By: Donald Saunders
The typical mortgage is designed to run for a long time and there can be very good reasons for looking to refinance a loan that was arranged a few years ago. For instance, if there has been a substantial fall in interest rates since your mortgage was taken out you might want to refinance to both lower your monthly payments and reduce the overall sum to be paid in interest during the remaining years of the mortgage. Likewise, you might want to use some of the increased equity in your property to help with putting your children through college or to pay for home improvements.
However, when it comes to refinancing your mortgage in order to meet such things as credit card and similar debts you need to think very carefully.
Refinancing a mortgage can be a complex process and will frequently involve you in almost as much work as you went through to get your original mortgage. For instance, you will be required to produce details of your present earnings as well as copies of previous tax returns and a variety of other paperwork. You will also normally be required to meet some fairly high refinancing costs and these have to be added into the equation when working out the total cost of this as a debt clearance solution.
Although mortgage refinancing can of course be used as a solution to clear credit card and similar debts, there are other solutions which are probably better in most cases. For instance, as long as you have a good, or at least reasonable, credit history and also have reasonable equity in your property then you might look at a second mortgage or a homeowner's equity line of credit (HELOC). These solutions would usually cost a little more than re-mortgaging but are generally much easier and provide you with far greater protection if you run into financial problems at a later date. For example, one advantage is that if you are late with payments on a secondary loan, or miss payments, you are unlikely to lose your property, which can happen if you run into difficulties making repayments on a main mortgage.
The real reason however for thinking carefully about re-mortgaging to clear your debts is that what you are essentially doing is borrowing money to clear your debts when your problem is that you are probably in debt because you borrowed too much money in the first place. In other words, the answer to clearing your debts should not really be to simply borrow more money and run the risk of making an already bad situation even worse. This is a mistake which so many people today make and, having started with $5,000 of debt, they borrow money to clear this debt and twelve months later end up having problems paying down their debt again, except that now their debt has risen to $10,000.
In certain circumstances refinancing your mortgage might be the answer but, when this happens, it is normally because your personal circumstances mean that you have few choices open to you and this is the best of a poor set of choices. In ninety percent of cases however there will be a better answer and you should only opt for re-mortgaging if you really do have no other choice.
TheDebtAssistanceCenter.com provides help with debt problems and looks at everything from student debt help to how to repair your credit report history
Wednesday, December 31, 2008
Time to Repair Credit Card Debt is Now!
By: William
Increasingly large numbers of people are troubled about repairing credit card debt especially in America. The chief reason for this is our spending beyond our needs and our inability to curb our spending. How many of us have unopened bank statements and notices that are lying somewhere in the drawers. We expect these to be paid by them. Well the fact is that credit card debt repair will not happen by itself. We need to sit up and take action to repair credit card debt. First of all, understand that you will need to do drastic things to repair credit card debt for it can’t be undone by itself. Once you have realized this then you can start working on it. The first step in repairing credit card debt is to collect all the bills and calculate the amount that needs to be paid. Once you know the correct amount that is due, you are doing a reality check and are now ready to repair your credit card debt. Hopefully after seeing the amount that is due you would get shaken up enough to stop making unnecessary purchases. The only way of repairing credit card debt is to stop purchasing all those luxury items. Stick to the very essentials. You would be surprised at how avoiding a weekly trip to your saloon or taking your own lunch bag would do wonders at adding up the figures and thus help in credit card debt repair. Once you have a control over your expenses you have a control over your credit card debt repair too. Next in the steps for repairing credit card debt is making a monthly budget. Add the total income of your family and subtract the absolute essential expenses from it. You would get a tentative idea about your savings and this exercise would help you to budget in order to repair credit card debt. Once you have a figure to achieve every month you would be motivated to get that figure and thus resist the urge to spend. Repair credit card debt is a task that you cannot let yourself forget at any point.Next use low interest credit cards for bill consolidation to repair credit card debt. This will help you in saving the interest payments. You would be surprised to see substantial savings through saving of interest payments. This in itself is a big step in repairing credit card debt.Last but not the least, lock your credit cards! Yes lock them up! It is difficult to control the urge to stop spending. So don’t cut them but store them in a safe place. Next, start by paying off your debts as soon as possible, since, the later you pay the more will be the interest on it. It might be a slow procedure but it is possible. So don’t lose hope and see how you repair your credit card debt without much trouble and doing so will maintain your debt records and from this you can limit your self to some vital expenditure.
William King is the director of UK Wholesale Suppliers & Drop Shipping Wholesalers Directory , Dubai Property & Dubai Real Estate in UAE . He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.
Increasingly large numbers of people are troubled about repairing credit card debt especially in America. The chief reason for this is our spending beyond our needs and our inability to curb our spending. How many of us have unopened bank statements and notices that are lying somewhere in the drawers. We expect these to be paid by them. Well the fact is that credit card debt repair will not happen by itself. We need to sit up and take action to repair credit card debt. First of all, understand that you will need to do drastic things to repair credit card debt for it can’t be undone by itself. Once you have realized this then you can start working on it. The first step in repairing credit card debt is to collect all the bills and calculate the amount that needs to be paid. Once you know the correct amount that is due, you are doing a reality check and are now ready to repair your credit card debt. Hopefully after seeing the amount that is due you would get shaken up enough to stop making unnecessary purchases. The only way of repairing credit card debt is to stop purchasing all those luxury items. Stick to the very essentials. You would be surprised at how avoiding a weekly trip to your saloon or taking your own lunch bag would do wonders at adding up the figures and thus help in credit card debt repair. Once you have a control over your expenses you have a control over your credit card debt repair too. Next in the steps for repairing credit card debt is making a monthly budget. Add the total income of your family and subtract the absolute essential expenses from it. You would get a tentative idea about your savings and this exercise would help you to budget in order to repair credit card debt. Once you have a figure to achieve every month you would be motivated to get that figure and thus resist the urge to spend. Repair credit card debt is a task that you cannot let yourself forget at any point.Next use low interest credit cards for bill consolidation to repair credit card debt. This will help you in saving the interest payments. You would be surprised to see substantial savings through saving of interest payments. This in itself is a big step in repairing credit card debt.Last but not the least, lock your credit cards! Yes lock them up! It is difficult to control the urge to stop spending. So don’t cut them but store them in a safe place. Next, start by paying off your debts as soon as possible, since, the later you pay the more will be the interest on it. It might be a slow procedure but it is possible. So don’t lose hope and see how you repair your credit card debt without much trouble and doing so will maintain your debt records and from this you can limit your self to some vital expenditure.
William King is the director of UK Wholesale Suppliers & Drop Shipping Wholesalers Directory , Dubai Property & Dubai Real Estate in UAE . He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.
Tuesday, December 30, 2008
Bad Credit Debt Consolidation: Royal Road to Financial Freedom or Just Symptoms Cure?
By: Oswald J. Eppers
Do you think you are a typical American citizen? Well, if the answer is yes, your household also has a debt of about $14,500 and you annually spend more than you earn. Not an American – ok, don’t worry! The situation in Canada, the UK or other developed countries is not very different.
But how to get out of debt if you are not able to pay your monthly obligations? It seems difficult to find a solution but the earlier you start in reducing or consolidating your debt, the better. With time it becomes even more difficult.
Many advisors recommend starting with a debt consolidation in order to recover control over personal money management. Debt Consolidation means in general, taking out one loan to pay off several others. This often is done to secure a lower and fixed interest rate and has the convenience that you only need to service one loan instead of many. If you manage to get a considerably cheaper short-term bank loan or you can achieve a mortgage refinancing or a home equity loan, you save a lot of money and will be able to pay back your debt faster or even at once. As a first step you should consolidate all of your short-term debt into one loan in order to reduce your monthly payments. Important: Start with your credit card debt as you usually pay a much larger interest rate than even with an unsecured loan from a bank.
Risks and Problems of Debt Consolidation
You should know that Debt Consolidation has its drawbacks also. First of all it will be difficult to obtain a cheap loan if you have a poor credit score or even worse if you've declared bankruptcy.
These days, more and more people are suffering difficulties in servicing all their debt repayments, with the consequence that they are getting negative credit report entries and thus decreasing their credit worthiness. If you don’t get a loan due to your poor credit score you are in trouble and it is recommendable to request help from a professional financial consultant. There are several options for credit repair programs and bad credit debt consolidation [1], which help to improve your credit score and enable escaping from this catch-22. But in recent years, reports in the media have raised concerns about the use of consolidation loans [2,3]. Many people are tempted to consolidate unsecured debt into secured debt, usually secured against there home.
Robert Watts and Roya Nikkhah from the Sunday Telegraph [3] report: “Rising interest rates and large credit card liabilities are driving increasing numbers of consumers to take out controversial loans that put their homes at risk. Five interest rates rises over the past 11 months will leave scores of people unable to meet monthly repayments on credit cards, personal loans and car finance deals”. Although the monthly payments can often be lower, the total amount repaid might be significantly higher due to an elevated loan period. There are other alternatives to a debt consolidation loan, where unsecured debt is not "shifted" to secured debt, but is eliminated through a settlement or payment plan. Debt consolidation can be confusing for many people, so it is helpful to learn more about different options [1] before taking a decision.
What consumers need to know is that Bad Credit Debt Consolidation often only treats the symptoms of debt and does not address the root problem. “The problem is that people see their monthly repayments are lower and then go out and spend the difference. They don't understand the long-term picture or the trouble they've got themselves into”, says Mr. Treharne, head of personal insolvency at the financial services group KPMG. Good debt management is 80% made in our heads and only 20% based on financial technical knowledge. Only if we manage to change our behavior, a Bad Credit Debt Consolidation will be a sustainable solution. Everybody knows that this is not an easy task, but there are proven systems for improving Debt Management and achieving our financial freedom.
The first step is as simple as difficult as well:
Stop Spending – stick to your budget!
This is common sense and the traditional Grandma’s way of handling money, but it always works. Statistics show that more and more people forgot this golden rule of money management and pulling them deeper and deeper in the dept swamp. There are hundreds of publications providing systems and money management plans. One of the most known approaches is the “Debt Snowball Plan” from Dave Ramsey [4]. Ramsey’s money Debt Snowball System helped already hundreds of thousands of people change their lives through simple determination and following a plan that works: Stop everything except minimum payments and focus on paying off the smallest debt first. The advantage of this system is that paying off the smallest debt gives you quick feedback, and you are more likely to stay with the plan and keep stepping up to the next larger bill. Once you have a real debt management plan in place, its only a matter of time. Important for the success of the system: avoid using credit cards as you need to control your expenses. Credit card debt is a mayor problem in developed countries and this seems to be a psychological problem of our modern civilization. With plastic money you don’t “feel” the money you are spending and the card remains like new even after using it hundreds of times. Cut out habits that make you spend more and use common sense to control your budget. Only following these “simple” rules, Bad Credit Debt Consolidation will be sustainable and not just a symptoms cure.
