by guest writer Robin Williams

Have you ever wondered that debt helps too? This may appear absurd but if you delve deep into the brighter side of debts, you will discover how debt can help you to revamp your finances. This is what majority of the debtors do; they reorganize their finances when they are in debt. In other words, you learn from your mistakes. Had you not been in debt, you wouldn’t have realized that the way you are handling your finances is wrong. So, this is how debt helps you.

Once you discover that your way of handling your cash is not giving you much savings, you will try to change your financial habits. Debts are common. Not only that they don’t last forever. They are a passing phase and once you learn it the hard way, you are spared.

If you are anticipating a financial crisis in near future or if you have already missed your bill payments, talk to a financial expert or a credit counselor about your finances. The credit counselor will assess your debts, income and other expenses and suggest ways that can help you to get out of debt. Some of the debt help options include the following –

•    Debt consolidation
•    Debt management or DMP
•    Debt settlement
•    Self- repayment plan
•    Bankruptcy

An example of how debt helps:

Let’s say, you are using your credit cards randomly. To add to the woes you have not been regular with your payments. You receive a demand letter from a collection agency one fine day. This has been continuing for quite sometime. Meanwhile you are juggling your finances as your income isn’t enough to meet all your financial obligations, you borrow from Peter to pay off Paul. So, you are in a debt trap. Unable to live with your debt burden, you approach a credit counselor who suggests that debt settlement may help. If not you may have to file bankruptcy. The credit counselor suggests how you should restrict your spending habits and what needs to be done to better your financial stability.

You were able to find out your financial mistakes because falling in debt helps you to realize and recognize your financial drawbacks.

Have you seen the movie? A typical Hollywood entertainment piece that depicts a young woman living in New York City who loves shopping and fashion so much that the mannequins actually speak to her and beckon her to buy more than she can afford. Today’s marketing tools are sometimes just as seductive enticing people to buy things that they both don’t need and can’t afford. After she maxes out every credit card and has no money to pay her bills, she ironically gets a job as a columnist for a money magazine.

The movie had all the right elements; the love story, the conflict, and the villain. The bad guy is a tenacious and nasty bill collector who calls daily and is stalking the poor girl trying to get her to pay her debt. For anyone who is actually living that nightmare, the movie would not be very entertaining but it did highlight the harsh realities of being in debt.

Of course, it had a “Happy Hollywood” ending where the girl was able to get herself out of debt with no help but that’s not how is usually works in the real world. In the real world, there is no easy way out but fortunately First Rate Debt Solutions has real solutions that do work for real people. Debt Settlement or Debt Management is the most effective way to get out of debt, escape the nasty bill collectors and avoid bankruptcy. Call us today for details on what we can do for you. 877-332-8730

If you're one of the thousands of Americans struggling just to make their minimum payments on their credit cards each month, I have bad news.   Citibank, MBNA, and Bank of America recently announced that they are raising the minimum monthly payment from 2% to 4% of the outstanding balance.  That's double and it may be just enough to send tens of thousands more Americans into serious delinquency.  Other major banks are expected to follow suit as well.

So what can you do?  The first thing is to figure out if you can continue to make your payments.  If not, you need to address the situation immediately.  The longer you wait, the more the interest, late fees, and balance will grow.

If you have savings, you may want to take some to pay down the balances but if you are truly cash-strapped and can't make ends meet then a debt settlement or debt management program may be in order.  The key to any effective debt program is to be qualified by an expert and then to get into the program before your debt escalates to the point of bankruptcy.

At First Rate Debt Solutions, we have trained experts who will analyze your situation and customize a program to meet your financial goals and budget.  Times are tough but there are answers out there for people in trouble.  If you need help, give us a call.  Toll Free (877) 332-8730.

According to recent statistics, there were 984 million bank-issued Visa and MasterCard credit card and debit card accounts in the United States in 2006.  If you add in American Express and Discover, that number jumps to 1.5 Billion cards in use which represents about 73.0 percent of U.S. families.

With these types of numbers, it’s no wonder that America is a nation in debt.  Credit cards have become a habit and millions of Americans are addicted. The total U.S. consumer revolving debt was $963.5 billion in December 2008 and about 98 percent of that debt was credit card debt.

These numbers can be staggering and so are the implications.  The average consumer has a total of 13 debt obligations. These include credit cards/unsecured debt (such as department store charge cards, gas cards, and bank cards) and installment loans (auto loans, mortgage loans, student loans, etc.).  Of these 13 credit obligations, nine are likely to be credit cards.

