Here is a Prepaid MasterCard resource that we use and recommend:

In these times of financial difficulty, people are looking for more ways to manage their finances properly and limit their spending. This need has given rise to the popularity of prepaid Visa and Master cards. These cards are used like a regular credit card, but the principle it uses is that of a debit card. You deposit a certain amount in an account, after which you are issued a credit card.
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Click on the Silver Prepaid MasterCard logo below for more details:

Credit Counseling and Debt Consolidation offers the following article from The Buffalo News.  This is an important warning to stay on top of credit card payments, or reach out for help before it becomes more serious and more difficult to control.  There are legitimate credit counseling and debt consolidation companies and options out there to keep your from being harrassed by collectors.

When collectors call: Fight, compromise or pay up?

By Fred O. Williams

The tree is down, the cookies are a memory—the holidays are over. ’Tis the season of trying to pay the bills. But in this faltering economy, many households are falling behind, bringing the headache of debt collection calls.

Dealing with debt collectors can seem overwhelming, especially when more than one bill is late. But experts say it’s important to take charge of the situation, know your rights and face debt problems before they snowball out of your control.

"The next step is a summons," said Larry Curtis, director of counseling at the Consumer Credit Counseling Service in West Seneca.

Creditors are sending more overdue bills to court, in order to seize assets and wages, he said. Once a collection action reaches the courtroom, your options become narrow and unpleasant.

Adam Wisniewski of Niagara Falls didn’t even know that a collector was after him until he went to the bank and his ATM card wouldn’t work.

It turned out that a collection lawyer had obtained a judgment against him for a credit card debt that wasn’t even his. Wisniewski had to find a lawyer of his own to fight the case and get his bank account unfrozen.

"Now I go online and check my credit card and bank once a week, to make sure there’s nothing going on," the 33-year-old retail manager said.

Fortunately, Wisniewski’s story is an extreme example, financial counselors say. Most people slide into collections by avoiding even thinking about bills. Others try asking for an extension but run into problems—some have difficulty communicating with call center workers overseas —so they drop it, Curtis said. But instead of going away, the problem escalates.

"The creditor sends [bills] to a collection agency or right to an attorney’s office," he said. Most creditors, including banks, credit card issuers, utilities and even doctors’ offices, will turn over a bill for collection when it reaches 60 or 90 days past its due date.

Dealing with collection agencies is different than dealing with the creditor. Collectors work on a contingency basis, meaning they get a slice of whatever they’re able to collect. While that means they’re aggressive, they may also be willing to work out a deal.

"Lenders are negotiating for a lot less than they were a couple of months ago," said David Chadwick, attorney at the Legal Aid Bureau of Buffalo.

In exchange for a prompt payment, collectors are often willing to write off a big chunk of the bill. Some bills that were settled for 60 percent, for example, may now be whittled down to 50 percent, he said, knocking off half the original amount.

Of course, many debtors are too tapped out to take advantage of a settlement, or they would have paid the bill in the first place.

Consumers need to take stock of their situation, debt counselors say. If the financial hole is too deep to pay current bills, they’ll have to think about bankruptcy, which will stop collection and may wipe out many debts.

But if there’s enough income to meet regular expenses, consumers may work out a repayment plan that salvages their credit history. Paying off the entire debt, even if it takes longer, will look better on your credit report than paying a settlement for a reduced amount.

Consumer Credit Counseling Service, a nonprofit, specializes in setting up repayment plans, some of which extend three to five years, Curtis said.

Unfortunately, even people in hock are being targeted by scams. Ads that promise to magically wipe out debts are circulating, giving false hopes that debt problems will vanish. Beware of debt consolidators that take an up-front fee and fail to begin paying your debts with it right away, consumer advocates say. The state attorney general’s office recommends sticking with nonprofit credit counseling agencies that are licensed by the state Banking Department.

Important questions to ask a counselor are: What fees will be charged?How will your information be safeguarded? And will employees earn bonuses if you sign up for extra services?

While businesses have a right to collect legitimate bills, consumers also have rights in the collection process, and knowing the rules of the game will at least level the playing field.

One area woman had fallen behind on a credit card, but she arranged to pay it off in installments of $75 a month. Then the post office box where she sent her checks was closed, and her mail was returned.

"Four years go by—then, out of the blue, they sue her," said Peter Dellinger, a consumer attorney in Rochester who represented the woman. The collector said that her $873 debt had mushroomed into $7,000 because of interest charges.

Fortunately, she had saved the documents connected with her repayment plan, Dellinger said, including her canceled checks, and even the envelope that was returned to her. With that evidence in hand, she was able to convince the court that the collector was the one in the wrong, not her.