Literature
1. Bad Credit Debt Consolidation - Credit Optimization Strategies, Two-Approach Job Assistant and Career Information Guide
3. Robert Watts and Roya Nikkhah, More people have loans that risk homes, Sunday Telegraph, 7/7/2007
4. Dave Ramsey, The Total Money Makeover
Oswald J. Eppers, PhD, is manager of the consulting firm E&R InterConsult and founder of the Two-Approach Job Assistant and Career Guide, a free Human Resources Bank and Career Information Resource. His page contains a critical review of Ramsey’s “Total Money Makeover” (in the bookstore) and much more information on Debt Consolidation Approaches.
Do you think you are a typical American citizen? Well, if the answer is yes, your household also has a debt of about $14,500 and you annually spend more than you earn. Not an American – ok, don’t worry! The situation in Canada, the UK or other developed countries is not very different.
But how to get out of debt if you are not able to pay your monthly obligations? It seems difficult to find a solution but the earlier you start in reducing or consolidating your debt, the better. With time it becomes even more difficult.
Many advisors recommend starting with a debt consolidation in order to recover control over personal money management. Debt Consolidation means in general, taking out one loan to pay off several others. This often is done to secure a lower and fixed interest rate and has the convenience that you only need to service one loan instead of many. If you manage to get a considerably cheaper short-term bank loan or you can achieve a mortgage refinancing or a home equity loan, you save a lot of money and will be able to pay back your debt faster or even at once. As a first step you should consolidate all of your short-term debt into one loan in order to reduce your monthly payments. Important: Start with your credit card debt as you usually pay a much larger interest rate than even with an unsecured loan from a bank.
Risks and Problems of Debt Consolidation
You should know that Debt Consolidation has its drawbacks also. First of all it will be difficult to obtain a cheap loan if you have a poor credit score or even worse if you've declared bankruptcy.
These days, more and more people are suffering difficulties in servicing all their debt repayments, with the consequence that they are getting negative credit report entries and thus decreasing their credit worthiness. If you don’t get a loan due to your poor credit score you are in trouble and it is recommendable to request help from a professional financial consultant. There are several options for credit repair programs and bad credit debt consolidation [1], which help to improve your credit score and enable escaping from this catch-22. But in recent years, reports in the media have raised concerns about the use of consolidation loans [2,3]. Many people are tempted to consolidate unsecured debt into secured debt, usually secured against there home.
Robert Watts and Roya Nikkhah from the Sunday Telegraph [3] report: “Rising interest rates and large credit card liabilities are driving increasing numbers of consumers to take out controversial loans that put their homes at risk. Five interest rates rises over the past 11 months will leave scores of people unable to meet monthly repayments on credit cards, personal loans and car finance deals”. Although the monthly payments can often be lower, the total amount repaid might be significantly higher due to an elevated loan period. There are other alternatives to a debt consolidation loan, where unsecured debt is not "shifted" to secured debt, but is eliminated through a settlement or payment plan. Debt consolidation can be confusing for many people, so it is helpful to learn more about different options [1] before taking a decision.
What consumers need to know is that Bad Credit Debt Consolidation often only treats the symptoms of debt and does not address the root problem. “The problem is that people see their monthly repayments are lower and then go out and spend the difference. They don't understand the long-term picture or the trouble they've got themselves into”, says Mr. Treharne, head of personal insolvency at the financial services group KPMG. Good debt management is 80% made in our heads and only 20% based on financial technical knowledge. Only if we manage to change our behavior, a Bad Credit Debt Consolidation will be a sustainable solution. Everybody knows that this is not an easy task, but there are proven systems for improving Debt Management and achieving our financial freedom.
The first step is as simple as difficult as well:
Stop Spending – stick to your budget!
This is common sense and the traditional Grandma’s way of handling money, but it always works. Statistics show that more and more people forgot this golden rule of money management and pulling them deeper and deeper in the dept swamp. There are hundreds of publications providing systems and money management plans. One of the most known approaches is the “Debt Snowball Plan” from Dave Ramsey [4]. Ramsey’s money Debt Snowball System helped already hundreds of thousands of people change their lives through simple determination and following a plan that works: Stop everything except minimum payments and focus on paying off the smallest debt first. The advantage of this system is that paying off the smallest debt gives you quick feedback, and you are more likely to stay with the plan and keep stepping up to the next larger bill. Once you have a real debt management plan in place, its only a matter of time. Important for the success of the system: avoid using credit cards as you need to control your expenses. Credit card debt is a mayor problem in developed countries and this seems to be a psychological problem of our modern civilization. With plastic money you don’t “feel” the money you are spending and the card remains like new even after using it hundreds of times. Cut out habits that make you spend more and use common sense to control your budget. Only following these “simple” rules, Bad Credit Debt Consolidation will be sustainable and not just a symptoms cure.
Literature
1. Bad Credit Debt Consolidation - Credit Optimization Strategies, Two-Approach Job Assistant and Career Information Guide
3. Robert Watts and Roya Nikkhah, More people have loans that risk homes, Sunday Telegraph, 7/7/2007
4. Dave Ramsey, The Total Money Makeover
Oswald J. Eppers, PhD, is manager of the consulting firm E&R InterConsult and founder of the Two-Approach Job Assistant and Career Guide, a free Human Resources Bank and Career Information Resource. His page contains a critical review of Ramsey’s “Total Money Makeover” (in the bookstore) and much more information on Debt Consolidation Approaches.
Is Student Loan Consolidation For You?
By: CarsonDanfield
You finally made it through college! That's great, but did you end up with a mountain of debt in the form of student loans? If so, you're not alone. With the high cost of continuing education, more and more people are having to finance that education with the help of student loans. Luckily the programs exist, but unfortunately, you can be left deeply in debt before you even start on your new career. One thing that might help you is to consolidate all your student loans so that you'll only have one payment to make each month, instead of several. And that one payment can be substantially lower than the total you're paying now.
Student Loan Consolidation Programs
Student loan consolidation programs help you to take control of your finances by lumping all your loan payments together into one easier to pay loan. This could reduce your monthly payment by up to 50% or more. The amount of the reduction depends on the amount of your other loans and the type of program you apply for.
Consolidating your student loans might also qualify you for a lower interest rate on your new loan, therefore reducing your payment even more. Plus if you combine all your smaller loans into a single loan, it might even help to improve your overall credit score or at least help to maintain its current status, since you will be able to meet your monthly obligations easier.
Programs for Defaulted Student Loans
There are even programs that were designed specifically for defaulted student loans. This type of program also includes credit counseling. The consolidator will procure your existing student loans so they are paid off in full and then you'll have one monthly payment to the new loan company who will help you rebuild your credit.
Thanks to this program, you'll be better able to keep your monthly payments on track, since the amount you have to pay each month will be lower. Your credit rating will begin to improve and you won't have to endure any more embarrassing phone calls or threats of wage garnishments. Ever notice how those phone calls always seem to come at the worst possible times?
Federal Direct Loan Consolidation Program
Another program for student loan consolidation is the federal direct loan consolidation program. This can help reduce your payments up to 50%. The good thing about this loan is that it usually has a lower rate of interest, so that it keeps the payments low and guards you against inflation.
If you're having problems keeping up with your monthly student loan payments, then you really should look into consolidating them into a single loan. Doing so can dramatically lower the payments as you're likely to get a lower interest rate and stretch the loan life out over a longer period of time. Having to pay less each month on your student loans means you'll have more money available for paying your other expenses.
Carson Danfield is an "Under the Radar" Internet Entrepreneur who's been quietly selling various products for the last 8 years. Although you've probably never heard of him. there's a good chance you've visited his websites in the past and even purchased some of his products.
If you'd like to get the more info about student loan consolidation be sure to visit Carson Danfield at student-loan-trix.com/
You finally made it through college! That's great, but did you end up with a mountain of debt in the form of student loans? If so, you're not alone. With the high cost of continuing education, more and more people are having to finance that education with the help of student loans. Luckily the programs exist, but unfortunately, you can be left deeply in debt before you even start on your new career. One thing that might help you is to consolidate all your student loans so that you'll only have one payment to make each month, instead of several. And that one payment can be substantially lower than the total you're paying now.
Student Loan Consolidation Programs
Student loan consolidation programs help you to take control of your finances by lumping all your loan payments together into one easier to pay loan. This could reduce your monthly payment by up to 50% or more. The amount of the reduction depends on the amount of your other loans and the type of program you apply for.
Consolidating your student loans might also qualify you for a lower interest rate on your new loan, therefore reducing your payment even more. Plus if you combine all your smaller loans into a single loan, it might even help to improve your overall credit score or at least help to maintain its current status, since you will be able to meet your monthly obligations easier.
Programs for Defaulted Student Loans
There are even programs that were designed specifically for defaulted student loans. This type of program also includes credit counseling. The consolidator will procure your existing student loans so they are paid off in full and then you'll have one monthly payment to the new loan company who will help you rebuild your credit.
Thanks to this program, you'll be better able to keep your monthly payments on track, since the amount you have to pay each month will be lower. Your credit rating will begin to improve and you won't have to endure any more embarrassing phone calls or threats of wage garnishments. Ever notice how those phone calls always seem to come at the worst possible times?
Federal Direct Loan Consolidation Program
Another program for student loan consolidation is the federal direct loan consolidation program. This can help reduce your payments up to 50%. The good thing about this loan is that it usually has a lower rate of interest, so that it keeps the payments low and guards you against inflation.
If you're having problems keeping up with your monthly student loan payments, then you really should look into consolidating them into a single loan. Doing so can dramatically lower the payments as you're likely to get a lower interest rate and stretch the loan life out over a longer period of time. Having to pay less each month on your student loans means you'll have more money available for paying your other expenses.
Carson Danfield is an "Under the Radar" Internet Entrepreneur who's been quietly selling various products for the last 8 years. Although you've probably never heard of him. there's a good chance you've visited his websites in the past and even purchased some of his products.
If you'd like to get the more info about student loan consolidation be sure to visit Carson Danfield at student-loan-trix.com/
Monday, December 29, 2008
Introducing Some Comfortable Ways To Get Good Value Debt Consolidation
By: T. O Donnell
Traditionally, you amalgamate all your debts into one lump sum, owed to a single company, and get the old debts paid off by said company. They handle the paperwork.
