The Credit Bandwagon
© Copyright 2005 parone tamont
Everywhere we turn, the word credit can be seen,
flashing huge dollar signs right before our very eyes.
Living in a materialistic world it is hard to keep up with
the Jones and so we revert to credit. Credit makes the
world go round at the moment, where personal debt far
outweighs personal wealth.
We jump on the credit bandwagon by applying for
credit cards, for personal loans, for interest free terms,
for mortgages, for an I.O.U. at the corner store we
even ask for credit on a couple of cigarettes from
friends just to get us by until next pay.
But ask yourself this; where does it all end? Suicide
rates are on the increase, families are breaking down
from financial stress, and people are living below the
poverty line yet we still choose to live on credit. It is
quite ironic to note that the definition of credit mentions
the word ¡°defer¡±. Yes, we are deferring our payments
whilst we enjoy the benefits of such credit, but arent
we also deferring our lives as the bills pile high and our
disposable income is reduced to nil. Arent we deferring
our opportunity to really live life to the fullest by having
to work to pay this credit off?
Meanwhile credit agencies place the debts in the
hands of collectors who hound you for payment, who
promise that you will never be granted credit again,
who make your life a living hell and encourage thoughts
of running for the hills. Most dont run but they probably
resort to never answering the phone again either. Is
that living? No, probably not but it is all done in the
name of credit.
Surely, credit agencies should have societal
responsibilities to ensure that those that apply for credit
actually do have the means to support the credit. An
application for credit could be full of bogus information
and would still get approved. How many times do we
have to write down a reference for our employer but
later find that our employer has never been contacted?
Society really has a lot to answer for! Why was it ok to
live within our means and to do without luxuries in
years gone by, but now in the 21st century it appears
to be totally unacceptable to live without having some
form of luxury item on credit? What ever happened to
budgeting and saving? Ultimately it really is up to the
individual concerned to make up their own mind about
what they will spend and what they will save, however
peer groups, the media and family pressure can often
be very influential.
---------------------------------------------------------------------------------------
parone tamont is the owner of
Credit Rak
which is a premier resource for credit information.
for more information, go to http://www.creditrak.com
======================================================
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Thursday, August 25, 2005
Wednesday, August 24, 2005
Planning To Become Debt Free With A Consolidation Loan
If you have multiple debts, and are struggling to meet the
monthly payments, then there's a good chance you will want to
consider, now or later, a consolidation loan to become debt
free.
If you have already studied your monthly expenditure and can
see no way to make savings, and find you have no way of earning
extra money, then your next option may be a free debt
consolidation loan.
By free, I mean no extra charges or arrangement fee for the
consolidation loan; your chances of getting an interest free
consolidation loan are just about zero, unless you have a rich
relative or friend. Should you go down the debt consolidation
route, try to avoid any loan arrangement which involves upfront
fees, or any extra fees at all for that matter. Whether that is
possible will depend on where you live, but in the UK, it is
not difficult to get a free debt consolidation loan.
One benefit of a consolidation loan is that it does give you a
chance to plan your finances in a way that could, if you're
careful, make you debt free by the end of the period of the
loan. By debt free, I will be realistic and mean "debt free
apart from home mortgage", which most people have little option
about, and mortgage debt can be worthwhile financially anyway.
Taking out a debt consolidation loan will not, of course, make
you instantly debt free. However, it may be that such a loan
will give you a chance to structure your finance plan over a 3,
5 or 7 year period. With the correct attitude and perseverance,
this may be an excellent opportunity to improve your finances
in the long term, resulting in being debt free by the end of
the loan period.
The consolidation loan will reduce your monthly outgoings, thus
giving you the opportunity to save. By getting into the saving
habit instead of debt habit, you will be able to set aside
money to pay cash for the things you need in the future; if you
are determined and disciplined, even that next car purchase can
be in cash, rather than an expensive loan. The result: you
become debt free.
In the financial reality of a consumer, if you cannot to afford
to pay cash for something, then you probably cannot really
afford it at all. The one exception is the house, where the
investment potential and rent saving change the financial
aspect.
Can you imagine, waking up at the end of the consolidation loan
term and finding yourself debt free? What a nice feeling!