Getting everything in writing and keeping the documents is one good rule of thumb. When a collector calls, you have the right to request proof of the debt. This is a good first step, Curtis said. Even if you are familiar with the debt, getting proof from the collector ensures that the agency is authorized to collect the bill.

If the bill is unfamiliar or the amount is wrong, you have 30 days to dispute it. It’s important to do this in writing. Once the agency receives your dispute letter it must provide written verification, or stop contacting you.

Harassment is forbidden. Agencies can’t call you before 8 a. m. or after 9 p. m. unless you agree. They also shouldn’t contact you at work if you say you’re not allowed personal calls.

Collectors may call your neighbors or relatives, but only to find ways of contacting you. It is forbidden for them to reveal your debt to others. It’s also forbidden to falsely threaten you, for example by saying they’ll seize your wages or bank account, unless they have court authorization to do so.

If you think a collector has stepped over the line, you can make a complaint to the state attorney general’s office. The number for help is (800) 771-7755. More information is on the Web site at www.oag.state.ny.us . The Federal Trade Commission also oversees debt collectors, with information and contact numbers on its Web site at www.ftc.gov .

fwilliams@buffnews.com

Are you unable to make your monthly minimum payments on your credit cards?

Are you late paying any of your bills?

Have you tried to contact your creditors? Have those efforts brought no solution, or a solution that you still could not meet?

Are you being chased down by creditors and collection agencies? Avoiding phone calls, and deleting emails?

Do you have a steady, reliable income stream, but it is simply not enough to make those minimum monthly payments?

Can you reasonable restructure your debt and pay it off within about 2-5 years? If you are unable to meet that timeframe, you may be better off opting for bankruptcy.

What is Credit Counseling?

In a nutshell, credit counseling is a process through which consumers are offered education about how to deal with their debt, how to avoid accumulating additional debt and often involves negotiating with creditors to create a debt management plan. A DMP is a plan in which the consumer repays their debt on a repayment schedule. Often, DMPs include the ability to reduce payments, interest rates and fees. After the DMP is created, the creditors close the consumers’s credit accounts to cut off the consumer’s ability to continue to accumulate debt with that creditor.

How do DMPs help a consumer with overwhelming debt?

DMPs can be advantageous for the consumer struggling with debt as the credit counseling agency helps to consolidate the monthly payments of the debtor into one single payment. Typically this payment is less than the sum of each of the individual payments made each month by the consumer. In fact, many consumers find that after having tried to negotiate this on their own, it is only with a DMP that the same credit card bank will now accept this lower monthly payment.

DMPs are also helpful to the consumer as they may also achieve reduction in the interest rates they are charged by their creditors. Some consumers who are behind on credit card payments find themselves paying interest rates in the upper ranges of 20%, close to 30%! By joining a DMP, consumers can find themselves with annual percentage rates lowered to 10% or less, sometimes even eliminating the interest charges all together! This justifies the claims of many counseling agencies that their customers will be debt free in a short range of time as when the interest rates are dramatically lowered, the consumer is able to pay the debt off more quickly. Note that if you are simply looking to reduce your interest payments but you are current with your accounts, you probably should not look into a DMP as the creditors may carry that debt as "past due" in exchange for the lowered interest rate.

DMPs also help customers’ accounts that have become delinquent to a current status and help to impact their credit rating over time. This is also known as "curing" and account or "reaging" the account. The consumer making the payments dictated by the plan on a consistent basis will have these accounts reported to the credit bureaus as current. This, however, does not simply erase the past delinquencies. But with time and the continued payments with the debt management plan in place, the consumer will begin to rebuild a more positive credit history. Participation in a DMP does appear on a consumer’s credit report, and it can impact the consumer’s ability to obtain home or car loans. Some lenders will see this as a negative, as it can indicate that a consumer has not managed their debt well. On the other hand, other lenders can see it as a step in the right direction as it can also indicate that the consumer is taking care of their debt obligations and may be worth the lending risk.

Did you know that Credit Counseling is a requirement for filing for bankruptcy?

Credit counseling is now a requirement for any consumer filing for bankruptcy, as per the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. To meet this requirement, the consumer must complete a program with a nonprofit consumer counseling agency with at least one counseling session. Furthermore, they also have to complete a post-filing education credit counseling session before their debts are fully discharged.

What do I need to know about Credit Counseling Agencies and the negative statements about the industry?

Credit counseling has come under a lot of scrutiny lately with charges that consumers have paid hidden fees, excessively high fees, poor service and many other complaints. Many feel that the agencies take the sides of the creditors more often than the consumers. There are also charges that credit counseling agencies hire employees with little to no formal credit counseling training. So, you are putting your financial future in the hands of an employee who may have no more knowledge financial management than you do!