The catch is, to get this done, you pay a fee to the debt consolidation broker. So in effect you are still in debt, and are paying a fee on top.
Also, debt consolidation agencies interpose themselves between you and your creditors; another layer of bureaucracy, more chance for something to go wrong.
Also, the fact that you're using a debt consolidation company will show up on your credit report. This will affect your (future) credit rating.
Are you having money worries? Too many splurges on the ol' credit card? Bought a 4-Wheel-Drive on HP, and can't keep up the payments?
Here's another tip: Re-negotiate.
If the alternative is bankruptcy, your creditors will take something now, rather than next-to-nothing later. Loan finance is just another business. You have bought money for more than it cost the lender.
You can re-negotiate unsecured debts. These are debts where you haven't put up property as collateral. These include:
- Medical bills;
- Credit cards;
- Personal loans;
- Student loans;
- Bounced cheques;
- Department store cards.
Difficult to re-negotiate - secured debts. These are debts secured on cars or houses.
Even if you do have secured debts, who wants the hassle of a court case to get assets from you? A new agreement to pay off the loan at a reduced rate, or a lower monthly payment, makes much more business sense, than debt consolidation.
And regarding said assets: Can you sell the car at a good price, and get a cheaper one, or move to a smaller house, and pay off your debts? Can you rein in your monthly expenditure?
All these little treats that got you into debt, that you gave yourself, because you're unhappy, add up. Address the cause of your unhappiness, and your need for treats will diminish. You'll then have more money in the bank, and be happier. A sunny day, a walk in the park, the scent of a rose are all free, and a much better tonic than a fancy stereo or umpteen pairs of shoes.
Heck, you can keep your house, if you re-negotiate with your lender; they don't want the hassle of evicting you. It's a case of what is more profitable and easier; evicting you, or getting money up front. You can avoid debt consolidation companies altogether.
Being in debt is fine as long as you keep up the payments, are never late, and never default. Then everyone wants to lend you money.
When you do get into trouble, that's when the fun starts. Then, when you DO really need a loan, for an emergency, you may have trouble getting it.
Take the advice your grandmother told you: never a borrower or a lender be. Borrow only to make more money i.e. for a business. Don't get into debt for frivolous reasons. Pay off your debts as soon as you can.
Don't call a debt consolidation company because you can't be bothered to haggle with your creditors.
Then you will truly be free.
T. O' Donnell www.ttdebtconsolidation.co.uk is a licenced credit broker based in London, UK.
Traditionally, you amalgamate all your debts into one lump sum, owed to a single company, and get the old debts paid off by said company. They handle the paperwork.
The catch is, to get this done, you pay a fee to the debt consolidation broker. So in effect you are still in debt, and are paying a fee on top.
Also, debt consolidation agencies interpose themselves between you and your creditors; another layer of bureaucracy, more chance for something to go wrong.
Also, the fact that you're using a debt consolidation company will show up on your credit report. This will affect your (future) credit rating.
Are you having money worries? Too many splurges on the ol' credit card? Bought a 4-Wheel-Drive on HP, and can't keep up the payments?
Here's another tip: Re-negotiate.
If the alternative is bankruptcy, your creditors will take something now, rather than next-to-nothing later. Loan finance is just another business. You have bought money for more than it cost the lender.
You can re-negotiate unsecured debts. These are debts where you haven't put up property as collateral. These include:
- Medical bills;
- Credit cards;
- Personal loans;
- Student loans;
- Bounced cheques;
- Department store cards.
Difficult to re-negotiate - secured debts. These are debts secured on cars or houses.
Even if you do have secured debts, who wants the hassle of a court case to get assets from you? A new agreement to pay off the loan at a reduced rate, or a lower monthly payment, makes much more business sense, than debt consolidation.
And regarding said assets: Can you sell the car at a good price, and get a cheaper one, or move to a smaller house, and pay off your debts? Can you rein in your monthly expenditure?
All these little treats that got you into debt, that you gave yourself, because you're unhappy, add up. Address the cause of your unhappiness, and your need for treats will diminish. You'll then have more money in the bank, and be happier. A sunny day, a walk in the park, the scent of a rose are all free, and a much better tonic than a fancy stereo or umpteen pairs of shoes.
Heck, you can keep your house, if you re-negotiate with your lender; they don't want the hassle of evicting you. It's a case of what is more profitable and easier; evicting you, or getting money up front. You can avoid debt consolidation companies altogether.
Being in debt is fine as long as you keep up the payments, are never late, and never default. Then everyone wants to lend you money.
When you do get into trouble, that's when the fun starts. Then, when you DO really need a loan, for an emergency, you may have trouble getting it.
Take the advice your grandmother told you: never a borrower or a lender be. Borrow only to make more money i.e. for a business. Don't get into debt for frivolous reasons. Pay off your debts as soon as you can.
Don't call a debt consolidation company because you can't be bothered to haggle with your creditors.
Then you will truly be free.
T. O' Donnell www.ttdebtconsolidation.co.uk is a licenced credit broker based in London, UK.
Debt Consolidation Is Not Always The Right Solution
By: Jessica Peterson
There are many reasons why debt consolidation may not be the right solution for you. Debt consolidation cannot solve debt problems for all kind of debts. Debt consolidation may be too expensive if debt has already affected your credit and you don’t have collateral. And certain debt consolidation programs may be nothing but scams. Thus, you need to be well aware of what you are getting into.
Debt Not To Be Consolidated
For starters, you should understand than not all debt is suitable to be consolidated. The reasons for this are varied. Most subsidized loans already carry very low interest rates and thus, it makes no sense to consolidate those loans by using a more expensive loan. This is always true, unless of course what you need is to reduce the monthly payments by extending the loan repayment period.
There are many subsidized loans. Government loans for students, private loans for students, government loans for first time home buyers, government loans for starting businesses, government loans for research disciplines, etc. are just a few examples of subsidized loans that are not suitable for consolidation.
There are loans that being secured are not suitable for consolidation. Though refinancing can be a form of consolidation if other loans and debt are repaid with the exceeding cash obtained from a cash-out refinance loan, truth is that very seldom a home loan or home equity loan is included in a debt consolidation program.
Debt Suitable For Consolidation
Generally speaking only debt which is unsecured in nature and secured debt taken when your credit score was low (bad credit debt) is suitable for debt consolidation. The latter will be suitable only if your credit score has improved or if you can provide better collateral and thus obtain a more competitive interest rate.
Examples of unsecured debt are: unsecured personal loans and personal lines of credit, credit card debt, store card debt, pay day loans, cash advance loans, certain student debt, bank account overdraw agreements, bank pre-approved personal loans. All of these can be consolidated into a single loan or the terms negotiated by a debt consolidation agent.
Debt consolidation in the form of a loan carries the advantage of obtaining a single and lower monthly payment that will simplify your budget while you work on your expenses. Debt consolidation in the form of negotiation is also an excellent tool that can provide a solution by reducing rates, eliminating debt generated by interests or extending the repayment programs so as to make debt more affordable.
And finally, both methods can be combined offering an excellent way of eliminating debt, managing finances and improving credit score in the same debt consolidation program.
---
Jessica Peterson writes finance articles for Yourloanservices.com where she shares her knowledge about how to get money for a starting-up business, consolidating any kind of debt, repairing a home even with a bad credit history and more.
There are many reasons why debt consolidation may not be the right solution for you. Debt consolidation cannot solve debt problems for all kind of debts. Debt consolidation may be too expensive if debt has already affected your credit and you don’t have collateral. And certain debt consolidation programs may be nothing but scams. Thus, you need to be well aware of what you are getting into.
Debt Not To Be Consolidated
For starters, you should understand than not all debt is suitable to be consolidated. The reasons for this are varied. Most subsidized loans already carry very low interest rates and thus, it makes no sense to consolidate those loans by using a more expensive loan. This is always true, unless of course what you need is to reduce the monthly payments by extending the loan repayment period.
There are many subsidized loans. Government loans for students, private loans for students, government loans for first time home buyers, government loans for starting businesses, government loans for research disciplines, etc. are just a few examples of subsidized loans that are not suitable for consolidation.
There are loans that being secured are not suitable for consolidation. Though refinancing can be a form of consolidation if other loans and debt are repaid with the exceeding cash obtained from a cash-out refinance loan, truth is that very seldom a home loan or home equity loan is included in a debt consolidation program.
Debt Suitable For Consolidation
Generally speaking only debt which is unsecured in nature and secured debt taken when your credit score was low (bad credit debt) is suitable for debt consolidation. The latter will be suitable only if your credit score has improved or if you can provide better collateral and thus obtain a more competitive interest rate.
Examples of unsecured debt are: unsecured personal loans and personal lines of credit, credit card debt, store card debt, pay day loans, cash advance loans, certain student debt, bank account overdraw agreements, bank pre-approved personal loans. All of these can be consolidated into a single loan or the terms negotiated by a debt consolidation agent.
Debt consolidation in the form of a loan carries the advantage of obtaining a single and lower monthly payment that will simplify your budget while you work on your expenses. Debt consolidation in the form of negotiation is also an excellent tool that can provide a solution by reducing rates, eliminating debt generated by interests or extending the repayment programs so as to make debt more affordable.
And finally, both methods can be combined offering an excellent way of eliminating debt, managing finances and improving credit score in the same debt consolidation program.
---
Jessica Peterson writes finance articles for Yourloanservices.com where she shares her knowledge about how to get money for a starting-up business, consolidating any kind of debt, repairing a home even with a bad credit history and more.
Sunday, December 28, 2008
Use Credit Card Strategically to Avoid Debt
By: sharadbhai jain
Spending money as a luxury really gives you a high and since the innovation of credit cards, not only has our spending increased; but so has also our credit card debt. People sometimes tend to forget their financial limitations and jump onto a shopping spree for things which are either not required or for something which is beyond their reach. And the result - DEBT.
Financial Debt consultants are of the view that, falling prey to credit card debt is as easy as you can get credit cards on application. This easy access to credit cards can be considered as one of the most probable reason for the increasing number of people seeking debt consolidation after they get entangled in bad debt.
It is always advisable to remain and spend wisely within your financial limits, instead of spending lavishly. Credit cards can prove to be a disadvantage if you cannot keep a check on your spending because, even they might prove to be an asset at the time of purchasing, inability to make timely credit card payment can lead to bad credit score and unnecessary harassment from creditors.
So what do you do if you fall pray to credit card debt? This is a question many people ask. Well, since you have already made the blunder of causing unsecured debt, there are only a few ways on how to get due debt relief. But that is possible after due debt consolidation measures are taken.
