Achieve Security Blog

Steps to staying out of credit card debt over the holidays

2011-12-01T08:46:00.001-08:00

Steps to staying out of credit card debt over theholidays

While all of us wish to spread the holiday cheer, in lightof the last Holiday Shopping Poll from Consumer Reports, it shows 13.6 millionAmericans are still juggling last years credit card debt from the gift givingseason.

Set a Christmas Budget and stick to it.

Look at that Christmas listrealistically; mark off people that you feel obligated to buy for like yourtrash man or your Aunt Sue’s neighbor, unless they’re an integral part of your dayto day life. If you do feel compelled toacknowledge them, a nice card or plate of homemade cookies will probably do thetrick.

Shop with Cash

Put away theplastic, most have rates that rise over the holiday season. Cash is King and so is layaway, use it toyour advantage. "It'seasier to stick to a budget if you only pay with cash," says AndreaWoroch, consumer savings expert for The Frugals, a network of savings websitesthat includes CouponSherpa.com. "Even debit cards make it easy tooverspend, a fact that likely won't hit you until the monthly statementarrives. Having to part with actual greenbacks makes it much more real."

Save with Christmas in mind.

While setting that Christmas budget (realistic goal) startthinking about how you’re going to get there. Curb the eating out, the take out, the movies on date night, etc. If you start this type of thinking 3 or 4months prior to the holidays, you will have saved up quite a bit in yourChristmas fund.

Shop Late

Yourcash goes further. Three-quarters of Christmas shoppers will be in the storesnext week. A high percentage say they’ll wait until December 24 to finish up.They’re looking for prices marked “70 percent off.” Think early, shop late.

Alternatives to store bought gifts

Howmany fruit cakes can one shelf hold? Start thinking of alternatives, such as a nice crocheted scarf, ahandmade book mark, a photo montage, pillows, etc. These gifts often mean more and stay aroundlonger than a hastily purchased gift card.

Ifyou have found yourself in credit card debt that tips cannot fix and wish tolive a life debt free, give us a call and ask us how we can help.

We can help with Tax Settlement.

2011-09-26T10:30:00.001-07:00

What Is An IRS Tax Settlement?

A tax settlement is when a taxpayer settles their tax liabilities throughone of the IRS programs/filings. The IRS offers settlements to taxpayers thatare struggling with their tax debts or have valid reasons to abate theirpenalties. The IRS offers several different options for taxpayers to settletheir taxes owed. The main factor the IRS takes into consideration whendetermining if the taxpayer will qualify for a tax settlement is theirfinancial situation. The tax settlement that a taxpayer qualifies for isdependent upon their unique financial situation. The IRS prefers individuals topay their taxes owed in full, but they will make exceptions for certaincircumstances.

How an IRS Settlement Works

The IRS will allow a taxpayer to either negotiate a tax settlement for lessthan the total amount owed or come to an agreement on another method for theIRS to collect taxes owed over time. For either of these situations thetaxpayer must meet the qualifications of one of the tax settlement programs setforth by the IRS. The taxpayer will first have to determine which type of taxsettlement they would like to apply for and then submit the appropriate formsto the IRS for review before making a decision. A taxpayer can either fill outthe information themselves or they can have a designated tax professional makethe filing on their behalf. Once a settlement has been reached by both parties,the taxpayer will be considered good standing with the IRS for the taxyear/years that the settlement covered (unless the taxpayer defaults or doesn'thold up to all the terms of the agreement).

How to Settle Taxes Owed

In order to make a settlement or agreement over your taxes, you first needto make sure you are in full compliance with your tax filings and be sure to file any unfiled taxreturns. If you did not file and the IRS has filed for you, it is highlysuggested you use a taxprofessional to file an amended returnto decrease the amount of taxes owed (this is because the IRS does not give thetaxpayer the benefit of the doubt on anything when they file for an individualand it is highly likely that they owe far less). Once you have filed and knowhow much you owe, you can review the tax settlement options and see whatsettlement method would qualify for (if any at all). Below is a list ofdifferent tax settlements offered by the IRS.

Settling Taxes for Less

· Offer inCompromise

An offer in compromise is the most common settlement method individualsthink about when it comes to settling with the IRS. Not only is this the mostthought of method, but also the hardest one to qualify for. With an offer incompromise you will be required to make an offer to the IRS of an amount ofmoney that you can afford to pay (payment plans available) and the IRS must bewilling to accept that amount of money in order to wipe the remaining liabilityclean. When making the offer you will have to convince the IRS that the amountyou offer them is equal to or greater than the amount that they would be ableto collect from you through forced collections without forcing you into financialhardship.

· PartialPayment Installment Agreement

A partial payment installment agreement allows the taxpayer to enter into anagreement with the IRS to pay back the taxes owed over a specified time andthis amount can be less than the total amount initially owed to the IRS. Thisoption is typically available to those individuals that cannot meet the minimumpayment amount required with the normal installmentagreement.

· Penalty Abatement

Penalty abatement allows the taxpayer to eliminate all or part of penaltiesowed. Penalty abatement does not eliminate any of the base amount of tax owed,just penalties added onto that initial amount. This is one of the easier waysto settle taxes owed for less. The IRS uses penalties as a way to bullytaxpayers and scaring them into paying sooner. The IRS does realize that thereare times that the taxpayer has a legitimate reason for not paying or filing ontime and they have created penalty abatement for this reason.

When You Can't Settle Taxes For Less

· InstallmentAgreement

An installment agreement is the most common method for individuals to payback IRS taxes owed if they cannot pay in full. Under this form of agreementthe taxpayer is allowed to pay back the taxes they owe in monthly payments ifthey can pay off the entire amount owed in a three year period. This agreementis fairly easy to obtain if an amount of $25,000 or less is owed, if greater, atax professional will be needed for assistance.