Beware of any agency that asks you to pay high upfront fees. They will claim to be "debt settlement" specialists and they tell consumers that they will negotiate their debt to "pennies on the dollar", we have all seen the ads and commercials. This is typically NOT a legitimate claim, and by the time they take your upfront fee, and the fees of thousands of others, they have enriched themselves, and preyed on consumers desperate for debt solutions.

While you may be desperate and want to hear postive, hopeful news and advice about your debt, do not fall prey to the con artists that make unrealistic promises. A legitimate credit counseling agency will tell you all of the details of how you and your credit will be impacted, even with the DMP. Make sure that they are accredited, and you can check that through the Association of Independent Consumer Credit Counseling Agencies or the National Foundation for Credit Counseling.

Do your due diligence and you can find a reputable Credit Counseling agency that will help you understand the process realistically, charge appropriately, truly do what they say, and assist you in your Debt Management Plan. This can be a viable alternative to bankruptcy, and get your on a path of financial success and security and freedom from debt in the future.

Credit Counseling and Debt Consolidation will offer information and updates on how credit counseling may be the right fit for you, and how you can work with a reputable credit counseling agency to your advantage.   While we do not offer credit counseling services, we will do everything possible to make sure that you can make an informed decision with the information that we provide to you.  This also does not constitute legal or financial advice.  If you are in need of legal or financial advice, it is always best to take the information you have gathered to an attorney or financial advisor for their input, interpretation and possible legal representation.

Credit Counseling and Debt Consolidation presents the following article about how to benefit from debt consolidation.  Debt consolidation can help you avoid bankruptcy, get your finances under control and get you on a sound financial path.

If you are weighing getting a debt consolidation there are a lot of beneficial things that can occur from one. Foremost the foremost grounds to obtain a debt consolidation is if you are having difficulty paying off your obligations, or you desire to get freed of all your debts.

Most times you will have all of your old accounts shut. This is genuinely a beneficial thing because probabilities are it is your inability to keep in line your credit expenditure that got you into this position in the first place. Having them blocked will keep you out of difficulty.

There are 2 paths you can go about debt consolidation. If you own a house, you can acquire a house equity debt consolidation and if you don’t have a house you can have a company aid you with debt consolidation by merging your payments.

If you’re capable of getting a loan against your house the benefits will be a smaller rate of interest than you might get otherwise because of the security extended to the lender. In most cases you can acquire a loan for the sum of your property appraisal less the principal that you have paid. The leftover sum can be used for paying off your lenders and consolidating your debts.

After the finances are received you can then get in touch with your lenders and have the accounts closed. Hacking up all of the old credit cards is a very dandy thought just so the temptation isn’t there any longer. This is such a good choice because it grants you more control of the situation. You can still talk terms to get your charges lowered or you can choose to mail the lenders the entire sum the choice is yours, as long as they are in agreement.

If the previous choice is not attainable for you there is yet hope. You will just have to move into a program where the debt consolidation agency operates on your behalf to pay back your debts for you. They will talk terms with your lenders to reduce your interest rates, stop all the late fees and as a result decrease your payments. This will last the entire time that you are in the program.

Then each month you will have funds taken out of your account and utilized to pay your debts for you. This gets most of the obligation off you. You just have to make sure you keep track, that the company is paying your lenders, there is a scam every so often.

Other than this, the accounts will be closed and you can’t charge more to them. This is a good thing the lenders do so that you can’t grow your debt any longer. Then Again it doesn’t obstruct you from acquiring more accounts. Just know that because you own accounts in debt consolidation it will not look good on your credit, and you will receive steeper rates of interest on future accounts for awhile.

If you have difficulty staying on time with your lenders and making payments on time, debt consolidation could be a marvelous choice for you. You can contact any verifiable debt consolidation company and discuss your options anytime with no commitment, just hold in mind that it will affect your credit, but equated to late payments it might be the most beneficial choice.

By: Frank Froggatt

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Want more information on Debt Consolidation?  Check out these links:

Debt consolidation for todays economic situation

Debt consolidation is simple action which consist of taking out another loan to pay off many others. This will work pretty well if you can get a lower interest.  

Are Debt Consolidation Loans For People With Bad Credit a Good …

Debt consolidation loans are a vital financial tool used regularly by individuals with bad credit history. You will possibly be able to apply for a secured debt.   

Debt Consolidation - Eliminate Your Debts in a Convenient Manner …

Debt consolidation is a good option if you can only make the minimum payment a month on each of your bills or you’re having problems paying your bills on time.   

How Can I Keep My Credit During A Debt Consolidation

First if you are going to get behind on your bills you can begin a debt consolidation at any point. All you need to do is acquire a company and telephone them up to receive more info.