What Happens in Default?

Asset Recovery Associates pic

Asset Recovery Associates
Image: arainc.us

Specializing in consumer debt management, Asset Recovery Associates builds relationships with diverse groups like multinational banks and local stores. A common type of debt that Asset Recovery Associates handles is credit card debt, which often ends up in default due to an accident or financial setback.

When credit card debt goes into default after 180 days of nonpayment, most companies that own the debt write it off as a loss and move on. This debt is then sold to an agency that specializes in debt collection, which can contact the debtor and request payment. Defaulted debt also ends up on the debtor’s credit report, which usually brings the debtor’s credit score down drastically.

Debtors have several options for working with a collections agency and should generally try to work out some type of payment arrangement rather than avoiding repayment altogether. Ignoring debts can often lead to legal battles and wage garnishment. Paying off the debt in whole is often the best option, provided the debtor can afford it. Some debtors instead choose to work with the collections agency to settle the debt, paying a portion in exchange for discharging the remainder of the debt. Filling for bankruptcy also can provide debtors with some protections from agencies that collect on debt.

What Is a Credit Report and Why Is It Important?

 

The Firsts Steps to Debt Recovery with ARA

Asset Recovery Associates pic

Asset Recovery Associates
Image: arainc.us

Asset Recovery Associates, Inc. is a collection agency excelling in areas of consumer debt recovery and accounts receivable management. Asset Recovery Associates (ARA) has established a track record of successfully resolving debts with most of the major banks and credit card company’s in the United States.

Individuals may find themselves debt for any number of reasons. While a growing debt can begin to feel overwhelming, individuals must understand that a debt is not a life sentence and that there are always ways to re-establish one’s financial independence.

The ARA approach to debt rehabilitation begins with a face-to-face meeting between clients and debt specialists. This meeting allows individuals to detail their financial situation and collaborate with debt professionals on an effective, achievable repayment plan. Equally as important, financial professionals will treat individuals as valued clients, rather than debtors who deserve to be reprimanded for their actions.

As the debt rehabilitation process continues, clients will be afforded the chance to speak with counselors who examine how debt effects a person’s life, rather than just their finances. At the same time, financial experts review assets, spending habits, and bank statements in order to fully formulate a repayment plan. To learn more about client services, visit www.ara-inc.us.

Avoiding Debt Through Proper Credit Card Use

Asset Recovery Associates pic

Asset Recovery Associates
Image: arainc.us

 

Asset Recovery Associates, Inc. is a national collection agency that works with both consumer and accounts receivable management clients. Individuals can visit www.ara-inc.us or contact an Asset Recovery Associates (ARA) professional in order to discuss a specific debt situation.

No individual or family plans on falling into debt. Most start their adult lives with ideas of consistent and gainful employment, financial arrangements for retirement, and the timely payment of any outstanding loans. Unfortunately, pay rates and employment can change, as can a wide variety of life events. With this in mind, there are a few basic steps a person can take in order to avoid falling into significant debt.

Credit card mismanagement is one of the more common ways an individual might find themselves in debt. Arguably the most basic step toward avoiding credit card debt, or any form of debt for that matter, is simply to never charge an amount that you cannot afford. Credit cards should be viewed merely as an item of convenience, rather than an endless series of small loans. If there will not be enough cash to pay for a product or service at the end of the month, the credit card should not be used as a stand-in.

A more specific method for avoiding debt involves categorizing expenditures. Disposable items such as takeout or groceries, for example, should never be charged to a credit card. Unpaid credit items quickly generate interest and individuals should never pay monthly interest for a dinner consumed several weeks earlier.

Indeed, the interest rate of each individual credit card should be carefully examined, particularly when it comes to cash advances. These advances generally carry an exceptionally high interest rate, in addition to transaction fees and the lack of a grace period on repayment. Even timely repayments on cash advances come with built in charges that must be paid at the end of the month.

Techniques for Reducing Everyday Expenses

Reducing Everyday Expenses pic

Reducing Everyday Expenses
Image: lifehack.com

In its effort to secure payment on outstanding debts, Asset Recovery Associates works to understand each debtor’s financial situation and existing obligations. Asset Recovery Associates uses this information to help debtors find a way to afford repayment.

Repayment of a debt often involves minimization of other expenses. Although it does require discipline, this process does not necessitate undue deprivation. For example, many homeowners find that they can noticeably cut energy costs by weather-stripping windows and sealing air ducts, switching to a programmable thermostat, and using energy-efficient light bulbs.

Similarly, car owners can reduce the significant costs of ownership by reducing maximum speed to 55 mph, which can improve gas mileage by up to 17 percent if one’s typical maximum speed is 70 mph. Removing excess cargo weight can also improve fuel efficiency, as can properly inflating tires.

Consumers can reduce expenses at the grocery store simply by sticking to a list, as doing so tends to reduce impulse buying. Coupon use and a bit of market research can help a buyer to find the best prices for the same items, and purchasing less costly versions of similar items can have a similar result. Buyers may also find that fresh ingredients ultimately cost less than prepared foods, as well as result in tastier meals.

Debt Buyers Association International Hosts 20th Annual Conference

Debt Buyers Association International pic

Debt Buyers Association International
Image: dbainternational.org

Located in Lombard, Illinois, Asset Recovery Associates, Inc. is a debt consolidation firm that specializes in accounts receivable management and consumer debt recovery. Since April 2012, Asset Recovery Associates, Inc. has maintained membership with Debt Buyers Association (DBA) International.

Established in 1997, DBA International is a nonprofit trade organization that represents more than 575 companies that work in financial services fields, such as collection agencies, debt buying firms, and law firms. It offers its members networking, educational, and business development opportunities at a variety of events.

One of the events sponsored by DBA International is its annual conference, with the 2017 conference scheduled for February 7 through 9 at the Aria Resort and Casino in Las Vegas, Nevada. Now in its 20th year, this conference gives attendees a chance to meet current clients, establish new ones, and create new business opportunities. Typically attracting more than 1,100 attendees, the annual conference highlights more than 100 exhibitors that work in the debt buying industry. Attendees also have an opportunity to garner a total of 16 continuing education (CE) credits during the three-day event.