· UncollectibleStatus / FinancialHardship

This form of agreement puts the taxpayer off the hook temporarily untiltheir financial situation has improved enough for the IRS to begin takingcollection actions against them again.

Important Tax Settlement Notes

An important thing to know about the IRS is that they will continue toenforce collections on individuals even if they cannot pay. Even if thesecollections cause extreme financial hardship on the taxpayer the IRS will notstop until the taxpayer proves to the IRS that they cannot pay. The IRS is avery automated machine and collections can only be stopped by tax filings. TheIRS does not intend to put individuals in severe financial hardship, theirsystem just has no way of knowing without receiving a tax settlement filing.The IRS is very complex and it is advised to use a taxsettlement professional when attempting to make a settlement with the IRS.Most tax professionals will be able to analyze your financial situation andknow if you are a likely candidate for the settlement before any filings aredone.

http://www.backtaxeshelp.com/tax-settlement.html

7 Phone Calls That Will Save You Money

2011-09-26T10:05:00.000-07:00

Shopping online is undoubtedly convenient, but there are times when pickingup the phone can save you some cash or, at the very least, score you a niceupgrade.
"Having that human element really helps," says Laura Oliver, adeal expert who runs AFrugalChick.comand who has scored plenty of deals just by making a phone call. "If youcall and it's not working, hang up and call right back," she advises."The phone lines are on a queue. You've got 15 to 20 other people you cantry."
She also points out it doesn't have to be you who does the haggling for abetter price.
"You probably have someone in your house that's your bestnegotiator," Oliver says, advising consumers to let that person make thecall.

Negotiate a Lower Credit Card APR
For people with average-to-good credit, the annual percentage ratesassociated with a credit card aren't necessarily set in stone.
"Call your credit card company and say "Card X just sent me anoffer for a card with 0% APR for a year and then a fixed rate of only 12%,which is much lower than the rate I'm currently paying you," says DerrickKinney, a financial adviser who specializes in helping families.
He says you should ask your current issuer if they can match the competingrate and, if not, it makes financial switch to transfer your current balance totake advantage of their competitor's better offer.
"The fear of losing your business will usually make them match theoffer," Kinney says.

Call Your Cable Provider
Similarly, Oliver suggests calling up your cable company to ask if they'llmatch a lower rate being offered by a local competitor.
"These providers are having a hard time in the recession," shesays, and they are not alone.
She says this tactic can be used on any provider, such as a home phonecompany or newspaper subscription service, which are known to offer 90-daytrial services that don't immediately lock you into a contract.
Those who live areas with more than one cable provider should check out thisstep-by-step guide to bargain for better cable.

Get a Nicer Rental Car
Oliver suggests booking the cheapest rental car a company has to offeronline and then calling up the bricks-and-mortar store where you will pick itup to see if they'll give you an upgrade.
"Sometimes, [store clerks] will give upgrades on the vehicle or offer aspecial discount that's not featured on the website because it's reserved forwalk-ins," she says.

Inquire About Hotel Deals
Similarly, Oliver says that travelers can call a hotel's front desk a day ortwo before checking in to see if there are any rooms you can upgrade to forfree. She says this is especially effective when you book directly through thehotel's website.

Talk to Your Retailer About a Refund
Just a day after MainStreet Staff Reporter Seth Fiegerman purchased a jacketfrom Banana Republic, fellow staff writer Matt Brownell found out the retailerwas offering 30% off on all merchandise sold on its website. Fiegerman was ableto get the store to retroactively apply the deal to his purchase simply bycalling the retailer's customer service hotline and asking them to.
So anyone who thinks they've just missed out on a deal might be able to getin on the savings with one simple phone call.

Shop for a Car Over the Phone
Car dealers are known to keep customers inside dealerships for long periodsof time in an effort to get them to commit to a purchase price. To avoid makinga bad deal, car experts suggest negotiating over the phone or online.
"[Dealers] are very good at holding you hostage and not letting you gowithout purchasing the vehicle," Phil Reed, senior consumer advice editorfor Edmunds.com, told MainStreet in May. "You need to be able to get in andout safely without committing."
That's not the only way to save money at the dealership.

Get a Car Insurance Agent to Come Clean
You should also call your car insurance agent to inquire about whether theyare any discounts available that you aren't taking advantage of. "Somecommonly overlooked discounts include programs that allow teens with high GPAsto save and programs that offer discounts to anyone who takes a defensivedriving course," Merrick says."Since it's cheaper for them to give you a discount than lose yourbusiness, most agents will tell you about the discounts."
Conversely, you can find out about one or two of the little things in lifethat can send your insurance shooting in the opposite direction in thisMainStreet roundup of small reasons for big insurance hikes.

http://financiallyfit.yahoo.com/finance/article-113527-11073-1-8-phone-calls-that-will-save-you-money?ywaad=ad0035&nc

New Blog Post

2010-09-21T13:13:00.001-07:00

Debt Settlement Negotiation

Debt settlement negotiation is a process that involves negotiating with creditors to accept less than the full amount owed on a past due account. This consumer debt relief solution is effective for helping people to pay off unsecured debt and regain control of their finances. Achieve Security offers a program to help you settle your debts and the most competitive fees in the industry.

The debt settlement negotiation process begins with a free initial consultation with one of our Debt Consultants. Your consultant will discuss your financial situation and determine the best course of action in your case. We will work with you to design a personalized plan for negotiation and savings. Debt settlement is different from debt consolidation, where your bills are combined into one loan with larger monthly payments.

Debt settlement involves reducing your debt and creating a savings plan with monthly payments that are often lower than your minimum credit card payments. The savings account is controlled by you and funds are dispersed at your request to pay off settlements as agreements with your creditors are reached.

In most cases, creditors agree to debt settlement negotiation because they understand that the balance is unsecured and if you file bankruptcy, they will likely get no money. However, when an agreement is reached, you will need to have the funds to pay off the remaining balance. Although each situation is different, we are often able to negotiate settlements that are significantly lower than the full balance, saving our customers thousands.

