Getting Nowhere with Your Debts? You Need a Debt Resolution Plan!

Debt Resolution

If you find yourself burdened with unmanageable credit card debt and struggling to make minimum payments each month, Veitengruber Law’s debt resolution services may be the perfect option for you. Following a debt resolution plan can be an effective strategy for anyone who has experienced a financial hardship like divorce, job loss, a significant reduction in household income, or medical debt resulting from serious accident or illness. Our team is experienced in debt management solutions and creating effective debt resolution plans.

George Veitengruber is an attorney with a strong focus on finances. All of our team members understand the personal heartache people can experience from overwhelming debt. We work toward real and appropriate solutions that provide relief and peace of mind for our clients. We will sit down with you to review your income and expenses and evaluate your debt to get a blueprint of your finances. No two people have the same debt issues and there is no one-size-fits-all solution to debt issues. We provide individualized advice for each client. Bankruptcy is not the only option for people seeking debt relief, and we will never push you into bankruptcy if that is not your best option.

Debt resolution can be an excellent alternative to bankruptcy or debt settlement. After we sit down with you to get a clear understanding of your financial situation, we can create a comprehensive budget that will allow you to get a handle on your debt. We will also use that budget to negotiate with creditors on your behalf. We will work to settle on new payment terms with each individual creditor, negotiating to eliminate penalties, reduce interest rates, and secure lowered monthly payments. The goal of a debt resolution plan is to resolve your debts for less than what you owe on your outstanding balance and to create a payment plan you can more easily manage.

There are some major incentives to working with an attorney to create a debt resolution plan over other debt settlement services or trying to manage debt alone. While your overall score will still likely drop at least slightly, our debt resolution services have the potential to limit damage to your credit score. Because you can continue to pay creditors throughout the negotiation process, there is little opportunity for late payments to further decrease your credit score. Veitengruber Law can also negotiate with creditors in how they report the payment of the debt, working with creditors to ensure your credit score is impacted as minimally as possible.

Another major benefit to debt resolution is the support you get from a qualified, experienced attorney. Our legal team can use their knowledge of the financial world to negotiate on your behalf. Creditors are more likely to take an attorney seriously and an attorney can assure your creditors are working in your best interest. We know all the tricks of the trade and how to work the situation in your favor. When you work with us, you know you will receive the quality know-how and financial expertise you deserve. Our advanced knowledge and years of experience also means less time spent negotiating with creditors, ensuring that you will start paying off debt sooner rather than later.

Don’t wait to start working on a solution to your debt troubles. Call us today to arrange a free consultation with a debt negotiation lawyer. Our comprehensive approach to debt resolution will allow you to breathe easier again. We can work with you to create an individualized debt resolution plan that works for you, helping you tackle unmanageable debt and avoid further financial troubles.

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Reduce Debt NOW Rather than Later and Save Thousands

reduce debt

The average American household is leveraged with $137,000 of debt. That’s a crushing number. No matter what your debt looks like, you can (and should) take steps now to eliminate years of payments – potentially saving you thousands of dollars. Following are four of the most common kinds of debt weighing Americans down, along with debt-reduction tips for each type of debt.

Mortgage:

A mortgage is one of the largest debts most people will take on in a lifetime. With a minimum down payment, you will pay thousands of dollars in mortgage insurance (PMI), which is basically wasted money. If you can’t put down 20% to avoid PMI, you should refinance as soon as your home value increases enough that your equity is the equivalent of 20% or more.

Pay attention to comparable home values in your neighborhood and refinance your mortgage as long as the interest rate is low. If you began with a 30-year mortgage, try to refinance to a shorter term. You will pay much less interest over the course of the loan. Choose a 20 or 15-year mortgage and spend your later years without a mortgage payment!

Another effective way to reduce mortgage debt is by making bi-weekly payments instead of monthly payments. This means you will make 13 payments per year instead of 12 and most people won’t even notice the difference.

If you are unable to pay your mortgage or are behind on payments, address it before it gets out of control and you lose your home.


Student Loans:

One of the worst kinds of debt is student loan debt. It will often survive even if you declare bankruptcy. Your wages can even be garnished if you fail to pay your student loans back. Look to consolidate your loans into a low interest rate. Refinancing federal loans with a lower interest private student loan lender is another great option. Veitengruber Law can help you reduce your student loan debts once we meet with you to discuss the specific details of your debt(s).

 

Medical:

Debt from medical bills is one of the “best” kinds of debt to have. You can often negotiate an interest-free payment plan with the provider. Be careful not to ignore these bills and let them go to collections, though. Having any kind of debt in collections can ruin your credit and prevent you from making future important purchases.

