Debt Elimination Programs Reviewed

Learn The 15 Debt Elimination Steps You Must Take Immediately!

2006-11-05T18:53:00.000-05:00

What Everybody Needs To Know...Learn The Truth About Debt Elimination!

Here`s how we have been taught to charge, charge, charge and promised Easy monthly payments by advertisers who seduce us into debt. So its no accident that the credit, finance and loan companies end up with most of our money, while we end up with all of the bills.

Debt Elimination tips shows how Millions of Americans are living on the edge of financial disaster surviving only on the hope of next week's paycheck. The average American is dying under a load of debt, with little or nothing building in the bank or in investments.

Debt Elimination Tips, shows how we've been misled!

See for the first time how the entire way our economy works, is designed to make you work yourself to exhaustion--simply to accumulate wealth for the companies you do business with--Not For You.

The most staggering example of this is a home mortgage. Say you bought a home with a 30-year conventional or adjustable rate mortgage, you will pay for that loan about THREE TIMES. Just multiply out your payment times 360 months and you will see that the total is about 3 times the value of the money you borrowed.

Say you buy a $250,000 home, with a $200,000 mortgage; you will end up paying about $600,000 over 30 years. This means that you will pay nearly $400,000 dollars in interest! Just for the privilege of using their $200,000.

That means that two-thirds of that total is interest. Interest is the profit the Mortgage Company makes for lending you the money to buy the house. And they feel that you should pay them back THREE TIMES. That's 200% interest!

Debt elimination tips -- Now let these words soak into your mind and heart: You will have to work...week after week...year after year...to earn FOUR HUNDRED THOUSAND DOLLARS---Just so you can give it to the bank to make them rich!

Debt Elimination Tips, Show's how bad it really is to use credit cards and to make only the minimum payments!

Suppose you bought $2,000 worth of furniture on a typical (19.8% interest with a $40 annual fee) credit card, and you paid only the minimum monthly payments requested by the credit card company (here's why they only ask for a minimum payment), it will take you 31 years and 2 months to pay it off.

Plus--In addition to the original $2,000 cost of the furniture-- you would have paid $8,202 in interest,(if you make the minimum payments) just for the privilege of using their $2,000! That's five times the furniture's value! Long after you had thrown the furniture out, you would be draining your wealth away paying for it.

Banks, finance, creditors and credit card companies have encouraged indebtedness.

According to a study by the United States Department of Health and Human Services, 96% of Americans never achieve financial independence. They end up depending on charity, family, government welfare or they're forced to keep working just to survive!

Debt Elimination Tips, Why turn your hard-earned money over to the credit card companies? When you don't have too. Follow a proven debt elimination plan!

A new survey by the American Bankers Association found that 45% of credit card holders with incomes between $50,000 and $100,000 never pay off their balances. Many others don't even make the minimum payments and fall behind on the interest. (Palm Beach Post, Oct 7, 1998)

Debt elimination tips shows how the average American will make over $1,000,000 in his or her working lifetime, and will have as much as 67% to 80% of their money Legally Stolen from them in the form of many different types of federal, state, local taxes and interest on borrowed money!

Are you tired of living paycheck-to-paycheck, month-to- month, making minimum payments, with little hope of ever getting ahead?

Debt elimination tips You Can Start Using Today!

1. Begin eliminating all debts.

2. Write down everything you purchase, determining where your money is going is half the battle on your road to becoming debt free and critical to your future financial success. Seeing it in black and white can give you a new perspective.

3. Pay cash whenever possible.

4. Cut up and cancel all your credit cards, Using a debit card instead of a credit card gives you all the convenience of a credit card but withdraws money immediately from your checking account, so you can not dig yourself back into debt.

5. Never fall into the habit of making only minimum payments.

6. Pay the most you can afford.

7. Put money-saving tips into practice, when possible shop at outlet malls, wholesale clubs and take advantage of coupons.

8. Avoid the trap of thinking in monthly payments.

9. Consider the total cost of purchasing goods and services on credit and compare that with cash savings. You'll pay cash every time.

10. Compare the interest charged on your debts with the interest earned on your savings and investments. You'll find it makes more sense to resolve all debts before beginning a savings or investment program.

11. Debt consolidation loans: be very careful your monthly payments will be lower, but you may lose in the long run, because those lower monthly payments will be spread over a longer period of time. If you don't change your spending habits Now, you could easily end up in worst trouble down the road!

12. Bargain for a better deal: Don't be afraid to negotiate with your creditors many will be willing to Freeze your interest on your outstanding balances in return for automatic monthly payments.

13. Avoid the Quick-Fix companies. Many will charge you a lot of money Up Front, but very few will genuinely help you in the long run.

14. Don't promise away your future income by cashing out part of your retirement savings early to pay down your current debt. You will have to pay Current federal and state taxes, Plus an early withdrawal penalty on that money. You are borrowing against your future, just to pay your current debts and to continue Living a lifestyle beyond your means.

15.Avoid filing for bankruptcy.

http://www.debt-elimination-program-reviews.com is run by Vincent Dail. They review and then list some of the best debt elimination, programs, software and books available online!

Building Credit Ideas

2006-08-27T22:38:00.000-05:00

There are several ways that we can build credit. If you are
tired of collectors hounding you, or if you are frustrated that
no one will loan you money because you never had credit, it is
time to learn how to build your credit. First, and foremost
never purchase items you do not need. If you 'want', do not let
your wants wear you down and get you deeper in debt. If you are
searching to build credit and have no history at all, make sure
you have your priorities in order.

Bad Credit Building Credit

If you have, bad credit get a DO-IT-YOURSELF-Kit and gets the
balls rolling. You can go to your public library and get books
that will guide you through the steps of repairing your credit.
Most libraries allow you to copy and print forms that you must
fill out and then send to your credits.

There are systematic guides at your local library that has the
tools for instructor debtors how to write letters to creditors.
Letters are probably better than phoning creditors, since some
creditors could care less about your situation and may threaten
you. Another good reason for writing letters is that (copy in
writing) is more valuable in a courtroom than a conversation on
the phone. If something is said or an agreement is reached and
the creditor later denies his or her claims then you can
present this to any courtroom and they will listen to you
first. Any documents that pertain to your credit history should
be stored in a safe area. If you send letters to your creditors
keep a copy of each letter sent and store it in a safe area. If
you notice any errors on your bills or credit, reports make sure
that you contact the appropriate professionals and dispute the
charges immediately. If you have credit cards and used the card
to purchase an item or use a service and this person sold you a
defected item or else provided bad service, you DO NOT have to
make payment toward the charges. You do however have to dispute
the charges with the services or stores that sold you the
product or service. If the sources refuse to give you an item
usable, or else reimburse you for a service or product you have
the right to deny payment.

Once you have disputed the charges with the sources you will
then contact your card provider and let them know what
occurred. If you are lucky enough to have a credit card with
bad credit, use the card to repay your debts and then meet the
monthly installments on the credit card each month. Ironically,
you are getting out of debt while going in debt deeper. It is a
solution when all else false. In other words, if you use the
card to pay your debts each month and then payoff your credit
cards the following month and then turnaround and uses the card
to pay that month bills..

Now you see where I am going. Credit cards have interest rates
so the bills each month on the card will increase.

No, Credit.No Problem

I do not need a credit line or credit card; I pay all my bills
each month with money. Is this you? Well then, you have the
obvious answer, but what if.

In today's world, we are moving into an era that requires us to
have at least one major credit card. When you phone any business
where you have debts, they will first ask you to pay with a
credit card. If you go apply for a job, apartment, mortgage,
car loan, or any other credit line you most likely will get a
rejection notice in the mail. Most lenders will not give credit
to anyone that has no credit history. The reason is that we are
expected to establish a credit line when we are teens, and if
we do not the lenders are often suspicious. The lenders do not
have an idea and can only base their judgments of you on
assumptions. Can I assume this person will make monthly
payments on time? Has this person taken for granted a loan from
a friend or family member in the past and there are no records
available for me to see if it is true? There are many reasons
that lenders will refuse you a loan if you do not have a credit
history. The best solution is starting up a line of credit now,
pay off your dues on time and avoid making purchases on items
you do not really need. Staying out of debt means regulating
your money each month and paying your bills on time.

About The Author: Son Ngo is the editor at
http://www.vkhowto.com, a community shared "How To" website on
everyday tricks and tips. You can share your expertises and
experiences to the world by submitting your article at the
website.

Reducing Your Unsecured Debt

2006-05-17T22:31:00.000-05:00

A recent survey showed that more than 2 million people in the
UK had unsecured debt of more than £10,000 (approximately
$16,000). As you can imagine most of this debt is held on Store
and Credit Cards, which are quite often the most expensive form
of unsecured debt an individual can acquire.

How manageable this debt is, is often down to the individual's
circumstances. One thing for sure is that when borrowing you
want to aim to reduce the amount of interest that you pay on
any outstanding debt. Here are a few tips to achieve this.

1. Pay off expensive debt first

Unsecured lending is by far the most expensive borrowing and if
you have a number of cards, some probably charge higher interest
rates than others. If you are not paying off the full balance of
your credit card each month, aim to pay more off the most
expensive cards.

2. Transfer expensive debt to cheaper cards

There's a lot of competition out there. Many credit cards have
introductory offers with either low or zero interest rates.
Transfer your balances from your old card to these new cards.
Remember to close your old credit card accounts to remove
temptation. It is a well known fact that many people don't
close their old accounts and then rack up more debt on both the
old and new accounts.

3. When you've cleared some debt, try not to borrow more

When you've cleared your credit card balances, try to get into
the habit of only spending what you earn. Stop using the cards
and to remove temptation cut them up. It pays to disciplined.
Remember you're trying to reduce debt. The best thing to do is
to create a budget for yourself and pay for everything with
cash.

Obviously this isn't an exhaustive list, but if you follow
these tips it will be a positive move in the right direction.

About The Author: Ian Walsh is the webmaster at
http://www.samuelblanksonbooks.info, information on Finance,
Gambling and Self-Help.

Credit Card Debt Statistics

2006-05-17T22:24:00.000-05:00

In the United States, the debt levels of Americans have
continued to increase since the 1980s. It was during this time
that the use of credit cards greatly increased. Credit cards
companies begin looking for different ways to market their
products to consumers, and used such things as direct mail,
commercials, and other marketing tactics.

It was during the 1980s that consumers begin moving away from
cash and checks into credit cards. The cause of this is often
attributed to the start of the information age. As the use of
computers became more widespread, credit cards quickly
followed. It is estimated that the number of people using
credit cards during this time surpassed those who were using
checks and cash in a single year. The use of debit cards has
grown tremendously since this time as well.

The rise of debit cards are a direct result of the problems
seen with using credit cards. Statistics show that the average
American consumer owes about $9,000 in credit card debt. Many
people have made the mistake of thinking that they are using
their own money when they use credit cards to make purchases.
It is easy to forget that this money is owned by the credit
card companies, and they are simply allowing you to borrow it,
with the promise you will pay it back. The average interest
rate owed on credit cards in the US is about 14%.

It is easy to view credit cards as being "easy money." After
all, you don't have to work for it, and it doesn't have the
same effect on you that cash has. Statistics show that people
have a tendency to spend the money of others much faster than
their own. Recent data also shows that Americans are paying
even less of their debts than ever before. It was recently on
the news that the savings rate for Americans is negative, at
about -0.05%.

Though we live in an electronic age, being irresponsible with
your credit cards is a great way to end up with a life time of
headaches. Many high quality jobs now require you to have good
credit, and it is difficult to get a mortgage or a car if you
have poor credit. This is why it pays to be responsible with
how you manage your finances. It is best to stop borrowing
money and use your own funds to make purchases.

About The Author: Joe Kenny writes for the credit card
comparison sites http://www.creditcards121.com and also
http://www.cardguide.co.uk

Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=49169

What Is A Judgment Lien?

2006-04-25T16:36:00.000-05:00

A judgment lien is a court ordered lien that is placed against
the home or property when the homeowner simply fails to pay a
debt. This doesn't seem like a big deal, but when the homeowner
has a judgment lien against his or her home and wants to sell
it, the judgment lien has to be paid in full before the home or
property can be sold. Judgment liens can be placed against the
property for a variety of reasons such as unpaid credit card
bills, utility bills, department store bills, landscaping or
home improvement bills, and just about any bill that the
homeowner has failed to pay in a reasonable amount of time. Any
bill that can cause one to end up in court can result in a
judgment lien.

A judgment lien is different than a trust, in that the judgment
lien holder cannot foreclose on the home or the property as
trust holder can. Judgment lien holders can demand payment, but
ultimately they must wait for the homeowner to sell the property
before they can expect to be paid the money that they are owed
according to the judgment. Luckily for the judgment lien
holder, the court will typically assign an interest rate to
these liens so that the lien holder is compensated for their
waiting as the interest will continue to accrue until the debt
is paid in full. Because the majority of people will live in
their home for quite some time, the interest can make a
judgment lien grow, and grow, and grow over the years so that
it is quite large. Imagine what a lien of just $3,000 would
grow to over the years if the interest rate were 15% annually
and that would be an even bigger amount if the debt were $5,000
or $10,000!

Of course, judgment liens require court action. A creditor will
take the homeowner to court where the judge will determine if
the homeowner does in fact owe the creditor any money. If the
court decides that the creditor is owed the money, and the
homeowner will not or cannot make payment, the judge will order
that a judgment lien be placed against the property. The
judgment lien will then be entered into land records offices
for the city or county so that the home cannot be sold without
repayment of the debt. Once the lien is filed with the land
records office, the judgment lien is said to be attached to the
property, meaning that it cannot legally be sold without paying
off that lien. If the judgment lien is not listed at the land
records office, then it means that the debt or lien is not
legally attached to the property and does not need to be paid
off to sell the home.

A home or property can have numerous liens against it, which
may present a problem when the home is to be sold. Fortunately,
the law says that liens will be paid off in the order that they
were attached to the property, meaning the first lien will be
paid first, the second will be paid second, and so on. This is
a law that was basically developed for when a home is
foreclosed on. If a foreclosed home is auctioned it will first
pay off the first lien, then the second, and the third until
there is no money left to pay the debts that are still attached
or associated with the home. Of course, all trusts against the
house, such as mortgages and home equity loans, would be paid
off before the judgment liens, so it's not uncommon for these
liens to simply go unpaid because there is no money remaining
to pay these debts after the trusts are paid. If there is not
enough money to pay for all of the judgment liens and trusts on
the home or property, they are then wiped out and can no longer
be collected on. Of course, the auction will usually attempt to
pay for all of these debts, and they are paid for until there is
no money. The reason for this is that the new owner will not be
able to get any home equity loans or second mortgages with
judgment liens already on the home. If there is money left over
after everything is paid off, the remaining amount would go to
the foreclosed homeowner as all debts are paid.

You can look for judgment liens at the land records office,
though you will typically not find them listed with trusts.
Investors or homeowners looking to sell their home will have to
look into both trusts and judgments, as they are listed in
different areas. Investors can often be caught off guard when
they realize how much debt is attached to the home, and sellers
are often startled at old judgment liens that they had forgotten
about and don't want to afford to pay off in order to sell their
home. It's a good idea to go over all of this information before
one bids on a home or attempts to sell it or put it on the
market.

Judgment liens are not something that anyone wants put against
their home, but they are common enough. There comes a time for
many people when they simply cannot pay a bill, and a judgment
lien is ordered. Making a continued effort to pay down the debt
is a great idea so that you don't acquire large interest fees in
addition to the initial dollar amount of the lien. The homeowner
does not have to wait until the home is sold to pay off the
lien, instead they can be paid off as soon as possible. The
judgment lien is simply put in place so that the home cannot be
sold without the debt being paid, and when you look at it from
the creditors point of view, this is a great tool to ensure
that you'll eventually be paid the amount you are owed in
addition to an interest fee that will pay you for waiting.

About The Author: Visit http://www.theforeclosuresinfo.com and
http://www.stateof-california.com

Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=46104

Learn How To Fix Your Credit & Debt Problems Before Buying Your Next House!

2006-04-22T11:26:00.000-05:00

Most people think - mistakenly - that if you have credit
problems, you have to wait 7 years for them to go away. Well,
that's not always true.

Credit repair can help you...once you know how to do it. The
time to clean up your credit and pay off your debts is RIGHT
NOW, before you start looking for houses and applying for
mortgages. Cleaning up your credit and lowering your debt will
help you:

. get a better interest rate
. borrow more money
. and save lots of money in interest

Clean Up Your Credit Report

These days, getting credit is easy. Unfortunately, so is
getting into debt or financial trouble.

But just because you've had some money problems does NOT mean
you can't get a mortgage and buy a house. There are all kinds
of loans:

. loans for first time homebuyers
. loans for people with bad credit
. loans for people with perfect credit
. and loans for people without a lot of money for a down
payment

So, most people can get a loan these days. The question is, HOW
MUCH will you pay in the long run for higher fees and interest
rates?

A lot of people think that if something bad goes on your credit
report, that it must stay there for 7 years, or longer. But
that's not always true. Credit repair can work, if you know how
to do it.

And, you can do it yourself.

For example, I had lots of debt (from a business idea that did
not work) and got a lot of bad credit listings while getting
myself out of debt.

And within 6 months of paying off my last credit card bill
(remember, even if you have some debt you might still be able
to get a house loan) I repaired my credit to the point that I
got both a car loan and a mortgage. More importantly, I got the
LOWEST POSSIBLE interest rates, which over the life of a 30-year
loan could save me tens of thousands of dollars!

How did I repair my credit?

I got a copy of all my credit reports, and kept writing letters
asking the credit bureaus to remove the bad credit.

So it CAN be done. (And I had some pretty bad stuff on my
credit reports.) The worst that can happen is that the credit
bureaus can say "no" to your request. The best that can happen
is that your credit score will improve, and you'll pay a lower
interest rate, get a bigger mortgage, or both!

So, how do you clean up your credit report?

The first step is to get a copy of your credit report from the
3 credit bureaus, listed below. You might have to pay a few
dollars, but it is well worth it. If you moved, changed jobs,
and had any other personal info change recently, you can send
it to the credit bureaus, and request a free copy.

NOTE: You are now entitled to one free credit report each year
from http://www.annualcreditreport.com.

The next step is to circle or highlight the bad credit items,
and write a letter to each credit bureau asking them to remove
the item. If you have a lot, focus on one or two at a time.

Then, wait a month or two, and ask for another one or two items
to be removed.

It might take a few tries.

But if you keep trying, eventually most (or all) of the items
will be removed.

In the worst case - even if you only get a few removed - it
might still improve your credit score, reduce your interest
rate, and lower your monthtly payment!

So don't give up.

It might take a little time to repair your credit - especially
if you've had quite a few money problems. But every little bit
helps your credit score, your interest rate, and the amount of
money you can get.

Then Pay Off As Much Debt As Possible

I know, when preparing to buy your new home money is real
tight. But if you have any extra money - any at all - try to
pay off as much debt as possible. This will help you:

. Be more likely to be approved for a mortgage
. Be able to borrow more money
. Have one (or more) less bill to worry about once you start
having to pay a mortgage every month.

If you can't pay off your debt, you might want to consider
waiting before buying your new home. Or, look into a debt
reduction program that can help you get out of debt faster.

There are no rules that say you can't have some debt and still
buy a house!

But think very carefully about your financial situation. And
TRY to pay off as much debt as possible before buying a house.
There is enough to worry about as a new homeowner, without
having to worry about paying your credit card bills.

At the very least, if you do have any debt, MAKE SURE you can
comfortably afford to pay your credit card bills as well as
your mortgage, before getting started!

About The Author: Kris Bickell is the owner of
HouseBuying-Tips.com, a site that helps first time home buyers
avoid the costly mistakes that many new homebuyers make. For
more tips on buying a house, getting a mortgage, finding a
realtor, and getting out of debt, sign up for the free "How To
Avoid These 10 Costly Mistakes When Buying Your First Home"
email course at: http://www.HouseBuying-Tips.com/course.html. ©
2005 HouseBuying-Tips.com

Consolidation Debt For Newbies

2006-04-10T18:16:00.000-05:00

Consolidation debt to help get you out of the quagmire

Will you agree with me if I tell you that, the key to financial
success is to live within your means? This is an old belief that
modern day income earners have completely forgotten. This is
because it is now extremely easy to get into financial trouble.

Credit card, store cards and other loans are easy to acquire.
However, you will agree with me when I say that they are very
hard to pay, you may end up living a paycheck-to-paycheck kind
of life if you will not fix the situation immediately.

Consolidation debt may save your sinking credit standing.
However, you need to be careful if you need a consolidation
debt. Many debt consolidation companies may offer their
services when you need a consolidation debt. This may be
helpful but it is more advisable if you try to make a realistic
personal assessment of your financial condition before deciding
on acquiring a consolidation debt.

First, you need to consider the ultimate reason why you think a
consolidation debt may be your only way out. Does interest rate
burden you that even you pay your dues; your obligation remains
that same. If this is so, then may be a consolidation debt can
be your best bet.

If you need to reduce your monthly payments to only one in
order to avoid sacrificing other debtors in favor of another,
then this may also be a reason for acquiring consolidation
debt. Additionally, proper handling of a consolidation debt may
speed up repair of your credit standing. This may be a very good
benefit you will get from acquiring a consolidation debt.

When you finally decide base on your personal assessment that
really, consolidation debt is a good way to help take back your
credit standing and credit worthiness, then you need to decide
on the next issue.

Do you want to negotiate for your consolidation debt or would
you need a credit counselor? You may try to negotiate
personally but this proves to be too tedious and that there may
be technical terms you are not familiar to.

Let us hope you do not fall prey to loan sharks that will apply
unrealistically high interest rates on the consolidation debt
you will acquire. It may be a good recommendation to get the
services of a reputable and respectable lending institution to
negotiate for your consolidation debt.

There are benefits you may get from debt consolidation
companies that you may not provide for yourself. Since, they
are in the business of providing debt consolidation services,
they may be able to negotiate better and may lessen your debt,
lessen the interest rates and even lessen the late payment
charges. This is going to be very beneficial.

However, you need to be smart in choosing a debt consolidation
company to represent you in your consolidation debt
application. Because there are some who may take advantage of
you. Get references and find resources that may help you in
assessing the best lending institution to represent you.

Finally, a good recommendation for acquiring a consolidation
debt is to get as many proposals as you can. From there, you
assess which offers the most flexible terms. Consider the
monthly payments you need to set aside.

You may also need to consider the length of the payment terms
and the charges of the debt consolidation company for the
services in acquiring your consolidation debt. After all these
get the most advantageous offer and start from there. Take back
your life and your credit standing. Avoid headaches and
sleepless nights due to bugging creditors. When you finally get
a consolidation debt, pay diligently, this is the best way for
you.

About The Author: Diego H. is the owner of My Debt
Consolidation Advisor and invites you to take a download free
helpful information, articles, and more check
http://www.mydebt-consolidation.biz/

Bad Credit Home Financing - Buy A House Even With Poor Credit

2006-04-10T18:14:00.000-05:00

Sub prime lenders come in two groups: reasonable and
unreasonable. Reasonable sub prime lenders offer mortgage
financing to high risk borrowers with slightly increased rates
and fees. Unreasonable sub prime lenders charge several extra
points and excessively high fees. Only through comparative
shopping can you know if a particular lender is offering
reasonable or unreasonable rates.

Compare Rates

Comparing rates is easy through online lender websites. By
entering basic information, you can quickly receive quotes from
several mortgage lenders. These quotes will give you a rough
idea of who offers the most competitive packages. Be sure to
add in fees and extra points when you are considering the cost
of the loan.

Real Quotes

Real mortgage quotes require more information than just the
loan amount and your income level. You will also need to
provide information about your home's location, your down
payment, and other personal information.

After you have compared general quotes, you can request
specific quotes from a handful of mortgage lenders. Online
mortgage applications allow you to do this from the convenience
of your home where you can easily find your financial and
personal records.

Applying Online

Once you have received a quote from a mortgage lender, you can
quickly finish the application process. Some lenders will
require additional information online, but most lenders will
simply mail out the final paperwork for your approval. After
the forms are signed and notarized, you send it back to the
lender for final processing.

Refinance Later

A subprime loan does not have to be permanent. Mortgage lenders
look at the last three years of your credit history when
considering your application. So after making regular payments
on your mortgage and all your other bills, you can consider
refinancing for a lower interest rate. Other ways to improve
your credit rating include paying off credit cards and
increasing your cash reserves.

About The Author: Carrie Reeder is the owner of
http://www.abcloanguide.com, an informational website about
various types of loans. To view our list of recommended sub
prime mortgage lenders online, visit this page:
http://www.abcloanguide.com/lessthanperfectcredit.shtml

Credit Bureasus Release New Credit Scoring System

2006-03-28T08:49:00.000-05:00

What's this new VantageScore credit score!

The three major credit bureaus Experian, Equifax and
TransUnion introduced the VantageScore in March 2006
to compete and replace the current FICO score system.

VantageScore has one big thing going for it: It's easy for
consumers to understand. VantageScore scores are on a
scale of 501 to 990. If your score is in the 900s, you have
the credit equivalent of an A and you'll get favorable
interest rates. If your score is in the 800s, that's the
credit equivalent of a B, with slightly less-favorable rates.