Blog post

2010-09-09T14:09:00.001-07:00

What Is The FTC And How Can They Help Me With Creditor Calls?

The Federal Trade Commission (F.T.C.) is the only federal agency in this country that has the ability to handle consumer protection issues on a federal level that involves the pursuit of agencies who engage in unfair and deceptive acts of business against consumers. Although established in 1938 for the sole purpose of regulating anti-trust violations, the Federal Trade Commission has evolved over the years to now establish and administer a wide variety of consumer protection services performed by the Bureaus of Consumer Protection.

So what does this mean for you?

What we fail to realize as consumers are the assortment of laws established by the Federal Trade Commission and the ability of these laws to help assist us against creditors. When a creditor calls you before 7:00 am, is it legal? Everything you need to know about what regulates the creditors who may be calling you can be found at www.ftc.gov. If you feel that your rights have been violated, we urge you to contact the Federal Trade Commission to file a formal complaint at https://www.ftccomplaintassistant.gov.

If you believe in any way that a debt which is now being collected by a 3^rd party debt collector is either not yours, not accurate, or unrecognizable, it would be in your best interest to take advantage of the opportunity afforded to you under this law by doing any of the following;

Requesting copies of the original signature on applications for the alleged credit
Requesting proof of each and every charge made since alleged credit was issued to include any periodic change in interest rate and/or fees
Requesting proof of signature of receipts of alleged purchases made on the account since alleged credit was issued

Demanding validation is a right that is afforded to everyone; for information regarding this along with many other laws pertaining to debt collection, please visit http://www.ftc.gov/ for more information.

2010-08-16T14:16:00.001-07:00

Bracing for a Double Dip Recession

More and more economist’s are of the mind set that we are in for a double dip recession.

In addition, two thirds of Americans feel the economy has not hit bottom. These feelings are largely due to a housing market that still continues to fall along with the unemployment still running high. Many consumers are bracing for more troubles. Home owners no longer have the cushion they once enjoyed with equity in their homes that allowed them to borrow to bridge the gaps. As many of our clients have already realized, one of the first steps to bracing for times that are surely ahead, is to eliminate their personal debt.

Part of that process is going to require that spending habits change for many Americans. Achieve Security’s program allows you help lower your debt obligations and be better prepared for the possibility of a double dip recession. The idea is to get rid of your debt as fast as you can. In many cases, if you have the ability to pay a settlement it is best to take advantage of the pay off as quickly as you can. This not only saves you money immediately, but allows for further savings because you are no longer sending in interest payments each month to the banks. This practice of saving as much as you can for settlement payoffs, coupled with an honest assessment of you spending habits will better prepare you for survival in these tough economic times. Read more about the possibility of a double dip recession and what to look for from the experts.

http://finance.yahoo.com/career-work/article/110344/what-the-double-dip-recession-will-look-like

Achieve Security Review 2010

2010-07-27T13:31:00.000-07:00

Recently Achieve Security found a review of our company posted by one of our competitors. The site is debtfreedestiny.com. This site is run by Franklin Debt relief. Franklin Debt Relief is a Debt settlement company that has employed some interesting marketing strategies. What Achieve Security has been disappointed in is their review is out dated. They show our BBB rating at a C+ which now is an A-. We would like you to look at Achieve Security's updated review that was originally posted by Franklin Debt Relief on their proxy site, debtfreedestiny.com

Achieve Security offers debt settlement services to help people reduce and eliminate high interest credit card debt. Helping thousands of people get out of debt, the founder, a former CPA for twenty-five years has a solid background in finance and brings with his experience an understanding of debt and the negative consequences that come with this financial burden.

Here are some quick facts about Achieve Security:
Company Founded: May 2004, BBB file opened on July 29, 2004

UPDATED INFORMATION

Years In Business: 6

BBB Rating: A-

BBB Complaints: 9 total complaints processed in the last 36 months with 2 complaints processed in the past year.

Escrow Available: optional

Source of Funds: client savings

Fee Structure: Flat fee of 15% no Monthly maintenance fee

Avg. % Settlement of Amount Owed: industry standard is 40%-60% of current total debt, however Achieve Security stresses there is no guarantee on settlement amounts.

Refund Policy: retainer fee and monthly service fees are nonrefundable; program fees may be refundable if Achieve Security is unable to negotiate principal reduction or terms reducing final repayment.

Minimum Debt Required: $10,000 unsecured debt with $500 minimum per creditor. They may accept lower debt amounts based on individual circumstances.

How credit card debt repayment can be made simpler?

2010-02-15T10:00:00.001-08:00

Author: Robin Williams

A credit card is the simplest type of credit available to people. Due to this privilege, you frequently go on spending more than what you earn by using your credit cards. You don’t rightly evaluate your ability to repay debts. Therefore, you become overstrained with a huge amount of credit card debt. When you’re going through these circumstances, you should use a credit card payment calculator to work out your credit card payments. With the help of this calculator, you can easily calculate the following figures:

* How long it would take to pay off the entire card balance

* How much interest you need to pay for your card balances

* How much you need to pay every month for your credit cards

A credit card payment calculator is an outstanding tool to manage your credit card debt and it makes your credit card payment process simpler. It helps you find out particular details about your credit card balances and keep tabs on your payments. A credit card payment calculator can also help you make the essential adjustments in your budget so that you can pay off your debts more easily.

Inputs needed by a credit card payment calculator:

A credit card payment calculator usually requires the following inputs:

* Your credit card balance – the amount that you owe on your card

* Interest rate on your credit card (%)

* Minimum monthly payment or the amount you intend to pay each month

* Number of months in which you wish to pay off your credit cards

However, this calculator takes for granted that the interest rate stays unchanged throughout the repayment term.