Credit card debt also falls in the league of unsecured debts along with many others such as medical bills, balances left over from repossessions, department store cards and collections accounts. Such debts until paid off keep building on the interests and the debtor might also to pay hefty fines ranging from $10 to $40, besides being reported at the credit rating agencies.
Now, if you are contemplating applying for bankruptcy as a debt relief measure to get over your credit card debt; I’d say you are making a huge mistake again. It is always better if you seek debt consolidation for debt settlement or debt relief. You can contact any debt consolidation company or those offering online debt consolidation services for attending to your credit card debt issue.
Seeking debt consolidation can help you reduce your debt burden related tensions. The debt consolidation service that you appoint to look after your unsecured debt case on credit cards can either negotiate with your creditors or seek a way out to lower the interest rates on your credit cards, or actually negotiate your total debt amount. This will help you either avail lower interest rates which can make your monthly credit card payment much more affordable or lower your debt by 40-60% and have you debt free in under 3 years. All that without any credit checks. This will help you reduce your credit card debt and restore your credit card rating over time.
But before you jump into any debt settlement remember that this approach to debt reduction faces objections like possibility of lawsuits, damage to credit, tax consequences, collection calls from creditor’s agencies, etc. So, make sure when you use your credit card the next time, use it strategically.
get you answer to most common questions faq about debt settlement. Get the reliable information and guidance about it & different types of debt settlement.
Spending money as a luxury really gives you a high and since the innovation of credit cards, not only has our spending increased; but so has also our credit card debt. People sometimes tend to forget their financial limitations and jump onto a shopping spree for things which are either not required or for something which is beyond their reach. And the result - DEBT.
Financial Debt consultants are of the view that, falling prey to credit card debt is as easy as you can get credit cards on application. This easy access to credit cards can be considered as one of the most probable reason for the increasing number of people seeking debt consolidation after they get entangled in bad debt.
It is always advisable to remain and spend wisely within your financial limits, instead of spending lavishly. Credit cards can prove to be a disadvantage if you cannot keep a check on your spending because, even they might prove to be an asset at the time of purchasing, inability to make timely credit card payment can lead to bad credit score and unnecessary harassment from creditors.
So what do you do if you fall pray to credit card debt? This is a question many people ask. Well, since you have already made the blunder of causing unsecured debt, there are only a few ways on how to get due debt relief. But that is possible after due debt consolidation measures are taken.
Credit card debt also falls in the league of unsecured debts along with many others such as medical bills, balances left over from repossessions, department store cards and collections accounts. Such debts until paid off keep building on the interests and the debtor might also to pay hefty fines ranging from $10 to $40, besides being reported at the credit rating agencies.
Now, if you are contemplating applying for bankruptcy as a debt relief measure to get over your credit card debt; I’d say you are making a huge mistake again. It is always better if you seek debt consolidation for debt settlement or debt relief. You can contact any debt consolidation company or those offering online debt consolidation services for attending to your credit card debt issue.
Seeking debt consolidation can help you reduce your debt burden related tensions. The debt consolidation service that you appoint to look after your unsecured debt case on credit cards can either negotiate with your creditors or seek a way out to lower the interest rates on your credit cards, or actually negotiate your total debt amount. This will help you either avail lower interest rates which can make your monthly credit card payment much more affordable or lower your debt by 40-60% and have you debt free in under 3 years. All that without any credit checks. This will help you reduce your credit card debt and restore your credit card rating over time.
But before you jump into any debt settlement remember that this approach to debt reduction faces objections like possibility of lawsuits, damage to credit, tax consequences, collection calls from creditor’s agencies, etc. So, make sure when you use your credit card the next time, use it strategically.
get you answer to most common questions faq about debt settlement. Get the reliable information and guidance about it & different types of debt settlement.
Debt Remedies
By: Ruth Jacob
If you are one of the many British consumers, who are stuck deep in debt, you would probably know, that there are a number of options available, if it ever becomes unmanageable. Bankruptcy is, fortunately, only for the most intractable cases, while the relatively new - and heavily advertised - "Individual Voluntary Arrangement" (IVA) is a kind of half-way house that typically allows property owners to keep their homes.
IVAs are not pain free; for one thing, they leave a heavy black mark on your credit rating, also the company that administers the arrangement charges a sizable fee, reducing the amount that your creditors receive. So if you want to plan your own escape from the burden of debt, how should you go about it?
Experts have agreed that the first step, is to recognise the problem. Banks consider customers to be in financial difficulty when income is insufficient to cover reasonable living expenses and meet financial commitments as they become due, according to the Banking Code. If this applies to you, immediate action is a must.
Most importantly, this means getting in contact with your creditors as soon as you realise that there is a problem. Under the Banking Code, financial institutions are obliged to deal with difficulties “sympathetically and positively”, so the sooner you let them know, the more chance they have of preventing things getting worse.
Rachel Snow of the Building Societies Association said: “Problems are often down to temporary circumstances that can be seen through. So always contact your lender before you start missing payments.”
Heather Scott from the bank, Intelligent Finance; part of Halifax said: “If the customer shows a genuine desire to deal with the problem, we will work with them to do this. This could include reducing repayments for a short period or allowing a ‘payment holiday‘. There are no hard and fast rules, but legal action over a mortgage is a last resort.”
Malcolm Hurlston, co-founder of Consumer Credit Counselling Service, a debt advice charity, said: “The key thing is to face up to it ,when you start to go into arrears, your lenders' main worry is that you have disappeared, so it's very important to stay in touch - otherwise they will spend a lot of money trying to find you.”
He added: “We then work out how much of this total repayment would go to each creditor and make offers to lenders accordingly. These offers are usually accepted straight away - lenders have come to trust our methods and this way they avoid the further costs involved in scrutinising each client's finances themselves. We collect the total agreed from the client every month and pay each creditor - by BACS transfer, which reduces their costs and is another factor in their willingness to agree to our proposals.”
He continued: “Consolidation loans are generally a bad idea as they either are secured on your house or charge a higher rate of interest than your existing borrowing. So unless you change your spending habits - if you carry on using your credit cards, say - you could end up with the same debt but with the chance of losing your home into the bargain.”
He concluded: “Most of our clients end up paying off the agreed sums, although some pay their debts off sooner - through us or directly - if their circumstances improve.”
Other options and sources to turn to, when dealing with debt, include specialist organisations and local service such as, National Debtline, which is geared towards providing help over the phone, while Citizens Advice offers a large network of advice bureaux, where you can talk to a counsellor face to face. The CCCS, meanwhile, provides a telephone service but also offers a comprehensive online tool called Debt Remedy (www.cccs.co.uk). This web-based questionnaire takes you through a detailed audit of your finances and then produces an analysis and a list of recommendations. Debt Remedy, which took two years to develop and is believed to be the only example of its type in the world, has the additional benefit of being anonymous. The charity also offers advice on the use of budgeting to avoid debt problems at the following website, www.cccs.co.uk/budget/budget.aspx.
Also a Citizens Advise Bureau may be your best port of call if you have problems ranging across secured and unsecured borrowing and utility companies, if you face legal action or if you are unable to pay anything to your creditors.
Moira Haynes of Citizens Advice said: “We can represent you in court and help you to claim state benefits as well as in drawing up financial statements and negotiating with creditors.”
Ruth is an author of several articles pertaining to Debt. She is known for her expertise on the subject and on other Business and Finance related articles.
If you are one of the many British consumers, who are stuck deep in debt, you would probably know, that there are a number of options available, if it ever becomes unmanageable. Bankruptcy is, fortunately, only for the most intractable cases, while the relatively new - and heavily advertised - "Individual Voluntary Arrangement" (IVA) is a kind of half-way house that typically allows property owners to keep their homes.
IVAs are not pain free; for one thing, they leave a heavy black mark on your credit rating, also the company that administers the arrangement charges a sizable fee, reducing the amount that your creditors receive. So if you want to plan your own escape from the burden of debt, how should you go about it?
Experts have agreed that the first step, is to recognise the problem. Banks consider customers to be in financial difficulty when income is insufficient to cover reasonable living expenses and meet financial commitments as they become due, according to the Banking Code. If this applies to you, immediate action is a must.
Most importantly, this means getting in contact with your creditors as soon as you realise that there is a problem. Under the Banking Code, financial institutions are obliged to deal with difficulties “sympathetically and positively”, so the sooner you let them know, the more chance they have of preventing things getting worse.
Rachel Snow of the Building Societies Association said: “Problems are often down to temporary circumstances that can be seen through. So always contact your lender before you start missing payments.”
Heather Scott from the bank, Intelligent Finance; part of Halifax said: “If the customer shows a genuine desire to deal with the problem, we will work with them to do this. This could include reducing repayments for a short period or allowing a ‘payment holiday‘. There are no hard and fast rules, but legal action over a mortgage is a last resort.”
Malcolm Hurlston, co-founder of Consumer Credit Counselling Service, a debt advice charity, said: “The key thing is to face up to it ,when you start to go into arrears, your lenders' main worry is that you have disappeared, so it's very important to stay in touch - otherwise they will spend a lot of money trying to find you.”
He added: “We then work out how much of this total repayment would go to each creditor and make offers to lenders accordingly. These offers are usually accepted straight away - lenders have come to trust our methods and this way they avoid the further costs involved in scrutinising each client's finances themselves. We collect the total agreed from the client every month and pay each creditor - by BACS transfer, which reduces their costs and is another factor in their willingness to agree to our proposals.”
He continued: “Consolidation loans are generally a bad idea as they either are secured on your house or charge a higher rate of interest than your existing borrowing. So unless you change your spending habits - if you carry on using your credit cards, say - you could end up with the same debt but with the chance of losing your home into the bargain.”
He concluded: “Most of our clients end up paying off the agreed sums, although some pay their debts off sooner - through us or directly - if their circumstances improve.”
Other options and sources to turn to, when dealing with debt, include specialist organisations and local service such as, National Debtline, which is geared towards providing help over the phone, while Citizens Advice offers a large network of advice bureaux, where you can talk to a counsellor face to face. The CCCS, meanwhile, provides a telephone service but also offers a comprehensive online tool called Debt Remedy (www.cccs.co.uk). This web-based questionnaire takes you through a detailed audit of your finances and then produces an analysis and a list of recommendations. Debt Remedy, which took two years to develop and is believed to be the only example of its type in the world, has the additional benefit of being anonymous. The charity also offers advice on the use of budgeting to avoid debt problems at the following website, www.cccs.co.uk/budget/budget.aspx.
Also a Citizens Advise Bureau may be your best port of call if you have problems ranging across secured and unsecured borrowing and utility companies, if you face legal action or if you are unable to pay anything to your creditors.
