Many US companies fear rise in debt costs Financial Times
Against a backdrop of market volatility fuelled by sovereign debt worries in the US and Europe, the results highlight how the US downgrade has the potential to affect corporate financial performance and decision-making over the longer term.
The survey also showed that 80 per cent of corporates that held US Treasuries as part of their cash management strategies would not change their holdings as a result of S&P’s decision.
Craig Martin, head of the Treasury practice at the Association for Financial Professionals, said: “The last thing companies need is any tightening of credit ... If your cost of capital might go up as you plan for 2012, that’ll put a dent in your growth.”
Highly rated companies, including Warren Buffett’s Berkshire Hathaway and Procter & Gamble , the consumer goods maker, rushed to sell bonds this week while their borrowing costs remained historically low.
P&G priced three-year bonds with an annual interest payment of 0.7 per cent, the lowest ever for a three-year corporate bond, while Berkshire’s five-year debt was a record low for the company at 2.2 per cent, according to Dealogic.
RIL to be a zero debt company by FY12 end
Reliance Industries, India's largest private company, will be debt-free this year, Chairman Mukesh Ambani told shareholders at the company' ...
How do you feel about the debt settlement companys??
Hello to everyone,
I was wondering your opinion on the debt settlement companys.. The company we are considering going with so that we dont have to file bankrupt has an EXCELLANT report from the better business bureau..... I have read through all the sites and everything and this seems like a good idea so that you can "settle" your debts and get out of debt quicker.... we are in credit counseling now but Its taking forever and we cant afford it anymore... But we can afford the payment that the debt settlement is asking for... Just wanted to see some of your opinions.. Thanks
I'm a bill collector for 10 years now. I've had 1000's of people who have chosen to go with settlement companies. Some are legit, and some I've heard kept the money people have accumulated and not settled any debt, and also refused to send the money back to the customer. Like anything else, buyer beware! Do a full backround check with BBB with whomever you choose. Read their terms carefully, as well. I don't know who or what type of bill you owe, however, I suggest settling with your creditors yourself. Settlement companies can' t protect you from lawsuits, accruing interest or other charges. Basically they don't care about that, it's just a matter of getting around to your settlement when you have enough $ and if not there's nothing they can really do for you in terms of protecting you legally. Their 'power of attorney' does not do much to help you except to direct all collection calls to them, not you. If a creditor is going to sue, they'll sue irregardless of debt settlement companies involvement. If you live in a 'wage garnishment' state also be aware. Your state laws in regard to owed debt means the difference between lawsuits and liens, or protection from them.
What has happened to the way people live, to cause so many debt loan companys establish?
Credit is thrown at you from every direction and the buy now pay later seems easy. People dont save anymore they want it and then want to pay for it after, ok for some things like interest free credit. I think the main problem is the lack of education. If you ask someone how much they owe they will say for eg £30,000 I bet if they added it up correctly and looked properly it would be nearer £50,000. If credit was taught in schools basic things like how to work out apr,s and the amount of interest you would pay on a credit card if you only made minimum payments then they may be less quick to take these hugely expensive forms of credit. I think we are heading for a debt crisis. More bankrupcys are going to happen because the iva is becoming too difficult due to creditors putting unrealistic criteria, and some that are approved are unrealistic and doomed to failure which usually results in bankrupcy. The government needs to step in and stop things like the tix which is a group of creditors allowing one company to vote for them which can leave someone with no chance of acceptance and they are also dictating fees which could result in some insolvency practioners not taking on the lower amount iva's because they will not get enough to cover their costs thus leaving some with no option other than to struggle on or go bankrupt, with the possibility of losing their home.
Credit is ok if you know how to use it correctly and to your advantage. These debt companys have sprung up because there is a need for them, the problem is sorting the good from the bad. If you are struggliong with debt find a good insolvency practioner, dont go for the ones on the telly they are more like a production line and for this type of situation you need a personal service.
For the foolish ones, the lure of buying $10,000 worth of stuff and only having to pay $200 per month for it sounds like heaven on Earth. It isn't until much later that they realize, or even care, that it will take them 20 years of $200 per month to pay off that $48,000 debt. Now that $10,000 worth of stuff doesn't sound like such a bargain any more.