 

Credit Cards:

If your credit card debt is out of control, you need to stop adding to the problem and put away the cards. Don’t close the accounts – this will negatively impact your credit score. Put the cards in safe place where you won’t be tempted to use them, and start using a debit card or cash only.

Because the interest rates of most credit cards are so high, repaying significant credit card debt can take years. Always make more than the minimum payment so you are impacting the balance and accruing less interest.

If your credit score is still good, transfer your high-interest card balances to low or no interest introductory period credit cards with no balance transfer fees.*

*IMPORTANT NOTE: Read the fine print before you do this. Credit card companies are cracking down on consumers moving money from card to card to avoid paying interest. You could be hit with a very high rate at the end of the introductory period, or with retroactive interest fees if you move the debt a second time.


There are several strategies you can use to pay down your debt; read our blog post entitled “Snowball vs Avalanche: Digging Your Way Out of Debt” to find the strategy that works best for you and stick to it.


Allowing any type of debt to get out of control can have disastrous effects on your life. The stress of debt can lead to depression, anxiety, physical health problems, relationship problems and more. You may also find yourself in small claims court, civil suits, foreclosure proceedings and bankruptcy court. Your assets like televisions, computers, phones, and cars could be liquidated (sold) in order to pay your creditors.

Take steps now to gain control before your debt becomes an insurmountable mountain. Need help getting started? Call Veitengruber Law for a free consultation.

 

 

Attorney vs. Debt Settlement Services: Which One Protects Your Interests?

NJ credit repair attorney

If you’re one of the millions of Americans facing a large amount of personal debt, you may have been tempted by the numerous ads you’ve seen for debt settlement companies. Debt relief sounds like a miraculous shortcut to a fresh financial start, but is it too good to be true?

In a word? Yes.

Like the deadly Venus fly trap plant, debt relief companies and consolidation services put up a beautiful, welcoming front, but once you’ve given them your trust and access to your finances, they’ll slowly devour you. This article will show you the truth about debt settlement services and outline the reasons a personal attorney will protect YOUR long-term financial wellbeing at every opportunity rather than using your troubling financial circumstances to endanger you even further.

 

First, let’s take a look at the methods debt settlement services will use to lure you in and subsequently destroy you financially.

 

Emotionally Manipulating Advertising

Debt settlement services rely on their aggressive advertisements to attract individuals who have poor financial literacy and are in dire straits regarding their current personal debt. They know that people who are paying attention to their ads are desperate for help and feel like they have no one else to turn to.

Dishonest Sales Pitches

Once they entice you to make contact, they’ll bombard you with an emotional sales pitch that will purposefully attempt to break down any critical thinking you might be using to analyze whether or not their services are a good match for you. Just when you’re at your most vulnerable, they’ll present a sales contract that seems to promise that they will arrange for you to be able to pay off your debt quickly.

Usually, these debt settlement companies will require money upfront. Alternatively, you may be asked to open a new bank account that you will be required to funnel money into. This money is supposed to pay off your debts.

No one in the financial world trusts or respects debt settlement service companies.

These companies are viewed with distain because they are for-profit. While it’s true that everyone needs to make a living, debt settlement services usually aim to siphon as much money from you as they can without actually helping you resolve your debts. This reprehensible approach is known far and wide in the financial world, so unfortunately for their customers, most creditors refuse to work with these scam services.

Worse yet, debt settlement companies won’t tell you about this huge barrier to success until you have already signed their contract. Once you’ve signed up, they have what they need. You will be left with a plan that won’t help you at all. Your creditors won’t have a good working relationship (or any kind of working relationship) with your debt settlement company, so your chances of being able to successfully get out from under your debts is actually worse once you’ve signed up.

We aren’t blaming consumers for getting tangled up with this awful companies.

Debt relief scams like this are highly skilled at spinning half-truths that we fully understand why people get sucked in. They cherry-pick information about their results and research; they might present evidence that their program helps clients at the 3-month mark. What they DON’T say is that their clients will be drowning in interest for years afterward. This unethical practice further demonstrates that debt relief services exist just to take your hard-earned money out of your hand when you need it most.

Your interest rates and credit score will be destroyed.

The first thing these companies will do is tell you not to make your minimum payments. They will instruct you to ignore any overdue notices or letters you will certainly receive. They’ll tell you that it’s all part of the plan, and that they have everything well under control.

While it’s true that after a long, hard-ball fight with your creditors, they MAY give up and reduce or write off your debts, but only at a great cost to your financial reputation. Your creditors will inform the credit bureaus that your debt has been negotiated, which will damage your credit score. A poor credit rating will raise your interest rates when you apply for credit cards, a mortgage, or a car loan. In some career fields, having a damaged credit score can even prevent you from being hired at all!

