Debt Relief Some Basic Information

In todays world of declining property values, high unemployment

, increasing tuition costs and medical insurance that rarely covers 100 percent of expenses, it is all too common for many of us to be struggling with debt. A recent article by Federal Reserve Bank of Cleveland indicated that installment debt has risen from about 13 percent of disposable income in 1989 to 25 percent of disposable income in 2012. CreditNowUSA is a company specializing in debt relief, and the following information is based on their specialized knowledge:

1. How can debt consolidation help?

Borrowers who are overwhelmed by debt may declare bankruptcy or simply discontinue making payments. As a result, many creditors will be willing to work with debtors to settle for payments that the debtor can afford to make. In this way lenders can recoup some of the amount owed them. This also helps the debtor avoid bankruptcy, which can be a costly process with long term affects.

2. How can burdensome tax debt be alleviated?

With IRS Tax Settlement taxpayers may be given the opportunity to settle their tax debt for a percentage of the total amount. It depends on the circumstances of the taxpayer and may be negotiable. The IRS Offer In Compromise gives taxpayers a once in a lifetime opportunity to settle the debt for a small portion of the original amount. IRS offers a payment plan, which may be enough to get a taxpayer back on track.

3. What can be done about incessant harassment by debt collectors?

The Fair Debt Collection Act regulates how debt collectors are allowed to contact you. They are not allowed to call you at work if you tell them not to or to call you between the hours of 9 PM and 8 AM. Nor are they permitted to contact other people about you except to inquire about your contact information. Bill collectors are required to notify you in writing about the details of your delinquent account. They are not allowed to harass you; however, they can sue you. If you receive a court summons you should respond immediately. As a result of court action, your wages may be garnished.

4. Is bankruptcy a solution?

Sometimes bankruptcy is the best solution because it can nullify most of your debts, but it can have long term effects on your credit. Bankruptcy filing fees can be substantial as well. It is a serious decision to make and expert assistance might be an import asset.

For more information, go to Debt Relief at http://www.creditnowusa.com/Debt-Relief

by: Money Lender

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