Today I’m excited to announce a special guest post by Sophie Kinsella who writes about one of my topics, personal finance.
Author’s Bio: Sophie Kinsella is a contributory guest columnist for various websites and communities including Oak View Law Group and CMFA . She has completed her Graduation in Finance and is currently working with an Investment company located in California. She has written some great articles on topics like bankruptcy, investment opportunities, debt settlement company and more.
Kevin conquers his debt: Know the real story behind it!
As a financial writer I interact with the debt stricken consumers to help them get out of debt. While dealing with these financially crippled people I met Kevin. He shared his personal experience of living under the burden of overwhelming debt and how he managed to regain his financial independence. There couldn’t have been a better place than this blog to share this story.
Kevin owed a total debt of $64522.65 with Juniper, Bank of America, Chase, Capital One, and Advanta. Initially he has been under the notion that he’ll be able to solve his own financial problems without seeking help from a professional settler. But Kevin failed to manage the exigent repayment terms and ultimately his financial situation spiraled out of control. He told me that he received threatening calls from the creditors and they have been unwilling to listen to Kevin. He incurred an insurmountable amount of debt and left with no other option than hiring the services of a debt settlement company. After an extensive research by checking the feedback from the past clients and testimonials he decided to approach Oak View Law Group (OVLG) to settle his debts. A question popped up in my mind, why a debt relief company? There has been a mushrooming growth of the scam companies because of an incessant increase in consumer debt. It’s surprising to hear from Kevin that OVLG gives 100% money back guarantee if the clients are dissatisfied with their services. Well, it made me feel bit relaxed.
But I interrupted again and asked him whether he got protection from the collection calls. Then Kevin said, once he enrolled in the debt settlement program with the Oak View Law Group, he was educated on Fair Trade Collection Practice Act (FDCPA). This helped him to know his consumers rights to manage his collection calls. Kevin was suggested a suitable debt relief plan only after reviewing his financial situation.
An IAPDA debt arbitrator of OVLG clarified Kevin’s queries and then handed over his file to the case manager Sandra Gibson. She took over the case and started sending the legal documentations to the creditors from January 2009. Kevin managed to settle his first two accounts with Chase in February 48% and 46% respectively. By July 2010 Kevin settled all his accounts and he was happy to find that his accounts were settled for less than 50%. Kevin told me that he saved $11772.5 with Juniper, $11805.7 with Bank of America, $5230.88 with Chase, $2583.62 with Capital One, and $1759.21 with Advanta. He managed to attain financial liberty within 19 months.
Remember that if you have already started working on a debt reduction plan then you need to lead a financially disciplined life. Here are the following things that you need to keep in mind to attain financial liberty over a short period of time.
Formulate a budget so that you can curb your expenses and save the amount to pay off your obligations. Deposit a portion of your income in the savings account that will go towards your debt reduction plan. If you enroll in a debt settlement program then you should be aware that you are required to make a monthly payment to the debt relief company. In case you fail to make payment on time then your terms of negotiation with the creditors will be terminated.
A perfectly planned budget helps you track your expenses and it is more convenient to pay off your debts every month. You can also evade incurring more debt and avoid the vicious cycle of debt through budgeting.
You can also attain financial freedom like Kevin if you keep the above mentioned points in mind. Remember that you need to be focused to achieve your financial goal and avert crushing under the burden of debt.