Moira Haynes of Citizens Advice said: “We can represent you in court and help you to claim state benefits as well as in drawing up financial statements and negotiating with creditors.”
Ruth is an author of several articles pertaining to Debt. She is known for her expertise on the subject and on other Business and Finance related articles.
Saturday, December 27, 2008
Help Me Get Out Of Credit Card Debt Right Now!
By: Kara Rand
Do you find yourself waking up in the middle of the night uttering the words help me get out of credit card debt? Debt has become the bane of millions of households across the country. If you are suffering from an oppressive amount of credit card debt, then you are not alone. Thankfully, there are avenues which can provide relief. One just has to be careful not to fall into any traps which can further ensnare you into even more debt.
Debt relief can come in a variety of fashions. One of the most popular is in the form of debt consolidation. This occurs when your many credit cards and other store cards are combined into one debt. This often proves to be more manageable and often entails a lower monthly payment and interest rates. The ideal scenario of debt consolidation occurs with a home equity loan. Obviously, one must own one's home and have sufficient equity for this to be achieved.
Although not required for all debt consolidation loans, home ownership can provide several advantages. Firstly, the interest rate associated with most home loans is lower than that which you pay now while the balances sit on a credit card. This is especially so for higher interest department and other store cards. In addition to lower interest rates, home equity loans can in most instances entail significant tax deductions. The amount you save on taxes can be further applied to pay down debt.
As indicated, there are also loans available to those who do not own their own homes. These loans, however, can entail high interest rates and fees. Therefore, you must search carefully for the most suitable loan for you. It is pointless to engage in debt consolidation with the result being a higher monthly payment. The goal of any debt consolidation program should be debt reduction in a faster pace than you would be capable if left on your own.
Debt consolidation can occur in scenarios which do not include any sort of loan. These are most often done through credit counseling services. There are both for profit and non profit counseling services. Many non profits are associated with highly esteemed charitable and religious institutions. There are also good for profit entities which provide this service. However, as in all industries, there are also bad apples.
It is imperative to avoid the unscrupulous operators which have been known to inhabit this space. The last thing you need is to emerge from debt consolidation owing even more. A good counseling service will accomplish several goals. Firstly, they will negotiate with your creditors. Ideally they can lower interest rates, if not get actual principal reduction. More importantly, they provide financial and budgeting counseling with an aim that you never get into the same situation again.
The power of debt consolidation can be great. You might be shocked at how much your monthly payments can go down once all your various cards are consolidated into one new aggregate loan. Oftentimes, hundreds of dollars can be saved and available to further pay down your debt.
If you are asking if there are ways to help me get out of credit card debt, the answer is yes. Many who are able to eliminate debt experience tremendous relief in more than a financial sense. In many scenarios debt can bleed over and is often reported to be a source of family strife. Consolidating your debt can end up improving your life in a multitude of ways.
If you are screaming "Help me get out of credit card debt"!, then you should visit Debt1-Consolidation.com today.
Do you find yourself waking up in the middle of the night uttering the words help me get out of credit card debt? Debt has become the bane of millions of households across the country. If you are suffering from an oppressive amount of credit card debt, then you are not alone. Thankfully, there are avenues which can provide relief. One just has to be careful not to fall into any traps which can further ensnare you into even more debt.
Debt relief can come in a variety of fashions. One of the most popular is in the form of debt consolidation. This occurs when your many credit cards and other store cards are combined into one debt. This often proves to be more manageable and often entails a lower monthly payment and interest rates. The ideal scenario of debt consolidation occurs with a home equity loan. Obviously, one must own one's home and have sufficient equity for this to be achieved.
Although not required for all debt consolidation loans, home ownership can provide several advantages. Firstly, the interest rate associated with most home loans is lower than that which you pay now while the balances sit on a credit card. This is especially so for higher interest department and other store cards. In addition to lower interest rates, home equity loans can in most instances entail significant tax deductions. The amount you save on taxes can be further applied to pay down debt.
As indicated, there are also loans available to those who do not own their own homes. These loans, however, can entail high interest rates and fees. Therefore, you must search carefully for the most suitable loan for you. It is pointless to engage in debt consolidation with the result being a higher monthly payment. The goal of any debt consolidation program should be debt reduction in a faster pace than you would be capable if left on your own.
Debt consolidation can occur in scenarios which do not include any sort of loan. These are most often done through credit counseling services. There are both for profit and non profit counseling services. Many non profits are associated with highly esteemed charitable and religious institutions. There are also good for profit entities which provide this service. However, as in all industries, there are also bad apples.
It is imperative to avoid the unscrupulous operators which have been known to inhabit this space. The last thing you need is to emerge from debt consolidation owing even more. A good counseling service will accomplish several goals. Firstly, they will negotiate with your creditors. Ideally they can lower interest rates, if not get actual principal reduction. More importantly, they provide financial and budgeting counseling with an aim that you never get into the same situation again.
The power of debt consolidation can be great. You might be shocked at how much your monthly payments can go down once all your various cards are consolidated into one new aggregate loan. Oftentimes, hundreds of dollars can be saved and available to further pay down your debt.
If you are asking if there are ways to help me get out of credit card debt, the answer is yes. Many who are able to eliminate debt experience tremendous relief in more than a financial sense. In many scenarios debt can bleed over and is often reported to be a source of family strife. Consolidating your debt can end up improving your life in a multitude of ways.
If you are screaming "Help me get out of credit card debt"!, then you should visit Debt1-Consolidation.com today.
Bad Debt The Global Issue
By: Helen Stevens
Most of us have heard varying accounts of debt consolidation, while some promote consolidation as a simple and effective means of debt relief, others give terrifying accounts of increased debt and ultimate financial disaster. The truth is somewhere between these extremes, depending on the situation, and debt consolidation could potentially be effective at lowering your debt. However, the value of debt consolidation programs can vary based on many factors, such as the amount you owe, your earnings and the types of debt you have. "How successful your debt consolidation program is" depends on your debt perception, your general thoughts about money. You need to keep the dos and don'ts in mind when considering consolidation.
If you're thinking about a debt consolidation loan, make sure you consult with a professional knowledgeable about a wide variety of options, rather than someone who just wants to sell their product. A change in your attitude toward debt or a combination of better budget control and professional advice may be necessary instead of a debt relief product in your search for a way to dig you way out of debt. You need to think about the repayment terms before choosing a debt consolidation loan. In general, paying the lowest monthly payments with longer repayment period means more to be paid in the long run, since more interest will be accrued as repayment period lengthened. If you only lower your payments without bothering to change your spending habits, your debt will continue to grow.
Would you be better off with a debt consolidation loan or a debt consolidation mortgage? In spite of the fact that you may receive a smaller Annual Percentage Rate if you went with a mortgage, ending your debt quicker, but risking your home.
If payments on your debt are becoming too much, it's time to do something different, a debt adviser will be able to help you in making certain decisions. Do you need to get out of the red? A debt advisor can help you choose the right one if necessary and not the same thing works for everyone, each person is different and each person's debt situation is different.
It is imperative that if you have consolidated your debts with a consolidation loan, you stop charging to credit cards, store cards or overdraft accounts. If you have a consolidation loan to pay off older debts, it can be very tempting to make new charges to these accounts, adding to the already serious situation. Since the last thing you need is new debt tacked onto the old ones, keeping one credit card for emergencies can be a good practice -- but only if you're aware of how you got into trouble in the first place! What behaviours in the past were responsible for the debt you now have? Since to goal of debt consolidation is to enable you to pay off your old debt without encumbering yourself with new ones, it's important to make sure you understand how you got in trouble in the first place, and how to avoid it in the future.
Helen is a freelance journalist writing about bad debt at eComparison.
Most of us have heard varying accounts of debt consolidation, while some promote consolidation as a simple and effective means of debt relief, others give terrifying accounts of increased debt and ultimate financial disaster. The truth is somewhere between these extremes, depending on the situation, and debt consolidation could potentially be effective at lowering your debt. However, the value of debt consolidation programs can vary based on many factors, such as the amount you owe, your earnings and the types of debt you have. "How successful your debt consolidation program is" depends on your debt perception, your general thoughts about money. You need to keep the dos and don'ts in mind when considering consolidation.
If you're thinking about a debt consolidation loan, make sure you consult with a professional knowledgeable about a wide variety of options, rather than someone who just wants to sell their product. A change in your attitude toward debt or a combination of better budget control and professional advice may be necessary instead of a debt relief product in your search for a way to dig you way out of debt. You need to think about the repayment terms before choosing a debt consolidation loan. In general, paying the lowest monthly payments with longer repayment period means more to be paid in the long run, since more interest will be accrued as repayment period lengthened. If you only lower your payments without bothering to change your spending habits, your debt will continue to grow.
Would you be better off with a debt consolidation loan or a debt consolidation mortgage? In spite of the fact that you may receive a smaller Annual Percentage Rate if you went with a mortgage, ending your debt quicker, but risking your home.
If payments on your debt are becoming too much, it's time to do something different, a debt adviser will be able to help you in making certain decisions. Do you need to get out of the red? A debt advisor can help you choose the right one if necessary and not the same thing works for everyone, each person is different and each person's debt situation is different.
It is imperative that if you have consolidated your debts with a consolidation loan, you stop charging to credit cards, store cards or overdraft accounts. If you have a consolidation loan to pay off older debts, it can be very tempting to make new charges to these accounts, adding to the already serious situation. Since the last thing you need is new debt tacked onto the old ones, keeping one credit card for emergencies can be a good practice -- but only if you're aware of how you got into trouble in the first place! What behaviours in the past were responsible for the debt you now have? Since to goal of debt consolidation is to enable you to pay off your old debt without encumbering yourself with new ones, it's important to make sure you understand how you got in trouble in the first place, and how to avoid it in the future.
Helen is a freelance journalist writing about bad debt at eComparison.
Friday, December 26, 2008
Break Into Bank Or Delve Into Dealership Debt
By: Onome Okwuosa
Walking into a dealership knowing that you could very well drive off in a shiny new four-wheeled Betty can make even the hardest of men giddy with excitement. Picking out the paintwork, the trims and whether or not you are going to opt for the soft top or the classic hard top can take hours.
Once you have got all that hard work done its time to settle down to the nitty gritty of the matter, the money. It’s all very well choosing the vehicle, the alloys and the fuel type but when it gets to the serious matter of handing over hard cash there’s no shame in breaking out in a cold sweat!
