Avoid Debt From Medical Expenses – Andrew Housser, Co-CEO, Freedom Debt Relief

HealthNewsDigest – Health care is in the headlines these days as President Obama and Congress attempt to make health care costs more affordable for Americans. The effort is for good reason: Medical bills are one of the leading causes of debt and bankruptcy.

While the politicians debate, you can take action for yourself and work to avoid being a medical debt or bankruptcy statistic. Here are 10 ways you can take action and begin saving on medical care right now:

Keep up to date with checkups – Don’t skimp on care to save a few dollars, especially if a health condition requires regular monitoring. Also be sure children get all necessary vaccinations. Taking simple measures like these will keep you out of long-term debt. How to save: Many insurance plans cover well-child and preventive care visits with a low or no co-payment. Or look into health care clinics (such as those offered at some drug store chains) for discount exams and vaccinations.

Read the full story here.

Freedom Debt Relief Execs Participate in FTC Panel

Freedom Debt Relief (FDR) continues to lead industry efforts to assist and educate those federal and state agencies that have authority to regulate the debt settlement sector – with recent efforts extending to the Federal Trade Commission.

This past week, Andrew Housser, co-founder and co-CEO, and Robert Linderman, general counsel, participated as panelists at the FTC’s public forum on “Debt Relief Amendments to the Telemarketing Sales Rule.” The forum, which took place in Washington, D.C., Nov. 4, discussed proposed fee regulation, and rules to eliminate deceptive and abusive telemarketing of debt relief services.

The executives provided detailed insight into the direct effects the FTC’s proposed advance-fee ban would have on consumers, as well as data on FDR’s record-breaking settlement rates. They also presented context on the debt settlement sector, speaking to the complex legal issues that flow from trying to use regulations that govern telemarketing activity to regulate the debt settlement industry.

Quoting from the comment letter FDR submitted in response to the FTC’s Notice of Proposed Rulemaking, Housser explains that “it is not in the interest of consumers for the FTC to impose a ruinous ‘advance-fee’ prohibition on FDR and other debt settlement companies…when the Agency can address perceived abuses more directly – and without substantial adverse impact – through more traditional regulation of marketing practices, such as prohibiting unsubstantiated claims of success or misrepresenting services provided.”

He points out that FDR clients derive significant benefit throughout the debt settlement programs, including personal finance education, budgeting and other resources, as well as ongoing settlement services. In fact, since inception of business operations, FDR has settled more than 100,000 accounts for more than 70,000 clients, representing more than $506 million of consumer debt (based on amount owed at time of settlement). The company has achieved average debt reduction of 55.3 percent of the amount owed at the time of settlement – a figure that correlates to an average settlement rate of 44.7 on the balance owed.

FDR is a strong supporter of the fee-regulation approach taken by the Uniform Debt Management Services Act, the model statute regulating the debt settlement industry. This approach, says Linderman, empowers states to regulate fee limits and practices in the context of what those states believe to be in the best interests of their citizens. “In the debt relief industry, that means consumers can choose between a contingency fee model and fixed-fee structure – whichever they believe will work best for them.”

“We commend the FTC for kick-starting the debate on the nature and scope of appropriate regulations for the debt relief services industry,” Housser says. “We share the FTC’s goal of advancing consumer protection, but want to ensure that any regulations do not have the unintended consequences of driving the good companies – those that are dedicating to providing quality services to consumers – from the market.”

At the forum, Housser, representing The Association of Settlement Companies, and Linderman, representing FDR, joined a dozen other national panelists, including representatives from the Federal Reserve Bank of Philadelphia, Consumers’ Union, the Cox School of Business at Southern Methodist University, the National Conference of Commissioners on Uniform State Laws and the National Association of Consumer Credit Administrators.

Freedom Debt Relief Sets Record for 2nd Month in a Row

Freedom Debt Relief (FDR) settled a record $28.6 million in consumer debt during September, besting its previous month’s record by more than 5 percent.

The settlements represent savings of close to $17 million on 5,207 accounts for FDR’s clients. Since the beginning of the year, FDR has settled $206.4 million in debt, saving $120.5 million on nearly 40,000 client accounts.