Creditors will still come after you directly, and debt settlement services can’t stop them.

The debt settlement company version of debt reduction will drag on for such a long time that creditors might decide to pursue legal action against you. Even if you do everything your debt settlement company has directed you to do, your creditor can gain a court order to seize your home, your vehicle, valuable belongings, and even garnish your wages directly.

If this happens, a debt settlement company cannot defend you in court, or help you with any legal proceedings. They aren’t lawyers. They don’t provide access to legal counsel, and they are not on your side.

Hire a consumer debt relief attorney to represent you.

Debt settlement companies, credit counseling and debt consolidation businesses cannot represent you in court when you are sued by creditors, they can’t give you legal advice, and they can’t represent you in court when you have the opportunity to sue creditors and collectors for violating your rights — ONLY lawyers can do so.

Why Should I Avoid Debt Settlement Companies?

Non-attorney companies that offer debt settlement services have a poor reputation in the U.S., particularly with the very creditors with whom you need to negotiate and who may sue you. And the industry is, unfortunately, plagued by scams.

A debt settlement company may commit to contacting your creditors on your behalf, but fail to do so. They may even succeed in having the debt frozen, but actually fail to negotiate the debt to an amount you can afford and then just withdraw money to pay themselves.

Assuming the debt negotiation company does as promised, they will still face many obstacles that affect you. To begin with, a creditor, most of whom are represented by a large team of attorneys, may up their game when they discover you are working with a debt settlement company instead of a law firm. This means the creditor could accelerate their collections process and file a lawsuit against you more quickly.

What makes an attorney different?

An attorney will represent you in court if your debt negotiations escalate. Your attorney will be able to give you accurate information about your legal options, your rights, and the risks you face during litigation.

Your attorney’s entire focus will be protecting YOU. Your attorney only cares about your immediate and long-term financial well-being.

Furthermore, your attorney will guarantee total confidentiality. Every communication with your attorney, their firm, and any member of their staff is protected. Only attorneys are bound by this confidentiality ethos.

Veitengruber Law can help you resolve your debt. Come in and meet with us at zero cost to you. Let us analyze and assess your current financial situation. We’ll give you the truth about whether hiring an attorney is in your best interest. If we aren’t sure that you need us, or if we aren’t sure we can help you, we will tell you up-front.

If we think there’s a high likelihood that we CAN help, then we will begin to protect you immediately. We will do everything we can to prevent your creditors from dragging you into court. We will carefully and skillfully negotiate and document each settlement to stop creditors from suing you.

In the event that you are sued, we will be prepared to ferociously defend your interests in court. You will not be alone at any stage of negotiation, litigation, or settlement.

Give us a call today to set up an appointment. The stress of mounting debt can start to take over your life; before you lose any more sleep or waste another hour fretting, allow us to step in and take action on your behalf. We can turn the tide and start taking back your life one negotiation at a time.

Image: “Broke” by Christian Schnettelker – licensed under CC 2.0

5 Ways to Get Caught Up on Bills After the Holidays

 

debt resolution

Just as a little too much partying on New Year’s Eve can leave you with a painful hangover — a little too much spending during the holiday season can result in a financial hangover. Unfortunately, the latter can’t be cured by drinking plenty of water and getting some extra rest.

When your out-of-town loved ones have gone back home and the decorations are starting to come down, credit card debt and crumbling finances can be a cold, unwelcome reality check. While we want our holiday memories to last a lifetime, holiday debt is something we’d really rather not think about. Avoiding the truth about how much you really spent on gifts for all and sundry won’t make the problem disappear; what it will do is snowball the interest and late fees.

5 effective ways to begin tackling your excessive holiday spending:

 

  1. Assess the Situation/Make a Plan

Tackling excessive debt is anything but fun, but it can’t be avoided. Begin by looking over all of your banking statements and making sure that you agree with all listed charges. Then, make a list of your debts from smallest to largest (based on total amount) to get an idea of  how much you’re in the hole for. Next, create a list of their interest rates from highest to lowest.

Once you have a clear picture of what you’re dealing with, choose either the Snowball or Avalanche debt repayment strategy and start working on the plan of your choice ASAP.

 

  1. Return, Return, Return

Did you end the holiday season with scads of decorations, gifts, or other items that were never even opened? Perhaps you bought gifts for a friend’s significant other only to discover that they broke up in November. Maybe you lost self-control and brought home that ridiculously overpriced holiday decoration you’ve coveted for months.

Do not hesitate — GO NOW, this minute, to return any still-in-box, tagged items. If you are able to get your money back – put it to good use by making an extra credit card payment before you have a chance to buy something else you don’t need. Without a receipt? Use store credit to buy something you’d purchase anyway, like home goods or diapers.

