The economic recovery in the United States is one of the best in its history, and for Americans this means a new wave of opportunities waiting. Since the recession began six years ago, millions of individuals have lost their jobs or their businesses have failed. As this country moves forward, many of these people have taken on second jobs to help make ends meet and provide for family needs. In order to keep up with life and provide for their families, these individuals are now living on a very tight budget. If you know someone who is struggling to make ends meet and would like to offer him or her some financial relief, here are some tips on how you can offer them some economic recovery payment protection.
There are two main types of debt: secured and unsecured. Secured debt refers to mortgages, car loans, credit cards and personal loans. Unsecured debt on the other hand, comes in many forms such as back taxes, student loans, IRS back taxes, overdue utility bills and credit card debt. Typically, when individuals get behind on making payments on their unsecured debt, collection agencies start calling and sending notices, often threatening to send them garnishments on their wages if they do not pay. Economic recovery payment protection insurance can help an individual to avoid having to deal with creditors, collection agencies and wage garnishment.
One way you can protect your economic recovery payment is to set up an Individual Voluntary Arrangement (IVA). With an IVA, you will enter into a contract with a third party, agree on monthly payments and terms, and request that the creditor stop all collection activities. The creditor agrees to the arrangement and agrees not to take any further action in connection with the debt. Once your IVA has been settled, you can collect your payment directly from the debtor via mail.
You can also set up a final economic recovery payment protection plan through your company. If you work with a reputable and established company, it should be able to set up an IVA or settlement for you through their plans or policies. In these cases, you will likely have to pay a fee upfront and agree to set up future payments in the event you do not pay your debt in full. For this reason, it is typically better to use a professional company rather than an attorney, as attorneys may try to persuade you to go beyond what your IVA states.
There are a number of different ways you can set up your own economic recovery payment protection plan. The easiest and most affordable option is to arrange a payment solution through your company. If you decide to enter into an IVA or settlement, a payment solution that the creditor and agency come to terms with should be arranged before your debt is due. In some cases, you may be able to arrange a one-time payment to clear your debt immediately. For many, this is preferable because it keeps the threat of garnishment in mind and frees up cash for other things.
Another option is to set up a discretionary payment system where you set aside a specific amount each month, based on your income, to be paid directly to the creditors. Once your debt is paid in full, the creditors will return the amount specified in the economic recovery payment arrangement. This can be a good way to avoid late fees and interest charges when you . . . . . . make your monthly payments. You can also set up a regular payment system where a certain portion of your income goes towards your loan balance and the rest is given to the creditors.