Do you go with the pushy salesman and his shiny pinstripe suit who’s screaming the praises of their new purchase plan that will knock the socks off any other financing option on the market; or do you look elsewhere? It is tempting to go with your butterflies and swiftly sign on the dotted line so you can grab the keys and zoom off, doing so may be the beginning of a bad relationship with your new baby. Acting in such a hasty and blinkered fashion may cost you more money than you can afford, could potentially lead to payment defaults and sadly, the premature relinquishment of your car.
If you value your car-to-be, and want to ensure your financial ability to maintain a relationship with her, then it is vital you do all the necessary research regarding the numerous finance options available to you, and not just the ones on offer by the dealership. Keep in mind the salesman is trying to sell you two different products that are not inextricably linked, choosing not to take out their finance, whether it is HP or PCP does not mean you lose out on the paramount product; your car.
As we are currently in the murky mires of a credit crisis the majority of lending institutions are hiking up their rates for taking out a loan, as it stands for those that have an adverse credit rating are likely to pay back their loan with a massive APR, some being as high as 22%. If however you have looked after your credit you are likely to be offered a more attractive rate, however it is still likely to be considerably higher than the current base rate of 5%.
That said, a little bit of research can go a long way to supporting your pocket and the change in them, this can be seen by the rates offered by the banks which are currently trying tore-align themselves with the base rate. As it stands Alliance and Leicester is offering a competitive rate of 6.4%, similarly Cahoot and the majority of other popular high street lenders are trying to keep their rates down, hovering around the 6% mark.
When it comes to borrowing from any institution the rule of thumb to saving money is to look for the offer with the lowest APR, there are other factors involved but this is usually the best starting point for comparison. As noted above it is clear that if the dealership is offering you a rate of 12.3% because your credit is in good stead and are screaming that this is the best offer on the market, a few clicks of the mouse on any comparison site will show this to not be true, if you do have good credit then it is in your best interests to go elsewhere.
However this does not mean that banks always offer the best rate, at the moment Renault dealerships can offer finance options with rates as sweet as 5.9%, undercutting the high street lenders by a long shot. Such information will only become known to you after you have done the necessary research; remember the car will always be there, if you don't do the research and leap before you look, in a few months your four-wheeled companion may not be.
Onome is an author of several articles pertaining to Debt. She is known for her expertise on the subject and on other Business and Finance related articles.
Walking into a dealership knowing that you could very well drive off in a shiny new four-wheeled Betty can make even the hardest of men giddy with excitement. Picking out the paintwork, the trims and whether or not you are going to opt for the soft top or the classic hard top can take hours.
Once you have got all that hard work done its time to settle down to the nitty gritty of the matter, the money. It’s all very well choosing the vehicle, the alloys and the fuel type but when it gets to the serious matter of handing over hard cash there’s no shame in breaking out in a cold sweat!
Do you go with the pushy salesman and his shiny pinstripe suit who’s screaming the praises of their new purchase plan that will knock the socks off any other financing option on the market; or do you look elsewhere? It is tempting to go with your butterflies and swiftly sign on the dotted line so you can grab the keys and zoom off, doing so may be the beginning of a bad relationship with your new baby. Acting in such a hasty and blinkered fashion may cost you more money than you can afford, could potentially lead to payment defaults and sadly, the premature relinquishment of your car.
If you value your car-to-be, and want to ensure your financial ability to maintain a relationship with her, then it is vital you do all the necessary research regarding the numerous finance options available to you, and not just the ones on offer by the dealership. Keep in mind the salesman is trying to sell you two different products that are not inextricably linked, choosing not to take out their finance, whether it is HP or PCP does not mean you lose out on the paramount product; your car.
As we are currently in the murky mires of a credit crisis the majority of lending institutions are hiking up their rates for taking out a loan, as it stands for those that have an adverse credit rating are likely to pay back their loan with a massive APR, some being as high as 22%. If however you have looked after your credit you are likely to be offered a more attractive rate, however it is still likely to be considerably higher than the current base rate of 5%.
That said, a little bit of research can go a long way to supporting your pocket and the change in them, this can be seen by the rates offered by the banks which are currently trying tore-align themselves with the base rate. As it stands Alliance and Leicester is offering a competitive rate of 6.4%, similarly Cahoot and the majority of other popular high street lenders are trying to keep their rates down, hovering around the 6% mark.
When it comes to borrowing from any institution the rule of thumb to saving money is to look for the offer with the lowest APR, there are other factors involved but this is usually the best starting point for comparison. As noted above it is clear that if the dealership is offering you a rate of 12.3% because your credit is in good stead and are screaming that this is the best offer on the market, a few clicks of the mouse on any comparison site will show this to not be true, if you do have good credit then it is in your best interests to go elsewhere.
However this does not mean that banks always offer the best rate, at the moment Renault dealerships can offer finance options with rates as sweet as 5.9%, undercutting the high street lenders by a long shot. Such information will only become known to you after you have done the necessary research; remember the car will always be there, if you don't do the research and leap before you look, in a few months your four-wheeled companion may not be.
Onome is an author of several articles pertaining to Debt. She is known for her expertise on the subject and on other Business and Finance related articles.
Debt Consolidation + Refinancing = Debt Relief
By: Devora Witts
Getting debt relief is sometimes too complicated. Even after consolidating your debt through a debt consolidation agency you may end up with monthly payments too difficult to afford that won’t leave space for unexpected expenses. However, by combining Debt Consolidation with Mortgage Refinancing you can achieve debt relief to an unbelievable extent.
The usual means for reducing debt exposure is contacting a consolidation agency or negotiating debt yourself. Debt consolidation implies contacting lenders and agreeing with them new repayment programs with lower monthly payments. This result can be achieved either by reducing the amount of money charged on interests or by extending the repayment schedules.
Debt Consolidation
The procedure is simple enough: Either you or the agent assigned to your case by the consolidation agency contacts each of your creditors and tries to convince them of the advantages they will get if they agree to lower your monthly payments. Sometimes in order to obtain their money sooner the lenders agree to a cut on the overall debt including capital and interests. In many cases debt consolidation agencies have obtained up to a 65% reduction of the debtor’s outstanding loans and credit card balances.
Once the negotiation process is completed; your debt expenses will be greatly reduced. However, sometimes the procedure is not enough and you may not be able to afford the monthly payments. At this stage, some debt consolidation agencies offer a debt consolidation loan with a longer repayment program. You just pay this single monthly installment to them and they take care of your loan payments and bills.
The problem is that in certain situations there is too much debt that is non-negotiable. Typically, federal student loans and some private student loan programs, home loans, home equity loans and any other form of secured loan is too hard to negotiate because the lender is comfortable knowing that he can legally claim your property in case you fail to repay the loan.
Refinancing
One would think that refinancing would only solve the problem with your home loan, but truth is that by taking advantage of cash out refinance loans you can request a higher loan amount than the amount of your current mortgage’s remaining debt and use that extra money to cancel other non-negotiable debt.
This procedure will not reduce your debt but will reduce your income/spending ratio because by refinancing you’ll be able to spread your debt into a longer repayment program reducing the amount of your monthly payments. Since by applying for a cash-out refinance loan you’ll get actual cash, you can use it for prepaying outstanding debt, but be careful to repay those loans that don’t have prepayment penalties first; that way you’ll save even more money.
The only difficulty that this method presents is that you need to have enough equity on your home in order to obtain a cash-out refinance loan. If a home equity loan is part of the debt you need to repay, chances are that you won’t be able to use this system. However, there are some lenders offering up to 135% financing at slightly higher rates. If there is no other choice, you can resort to them.
Devora Witts is a certified loan consultant with several years of experience in the credit area who instructs people regarding credit recovery and approval for personal loans, home loans, consolidation loans, car loans, student loans, unsecured loans and many other types of loans. If you want to understand Personal Loans for Bad Credit and Unsecured Loans thoroughly you can visit her site www.badcreditloanservices.com
Getting debt relief is sometimes too complicated. Even after consolidating your debt through a debt consolidation agency you may end up with monthly payments too difficult to afford that won’t leave space for unexpected expenses. However, by combining Debt Consolidation with Mortgage Refinancing you can achieve debt relief to an unbelievable extent.
The usual means for reducing debt exposure is contacting a consolidation agency or negotiating debt yourself. Debt consolidation implies contacting lenders and agreeing with them new repayment programs with lower monthly payments. This result can be achieved either by reducing the amount of money charged on interests or by extending the repayment schedules.
Debt Consolidation
The procedure is simple enough: Either you or the agent assigned to your case by the consolidation agency contacts each of your creditors and tries to convince them of the advantages they will get if they agree to lower your monthly payments. Sometimes in order to obtain their money sooner the lenders agree to a cut on the overall debt including capital and interests. In many cases debt consolidation agencies have obtained up to a 65% reduction of the debtor’s outstanding loans and credit card balances.
Once the negotiation process is completed; your debt expenses will be greatly reduced. However, sometimes the procedure is not enough and you may not be able to afford the monthly payments. At this stage, some debt consolidation agencies offer a debt consolidation loan with a longer repayment program. You just pay this single monthly installment to them and they take care of your loan payments and bills.
The problem is that in certain situations there is too much debt that is non-negotiable. Typically, federal student loans and some private student loan programs, home loans, home equity loans and any other form of secured loan is too hard to negotiate because the lender is comfortable knowing that he can legally claim your property in case you fail to repay the loan.
Refinancing
One would think that refinancing would only solve the problem with your home loan, but truth is that by taking advantage of cash out refinance loans you can request a higher loan amount than the amount of your current mortgage’s remaining debt and use that extra money to cancel other non-negotiable debt.
This procedure will not reduce your debt but will reduce your income/spending ratio because by refinancing you’ll be able to spread your debt into a longer repayment program reducing the amount of your monthly payments. Since by applying for a cash-out refinance loan you’ll get actual cash, you can use it for prepaying outstanding debt, but be careful to repay those loans that don’t have prepayment penalties first; that way you’ll save even more money.
The only difficulty that this method presents is that you need to have enough equity on your home in order to obtain a cash-out refinance loan. If a home equity loan is part of the debt you need to repay, chances are that you won’t be able to use this system. However, there are some lenders offering up to 135% financing at slightly higher rates. If there is no other choice, you can resort to them.
Devora Witts is a certified loan consultant with several years of experience in the credit area who instructs people regarding credit recovery and approval for personal loans, home loans, consolidation loans, car loans, student loans, unsecured loans and many other types of loans. If you want to understand Personal Loans for Bad Credit and Unsecured Loans thoroughly you can visit her site www.badcreditloanservices.com
Thursday, December 25, 2008
Tactics To Get Your Credit Card Debt Back Under Control
By: Nicholas Hunt
As the economic slowdown continues, and both banks and consumers feel the results of the credit crunch and spending loss, more and more people are concerned about their credit card debt. With worries rising over job security, pay cuts, and a weakening global economy, credit card debt is part of the larger looming problem that is casting its shadow over many families.