Ohh, the world is comin' to an end my dear sonny boy. It's a conspiracy, we're all goin' ta hell..
So basically there living higher than there means.
If they are buying a house,they think it is prudent to mortgage themselves up to the hilt because the increase in property prices will make it worthwhile when they sell.
It is such short term thinking. I help people who have borrowed against the equity of their house, bought new 4x4s, expensive holidays,ate out in restaurants etc and now the interest rates have gone up, they can't make the repayments.
These debt consolidation companies are doing no more than the CAB does or any other of the debt charities except they are charging you where the others are free. They are profiteering out of your misery.
I am sure you have seen the advert on television where some twit borrows £25,000 and thinks nothing of it. That loan will cost them £48,000.
And if they default on the loan because of unemployment,illness etc, they have effectively sold their house for £25k! because the loan is secured against the house. The family end up homeless and facing bankruptcy.
Add it all together, the huge mortgage that can swallow 40% of your take home income, the credit cards because you needed a holiday.
A designer dress in the sales, you have no money,open a store card account. No problem.
Food shopping for the family for a month in Sainsbury's, £250. Help, we have no money left, ask the bank for an overdraft. You exceed it or payments are refused due to lack of funds, £39 each out the family income.
Council tax,water rates,television licence,gas and electric bills,petrol to get to work for a month,pocket money for the kids, and it goes on.
It frightens me. I see the result of people living beyond their means, their homes repossessed, sitting in bus shelters because the council B&B is full. Was it worth it?.
anybody come across any debt companys that are actually good??
anybody come across any debt companys that are actually good??
Only the ones that I own :D
That money comes from banks that probably already gave you a loan or credit card or three in the first place.
This site has well recommended debt management companies and you can get free advice:
http://bestukloans.co.nr
If you are in debt seek advise from your local C.A.B , they do the same job , but for free
what do you think is the best way to advertise my companys debt settlement program?
Talk with your local Free Legal Aid office to see if they have anyone in need of your services for free in desperate cases and discounted in others. This way if you are a legitimate and decent operation you will establish credibility and a reputation. You will have three things; Verifiable References, Word of Mouth Advertising and a Source of Clients. If this works out for you you'll decide about internet or other forms of media advertising. Good Luck.
does anyone know about any good debt consolidation companys?
got about $4g in bills!!! I just got out on my own and have a family. Hard times.
I need a clarification - do you have 4g in BILLS EVERY MONTH or 4g in TOTAL DEBT?
I wrote the answer below assuming it was 4g TOTAL DEBT, but please clarify with an update to your question!
Most of the companies are looking out for themselves, not for you. And don't let any of the spammers that shill for consolidation companies in Yahoo Answers tell you otherwise (one or two will show up in this question).
My recommendation, for a first step, is to call each of your creditors and just tell them you've seen a lot of competitive interest rates out there, is it possible they could reduce yours.
Don't apply for more credit, but if you have a card with lower interest and some availability, and IF Balance Transfers are free, move some money off a high interest card.
Unfortunately, getting a loan for consolidation is pretty tough right now, but believe me when I say friend, 4g is not a big deal, a lot of us have much, much more. You did a great job realizing it was a problem before it became too big of a deal.
if you have mortgage then maybe it might save you to consolidae against that.
otherwise get a loan, at an affordable rate, and a price you can afford, even if it will take a bit longer to pay off.
if you take a loan out that costs too much, you wont be any better off, and may find yourself looking for credit elsewhere.
id draw up a tight budget plan and stick to it! get yourself some little envelopes and plan for all of your money!
of course i know i havent given you info on any companies who offer debt consolidation, and for this i appologise x
Debt consolidation companies take your monthly payment that you make to them and they withhold it for one or two years and than they give the money to your creditors or collection agencies INSTEAD of making your payments to creditors on monthly basis.