Calculations with a credit card payment calculator:

Collect your credit card statements and find out how much you owe for all your cards. If you continue making the minimum payments, the calculator can demonstrate the time needed to eliminate your credit card debt. If you plan to pay off your balances within a stipulated time, this user-friendly tool would help you know how much you have to pay every month to attain that goal. If you make some additional payments on your cards every month, it would make you debt free faster. A credit card debt payment calculator helps you understand this better. You can find out that a lower interest rate can help you achieve debt freedom sooner and save you money. This tool helps you calculate the interest costs on your cards as well.

Testimonials/Great Settlements

2010-01-21T08:33:00.001-08:00

Each Month In this section we will bring to you what some of our graduating clients are saying about the program and our services. There are parts of the program that can be very tough at times but if you stick with the plan we set for you it will work

Here is an email we received from one of our graduates in December

I had fallen behind several months on all my credit cards and began to look for help. Achieve was very willing to talk with me and explain my options to correct my credit and clear my debt in a manner I was able to handle. Everyone that I have worked with thru this process has been respectful and easy to work with. I am finally debt free and have cleared 4 accounts, at the rates of 30%, 34%, 38% and 39% of my balances. I could not have done this without your help. Thanks Achieve!

client in TX

Total debt settled in December 2009

$841,562.17

settled for

$316,699.62

That is 37.6% on average

Here are some of our top settlements for the month of September as well.

Bank of America Balance $29,003.34 Settlement $5,800.00 (19%) CA client

Bank of America Balance $3,490.32 Settlement $1,226.00 (35%) TX client

HSBC Balance $2,262.28 Settlement $1,131.14 (50%) MA client

Chase Balance $3,276.88 Settlement $1,475.00 (45%) TX client

Lowes Balance $6,868.97 Settlement $2,060.69 (30%) CA client

Bank of America Balance $2,462.78 Settlement $739.00 (30%) CA client

Chase Balance $12,146.59 Settlement $3,036.00 (25%) CA client

Best Buy Balance $1,571.73 Settlements $ 628.00 (40%) NV client

Bank of America Balance $20,595.80 Settlement $6384.69 (31%) CA client

Home Depot Balance $1,721.67 Settlement $700.00 (40%) TX Client

Honda Finance Balance $3,074.26 Settlement $615.00 (20%) FL client

JC Penney Balance $1,807.03 Settlement $903.37 (50%) WA client

Several Lazy Ways to Save Money

2009-10-30T06:58:00.000-07:00

Several Lazy Ways to Save Money

While the media can't decide if the recession is nearing its end or not, we do know that there hasn't been a tremendous surge in wages, job creation or the stock market. Consequently, most of us are staying pretty conservative on our spending. Here are a few relatively simple ways to keep an eye on your pennies while you're waiting for that brighter economic future to arrive.
1. Schedule automatic payments. Have (at least) your fixed monthly bills paid automatically to avoid missing a payment and having to fork over extra money for late fees and/or interest. You can set up auto pay features through your bank's online bill paying service or by arranging it directly with the company or service provider.
2. Eat your groceries. Did you know that Americans regularly throw away nearly 15% of the food they buy at the grocery store each year? That can add up to hundreds or, depending on your supermarket budget, thousands of dollars each year. Save money by actually eating what you buy. Not sure how? Bypass the bookstore and borrow a cookbook from the library!

3. Bundle services. If you're paying different vendors for similar services you may be overpaying. Call your communications providers to see what price you'll be quoted if you switch and bundle your internet, phone and cable TV services.
4. Mark your calendar. Whenever you rent something - library books, videos, etc. – mark it on your calendar and save money by avoiding those quickly mounting late fees. Many stores and libraries also now offer email reminders to help the constantly harried so sign up for the extra help!

5. File your taxes on time. Or if you need to file an extension at least pay what you owe on the due date. You'll avoid annoying notices from the IRS and, more importantly, save on penalties, fees and interest.

6. Roll it over. If you're switching jobs and you can't leave your 401(k) invested with your current company, roll your 401(k) into either your new employer's 401(k) or an IRA within the 60-day window instead of withdrawing the money. By doing so you'll keep the money invested - and earning interest - and avoid those nasty taxes as well as the additional 10% penalty.

7. Use your privileges. Are you an AAA member? Do you belong to the AARP? What about your local credit union? Check organizations you have memberships with to see if they offer buying privileges or discounts.

8. Rent instead of buy. You might be excited to expand your driveway but don't let your enthusiasm overtake good sense. Hold off on buying that jackhammer and think before you spend on big-ticket items or items that you'll use once or infrequently (like movies and books).

9. Buy instead of rent. Don't pay the exorbitantly high prices charged by rent-a-center type stores for items you'll use regularly and keep long-term like computers, furniture and appliances.

10. Just say no. To the extended warranty that is. They hardly ever make financial sense. Weigh the repair or replacement cost (and if you would even need or want to repair or replace it down the road) against the cost of the warranty and graciously pass when offered.

11. Have the awkward conversation. Americans average more than $750 yearly on holiday gifts and that's probably much more than most would like to spend. If your gift-giving is costing you more than you can realistically afford there's a good chance it’s more than your relatives can afford (or would like to spend) as well. Take the plunge and broach the subject. Offer a more reasonable alternative (say, limit giving to children or put a dollar amount on gifts per person). More than likely your relatives will be grateful SOMEONE finally raised the subject and you’ll save money in the process.

12. Eat at home. If the idea of cooking for yourself seems like too much work at least opt for take-out instead of dining out - you'll save on the tip, the alcohol and most likely the cost for appetizers or dessert.

13. Balance your checkbook. It might take a few minutes but it's something you should be doing anyway and it can pay off huge dividends by helping you avoid bouncing a check and incurring steep overdraft fees (not to mention a little embarrassment)!