About The Author: This debt consolidation article was written
by Roy Thomsitt, the owner and author of
http://www.eliminate-credit-card-debt-now.com/Consolidate_Debt.htm
Formerly a finance professional and credit controller, Roy is
now a full time online author.
====================================================================
Debt Elimination Programs Reviews, Articles And Tips On Complete Debt Elimination Get Out Of Debt, Using Only The Money You Already Earn And Not A Penny More! On Any Income!
monthly payments, then there's a good chance you will want to
consider, now or later, a consolidation loan to become debt
free.
If you have already studied your monthly expenditure and can
see no way to make savings, and find you have no way of earning
extra money, then your next option may be a free debt
consolidation loan.
By free, I mean no extra charges or arrangement fee for the
consolidation loan; your chances of getting an interest free
consolidation loan are just about zero, unless you have a rich
relative or friend. Should you go down the debt consolidation
route, try to avoid any loan arrangement which involves upfront
fees, or any extra fees at all for that matter. Whether that is
possible will depend on where you live, but in the UK, it is
not difficult to get a free debt consolidation loan.
One benefit of a consolidation loan is that it does give you a
chance to plan your finances in a way that could, if you're
careful, make you debt free by the end of the period of the
loan. By debt free, I will be realistic and mean "debt free
apart from home mortgage", which most people have little option
about, and mortgage debt can be worthwhile financially anyway.
Taking out a debt consolidation loan will not, of course, make
you instantly debt free. However, it may be that such a loan
will give you a chance to structure your finance plan over a 3,
5 or 7 year period. With the correct attitude and perseverance,
this may be an excellent opportunity to improve your finances
in the long term, resulting in being debt free by the end of
the loan period.
The consolidation loan will reduce your monthly outgoings, thus
giving you the opportunity to save. By getting into the saving
habit instead of debt habit, you will be able to set aside
money to pay cash for the things you need in the future; if you
are determined and disciplined, even that next car purchase can
be in cash, rather than an expensive loan. The result: you
become debt free.
In the financial reality of a consumer, if you cannot to afford
to pay cash for something, then you probably cannot really
afford it at all. The one exception is the house, where the
investment potential and rent saving change the financial
aspect.
Can you imagine, waking up at the end of the consolidation loan
term and finding yourself debt free? What a nice feeling!
About The Author: This debt consolidation article was written
by Roy Thomsitt, the owner and author of
http://www.eliminate-credit-card-debt-now.com/Consolidate_Debt.htm
Formerly a finance professional and credit controller, Roy is
now a full time online author.
====================================================================
Debt Elimination Programs Reviews, Articles And Tips On Complete Debt Elimination Get Out Of Debt, Using Only The Money You Already Earn And Not A Penny More! On Any Income!
Tuesday, August 23, 2005
The Fair Debt Collection Practices Act
Declaration Of Purpose:
An abundant evidence of the use of abusive, deceptive, and
unfair credit collection practices by many debt collectors led
to the declaration of the Fair Debt Collection Practices Act.
The purpose of the Act, approved in September 1977, was to
eliminate abusive debt collection practices by debt collectors
and to promote consistent state action to protect consumers
against debt collection abuses and invasions of individual
privacy.
The Fair Debt Collection Practices Act laid down specific
guidelines pertaining to the following procedures:
1. Acquisition Of Information [Sec 804]
Any debt collector seeking to acquire location information of a
consumer would identify himself and his purpose correctly and if
the need arises also disclose his employer. At no point during
the inquiry process shall the collector state or imply that a
consumer owes any debt, as this shall amount to invasion of
individual privacy. Once the enquiry process has been
completed, any correspondence thereafter shall be with the
attorney of the said consumer only.
2. Communication With the Consumer [Sec 805]
The debt collector may not communicate with the consumer at any
such place or time, which may be known to be inconvenient to the
consumer. If the collector has information that an attorney
represents the consumer, then any communication with the
consumer should be done only if the attorney fails to respond
to the collector's communication.
3. Abuse Or Harassment Of The Consumer [Sec 806]
A debt collector may not engage in any conduct the natural
consequence of which is to harass, oppress, or abuse any person
in connection with the collection of a debt. A collector may not
resort to acts of violence or threats thereof in order to coerce
the consumer into obliging to the collector.
