. CCC reduces interest rates on credit cards whose payments are relatively current. With this service the entire outstanding debt is repaid in full. The terms of CCC are set up by the creditors themselves. Under CCC clients typically pay the same amount they are paying now each month. With CCC monthly savings are not that significant and so people with real hardship cannot typically afford to access the advantages of this program. The most significant benefit of CCC is to reduce the total time required to payoff one’s debts. Consumer credit counseling is thus simply a convenient service for becoming debt free more rapidly. This convenience is only accessible to those who have debt s that qualify and can afford to pay right around what they are paying now each month.

Debt settlement is a solution for those with significant hardship who do not wish to or don′t qualify for filing bankruptcy. This service reduces the total principal to be paid through settling debts “in full”. Debt settlement is structured by a third party company rather and takes into account the client’s ability to pay and not just the desires of the creditors. Debt settlement creditors are willing to accept a negotiated payoff rather than receive zero should the client file bankruptcy. Debt settlement benefits the client by both alleviating their monthly overhead (and therefore alleviating their hardship) and by also dramatically reducing the total time required to get out of debt. Debt Settlement is best described as an alternative relief to significant hardship caused by debt. This option should be considered for those who have significant hardship and want an alternative to bankruptcy.

Debt settlement and consumer credit counseling have similar goals yet are greatly different in who they serve. Consumer Credit Counseling is an option for those whose situation is such that they afford to have options. CCC prospects do not typcially actually have to choose to do anything at all. Often those who are good consumer, credit counseling can often just as easily choose other options including paying their debts as they are at present. Debt settlement is for those who have few other choices and are considering bankruptcy or just “letting go” and not paying any more creditors to survive. Restricted by significant financial hardship, other options simply don’t suit debt settlement candidates very well. These services therefore serve different people. Individuals are typically only able to benefit from one of these programs and getting into the wrong program can make a person;s situation even worse.

How To Make A Diaper Cake

Kerry Jonas asked:


The Rankines had 13 credit cards

As more people find themselves in debt, one couple found loopholes in their credit agreements to avoid paying tens of thousands of pounds. But a High Court judge had the final word.

Amanda and Basil Rankine ran up debts of £120,000 after their mortgage advice business collapsed and they found themselves unable to afford their monthly payments.

Their debts were spread over 13 credit cards, four loans, car finance and an overdraft. They decided to study the Consumer Credit Act and contacted lenders claiming they had found mistakes in their credit agreements.

The Act lays down the rules which companies have to follow when they advertise or sell credit.

“I studied the Act and decided that there were things that didn’t match so I put together a bit of a letter to HSBC, thought I had everything correct, and sent it off,” Mr Rankine told the BBC’s Panorama programme.

“They wrote back, and after a few months said we’re prepared to write balance off.”

The Rankines, from Rugeley in Staffordshire, looked at all their credit agreements and identified potential loopholes.

These included whether the correct annual percentage rate (APR) was used, whether the forms had actually been signed and if the lenders had kept a copy of the paperwork.

In this way, they managed to have a number of their 13 credit cards and loansloan a> ritten off, to the tune of £37,000, including the sum from HSBC.  

Sir Roy Goode, an eminent commercial lawyer who was instrumental in drafting the Act, said the rules relating to credit agreements were “extremely complex”.

“So any slip that is made entitles the consumer to refuse to pay unless the court gives leave to enforce the agreement,” explained Sir Roy.

Mr Rankine said: “Now more people challenge agreements, and more people will realise… the law is there so they have a choice. Challenge or repay at their level, or challenge and repay at your level.

The couple decided to take their remaining creditors to court over loopholes they believed they had spotted, and in an attempt to set a legal precedent that may benefit others. But the case was dismissed by a High Court judge, who said the couple were wriggling out of debt.

Despite the judgement, a legal technicality – which meant the lenders could only claim the money back while the court proceedings were going on – meant the couple still managed to get most of their debts frozen.

That took their total debt clearance to £100,000, leaving more than £20,000 outstanding. However, a legal bill of £100,000 left the Rankines back where they started.

They don’t accept they lost the case and they say they would prefer to be paying a legal bill than paying a debt they thought was unlawful.

The Rankines did their own work in scrutinising their credit agreements, but a whole industry is emerging online of companies claiming to get debts written off, and securing compensation, by rendering credit agreements unenforceable.

Have you suffered from an Unfair Credit Card or loan Agreement?

The Author is a huge fan of Write off Unfair Credit Card and Loan Debts

Fighting unfair and illegal consumer credit agreements Blog.



Baby Sleep Tonight