Getting your credit card debt under control has quickly become an important priority for people all over the world. Although it can sometimes feel like an unachievable goal, it is possible to climb out of the debt hole by following a few basic guidelines. Managing credit responsibly will help you to stay financially solid through any economic turmoil. Here's how you can get your credit card debt back under control.
Make a Budget
If you do not have a family or household budget set up, start one now. This is very easy to do through a spreadsheet program like Google Docs or Microsoft Excel. Keeping track of your income and expenses are the first step in figuring out how to pay off your credit card debts.
Lower Credit Card Interest Rates
Call your credit card company, and ask if they can lower your interest rates. If they won't negotiate, transfer all of your outstanding credit card balances to a card that has lower rates.
Use Only Cash
Avoid using your credit cards so you don't pile on any more debt. Leave your credit cards at home, or stick them in the back of a desk drawer where you don't see them. Always pay for everything directly with the cash in your bank account. If you do not have the cash to purchase something, don't buy it.
Cut Spending
The only way to get control of your credit card debt is by aggressively paying it off. In order to do this, you will have to change your spending habits. Using the information in your budget to guide you, start cutting unnecessary expenses, and see if you can also lower the amount you spend on necessary bills. Use all of the money you save to pay off your credit card debt.
With a little planning and active effort, it is possible to get your credit card debt back under control. By doing so, not only will you feel freed from the weight of the debt, but you will also be in a better position financially to ride out any economic changes.
Nicholas writes on how to clear debts, including tax debt and credit card debts.
As the economic slowdown continues, and both banks and consumers feel the results of the credit crunch and spending loss, more and more people are concerned about their credit card debt. With worries rising over job security, pay cuts, and a weakening global economy, credit card debt is part of the larger looming problem that is casting its shadow over many families.
Getting your credit card debt under control has quickly become an important priority for people all over the world. Although it can sometimes feel like an unachievable goal, it is possible to climb out of the debt hole by following a few basic guidelines. Managing credit responsibly will help you to stay financially solid through any economic turmoil. Here's how you can get your credit card debt back under control.
Make a Budget
If you do not have a family or household budget set up, start one now. This is very easy to do through a spreadsheet program like Google Docs or Microsoft Excel. Keeping track of your income and expenses are the first step in figuring out how to pay off your credit card debts.
Lower Credit Card Interest Rates
Call your credit card company, and ask if they can lower your interest rates. If they won't negotiate, transfer all of your outstanding credit card balances to a card that has lower rates.
Use Only Cash
Avoid using your credit cards so you don't pile on any more debt. Leave your credit cards at home, or stick them in the back of a desk drawer where you don't see them. Always pay for everything directly with the cash in your bank account. If you do not have the cash to purchase something, don't buy it.
Cut Spending
The only way to get control of your credit card debt is by aggressively paying it off. In order to do this, you will have to change your spending habits. Using the information in your budget to guide you, start cutting unnecessary expenses, and see if you can also lower the amount you spend on necessary bills. Use all of the money you save to pay off your credit card debt.
With a little planning and active effort, it is possible to get your credit card debt back under control. By doing so, not only will you feel freed from the weight of the debt, but you will also be in a better position financially to ride out any economic changes.
Nicholas writes on how to clear debts, including tax debt and credit card debts.
Advantages and Disadvantages of Debt Factoring Arrangements
By: Michael Zielinski
Debt factoring is the term for a financial transaction in which a business sells its accounts receivable to a specialized finance company. The receivables are sold at a discount and finance company, known as the factor, has the responsibility of collecting the outstanding amounts. This is sometimes referred to as accounts receivable financing or factoring.
This type of arrangement is used by businesses to improve cash flow and shorten the cash cycle. The business is able to receive immediate cash from the factor and without carrying out the collections process. Before entering into a debt factoring agreement, there are several pros and cons to consider.
The primary benefit of debt factoring is that it provides a quick method of financing. Instead of waiting to receive cash from customer accounts receivables, the business receives cash immediately from the factor. This can be important if the business needs cash to pursue finance growth. It can also be an alternative for businesses wary of taking on debt or issuing equity to raise capital.
Protection from bad debts is a potential benefit. This would only apply if the business has entered into a non-recourse factoring agreement. Under this type of agreement, the factor assumes the risk of bad debts. In other words, if a customer account cannot be collected, the factor must absorb the loss.
Cost effective collections is another potential benefit. In selling its accounts receivable, the business is effectively handing off the entire process of accounts receivable collections. While the costs of this processes are effectively built into the discount for which the receivables are sold, it can still be an attractive benefit for companies looking to save time or reduce employees needed for back office work.
Before entering into a debt factoring agreement, a business must also consider a number of disadvantages. The primary disadvantage is cost. Under a factoring agreement, the factor purchases accounts receivable at a discount. Depending on the discount amount, a factoring agreement may imply a very high cost of capital. This cost must be compared to the cost of other methods of financing available to the business.
A second disadvantage is that when a business works with a factor, they are introducing an outside influence into their business. Since the factor will be responsible for collecting accounts receivable and may be responsible for amounts which cannot be collected, they may try to influence sales practices. This can include attempts to influence sales policies and timing, as well as the customers that a business with deal with.
Bad debt liabilities are a potential disadvantage. This would be applicable if the business has entered into a resource factoring agreement. Under this type of arrangement, the business is responsible for any amounts that cannot be collected from customers. The discount rate at which the factor purchases the accounts is usually lower, but this must be considered in light of potential charges for uncollectible accounts.
Customer relations are a final potential disadvantage. Since a third party will now deal directly with customers to collect amounts owed, this can have a negative impact customer perception of the business. This is especially true if the factor engages in aggressive or unprofessional practices when collecting receivables.
Debt factoring represents a complex business agreement. It usually requires a long term contract and the modification of some sales processes. When evaluating whether debt factoring is a good choice for a business, both pros and cons must be weighed to make an informed decision.
Michael Zielinski is an internet entrepreneur and publisher. Read more about debt factoring or find more information on how debt factoring works.
Debt factoring is the term for a financial transaction in which a business sells its accounts receivable to a specialized finance company. The receivables are sold at a discount and finance company, known as the factor, has the responsibility of collecting the outstanding amounts. This is sometimes referred to as accounts receivable financing or factoring.
This type of arrangement is used by businesses to improve cash flow and shorten the cash cycle. The business is able to receive immediate cash from the factor and without carrying out the collections process. Before entering into a debt factoring agreement, there are several pros and cons to consider.
The primary benefit of debt factoring is that it provides a quick method of financing. Instead of waiting to receive cash from customer accounts receivables, the business receives cash immediately from the factor. This can be important if the business needs cash to pursue finance growth. It can also be an alternative for businesses wary of taking on debt or issuing equity to raise capital.
Protection from bad debts is a potential benefit. This would only apply if the business has entered into a non-recourse factoring agreement. Under this type of agreement, the factor assumes the risk of bad debts. In other words, if a customer account cannot be collected, the factor must absorb the loss.
Cost effective collections is another potential benefit. In selling its accounts receivable, the business is effectively handing off the entire process of accounts receivable collections. While the costs of this processes are effectively built into the discount for which the receivables are sold, it can still be an attractive benefit for companies looking to save time or reduce employees needed for back office work.
Before entering into a debt factoring agreement, a business must also consider a number of disadvantages. The primary disadvantage is cost. Under a factoring agreement, the factor purchases accounts receivable at a discount. Depending on the discount amount, a factoring agreement may imply a very high cost of capital. This cost must be compared to the cost of other methods of financing available to the business.
A second disadvantage is that when a business works with a factor, they are introducing an outside influence into their business. Since the factor will be responsible for collecting accounts receivable and may be responsible for amounts which cannot be collected, they may try to influence sales practices. This can include attempts to influence sales policies and timing, as well as the customers that a business with deal with.
Bad debt liabilities are a potential disadvantage. This would be applicable if the business has entered into a resource factoring agreement. Under this type of arrangement, the business is responsible for any amounts that cannot be collected from customers. The discount rate at which the factor purchases the accounts is usually lower, but this must be considered in light of potential charges for uncollectible accounts.
Customer relations are a final potential disadvantage. Since a third party will now deal directly with customers to collect amounts owed, this can have a negative impact customer perception of the business. This is especially true if the factor engages in aggressive or unprofessional practices when collecting receivables.
Debt factoring represents a complex business agreement. It usually requires a long term contract and the modification of some sales processes. When evaluating whether debt factoring is a good choice for a business, both pros and cons must be weighed to make an informed decision.
Michael Zielinski is an internet entrepreneur and publisher. Read more about debt factoring or find more information on how debt factoring works.
Wednesday, December 24, 2008
What Financing is Available if you Have Bad Credit?
By: Clint Jhonson
Is your personal credit score lower than you would like it to be? If so, don’t be discouraged as there are in fact still financing options available for you to consider. Using available credit wisely can enable you to rebuild your credit score over time. When searching for credit options, be sure to evaluate each one to ensure that you are making the best possible financial decision for you and your needs.
Pre-Paid Credit Cards
One of the easiest credit steps that you can take if you have bad credit is to apply for and secure pre-paid credit cards. Pre-paid credit cards extend you a spending limit equal to the amount of money that you place as a deposit, essentially working as a personal line of credit. As you repay the amount you spend, the pre-paid credit card company will report your positive payment history to the credit reporting agencies. Over time, you will be working to rebuild your credit score. Many borrowers will gain access to several smaller pre-paid credit cards to rebuild their credit faster than with just a single card. And, with good payment history, you will be eligible to apply for unsecured credit lines.
Home Loans
Even if you have poor personal credit, you can still secure home loans. One of the most significant differences of mortgage loans provided to individuals with strong credit scores and to those with poor credit scores is the interest rate offered. Interest rates are higher for individuals with lower credit scores to help protect the lender against default. Another key difference is that the deposit amount for an individual with poor credit will be higher than with an individual with strong credit. An individual may only be able to secure a home loan with 20%+ down. So, be prepared to place a more significant percentage of the home’s value as a deposit amount if your credit is poor.
