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.
Wednesday, December 07, 2005
Thursday, November 24, 2005
Repair Your Credit...The Right Way!
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!
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
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!
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!
Sunday, November 20, 2005
Are You Thinking About Filing For Bankruptcy Protection?
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.
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.
Friday, November 18, 2005
Building Credit Ideas
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.
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.
Is The Use Of "Pay Day" Loans Wise?
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.
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.
Wednesday, November 16, 2005
Debt - Strategically Pay It Back
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 ==================
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 ==================
Friday, November 11, 2005
Debt Elimination Program Reviews, Tips And Free Articles!
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.
Thursday, November 10, 2005
Debt Settlement -- Why The Critics Are Wrong
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
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
Tuesday, November 08, 2005
Your Credit History
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.
==============================================================
At credit repair specialist we give you the very best special reports, tips and techniques on credit-repair. Plus in-depth expert reviews of the recommended top programs online and the ones to avoid!
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.
==============================================================
At credit repair specialist we give you the very best special reports, tips and techniques on credit-repair. Plus in-depth expert reviews of the recommended top programs online and the ones to avoid!
Thursday, November 03, 2005
Choosing A Debt Management Program
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!
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!
Tuesday, November 01, 2005
Students Investing In Their Future Need To Manage Their Finances Today
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).
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).
Monday, October 31, 2005
How To Use A 'Credit' Card Online Safely.
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
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
Sunday, October 30, 2005
Managing Credit Cards Effectively
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
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
Saturday, October 29, 2005
How To: Avoid Foreclosure
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
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
Thursday, October 27, 2005
Credit Reports And Credit Reporting Agencies
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
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
Wednesday, October 26, 2005
What Is Foreclosure And How To Avoid It?
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.
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.
Tuesday, October 25, 2005
The Human Side: Debt Stress
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.
================== ARTICLE END ==================
For more free-reprint articles by Angie Noack please visit:
http://www.isnare.com/?s=author&a=Angie+Noack
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.
================== ARTICLE END ==================
For more free-reprint articles by Angie Noack please visit:
http://www.isnare.com/?s=author&a=Angie+Noack
Monday, October 24, 2005
Tips For Vacationing On A Budget
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.
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.
Sunday, October 23, 2005
The Human Side: Debt Stress
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.
================== ARTICLE END ==================
For more free-reprint articles by Angie Noack please visit:
http://www.isnare.com/?s=author&a=Angie+Noack
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.
================== ARTICLE END ==================
For more free-reprint articles by Angie Noack please visit:
http://www.isnare.com/?s=author&a=Angie+Noack
Top Credit Card Mistakes
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.
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.
Thursday, October 20, 2005
Repairing Your Credit
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
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
Wednesday, October 19, 2005
The New Bankruptcy Law -- How Will It Affect Debt Negotiation?
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
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
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