The credit bureaus say they've introduced this new
system so that the scores being reported to credit
grantors are consistent and easier to interpret.

But some observers say that the new scoring model
won't change the biggest problem consumers face when
it comes to credit scoring -- inaccurate or incomplete data
in their individual reports

To understand what that means, you need to know that
while we all get a score generated from each bureau,
how those scores are determined can vary greatly. That's
because each bureau uses a different formula to
generate the score it sells to lenders.

The scores under the new system could still cause a huge
spread in scores. Credit scores are generated using
information in your credit files. Each file can have all the
same information or vastly different data.

One creditor may or may not report all your information to
all three bureaus. Or one of your files might be missing
the maximum limit on your credit card, making it appear
as if you are overextended.

The new score was just introduced last week, and
adoption is gradually moving along. The credit bureaus
plan to replace the proprietary scores at their Web sites
with the VantageScore over the next few months, but
right now they're focusing on marketing the score to
lenders.

----------------------------------
For more details and a complete explanation of how the
score works and what to do to improve yours visit:
http://www.credit-repair-specialist.com and
http://www.debt-elimination-program-reviews.com for
the latest updates.

The First Step To Getting Out Of Debt: Make The Commitment!

2006-03-21T14:36:00.000-05:00

These days, getting into debt is easy.

Unfortunately, getting out of debt is not so simple for most
people. But you can do, if you go about it the right way.

The first - and by far the most important step - to getting out
of debt is to MAKE A COMMITMENT!

Personally, I spent years telling myself how much I wanted to
get out of debt. But then something would always happen - a big
expense, a change of jobs, you name it.

And even though I really wanted to get out of debt, I never
made any real progress. Then one day I finally got so
frustrated I said to myself:

"It's now time to do WHATEVER IT TAKES to get myself completely
out of debt!"

And for the first time since I got myself into debt (by maxing
out all of my credit cards trying to start a business) I
finally figured out the true "secret" to getting out of debt:
making the commitment!

So, if you haven't already made a commitment of your own, do it
right now. Decide you're going to do WHATEVER IT TAKES to get
yourself out of debt...and start doing it!

How long will it take you to get out of debt? If you're like
most people (including myself not long ago), too long!

How To Take Action

Once you make this commitment, it's time to take action.

Write down exactly how you plan on getting out of debt. Here
are some questions to ask yourself while developing your plan:

- How can you save money each month?
- What expenses can you eliminate?
- How much more money can you use to pay off your credit card
bills faster?
- How can you make some extra money?
- Have you contacted your creditors to request a lower interest
rate?
- How can you change your spending habits?
- Have you considered professional help - credit counseling,
debt negotiation, bankruptcy - to find out all of your options?

- Are you really committed to getting out of debt?
- When do you want to be completely debt free?

It's a great feeling being completely free of credit card debt.
But it won't start happening until YOU decide to make it happen!

© 2005 Debt-Tips.com

About The Author: Kris Bickell is the owner of Debt-Tips.com, a
helpful site for consumers struggling with credit card debt. For
tips on getting out of debt, repairing your credit, saving
money, and making extra money online, sign up for the free "Get
Out Of Debt Faster" email course at:
http://www.Debt-Tips.com/course.html.

Your Credit History

2006-03-18T06:18:00.000-05:00

Your credit history. Three simple words that can determine the
outcome of our financial success. Your credit history
influences any and all decisions that a company or institution
will make when considering you as a credit risk. Because of its
importance, knowing and understanding what your credit report
says about you is vital.

Your Credit Report

Your credit report is a document that will show your personal
and financial information, good and bad. Your score is based on
this information and is called your FICO score. The higher the
FICO score the better. This information is reported by all
three major credit bureaus, Equifax, Experian (formerly TRW),
and TransUnion. Any time you apply for credit of any kind, the
lender will contact one of these credit bureaus to obtain a
copy of your credit report.

This all sounds pretty technical but what it boils down to is
this, your credit score will influence all future financial
decisions. That is why it is so vitally important that you keep
track of your score and read your report regularly. Mistakes can
and have been made. Keeping track of your report will help you
to find these mistakes and resolve them in a timely manner.

What Your Score Means For You

Pretty much everything. As I mentioned above, your credit score
will influence the decisions that companies make when you apply
for credit. If your credit is less than perfect, you may be
turned down or at least given a higher interest rate than
someone who has a higher score. Problems can stay on your
report for as long as two years even after they have been
resolved.

What Influences Your Score

Your payment history is one of the main influences. Have you
paid your bills on time? If you have routinely been late with
payments, your score will be negatively affected.

How much outstanding debt you have is also a factor. This
includes the outstanding balance on any loans you may have as
well as the credit limits on any credit cards you may have. If
you have multiple credit cards and these cards all have high
credit limits, even if you don't carry a balance on these
cards, the possibility still exists that you will someday
charge all these cards to their limits. This possibility alone
will negatively affect your credit score.

The length of your credit history is also a factor.
Surprisingly, no credit history can work against you. With
nothing to go on, the company has no idea as to just how you
will handle your credit.

Obtaining Your Report

Since January of 2004, all credit bureaus are required to give
you one copy of your credit report for free each year. Although
the credit report is free, they can charge you for your FICO
score. Contact any of the major credit bureaus either online or
by phone and see what their policy is.

About The Author: Keith Baxter made it his mission after
college to educate as many people as possible to the advantages
and disadvantages of credit through a widespread re-education
initiative. You can find out more about Keith and what he's up
to at http://www.thebankcreditcardlist.com.

What You Should Know About Bankruptcy

2006-03-17T11:23:00.001-05:00

Filing bankruptcy is not only a last resort legal action; it is
also a very complicated legal action that definitely needs the
expertise of a lawyer. When thinking about bankruptcy, you
first need to decide if bankruptcy is right for you. If it is,
then you need the help of an attorney to decide which type of
bankruptcy is required for your particular situation.

The decision to file bankruptcy can be brought on by many
different circumstances. The most common circumstances are
divorce, medical hardships and credit card troubles. In cases
of divorce, bankruptcy is often inevitable. The sudden change
in financial level and the added burden of court costs, extra
expenses and child support often cause one or both parties to
get behind on their financial obligations.

In the case of medical hardships, high medical bills can
sometimes overburden people even if they have insurance. This
is even more likely to happen if the person experiencing the
medical emergency is also the family breadwinner.

The most common case of financial hardship is incredibly high
credit card balances. After carrying numerous high credit
balances for a certain period of time, many people find
themselves unable to make anything but the minimum payment and
sometimes not even being able to make that. Then, when the high
interest rates are added in, people find themselves in a
situation where repayment is often impossible.

Whether your situation arose from one of the above financial
problems or not, sometimes bankruptcy is the only answer to
your monetary problems. Once you have decided that bankruptcy
is the answer for you, you will need to enlist the services of
a lawyer to decide which type of bankruptcy to file and to help
you navigate the many complex bankruptcy laws and regulations.

There are four main types of bankruptcy, Chapter 7, Chapter 13,
Chapter 11 and Chapter 12. Chapter 7 is the most common form and
can be used by businesses and individuals. Chapter 13 is the
second most common form, but it limited to use by individuals
only.

In a Chapter 7 bankruptcy, a debtor's property is divided into
to categories, exempt and non-exempt. Exempt properties include
things that the debtor will be allowed to keep like their home
and automobile. In the case of exempt properties, the debtor is
allowed to keep them as long as he or she continues to pay for
them. If a person cannot continue to make payments, the owner
of the loan may repossess the property, even after a bankruptcy
has been finalized. Any non-exempt or unsecured property will be
sold to cover the debtor's financial obligations. Debts such as
credit card debts and medical bills can be written off with
this type of bankruptcy, but other debts like school loans and
taxes cannot be.

In Chapter 13 bankruptcy, the debtor is required to come up
with a way to repay his or her debts, but these debts usually
do not have to be repaid in full. In most cases, a creditor
will agree to take a small percentage of the owed debt as
opposed to losing all repayment all together. This form of
bankruptcy is preferable for those individuals that wish to
keep all of their possessions and just need a chance to catch
up on their financial obligations. It does not, however, excuse
a debtor from priority debts like taxes and child support.

In order to qualify for Chapter 13 bankruptcy, an individual
must have a yearly income level that allows for repayment of
each of his debts within three to five years. After three to
five years of consistent repayment, the debtor's obligations
are released.

After you have researched bankruptcy and decided that it is
right for you, you need to contact an attorney that specializes
in bankruptcy to help assure that you follow all legal
guidelines and are protected from further collection activity.

About The Author: Jody Ehrhardt write for
http://www.lawyervista.com, a website where you can find a
lawyer in your city or state, including
http://www.lawyervista.com/29-state-NV-nevada-bankruptcy_lawyer.html
Nevada bankruptcy lawyers and
http://www.lawyervista.com/29-state-UT-utah-bankruptcy_lawyer.html
Utah bankruptcy lawyers

Pros And Cons Of Credit Cards

2006-03-11T23:24:00.000-05:00

Credit cards are very convenient. There's no need to carry any
cash; you can just take a credit card with you to the shop and
charge for your shopping.

When you shop on the Internet or over the phone, it's the only
good way to make purchases online. This is more convenient than
posting a cheque for payment. Like anything convenient, though,
having credit cards have its cons.

Not Keeping Track of Your Shopping Charges May Land You in
Trouble.

When you walk into that shop and hand over the card, you don't
pay cash rightaway. This can mean that as you do not see less
money in your purse or wallet, you may lose track of how much
you've spent.

Everyone has a tendency to underestimate what they spend, and
smaller amounts can add up quickly on a credit card without you
even noticing. It's like taking the way phone bills work and
applying it to everything you buy - and that can't be a good
idea.

Also, imagine the scenario if you have more than one credit
card. You will have to consolidate your charges on all of them
as well as those on your debit cards to derive your total
spending for the month.

You May Pay More Interest than Earn Interest.

The moment you run an outstanding balance, you're paying the
credit card company interest. You're also paying your credit
card bill as soon as you get your wages, so you may not have
the chance to earn any interest from your bank balances.

You Charge More to Your Credit Cards to Earn More Reward
Points.

The more debt you show you can pay back, the more credit card
companies will offer to you in terms of limit and cash
advances. The offers are so attractive that sometimes, it's
tempting to apply for more than one credit card. Credit card
companies also try to make you charge more to credit card by
awarding you reward points. The result is that you end up
spending more as you get enticed by lucky draws, discounts for
shopping, etc.

But Credit Cards If Used Wisely Can Be Useful.

When you need money in an emergency and you just don't have
any, there's no doubt that credit cards can be useful. They are
also a very useful way of proving to credit rating agencies that
you can handle debt, and this may be taken into consideration
when you apply for car loans or a mortgage.

Just remember that whenever you handle credit cards, you've got
to learn how to manage your finances. Keep your loans to a
minimum, and you will be in greater financial health.

About The Author: Elaine Lim used to be a research analyst from
a bank and now hopes to share her expertise through publishing
information on consumer credit. She hopes to help others in
their financial planning, debt management and credit repair.
For more free tips and resources, please visit
http://www.credit-cards-eguide.com .
=============================

http://www.debt-elimination-program-reviews.com/scams.html

Bill Consolidation: Freedom From Debt?

2006-03-11T06:12:00.000-05:00

Stated simply, bill consolidation is getting loan to pay for
other loans so that the borrower is left with only one loan to
finance. Debt consolidation is a step taken by borrowers for
the advantages it may allow like lowered interest rates and
focusing his payment to a single loan.

This often takes placing a property as collateral. When
collateral is guaranteed the interest gets lower because the
risk to the lending company is decreased. When the borrower
fails to meet his obligations, the lending company forecloses
the property as payment for the debt.

People with multiple credit cards often resort to debt
consolidation. Carrying multiple credit cards is almost
surefire formula to carrying high interest rates. Credit cards
are one type of an unsecured loan. As such, credit cards carry
high interest rates and people with multiple credit cards are
often tempted to spend more than they earn.

One good way of solving this is through debt consolidation.
Secured loans from the bank or a lending company (one that is
covered by collateral) have less interest rates than the
unsecured loans for credit cards. Paying then all his credit
cards from a secured loan from the bank enables the borrower of
saving from the lowered interest rate. As mentioned, this is a
good way of doing it, if the habit of spending more than what
one earns is not changed. The process starts again and the
interest rates will soon start to climb, sometimes, worse than
it was resulting to foreclosure of properties.

There are many ways to consolidate debt. There are for example
the student's consolidation loans and the home finance debt
consolidation. But no matter how it is termed, debt
consolidation is little more like transferring one unsecured
loan to another unsecured loan. The debt is still there and
most people thought that by consolidating the loan, something
has already been done. Again, nothing has been done if the
habit that started it all is not resolved.

A better way to real freedom from debt is, when the debt
consolidation has been done and is working, have a plan and
stick to it. One of the generic approaches to that are the
obvious:

Do not spend on that one single credit card the way you were
spending when you have many. This seems to be very obvious and
so people who have consolidated their loans starts out fine.
After a while, the temptation to spend on loans starts. One of
the many reason is that the interests are lowered, the other
one is by habit. So once the debt consolidation is on, have the
plan not to spend on the things that you can live without and
stick to it.

Then, have a plan to pay for the loan that was secured with
collateral. About 80% of the time, people who consolidated
their loans dos not have a plan to assure the payment for the
loan with an extra job and other ways of generating extra
income. When emergencies strikes, the most convenient way is
again to resort to additional lending and the debt grows back
over time, higher interests are charged and the cycle
continues.

The best way to get out of debt and gain back that freedom is
to consolidate and then have a plan that one can stick to. No
amount of loan consolidation will work if the habit that placed
one in debt is not avoided.

About The Author: Robert Thatcher is a freelance publisher
based in Cupertino, California. He publishes articles and
reports in various ezines and provides bill consolidation
resources on http://www.about-bill-consolidation.info

Getting A Loan If Your Credit Is Bad

2006-03-11T06:07:00.000-05:00

When you're learning about something new, it's easy to feel
overwhelmed by the sheer amount of relevant information
available. This informative article should help you focus on
the central points.

Bad credit is the worst type of credit that you could ever
have. Imagine all the doors that good credit opens and then
imagine them being slammed in your face. This is the reality of
bad credit and many people are living this reality even as you
read this. You might even be one of these people. If you are,
you should already realize how frustrating this kind of a
lifestyle can be. You have to pay the highest interest rate
possible on credit cards and you are constantly denied for
loans. You can't live a prosperous life with such financial
impediments standing in your way.

If you are stuck in this type of financial rut, you are in need
is some good old fashioned credit repair. You need the best help
you can find to improve your credit rating. The sooner you
repair your credit score, the sooner you can be rid of the bad
credit curse that has been plaguing you for so many years.

If your bankruptcy facts are out-of-date, how will that affect
your actions and decisions? Make certain you don't let
important bankruptcy information slip by you.

Why should you be stuck in financial hell? Stop dealing with
bad credit. You can improve your credit by acting more
responsibly with your money and living within your means. With
a little help, you will learn how to pay bills on-time and how
not to spend more than you can afford to. Even though there are
lenders out there who will agree to approve your high risk loan,
they will charge you an insanely high interest rate. You don't
want to be in more debt than you have to be in, so you want to
find a lender that specializes in bad credit personal and
business loans.

Although it may seem like your credit will forever be screwed
up when your credit is bad, a bad credit loan may help to
establish some good credit. As long as you can make your
payments every month, you will begin to build your credit back
up again. Everyone makes mistakes, but you don't have to suffer
for your entire life because of them. At least not now that they
have bad credit loans there to help you out.

To find a lender that will guarantee you approval, you have to
search online. It is the only way to do it these days and you
can get some real help from real people like you who have used
the service before. When you search in person you are much more
likely to be denied or approved for a ridiculously high loan
that you could scarcely pay back. By going online lenders will
fight for your business and you will end up not only being
approved by several different lenders, but will find lower
interest rates as well.

Don't limit yourself by refusing to learn the details about
bankruptcy. The more you know, the easier it will be to focus
on what's important.

About The Author: James Mahony is the founder of
http://www.thecreditsource.com - A site dedicated to Credit
Repair Free Credit Repair Guide
http://www.creditcardapprovals.com
http://www.articlesforwebsitecontent.com

The Fair Credit Reporting Act (FCRA) And You

2006-03-02T22:59:00.000-05:00

Your credit report gets viewed by other people besides credit
grantors. Potential employers and insurance companies can deny
you employment, auto and home owner's insurance based on your
credit report. Understand your rights protected by The Fair
Credit Reporting Act.

No matter what many credit counseling scam artists may try to
tell you, no one can legally remove any information that is
up-to-date and accurate from your credit report. They can't do
it, and you can't do it yourself. However, you CAN request an
investigation of anything you find in your credit file that you
believe to be either incomplete or inaccurate. That is perfectly
legal, and can be done at NO cost to you. In fact, anything that
a credit repair company offers to do for you can be done
yourself, generally free or for a nominal fee.

In fact, there's a law that guarantees it. It's called the Fair
Credit Reporting Act (FCRA). Under provisions of the FCRA, you
are entitled to receive a free credit report if a company
denies your application for credit, employment, or insurance.
You must ask for the report within sixty days of the refusal,
and the company must tell you which credit reporting company
they used, and provide you with their address and phone number.
(The three nationwide companies most often used are Experian,
TransUnion, and Equifax.)

The FCRA has made it mandatory for consumer credit reporting
companies to correct information that's incorrect or
inaccurate. To correct inaccuracies, you must first contact the
reporting company, in writing, telling them which information is
incorrect or incomplete. In your correspondence, include copies
of documents that will verify your claim. (Don't send
originals!) Clearly detail why each piece of disputed
information is incorrect, and then ask that the inaccurate
information be either corrected or removed from your file
completely. It's generally worthwhile to include a copy of the
credit report itself, with each disputed item circled.

Once you've put your package together, send it to the company
in question by certified mail, indicating "return receipt
requested." That will allow you to be certain that the company
received your package. Also keep copies of everything for
yourself, of course!

The FCRA makes it mandatory that the reporting company
investigate each item you have disputed, often within thirty
days, unless they consider your dispute to be unworthy of
researching further. By law, they must also forward everything
you have provided them on to whatever company or organization
initially provided the disputed information in the first place.
That provider must then review and investigate the situation and
report back to the reporting company. If the provider has
mistakenly provided inaccurate information, they must correct
it with all three major reporting companies.

Once the investigation has been completed, the FCRA mandates
that the reporting company must provide you with the results,
in writing, and a free copy of the report if the investigation
resulted in a change in your credit report information. You may
also request that a copy of the amended credit report be sent to
anyone who may have received the disputed report during the
previous six months. If the report was given to potential
employers, you have a right to request that a corrected report
be sent to any employer who may have received the inaccurate
report during the past two years.

Copyright © Jeanette J. Fisher

About The Author: Jeanette Fisher teaches how to get out from
under credit card debt, how to use credit to make money, and
six ways to build strong credit to finance your first home and
multiple investment properties. For free credit advice and free
ebook "Credit Tips for Mortgage Financing," see
http://worryfreecredit.com

How To Build Credit For A Better Future

2006-02-15T22:15:00.000-05:00

Building credit is building a better future. Nowadays it takes
good credit scores to purchase a home, buy a car, and get a
credit card and so on. If your credit is bad usually more bad
follows. It takes you to find a solution to repair your credit.
The fist step in repairing your credit is to take a look at each
bill, including your past due bills. Make sure the current bills
are paid in full if possible to avoid any more reporting on your
credit report. Once you have taken care of your current bills
work toward paying off your late bills.

Some current bills such as utilities or other unsecured bills
can wait longer than others, so you might want to payoff your
secured bills first. Secured bills means that you have more to
loose so you want to take care of those first before paying off
nonessential bills and risking losing your home, car or whatever
you are paying on. Most utility companies will wait on a bill if
you don't have the funds. You may be able to get some help
paying utilities.

The Social Services and some Religious Organizations offer
support to low-income families. If you have a loan with a bank
you might want to contact your lender to see if there are
options for reducing your monthly mortgage or car payments.
Some banks are waiting for financial burdens to occur and offer
a solution, such as refinancing your home or car.

You want to be careful since some of the loans have high
interest rates attached. Some loans may even have hidden
charges attached so it makes sense to read the fine prints
thoroughly so that you are not taking advantage of. Remember
you are attempting to repair your credit so finding the best
deals is important. This brings us to cut backs.

When we are striving to repair our credits we want to cut back
on spending as much as possible. Sometimes we have to do
without in order to better our future. Credit repair is the
process of building your credit history and reestablishing your
life. This process means that you have to look at all angles to
find a solution to repair your credit.

When you are searching those angles you need to consider all
aspects of what the solutions include. If there are added
charges you probably are getting in deeper rather than building
a better future and repairing your credit. Debt Counselors, Deb
Consolidation, Bankruptcy and other companies that offer credit
repair solutions are often the last resort to repairing credit.

Even if you think bankruptcy is the answer you must realize you
will need a few hundred dollars upfront to start the process.
Lawyers are not cheap! On top of the high prices you will have
to pay you will also go through court proceedings as well as
many other headaches. Therefore if you can find a way out of
debt on your own this is the best solution. If you are in over
your head and have nothing to loose it might be wise to ignore
your debts. This sounds ludicrous but if you can't get out this
sometimes is the only answer to debt relief.

If you are on the spot and not so deep in debt you might ask
your family or friends for a loan, only enough to pay off your
debts. You might have to pay interest, but friends and family
will often charge less and give you a longer time frame to
repay your debt. The solution is often better than applying for
a loan to payoff your debts from a bank.

Most lenders at bank are welcoming people that are struggling
and take full advantage by finding you a loan with high
interest rates. Your monthly installments are often lower, but
your price in the end is steep. It makes sense to search all
options before deciding which solution for repairing your
credit is right for you. Always keep in mind when you are
repairing credit that you are working toward a better future.

About The Author: Christos Varsamis is a Marketing Consultant.
Sign for your Free 15 day Success E-course at
http://www.settinglifegoals.com . Get your Free E-courses "How
to Create Minisites That Make Money in Just 24 Hours + Secrets
of Internet Millionaires" at http://www.cbmallclickbank.com &
http://www.cbmallgr.com

The Fair Credit Reporting Act (FCRA) And You

2006-02-13T21:16:00.000-05:00

Credit Scores: Don't Waste Your Money

2006-01-27T08:37:00.000-05:00

Did you know that your credit score that you purchase online is
not the same credit score your loan officer gets?

You probably know that when you apply for a mortgage, your loan
officer gets all three credit reporting agencies reports with
three different scores. From your three credit scores, most
mortgage companies use your middle credit score to determine
your credit worthiness.

Do you know that the credit score an auto dealer sees is not
the same credit score your loan officer sees?

Imagine our surprise to find out that my husband's credit score
for purchasing my new car one afternoon was 50 points higher
than his top credit score was earlier in the day when he
refinanced an investment house. This happened because credit
scores get computed differently for mortgages and auto loans!

If you think that you have a great credit score because you
recently bought a new car, think again. You may have been told
that your credit score was 700 by a finance company. Therefore,
you think that you have the perfect credit score to buy a house.
Don't be surprised to hear from your loan officer that your
credit score falls short of a prime rate mortgage loan.

You don't want to have your credit history checked too often.
You do get a small penalty with a few points deducted when you
have too many inquiries on your credit report. However, when
you're shopping for a car or a home loan, the credit reporting
agencies batch your inquiries into one. In other words, you can
call several mortgage lenders to shop for the best terms and
rates without losing points.

Don't waste your money buying your credit scores. These scores
are not the ones real estate lenders get. Instead, get your
credit scores FREE by calling a loan officer.

Copyright © Jeanette J. Fisher

About The Author: Jeanette Fisher teaches how to get out from
under credit card debt, how to use credit to make money, and
six ways to build strong credit to finance your first home and
multiple investment properties. For a free ebook "Credit Tips
for Mortgage Financing," see http://worryfreecredit.com/

================================

Visit: Raise Your Credit Score Yourself And Credit Repair Specialist We review and list some of the very best credit repair companies.

Fast Cash Loans - When You Should Borrow And When You Should Wait

2006-01-18T06:02:00.000-05:00

A fast cash loan should be an option used as a last resort to
avoid a financial emergency. With its interest rates, a cash
loan should not be used to purchase the latest gadget or
fashion item.

Avoid A Late Payment

A late payment can cost you more than just a late fee; it can
raise your interest rates on credit cards and future long-term
loans. Higher interest rates on a car or home will cost more
than a few dollars for a cash loan. While you shouldn't make it
a habit to pay bills with a cash loan, it is better than missing
a bill payment and lowering your credit score.

Skip A Non-Sufficient Fund Fee

While a cash loan fee is high, a NSF fee on a check can easily
be higher, especially if the merchant charges a fee as well. To
avoid these spiraling cost, make sure your checks are covered
with a cash loan.

Keep Your Job

If keeping your job means you have to get your car fixed today
and you are out of cash, then use a payday loan. It is better
to pay the fees than lose your job. Payday loans are ideal for
these types of situations.

Delay A Payment

Not all late payments warrant getting a cash loan. If you will
be less than 30 days late on a bill, it will not show up on
your credit score. You may have to pay a late charge though,
which is typically less than the finance fee for a cash loan.