 

  1. Work to Cut Regular Monthly Spending

If you have assessed your budget and concluded that there isn’t enough money left over each month to pay off your credit card debt, then reducing your monthly expenses is a must. Chances are, you have at least some recurring monthly payments that could be eliminated or decreased. Try calling your cell phone provider or cable company to see if they have any New Year’s offers or plans that would be cheaper than what you’re currently paying. Be sure to mention that you’ll have to change providers if they can’t lower your monthly bill.

Look around for a new (lower) quote on home and car insurance. Keep searching until you find a company that has the coverage you need and is willing to work with your budget.

Lastly, assess any larger loans you’re currently repaying (mortgage, home equity, education). Consider refinancing or modifying some or all of those more substantial loans. Every dollar you decrease your monthly payments by can go directly toward paying off credit card debt.

 

  1. No Credit Diet

Until you have that credit card debt completely paid off, we strongly recommend putting yourself and your family members on a “no credit diet.” When you purchase anything, use debit cards, cash or write a check (ancient, but still better than spending money you don’t have). Using these forms of payment will avoid racking up any more credit card debt.

 

holiday spending

 

  1. Every Dollar Counts

Everyone has some expenses that could be considered “flexible” – grocery bills, clothing, entertainment, recreation, and more. Determine what items in your budget are ‘must-haves’ and what you or your family could go without.


In short: Evaluate your spending habits and start making better choices until they become habits.


Example: When you’re tempted to buy that five dollar cup of coffee, think about how quickly your coffee habit could put a dent in your debt. Bonus: Getting off caffeine (or reducing your intake) is good for your blood pressure!

We’ve given you a few ways to start lowering that holiday debt that you had so much fun charging last year. Take the tips that work for you and add your own debt pay-down tricks into the mix.


One caveat: If your holiday debt goes far beyond just the recent holidays, and you’re finding your monthly minimums are more than you can handle, regular debt pay-down strategies probably won’t get you very far. That doesn’t mean you’re out of luck.


When you’re so far behind on your bills that they just keep piling up, unpaid, on your kitchen table, it’s time to ask for professional help. Call Veitengruber Law. We will provide you with a holistic analysis of your debt and tailored solutions that will get you “back in black.”

The best part about reaching out to us for help?  The first meeting’s on us.

Collection Defense vs NJ Bankruptcy

If you have been sued by a collections company or “debt collector,” and the debt truly belongs to you, the most important piece of advice is: Do not ignore the lawsuit.

With that being said, people in your position naturally wonder if they have options. Being sued for a debt that perhaps you thought had been forgiven, or that had reached its statute of limitations, can come as a surprise. Many times we put these things out of our minds because it is easier than focusing on it and worrying about it.

Unfortunately, by putting a large debt that you failed to repay out of your mind, you are now faced with a lawsuit that asks you for the entire lump sum that you owe. This sum may even be larger than you remember due to late fees, attorney fees for the collections agency, and interest.

Is filing for bankruptcy your only option?

While it is impossible to give a blanket answer to this question (as everyone’s case will vary wildly) – the general answer is that no, bankruptcy is not your only option when you are being sued for an unpaid debt.

There are several things your NJ bankruptcy attorney will ask when you meet with him or her. Is this your only significant debt? What is your income? Can you repay this debt if it is broken down into payments?

If you have other debts along with the one in the lawsuit, and your income doesn’t allow you to get ahead on paying them back, it may be that bankruptcy is right for your situation.

Can you negotiate with the debt collector?

On the flip side, if the debt in this lawsuit is literally your only debt (outside of your mortgage and car payment), and your income is steady, you might want to have your bankruptcy/debt resolution attorney negotiate with the collection company.

For example, if your unpaid debt amount is $15,000, you may be able to talk the debt collector down several thousand if you pay in a lump sum. It is also possible to negotiate a payment schedule if you wish to avoid bankruptcy.

Is collection defense an option for you?

Collection defense is only appropriate if the debt in the lawsuit doesn’t belong to you, or if the lawsuit contains errors. So, if you are being sued in error, then collection defense is an option, but the reason many people opt for a different resolution is that collection defense representation can get expensive. Regardless of how much you pay your attorney, you can still end up losing the case, even if the debt collector is in the wrong. This is because NJ law doesn’t require strict proof of signed agreements when it comes to credit cards. Therefore, you may end up owing hefty attorney’s fees and still have to repay the debt in full when all is said and done if you go this route.

The only way to know for sure which direction you should go is to sit down with a NJ bankruptcy lawyer or debt resolution attorney. Often, bankruptcy attorneys also specialize in credit repair and debt resolution strategies other than bankruptcy, so look for an attorney who is well-versed in all areas in which you need assistance.