14. Stick with your bank. When withdrawing cash drive or walk the extra minute it takes to use your bank's ATM and avoid the fee that could come with another bank's machine. Better yet - switch to a bank that doesn't charge fees!

15. Use your TV. If you're paying for cable why not use all of it - and save some money in the process? Cancel the video membership and watch movies through cable movie packages you're already paying for or check out your free "on demand" shows. Drop the gym membership and work out at home to channels like FitTV, and bag the magazine subscriptions and watch the same shows (like Martha Stewart) on TV instead.

16. Quit those bad habits. Smoking, overeating and drinking are costly habits to maintain. Okay - this is the "lazy" way to save, not necessarily the easy way. But you can save boatloads of money in two ways by saying sayonara to your favorite vices: (1) You'll save money by cutting out on the regular spending it's costing you, and (2) you'll probably save on insurance premiums and long-term health costs. It's the ultimate win-win.

Money Saving Tips

2009-08-26T13:21:00.000-07:00

Holiday Spending Habits

The holiday season is just around the corner and you may be thinking about all the holiday costs. We agree that Christmas should be a wonderful time of year and can be if you keep spending under control.

Many people sacrifice quite a bit to supply Christmas gifts for loved ones. A recent article on British news site “24/7” stated that the average Britain spends $351 dollars per family for holiday gifts. In contrast, American families spend an average $859 per holiday according to the American Research Group.

Are Americans too caught up in “keeping up with the Joneses”? It is a good question, especially when considering the credit card debt that builds after each Christmas season.

While many may make a point of saving for a car or for their child's education, few people plan ahead for their annual holiday spending. If you are paying down debt, it may be time to cut back on the Christmas spending. You don’t have to skip the holiday, just be more like the British and spend less. Or you could decide to make a gift or give a gift of your time to a family member rather than spending cash.

But we understand that holiday cash requirements can arise and times get a little tougher around the holidays. Therefore, Achieve Security has programs designed to help get you through the seasonal crunch.

Too often, we see clients drop out of their debt program entirely without discussing their options. We would be happy to discuss reducing your payments during November and December. But remember, any decrease in payments will increase the time necessary to free you from debt. Still, it is better to stay with your program through the holidays so that next year can truly be a happier New Year!

Please call our client services department at any time for more details.

Debt to Income Ration as Important as Credit Score

2009-08-17T13:37:00.000-07:00

By now you know your three-digit credit score is a very important number in your financial life, but did you know there's also a two-digit number that can be just as significant?
It's your debt-to-income ratio, and it can shed a light on, and help you better understand, your true financial picture.
The good news is, getting this number doesn't cost you a penny, and it can be calculated in just a few minutes at your kitchen table.
So, if you think getting insight into your financial life requires sifting through your retirement investments, reading through every fund prospectus and tallying your expenses to the penny, think again.
It's true that nitty-gritty details can make a difference, but you can get a fairly accurate understanding of your financial picture by spending just a minute or two calculating your debt-to-income ratio. By knowing the ratio -- and how to improve it -- you can increase your chances of getting a better mortgage, a better car loan and even better credit card rates.
DTI explainedYour debt-to-income ratio is exactly what it sounds like: the amount of debt you have in the form of mortgages, car loans, student loans and credit card debt, as compared to your overall income.
To calculate your overall debt-to-income ratio, sometimes known as a back-end ratio, add up all of your monthly debt obligations -- often called recurring debt -- including your mortgage (principal, interest, taxes, and insurance) and home equity loan payments, car loans, student loans, your minimum monthly payments on any credit card debt, and any other loans that you might have. Do not include expenses such as groceries, utilities and gas. Take this total and divide it by your gross monthly income from all sources. If you're not good at long division or don't have a calculator handy, go to Bankrate's calculator section to use our debt-to-income ratio calculator.
Note: Some lenders will exclude the mortgage payment from this equation, but they lower the ratio. The concept is the same: it measures your debt load in comparison to your income.
Let's say you and your spouse together earn $83,000 per year or $6,916 per month. Your total mortgage payment is $1,350, your car loans total $365, your minimum credit card payments are $250 and your student loans add up to $300. That equals a recurring debt of $2,265 a month. Divide the $2,265 by $6,916 and you'll find your DTI is 32.75 percent.
In general, you'll want to keep that number below 36 percent -- a threshold that loan officers and credit card issuers often use as a factor when they determine how much they're willing to lend you. "If you go higher than 36 percent, you are on a slippery slope," says Diane McCurdy, a Certified Financial Planner and author of "How Much Is Enough?" Lenders might give you money, she adds, "but they'll give you higher interest rates, and if anything goes awry, they'll sock it to you."
So why is that number so important? It's all about proportion, says Laura Russell, a certified financial counselor with GreenPath Debt Solutions. "You can be making a lot of money every month, but if you've got the debt to match it, that can be a problem," she says. "It's important not to overextend yourself." The higher your number, the riskier it is for lenders to offer you loans -- and the more they'll make you pay for them.
Finding leverageWhile debt-to-income ratios don't have the kind of buzz that credit scores do, they can play a key role in determining if you qualify for a loan and how much you can get. "Your debt-to-income ratio is one of the tools that banks will use to determine whether they'll lend you money for a mortgage, a car loan or a student loan," says Dave Hinnenkamp, CEO of KDV Wealth Management.

How does Debt Settlement hurt my credit?

2009-06-10T09:13:00.000-07:00

How Debt Settlement affects your credit depends on many factors. The primary factor has to do with how your credit rating is now.

If you have perfect credit, or even slow credit, Debt Settlement will derogatorily affect your credit. If however, you already have accounts that are over 4, 5 or 6 months past due, it may not affect your credit any worse than it already is.

When a revolving account becomes past due, typically over 180 days, the account is “written to profit and loss” by the creditor. This is lender lingo for what is also known as a “charged-off account” or “charge-off”. This profit and loss status or charge off status is reported to the 3 credit bureaus.