Wait On Impulse Purchases

A cash loan is not a good way to fund an impulse purchase. Even
if the item is on sale, it probably isn't reduced enough to
warrant paying fees on a cash loan. Instead, wait to make the
purchase until you have enough money on hand.

Your decision to get a cash loan or not should be based on what
is in your financial best interests. Cash loans, when used
wisely, can save you from a financial emergency. Keep in mind
the cost of a cash loan's financing fees when factoring the
cost of your decision.

About The Author: Carrie Reeder is the owner of
http://www.abcloanguide.com, an informational website about
various types of loans. To view our list of recommended payday
loan companies online, visit this page:
http://www.abcloanguide.com/paydayloans.shtml

The Human Side: Debt Stress

2005-12-07T17:53:00.000-05:00

In all the technical discussion you hear about credit card
debt, the best ways to manage it and pay it off and all the
rest, one thing goes largely ignored. Credit card debt is
extremely stressful, and can have a very negative effect on
your life, if you let it. It's as bad as an addiction, always
hanging over you, bringing you down, making it hard to life
your life the way you want to. In this article, we'll take a
look at how you can recognise debt stress, and what you can do
about it.

The Symptoms of Debt Stress.

There are an awful lot of symptoms that can be caused by
stress. Some of the most common ones are: headaches, not being
able to sleep, feeling depressed and irritable, and being
forgetful and unable to concentrate on what you're doing. If
you're not sure whether your symptoms are related to stress or
something else, you should go and see a doctor.

Who Gets It?

Almost everyone who has debts is stressed about them. Debt is
blamed for millions of days off work every year, and is one of
the leading causes of suicide - it seems like most times you
read about someone who has committed suicide, their name is
followed by "who owed [a very large amount] in debts". Students
and graduates are especially vulnerable, as debt is growing
amongst them faster than in any other group.

The average adult owes many thousands in debts - and since
that's the average, it means that many people must owe much
more. Never forget that you're not alone, and there's always
someone worse off than you.

How to Deal With It.

Stress caused by debts is often considered to be embarrassing,
or shameful. People with lots of debts don't want to talk about
it, even with their family, for fear of upsetting people or
looking like a failure. It is very important, though, that you
do talk about your problems, as keeping it all inside yourself
will make you much, much more stressed. It is especially
important that you talk to your partner - they are the number
one person who can support you.

The best thing to do then is to find two people: one who can
advise you, and one who can be a counsellor. That means a
professional who knows what they're doing in financial matters,
as well as a psychologist or psychiatrist, or some other kind of
counsellor. Don't let stigmas put you off - this is about your
health.

The next thing to do is to have a good think about how you got
that debt to begin with. See if you can find old credit card
statements. What did you spend the money on? You need to sit
down, work out a budget, cut unnecessary expenses and try to
free up as much money as you can to pay back debts. Even if
it'll be a long time before you get everything paid off,
knowing that your debt is gradually going downwards can be an
excellent cure for debt stress.

Repair Your Credit...The Right Way!

2005-11-24T07:30:00.000-05:00

Repair Your Credit...The Right Way!
Copyright 2005 MHG Consulting

How to Repair a Bad Credit Rating.The Right Way!

If you have a bad credit rating, then you might find that
your ability to get financing, loans, and even some jobs is
greatly diminished.

Once you have a bad credit rating, it might seem like
there's nothing that you can do about it. but you don't
have to believe that. It's not as difficult as you might
think to get by with a bad credit rating; with a little
work and time you can even repair it! Of course, before you
do that it's important to realize exactly what a credit
rating is.

Every time a lender or other creditor makes a report
concerning your payment history to them, this report
affects your credit score.

Your credit score is a numerical indication of the positive
and negative reports that you've received from creditors
and lenders; if the number is high then you have a good
credit rating, and if it's low then you have a bad credit
rating.

Basic credit repair

Get organized! Make a folder for all your correspondence
offline and online. You will have to do some snail mailing
but in most cases you can work your repair online.

In the U.S. a 630 rating will qualify you for a mortgage.
You can still get credit with a lower score but not at a
premium interest rate.

The important thing to do is obtain your credit report and
study it. Mark all the negative items.

Most unsecured credit, mostly credit cards, can stay on
your report for 7 years. If you find any over that, write
to the credit bureau and ask them to remove it. They are
required by law to research and report back within 30 days.

If they don't, you can threaten them with a letter to the
Better Business Bureau or

Federal Trade Commission.

Find any other negative items and determine they are
correct. If not, write the bureau and tell them its not
your debt.

Even if you aren't sure, ask the credit bureaus to
investigate. Many times, they will not be able to verify
the debt because the credit card company, auto loan company
or other creditor won't get back them within 30 days
(required by Fair Credit Act).

About the Author:

Dan is the owner of Repair Your Credit...The Right Way!.
For the contact information on credit bureaus as well as
samples of letters to send to them, go to:
http://www.repair-credit-right.com
===========================================

For More Infomation Visit: Credit Repair Specialist For The Very Latest Tips On Complete Debt Elimination amd Credit Repair On Any Income!

Repairing Your Credit

2005-11-24T07:08:00.000-05:00

We live in a consumer society where it seems like more
attention is paid to your credit record than to your criminal
background. Credit has been elevated to a position where it
permeates every factor of a person's life and has even crossed
over into the realm of being a moral question. Have you ever
been made to feel guilty or embarrassed because you can't get a
loan? What about having your credit card rejected at a
restaurant or department store? It's not just that you don't
have money readily available, it's that you suddenly become a
pariah in the eyes of some cashier. And, of course, to everyone
that is standing around within hearing distance.

Nearly everyone has been in one of these situations one time or
another. And, it begins to weigh heavily on your psyche. Don't
despair! Having bad credit does not mean you are a disreputable
person AND there are very few credit situations that are beyond
repair. You just have to know what steps to take and what order
to take them in. If you are careful, payday loans can be an
excellent means of reestablishing your credit.

There are several ways you can go about clearing up your credit
situation.

Payday Loans

A payday loan may be able to help you re-establish your credit.
The way it works is like this. Get the best loan deal available,
with the least fees. Make it small, say for $100. If you can
find a lender who only charges $10 per hundred, you will owe
$110 on your next payday. Even if you have to pay a $25 charge
for the $100 borrowed, the total payment is still only $125.
Pay it off on the due date, in full. Do not be tempted to roll
the loan over because it will just cost additional fees. Don't
borrow unless you know you will be able to pay back the full
amount on the date due and do not borrow from multiple lenders.
Repeat this process several times to build a good reputation
with the company. Payday transactions are ones that may or may
not be reported to credit agencies, but you can generally add
good reports to your own credit profile. It may cost $2-$3 per
lender and you must ask the lender before proceeding.

Credit Cards

According to the Credit Repair Institute, a Visa or MasterCard
are the best credit references you can establish.

At first glance, this may not seem like a great solution
because you are thinking that you probably can't possibly get a
credit card. However, there are banks and other lenders out
there who will issue limited value credit cards to people with
bad credit, on a couple of conditions. First, you will probably
have to pay a fee to get the card in the first place. Then, it
will probably be limited to a small amount, say $200. Pay the
fee, get the card (making sure that it doesn't charge huge
interest) and use it very, very wisely. In other words, go make
a small purchase on the card instead of paying cash for
something that you already intend to buy and have money for.
Then, use the cash you already had set aside to pay the credit
bill, before the due date, so there are no additional interest
fees. Repeat the same process several times, over several
months. Always make sure you are not buying something extra
that you may not have money to pay for, just use the card to
establish good credit.

Other banks issue secured credit cards for which you deposit a
particular amount, for example $200. Make the deposit, get the
card, and then make several small charges on it - again ones
that you know for certain you can pay back in full before the
due date so that you don't accrue any extra interest fees. Shop
around for the card and make sure you get the best deal
available in terms of annual fees, annual percentage rates,
grace periods and any surcharges that may be attached. Secured
cards are nearly as good a means of bolstering credit as
unsecured ones.

Get a Loan

That sounds like crazy advice, but if handled the right way, it
can quickly rebuild your credit. According to the Credit Repair
Institute, this is a fast and reliable method, and can be done
with as little as $400. It involves opening a savings account
at a local bank with about $400. After the account is
established, ask the bank for a loan and tell them you want to
secure it with the savings account. They are likely to grant
you at least 70% of the money you have in savings and, in some
cases, up to 100%.

Take the money from the loan and deposit in a savings account
at a second bank, get a loan against that and deposit that in a
third bank. The money borrowed from the last bank can help pay
the first few payments on the others. Make certain that you
make payments on time and as agreed. Also make certain that the
banks report your payment history to the three major credit
bureaus, monthly.

According to the Credit Repair Institute, this is the quickest
way to rebuild credit quickly. In the meantime you will be
paying for it by paying interest, but the good news is that the
interest earned on the funds deposited in savings will partially
offset the interest payments you will be making back to the
bank.

About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Payday loan
or any type of faxless loans please visit us at
http://www.PaydayLoanChoice.com

=========================================

For More Infomation Visit: Credit Repair
Specialist For The Very Latest Reviews, Articles And
Tips On Complete Debt Elimination amd Credit Repair On Any
Income!

Are You Thinking About Filing For Bankruptcy Protection?

2005-11-20T09:06:00.000-05:00

Bankruptcy Overview

Bankruptcy, when you come right down to it, is the process that
enables those who are unable to pay their debts get a fresh
start.
It allows for some or all of these debts to be discharged or
reorganized. Individuals or businesses may file bankruptcy.

This enables you to clean the slate and get a 2nd chance with
your finances. In most instances, bankruptcy provides a fair
method for compensating your creditors as well.

The bankruptcy process need not be your worst nightmare.
However, there are certain requirements that must be met. You
will be required to file a list of all of your outstanding
debts and a complete list of your
assets. This is done with the help of your lawyer thru the
Federal Courts.

To make this process easier to understand, your "Assets" fall
into two categories.

They are: Exempt and Non-Exempt

Exempt assets are the property or belongings that you do NOT
have to use to pay off the debts you have incurred.

In other words, exempt assets are off the table, (not in play)
and may not be touched by your creditors.
In most instances this includes a certain amount of equity in
your home, and some of the equity in a vehicle. For the most
part, your clothing, and other personal items are deemed
exempt. This does not include the expensive jewelry, furs and
the big boys toys.

Next, you will be assigned a "trustee" by the Federal
Bankruptcy Court to administer the payment of your debts.

Your debts also fall into two categories.
They are: Secured debts and Unsecured debts.

A Secured debt is one in which the creditor retains a "security
interest." Most often it is the same property that was purchased
with the credit that creditor extended.
Secured debts occupy the first position. This means they enjoy
priority over non-secured debts, and must be satisfied first.

If you are unable to pay off secured debts, the creditor has
the option to repossess that property and sell it. If there is
any "short fall", that remaining debt is now considered
unsecured. It doesn't go away, it has only changed from secured
to unsecured.

Once you have filed for protection, the court will issue an
"automatic stay". This stops your creditors in their tracks.
They may not take additional action against you beyond the
bankruptcy.

This allows you to avert impending repossessions and
foreclosures.

Chapter 7

In Chapter 7 Bankruptcy you are in fact liquidating your
assets. This means that you are only permitted to keep "exempt"
property. The remaining non-exempt property will be sold to the
highest bidder. The proceeds of the sale are applied to the
outstanding debt. The shortfall or amount left unpaid by the
sale is then discharged.

In Chapter 7 Bankruptcy there are a few debts that are not
dischargeable. They include taxes, back child support, DWI
fines and student loans.

Chapter 13

In Chapter 13 Bankruptcy you are trying to regroup, recoup and
get back on track. It is commonly known as the "reorganization
bankruptcy for individuals."

Individuals who want to pay off their debt over a period of
three to five years file Chapter 13 bankruptcy.

Chapter 11

Chapter 11 Bankruptcy is commonly used as the reorganization
tool for businesses. This kind of bankruptcy is attractive if
you own "non-exempt" property that you want to protect.
Chapter 11 will also help you to catch up on bills that have
fallen into arrears. It effectively blocks an impending
repossession or foreclosure.

Not everyone is eligible for a Chapter 13 bankruptcy. You must
have a reliable source of income that is sufficient to pay your
reasonable everyday expenses and still have an amount of
positive cash flow with which you begin paying off past due
bills.

If you file a Chapter 13 you are required to submit a plan to
repay your debts that includes a set timeframe and set amounts
to be repaid. Upon approval of the bankruptcy court, both
parties (debtors & creditors) are obliged to accept the terms
of the order

What To Do Now

Choosing your bankruptcy lawyer is an important decision.

This beginning process allows you to evaluate and determine
your best course of action. This discussion is also your
opportunity to satisfy yourself that the Jersey Justice
sponsoring attorney's fees are reasonable for your type of
case.

Am I Making The Right Decision?

In all likelihood you are stressed and feeling the pressure to
seek professional help with your finances.
Your decision to look for an experienced bankruptcy attorney
may be the best financial decision you have made in a long
time.

Even taking the beginning steps to consult with an attorney
takes enormous courage. You may even be thinking about
struggling through all the mess on your own. That could be a
very lonely path.

Before you make the decision to go it alone, ask yourself a few
questions. If two or more of these are you, then it could be the
perfect time to seek the services of a bankruptcy professional.

Are You:

receiving harassing or threatening phone calls from people you
owe?

paying the minimum payment possible on your credit cards?

taking out Payday Loans? (which by the way are illegal in NJ)

begging for loans from friends and family?

about to lose your job?

behind in your taxes?

receiving foreclosure notices?

behind in child support or alimony?

gambling to try and make ends meet?

sick and unable to even go to work?

If your answers indicate that you are in financial deep water,
bankruptcy may be your best solution, but you will never know
for sure until you get the advice of an attorney.

How Will Bankruptcy Effect My Life? Your Bankruptcy Attorney
will be able to explain some other very important
considerations.

What happens after bankruptcy?

What will my life be like?

Will I ever be able to get credit again?

How do I live within a budget?

How do I start all over?

How do I rebuild my credit?

If these nagging questions are on your mind, then a bankruptcy
attorney is right for you.

It is true. A bankruptcy can be a persistent source of
blemishes on your credit report for up to 10 years.
The good news is you are able to start re-establishing your
credit the moment your case is closed.

How good is your present report? It is probably already
suffering the consequences of late payments, delinquencies and
every other known credit report disorder.

Think about this. Your credit score could actually improve due
to the elimination of most of your debt. Lenders actually
believe that you are a better credit risk now since they know
that you may not file bankruptcy again for another six years.

At about 18 months to 24 months into your bankruptcy you will
even be able to qualify for a new home loan if you are able to
come up with a minimum down payment backed up with proof of
income that supports the debt service.

Auto loans are available to individuals upon discharge of your
existing debt. And believe it or not you will start receiving
offers for credit almost immediately. But "caution" is the
watchword at this critical point in time.

The offers of credit could have been what got you into trouble
in the first place.

About The Author: Tony Merlino is webmaster and legal marketing
consultant at http://www.JerseyJustice.com ,a legal information
and marketing portal for clients and their lawyers in New
Jersey.

Building Credit Ideas

2005-11-18T21:47:00.000-05:00

Is The Use Of "Pay Day" Loans Wise?

2005-11-18T06:16:00.000-05:00

Could pay day loans be the answer consumers with low bank
accounts have been looking for? Is there any harm in using
these services? Aren't they better than using credit cards or
going hungry?

You've seen the commercials. Cute characters promise financial
prosperity. Happy, professional individuals appear to regularly
visit their corner pay day loan shop as proudly as cashing a
check at the bank. Customers at the grocery store all recommend
pay day loans as the easy solution for a lack of funds.

WHY USE A PAY DAY LOAN?

Some individuals reason that paying a bill with borrowed money
is better than receiving bad credit marks because of not paying
the bill. This is understandable. However, some financial
institutions are willing to make the occasional exception if
contacted about the situation. Or there may be a small fee, but
not a credit report made.

Using it for groceries or other items? Consider the true cost
before making a decision. Compare the cost of using a pay day
(or cash advance) loan to the fees charged for taking a cash
advance on your own credit card. Can family help? Often those
who are forced to use pay day loans are not able to repay the
loan by the next pay check and that can lead to a cycle of debt
and stress.

WHAT IS THE COST?

Several sources, including a consumer report by the FTC
(Federal Trade Commission) and the CFA (Consumer Federation of
America) state that the usual APR is between 350 - 650% with
some as high as 780%!

A loan of $100 ranges in cost between $15 - $30. If the loan is
not repaid by the pay date then it can be renewed with another
fee due at each renewal. A loan of $100 can cost $60 in fees
after 3 renewals.

WHO BENEFITS?

Based on the warnings issued by federal and consumer
organizations it is clear that using pay day loans or cash
advances from these businesses can often lead to more debt and
problems. Some sites were reported to automatically roll over
the loan and only withdraw the renewal fee on the pay date.
Other sites surveyed by the CFA required customers to agree in
contract to not participate in class action suits or to file
for bankruptcy.

For those who are having debt problems it is recommended to
seek no- or low-cost credit counseling from a local non-profit
organization. These organizations can help with reducing
current interest charges and lowering monthly payments. If the
problem is budget, you should look to a financial planner who
can help you to manage the money you do have and avoid using
credit at all.

About The Author: Yvonne Volante, an author with
http://www.debtorelief.com has written about debt and the
positives and negatives of debt. Visit the site at
http://www.debtorelief.com for great resources about debt and
debt relief.

Debt - Strategically Pay It Back

2005-11-16T14:46:00.000-05:00

When paying back debt, a little strategy goes a long way. It can literally save you hundreds, even thousands of dollars in interest charges. And the best part is that the best, most effective strategy is so easy to follow.

List Your Debt
Make a list of all your debt: The amount of each, the monthly payment and the interest rate. You may have trouble finding this information, but it's worth bringing it all together into one place and documenting it in a format you can follow. You can't manage your debt strategically if you don't even know the full extent of it, now can you?

Remember to include your credit cards (be sure to include the different rates and balances for purchases and cash advances) other cards, loans, mortgages, and even money you've borrowed from friends or family. All debt counts when you're trying to pay it off completely or to get it down to a manageable level.

Bad Debt and Good Debt
Go through your debt and organize them into "good" and "bad" debt. This may sound a bit odd, but all debt is not created equal - certain types of debt are nowhere near as bad as other debt. A mortgage, for example, is an investment in a house, paid over a fixed term - there's no real risk of paying a ridiculous amount of interest or never getting it paid off. On the other hand, the interest you're paying on a credit card isn't tax deductible and isn't associated with an asset of value and so that debt is "bad" debt. Below are a few examples of both types of debt:

Good Debt - Mortgage, Student Loan, Car Loan
Bad Debt - Credit Cards, Store Cards

As a rule, good debt is for a fixed amount of time and allows you to buy something of value that without the debt, you couldn't otherwise afford. On the flip side, bad debt is "revolving" and is used as a substitute for cash to purchase in many instances, non-essential products and services.

Prioritize
For the time being, cross your good debt off the list. You shouldn't consider paying your good debt off early until you've paid all your bad debts off.

First, arrange your debts by interest rate, with the highest interest rate at the top. Odds are that the debt at the top will be a store card or credit card, which could have a very high interest rate. Next, try to transfer as much money as you can from the high-interest cards down the list to the lower-interest ones.

Once you've done that, focus all your energy on repaying the debt with the highest interest rate. Pay the minimum on everything else and throw as much money as you can find at paying that debt off as quickly as possible.

A few ideas to come up with some additional monthly income are: Cancel any non-essential monthly commitments and put that money towards your payments. Until you pay off your bad debt - stop saving. Keep track of where your money goes, for a month or two. This will enable you to find areas where you're spending money frivolously that you could be using to pay off your debt.

Do your best to give up any expensive habits you might have. You'll be shocked at how fast your debts can go down if you put the money you normally spend on smoking, drinking or gambling towards them! I'm not trying to spoil your fun here. Simply make a few small sacrifices for a while, and your life will be so much better in the long run.

You have to be aggressive against your high interest carrying bad debt and focus on eliminating at all costs. This is a war, be the aggressor, win the monthly battles and before you know it you'll win your war against debt.

About The Author: Kevin Erickson is a contributing writer for: http://www.aneyeondebt.com and http://www.debtmergeresources.com and http://www.debtmgmtresources.com. This article may be reproduced only in its entirety. ================== ARTICLE END ==================

Debt Elimination Program Reviews, Tips And Free Articles!

2005-11-11T00:32:00.000-05:00

Great Site Debt elimination is a hot topic now that a new year will soon start, and all the bills from Christmas start to come in.

Debt Settlement -- Why The Critics Are Wrong

2005-11-10T06:09:00.000-05:00

After October 17, 2005, a lot of people are going to become
interested in debt settlement as an alternative to bankruptcy.
That's the date the new bankruptcy law goes into effect, and it
means a rude awakening for many consumers seeking a fresh start
in bankruptcy court.

It used to be that 7 out of 10 people filing personal
bankruptcy were granted Chapter 7 status, where the unsecured
debts are totally wiped away. That will change under the new
rules. If your income is above the median for your state, or
you can pay back at least $100 per month toward your debts,
then you'll be turned down for Chapter 7. Instead, you'll be
shifted into Chapter 13, where you pay back a portion of the
debt over 3-5 years.

It gets worse. When the court calculates your allowable living
expenses, it will use the approved IRS schedules, not your
actual documented expenses. So even if you don't think you can
pay $100 a month or more, the judge will probably disagree.
Instead of a fresh start, many people will be faced with the
grim reality of a harsh 5-year plan, on a court-mandated budget
that forces them to adopt a much lower standard of living.
That's where debt settlement starts to look pretty attractive.

Yes, I know debt settlement has its critics. I've criticized
aspects of the industry myself. But what the critics don't seem
to understand is that this approach is for people who would
otherwise go bankrupt! Let's examine the three main complaints
against debt settlement and see where the critics are missing
the mark.

"Debt settlement has a negative impact on your credit score."

Wow. Big deal! Pretend it's two years from now. Would you
rather have an A+ credit rating or be totally free of debt?
Pick one please, because you can't have both. All debt
reduction programs have a negative impact on credit scores.
That's why only people who truly can't keep up with their bills
should go into one of these programs. But it's pointless to
worry about your credit while you're being crushed with debt.
That's like worrying about how the yard looks after your house
has burned down.

"You might have to pay taxes on the canceled portion of the
debt."

I've always been amazed at how frequently this lame criticism
is repeated in article after article. Yes, it's possible that
you may need to pay taxes on forgiven debt balances, but the
odds are against it. That's because the IRS allows insolvent
taxpayers to exclude canceled debts. So unless you have a
positive net worth, you probably won't need to pay taxes on
your settlements. And even if you did, so what? You'd be paying
taxes because you saved a bunch of money off your debts! And
this is a problem?

"Collection activity will continue and you might get sued."

Yes, if you fall behind on your bills, your creditors will most
certainly continue attempts to collect what's owed, and one or
more of those creditors might sue you in civil court. But
again, this criticism totally misses the mark. Collection
activity is already a function of being in debt trouble. At
least debt settlement allows the consumer to use the collection
process to eliminate debt through negotiated compromises. Even
lawsuits need not be cause for panic, since they can often be
settled out of court. The only reason to allow a legal action
to proceed to the point of wage garnishment, property lien, or
bank levy is lack of financial resources with which to settle.
And if that's the case, the debtor should be talking to a
bankruptcy attorney anyway.

In contrast, let's look at some of the positives of debt
settlement.

1. You can save $1,000s versus any other method of debt
elimination (except for Chapter 7 bankruptcy, which will become
difficult to accomplish after the new law takes effect).

2. You can get out of debt in 2-3 years, and much faster if
there is some available home equity to work with. This is a lot
better than 5 years in the financial boot camp of Chapter 13
bankruptcy, or 5-9 years in a credit counseling program.

3. You keep control over the process more than with any other
approach.

4. You maintain personal privacy. With bankruptcy, your case
file becomes a matter of public record, easily located via
Internet search by future employers, landlords, or creditors.

5. You retain your dignity while working through your financial
problems. Bankruptcy still feels like failure to a lot of
people. Debt settlement represents an honest and ethical
alternative to that extreme solution.

6. You can adjust your monthly funding into the settlement
program up or down depending on real-world conditions in your
financial life. If your income fluctuates from one month to the
next, or you get hit with an unexpected expense, it won't
torpedo the whole program. The built-in flexibility of debt
settlement gives it a huge advantage over other options, all of
which require a fixed monthly payment.

Once you're made the determination that debt settlement makes
sense for your situation, you'll need to decide whether to go
it alone or seek professional assistance. For people who aren't
easily intimidated, there's no question that the do-it-yourself
approach is the way to go. For others who can't handle the
least bit of pressure or just want to focus their time and
energy elsewhere, hiring a professional settlement company may
be the correct choice.

If you do decide to take the do-it-yourself approach, follow
these tips:

* Use a privacy manager on your telephone service to screen
creditor calls so that you only speak to creditors when you're
ready.

* Make sure you have a solid game plan for building up money to
settle with, and set the funds aside in a separate bank account.

* Do not send settlement funds until you have the deal in
writing. No exceptions!

* After paying the settlement, follow up to obtain a zero
balance letter from the creditor, so you don't have bogus
collection problems later on.