4. Misrepresentation For Debt Collection [Sec 807]
A debt collector may not use any false, deceptive, or
misleading representation or means in connection with the
collection of any debt. The debt collector may not represent or
in any way implicate that nonpayment of the debt will result in
the arrest or imprisonment of any person or the seizure,
attachment or sale of any property of any person unless such
action is lawful and the debt collector or creditor intends to
take such action.
5. Debt Validation [Sec 809]
Within five days after the initial communication with a
consumer, the debt collector shall send the consumer a written
notice containing the exact amount of debt, the name of the
creditor and the due date of payment.
6. Civil Liability [Sec 813]
Any debt collector who fails to comply with any provision of
this act is liable to such person in an amount equal to the
extent of actual damage to the consumer and may be liable to
pay the consumer the defendant attorney's fees reasonable in
relation to the work expended and costs.
The Fair Debt Collection Practices Act provides guidelines for
all kinds of debt collection. For all debt collectors, be
in-house or collection agencies, it is must to understand the
act and stay within the legally permitted boundaries. The Fair
Debt Collection Practices Act has enough provisions for
collection agencies and departments to help them get the dues
from the debtors legally.
About The Author: Free collection agency services information
at http://www.collectionagencyservices.net
=============================================================
Debt Elimination Programs Reviews, Articles And Tips On Complete Debt Elimination Get Out Of Debt, Using Only The Money You Already Earn And Not A Penny More! On Any Income!
An abundant evidence of the use of abusive, deceptive, and
unfair credit collection practices by many debt collectors led
to the declaration of the Fair Debt Collection Practices Act.
The purpose of the Act, approved in September 1977, was to
eliminate abusive debt collection practices by debt collectors
and to promote consistent state action to protect consumers
against debt collection abuses and invasions of individual
privacy.
The Fair Debt Collection Practices Act laid down specific
guidelines pertaining to the following procedures:
1. Acquisition Of Information [Sec 804]
Any debt collector seeking to acquire location information of a
consumer would identify himself and his purpose correctly and if
the need arises also disclose his employer. At no point during
the inquiry process shall the collector state or imply that a
consumer owes any debt, as this shall amount to invasion of
individual privacy. Once the enquiry process has been
completed, any correspondence thereafter shall be with the
attorney of the said consumer only.
2. Communication With the Consumer [Sec 805]
The debt collector may not communicate with the consumer at any
such place or time, which may be known to be inconvenient to the
consumer. If the collector has information that an attorney
represents the consumer, then any communication with the
consumer should be done only if the attorney fails to respond
to the collector's communication.
3. Abuse Or Harassment Of The Consumer [Sec 806]
A debt collector may not engage in any conduct the natural
consequence of which is to harass, oppress, or abuse any person
in connection with the collection of a debt. A collector may not
resort to acts of violence or threats thereof in order to coerce
the consumer into obliging to the collector.
4. Misrepresentation For Debt Collection [Sec 807]
A debt collector may not use any false, deceptive, or
misleading representation or means in connection with the
collection of any debt. The debt collector may not represent or
in any way implicate that nonpayment of the debt will result in
the arrest or imprisonment of any person or the seizure,
attachment or sale of any property of any person unless such
action is lawful and the debt collector or creditor intends to
take such action.
5. Debt Validation [Sec 809]
Within five days after the initial communication with a
consumer, the debt collector shall send the consumer a written
notice containing the exact amount of debt, the name of the
creditor and the due date of payment.
6. Civil Liability [Sec 813]
Any debt collector who fails to comply with any provision of
this act is liable to such person in an amount equal to the
extent of actual damage to the consumer and may be liable to
pay the consumer the defendant attorney's fees reasonable in
relation to the work expended and costs.
The Fair Debt Collection Practices Act provides guidelines for
all kinds of debt collection. For all debt collectors, be
in-house or collection agencies, it is must to understand the
act and stay within the legally permitted boundaries. The Fair
Debt Collection Practices Act has enough provisions for
collection agencies and departments to help them get the dues
from the debtors legally.
About The Author: Free collection agency services information
at http://www.collectionagencyservices.net
=============================================================
Debt Elimination Programs Reviews, Articles And Tips On Complete Debt Elimination Get Out Of Debt, Using Only The Money You Already Earn And Not A Penny More! On Any Income!
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