I would consolidate credit card debt with companies that are NON-Profit, which means they take your money and pay your creditors and each month you make your payment they pay the creditors and will have your credit card balances reduced and it will show on your credit that your paying and your FICO score will go up as a result. Keep in mind that to certain extend it does effect your credit report while your on debt consolidation with either a non-profit agency or a company. So do consolidation with NFCC. I've included the link for you to follow and do your research before you take that step.
Hope this helps!
You should not take the decision to consolidate lightly. Definitely look carefully before you leap.
Choose consolidation only after careful evaluation of your situation and alternatives.
I know that $4,000 seems like a lot of money and, if you are already falling behind in your payments, consolidation may be an appropriate choice. However, be careful about making that decision.
Debt consolidation can either help or can seriously hurt your credit, depending on how the consolidator goes about consolidating your debts. The damage can be temporary and consolidation, properly done, can improve your credit in the long run. However, done wrong, the damage can be severe and long-lasting.
Before you decide, do some homework. Make a list of providers of those services that are available to you and check them each out.
I recommend that you not only look at “Consolidators” or “Debt Management Programs” but also consider Credit Counseling.
Once you’ve developed a list of potential agencies in each category you are considering, check them out with your state Attorney General, local consumer protection agency, and Better Business Bureau.
These sources can tell you if consumers have filed complaints about them.
Do an online search (Google, Yahoo, or some other search engine) to see if there are reports or blogs about the Credit Consolidator or agency you are considering.
The Federal Trade Commission (FTC) also has a wealth of information about what is available and what to look for. (Please remember that, even if there are no complaints about them, that is not a guarantee that they are legitimate.)
After you have done your background investigation and narrowed the field, it is time for the most important research — you should interview the final “candidates.”
Ask for references of people the consolidator, debt management program or credit counseling agency has helped and try to contact them.
If an organization you are considering will not give you references, run, do not walk, away.
Reputable consolidators or credit counseling agencies should offer free information about themselves and their services, without requiring you to provide any details about your situation.
If a firm does not do that, consider it another red flag. You go elsewhere for help.
Consider seeking Credit Counseling, before you make the decision to consolidate or enter a debt management plan. Credit counseling services should be able to help you determine whether consolidation is really best for you.
Credit counseling services can be very helpful to your decision-making process. However, you want to check them out as thoroughly as you would check out your consolidator.
Reputable credit counseling organizations advise you on managing your money and debts, help you develop a budget, and usually offer free educational materials and workshops.
Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting.
Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.
Whether you are interviewing credit counselors or consolidators, be sure to ask questions.
Do not look at it as if you are coming to them for help. Look at it as if they are applying to you for a job. Do not be afraid to ask questions.
Here are some questions you might consider asking. They can be adapted to either a credit counseling interview or a consolidation interview. Remember, make them prove their worth! They want the job you are considering offering them.
•What services do you offer? Look for an organization that offers a range of services, including budget counseling, and savings and debt management classes.
Avoid organizations that push a debt management plan (DMP) or consolidation as your only option before they spend a significant amount of time analyzing your financial situation.
If consolidation or debt management is their sole service, they may overlook some other option that would actually be better for you.
•Do you offer information? Are free educational materials available? Avoid organizations that charge for information.
•In addition to helping me solve my immediate problem, will you help me develop a plan for avoiding problems in the future?
•What are your fees? Are there set-up and/or monthly fees? Get a specific price quote in writing.
Caution: DO NOT LET THEM FORCE YOU TO DECIDE NOW!
Think of it as buying a car. You want to shop to determine what is best for you.
•What if I can’t afford to pay your fees or make contributions? If an organization won’t help you because you can’t afford to pay, look elsewhere for help.
•Will I have a formal written agreement or contract with you?
Don’t sign anything without reading it first. Make sure all verbal promises are in writing.
•Are you licensed to offer your services in my state?
•What are the qualifications of your counselors?
Are they accredited or certified by an outside organization? If so, by whom? If not, how are they trained?
Try to use an organization whose counselors are trained by a non-affiliated party.
•What assurance do I have that information about me (including my address, phone number, and financial information) will be kept confidential and secure?
•How are your employees compensated? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution?
Debt consolidation has gotten a bad reputation recently, because many of the programs actually hurt your credit in the short run.