* Know your rights as a consumer by reading the free resource
articles on debt, credit, and collections at the Federal Trade
Commission website, (www.ftc.gov).

* Don't be intimidated or pressured into accepting a settlement
deal that you can't handle.

Remember, thousands of people settle their own debts every
year, without need for lawyers or bankruptcy. You can do it too
if you're disciplined, determined, and prepared to ignore some
of the crazy stuff that bill collectors say. When you're
finally debt-free, you'll feel a lot better about having worked
it out on your own. Good luck on your road to debt freedom!

About The Author: Charles J. Phelan has been helping consumers
become debt-free without bankruptcy since 1997. A former
executive in the debt settlement industry, he teaches the
do-it-yourself method of debt negotiation. Audio-CD material
plus expert personal coaching helps consumers achieve
professional results at a fraction of the cost.
http://www.zipdebt.com

Your Credit History

2005-11-08T00:48:00.000-05:00

Choosing A Debt Management Program

2005-11-03T22:15:00.000-05:00

Warning:
DO NOT Begin any Debt Management Program, UNLESS the Company You Choose Meets these Six Criteria:

In fact, if these six criteria are not met, don't even get your hopes up...

1. The company has been in business for over one year.

If 9 out of 10 new businesses fail within one year, why would you want your financial future dependent upon the success of a brand-new business?

There's been an explosion of debt management, debt settlement, debt negotiation and credit counseling companies in the past 1-2 years. Check to see when the company you're looking at began operations. BEWARE of brand new companies that will ask for your business today, yet will be out of business by this time next year.

2. The company's Reliability Report with the Better Business Bureau is both listed and free of unresolved complaints.

Check here and watch out for companies with a long list of complaints: www.bbb.org
Look at how long the company has been in business and contrast that against the number of complaints the company has had. It's very rare for a company to be in business for very long without getting any complaints, although some have done it. Pay close attention, however, and RUN from any company who's only been in business for a short time yet has a list of complaints with the BBB.

If a company does have complaints, be sure they are resolved. Ask the company about the complaint and trust your gut when you hear their response. Is it genuine and understandable or do they sound defensive like they are covering something up?

3. The company requires complete information from current statements BEFORE ever giving you a quote.

The Debt Consultant / Counselor / Specialist requires you to provide all current statements for your debt accounts before quoting you a monthly payment amount, length of program or estimate of how much you can reduce your debt.

Beware of anyone who gives you a quote without thoroughly researching your account statuses, creditor names, balance transfer, cash advance and large purchase activities, minimum payment amounts and interest rates FIRST. This is the surest sign of a company who is only out for your initial fees and either has no intention or ability to service your accounts after you sign up.

4. The company is working for you, not your creditors.

In whose best interest is the company looking out for? Better make sure you know! If you ask a bankruptcy attorney what your best option is, what do you think you'll hear? Of course: bankruptcy. But is it really best for you, or best for the attorney who gets paid a healthy fee and never suffers the consequences of the bankruptcy filings that you must live with for the rest of your life?

What about the Mortgage Banker or the Credit Counselor? Think they work for you? Think again...

5. The company is focused on helping you find the right solution for your situation, not forcing you into the only solution they provide.

Is it possible for a company who only provides a single solution to provide you with unbiased guidance in making such an important financial decision? Maybe. But is it likely? No way. There's a trend in financial services that a few companies are finally catching on to, and that is focusing on a client's needs and meeting those needs, instead of trying to "put a square block into a round hole."

Many companies specialize in a single solution and they are indeed the best at providing such a service, but how do you know that's the solution that's best for you? Who do you go to for guidance in deciding what's best for your situation? Look for a company who can provide any solution you may need. Find a company whose focus is finding your best solution, instead of fitting "their solution" onto you.

6. The company has real results, a solid, proven track record and plenty of actual clients who are raving fans recommending their services.

Take some time to read testimonials, if they are offered at all. Ask yourself if they are genuine. Listen if you can. Look for a company who can show you examples of what they do, proof of the results they claim and plenty of people to refer to who have experienced the company's services.

Jesse Niesen is the COO of STARTOVERTODAY.COM , a Nationwide Financial Solutions Company solving financial, debt and credit problems for clients nationwide. Jesse has led STARTOVERTODAY.COM in helping thousands of people resolve over $20,000,000 of unsecured debt since the summer of 2002 - without any complaints to the BBB. His team of Financial Strategist offer debt management consultations to help you make your best decision for immediate debt relief and long-term financial success. They offer all options available to you without bias, including debt consolidation, debt reduction, debt elimination and more! Call toll-free 1-800-251-1991 or visit www.startovertoday.com to become DEBT FREE and to have your financial problems solved today!

Students Investing In Their Future Need To Manage Their Finances Today

2005-11-01T19:27:00.000-05:00

With the A-level results coming out, the long wait for UK
school leavers hoping to go to university will soon be over.
All the hard work that has been put into achieving the grades
required will now pay off and the fun and freedom that is
student life can begin. This may have been the case in the
past, but the notion that university life is socially and
financially responsibility free is now lamentably outdated.
These days, if you want to study beyond the age of 18, learning
becomes very expensive.

According to the National Union of Students (NUS) (
http://www.nusonline.co.uk/ ) the typical cost of living
expenses at a university outside London are around £8,600 a
year for the essentials of food, rent, fuel, books and tuition.
For students' studying in London they can expect to pay over
£10,000 a year.

Barclays bank has calculated that currently the average
graduate leaves university owing £13,501. Jeremy Law, the head
of student and graduate banking at Barclays said, "students
starting a three-year course this September could be graduating
with debts of almost £20,000.graduates will find themselves with
debts for years to come which may affect their ability to buy
homes and invest in pensions.prince or pauper, these levels of
debt may act as a deterrent to some people considering going to
university."

With student debt growing every year - financial comparison
sites like Moneynet ( http://www.moneynet.co.uk ) are seeing an
increased need for students to take control early and carefully
plan for their future. Richard Brown, Chief Executive of
Moneynet said "We all understand the importance of budgeting,
but for students this can be especially difficult."

HSBC has estimated that there will be a difference of around
£6,400 between the average student's income through loans and
their total expenditure this year, making the skill of how to
budget effectively a vitally important one to develop early on
in a student's life.

A spokesperson for the NUS said, "When you get your student
loan it can seem like a lot of money. And for those who have
never had to juggle lots of money before it can be difficult
not to go out and blow it."

There is help available from the NUS and other sources to
students who get into financial difficulty. The NUS has set up
advice centres which can provide support on money management as
well as advice on how to access any other funds such as Higher
Education Grants, Childcare Grants, Disabled Students'
Allowance, Parents' Learning Allowance, as well as possible
reduced rate loans, which may be available dependent on course
subjects and individual circumstances.

An important issue for freshers to learn is that making careful
financial choices early on, such as the right bank account, can
help keep graduation debt to a minimum. By focusing on the
interest rates, authorised and unauthorised overdraft borrowing
rates, bank charges and ease of access to the money in their
account, rather than the host of freebie sign-up gimmicks can
make all the difference.

The NUS advises, "Students not to get a credit card as you will
pay exactly the same high interest rates as everyone else". In
general, credit cards rarely carry genuinely privileged terms
solely for students, however students can still utilise cheap
forms of credit specifically devised for their circumstances,
such as graduated interest-free overdrafts and low interest
student loans, before resorting to a credit card if necessary.

Living at home will help to keep costs down, but for most
students, this is frequently either not possible, or not
desirable. The best way to make finances go further whilst at
college is obviously to get some form of job that will fit in
around studying. Although many employers do not like employees
having irregular working hours due to external commitments,
there are some employers who will veritably embrace students as
they can fill in on a part-time basis to cover unsociable hours
and holiday periods. Supermarkets, restaurants and bars are
ideal for student work, as is working late shifts in large
financial firms, or being a mystery shopper for research
companies, or even becoming a film extra for £50 to £200 a day.

The real problem that needs to be in the minds of all students
though is that any money that they borrow, whether it is
through a loan or a credit card, must still be paid back at
some point, even if that time may seem a long way off, and they
expect to be earning a high salary. The truth is that there are
more graduates leaving university every year, and there is
increasing competition for what seems to be a dwindling
graduate job market with diminishing pay rates. Students need
to take control of their finances as early as possible in order
to stop their finances taking control of them for a long time to
come.

About The Author: Richard lives in Edinburgh, occasionally
writing for the personal finance blog Cashzilla (
http://cashzilla.blogspot.com/ ), and hates Brassica oleracea
var gemmifera (aka brussel sprouts).

How To Use A 'Credit' Card Online Safely.

2005-10-31T20:29:00.000-05:00

Please use caution when you use a 'credit' card on the
internet. There are 'criminal elements' every-where, and online
is no exception. I will actually go as far as to say that you
should NEVER use a 'credit' card online AT ALL. Hear me out! I
have a PayPal account and it can be quite useful for ebay or
other places that accept it. To get a PayPal account you need
some sort of credit card, right? WRONG! There are two main
types of 'plastic card', the first is a 'CREDIT' card (
potentially very dangerous when used online ). The second card
is a 'DEBIT' card - very SAFE to use online, if you go about it
the right way.

You do not need a credit card to establish a PayPal account. (
or for lots of other online services..) A 'debit' card is much,
much safer and I will explain why. Firstly, if you use a credit
card online and you are unlucky enough to have your card
details stolen or intercepted, then ALL the money that is
available to that card can be lost - permanently. Can you
afford that?? Even if you can afford to lose that money ( lucky
you!! ) do you really want to hand it over to a criminal? My
guess would be no. So don't risk it happening! I don't have a
credit card at all, and that is largely irrelevant, but I can
purchase things online.

What I use is a VISA enabled DEBIT card instead, and this is
how it works. I have two bank accounts, one with all my money
in it, the other is nearly always completely EMPTY. The empty
account has the VISA debit card attached to it. How does that
work if it is empty most of the time? Very easily. The first
account has an online banking facility and I simply transfer
money into the VISA account whenever I need to use it. I only
transfer about ten dollars more than I think I will need to
make a purchase, so that if my VISA card details are
intercepted or used by any criminal organization, they can't
get at ALL my money.

Yes, online banking has potential risks as well, but with the
added layers of security that a bank provides, the risk is much
reduced. Also you can directly visit your bank to sort out any
problems should they occur, but it is much ( very much ) harder
to do that if you are dealing with an online organization that
may be based a different country altogether. So, I hope you
aren't using a credit card online. (!?#!!)

Note 1 : The reason I transfer about 10 dollars more than I
think I will need for any given transaction is to cover
currency conversion variations and un-noticed packaging,
postage, or insurance costs. I also like to leave a balance of
about 20 dollars to feed my online insurance policy. ( see the
paragraph below note 2. )

Note 2 : Most online banking facilities allow an unlimited
number of transactions, with no transaction fees. So you can
use it as much as you want to and it costs you nothing. Now
that's how much I like to pay!! Don't forget that in some cases
you can do direct bank deposits to make a purchase online. That
means even less risk to you because the vendor doesn't even
have the chance to get at your card at all. They only get the
money, and that's just fine by them. If you need to set up
recurring payments for a membership or subscription service,
the best way is by direct bank deposit. You set it up, you
control it, and 'they' can't change what they charge you or add
extra charges without you knowing about them :-)

There is a cost involved with having a second bank account and
that cost is usually thought of as dead money, but if you look
at that monthly ( or annual ) cost as a form of 'pay as you go'
insurance, then it is a lot more acceptable. What I mean by pay
as you go insurance is the charges ( account keeping fees ) for
the usually empty second account are your insurance policy
against losing the contents of your main account to an online
criminal. When you look at it that way, it is really rather
cheap. You also get insurance against financial loss from VISA
if your card is lost or stolen in the 'real world'- not that
there would be a substantial amount available to that card if
you operate it the way I have outlined above. You can use
either type of plastic card on the internet, and the vendor of
whatever you purchase will never know what type you are using,
but I know what type of card I will always use. The debit card.

Footnote : No, I don't have a 'credit' card at all, so without
the services of a debit card I wouldn't be able to purchase
much online. But I wouldn't have a credit card even if I could
'afford' one. I personally think that credit cards are just too
big a temptation for the average person. If you have thousands
of dollars available to be spent as credit, that is just what
most people do, they spend it. Why is that a problem? Well if
you don't have the money to buy whatever you have bought using
your credit card, where are you going to find the money to pay
that credit back?? Oh, and what about the rude amount of
interest that a lot of people end up paying on their credit
cards? Sometimes for years.. I may be old fashioned in this
regard, but saving your money by having a budget, and buying
something when you can afford to do so, really does save you a
lot of money in the long run.

About The Author: Colin Visser is the owner of
http://webdziner.gotdns.com/ and offers web site design &
english proof reading services. Proof reading for web sites,
software, help files, email and news-letters. Free quotes.
Please send comments using
http://webdziner.gotdns.com/email.html

Managing Credit Cards Effectively

2005-10-30T20:50:00.000-05:00

Credit cards are almost a necessity in today's society. It has
become harder and harder to get through life without plastic.
If you want to make purchases over the Internet, guarantee a
hotel room, or perform a wide variety of other financial
transactions, a credit card is essential. And, the truth is,
credit cards can be a valuable financial tool, provided you
manage them effectively.

All credit cards are definitely not created equally and the
first step to effective credit card management is shopping
around for the right card in the first place. The factors to
take into consideration are interest rates, annual fees, other
fees, grace periods and aspects like cash back or other rewards
for using the card.

Interest Rates

One of the incentives credit card companies use to try to get
customers to choose their card over all the others floating
around is to offer a special introductory interest rate. An
introductory rate sounds good, but can be a trap for the
unwary. Generally, the customer opts for the low introductory
rate, runs up the charges on the card, and is not able to pay
the card off by the end of the introductory period. That's when
the 'after-introductory' rate kicks in, and you find yourself
paying from 12-20% on your credit card debt. When you are
interest rate shopping, you also need to make sure that the
interest rate won't take a substantial jump if you are late
with a payment. Some companies bump the interest rate if your
payment is even a day late, and the change is permanent. You
don't ever go back to the lower rate.

Fees

Be sure to read the fine print. Credit card issuers have gotten
fairly ingenious about hiding a variety of fees that the casual
consumer, who doesn't bother to read all of the credit card
details, may end up paying and not even be aware. Annual fees
are fairly straightforward. There are cards that charge annual
fees just for the privilege of carrying the card, and there are
others that don't charge annual fees at all. An annual fee is
not necessarily bad, depending on the perks that go along with
it. If there are none, don't bother with cards that charge an
annual fee. On the other hand, if you have no credit history or
a bad credit history, you may have to get a card with an annual
fee, and use it until you can qualify for a different one. In
most cases the annual fee can be rolled into the monthly
payments and doesn't have to be paid up front, although that is
not always the case.

Watch out for hidden fees like closure fees. Some companies
actually charge you for closing your account. The only way to
avoid closure fees are to carefully read all of the credit
card's terms and conditions before accepting it and make sure
that no such fee is attached.

Late fees can be charged when your payment is late, sometimes
even as little as one day late. These fees can vary, but again
are disclosed in the credit card terms, so at least you are
aware and can avoid them by keeping your payments current.

If you travel, beware of overseas transaction fees. Some card
issuers have begun to charge a 1-2% fee off the top for using
the credit card overseas.

Grace Periods

If you plan on paying off your balance in full each month to
avoid incurring any interest fees, make sure your card has a
grace period that allows you to do so. Some cards begin
charging interest at the time of purchase. In that case, even
if you pay off your balance every month, you will still end up
paying interest to the credit card company. Make sure there is
a grace period on your card - that's the amount of time you
have before you start incurring interest charges and it's
usually something like 25-30 days. Be sure to read the card
disclosures carefully so you will know if there is a grace
period during which you pay no interest, or not. If you don't
pay off the balance of your account each month, grace periods
really don't make too much difference because you will be
paying interest anyway.

Other Benefits

Some credit cards offer additional benefits for using their
card - things like airline miles or a percentage of cash back
on all your purchases. If you travel a great deal or routinely
use your credit card for all purchases and then pay them off
before the end of the month, these can be valuable additions.
However, be sure to read all of the fine print and make sure
the perks aren't costing you more in fees and interest than
they are worth.

If you can't get by without a credit card, and very few of us
can in this day and age, at least be aware of all the different
types of offers that exist and choose the one that will benefit
you most in the long run.

About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Payday loan
or any type of faxless loans please visit us at
http://www.PaydayLoanChoice.com

How To: Avoid Foreclosure

2005-10-29T00:40:00.000-05:00

In order to avoid foreclosure, you need to find the companies
and the services that are able to provide you with high quality
information. You do not need someone to come in and try to sell
you yet another deal. For honest to goodness help in getting
out of this debt and mess, you need high quality advice. While
it is not easy, you can avoid foreclosure.

First of all, make sure that avoiding foreclosure is the right
thing for you. If you can not make the payments and you cannot
find a way to get around it, letting it go will ruin your
credit, but until it is over it can't get any better. While
this is not news you want to hear, it can be helpful to some.

But, when you do have a shot, you need to take it. To avoid
foreclosure, you need many options. For example, you may want
to actually call the bank and ask them if there is a way you
can work with them to end the problems. Maybe they can extend
your payments so that you can get back up.

You may be able to get a loan that will cover the amount that
you owe as well as any other money that you need. This can then
be paid off in installments. Although hard to find, this is one
method to avoid foreclosure.

You should take the time to speak with the creditors that you
owe money to and see if you can work something out with them.
Be honest and tell them what has happened, what you plan to do
to get out of it, and see if they can help you. If it does come
down to selling the house, do your best to get through it before
it is too late. You can avoid foreclosure by taking the time to
find all the options that you have and then choosing the best
possible answer for you.

About The Author: For more information please see
http://www.avoid-foreclosure-info.co.uk

Credit Reports And Credit Reporting Agencies

2005-10-27T20:18:00.000-05:00

We all know that our financial transactions are reported to
credit agencies that track how well and how quickly we pay our
debts and that when we apply for a loan for one reason or
another, those agencies report our credit history to
prospective lenders. However, most of us don't know a great
deal about how that actually happens and how our credit is
rated.

The fact is that credit reporting has evolved to an industry
all of its own. Just a few short years ago, when someone
applied for a loan, he or she put down credit references -
retail stores, banks, or other people or places with whom they
had done business in the past. As a matter of course, the
lender checked the references and decided whether or not to
grant a loan based on an amalgamation of the responses from
them. That really isn't the case any more.

Instead, there are three major agencies that track everyone's
credit and provide a credit rating when contacted by a
potential lender. The three agencies are Equifax, located in
Georgia; Experian, located in Texas; and Trans Union, located
in Pennsylvania. When someone applies for a loan, the lender
generally contacts one of these three agencies and obtains a
credit score and the score helps the lender decide whether or
not to make a loan.

Credit Scores

How is a credit score calculated? Until recently, that was one
of life's great mysteries, but over the past few years new
rules and regulations have made the information more readily
available. Your credit score is a number that ranges from 300
to 900, although the exact formula for determining that number
is proprietary and is not released. This is how it works in
general.

· 35% of the score is based on the history of how you have (or
have not) paid your bills. The agencies track how many of your
bills have been paid on time and how many haven't, as well as
whether or not any of them have been referred for collection.
The more recently you have had a collection or failed to pay
something on time, the worse your score will be.

· 30% of the score is based on the debts you have at the time
of the rating. It is includes car and home loans, credit card
debt, retail store debt and the like. If you have several
credit cards and they are all limited out, your credit score is
lower.

· 15% of the total score is based on how long you have had
credit. If you have never had credit or have only had credit
for a short time, the lower your score will be.

· 10% of the score is based on the number of inquiries that
have been received about your report, particularly if there are
several in the past year.

· 10% of the score is based on your current credit and the
types of credit you have. The number of credit cards and loans
you have, as well as the available credit you have on your
credit cards and considered.

Because your credit score is based on these factors and they
are constantly changing, your credit score changes along with
them. Therefore, there are things you can do to change your
credit rating and bring it up.

Changing your Credit Rating

The first thing to do is get a copy of your credit report and
make sure there aren't any mistakes on it. If there are, take
steps to get them corrected. Errors in reporting do occur,
although the credit bureaus would like for you to think they
are foolproof. Here are a few more tips to improving your
credit rating.

· Don't pay off the entire balance on your credit card. Keep
about 75% of it paid and keep a 25% balance. This applies to
multiple credit cards as well.

· Don't get rid of your older accounts. Keep them open. The
credit reporters look at the age of your accounts and the
longer you have had a particular account in good standing, the
better.

· Pay your bills on time. Experts say that this is probably the
most important factor of all.

· Prevent inquiries to your credit report whenever possible.
Your score drops with the number of inquiries.

The real key, however, is to only get credit when you need it
and when you do get it, use it wisely. You can damage your
credit rating with just a few late pays or collections and it
may take up to a year of paying everything on time to build up
a better rating.

About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Payday loan
or any type of faxless loans please visit us at
http://www.PaydayLoanChoice.com

What Is Foreclosure And How To Avoid It?

2005-10-26T18:46:00.000-05:00

Are you having trouble making ends meet? Not paying your bills
on time? Are you not able to keep up with your mortgage
payments and continue to get further and further behind? How do
you get yourself out of this mess and not lose your home?

Avoiding foreclosure may be possible and you should work hard
to avoid it.

What is foreclosure?

Foreclosure is the legal means by which a bank or other secured
creditor sells or repossesses your home or a piece of real
property due to your default on its promissory note. When your
house is foreclosed on, you must move out and it is usually
sold at public auction. When the foreclosure process is
complete, it is typically said that "the lender has foreclosed
its mortgage or lien."

In the United States, there are two sorts of foreclosure in
most common law states. Under "strict foreclosure," the bank
claims the title and possession of the property back in full
satisfaction of a debt, usually on contract. In the proceeding
simply known as foreclosure, the property is exposed to auction
by the county sheriff or some other officer of the court. Many
states require this latter sort of proceeding in some or all
cases of foreclosure, in order to protect any equity the debtor
may have in the property, in case the value of the debt being
foreclosed on is substantially less than the market value of
the property. In this type of foreclosure, a deed is issued to
the winning bidder at auction. Banks and other institutional
lenders typically bid in the amount of the owed debt at the
sale, and if no other buyers step forward they get title to the
property in return.

Some states have adopted non-judicial foreclosure proceedings,
in which the mortgagee, gives the homeowner a legally specified
notice of the default and the mortgagee's intent to sell the
property. If the homeowner fails to cure its default, or use
other lawful means, such as filing for bankruptcy to stop the
sale, the mortgagee or its representative will conduct a public
auction in a similar manner as the auction described above. The
highest bidder at the auction becomes the owner of the property
free and clear of any interest of the former homeowner.

What Should You Do To Avoid Foreclosure?

. Do not ignore letters from your lender. If you are having
problems making your payments, call or write to your lender's
Loss Mitigation Department without delay. Explain your
situation. This shows good faith on your part. Be prepared to
provide them with financial information, such as your monthly
income and expenses. Without this information, they may not be
able to help.

. Stay in your home for now. You may not qualify for assistance
if you abandon your property.

. Contact a HUD-approved housing counseling agency. Call (800)
569-4287 for the housing counseling agency nearest you. These
agencies are valuable resources and they frequently have
information on services and programs offered by Government
agencies as well as private and community organizations that
could help you. The housing counseling agency may also offer
credit counseling. These services are usually free of charge,
and they can help explain possible alternatives.

Some of the possible alternatives you may consider include the
following:

Special Forbearance. Your lender may be able to arrange a
repayment plan based on your financial situation and may even
provide for a temporary reduction or suspension of your
payments. You may qualify for this if you have recently
experienced a reduction in income or an increase in living
expenses. You must furnish information to your lender to show
that you would be able to meet the requirements of the new
payment plan.

Mortgage Modification. You may be able to refinance the debt
and/or extend the term of your mortgage loan. This may help you
catch up by reducing the monthly payments to a more affordable
level. You may qualify if you have recovered from a financial
problem and can afford the new payment amount.

Partial Claim. Your lender may be able to work with you to
obtain a one-time payment from the FHA-Insurance fund to bring
your mortgage current.

Pre-foreclosure sale. This will allow you to avoid foreclosure
by selling your property for an amount less than the amount
necessary to pay off your mortgage loan.

Keep in mind that your lender does not want to force
foreclosure proceedings because it costs them a lot of money to
do so. Therefore, if you are sincere and show good faith, they
are more likely to work with you to find a solution.
Foreclosure can seriously affect your ability to qualify for
credit in the future. So get the help you need and avoid it if
at all possible!

About The Author: Greg Smith publishes information on real
estate issues at http://www.searchexact.com/Real_Estate/. Visit
his web site http://www.searchexact.com/ for top resources on
unique and popular topics. This article may be freely reprinted
as long as the author's resource box and url links remain
intact.

The Human Side: Debt Stress

2005-10-25T12:36:00.000-05:00

Tips For Vacationing On A Budget

2005-10-24T14:37:00.000-05:00

Looking for some vacation money saving ideas? There's nothing
wrong with vacationing on a budget. Hey, we all can't travel
like the rich and famous.

You save all year to get the money for a well earned vacation.
You want to stretch your vacation budget but still enjoy
yourself. Sounds like a good plan. To help you out I've
together some vacation money saving ideas that I hope you will
find useful.