The results that FDR’s settlement team obtained in September represent an average savings rate of 58.7 percent of settled debt (total client debt balances at the time of settlement, before program fees). In other words, FDR clients paid an average of just 41.3 percent of the total debt amount they owed at the time of settlement, thereby saving millions of dollars.

Freedom Debt Relief Becomes First in Industry to Obtain Debt Settlement Licenses in Delaware, Iowa, Minnesota

Freedom Debt Relief (FDR) has become the first debt settlement company to become licensed in the states of Delaware, Iowa and Minnesota.

The new licenses expand the company’s business operations to 34 states. “We are proud to be the only licensed debt settlement company in these states, able to help consumers in serious debt,” said Andrew Housser, co-CEO of FDR.

FDR negotiates directly with creditors on a consumer’s behalf to resolve that consumer’s debt balance. Settlement amounts are often up to half of what a consumer owes. Offering qualified clients an alternative to credit counseling, debt consolidation, and bankruptcy, FDR’s debt settlement programs typically help clients resolve their debts in two to four years. The programs, according to Housser, are best suited for individuals who have serious debt issues, struggle to make minimum payments, and would otherwise consider bankruptcy or credit counseling.

The company, which has led efforts to propose legislation to regulate the debt settlement industry, is one of the first in the debt settlement industry to apply and receive licenses as states adopt new laws. FDR works closely with several state legislatures to protect consumers’ rights, and Housser himself sits on the board of The Association of Settlement Companies – the leading association for the debt settlement industry – and has played a lead role in promoting new consumer protection laws in many states.

“We continue to see a problem with transparency in the debt settlement industry, and we want to be a leader in helping change this,” Housser said. “Our goal is to ensure that consumers have all the available information and can make decisions based on their needs, not predatory practices. We are proud to be a leader in establishing guidelines, standards and laws to help consumers who need our services the most.”

FDR is experiencing record-breaking success for its debt settlement clients, said Housser. In the first eight months of this year alone, FDR settled more than $175 million in consumer debt, saving its 35,000 clients more than $100 million. “People are turning to restructuring their debt through debt relief programs as the economy struggles to stabilize,” explained Housser. “With unemployment and credit card charge-off rates both approaching 10 percent, we see increasing demand for debt advice and debt counseling. More than ever, people need information about credit cards, credit scores and debt relief alternatives.”

About Freedom Debt Relief
Freedom Debt Relief provides consumer debt settlement services. Working for the consumer to negotiate with creditors and lower principal balances due, the company has served more than 60,000 clients since 2002. Freedom Debt Relief is a wholly owned subsidiary of Freedom Financial Network, LLC (FFN).

Based in San Mateo, California, FFN also operates offices in Sacramento and Tempe, Arizona. The company, with 550 employees, was voted one of the best places to work in both the San Francisco Bay Area and the Phoenix area. Company co-founders and co-CEOs Andrew Housser and Brad Stroh were named to the Silicon Valley/San Jose Business Journal’s “40 Under 40″ list in 2008, and are recipients of the Northern California Ernst & Young Entrepreneur of the Year Award.

Freedom Debt Relief – Tips to Save on Household Expenses

Most of us may know that the cost of running a household keeps increasing. Daily expenses such as food and utilities may be taking a larger portion of our income each month. Read some tips on how to save on a few common expenditures.

Debt Relief Options

Financial liability can make you think like you’re chipping away at a big heap with a small pickaxe.

That’s where Freedom Debt Relief comes in – they offer debt relief through Debt Settlement programs. For those who have around $10,000 in outstanding debt, they offer a range of settlement services intended to help you get your finances and your life back on track.

Their “Debt Reduction Program” is an innovative solution for consumers struggling with large debt burdens and who need debt relief. Freedom Debt Relief uses debt negotiation with a goal of dramatically lowering your debt levels with the goal of saving you the most possible money and to get you debt free in the shortest amount of time.

They may be able to help you save more money than simple Consumer Credit Counseling while protecting you from the harsh impacts of bankruptcy. They have the best solution for most consumers with serious debt concerns.