It doesn’t matter if the “charge off” occurred prior to enrolling into a settlement program or occurs after enrolling into the program, a charge off is a charge off no matter how you cut it.

The delinquent status and subsequent charge status will be reported on your credit file, in either case.

Creditors report monthly payment history using number – it is a little confusing because one credit bureau uses 1 as current and paid as agreed, while another uses 0 as paid as agree.

Depending on the bureau, the numbers used to report account payment history is commonly 1, 2, 3, 4, 5, and 9. A Charge off is reported on your credit file as a “9” on your credit file.

Over 60, 90, 120, 150 and 180days, charge-offs and written to profit and loss, are all considered derogatory credit remarks and will remain on your credit file for up to 7 years.

If all these next statements are true, then debt settlement may not be the right course for you:

1) Good credit is important to you

2) You have the means to pay off your debt in full by making required monthly minimum payments

3) You can afford the high interest charges associated with paying off unsecured debt.

While debt settlement will adversely affect your credit score, there are many factors that influence your overall credit. In addition to your credit fico score (a number between 350 and 900) another major factor in determining your credit worthiness is your debt to income ratio. If you are maxed out on your credit lines and your debt to income ratio is out of sight, you are most likely not bankable – therefore, in many cases, even having a great credit score is not as valuable as it may seem. Therefore, you must liquidate your debt in order to get your debt to income ratios in line. Either way, you may have credit problems. So the question might be, how do you want to resolve the problem?

Pay Off Debt Quickly

2009-03-20T06:48:00.000-07:00

Tax refunds from True Credit by Transunion
Waving a tax refund check at someone who has substantial credit card debt is like taking a Biggest Loser contestant to an all-you-can-eat buffet. It might seem like a form of torture, but all we can say is, resist spending that refund money and apply it toward your outstanding credit debt. Here’s why: you’ll get an immediate return of 18% or more, depending on what the interest rate is on your credit card. If you spend the money on a mortgage payment or home improvement instead and leave the credit debt to grow, you’ll be dogged by ever-increasing interest charges. Like the Biggest Loser contestant skipping the buffet, we recommend not even imagining what you could spend the refund check on.
Paying off debt is more critical this year
Sound like familiar tax season advice? Yes, but the 2009 tax season is different. Banks are tightening credit. Real estate values and mortgage rates might be dropping in some places, but that doesn’t mean credit is any easier to get. So besides paying off credit card balances to prevent having to pay interest charges, you just might be helping your credit score.. Remember, part of what credit bureaus use to determine your score is your debt-to-income ratio. The less available income you have going toward debt, the better for your credit score.
Let’s face it: paying down credit card debt isn’t fun. It’s much more immediately gratifying to spend the money, particularly on something you’ve wanted for a long time (for some of us, that might be a shopping spree in New York, for others it’s the ultimate man cave). Plus, it’s easier to justify spending that money if it’s a necessity rather than a “fun” purchase: a new stove, a new fan belt, new clothes for the kids.
The (almost) painless way to reduce debt
Now, we’re not telling you to let your kids go barefoot or drive in something that puts your life at risk. However, the sooner you pay off credit debt, the more flexibility you have to spend the money on other things. A refund check from Uncle Sam is an almost painless way of making a substantial inroad. (Yes, we feel the pain of not being able to spend the money, too.) Let’s say your outstanding credit balance is $13,000 and your refund is $800. How many months of paychecks would it take you to apply that much to your credit card balance? Isn’t it easier now to just wipe off a substantial percentage in one fell swoop? Won’t that make you feel better—at least as good as using it to take a vacation in Hawaii?
If images of Oahu are still hula dancing in your brain, do the numbers. Take a hard, cold look at what you still owe now and how much less you’ll have to pay back (and worry about interest on) once you apply that refund check to it. Feel better now?
Next Year: No Refund?A parting word: as much as you might look forward to your refund, for next year, consider adjusting your withholding to get a smaller refund (or none). Then you’ll have

How to Handle Abusive Debt Collectors

2009-03-02T09:29:00.000-08:00

The debt collection industry is one of the most complained-about industries to the Federal Trade Commission (FTC). From 1999 to 2001 ( the latest years available) the debt collection industry was the #1 complained about industry in the USA. This is because, despite the Fair Debt Collection Practices Act, which regulates debt collection activities and behavior, too many debt collectors are poorly trained and informed and work in an industry with a very high turn over rate.

Another reason debt collector’s use abusive and use illegal tactics against debtors is that most debt collectors know they will get away with their illegal tactics and behavior. These are some of the reasons why. (1) most consumers are uninformed about debt collections laws; (2) it’s hard to prove the behavior occurred and it’s hard to prosecute it; and (3) there is a legal loophole in the law that allows debt collection agencies who get into trouble to simply close their current operation and create a new company and identity, and thus avoid any existing injunctions and continue to operate in the same manner.

What should you do if a debt collector is intimidating or harassing you?

Achieve Security will try to help you in several ways that are effective. If you notify us, right away, who called and what number they called you from we will get the proper information over to them that should help slow the calls.

You can also program your phone to forward the calls to our creditor hot line at 630-536-5250. This will re-route all of the calls to us. If you do not have the call forwarding feature on your phone, call your local phone company to inquire about it. It normally is only a couple of dollars each month.

Ultimately you do have the power to make sure they do not tread upon your rights. If you want to follow through with making a complaint we will help you with that.

1) Find out if the collector is violating the FDCPA or your state’s laws. If so, send the collector a certified letter, return receipt requested, telling them that you believe they are in violation of the FDCPA or your state’s laws.
2) You can file a complaint online at http://www.ftc.gov/ The FTC is the body in charge or regulating debt collection agencies. They will sanction the collection agency if it receives enough complaints from consumers
3) You can also gather evidence by recording phone conversation with the debt collection agency. If you can prove the debt collector used illegal tactics you can sue for damages under the FDCPA
Achieve security provides you a copy of the FDCPA on our newsletter each month. You can also find other information on our blog each week at our home page http://www.achievesecurity.com/

Blog link is at the very bottom of the home page

Why would a creditor settle for less??