If you have a particular destination in mind it pays to plan
ahead. Research the attractions and facilities. Find out what
specials or discounts they may have going. Look for other
things to do or see nearby so that you can make good use of
your time and cut down on the running from place to place.

Plan your vacation for the off season. You can usually get
better deals on lots of things like plane tickets, hotels, car
rentals, cruises and lots of other things.

If you have friends or relatives nearby your destination
consider asking them if you can stay with them. Don't be a
freeloader though. Even though you help pay for the groceries
and other expenses your host incurs, it's still a good vacation
money saving idea.

If you are flying try to plan your trip for when tickets are
traditionally cheapest. That would be Feb thru May and
September thru December (except the week before Thanksgiving
and the two week period before Christmas). Try to avoid flying
on Friday afternoons as this is often the busiest time of the
week for airlines.

Meals can be expensive at restaurants so you can save some
money by packing food for the road.

When eating out try to avoid the places that obviously cater to
tourists. Find out where the locals eat. Ask around. The smaller
family owned places usually have better food at better prices.
You may have to go a little out of your way but it is usually
worth it for some vacation money savings.

Hotels are typically more expensive the closer you get to a
major attraction. With a little planning you can find a good
balance between price and distance.

When picking hotels don't just go by the ratings. Compare the
amenities they offer. Often you will find that you really don't
need everything offered by that 4 star hotel and you can do very
nicely at the 3 star.with a better price!

Consider buying or renting an RV. You travel at your own pace.
Cooking and bathrooms are always close by. You can meet a lot
of other friendly RVers who will usually be glad to point out
the best places to go.

When traveling by car you can save fuel by renting a smaller
fuel efficient model. Packing light, reducing your speed and
maintaining proper tire air pressure will also cut the gas
costs.

Make sure that your car is ready for the trip. Good tires, oil
change, tune-up and all that good stuff. It's a heck of a lot
cheaper and more convenient to deal with these things before
you go rather than on the road somewhere.

Check out the local transportation system of buses, trains or
trolleys. These can be considerably cheaper than using taxis.

Camping is a great vacation money saving idea. There are lots
of campgrounds around. They are cheap and you may end up with
an experience that outshines anything you can get a fancy
hotel.

Plan activities that don't require a lot of money. Hiking, and
swimming are good ones. Local Museums and historical sites are
often very reasonably priced as well as being quite educational
and fun. The big theme parks have their appeal but you can
really go through the cash at those places.

Plan picnics. These can be excellent vacation money saving
opportunities as well as a chance to really relax and enjoy the
local area.

Avoid buying souvenirs. It's easy to get caught up and blow a
bundle on these overpriced goodies. Set some mental rules ahead
of time about how much you will spend on souvenirs and it will
be easier to stick to it when the time comes.

I hope that you find some of these vacation money saving ideas
helpful. Make a plan and stick to it. There's no reason why you
can't have a great vacation without emptying the bank account.

About The Author: The author, of this article, Peter Shannon,
is the owner of the website http://www.1001-vacation-ideas.com.
Here you will find a large collection of vacation and getaway
ideas for travelers searchable by theme and location.

The Human Side: Debt Stress

2005-10-23T12:18:00.000-05:00

Top Credit Card Mistakes

2005-10-23T12:15:00.000-05:00

When you're dealing with credit cards, you're playing with
fire. Unfortunately, there are plenty of people out there who
don't realise that, and make all sorts of dangerous mistakes
with their credit cards every day.

Paying Late.

If you don't set up any kind of automatic payment, then it can
be tempting to just put your credit card bill on a pile and get
to it when you have time. Before you know it, a few weeks have
gone by and you're late. If you leave it to the deadline, you
might find that the payment won't get there quickly enough -
it's not a deadline for sending the money, it's a deadline for
them receiving it.

Paying late is a big mistake for an awful lot of reasons. You
will almost certainly be charged a late payment fee, and your
late payment will go on your credit report for everyone to see.
You may also find that you lose any good rate you had, and your
debt is automatically thrown onto the very worst rate the
company offers.

To avoid late payment, you should always post your payment a
long time before the due date (at least a week). If you've left
it to the last minute, phone up and try to pay that way.

Being Taken in By Rewards.

It is never, ever worth getting a higher-interest card simply
because it offers some kind of loyalty points, flight miles or
whatever. Even if it offers a cash reward, it is unlikely to be
more than you would pay in extra interest - after all, why would
they give you free money? All 'rewards' do is pay you off with
your own money to make you feel like you're getting something
for nothing. You're not.

Collecting Cards.

Seeing some people opening their wallet or bag is a scary
experience. It looks like they have about a hundred credit
cards in there, some of which they haven't used in years. They
have trouble keeping track of all the different cards, balances
and interest rates. Don't be one of these people. You should
limit yourself to a maximum of three cards at a time - any more
starts to make you look over-committed in your credit report,
and could get you turned down for a bigger loan.

Maxing Them Out.

Your limit is just that: a limit, not a minimum! Whatever you
do, don't get a card and immediately spend your whole limit.
This looks very bad. It is better to spend about halfway
regularly and pay it back. Wait for the company to increase
your limit (which they quickly will), and then you'll get that
extra money without the stigma of having a maxed-out card.

Not Reading the Terms and Conditions.

Finally, as ever, don't sign anything you haven't read! I know
it's hard going and you're busy and all, but if you can't
manage to read the terms and conditions then you shouldn't get
the card. Pay special attention to any future increases in
rates, and what kind of fees you can be charged.

About The Author: Sandra is a credit advisor who has helped
hundreds regain their credit scores to respectable levels. Her
blog can be found online at http://www.mycredit-card.com.

Repairing Your Credit

2005-10-20T13:38:00.000-05:00

We live in a consumer society where it seems like more
attention is paid to your credit record than to your criminal
background. Credit has been elevated to a position where it
permeates every factor of a person's life and has even crossed
over into the realm of being a moral question. Have you ever
been made to feel guilty or embarrassed because you can't get a
loan? What about having your credit card rejected at a
restaurant or department store? It's not just that you don't
have money readily available, it's that you suddenly become a
pariah in the eyes of some cashier. And, of course, to everyone
that is standing around within hearing distance.

Nearly everyone has been in one of these situations one time or
another. And, it begins to weigh heavily on your psyche. Don't
despair! Having bad credit does not mean you are a disreputable
person AND there are very few credit situations that are beyond
repair. You just have to know what steps to take and what order
to take them in. If you are careful, payday loans can be an
excellent means of reestablishing your credit.

There are several ways you can go about clearing up your credit
situation.

Payday Loans

A payday loan may be able to help you re-establish your credit.
The way it works is like this. Get the best loan deal available,
with the least fees. Make it small, say for $100. If you can
find a lender who only charges $10 per hundred, you will owe
$110 on your next payday. Even if you have to pay a $25 charge
for the $100 borrowed, the total payment is still only $125.
Pay it off on the due date, in full. Do not be tempted to roll
the loan over because it will just cost additional fees. Don't
borrow unless you know you will be able to pay back the full
amount on the date due and do not borrow from multiple lenders.
Repeat this process several times to build a good reputation
with the company. Payday transactions are ones that may or may
not be reported to credit agencies, but you can generally add
good reports to your own credit profile. It may cost $2-$3 per
lender and you must ask the lender before proceeding.

Credit Cards

According to the Credit Repair Institute, a Visa or MasterCard
are the best credit references you can establish.

At first glance, this may not seem like a great solution
because you are thinking that you probably can't possibly get a
credit card. However, there are banks and other lenders out
there who will issue limited value credit cards to people with
bad credit, on a couple of conditions. First, you will probably
have to pay a fee to get the card in the first place. Then, it
will probably be limited to a small amount, say $200. Pay the
fee, get the card (making sure that it doesn't charge huge
interest) and use it very, very wisely. In other words, go make
a small purchase on the card instead of paying cash for
something that you already intend to buy and have money for.
Then, use the cash you already had set aside to pay the credit
bill, before the due date, so there are no additional interest
fees. Repeat the same process several times, over several
months. Always make sure you are not buying something extra
that you may not have money to pay for, just use the card to
establish good credit.

Other banks issue secured credit cards for which you deposit a
particular amount, for example $200. Make the deposit, get the
card, and then make several small charges on it - again ones
that you know for certain you can pay back in full before the
due date so that you don't accrue any extra interest fees. Shop
around for the card and make sure you get the best deal
available in terms of annual fees, annual percentage rates,
grace periods and any surcharges that may be attached. Secured
cards are nearly as good a means of bolstering credit as
unsecured ones.

Get a Loan

That sounds like crazy advice, but if handled the right way, it
can quickly rebuild your credit. According to the Credit Repair
Institute, this is a fast and reliable method, and can be done
with as little as $400. It involves opening a savings account
at a local bank with about $400. After the account is
established, ask the bank for a loan and tell them you want to
secure it with the savings account. They are likely to grant
you at least 70% of the money you have in savings and, in some
cases, up to 100%.

Take the money from the loan and deposit in a savings account
at a second bank, get a loan against that and deposit that in a
third bank. The money borrowed from the last bank can help pay
the first few payments on the others. Make certain that you
make payments on time and as agreed. Also make certain that the
banks report your payment history to the three major credit
bureaus, monthly.

According to the Credit Repair Institute, this is the quickest
way to rebuild credit quickly. In the meantime you will be
paying for it by paying interest, but the good news is that the
interest earned on the funds deposited in savings will partially
offset the interest payments you will be making back to the
bank.

For more free-reprint articles by Max Hunter please visit:
http://www.isnare.com/?s=author&a=Max+Hunter

The New Bankruptcy Law -- How Will It Affect Debt Negotiation?

2005-10-19T18:42:00.000-05:00

In April 2005, Congress made sweeping changes in U.S.
bankruptcy law that will go into effect on October 17, 2005.
It's called the "Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005," and it means big trouble for Americans
struggling with debt problems.

What effect will the new bankruptcy law have on the practice of
Debt Settlement (also called Debt Negotiation)? Will creditors
still be willing to negotiate with consumers seeking to avoid
bankruptcy? Will lump-sum settlements for 30%, 40%, 50% still
be possible now that this tough new law has been passed?

The short answer is "YES." It will be "business as usual" in
the collection industry. People that choose to file bankruptcy
will definitely be affected for the worse, as I'll outline
below, but those who choose to privately negotiate their way
out of debt will notice very little difference. Creditors will
still negotiate. Deals will still be made. And nothing much
will change in the world of collections. In fact, a viable
alternative to bankruptcy will be needed more than ever.

The credit card banks lobbied with millions of dollars to get
this law passed. They've been working at it for about a decade.
Now they are celebrating. These are the folks who think the
bankruptcy system has been abused by wealthy individuals, who
have defrauded creditors when they could have repaid their
debts.

The facts tell a different story:

1. During the period from 1995 to 2004, bankruptcy filings
doubled, while in that same period, credit card industry
profits TRIPLED.

2. Credit card companies have not been held accountable for
their targeting of "easy credit" to individuals who could not
afford such loans, which in turn has contributed to the wave of
bankruptcies over the past decade.

3. For people 60 or older, 85% of bankruptcies are caused by
medical bills or job loss.

4. A divorced woman is 300% more likely to file bankruptcy than
a married woman.

5. African-American and Hispanic homeowners are 500% more
likely to file bankruptcy than white, non-Hispanic homeowners.

6. Approximately half of all bankruptcies are filed because of
medical expenses due to lack of health insurance, or lack of
adequate coverage leading to uncovered expenses.

7. The median income of bankruptcy filers is $25,000. (So much
for the "rich" abusing the system.)

The new law was a GIFT to the credit card banks, pure and
simple. Some estimates show that it will add another $5 billion
to the industry's bottom line. In other words, the bill is about
profits and not much else.

Since my whole approach is about avoiding bankruptcy, I won't
go into a detailed analysis of the provisions of the new law.
But just to summarize, the net effect is that many (if not
most) people seeking relief under Chapter 7 bankruptcy will be
forced to file under the Chapter 13 version instead. In plain
English, that means that most filers will be forced to pay back
a portion of the debt over a 5-year schedule set by the court.

One of the worst aspects of the new bill is the use of IRS
"allowable" expense schedules for determining your monthly
budget. In other words, your actual living expense are thrown
out the window in favor of the IRS standards (and we all know
how generous the IRS can be!). So if your actual rent is $1,300
per month, and the IRS says it should be $1,045 for your county
and state, that's TOUGH! The court will only allow the $1,045,
period.

In short, people attempting to file bankruptcy after October
17, 2005 are in for an extremely rude awakening! Goodbye cell
phones, cable TV, high-speed Internet access, movies, meals
with the family, and anything else beyond the minimum allowable
expenses as determined by the IRS and the courts.

So what makes me so certain that the banks will be as eager as
ever to settle with consumers for 50 cents on the dollar or
less? Simple. Two words: Stealth Bankruptcy.

Hundreds of thousands of Americans are going to discover the
new reality of this tough law, and they are going to forgo the
court system of filing bankruptcy in lieu of what I call
"stealth bankruptcy." A stealth bankruptcy is when you move
(with no forwarding address), change your phone number, and
drop off the radar screen to live on an all-cash, no-credit
basis. Many people already choose this path rather than deal
with the invasion of privacy that comes with formal bankruptcy.
After the new law goes into effect, more people than ever will
take this approach.

Besides the problem of stealth bankruptcy, there are other good
reasons the banks will settle as they always have. Consider
these points:

A. The creditor doesn't know whether or not you'll still
qualify for Chapter 7 or Chapter 13 bankruptcy. They still face
the risk that you will qualify for Chapter 7 and end up
discharging your debt in full, which means they get NOTHING.

B. Even if you file Chapter 13 under the new guidelines, the
creditor will still only receive 30-50% of the debt on average
(much less in some cases).

C. Under Chapter 13, it will still take the creditors 3-5 YEARS
to recover that 30-50%.

D. A lump-sum of 30-50% TODAY is far better than the same
amount collected over 3-5 years.

Of course, I certainly expect debt collectors to use the new
law to harass and intimidate people who don't know and
understand their rights. You can expect them to say things
like, "You can't file bankruptcy under the new law, so you'd
better pay up today!" They will bully and threaten as always,
but at the end of the day, they will still accept reasonable
settlements. After October 17, 2005, it will still be "business
as usual" in the world of debt collections.

About The Author: Charles J. Phelan has been helping consumers
become debt-free without bankruptcy since 1997. A former
executive in the debt settlement industry, he teaches the
do-it-yourself method of debt negotiation. Audio-CD material
plus expert personal coaching helps consumers achieve
professional results at a fraction of the cost.
http://www.zipdebt.com

Reduce College Debt with Scholarships

2005-10-18T20:15:00.000-05:00

Reduce College Debt with Scholarships
by Dale Clifton, the Scholarship Doctor

Six Scholarship judges were sitting around an oval
table. Forms were piled into 50 boxes. Each one
had the name of a state. I looked at the boxes and
wondered why some of them were overflowing and
others had just a few. This was the first round of
judging. By the time the contest was over almost
16,000 applications would be examined. Some of the
comments were really critical, "Why did this
person bother to send in an application? It's so
sloppy." "This person put the wrong address on
the envelope, even though the correct one is at
the top of the application." One had a cassette
tape inside. We played it and it was a country
song. The applicant was a good musician.

That was twelve years ago, and many people still
do not know or realize that College Scholarship
Planning could reduce or totally eliminate college
financial debt.

One of the first questions I am always asked is,
"When should we start looking?" Then some answer
their own question with, "I bet we're too late
already huh?" The ideal time is to start is the
8th grade to freshman year. Good planning starts
early, but scholarships are posted monthly, and if
you start planning early, you have a chance to
win, big. Many win the very first time. If you are
a junior or senior in high school, go for it. But
remember, your chances to win increase with every
completed application.

You should start College Scholarship Planning even
if there is a chance your child may decide not to
go to college. But if the decision is yes, you
will have everything in place. And the planning
experience is more than filling out a few
applications.

Another common concern is assuming your family
income is too high to win scholarships. Fact: 80%
of all scholarships are need based and income
related, but 20% are not. This means millions of
dollars are still available. It makes good solid
financial sense to make an effort to win
scholarship money regardless of income.

Always remember, the college scholarship effort is
truly a family affair.

©2005 The Scholarship Doctor, Dale Clifton - All
Rights Reserved - Dale is an educational consultant
and expert at helping families win college
scholarships. To learn more about planning to win scholarships, visit
http://ScholarshipDoctor.com

Debt Free Living - 5 Tips To Get Out Of Debt

2005-10-17T18:48:00.000-05:00

A few times I wonder what sort of credit system moved the global economy 200 years ago. If the intention of getting into a business is meant to 'help' fulfill the needs and wants of someone, I don't see how credit card salesmen can drove more people into debt and backruptcy. Clearly most people fail to have a good understanding of the increasingly sophisticated (and complicated) terms and conditions behind the card they apply for, how it benefits the bank more than the applicant and what the ubiquitous card is best used for.
The 'cashlessness' of the advanced world surely works its illusions into the minds of those caught up in the disease of consumerism, who found it too easy to buy anything anywhere with a flash of the card without realizing the interest incurred to the bank everytime a purchase is made. Before you get the math right, you must get personal spending principles and habits right first, and only then you will attain self-awareness and a conservative mindset that lights up a red warning in your head just when you are about to make a purchasing decision.
Here are 5 tips for you to get a headstart:
1) It's not how much money you make (or spend); it's how you can keep. I didn't say this. Robert Kiyosaki said it. Far too often poor people never carry happiness within themselves and depend on external sources for their own happiness, so they either buy to impress others or get a certain 'nice' indulgent feeling for having new things. Mathematically speaking, if that new thing does not serve a purpose or even a significant function, it is a wasted loss.
2) Forget credit; get debit. A debit card is quite similar to your ATM card in that it deducts directly from your account on purchase and can be used worldwide. The credit card enables you to BORROW money from your bank to fulfill a particularly expensive purchase provided you pay back the loan PLUS the interest incurred in the form of monthly bills. Based on track record, if you have always fulfilled your credit obligations, your credit ratings will get better, leading to better protection and concessions. But unless you typically deal with large transactions and understand your spendings cycle, you are better off making your life simpler just knowing exactly where YOUR money--not the bank's--goes if not into your account.
3) Be conscious of your financial balance. Do a monthly plan-and-review for your savings and expenditure. Those items that you have to buy with your card...how necessary and regular is it? Why is it an investment to you and to other people like your family? What else can be cut down? Sometimes you must realize your financial decisions do impact your immediate loved ones and this is a significant consideration to take care of.
4) Use your card only for emergencies. I don't know how many times I've been reminded by my elders but don't get rebellious for the sake of it.
5) If you are facing a tighter budget, you did better confront the problem sooner than later. Discuss with your immediate loved ones and financial advisor where the finer problems lie and they are sure to help, not to aggravate your situation, because if it doesn't affect you, it will affect them and your relationships.
The debt problem is not one on a personal scale but a prevalent one worldwide. It is a sickness infecting people who grow too worried witnessing the exorbitant increase in the cost of living everywhere they go, whether it's in the New York or Kuala Lumpur, so they keep on borrowing in order to 'stick their neck out'. Wrong thinking: it becomes a vicious cycle that feeds on itself, pushing you closer to losing it all than ever before.
Come one day, you finally wake up from your debt problem when the bank or creditors start knocking on your door, and you don't want that to happen. Stop being influenced by what goes on around you but to take good stock of your financial attitude and well-being. You have a choice not to get involved with your bank 'deeper' than you need. It's time to be happy living within your means. Be grateful for what you have now and work the most out of your current resources, then you will find better use for your pair of scissors than to cut up credit cards.

Justin Koh is a freelance writer whose articles have appeared in most major ezines. You can find the latest news and articles at: http://www.debtcenter.info

Ready, Set, Credit!

2005-10-16T16:26:00.000-05:00

A credit card is a great financial tool. It can be more
convenient to use and carry than cash and it offers valuable
consumer protections under federal law.

At the same time, it's a big responsibility. If you don't use
it carefully, you may owe more than you can repay, damage your
credit rating, and create credit problems for yourself that can
be difficult to undo.

Chances are your mail is full of solicitations from credit card
issuers. How do you know if the time is right for a credit card?
Here's some important information that may help you determine
whether you're ready for plastic, what to look for when you
select a company to do business with, and how to use your
credit card responsibly.

Qualifying for a Credit Card

If you're at least 18 years old and have a regular source of
income, you're well on your way to qualifying for a card. But
despite the invitations from card issuers, you'll still have to
demonstrate that you're a good risk before they grant you
credit. The proof is in your credit record. If you've financed
a car loan or other purchase, you probably have a record at a
credit reporting bureau. This credit history shows how
responsible you've been in paying your bills and helps the
credit card issuer decide how much credit to extend.

Before you submit a credit application, get a copy of your
report to make sure it's accurate. It's available from the
three major credit bureaus:

EQUIFAX PO Box 105873, Atlanta, GA 30348; (800) 685-1111 (up to
$8 fee)

EXPERIAN (formerly TRW), PO Box 8030, Layton, UT 84041; (800)
392- 1122 (No charge)

TRANS UNION PO Box 390, Springfield, PA 19064; (216) 779-7200
(up to $8 fee)

Establishing A Credit History

Suppose you haven't financed a car loan, a computer, or some
other major purchase. How do you begin to establish credit?
First, consider applying for a credit card at a local store and
use it responsibly. Ask if they report to a credit bureau. If
they do - and if you pay your bills on time - you'll establish
a good credit history.

Second, consider a secured credit card. It requires that you
open and maintain a bank account or other asset account at a
financial institution as security for your line of credit. Your
credit line will be a percentage of your deposit, typically from
50 to 100 percent. Application and processing fees are not
uncommon for secured credit cards. In addition, secured credit
cards usually carry higher interest rates than traditional
non-secured cards.

Third, consider asking someone with an established credit
history - perhaps a relative - to co-sign the account if you
don't qualify for credit on your own. The co-signer promises to
pay your debts if you don't. You'll want to repay any debt
promptly so you can build a credit history and apply for credit
in the future on your own.

A positive credit history is an asset, not only when you apply
for a credit card, but also when you apply for a job or
insurance, or when you want to finance a car or home.

If Your Application is Denied

If you're turned down for a card, ask why. It may be that you
haven't been at your current address or job long enough. Or
that your income doesn't meet the issuer's criteria. Different
credit card companies have different standards. But if you are
turned down by several companies, it may indicate that you are
not ready for a credit card.

If you've been denied credit because of information supplied by
a credit bureau, federal law requires the creditor to give you
the name and address of the bureau that supplied the
information. If you contact that bureau within 30 days of
receiving the denial, you are entitled to a free copy of your
report. If your file contains accurate negative information,
only time and good credit habits will restore your
credit-worthiness. If you find an error in your report, you are
entitled to have it investigated by the credit bureau and
corrected at no charge.

Getting the Best Deal

Fees, charges, and benefits vary among credit card issuers.
When you're choosing a credit card, shop around. Compare these
important features:

Annual Percentage Rate (APR). The APR is a measure of the cost
of credit, expressed as a yearly interest rate. Check out the
"periodic rate," too. That's the rate the issuer applies to
your outstanding balance to figure the finance charge for each
billing period. For example, if you have an outstanding balance
of $2,000, with 18.5 % interest and a minimum monthly payment,
it would take over 11 years to pay off the debt and cost you an
additional $1,934 just for interest, which almost doubles the
total cost of your original purchase.

Grace Period. This is the time between the date of a purchase
and the date interest starts being charged on that purchase. If
your card has a standard grace period you have an opportunity to
avoid finance charges by paying your current balance in full.
Some issuers allow a grace period for new purchases even if you
do not pay your balance in full every month. If there is no
grace period, the issuer imposes a finance charge from the date
you use your card or from the date each transaction is posted to
your account.

Annual Fees. Many credit card issuers charge an annual fee for
granting you credit, typically $15 to $55. Some issuers charge
no annual fee.

Transaction Fees and Other Charges. Some issuers charge a fee
if you use the card to get a cash advance, if you fail to make
a payment on time, or if you exceed you credit limit. Some may
charge a flat fee every month whether you use the card or not.

Customer Service. Many issuers have 24-hour toll-free telephone
numbers.

Other Benefits. Issuers may offer additional benefits, some
with a cost, such as: insurance, credit card protection,
discounts, rebates, and special merchandise offers.

Credi-Quette

Once you get a card, sign it immediately so no one else can use
it. Note that the accompanying papers have important
information, like customer service telephone numbers, in case
your card is lost or stolen.

File this information in a safe place.

Call the card issuer to activate the card. Many issuers require
this step to minimize fraud and to give you additional
information.

Keep your account information to yourself. Never give out your
credit card number or expiration date over the phone unless you
know who you're dealing with. A criminal can use this
information to steal money from you, or even assume your credit
identity.

Keep copies of sales slips and compare charges when your bill
arrives. Promptly report in writing any questionable charges to
the card issuer.

Don't lend your card to anyone, even to a friend. Your credit
privilege and history are too precious to risk.