This is not to say that their long-term benefit does not outweigh the short-term damage.
A properly handled consolidation may be able to boost your credit score in the end, since creditors like to see you manage your debt properly and debt consolidation can be a wise choice.
However, with a family, you should seriously evaluate your likely short-term credit needs before electing a consolidation.
I know that $4,000 seems like a lot, but it is not necessarily unmanageable and you should really look to see if you have other alternatives before electing to consolidate.
Bottom line is, if you do decide that consolidation is the answer, you should be very careful.
Be sure to pick a consolidation company you can trust.
Get references.
Check them out.
How long have they been in business?
What kind of credentials do they offer?
Who will be doing the work on your account?
Above all, insist on getting a written guarantee that they will not harm your credit.
what are the best debt releif/debt settlement companys?
really want to avoid bankruptcy!
If you think this is the better option you are completely wrong. this will cost you more money and hurt your cedit much worse.
i have been a mortgage broker for years and its a nitemare when i see what people pay these companies. they put you in a payment plan and you pay a monthly fee and while they are trying to make a deal with the companies the creditors are still reporting badly against you they end up making more money and after your done you could have paid the debt off completely.
if you cant make a deal with the credit card companies then file for a bankruptcy. generally if you end up paying the debts back its at .20c on ever dollar you owe!
its not that bad i have financed people one day out of bk. A bk is a court ordered deal and once the bankruptcy is discharged your credit will start to climb.
do not use debt settlement companies you can make the calls yourself and get as much done and have more money in your pocket.
believe someone that reads credit reports every day the bk wipes the slate clean the settlement companies dont remove that suff so youll have years of late payments formthese companies you owed on your credit in the end.
the bk is the only wy to get it done legally and let your credit recover
can you file baknrupty and combine your own companys debt with your own or must they be separate?
Separate!
Two different things, personal bankruptcy and corporate bankruptcy
debt consolidation companys?
are debt consolidation companys a good idea? i am 23. i have made some big mistakes with credit cards and need to take care of this situation so i can live in peace already. i have roughly 10,000 in credit cards and i want to be able to make just one payment and get my stinking credit up already. anyone have any helpful advice if it is a good idea???
debt collection companys?
when debt collection companys buy the original debt of the loan company what percentage would they pay for the debt,ie if the debt was for ten grand what would they pay for this as a member of my family had this happen and they said that she could pay off the debt for half that amount so i am currious to know the answer....thanks
my question is i have like $3,000 worth of debt between 4 companys .I currently dont have a job and need to do?
something fast .What could i possibly do to get them off my back?I tried talking to them but that never works.
What You Should Know About Debt Negotiation Companies
Do you have credit card debt? Then you know the stress it can cause in all areas of your life. The sooner you get help with your debt, the more options you will have, because some options are more ideal than others. Waiting increases the chances that you will not be able to use a credit friendly debt relief plan.
One of the options for getting out of debt is settling credit card debt. This is a debt relief method that reduces the balance owed on the account through a negotiation process with the lender. There are no set figures with this kind of program. The debt reduction amount varies from 30%-70% generally, but the lender can pretty much give you what they want.
Debt negotiation companies can be quite expensive and it is important to know who you are doing business with. Some of these companies can be on the shady side. This type of debt relief is not credit friendly and you will have to pay taxes on the amount of debt that is written. So, there is a lot to consider if you are thinking about using a debt settlement company.
Another popular alternative for debt relief is credit counseling. This method of debt reduction credit card consolidation reduces your interest rates and eliminates your fees. Your unsecured debts are consolidated, so that you will only have to make one payment each month. This method of debt elimination will have you out of debt in 3 to 5 years.
The stress of debt can be debilitating. It is important to make a decision about managing your debt as soon as possible. You will have more desirable options in the early stages of debt problems. If you wait until you have missed several months of payments, you will have limited choices. Get a free quote for debt relief today!
This author enjoys writing about health and finance. Visit her latest publication where you can read more about the Supply Chain Management Courses and Supply Chain Management Review. Also, get more information on Green Supply Chain Management.
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