Time is Right to Refinance a Mortgage, Bills.com Says

SAN MATEO, Calif., Sept. 2, 2009 – Mortgage interest rates are staying low, making home refinance appealing for many Americans, said Ethan Ewing, president of free online consumer portal Bills.com, and that means it is a good time for home owners to make the most of what might be their biggest debt.

With mortgage interest rates continuing to be among the lowest in homeowners’ lifetimes, more Americans are refinancing their mortgages. In fact, through July of this year, Freddie Mac and Fannie Mae had refinanced 2.9 million home loans. The vast majority of refinanced loans were fixed-rate mortgages, whether the original loan was an adjustable-rate mortgage (ARM) or a fixed-rate mortgage.

“The good news for borrowers is that 30-year fixed-rate mortgages have been available at interest rates just one-tenth of a percentage point higher than ARMs, offering much greater stability with a long-term rate,” said Ewing. “Some borrowers have been able to save even more by refinancing from a 30-year mortgage into a 15-year term, meaning they will be able to pay the loan off much sooner – with much less interest paid – and still obtain affordable monthly payments.”

Individuals who are considering refinancing in the coming months should consider these do’s and don’ts before starting the process, Ewing said:

1. DO spruce up credit scores: “Check your score before applying for a refinance,” Ewing said. Interest rates vary depending on the borrower’s credit history, with the best rates going to those with credit scores of at least 740. Those who can wait a few months to refinance can attempt to strengthen their score by paying all bills on time and paying off as much debt as possible.

2. DO think about a shorter-term mortgage: Individuals and families who can afford to pay a little more every month on their mortgage might want to refinance into a 15-year, rather than 30-year, loan. The monthly payment will be higher, but the interest rate will be lower (currently, about one-half percent lower) and overall interest will be less. Additionally, those who have already paid their mortgage for several years will find that choosing a shorter term will avoid “resetting” the length of time until payoff.

3. DON’T stretch beyond your means. Standard guidelines call for keeping housing expenses below 35 percent of total income, and borrowers are wise to stay within that limit. “Be certain that a new mortgage payment will be affordable,” Ewing cautioned.

4. DO consider paying points: Points (or discount points) are a percentage of the purchase price paid upfront to obtain a lower annual percentage rate on the loan. Buyers who plan to stay in the home a long time might find that paying points makes sense. Those who do pay points will find that they usually are tax-deductible on a federal income tax return.

5. DON’T forget private mortgage insurance (PMI). Mortgages with less than 20 percent equity require PMI in case the owner defaults on the loan. If a refinance puts a borrower below 20 percent equity, the lender will add PMI requirements — either as a monthly payment, as an up-front payment, or both. When the home owner pays a conventional mortgage down to 80 percent or less of the home’s value, he or she can request the lender to cancel the PMI and then be able to stop paying the additional amount. Meanwhile, PMI is tax-deductible, at least through 2010.

6. DON’T count on a high appraised value: These days, lenders are very cautious about overvaluing homes. Appraisers are acting very conservatively, relying on comparative property sales figures from very recent sales. To get the best refinance deal, buyers should have equity totaling at least 20 percent of the appraised value.

7. DON’T rule out government programs. If the home’s value has seriously dropped or you have an ARM on which payments have skyrocketed, federal government home loan programs might be able to help. The Making Home Affordable Refinance Program (HARP) allows borrowers with mortgage debt of 80 percent to 125 percent of the home value to refinance, in some cases without paying additional PMI. Visit http://makinghomeaffordable.gov/ for information.

“With mortgage rates still in the low 5-percent range, it is a great time to refinance a home,” Ewing said. “By following these suggestions, homebuyers can be well prepared to make their biggest investment — their home — an even better value.”

About Bills.com (www.bills.com)
Based in San Mateo, Calif., Bills.com (www.bills.com) is a free one-stop portal where consumers can educate themselves about complex personal finance issues and comparison shop for products and services including credit cards, debt consolidation, insurance, mortgages and other loans. Bills.com holds the No. 273 spot on the Inc. 500 list for 2009.

Bills.com and its sister companies, Freedom Debt Relief and Freedom Tax Relief, are wholly owned subsidiaries of Freedom Financial Network, LLC. The company has served more than 50,000 customers nationwide since 2002 while managing more than $1 billion in consumer debt. Its RSS feed is available at http://www.bills.com/news_releases/.