2009-02-27T13:34:00.000-08:00

Q. Why Would a Creditor Agree To Accept Less?

A: The primary reason a creditor will accept a settlement is because it is cost effective for the creditor, plain and simple. The degree of the discount (how much they will forgive) will vary case-by-case; therefore, a creditor will take into account many factors when determining their bottom line on accepting a settlement.

The primary factor creditors take into account is what percentage of the debt is likely to be collected in the future if they do not accept an offer now. The other factor creditors look at is what is the likelihood of collecting the full debt through normal collection activity or through the legal system.

Before they agree to any settlement, they will often take into account, debtor's income, the state they live in, the age of the debt, type of debt, debtor's assets, etc.

Professional negotiators will put a case together that will make the creditors understand that it is in their best interest to settle the debt and accept their offer.

Bankruptcy Vs Debt Settlement

2009-02-17T09:07:00.000-08:00

Q. Is Debt Settlement like Bankruptcy?

A: There is a major difference between Debt Settlement and Bankruptcy in many areas. Chapter 7 Bankruptcy remains on your credit report for a minimum of 10 years, whereas your charged-off accounts (the derogatory accounts) may remain on your credit file for only 7 years. Sometimes, these may be removed by a competent credit repair firm earlier. But be advised that most credit repair companies will just take your money and not deliver the promised results.

Never enter a Debt Settlement program, under the assumption that you will get the negative accounts removed in less than 7 years. To be safe, base your decision on the 7 year rule, then, if you are successful in removing negative accounts earlier, it will just be frosting on the cake.

Bankruptcy reporting on your credit file may also affect other areas of your life. Bankruptcy is a PUBLIC RECORD. Most counties report recent bankruptcies in the newspaper every month or every quarter. The is also a publication that most lenders subscribe to the provide them all the recent filings. Bankruptcies filings can be found at the county registry as it is considered public information.

So its important to understand that a bankruptcy is not easy to hide from and is considered public information.Most employers pull credit files on potential candidates. It is likely that the candidate without bankruptcy will have a better chance at the position. Additionally, some employers will not hire an individual with a bankruptcy on their credit file, period. Lastly, some positions will absolutely exclude a candidate with a bankruptcy. This is especially true for security jobs, high level management jobs, jobs at banks and financial institution and many other types of positions.

Bankruptcy can also cause issues with renting. Many landlords will not rent to individuals with a bankruptcy file. While, landlords cannot discriminate, they may legally not rent to someone based on their credit profile.

Bankruptcy can also exclude you from loans in the future. While its true that some creditors will grant credit after a person files bankruptcy, (although there is typically a waiting period) some creditors will not grant a loan to anyone with a bankruptcy on their credit file. Most loan applications ask if you have filed bankruptcy in the past 10 years, and some actually ask if you have ever filed for bankruptcy. Although the question – have you ever filed for bankruptcy may not be a lawful question, nonetheless, if you do not answer it, it will raise a red flag and if you answer “no” you will not be truthful.

No matter how you cut it, bankruptcy can affect many areas of your life and should be avoided at all cost. It should be your last resort. You should not file bankruptcy until all your options have been exhausted or at the very least explored, unless you have come to the decision that you have no other viable options.

What is the difference between a Debt Settlement Program and Debt Management Plan

2009-02-09T12:31:00.000-08:00

Q. What is the difference between a Debt Settlement Program and Debt Management Plan (DMP)?

A:Debt Management

In a debt consolidation programs, also known as a Debt Management Plan (DMP), you pay back 100% of your debt plus interest. Interest is commonly reduced to the 8% to 10% range. Additionally, Most Debt Management Companies have a monthly service fee tacked on to your monthly payment. Most people pay back about 130% of their debt over 5 to 6 year period. Debt Management has a moderate affect on a good credit file and will improve most poor credit files.

Debt Settlement

In a Debt Settlement program, most pay back an average of 40-50% of their total debt, including all agency fees as well as accruing fees and interest. This 40-50% figure is based on your starting balances.

In some cases, where a client has very challenging creditors combined with a good income, liquid assets, etc., Certified Debt Specialists may end up with what they consider to be a less than perfect result and pay back may be in the 60% range. This is still a substantial savings for most clients and proves to be an effective program.

Also, the contrary is true. Certified Debt Specialists often are able to obtain total settlements including fees in the 40% range when the factors are just right.

Most clients are able to liquidate their debt in 2 to 3 years vs. 5 to 6 years in the DMP and the monthly payment is commonly smaller than a Debt Management Payment for the same debt.

Debt Settlement has a major impact on good credit but will improve credit for people that are 6 months or more past due. This improvement in credit profile is caused by bringing outstanding balances down to a ZERO balance
From "International Association of Prefessional Debt Arbitrators"

Brief History of U.S Consumer Debt

2009-02-02T08:33:00.000-08:00

Here at Achieve we strive to give you ideas on how to change spending habits and learn to live without credit, and therefore without debt. There are not many people who can remember a time where borrowing money to buy what you want was not a normal part of life. But it was, at one time, how everybody operated. Consider the following brief history.

In 1856 former U.S Senator Thomas Morris observed in his assessment of America’s credit system, “in my opinion, we have too much, instead of too little credit; too many of our citizens are endeavoring to live on credit , instead of industry.” Senator Morris’ comments came just as consumer credit was taking root in American Society. Only a short time after in the 1920’s did we experience a huge falling out economically, much like today, because of the principles and risk of living more and more on credit rather than actual dollars.