You're Responsible

While a credit card makes it easy to buy something now and pay
for it later, you can lose track of how much you've spent by
the time the bill arrives if you're not careful. And if you
don't pay your bill in full, you'll probably have to pay
finance charges on the unpaid balance. What's more, if you
continue to charge while carrying an outstanding balance, your
debt can snowball. Before you know it, your minimum payment is
only covering the interest. If you start having trouble
repaying the debt, you could tarnish your credit report. And
that can have a sizable impact on your life. A negative report
can make it more difficult to finance a car or home, get
insurance, and even get a job.

Federal Protections. Federal law offers the following
protections when you use credit cards.

Errors on Your Bill.

You must notify the card issuer in writing within 60 days after
the first bill containing the error was mailed to you. In you
letter, include your name; account number; the type, date, and
amount of the error; and the reason why you believe the bill
contains an error. In return, the card issuer must investigate
the problem and either correct the error or explain to you why
the bill is correct. This must occur within two billing cycles
and not later than 90 days after the issuer receives your
billing error notice. You do not have to pay the amount in
question during the investigation.

Unauthorized Charges.

If your credit card is used without your authorization, you can
be held liable for up to $50 per card. If you report the loss of
a card before it is used, the card issuer cannot hold you
responsible for any unauthorized charges. If a thief uses your
card before you report it missing, the most you will owe for
unauthorized charges is $50. You should be prompt in reporting
the loss or theft of your card to limit your liability.

Kinds of Credit Accounts

Credit grantors generally use three types of accounts:
Revolving Agreement. A consumer pays in full each month or
chooses to make a partial payment based on the outstanding
balance. Department stores, gas and oil companies, and banks
typically issue credit cards based on a revolving credit plan.

Charge Agreement. A consumer promises to pay the full balance
each month, so the borrower does not have to pay interest
charges. Charge cards, not credit cards, and charge accounts
with local businesses often require repayment on this basis.

Installment Agreement. A consumer signs a contract to repay a
fixed amount of credit in equal payments over a specific period
of time. Automobiles, furniture, and major appliances often are
financed this way. Personal loans usually are paid back in
installments, too.

About The Author: Mark Daoust is the owner of New Credit Guide.
You can visit new credit guide by going to
http://www.newcreditguide.com

What To Expect From A Credit Repair Company

2005-10-15T03:48:00.000-05:00

It would be great if everyone had good credit. But the fact of the matter is, many people do not, and they have to suffer the consequences of having a bad credit score. A bad credit score means a lot more than not being able to buy a home or a new car. A good credit score can also mean the difference between getting a job and getting a decent auto insurance rate. Most people with bad credit would like to fix their credit, but they aren't sure how to do this. One way that is becoming very popular is to enlist the services of a credit repair company. These companies work very hard to help people improve their credit so that they can get the things they want to in life. Using a credit repair service is actually a good idea, because it is not an easy task to fix your credit on your own, and it can take a lot more time doing it yourself than working with a credit repair agency.

Companies that offer to fix your bad credit are not miracle workers. They don't have some magic formula to make your credit score improve drastically overnight. It takes time and effort, both on your part and theirs.

These credit repair services are completely legal. They do not do anything that is shady or underhanded. They are credit experts that are well versed in your credit rights and responsibilities. They know a lot more about credit than the average person, and they put that knowledge to work for you. They simply use your rights under the Fair Credit Reporting Act to improve your credit record. They work with the credit bureaus to remove inaccuracies, update your records, and clean up any misleading information. They work with your creditors to provide accurate information to the three major credit bureaus, and then work with the credit bureaus to make sure that your credit report is accurately updated in a timely manner. The results are that your credit score gradually improves and you are able to get the credit you want at better rates.

Of course, it is always smart to shop around for the best credit repair service. Many of them are available online and you can begin working with them quickly once you find the credit repair service that best suits your needs. Make sure you check out their prices, if they have any kind of guarantee or warranty, how long they have been in business, and what kind of reputation they have. Most of them have some type of guarantee, and you can expect to see some differences in your credit report within about 45 days after you being working with a credit repair company. A person can expect to see major differences in their credit score in about six months. Which is not bad, considering it usually takes longer than that to destroy a credit report. Their fees are affordable, and usually consist of a payment to being working with them and then a monthly charge each month until your credit report is improved to your satisfaction.

Just because you use a credit repair agency to fix your credit, it doesn't mean that you can't pay your bills or that you can buy anything you want without planning how you are going to be able to pay for it. Many of these credit repair companies also offer advice on learning how to live within your budget and using credit wisely.

Bob Hett offers great tips and advice regarding all aspects concerning Credit Repair.
Get the information you are seeking now by visiting http://www.creditrepairoutline.info

You Can Fix Your Bad Or Poor Credit

2005-10-13T20:53:00.000-05:00

Tips on how to get started now.

You will not be able to build good credit overnight. It will
take discipline and persistence on your part to change your
credit for the better. After you have fixed and improved your
credit rating in the eyes of lenders, you will notice more
opportunities offered to you to borrow money at more desireable
terms than when your credit was bad. Just because you have bad
credit does not mean that you can not borrow money or get a
loan, it just means that less opportunities will be available.
The funds you can get will come at a greater cost in terms of
higher interest rates and more stringent repayment terms.

Many banks and lending companies are less likely to make loans
to people with bad credit. Therefore, it only makes sense that
you strive to improve your creditworthiness in order to
convince potential lenders that you are a good credit risk.
Once you have improved your credit history and track record you
will be have better opportunities to buy a car, finance a
personal loan, or buy a house. If you have already been trying
to financed for any large purchases, then you may have noticed
the hurdles you've been put through trying to get approved.

Fixing your credit rating may be as easy as getting any
inaccurate statements off of your credit report. Therefore it
is important to frequently check yours to see if everything on
it is correct. If you do find inaccuracies immediately contact
the credit bureau and work with them to get them corrected and
off of your credit report.

For others, fixing or repairing their credit rating may be a
lot more involved and complicated. Start by getting your
personal budget balanced. You should not be spending more each
month than what you bring in each month. If you are, then get
that straightened out immediately. Cut out all unnecessary
spending and charging. It is critical that you get your budget
and debt repayment plan balanced, while making all debt
payments on time. Not making on time payments each month
increases the late payment fees you will have to pay, bring
about increased interest rates and continue to negatively your
credit rating. Once you start making and continue to make your
monthly debt payments on time, you should see your credit score
start to rise.

If you find that you can not do this on your own, there are
many companies that can provide debt consolidation services.

So in essence to improve your credit:

. Create and live by a personal budget that balances your
monthly income with your monthly expenses.

. Create a plan to save money and pay off your credit cards and
debt.

. Use credit wisely.

. Pay your bills on time every month.

Once you have put all of these tips into action and your credit
score begins to improve, you should see your borrowing
opportunities improve as well. But remember, good credit habits
must be worked at every day, so do not give up and make it a
lifetime habit.

About The Author: James Smith publishes
http://www.all-credit-types.com/. Visit the personal finance
web site for more credit information and resources. This
article may be freely reprinted as long as the author's
resource box and url links remain intact.

What Is Foreclosure And How To Avoid It?

2005-10-12T04:40:00.000-05:00

Credit Card Features

2005-10-11T21:26:00.000-05:00

Do you know anyone who doesn't have a mailbox overflowing with
credit card offers? Open any of them up and you'll find in
large print just what makes this card perfect for you. At first
glance, this all looks good on paper, but it's the small print
that you don't pay attention to that will come back and bite
you in the end. All credit cards offer a variety of features.
Knowing and understanding these features will help you to
decide which card is right for you.

Fees

Most credit cards charge fees for various things, and it is
important to know what these fees are and how to avoid them.

The annual fee

Some credit card companies charge you an annual fee just for
using their card. Because of stiff competition, you can often
negotiate this fee away if you call and speak to a customer
service representative.

Cash Advance Fee

Most credit card companies will charge you a fee for cash
advances. These fees can vary but are usually somewhat hefty.
Not only will they charge you a one-time fee, but the interest
rate for this money will be at a considerably higher rate.
Plus, unlike a regular purchase, where interest begins accruing
after some grace period passes, cash advances accrue interest
charges from day one.

Many card companies are competing for your business and are now
offering an introductory cash advance and balance transfer rates
for a specific amount of time. This lower rate can be applied to
any balances you may wish to transfer from another card.
Although it sounds good, some companies will charge you a fee
for the transfer. Know what the fee is before you transfer any
balances.

Miscellaneous Fees

Things like late-payment fees, over-the-credit-limit fees,
set-up fees, and return-item fees are all quite common these
days and can represent a serious amount of money out of your
pocket if you get whacked for any of these fees.

Incentives

Since there are so many credit card companies, competition is
stiff. Adding incentives to their offers is one of the more
popular ways to tip the scales in their favor. Incentives like
rebates on purchases, frequent flyer miles on certain airlines,
and extended warranties on purchases are just a few of the
bonuses that card companies will now offer.

For those of you who collect and use your frequent flyer miles,
they also have added incentives like travel insurance and car
rental insurance for your convenience. Of course, they are
hoping that with all this traveling, you are using their card
to foot at least some of the bill.

Rewards

Many card companies are looking to keep your business and are
therefore making it worth your while to use their card. Just
simply by using their card you can accumulate points that will
in turn earn you rewards. What kind of reward depends solely on
the amount of points you accumulate. Since you can't accumulate
these points without charging things on your card, this is a
classic case of 'you have to spend money to save money'.

Bottom line is this: Know what you need and what you don't. No
sense in paying for any features that you won't use.

About The Author: Keith Baxter made it his mission after
college to educate as many people as possible to the advantages
and disadvantages of credit through a widespread re-education
initiative. You can find out more about Keith and what he's up
to at http://www.bankcreditcardlist.com

Credit Card Debt Problems

2005-10-09T13:40:00.000-05:00

What to Do If You Hit the Debt Mire

When debt goes bad, it becomes more than just a financial
problem. It can take over your life. If you have a debt problem
the earlier it is handled and dealt with, the less likely it'll
turn into a crisis, and the more money you'll save in the
fullness of time.

The very nature of borrowing means that interest increases over
time and if it isn't dealt with promptly, it can spiral out of
control and land you into trouble. Particularly with credit
cards, when interest payments are large, and a minimum payment
offers a seemingly manageable solution; what is actually
happening is this: the balance is being eroded like the sea
bites away at the shore. It'll disappear into the ocean
eventually, but might take many years to do so. What you need
is a more radical approach, where chunks of debt are eaten away
each month.

Being in debt can be a stressful time. Many people are scared
to tell husbands, wives, friends - anyone. There's a kind of
stigma attached to the problem, but there is always a way out.

Traditional debt advice proscribes borrowing your way out of a
problem. Yet this ignores the reality of most debts. A more
advisable and realistic approach would be to never borrow more
to get out of debt trouble. If it is possible to borrow more
cheaply elsewhere to replace existing borrowing and consolidate
your debt, then this is an eminently sensible approach.

The first step should always be to work out your monthly
outgoings and try and trim down your spending on luxuries and
things you can do without. This doesn't mean you have to live
the life of a monk and forgo all worldly pleasures! But by
adopting sensible spending patterns you can redirect some of
your monthly income into paying off your outstanding balances.
Always keep at the front of your mind the fact that the longer
the debt smolders away, the more you spend in interest
payments.

Those with big debts may save thousands a year in interest by
reconsidering their borrowing commitments. Do this in three
ways:

i) Lower the interest if possible by moving your debts to
reduce the interest cost.

ii) Pay the worst first: prioritize paying off the highest
interest rate debts first

iii) Utilize any free debt advice there is. A non-commercial
agency will give you good advice, focus you on your priorities,
and place any problems in context. Things may not be as bad as
they first seem.

Of course, there's other basic, practicable things you can do
on your own. It's incredibly important to get on top of credit
card debts as soon as possible. Don't default or miss payments.
Let the credit card company know if you are going to be unable
to pay - it's always better to talk to them than putting your
head in the sand.

If things aren't that bad, there's a variety of easy strategies
you can implement that will help ease things for you. Consider a
credit card balance transfer to a lender offering a lower rate
of APR. This will mean you spend less on interest payments each
month and start to attack the overall balance with real venom.

You could take out an unsecured loan as a way of consolidating
your debt. Personal loans can give you a consistent cheap debt,
and as you must make the repayments each month, it helps provide
structure to your repayments. Those with poorer credit scores
might not always get decent rates, but it's still often a
cheaper option than paying back credit card debt each month,
and overall a faster method of repayment.

If you have them, use savings: The interest paid on savings is
usually far less than interest charged on borrowing, so paying
off debts with savings makes eminent sense. Even if you think
of your savings as an 'emergency cash fund' or money for the
future, better to fall back on it in the short term and pay it
back later, than paying interest to a credit card company so
that money for some far flung eventuality is at your disposal.

It's worth mentioning that for many people, credit cards
provide sensible short term, flexible lending, that's both
cheap and convenient. You should always try and proceed
cautiously, but credit card debt woes are not an inevitable
consequence of taking them out. Tens of millions of Americans
use credit cards cheaply and conveniently every year.

For those who feel they are in trouble, don't feel stigmatized
by your debt woes and don't pretend they're not there. Help is
at hand should you seek it, and a solution is never far away.

About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Home Loans
or any other type of credit issue please visit us at
http://www.creditcardunlimited.com

==================================================
Credit Card Debt Elimination

3 Simple Ways to Use Online Credit Reports to Improve Your Personal Credit

2005-10-08T19:33:00.000-05:00

Like most Americans you may be skeptical of why an unseen online agency would want to "help" you by checking your credit score for free. I mean, aren't they just out there to get your money? The truth is, these credit checks can really help you, especially if you are trying to improve your credit.

First, by checking your credit online, you avoid "dings," which lower your score. Many consumers are afraid to investigate their credit because they think their score might drop, putting them in even worse shape. This isn't true with online credit reports. Thus, without dinging your credit, online sources allow you to check out your score, for better or worse.

Alternately, if you have been denied credit within the last 30 days, you can ask the credit bureau for a free report that won't ding your credit. You do have to use a local reporting agency, which can take more time than using an online source. Most people go in person to the agency to request the report and then pick it up. Both of these steps seem quite tedious when compared to online credit checks.

Another benefit of online credit reports is the ability to see both good and bad credit you have on your report from the privacy of your own personal computer. No nosy bankers trying to get your a credit card or auto loan. Without sales pressure, you are less likely to get into more debt and lower your credit score.

Lastly, you can verify the accuracy of your credit. The online report will be taken from each of the three national credit bureaus. Occasionally you will see accounts that you dispute, which gives you the opportunity to contact the bureau. To do this, you must write a letter explaining exactly what is incorrect or disputed. The agency must investigate. When they contact the creditor, he has 14 days to respond or the item is deleted off your credit. A little known secret is that if the item is less than $500 or older than one year, most creditors won't bother responding, whether your dispute is accurate or not. Disputing bad credit is the most direct way you can improve your credit. When your bad credit is reversed your credit score will increase. Most importantly, after your score goes up you have the right to demand that your updated credit report be sent to all those who have denied you credit in the last six months. Good news!

So, if you wonder how good, or bad, your credit score is, don't be afraid to check it out online. The report is excellent information that arms you with power to change and improve your credit. Most people with bad credit don't know much about how it gets that way or how to fix it. Your knowing both is a good start to improving your credit.

Best Credit Report Info.com offers valuable information on credit reports and what to do if you've had credit difficulties. For more information, see the website at http://www.bestcreditreportinfo.com

Know Your Debt Consolidation Options

2005-10-06T15:47:00.000-05:00

Nobody likes being in debt or the additional stress it adds to their life. Additionally, most individuals have some form of debt that is weighing heavily on them and they simply want to get rid of it. If you are in this situation then you might consider debt consolidation. When it comes to debt consolidation there are basically two options you have. You can either borrow money and pay off all your bills and then just pay the one loan payment each month or else you may choose to use a debt consolidation or credit counseling services. The option that is best for you is most likely the option you qualify for. The following pros and cons of each debt consolidation option will help you see which option is best for you as well as inform you regarding each option.

Borrowing to Pay off Bills

The first option you have to pay off all of your debts is to apply for a debt consolidation loan or a home mortgage loan. However, this particular option requires you have good credit and equity in your home if you are applying for a mortgage loan. As a result, many people do not qualify for this particular option. Although, there are pros and cons for this option for those individuals who do qualify.

The pros of borrowing to pay off your bills include paying off all of your bills at once and dramatically decreasing your monthly payments. You will have to make a monthly payment on the debt consolidation loan you received, but this will be significantly lower than the total of all the other monthly payments you were paying. As a result, a debt consolidation loan will grant you some serious relief in your monthly expenditures. Another benefit of paying off all your debts at once is that if you were at risk for collection of your debt you will not need to worry any longer. Once your debt is paid off any debt collection activities will be stopped in their tracks and this will grant a significant amount of relief as well. Another major benefit that is important to everyone is that when you borrow to pay off your loans your credit will not have any negative marks and you will likely experience an increase in your credit rating simply because you decreased your debt ratio.

These benefits may have you excited; however borrowing to pay off your debts also has its drawbacks. For instance, if you receive a home mortgage loan to pay off your debts and you cannot make the monthly loan payment then you risk losing your home. This is a significant drawback and if you do not believe you will be able to make the monthly payment on the mortgage loan you should avoid this option. Another negative is that you are not eliminating your debt; you are simply changing the way you pay for it. As a result, the stress of the overall amount you owe still exists and you can easily overextend yourself again because you have a false sense of security that you have your debts under control.

If you qualify for a home mortgage or debt consolidation loan then you should work with a loan counselor to help you meet your monthly obligation and avoid any other negative impacts of your debt. However, if you do not qualify for a loan you may very well qualify for help from a debt consolidation service or credit counseling service.

Debt Consolidation and Credit Counseling Services

This option helps you in a variety of ways, yet is significantly different than receiving a debt consolidation loan. Many individuals have found success by using these services while others do not recommend them at all. You must review the following benefits and drawbacks and compare them to your personal financial and debt situation before you can make the right choice for you.

The benefits of the debt consolidation and credit counseling services include an immediate decrease in your monthly payments. This provides significant relief immediately for individuals suffering from too much debt. Also, any debt collection actions in progress will likely be reduced because the debt consolidation agency informs your debtors that you are actively trying to pay your bills. Frequently, these services can also help eliminate late payment fees as well as decrease interest rates. A required element in using these services is learning money management skills that will help you avoid getting in debt and over your head. With your money management skills you will understand how much money you have and not try and live beyond your means. However, there are cons that exist with this option of debt consolidation as well.

When you use these debt consolidation services you will not be allowed to use any credit you have, so basically your credit is on hold. Also, there are debt minimums you must meet before you qualify for these types of services. If you have a very low amount of debt then you will likely not qualify. Additionally, debt consolidation services only provide services for an individual's unsecured debt and not all individual's unsecured debt will qualify. And finally, when you use these services it might negatively impact your credit score. However, it will not impact your credit any worse than not using the services and continuing to make late payments and getting behind.

As you can see there are two viable options for debt consolidation and both are widely different with their own sets of pros and cons. Once you have evaluated the options for consolidating your debt you need to compare them to your personal financial situation in order to make the best decision for paying off and managing your debt. If you are over your head in debt then one of these options will certainly help you, it is just up to you to figure out which one provides you the most benefits and the least drawbacks.

People have many options when selecting a debt consolidation service. I wrote this article to help people understand these options. www.freedebtconsolidationquote.net

Debt Consolidation Loan, To Consolidate Or Not To Consolidate

2005-10-04T22:06:00.000-05:00

Are you in debt? Do you think that making good your obligations
seems too impossible? Are you starting to contemplate on filing
for bankruptcy? You may change your mind if some one or
somebody will tell you that there is another effective way to
escape the quagmire of debt. Debt consolidation may be what is
best for you.

You can take back your life and your credit standing by debt
consolidation loan. This is because debt consolidation loan can
help avoid filing for bankruptcy. It may also help eliminate
unavoidable harassment from creditors. There are also debt
consolidation loans that may help lower debt payments or even
just eliminate interest, which may be a good help. Debt
consolidation loan with a reputable and respectable lending
institution may provide one easy to pay monthly payment. You
will get these benefits from debt consolidation loans. However,
as mentioned, only a reputable and respectable lending
institution may be able to help you. Other lending institutions
are unethical and may not be good for you. These unethical
lending institutions may offer to consolidate your debt that
will apply unrealistically high interest rates that will give
you more trouble. You will fall deeper in the debt quagmire
than to be able to get out of it.

It may help in deciding whether to get a debt consolidation
loan or not, if you can initially assess your condition. After
assessing your current situation, then you may decide for
yourself if a debt consolidation loan is what you need. This
basic information may help you in considering whether to
consolidate your debts or not. If your monthly debt obligation
is already difficult to manage, almost to the point that you
say it is impossible to settle all of them. Then, you start to
think filing for bankruptcy is the only neat way out. Debt
consolidation loan may be what you need when you feel that
after paying your credit cards, store cards and other debts,
your balances do not even give you any little relief. Debt
consolidation loan may also help to give you some sleep by
fixing one easy monthly payment. Is it not good to feel that
you are only indebted to one and not to so many who may
possibly file a lawsuit against you if you fail on your
obligations? I think it is. When you finally decide that debt
consolidation loan is what you need, then you have to find the
reputable and respectable lending institution that will help
you better your credit standing. Avoid the loan sharks that
will eat you up.

Only a debt consolidation loan from a reputable lending
institution can lower your monthly payments. Aside from this, a
reputable lending institution may help reduce if not eliminate
the interest rates and late payment charges slapped on you
loans. Debt consolidation loan from these helpful non-profit
lending institutions may stop other charges loaded on your
loan. When you finally find the lending institution that will
be able to help you, you may regain your reputation and
re-establish your credit worthiness.

Finally, lending institution design debt consolidation loans to
help you get back you good credit standing, thus I recommend
that when you get an approval of your debt consolidation loan,
ensure re-payment and change your lifestyle to fit a more
reputable credit standing.

About The Author: Diego HR. is the owner of My Debt
Consolidation Advisor http://www.mydebt-consolidation.biz/ and
invites you to take a download free helpful information,
articles, and more.
================== ARTICLE END ==================

For more free-reprint articles by Diego Hernando please visit:
http://www.isnare.com/?s=author&a=Diego+Hernando

Bad Credit Mortgage Loans Online - How Your Fico Credit Score Can Affect Your Loan Approval

2005-10-02T21:05:00.000-05:00

When applying for a mortgage loan when you have a bad credit
history. There are a few things you should know about your FICO
score that will help you know what to expect from mortgage
lenders.

With a credit score below 585, you will need to put at least
10-20% as a down payment on the property. You will not likely
be approved for 100% financing at this point.

If you have a credit score of between 585-599, you will
probably need around a 5% down payment in order to get an
approval for a home mortgage loan. You will still need to get
your approval from a subprime mortgage lender. You will need to
use a lender who specializes in loans for people with "less than
perfect credit" or situations that make it difficult for a
person to get financing for their home.

If you have a credit score of 600 - 620, you will probably be
able to get an approval for 100% financing. You will also, in
this situation, still need to use a subprime lender.

With a credit score of 620 or higher, you may be able to not
only qualify for 100% financing, but be able to get a lower
rate of only 1 - 2 percentage points above the prime rate.

If you have a recent bankruptcy or foreclosure, these estimates
should still be accurate within 2 years after bankruptcy,
repossession or foreclosure. After 2 years, it becomes easier
to get approved for a mortgage loan, because more lenders will
look at financing you after 2 years, whereas many lenders will
not even consider your application until 2 years from the time
of bankruptcy discharge or a foreclosure. After a 3 year mark
from the time of bankruptcy or foreclosure, it becomes even
easier to get an approval, in that many more lenders will
consider your application after 3 years.

For more free-reprint articles by Carrie Reeder please visit:
http://www.isnare.com/?s=author&a=Carrie+Reeder

Steps For Finding A Thin Or No Credit Motorcycle Loan

2005-09-30T19:03:00.000-05:00

It is no secret that thin or no credit can hurt just like bad
credit when shopping for motorcycle loans. The main reason for
this is that lenders all have a variety of strategies on how to
approach motorcycle loans in their loan portfolios. Some lenders
see motorcycles loans as a risky but feasible business
investment, while other lenders label motorcycles loans as a
high risk money losing investment. Overall, the general
perception of most lenders is that a motorcycle is a "toy" and
therefore motorcycle loans are much more risky than other types
of loans. This "toy" labeled perception from lenders is a
critical component which makes shopping for a motorcycle loan
much more difficult for motorcycle buyers with thin or no
credit.

The first step to get approved for limited or no credit
motorcycle loans, is to look online. The reason for this is
that many online lenders are very competitive with offering
motorcycle loans and some of them specialize in limited or no
credit motorcycle loans.

If you have searched online and are still having trouble
getting approved due to limited or no credit, it is critical
that you begin to understand the impact of your FICO credit
score. Essentially, a FICO credit score is the number one
variable most lenders use in approving you for a motorcycle
loan. The FICO credit score is a computer generated score which
is comprised of your credit payment history, amount owed, length
of credit, amount of new credit and types of credit.

Since many people with limited or no credit do not even have a
FICO credit score associated with their credit file their
motorcycle loan applications are sometimes automatically
declined by lenders. Therefore, the first step to getting
approved for a limited or no credit motorcycle loan is to start
building credit history. In order to get a computer generated
FICO credit score with your credit file you must have at least
one credit account that has been open for at least 6 months and
has been updated at least once in the previous 6 months.