Bankruptcy Credit Counseling – Ways to Avoid Bankruptcy

There are several options available for you if you are in credit card debt and do not want to declare bankruptcy. One option is obtaining a debt consolidation loan and closing all existing credit lines.

Debt consolidation is where you take a new unsecured loan and use the funds to pay off your outstanding debts. All this does is revolve your debt so it’s not really a wise choice.

What an unsecured debt consolidation loan will do is consolidate all your unsecured debt and help you avoid bankruptcy. This new money can save you hundreds of dollars per month if you choose to use your loan to pay off existing debt – especially high rate credit cards. Even if you don’t own a home, you could qualify for their debt consolidation loan. But don’t forget now you will have to pay this loan back.

Debt consolidation loans are repayable over a longer term at a relatively low interest rate. This means that the monthly repayments are lower. If the loan is secured on your property then the interest rate and payments may be even lower.

But you must compare the pros and of debt consolidation loans before taking the plunge. There are two options for consolidating debts – either you borrow money to pay off all your debts or seek assistance from a debt consolidation program. Which option will meet your needs has a lot to do with whether you can qualify for qualify for low mortgage rates on debt consolidation loans, and the total
amount of debt you need to consolidate.

Borrowing for debt consolidation immediately eliminates multiple debt payments. All debt collection actions eliminated. Seeking debt consolidation services immediately decreases your monthly payments. It also brings to a stop, and in some cases, eliminates some interest
and fees. All you do is pay ONE LOW monthly payment when choosing a credit counseling program.

Debt consolidation is an excellent tool that can help you manage and
decrease your debt when you just can’t seem to do it on your own. There is no way that you can completely fix bad credit without the
ability to reduce debt and pay your bills on time. However, once your debt has reached a certain level, this can seem almost impossible to accomplish.

A credit counselor can provide you with the option of enrolling in a debt management plan, which provides immediate relief and allows repayment of debts without the high fees and negative ramifications of bankruptcy.

However, your choice has to be based upon your financial situation, as well as fit in with your own situation. A debt consolidation program is the better choice of the ones given above.

Debt Counseling Explained

* When do I need credit or debt counseling?
If you’ve fallen behind on your debts, avoid opening the mail, or are receiving collection calls, then you should consider credit counseling. You should also consider it if you’ve been turned down for a loan due to your credit score or debt load.
* Will it hurt my credit?
Credit counseling will appear on your credit report, but it’s not factored into your credit score. Lenders and creditors may be hesitant to issue new credit if the credit counseling is recent, but a bankruptcy or foreclosure will do far more damage.
* What does it cost?
The cost varies depending on the services you need. Most debt management plans include fees in the monthly payments or a one-time setup fee. The initial consultation should be free or very low cost – usually less than $50. Look for services that offer free educational materials, such as budgeting forms. If the fees seem unreasonable, investigate other services until you find one that works for you.

More about Debt Settlement

What Kinds of Debt Can Be Settled?

Credit card debt settlement is probably the most common; however medical debts and other personal loans can also be settled. Mortgages, car loans, and other secured loans can’t be settled because they are backed by collateral that the creditor can claim. Student loans also can’t be settled due to Federal law. If you’re struggling with student loans, contact your lenders to request consolidation, deferral, or forbearance.

What Are the Alternatives to Debt Settlement?

The best option is to pay off your debts in full. Debt consolidation can help reduce your interest rate or make your payments more manageable without reducing your balance or damaging your credit. You can consolidate with a personal loan or with a home equity loan, if you own a home worth more than your mortgage balance.

Credit counseling agencies also offer debt management plans. Often debt management incorporates debt consolidation, but your counselor will also negotiate for greatly reduced interest rates and possible forgiveness of late charges. You make a single monthly payment or a lump-sum payment to the credit counselor, who then pays your creditors as agreed.

Before you consider settling your debt, see if debt consolidation or management will work for you. When it comes to your credit, it’s always better to pay as much as you can.

For more resources on Debt Settlement, please visit Freedom Debt Relief