Nearly one in every three consumer purchases in the United States is made with a payment card, including credit, debit and prepaid products.  Credit and debit cards provide a great convenience but when finances are tight, 59 percent of people surveyed said they would pay their credit card bills last.

About one in six families with credit card debt pays only the minimum amount due every month and 28 percent of those surveyed say their ability to pay off their credit card balance has become more difficult in the past year.

Where all of this gets really scary is in the interest rates and fees and how quickly they add up.  Most credit cards have an interest rate of at least 12.5%, many have annual fees, and almost all have late and over the limit fees.  If you can’t pay your bill in full and on-time, these fees can substantially alter the cost of whatever you purchased on the card.  Since 55% of all consumers keep a balance on their card, that’s a lot of dough.

If you are one of the many Americans that is finding it harder and hard to keep up with your credit card debt, there are solutions.  Don't let mounting debt destroy your financial future.   First Rate Debt Solutions has answers and we can help.

(data source: creditcards.com)

This is the time of year most people make their new year's resolutions.  Have you made your and if so, how are you doing so far?  Are you on track or already giving up?

The top resolutions each year are to lose weight, exercise more, save more money and/or spend less money, get out of debt, get a new job (or in this economy, get a job), or spend more time with family.

Many never actually accomplish their goal for a variety of reasons whether it was unrealistic, they didn't take it seriously, or they just needed help.  If you make too many or too difficult of a resolution, you are setting yourself up for failure.

If on the other hand, you make a resolution, take it seriously and get help, you can be successful.

If your goal this year is to get out of debt, then we can help.  With the continued stress in the economy, more and more Americans are finding themselves deeply in debt for the first time in their lives.  And most are un-prepared or unaware of their options.  That's why an experienced and qualified debt consultant can make all the difference in the world if you are serious about getting out of debt and staying out.

Visit our website for important information and recent settlements to learn more about how you can make 2009 the year to become debt free!

Consumer Credit Counseling companies were first established in the 1980’s when credit card companies began to notice that many people were having problems making their minimum monthly payments. At that time, if a consumer couldn’t afford to pay their entire debt, there were very few options to get financial relief (except for filing bankruptcy) so the credit card companies helped to establish Consumer Credit Counseling (CCC) organizations in order to recover their money from people struggling to make ends meet. Acting as separate organizations from the creditors, they were able to put on a friendly face and claim they were established to help the consumer.

You will find CCC companies labeled as Consumer Credit Counseling, Debt Consolidation, Debt management or “Make Only One Payment” Companies. Many also claim to be non-profit although they all charge you a fee for their service. Besides the nonprofit or not-for-profit Consumer Credit Counseling companies there are also companies that call themselves Debt Consolidation Companies because of the bad reputation of some consumer credit counseling companies. This can be a little misleading because these companies do not make consolidation loans. Consolidation, in this case, refers to the act of “consolidating” your many payments into the one payment you pay to their company—just like any other CCC company.

The main function of Consumer Credit Counseling is to have you consolidate your debts and pay one payment to them that they then pay to your creditors. A good Consumer Credit Counseling Company will help you by negotiating a lower interest rate and possibly getting late fees waived. In the end though because of their affiliation with the credit card companies, they do not negotiate your balance and most of what they do is for the benefit of the creditor, not the consumer.

So basically these CCC organizations work for the creditors—not you—just like a collection company. In addition to what the creditors pay the CCC company, they charge you a monthly service fee for dispersing your money to your creditors. The creditors pay a commission to the CCC for successfully collecting the debt.

The main pitfall in CCC programs and the main reason for failure in this type of program is that your monthly payments are usually going to be higher than your original minimum monthly payments AND you are going to have to make that payment for many (4-6) years. If you are already having problems making your minimum monthly payments now, how are you going to afford a higher amount over a period of many years? Approximately 65–70% of the people who enter a CCC program are unsuccessful and drop out before the program is complete.

This type of program can be effective for people who want get out of debt and can afford to make slightly higher monthly payments for the next several years and those who do not have too much debt. If you can continue to pay the higher monthly payments and do not foresee future financial problems, this is an O.K. way to go. If you are currently struggling to make minimum monthly payments, however, the odds are not good that you will not succeed using this method.

One of the biggest misconceptions is that enrolling in a CCC program will protect your credit. But any type of debt management/consolidation/settlement/repair program is going to have an impact on your credit. There is no way around it except to make all of your payments in full and on time. When you are accepted into a CCC program your creditors will close your accounts and report this to the credit bureaus. Additionally, nearly all creditors will report to the credit bureaus that you have entered into a “hardship” program and need help. Although this is far less damaging than bankruptcy, it definitely does impact your credit rating—don’t let anyone tell you otherwise!