This requirement can make it tough for young motorcycle buyers
or immigrants who wish to establish a credit score since some
lenders will not extend credit to people with a thin file.
However in today's age, there are credit card companies willing
to give newcomers a credit card with a small $500 limit to get
started.

As a result, if all else has failed and you have limited or no
credit a great way for you to begin building your FICO credit
score is to get a low credit limit credit card and begin using
it regularly for small everyday purchases. The key to this
strategy is keeping your purchases small and frequent and
paying off the balance every month on time. Always try to avoid
maxing out the credit cards or even using more than 30% of the
available credit limit. To make this easy some small purchases
can even become automatic by putting things like monthly cable
or telephone bills on automatic credit card payment.

The bottom-line is that finding a limited or no credit
motorcycle loan can be challenging, but working smarter by
shopping for a motorcycle loan online and also beginning to
build a credit history can take a lot of pain out of the
process.

About The Author: Jay Fran is a successful author and publisher
at Motorcycle-Financing-Guide.com, a national guide to compare
motorcycle lenders. Copyright (c) 2005, by Jay Fran. This
article may be republished as long as the author's information,
copyright information and the following active live link is
published with the article.
http://www.motorcycle-financing-guide.com/no-credit-motorcycle-loans.html

Discovering A Better Motorcycle Loan With A Better Credit Score

2005-09-27T15:20:00.000-05:00

It is common knowledge that motorcycle financing companies'
base high importance on your FICO credit scores when approving
motorcycle loans. However, what many people overlook is that
their FICO credit score can dramatically impact the term on
their motorcycle loan along with the interest rate that is
assigned to the motorcycle loan.

In order to gain better motorcycle loan rates, it is highly
important that you think of your FICO credit score as a picture
of how risky you are to the lender. Your FICO credit score is
essentially a benchmark which motorcycle financing companies
use to grade you and assign a risk to you when applying for a
motorcycle loan. Since factors about your credit change on a
daily basis so can your FICO credit score.

The below 5 tips are designed to help ensure you improve your
creditworthiness as your credit score changes. Ultimately these
tips should help you obtain better motorcycle loan rates and
loan terms in the future.

Watch Your Debt- Keep your account balances below 25%-30% of
your available credit limit. This is especially true with your
revolving credit card because many motorcycle financing
companies see credit card debt as more risky. If you have a
credit card with a $500 limit, you should try to keep the
balance owed below $150 when you apply for a motorcycle loan.

Check Your Credit Regularly - In today's age it is easy to get
online to check your credit report. Checking your free credit
report regularly is very important because it can help you
uncover inaccuracies that are affecting your FICO credit score.
Don't let your credit health suffer due to inaccurate
information or errors on your credit report. If you find an
inaccuracy on your credit report contact the creditor
associated with the account or the credit reporting agencies to
correct it immediately.

Avoid Excessive Credit Inquiries - A credit inquiry normally
happens when you apply for credit. If you have a large number
of credit inquiries in a short time period many motorcycle
finance companies see this as a negative since it affects your
FICO credit score. Therefore, when you are applying for credit
or shopping for motorcycle loans it is very important you
consider how many times your credit is accessed. Be advised
that sometimes motorcycle dealerships will pre-screen you for a
loan by asking you for your driver licenses and social security
number. Normally this results in a credit inquiry on your
credit report. Be prudent in shopping for credit and motorcycle
financing.

Establish Credit Early - Time is very important part of
improving your FICO credit score. Therefore, it is recommended
that you start building credit early in life. Getting one or
two credit cards can significantly help build your credit.
However, the key to this strategy is keeping your purchases
small and frequent and paying off the balance every month on
time. When establishing credit you should also keep the oldest
account on your credit report open in order to lengthen your
period of active credit use. The length of your credit history
can make a big difference in getting approved for a motorcycle
loan.

Make Your Payment On-time - Paying your current credit bills
on-time is one of the biggest factors that contributes to a
higher FICO score. Typically when motorcycle finance companies
see potential customers that do not pay their bills on-time
then they either decline them or issue a motorcycle loan at a
much higher interest rate. Late payments, collections and
bankruptcies have the greatest negative effect on your credit
score and how lenders rate you when getting a motorcycle loan.

Copyright (c) 2005, by Jay Fran.

About The Author: Jay Fran is a successful author at
http://www.motorcycle-financing-guide.com - A comprehensive
resource to compare online motorcycle financing, motorcycle
loans and online motorcycle buying tips for Polaris, Honda,
Suzuki, Harley-Davidson, Yamaha and more.

Home Equity Credit Lines Provide Quick Access To Cash In Times Of Need

2005-09-26T19:45:00.000-05:00

If you need to borrow money, Home Equity Credit Lines can be
one of the options available to you. This Line of Credit Home
Equity is a loan granted to the borrower with his home as
collateral. Home Equity per say is the difference between the
worth of your property and the amount you owe on your mortgage.

Of late many people are opting for Home Equity Lines of Credit
because of its ease of acquisition and flexibility. If you use
the equity of your home as collateral in a loan, you have
access to a large pool of funds which you can use to expand
existing business or undertake a new one whilst still owing
your home. If you negotiate well, you can obtain Line of Credit
Home Equity far exceeding the current price of your home. Again,
you have the advantage over other kinds of borrowed funds
because you enjoy low interest here. The biggest advantage for
Home Equity for small businesses owners especially is that the
interest on Home Equity Credit Lines is treated as tax
deductible. This simply means you can take out the interest
payments as an expense before you declare profits, thus leaving
you with more money as net income.

Line of Credit Home Equity is the best option for a business
with homes which needs long term capital. As the homes increase
in value, the loan interest decreases in value with the effect
that businesses gain over the long term.

Home Equity loans need to be contracted with great care. Look
around for the best plan or terms so you don't risk defaulting
on the loan. If you default on the loan, your home may be
foreclosed. Foreclosure is the process of offsetting a debt
with the sale of a borrower's home. The forced sale comes about
because you have irreversibly used the home as collateral in the
agreement and have authorized the lender to take over the house
in the event you are unable to pay up on the interests.

When it comes to using your home as collateral for a loan,
there are two major options: Home Equity Line of Credit and a
Home Equity loan.

Home Equity Lines of Credit are used for any kind of expense at
all such as home improvements, educational and medical expenses
and small business expenses. You make monthly payments at
varied interest rates. If you are not the type that worries
about changing payments and interest rates, then you may go for
this option.

On the contrary, Home Equity loans gives you access to funds
which need to be expended in a lump sum such as the expenses in
connection with buying a new car or starting a new business. In
this type of loan, interest payments are fixed. If you want a
predictable payment, then this is the option for you.

In Summary...

Home Equity Credit Lines have helped many businesses and
individuals get access to large pools of funds for business
expansion or acquisition of another home. This ease of access
must be balanced with the fact that persistent default in
payments can result in the loss of your home.

For more free-reprint articles by Colin P please visit:
http://www.isnare.com/?s=author&a=Colin+P

Mortgage Research Good News For House Buyers

2005-09-25T14:40:00.000-05:00

Figures from the Council of Mortgage Lenders show that in July
gross lending in totalled £25.2 billion, with fixed rate deal
mortgages are at their most popular for nearly six years.

Nonetheless, "July's growth in lending to individuals slowed
from the recent trend," said British Bankers Association (BBA)
spokesman David Dooks, "this could have reflected consumers
waiting for the widely anticipated cut in interest rates."

Miles Shipside, Commercial Director of Rightmove (
http://www.rightmove.co.uk/ ), comments, "The belated but
welcome drop in interest rates will be a real boost for
sentiment in the market and a springboard for a better 2006."

However, more than half of all mortgage lenders have failed to
pass on the full Bank of England interest rate cut to
borrowers, and those that haven't done so already look unlikely
to do so in the future.

"How these things usually work is that if the lender is going
to pass on the full cut they announce so fairly quickly", Ray
Boulger of John Charcol mortgage advisers.

Several lenders stated the rates on fixed mortgage deals from
some providers had already started to drop in anticipation of
the cut in interest rates earlier this month, while others
argued that replicating the rate cut is not necessary because
they did not pass on past increases.

A few lenders, including the Halifax, the UK's largest mortgage
lender, immediately reduced its rates, but others have held off
cutting borrowing costs or have trimmed them by less than the
bank's quarter of a percent.

Despite the rate cut anticipation and the increases in the
take-up of fixed rate deals, the British Bankers Association
(BBA) said that net mortgage lending by its own members slowed
down last month.

Rightmove in its latest house price index has indicated that
house sales have slowed down. The numbers of completed sales
for the three months from April to June are the lowest since
1998. To improve the chances of achieving sales, many new
sellers are adjusting their prices in an attempt to undercut
the competition. Asking prices have now dropped by an average
of 1.2% over the past two consecutive months.

Rightmove believe that the housing market is gradually
recovering, but "there is currently too much unsold property
still available to expect anything other than a continuation of
static asking prices this year".

Miles Shipside adds, "Sellers are finally becoming more
realistic on their asking prices, which when combined with
cheaper mortgages and rising wages, means that more buyers can
now afford to enter the market." He went on to point out that,
"We still need more first time buyers for the long term health
of the property market."

Financial comparison site, Moneynet (
http://www.moneynet.co.uk/ ), puts the current first time
buyers' average joint salary at £39,382, with an average
mortgage amount required of £135,239 constituting a 66%
borrowing on the cost of a property. This means that with
sellers asking prices remaining static, or even falling, and
wages gradually rising, for many potential first time buyers,
there is an increase in the realistic prospect of getting onto
the property ladder.

Halifax hoped that the interest rate reduction by the Bank of
England would, "reduce mortgage payments as a proportion of
gross income for the average new borrower from 20% to 19%, the
average for the past 20 years and well below the 34% peak in
1990".

With the mortgage market especially competitive at present and
rate comparison sources easily accessible, lenders who do not
offer reasonable rates are liable to lose out. All this appears
to be good news for buyers as Rightmove states, "there are now
clear signs that the market is making sensible adjustments in
prices to improve buyers' affordability."

About The Author: Richard lives in Edinburgh, occasionally
writing for the personal finance blog Cashzilla (
http://cashzilla.blogspot.com/ ), and thinks "Half Man Half
Biscuit" were a good band.

Bad Credit Loans: Be Careful!

2005-09-24T21:51:00.000-05:00

If you've gotten yourself over your head in debt, and suddenly have a need for cash right away, it is possible to get a loan for bad credit. Loans for bad credit will not give you a worse rating if you require a non-bad credit loan later down the road, and they will get you some money very quickly - perhaps too quickly.

But how could a loan for bad credit be too quick? Well, if you decide to get a bad credit loan, apply, and then suddenly - WOW - you have the money the next day, have you really thought out this bad credit loan adequately? Have you researched all of the other bad credit loan options, or did you just pick the first one that struck your fancy? Did you ask around, surf the Internet, and talk to your banking institution before applying for that bad credit loan? Did you do some reading at the library, crunch some numbers, and talk to your family about this bad credit loan, first?

If you think about it for a bit, there will be an interest rate with your bad credit loan - probably more than with any other loan you carry. It's a risk for a lender to extend credit to someone with bad financial history, so they overcompensate with higher interest rates. Rates as high as 15 point over prime, at times. Do you really need to go into more debt asking for a bad credit loan, just to pay off another bill? Isn't there another way?

This can all become a huge problem if you eventually need more money because of your bad credit - which means another loan. And then another, and another. you get the drift. Your interest on a $3000 loan could be as high as $500, not including the actual bad credit loan repayment itself. Can you afford this? All for a bad credit loan debt.

This cycle may only become a problem if you manage your bad credit loans poorly, or borrow more money than you can afford to pay off. To avoid these types of bad credit loan issues, ONLY borrow what you can afford - just because the process is super quick, doesn't mean you need to come to a decision just as quickly. Take your time. Research everything well. Talk it over with friends and family. Make sure your payments won't be over your head, especially with all of your other debts. A bad credit loan is a serious thing - don't enter into it lightly.

Perhaps talk to some friends or family first, instead of adding to your debt and asking for a bad credit loan. Maybe if you take this choice, or perhaps try and find extra income instead, you can avoid the whole bad credit loan trap, forever. And with less bad credit comes a lesser need for a loan - and the cycle stops.

For more more information about bad credit loans offers please visit http://www.moneytipsdaily.com/Money-Tips/Credit-and-Loans-have-Become-a-Buyers-Market--Are-You-getting-the-Best-Deals-for-Yourself.html

Payday Loan Terminology

2005-09-23T15:25:00.000-05:00

Sometimes, the terms associated with payday loans, or any other
loans for that matter, can be confusing and difficult to
interpret. The purpose of this directory is to help assure that
anyone who is shopping for a payday loan has the right tools to
cut through the rhetoric and come away with a clear
understanding of what each associated term means.

Annual Percentage Rate (APR) - The annual percentage rate is
defined as the cost of credit to the borrower in relation to
the amount borrowed, expressed as a yearly rate. On mortgage
loans, for example, lenders are required to disclose the APR,
which also includes other loan costs such as points and loan
fees that would be paid by the borrower.

Payday loans - A payday loan is a short-term loan, advanced for
two weeks or a month, until an individual's next payday. It is
also called a cash advance, a check advance, a payday advance,
a cash loan, etc.

Payday loans online - Payday loans online are those which are
transacted completedly through electronic means. In other
words, the applicant doesn't have to go in to the office or the
bank to apply for the loan, but can do so from his or her own
computer. Online loans are also referred to as online payday
services.

Loan fees - The amount the lender is allowed to charge for the
borrower's privilege of receiving the loan. Loan fees can be
flat fees (i.e., $15 per $100 borrowed) or a percentage rate
(such as 6.5% of the total borrowed). In any case, the loan
fees are tacked on to the amount borrowed, so that if a person
borrows $100 at a flat rate of $15 per $100 borrowed, the total
amount due to the lender on the due date would be $115.

No faxing - When payday loan offers first began to appear on
the Internet, part of the application process was faxing
documents like paystubs, checking account statements, etc. to
the lender. In some cases, when the loan was approved, the
borrower received a check by fax, as well. Today the loan
companies are advertising 'no faxing' as an additional
incentive to borrow from their company, since everything is
done through a quick Internet application and no documents have
to be faxed, making the turnaround time much less.

Amount financed - The amount financed is not just the amount
borrowed. A borrower may, for example, request and receive $100
from the lender. However, the amount financed includes both the
amount borrowed and the costs charged by the lender for the
loan. If, for example, the lender charged 10% for a 14-day $100
loan, the total amount due back to the lender in two weeks would
be $110 - or the amount financed.

Finance charges - Finance charges are similar to loan fees -
the amount of money that is charged to the buyer for use of the
lender's money for a specified period of time. The finance
charges may be expressed as a flat rate (i.e. $15 per $100
borrowed), or as a percentage rate (i.e. 10% of the total
amount received by the borrower).

Total payment due lender - Total payment due lender is another
term for the amount financed. It includes both the amount
borrowed plus any finance charges or loan fees.

Secured loan - A secured loan is one for which the borrower
signs over title to some sort of collaterol that the lender can
collect and use as repayment if the borrower fails to pay off
the loan in the specified time frame. Title loans are secured
loans. The borrower turns over his or her car title in exchange
for receiving the loan. If he or she is unable to pay back the
loan, plus loan fees, within the designated period of time, the
lending company can seize the borrower's car and sell it to pay
off the loan.

Unsecured loan - An unsecured loan is one for which no
collaterol (property of one kind or another) is required. A
payday loan is an unsecured loan that is guaranteed only by
either a post-dated check issued on the borrower's bank account
and dated for his or her next payday, or by an authorization to
withdraw the amount financed from the borrower's checking or
savings account on a specific day.

Bad credit loan/bad credit cash loan - A bad credit loan is
just another name for a payday loan or cash advance. Generally,
these types of loans are available without a credit check, so
that even individuals with bad credit, or no credit, can
qualify.

Roll over - When a loan is 'rolled over' that means it is
refinanced for another period time such as another two weeks or
an additional month. The lender usually charges the same fee to
roll the loan over as is charged to obtain it in the first
place. For example, if the borrower agreed to pay $15 in loan
fees for a $100 loan for two weeks and needs to have an
additional two weeks to make a full repayment, the lender would
charge an additional $15 to carry the loan for the additional
period of time.

Licensed lenders - Some payday lenders are licensed to operate
in the state where they are doing business and some are not. As
a precautionary measure, the borrower should make sure the
lender is licensed.

About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Payday loan
or any type of faxless loans please visit us at
http://www.PaydayLoanChoice.com

Debt Help: Learn The 3 Key Debt Reduction Steps You Must Take Immediately!

2005-09-22T12:33:00.000-05:00

Step 1. The purpose of this first step is to bring you back to reality. You must know exactly how much money you owe and to whom you owe it.

* Collect all of you unpaid bills and any other evidence of your outstanding debts.

* List each outstanding bill on the same sheet of paper. In separate columns, include the invoice or account number, amount due, name of the creditor, and the date the bill can be paid in full without incurring additional finance charges.

* Total the amount due column.

* Total the number of creditors.

* Total the number of bills.

Are you surprised or shocked? Of course, most will be shocked by the scope of their debt. Regardless of your reaction, you now (perhaps for the first time) have an exact accounting of your current debts. Debt help Considers this to be your guide, because it shows exactly how much money you currently owe, and by what date you must pay.

Step 2. This step employs a powerful visualization technique that actually enables you to visualize an end to your current debts.

* Mentally consolidate your bills. Do not think of your debt as a series of separate bills. Consider all your bills as one large bill to be repaid. As you diligently repay each component bill, your large bill becomes smaller.

* Mentally consolidate your payments. Do not consider your individual payments towards separate bills, consider them one large payment towards your one large bill.

* Debt help shows why you must continue making the same size payments regardless of how many bills are repaid. As bills are paid in full, more money is available to pay other bills, but only if your payments remain the same.

* You must pay your bills in the order of their higest monthly payments. This allows you to apply the most amount of money to the next bill and reduces your debts in the shortest amount of time.

If your large bill becomes smaller each time you make a payment while the size of your payments remains the same, the net result of this strategy is that each successive payment has a greater impact upon the size of your debt.

Debt Example: Say you have two bills, one for $250 and one for $750. Together they total $1000. You can afford to pay $500 per month. If you pay $250 towards each bill, the small bill will disappear after the first payment and the larger bill is reduced to $500. You still have $500 available for the next payment. If you maintain the same size payment, you will completely eliminate the remaining bill with the next payment.

Step 3. Now it is time for a course correction - you must alter your spending habits. Regardless of the cause, be it problem debt or chronic debt, you must be willing to change your spending habits and if necessary, seriously alter your lifestyle.

* Establish your long-term financial goals. It took months or years to reach your current level of debt. Since you cannot wish yourself out of debt nor can you count on winning the lottery, you must adopt, reasonable financial goals. The more you pratice meeting even limited financial goals. The more confident and in control of your life you will feel. This in turn enables you to meet longer-term goals successfully.

* Establish credible short-term goals. Short-term means tomorrow! Durning the next 24 hours you are not to incur any new debt.

* just get through one day, then another. You get the idea. The impact of this - trail by fire - is to immediately boost your confidence by preventing your debt from expanding. This prepares you for the serious commitment to complete debt reduction ahead of you.

* Establish realistic intermediate term goals. These goals should find you becoming comfortable with the basics of debt reduction. Your goals are to implement the plan, grow more confident as you watch your debts grow smaller and begin to realize that you can become debt free.

* Establish, well defined, long term goals. As you master these debt reduction techniques , you will be firmly committed to effecting, permanent chance in your financial condition. Not only can you see yourself debt free sooner, but also you can realistically see yourself accumulating wealth. You are in control of your financial well being. You are no longer a debtor - with debt help you are on the road to complete debt freedom!

* Prioritize your spending. Eliminate impulse purchases. Buying on impulse addresses your wants not your needs. Seek alternative methods to pay for goods and services:

* Barter: You may be able to barter anything of value including your time, for something of value to you.

* Learn to live with less. you must learn to live with the extremely limited financial resources you have available, instead of the unlimited ones you pretended you had. Remember, a sacrifice is a trade-off. You give up something now; you are rewarded later. Denial, on the other hand, has no reward. it is punishment.

About the Author: Debt Help is run by Vincent Dail. They review and then list some of the best debt elimination, programs, software and books available online!

Mortgage Debt Elimination

2005-09-22T12:24:00.000-05:00

Morgage Debt Elimination shows that if you fall behind on your mortgage, you must contact your lender immediately to avoid foreclosure, dont wait 2 or 3 months. Most lenders are willing to work with you if they believe you're acting in good faith and the situation is temporary, please tell the truth.

Some lenders may reduce or suspend your payments for a short time, mortgage debt elimination shows you that when you resume regular payments, you will only have to pay an small additional amount toward the past due total.

Other lenders may agree to change the terms of the mortgage by extending the repayment period to reduce the monthly debt. Ask whether additional fees would be assessed for these changes, and calculate how much they total in the long term.

If you and your lender cannot work out a plan, contact a housing counseling agency. Some agencies limit their counseling services to homeowners with FHA mortgages, but many offer free mortgage debt advice to any homeowner who's having trouble making mortgage payments.

Call the local office of the Department of Housing and Urban Development or the housing authority in your state, city, or county for help in finding a legitimate housing counseling agency near you.

For More Infomation Visit: Mortgage Debt Elimination They review and then list some of the best debt elimination, programs, software and books available online!

Payday Loans: How They Really Work!

2005-09-22T12:04:00.000-05:00

Payday loan companies gives the borrower the amount of the check minus their fee (They get their money up front).

Fees charged for payday loans are usually a percentage of the face value of the check or a fee charged per amount borrowed for every $50 or $100 loaned.

A cash advance loan secured by a personal check - such as a payday loan - is very expensive credit.

Let's say you write a personal check for $115 to borrow $100 for up to 14 days. The check casher or a payday loan lender agrees to hold the check until your next payday.

And, if you extend or roll-over the loan - say for another two to four weeks - you will pay A Fee Each Time you get a extension.

Under the Truth in Lending Act, the cost of payday loans - like other types of credit - must be disclosed.

Among other information, you must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis) which when you do the math can be very high.

Top 5 Alternatives to Payday Loans!

1. There are other options. Consider these possibilities before choosing a payday loan:

2. When you need credit, shop carefully. Compare offers. Look for the credit offer with the lowest APR - consider a small loan from your credit union or small loan company, an advance on pay from your employer, or a loan from family or friends.

3. A cash advance on a credit card also may be a possibility, but it may have a higher interest rate than your other sources of funds: find out the terms before you decide. Also, a local community- based organization may make small business loans to individuals.

4. Compare the APR and the finance charge (which includes loan fees, interest and other types of credit costs) of credit offers to get the lowest cost.

5. Ask your creditors for more time to pay your bills. Find out what they will charge for that service - as a late charge, an additional finance charge or a higher interest rate.

If you decide you must use a payday loan, borrow only as much as you can afford to pay with your next paycheck and still have enough to make it to the next payday.

For More Infomation On PayDay Loans Visit: PayDay Loans They review and then list some of the best debt elimination, programs, software and books available online in 2005, Including Free Articles, Special Reports and More!

Reverse Mortgages Learn The Facts First!

2005-09-22T11:43:00.000-05:00

Reverse Mortgages, Most Common Features:

Many offer special appeal to older adults because the loan advances, which are not taxable, generally do not affect Social Security or Medicare benefits.

Depending on the plan, reverse mortgages generally allow homeowners to retain title to their homes until they permanently move, sell their home, die, or reach the end of a pre-selected loan term.

Generally, a move is considered permanent when the homeowner has not lived in the home for 12 consecutive months. So, for example, a person could live in a nursing home or other medical facility for up to 12 months before the reverse mortgage would be due.

However, be aware that:

Reverse mortgages tend to be more costly than traditional loans because they are rising-debt loans.

The interest is added to the principal loan balance each month. So, the total amount of interest owed increases significantly with time as the interest compounds.

Reverse mortgages use up all or some of the equity in a home. That leaves fewer assets for the homeowner and his or her heirs.

Lenders generally charge origination fees and closing costs; some charge servicing fees. How much is up to the lender.

Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.

Because homeowners retain title to their home, they remain responsible for taxes, insurance, fuel, maintenance, and other housing expenses.

Getting a Good Deal.

If you decide to consider a reverse mortgage, shop around and compare terms.

Look at the:

Annual percentage rate (APR), which is the yearly cost of credit. type of interest rate. Some plans provide for fixed rate interest; others involve adjustable rates that change over the loan term based on market conditions, number of points (fees paid to the lender for the loan) and other closing costs.

Some lenders may charge steep costs, which your lender may offer to finance. However, if you agree to this, you'll take out fewer proceeds from the loan or you'll borrow an extra amount, which will be added to your loan balance and you'll owe more interest at the end of the loan. Total Amount Loan Cost (TALC) rates.

The TALC rate is the projected annual average cost of a reverse mortgage, including all itemized costs.

It shows what the single all-inclusive interest rate would be if the lender could charge only interest and no fees or other costs. payment terms, including acceleration clauses.