It was not until the turn of the twentieth century that consumer credit began to be accepted more widely in American Society. In 1899, economist researching household money management discovered that trends in personal credit were undergoing significant changes. Installment debt was suddenly widespread among many Americans and was representative of all levels of the social economic ladder.

This movement toward an increasing use of credit for personal consumption grew through the era leading up to the Great Depression. “By 1926 two of every three cars sold were bought on credit. Over the same period, outstanding consumer debt nearly doubled (in constant dollars), while household debt as a percentage of income rose from 4.68% to 7.25%” Quoted out of the book Buy Now Pay Later: Advertising, Credit and Consumer Durables in the 1920s.

Much like the prediction prior to the turn of the century, when credit was mostly limited to individuals borrowing against their existing assets to pay for the next planting season or for proprietors to provide locals the ability to buy goods from them and pay later, consumer credit took a giant leap forward in the late 80’s and early 90’s. In fact starting in 1991 until the first quarter of 2001 when expansion finally came to an end, total household debt, consumer credit debt, and mortgage debt all doubled. This along with other factors stemming from economic recession, led to the current situation America finds itself in today.

What does all of this mean? Well at Achieve Security, with your program structure you are already changing your habits. I am sure everyone has had to make some lifestyle adjustments, and now you are conditioning your self to placing money in an account for savings to pay off your debt. You will finish this program and find that if you continue to save money each month and exercise some discipline, in a very short time you can pay cash for a big purchase, rather than buy on credit. The more you learn to practice this habit, the more dollars you will save in not paying interest on revolving credit balances.

Give yourself a raise / How to find extra money

2009-01-07T14:29:00.001-08:00

In today’s tough economic times, many people are trying to find ways to cut back. Some experts say that there are ways to bring more money home each week as well. The biggest opportunity most have is their federal withholding. According to the IRS’s figures for 2007, the average refund last year was $2,800.00. What this means is too many people are over withholding to their own detriment. How would an extra $100.00 dollars on each bi-weekly check weekly help you? You can simply take home more of your money each week rather than waiting for an April refund. We suggest you review your W-4 and consult a tax professional. Far too many people are overpaying each and every week for federal withholding.

In Response to Questions on 1099-c

2009-01-07T14:26:00.000-08:00

We would like to address several questions from clients regarding the receipt of Form 1099-c related to income from the discharge of debt. When you complete a settlement and the amount discharged or written-off is greater than $600.00, your creditor may issue you a Form 1099-C and send a copy to the IRS. You are required to report the amount of canceled debt on your tax return. Reporting the amount on your return does not always mean you must additional tax.

The good news is that MOST of our clients qualify for the insolvency exemption and pay no additional tax. What is insolvency you may ask? You obviously would want to consult a tax professional about your specific situation as we cannot give tax advice. However, the general rule is you are insolvent if all of your liabilities (i.e. amounts owed on credit card debt, mortgages, car loans and any other debt) exceed your assets (home equity, bank accounts, CD’s, investments and other assets). The assets included depend upon your state’s law regarding asset exemptions for bankruptcy purposes.

Most of our clients are insolvent and simply file a Form 982 with their tax return declaring their insolvency. You can find this form at www.IRS.gov under “forms and publications”. Since the form can be confusing, you may also want to read IRS Publication 908 available at www.irs.gov and seek professional advice.

Holiday Spending Habits

2008-12-15T10:08:00.000-08:00

The holiday season is just around the corner and you may be thinking about all the holiday costs. We agree that Christmas should be a wonderful time of year and can be if you keep spending under control.

Many people sacrifice quite a bit to supply Christmas gifts for loved ones. A recent article on British news site “24/7” stated that the average Britain spends $351 dollars per family for holiday gifts. In contrast, American families spend an average $859 per holiday according to the American Research Group.

Are Americans too caught up in “keeping up with the Joneses”? It is a good question, especially when considering the credit card debt that builds after each Christmas season.

While many may make a point of saving for a car or for their child's education, few people plan ahead for their annual holiday spending. If you are paying down debt, it may be time to cut back on the Christmas spending. You don’t have to skip the holiday, just be more like the British and spend less. Or you could decide to make a gift or give a gift of your time to a family member rather than spending cash.

But we understand that holiday cash requirements can arise and times get a little tougher around the holidays. Therefore, Achieve Security has programs designed to help get you through the seasonal crunch.

Too often, we see clients drop out of their debt program entirely without discussing their options. We would be happy to discuss reducing your payments during November and December. But remember, any decrease in payments will increase the time necessary to free you from debt. Still, it is better to stay with your program through the holidays so that next year can truly be a happier New Year!

Please call our client services department at any time for more details.

Consumers Say Recession is Here, Focus Shifts to Debt

2008-12-11T06:17:00.000-08:00

According to credit and collection news “A recession has occurred whenever the Sentiment Index has declined as much as it has fallen during the past year, including the recessions occurring from the mid-1950s to the early 2000s,” remarked Richard Curtin, director of the survey, which found that consumers were nearly unanimous in the opinion that the economy had already slipped into recession.

Consumers have adopted much more cautious spending plans, and are shifting more toward repaying debts and rebuilding their savings. The expectations index fell over 31% in March of 2008. This same index fell by 24% prior to the 1990 recession.

The majority if consumers receiving the tax stimulus package show indications that they plan to pay off debt and rebuild savings.

“Consumers are now more in favor of repaying credit cards and rebuilding their reserve funds so they have the needed financial flexibility to handle any future twists and turns in the economy,” Curtin said Friday.

As we pointed out last month Achieve Financial Security encourages this plan and suggests that in the long run you are much better off putting your money towards paying off your debt NOW rather than spending it on something else that could wait.

Especially with declining home values hitting a 20 year high. Over 35% of homeowners surveyed reported declines in home value as compared to 18% one year ago and only an only 3% 2 years ago.