Debt settlement or reducing credit card and unsecured debt is rapidly becoming one of the new financial planning strategies! Reducing credit card debt, unsecured debt or debt settlement is something we see or hear about everyday now. With the trillions of dollars of unsecured debt consumers have racked up on their credit cards how much could the MasterCard & Visa credit cards of the economy stand to write off and still be solvent? Who knows, but one thing's for certain, only a fraction of the total unsecured debt owed on credit cards is being settled from the credit card companies by credit card holders.
For the Mortgage & Real Estate Professional negotiating credit card and unsecured debt could become a very important tool for a certain portion of their clients. Credit card debt not only reduces a families wealth, credit card debt could also make it difficult to qualify for a mortgage. How many times do we see where too much credit card debt works against the mortgage applicant as too much DTI to qualify for a mortgage? With this debt settlement product in their arsenal the Mortgage/Real Estate Professional could put their clients credit card debt into a 24 - 48 month program to help mitigate their excessive credit card balances. Then followed up with a minor credit repair program
With this debt settlement tool not only do have we the products to help our clients, but the resources for us to earn business from them and help them in many ways. There's no license required to provide this debt settlement service and we encourage anyone who would like to help your family and friends get out of debt or get out of debt yourself contact us now. This service applies not only to credit card debt, but ALL unsecured debt.
When one negotiates or settles unsecured or credit card debt with your credit card company to reduce your credit card balance, you may still be responsible for the sum that was forgiven. For instance, if you had $10,000 worth of credit card debt and the credit card company reduced it to $6000, the IRS is likely to tax you on the $4000 you didn't have to pay the credit card company. A debt forgiven will not be forgiven by the IRS. The agency considers it earned and taxable income. You will most likely receive a 1099C from the credit card company however; some companies will not fill out the 1099C, but still report it to the IRS. Therefore if you have had debt settlement, please explain the situation to the tax preparer, even if you did not receive the form 1099C. Sometimes you may not receive the form from the credit card companies for up to two years after the debt settlement has occurred. Some mortgage loan modifications may be considered debt settlement.
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