They state when the lender can declare the entire loan due immediately. Under the federal Truth in Lending Act, lenders must disclose these terms and other information before you sign the loan.

On plans with adjustable rates, they must provide specific information about the variable rate feature.

On plans with credit lines, they must inform the applicant about appraisal or credit report charges, attorney's fees, or other costs associated with opening and using the account.

Be sure you understand these terms and costs.

For More Infomation On Reverse Mortgages Visit: Mortgage Debt Advice They review and then list some of the best debt elimination, programs, software and books available online in 2005, Including Free Articles, Special Reports and More!

The Five Most Popular Questions About Bankruptcy

2005-09-22T11:03:00.000-05:00

WILL MY CREDITORS STOP HARASSING ME?

Yes, they will! By law, all actions against a debtor must cease
once bankruptcy documents are filed. Creditors cannot initiate
or continue any lawsuits, wage garnishees, or even telephone
calls demanding payments. Secured creditors such as banks
holding, for example, a lien on a car, will get the stay lifted
if you cannot make payments.

WILL MY SPOUSE BE AFFECTED?

Your wife or husband will not be affected by your bankruptcy if
they are not responsible (did not sign an agreement or contract)
for any of your debt. If they have a supplemental credit card
they are probably responsible for that debt.

However, In community property states, either spouse can
contract for a debt without the other spouse's signature on
anything, and still obligate the marital community. There are a
few exceptions to that rule, such as the purchase or sale of
real estate; those few exceptions do require both spouse's
signatures on contracts. But the day to day debts, such as
credit cards, do NOT require both spouses to have signed.

Your bankruptcy lawyer will be able to guide you in this
regard.

WHO WILL KNOW?

Chapter 7 filings are public records. However, under normal
circumstances, no one will know you filed for Chapter 7. The
Credit Bureaus will record your filing and it will remain on
your credit record for 10 years.

WILL I EVER GET CREDIT AGAIN?

Yes! A number of banks now offer "secured" credit cards where a
debtor puts up a certain amount of money (as little as $200) in
an account at the bank to guarantee payment. Usually the credit
limit is equal to the security given and is increased as the
debtor proves his or her ability to pay the debt.

Two years after a discharge, debtors are eligible for mortgage
loans on terms as good as those of others, with the same
financial profile, who have not filed Chapter 7. The size of
your down payment and the stability of your income will be much
more important than the fact you filed chapter 7 in the past.

The fact you filed Chapter 7 or 13 stays on your credit report
for 10 years. It becomes less significant the further in the
past the filing is. The truth is, that you are probably a
better credit risk after bankruptcy than before.

WHAT DOES IT COST?

Costs for filing your bankruptcy will vary depending on the
type of bankruptcy you are seeking. The rule of thumb is that a
consumer bankruptcy will cost approximately $200. This does not
include attorney fees that can run between $700 and $1500
depending on the nature and complexity of your case. Many
bankruptcy lawyers will give you a free initial consultation.
You can keep the fees down by being well organized and well
prepared. You may also be able to keep the fees down by not
requiring the lawyer to attend the meeting of creditors with
you. Check this with your lawyer. In some states such as
Massachusetts, attorneys must attend the Section 341 meeting
with the debtors otherwise attorneys are deemed to have NOT
represented the debtors.

These fee quotes are mere estimates based on nationally
reported averages and subject to variation and change. Please
consult with your local bankruptcy court and with legal counsel
on fees before commencing any action.

About The Author: Nathan Dawson writes for
http://www.mybankruptcycounseling.com, a great online source
for bankruptcy information

Five Easy Steps to Repairing Your Credit

2005-09-21T06:15:00.000-05:00

Have you damaged your credit rating, and now need to repair it? It can be a long, tedious process, if you aren't sure of exactly what to do. And if you decide to work with an agency that specializes in this type of work, you're paying someone to do work that you can do yourself, for free. This article will discuss what options you can take to repair your credit, yourself, without having to pay a penny to do it.

If after the walk through in this article, you are still having problems with your credit repair, it is well advised that you talk to an experienced lawyer in this area. There may be no other way to get some unauthorized information off your report - but let's try these simple steps, first!

1. Credit Repair: Get Copies of Your Credit Reports
Send a letter to each of the major credit reporting agencies (TransUnion, Equifax, CSC, Innovax, and Experian), asking them for a copy of your credit records. Some states require that you send along a copy of a credit denial letter with this letter, or else they will levy a charge (somewhere between $3-10). If you are serious about trying to repair your credit, you'll need to do this manually, instead of online, for several reasons. First of all, many online credit repair companies are hit or miss; you may or may not get the information you require. Secondly, the printouts may be difficult to read (after having been scanned several times), and last of all, it is difficult to go back and find exactly where the information was located, if need be, again.

2. Credit Repair: Take a Good Look
Make a copy of all of the credit reports you receive, and highlight each and every person and company who has reviewed your credit history. Do you know who all of these people, and companies are? You should. Do some sleuthing, and try and figure out if every company listed is one that you have given access to. Don't forget that many agencies are allowed to access your credit rating reports, such as collection agencies, people trying to grant you credit, insurance underwriters, etc. Any entries that say "PRM" next to them are for promotional reasons, and are entirely legal. And finally, review all of your payment history with each credit agency to ensure it is all correct. If there is a discrepancy somewhere, write down the particulars. You'll need to go hunting for information confirming your case.

3. Credit Repair: Send a Letter
If applicable, send a letter to each of the credit agencies, letting them know there has been an error. Be specific; attach proof stating your case (a cancelled check stub, payment history printout, etc.) You may use the form that the credit repair agency sends you instead of writing out your own letter, but don't feel badly if you need more space to state your case. Make sure to keep a copy of everything that you send as well, just in case it gets lost in transit.

4. Credit Repair: Review
About 30 days after you've sent off your letters, you should receive responses from the credit repair agencies you have contacted. The letter will show clearly what has been changed, along with a new copy of your credit report, as well as any omissions, deletions, or additions to your credit repair file. If you still have an issue, you have up to two years to make changes on your file, as per the Fair Credit Reporting Act (FCRA).

For more more information about repairing your credit please visit http://www.moneytipsdaily.com/Money-Tips/Credit-Repair-Provider-Cautions-Against-Collection-Agencies.html

What is a Credit Report?

2005-09-20T16:51:00.000-05:00

This article is a concise, informative tell-all explaining what exactly a credit report is, and what that means to you. It will NOT inform you where to get a cheap, or free, credit report. Rather, this article will explain what types of credit reports are available, and why they are used.

A credit report is a retelling of your credit payment history. It can be provided to companies by one of the four credit bureaus in the U.S. as designated by law. Usually, this information is only shared when credit is being extended, although this is not always the case.

A credit report is used to tell a potential creditor about your ability to repay your debts, based on past experiences. All credit reports are hosted in databases housed by the credit bureaus.

If you are one of the 210 million people in the U.S who has a student loan, credit card, mortgage or another type of loan, then you probably have a credit file, somewhere. The information gathered to create your credit file is garnered from the companies with which you have credit extended to you. Also, the government or legal system may provide information as well.

Whenever you apply for more credit, a credit report is usually created which contains all of this information from one of the four credit bureaus in the U.S. (Innovex, Experian, Equifax and TransUnion). There are quite a few other, smaller credit bureaus around the states; however, most credit granting agencies will only look at information from one of the big four.

There are several different kinds of credit reports that an agency can request about you:

- Consumer Credit Reports (what we have discussed most of this article already);
- Property Manager Credit Reports: These reports are used by landlords to determine your credit history with regards to your rental payments, and are essentially the same report as the consumer credit report.
- Business Credit Reports: These reports are used by credit agencies to determine if a business is credit worthy. Information gathered can include company background, number of employees, estimated yearly sales, public records, payment trends and how the company compares to others in the same industry.
- Employer Credit Reports: These reports are similar to the consumer credit reports, but are used in addition, and include such information as employment history, education, criminal records checks, and motor vehicle registration and history.
- Mortgage Broker Credit Reports: These credit reports are quite different than the others, as they bring together information from more than one database at a time. These are used to determine if a client is a good credit granting risk for a mortgage, and can include information such as your name, living situation, and employment and educational history.

Credit bureaus collect information about the people who have credit, and then maintain that information for any reports as discussed above. Although credit bureaus are not affiliated with the government, they are strictly regulated to protect the privacy of credit issuers, granters and consumers.

For more more information about credit reports please visit http://www.moneytipsdaily.com/Money-Tips/Keep-Your-Credit-History-Clean-Remove-A-Negative-Credit-Record-From-Credit-Report.html

Free Debt Consolidation?

2005-09-19T08:03:00.000-05:00

Chances are, when you're reading this article, you've typed this particular set of keywords in the search box: free debt consolidation. And without a doubt, a number of articles came out as a result, this being one of them, or else you just happened to stumble upon this accidentally.

No matter, the next thing I'm sure of is that as you sum up the articles made available for your convenience, the range of content varies, mainly because of the ambiguous term "free". One article could be talking about free debt consolidation with free pertaining to no service fee needed. Another article could see that as free information being given out about debt consolidation.

But this article has the foresight of predicting that happening in advance so we'll be discussing both possibilities in the following paragraphs.

Debt Consolidation - Free = No Payment Needed!
Although everything comes with a price, some organizations or companies do make free debt consolidation possible.. in a way. If you reckon, debt consolidation is having a person or a company assist you in taking care of your bills. This service usually does not come for free but there are credit counseling agencies that are non-profitable who do give you free debt consolidation, but only within reason, of course. And sadly, that's all there is to it.

Debt Consolidation - Free Consultations and Information!
Now this one, I can say more about. Most debt consolidation companies, if not all, offer free consultations. In those free consultations, you can ask about everything that confuses you, from A-Z and they would answer your questions patiently. After all, what's a few pints of saliva if ultimately, you find you like the debt consolidation program they're offering? And there are all those free information over the Internet that you can read. Some websites provide information regarding the debt consolidation companies to watch out for and tips to get yourself out of a debt consolidation contract. There was even one article that I came across that was adamantly against debt consolidation companies in general. Furthermore, he goes ahead to warn readers from companies that supposedly provide people with debt settlement and debt negotiation. Those companies are reputedly worse because the tactics and means they use are, say, paralegal.

In any case, whether you may be searching information about free information or free fees for debt consolidation, it's better to think things about a thousand times over before making a decision. It's a sad fact of life that only a few things in life come for free and information and debt consolidation are not excluded. Information that is free may be erroneous or lacking in evidential support. Debt consolidation that is free, on the other hand, may not be free at all and may simply add on to your financial worries.

Therefore, it's better to be wary than sorry. Don't trust what comes to you for free right away. It's better to trust debt consolidation programs that have clear cut costs and fees rather than debt consolidation programs that, albeit free of charge, have terms too ambiguous for one's sake. At least, with debt consolidation programs that have charges, you know exactly what you're getting into. The terms and conditions are clear so you know what you're giving up and what you'll be receiving in return.

Get out of debt and find out how to invest your money wisely by visiting www.investing-strategy.info

Learning Accounting: Debit and Credit Basics

2005-09-18T17:20:00.000-05:00

When learning accounting for the first time, the terms 'debit' and 'credit' can be a bit confusing. Why? Because when you go to the bank and deposit money, the teller will tell you, "I am crediting your account X amount of dollars," but if you are taking money our of your account, the teller will tell you, "I am debiting your account X amount of dollars." Also, with debit machines all over the place, and credit cards in everyone's pocket, the two accounting terms take on a whole new meaning.

However, what we've learned about these two words so important in the accounting world, debit and credit, have to be unlearned quickly. Why? Because in accounting, the term debit is used to describe a bank account and that money owed are actually credit accounts - the exact opposite of what we've been taught elsewhere.

In accounting terms, neither credits nor debits are 'bad', but they need to equal each other in order to balance themselves out in the end. Every itemized transaction, no matter if it's a deposit or a bill to be paid has both a debit and credit posted in the accounting world. This is what is called 'double-entry accounting' - so when you go to the bank, and the teller says, "I am crediting your account X amount of dollars," she is also debiting an entry of a similar amount without telling you this. The same goes for when the teller tells you, "I am debiting your account X amount of dollars," - the accounting will show that a credit of the same amount is being made elsewhere at the same time.

The easiest way to figure out debits and credits in accounting terms is to figure out the following: what did you receive, and where did it come from. The debit is what you received, and the credit is where you received it from, in accounting terms. So for demonstration sake, let's say you bought a CD with your credit card. The CD is what you got, so it will be a debit in the accounting world, and the credit will be applied to the liability you carry on your credit card for the exact same amount.

The bank can easily confuse people learning about credits and debits in the accounting sense of the words, especially when discussing liability. For instance, when you put money in the bank, the bank's liability to you increases, and since liabilities are credits, they are crediting your account (in accounting terms). And when the bank lowers their liability to us (by us taking money out of the bank) the banks are debiting the liability account, from an accounting perspective.

Basically it comes down to being able to figure out what you got and where exactly it came from; if you can figure these out for every transaction, then you've got the accounting terms of credit and debit down pat.

For more more information about accounting please visit http://www.moneytipsdaily.com

Bad Credit Loans: Be Careful!

2005-09-18T17:16:00.000-05:00

Bad Credit Loans: Be Careful!

2005-09-16T10:08:00.000-05:00

Credit Scoring: What it is, and How It Affects You

2005-09-15T21:10:00.000-05:00

If you have applied for a mortgage in the past five years, you’ve probably heard of credit scoring by now. Perhaps you were told that your credit scoring was wonderful, or needed work. Or maybe your mortgage would have been lowered by several points, if you had better credit scoring.

Credit scoring models, as the industry calls them, started to become widely used around 1994. Two secondary market players, Fannie Mae and Freebie Mac, started creating automated underwriting programs around this time, and this is how credit scoring came to be the way it is today. Both auto lenders and credit card issuers have used these types of systems for years – well before the mortgage brokers did.

The aforementioned companies that started to use these processes about 10 years ago now thought it was strange that someone could walk into an auto dealership, and two hours later drive away with a $100,000 car – but a potential homeowner couldn’t do the same thing. Which made no sense, because cars depreciate over time, and can get lost or stolen – but houses usually appreciate, and are fixed in location. So, using this logic, the industry movers and shakers decided that if the car buying process was this easy, then home buying should be as well.

Although in theory this sounds quite amazing, it’s only been recently that this has actually been the reality of the process. This is partially because the credit scoring models have become more refined over the years. And now, almost all mortgages are determined using some sort of credit scoring process.

These mortgage brokers usually use some sort of credit reporting agency to get information about someone who has applied for financing, or credit scoring, with them. But what most people don’t know is that there are two different kinds of credit reporting agencies whose information determines your credit scoring. The first is the four big credit agencies: Innovax, Equifax, TransUnion and Experian. When a person gets credit, or even applies for credit, this is reported back to these credit agencies, and kept on file indefinitely. Files are updated, usually, on a monthly basis. However, these credit scoring agencies only accept the information as it is given to them; there is no fact checking process to ensure that your credit scoring is accurate.

Credit scoring agencies will also get information on a consumer applying for a mortgage using other sources, such as the Department of Motor Vehicles, the Medical Information Board, the FBI, local law enforcement agencies, county records, government records, and the like. The mortgage industry has a repository of their own for information about people they give credit to, which can be accessed in a pinch if required, so that those who are bad credit risks don’t get a good credit scoring.

For more more information about credit scoring please visit http://www.moneytipsdaily.com/Money-Tips/Credit-Abuse-You-May-Be-an-Innocent-Victim-and-Not-Know-It.html

Ten Ways To Get Out Of Debt

2005-09-14T18:26:00.000-05:00

1) Use your Assets
If you have assets with some significant equity, such as a home
or a car you may be able to use these to get control of your
debt. For example, you could get a loan on your home sufficient
to pay off your debts. You could be saving a considerable amount
of money on interest if you pay off high interest credit card
debt in return for lower cost debt.

If you have a car, consider selling it, paying off your debts
and buying a cheaper car. Be careful though! Your don't want a
"cheaper" car that will cost you a fortune in repair costs.

2) Get a Second Job
Use the money from this job to only pay off your debts. List
your debts noting the interest rates. Pay off the debts with
the highest rates first and work your way down the list.

3) Put your Credit Cards on Hold
One of the best steps you can take to get out of debt is to
immediately stop using credit cards. At the very least destroy
all your cards keeping just one card for emergencies.

4) Set up a Repayment Plan
Cut back on your expenses and/or use freed up cash to pay down
your debts. Pay off the debts with the highest rates first and
work your way down the list.

5) Get a Consolidation Loan
A consolidation loan can make lots of sense. Get a loan to pay
off all your many debts and have just one payment to make. The
new loan usually has a smaller payment and a lower interest
rate.

6) Use the Services of a Credit Counselor
There are two types of credit counselor, for profit and
"nonprofit". We do not distinguish between the two as they
provide similar services and both charge a fee. Credit
counselors can assist you in acquiring the discipline you need
to get control of your debt. Be careful! Many people do not
fully understand all the ramifications involved such as:

Impact on your credit rating

The credit bureau will record that a plan is in place.

Are your payments too high?

Your payments should be high enough to significantly reduce
your debt but not so high that you have "no life". If you do
not have money left over at the end of the month to pay for the
small pleasures in life you may find that you end up defaulting
on your payments.

For how long should you pay?

Most experts feel that the term should be three to four years.
It is a stipulation in the new Bankruptcy Reform Bills that the
term be 3-5 years. Terms longer than this have a very high
failure rate, because people cannot see a "light at the end of
the tunnel".

7) Informal Proposal - Payments over time.
In some cases you can make a proposal to your creditors to set
up a payment plan that will allow you to pay your creditors in
an orderly way and thus help preserve your credit rating. This
operates similar to a debt consolidation loan except you do not
borrow the money to pay off your creditors.

8) Informal Proposal - Lump sum payment.
You may be able to pay less than 100 cents on the dollar. For
example, a relative may be willing to pay a lump sum to the
creditor of say 50% of the amount owed in order for the balance
of the debt to be written off. Your creditors will be more
willing to accept this offer rather than have you file Chapter
7.

This works best when there are few creditors.

9) Chapter 13 Bankruptcy
You are probably a good candidate for Chapter 13 bankruptcy if
you are in any of the following situations:

1. You have a sincere desire to repay your debts, but you need
the protection of the bankruptcy court to do so. You may think
filing Chapter 13 is simply the "Right Thing To Do" rather than
file Chapter 7.

2. You are behind on your mortgage or car loan, and want to
make up the missed payments over time and reinstate the
original agreement. You cannot do this in Chapter 7 bankruptcy.
You can make up missed payments only in Chapter 13 bankruptcy.

3. You need help repaying your debts now, but need to leave
open the option of filing for Chapter 7 bankruptcy in the
future. This would be the case if for some reason you can't
stop incurring new debt.

4. You are a family farmer who wants to pay off your debts, but
you do not qualify for a Chapter 12 family farming bankruptcy
because you have a large debt unrelated to farming.

5. You have valuable nonexempt property. When you file for
Chapter 7 bankruptcy, you get to keep certain property, called
exempt. If you have a lot of nonexempt property (which you'd
have to give up if you file a Chapter 7 bankruptcy), Chapter 13
bankruptcy may be the better option.

6. You received a Chapter 7 discharge within the previous six
years. You cannot file for Chapter 7 again until the six years
are up.

7. You have a co-debtor on a personal debt. If you file for
Chapter 7 bankruptcy, your creditor will go after the co-debtor
for payment. If you file for Chapter 13 bankruptcy, the creditor
will leave your co-debtor alone, as long as you keep up with
your bankruptcy plan payments.

8. You have a tax debt. If a large part of your debt consists
of federal taxes, what happens to your tax debts may determine
which type of bankruptcy is best for you.

10) Chapter 7 Bankruptcy
If these alternatives will not work for you, bankruptcy may be
the only way for you to get a fresh start. Chapter 7 Bankruptcy
offers a quick solution to getting out of debt.

About The Author: Nathan Dawson writes for
http://www.mybankruptcycounseling.com, a great online source
for bankruptcy information

Planning To Become Debt Free With A Consolidation Loan

2005-09-13T12:48:00.000-05:00

If you have multiple debts, and are struggling to meet the
monthly payments, then there's a good chance you will want to
consider, now or later, a consolidation loan to become debt
free.

If you have already studied your monthly expenditure and can
see no way to make savings, and find you have no way of earning
extra money, then your next option may be a free debt
consolidation loan.

By free, I mean no extra charges or arrangement fee for the
consolidation loan; your chances of getting an interest free
consolidation loan are just about zero, unless you have a rich
relative or friend. Should you go down the debt consolidation
route, try to avoid any loan arrangement which involves upfront
fees, or any extra fees at all for that matter. Whether that is
possible will depend on where you live, but in the UK, it is
not difficult to get a free debt consolidation loan.

One benefit of a consolidation loan is that it does give you a
chance to plan your finances in a way that could, if you're
careful, make you debt free by the end of the period of the
loan. By debt free, I will be realistic and mean "debt free
apart from home mortgage", which most people have little option
about, and mortgage debt can be worthwhile financially anyway.

Taking out a debt consolidation loan will not, of course, make
you instantly debt free. However, it may be that such a loan
will give you a chance to structure your finance plan over a 3,
5 or 7 year period. With the correct attitude and perseverance,
this may be an excellent opportunity to improve your finances
in the long term, resulting in being debt free by the end of
the loan period.

The consolidation loan will reduce your monthly outgoings, thus
giving you the opportunity to save. By getting into the saving
habit instead of debt habit, you will be able to set aside
money to pay cash for the things you need in the future; if you
are determined and disciplined, even that next car purchase can
be in cash, rather than an expensive loan. The result: you
become debt free.

In the financial reality of a consumer, if you cannot to afford
to pay cash for something, then you probably cannot really
afford it at all. The one exception is the house, where the
investment potential and rent saving change the financial
aspect.

Can you imagine, waking up at the end of the consolidation loan
term and finding yourself debt free? What a nice feeling!

About The Author: This debt consolidation article was written
by Roy Thomsitt, the owner and author of
http://www.eliminate-credit-card-debt-now.com/Consolidate_Debt.htm
Formerly a finance professional and credit controller, Roy is
now a full time online author.

Beware Of Using Your Credit Card Abroad!

2005-09-12T21:14:00.000-05:00

It's summer. And for some lucky Americans, this means going vacation
to a far off land in hopes of relieving the stress of everyday life.
In general, it is a very happy couple of months for the regular
American family but it can also be an even happier time for credit
card companies. This is because of the fact that credit card companies
are making a killing off the money Americans spend on their foreign
vacations through questionable fees.

Imagine this situation. You and your family are in Paris, France on
vacation. Your wife sees a lovely pair of shoes that she "must have"
and so being the good husband that you are, you purchase the $300 pair
of shoes using your credit card. Two weeks or so later, your credit
card statement shows up and instead of you seeing a charge for $300
dollars, you statement shows a charge for $309. How did this happen?
The answer is that you were charge 1% foreign currency-conversion fee
by Visa or Master to convert your foreign-currency purchase into
American dollars and were also charged an addition 2% foreign
transaction fee by your credit card issuer.

If you are form the U.S., when you make a purchase abroad with your
credit card, your credit card issuer will convert the charge to U.S.
dollars before it appears on your statement. Usually, this is done
through the Visa or MasterCard networks, which charge a 1-percent
foreign currency-conversion fee for converting your foreign-currency
purchase into American dollars. According to Kristin Arnold, a writer
for Bankrate.com, this is a good deal since changing your money in
almost any other manner will probably cost you a lot more.

What is unsettling, however, is the additional foreign transaction fee
which your credit card issuer charges. This fee can range from 2-3%.
According to Linda Sherry, the editorial director for Consumer Action
in Washington, "Banks have been making a profit off their customers
for a long time, while providing no service." In Agreement, Ed
Perkins, a syndicated travel columnist and author of "Business Travel
When It's Your Money," says that these fees are "pure gouging that
credit card companies know they can get away with". Foreign
transaction fees do not relate to any service that the credit card
issuer provides but instead is buried deep in the fine print of the
credit card agreement between the issuer and the customer. So in
retrospect, while Visa or MasterCard may have done you a favor by
converting your foreign-currency purchase into American dollars for a
fee of 1%, your bank's additional charges were driven by pure greed.

So what can you do to avoid these fees? The answer is to do your
research. Currently there is no standard rate at which all banks and
corporations charge, so you could possibly find a card that does not
add on any additional fees for overseas purchases. For example Bank of
America, Citibank, MBNA and JP Morgan Chase all charge 2 percent on
overseas purchases while Household Credit Services, Providian
Financial Corp and Capital One do not.

Another way that one can protect themselves from being overcharged is
to know and keep up with the latest currency exchange rates. Visiting
currency conversion sites like http://www.gocurrency.com is a great
way to do this. Having a general idea of the exchange rate will help
you make more informed decisions when you purchase goods and services
from local vendors.

In the end, credit card companies are in the business to make money,
however, it is up to you whether they get it from you honestly or
through underhanded practices.

Gerron Woodruffe is a contributing writer for GoCurrency.com
http://www.gocurrency.com . GoCurrency provides information on global
exchange rates, movements and news related information.

Planning To Become Debt Free With A Consolidation Loan

2005-09-11T06:12:00.000-05:00