Auto Loans
Yes, you can still obtain auto loans even if you have bad credit. In fact, obtaining an automobile loan is generally the easiest form of financing to obtain when a person has bad credit. And, the reason is that there is something that can be repossessed in the event of a loan default, giving the lender more financial security when creating and approving the loan. Similar to a home loan, the borrower will be faced with a larger interest rate for their purchase. Generally a borrower can expect to pay anywhere from 3-10% higher interest rates than another borrower with strong credit scores for the same purchase. In addition to a higher interest rate, borrowers must also place a security deposit or general deposit to complete their purchase. The deposit shows the lender good faith on the part of the borrower and offers the lender added financial security.
Personal Loans
Individuals with bad credit may be seeking personal loans in the form of lines of credit or debt consolidation loans. Personal lines of credit are offered less frequently to borrowers with bad credit scores as there is often nothing of value to secure the loan against. But, when they are offered they are offered at higher interest rates than traditional prime rate loans. Debt consolidation loans can enable borrowers to repay their personal debts back quicker and so they are often approved. These loans are designed to pay off all of the consumer’s debts at a lower rate than they currently are at on average, lowering the borrower’s total monthly payment amount. This lowered amount allows the borrower more flexibility in repayment and can often mean the difference in keeping them in or out of personal bankruptcy.
While consumer loans and other forms of credit are offered at higher interest rates to individuals with poor credit scores, they are still available. And, with good repayment history, these loan types can help the individual to rebuild their credit score over time. In many instances after 1-3 years the individual’s credit score will be improved enough that refinancing could be an option. And, with refinancing, interest rates can be lowered as well as monthly payment amounts. So, patience and solid repayment of consumer debts can work to rebuild a person’s credit score.
Do you want to qualify for a loan but have poor credit? BadCreditPersonalLoans is an information site designed for people with a bad credit rating. It contains hints and tips on bad credit, obtaining the best personal loan interest rates, understanding bank rejections and more.
Is your personal credit score lower than you would like it to be? If so, don’t be discouraged as there are in fact still financing options available for you to consider. Using available credit wisely can enable you to rebuild your credit score over time. When searching for credit options, be sure to evaluate each one to ensure that you are making the best possible financial decision for you and your needs.
Pre-Paid Credit Cards
One of the easiest credit steps that you can take if you have bad credit is to apply for and secure pre-paid credit cards. Pre-paid credit cards extend you a spending limit equal to the amount of money that you place as a deposit, essentially working as a personal line of credit. As you repay the amount you spend, the pre-paid credit card company will report your positive payment history to the credit reporting agencies. Over time, you will be working to rebuild your credit score. Many borrowers will gain access to several smaller pre-paid credit cards to rebuild their credit faster than with just a single card. And, with good payment history, you will be eligible to apply for unsecured credit lines.
Home Loans
Even if you have poor personal credit, you can still secure home loans. One of the most significant differences of mortgage loans provided to individuals with strong credit scores and to those with poor credit scores is the interest rate offered. Interest rates are higher for individuals with lower credit scores to help protect the lender against default. Another key difference is that the deposit amount for an individual with poor credit will be higher than with an individual with strong credit. An individual may only be able to secure a home loan with 20%+ down. So, be prepared to place a more significant percentage of the home’s value as a deposit amount if your credit is poor.
Auto Loans
Yes, you can still obtain auto loans even if you have bad credit. In fact, obtaining an automobile loan is generally the easiest form of financing to obtain when a person has bad credit. And, the reason is that there is something that can be repossessed in the event of a loan default, giving the lender more financial security when creating and approving the loan. Similar to a home loan, the borrower will be faced with a larger interest rate for their purchase. Generally a borrower can expect to pay anywhere from 3-10% higher interest rates than another borrower with strong credit scores for the same purchase. In addition to a higher interest rate, borrowers must also place a security deposit or general deposit to complete their purchase. The deposit shows the lender good faith on the part of the borrower and offers the lender added financial security.
Personal Loans
Individuals with bad credit may be seeking personal loans in the form of lines of credit or debt consolidation loans. Personal lines of credit are offered less frequently to borrowers with bad credit scores as there is often nothing of value to secure the loan against. But, when they are offered they are offered at higher interest rates than traditional prime rate loans. Debt consolidation loans can enable borrowers to repay their personal debts back quicker and so they are often approved. These loans are designed to pay off all of the consumer’s debts at a lower rate than they currently are at on average, lowering the borrower’s total monthly payment amount. This lowered amount allows the borrower more flexibility in repayment and can often mean the difference in keeping them in or out of personal bankruptcy.
While consumer loans and other forms of credit are offered at higher interest rates to individuals with poor credit scores, they are still available. And, with good repayment history, these loan types can help the individual to rebuild their credit score over time. In many instances after 1-3 years the individual’s credit score will be improved enough that refinancing could be an option. And, with refinancing, interest rates can be lowered as well as monthly payment amounts. So, patience and solid repayment of consumer debts can work to rebuild a person’s credit score.
Do you want to qualify for a loan but have poor credit? BadCreditPersonalLoans is an information site designed for people with a bad credit rating. It contains hints and tips on bad credit, obtaining the best personal loan interest rates, understanding bank rejections and more.
To Much Credit Card Debt To Handle?
By: Steve Wilson
Many people have run into credit problems by taking on too much credit card debt. Usually this is not something that happens overnight. Rather it is a long process resulting from purchasing small things with your credit cards and only making minimum payments until your credit card balance becomes too much to handle.
This can leave many people feeling overwhelmed and unsure of what to do. If you have a good job you should be able to pay off your credit cards, but if you are like millions of Americans facing tough economic times it may be difficult just to put food on the table. Sound familiar?
Almost everyone has a bad month every once in a while, where it is not possible to pay all their bills. It always seems that something goes wrong at the worst possible time. Perhaps you lost your job or and some type of emergency and used your savings to pay over due bills. Difficult financial times can cause enourmous tress that can ruin lives and families.
In order to avoid bankruptcy or a cycle of your credit card debt spiraling out of control, you need to help yourself first. The first step is to identify what went wrong.
In order to identify what went wrong you would need to have a close look at your budget and spending habits. It is easy to say the bills are slightly behind because some event happened that you could not miss but that isn't the root cause of the problem.
Typically the root cause of money problems is a lack of planning, personal spending weaknesses and a lack of understanding as to what your money is doing for you. Money is a powerful force that must be harnessed to be a useful tool. If you can not harness the power of money you will forever expend all your energies cashing it rather than enjoying it.
So how do we harness the power of money? The first step is to plan your attack by creating a detailed budget. This will take some work but will be more than worth it. Consider the benefits of having a detailed three-month budget.
With a detailed three-month budget you will be able to account for how much you get paid, when bills are due and how much is owed and create a benchmark for determining how well you are doing sticking to your budget. If you use this tool wisely you will know that you have a large bill to pay in four weeks and will be able to budget a small savings program to reduce the amount that must be used in the pay period that the large bill is due. Having to pay less on the pay period of the large bill may mean you are now able to afford a reasonable amount of food.
The next step is to identify your weaknesses. This can be one of the hardest things to do. Many people become used to going out for lunch every couple of days, or out for an evening once a week or perhaps going clothes shopping frequently. These things by themselves are not bad but they may be compounding your financial troubles. Consider buying a cheap lunch once every three days. This may mean spending $5 a day 10 days a month for a total of $50. Would this pay a monthly utility?
The point is not to deny yourself everything but to limit things to a reasonable amount. Perhaps you could reduce purchasing lunches to once a week. This would be a total of $20 a month, $30 less than before. This may not seem like enough of a savings to make a difference until you apply the same logic to other areas of your life such as going out to the theatres. Now the savings may be $60 a month and that could mean the difference between paying a bill in full and hurting your credit rating by falling behind on your bills.
The final area to think about is what is your money doing for you? There are many small things that can be done to help you make your life better. For example, if you are saving $200 this check to put towards a $400 bill on your next pay period, why not put your money into a high interest account that is compounded daily. You may only see $0.15 interest this month but, as you can imagine, if you continue this process you are not only ensuring you are sticking to your budget but you are making a few extra dollars a year for doing so. Every little bit helps.
If you are truly in a situation where your finances are out of control then perhaps you should consider a debt consolidation loan. When you get a debt consolidation loan the lender pays off all of you r current loans and you enter into a repayment schedule with just one lender. This can be a great benefit to you as the amount being repaid monthly will be less than if you where repaying several loans individually and of course being able to meet your credit obligations fully and on time will help your credit rating.
Keep in mind the old saying, look out for the pennies and the dollars will take care of themselves. Most likely it was a bunch of small debts that seemed like pennies that got you into trouble. Further, if you are able to save a few pennies on a regular basis you will find that you have a few dollars to help out if an emergency is to arise.
Steve Wilsonis a contributor for Debt Assistance, A leading pay credit card debtwebsite that provides consumers with credit card debt and tax debt help and information. For more information please visit www.debtassistance.biz/
Many people have run into credit problems by taking on too much credit card debt. Usually this is not something that happens overnight. Rather it is a long process resulting from purchasing small things with your credit cards and only making minimum payments until your credit card balance becomes too much to handle.
This can leave many people feeling overwhelmed and unsure of what to do. If you have a good job you should be able to pay off your credit cards, but if you are like millions of Americans facing tough economic times it may be difficult just to put food on the table. Sound familiar?
Almost everyone has a bad month every once in a while, where it is not possible to pay all their bills. It always seems that something goes wrong at the worst possible time. Perhaps you lost your job or and some type of emergency and used your savings to pay over due bills. Difficult financial times can cause enourmous tress that can ruin lives and families.
In order to avoid bankruptcy or a cycle of your credit card debt spiraling out of control, you need to help yourself first. The first step is to identify what went wrong.
In order to identify what went wrong you would need to have a close look at your budget and spending habits. It is easy to say the bills are slightly behind because some event happened that you could not miss but that isn't the root cause of the problem.
Typically the root cause of money problems is a lack of planning, personal spending weaknesses and a lack of understanding as to what your money is doing for you. Money is a powerful force that must be harnessed to be a useful tool. If you can not harness the power of money you will forever expend all your energies cashing it rather than enjoying it.
So how do we harness the power of money? The first step is to plan your attack by creating a detailed budget. This will take some work but will be more than worth it. Consider the benefits of having a detailed three-month budget.
With a detailed three-month budget you will be able to account for how much you get paid, when bills are due and how much is owed and create a benchmark for determining how well you are doing sticking to your budget. If you use this tool wisely you will know that you have a large bill to pay in four weeks and will be able to budget a small savings program to reduce the amount that must be used in the pay period that the large bill is due. Having to pay less on the pay period of the large bill may mean you are now able to afford a reasonable amount of food.
The next step is to identify your weaknesses. This can be one of the hardest things to do. Many people become used to going out for lunch every couple of days, or out for an evening once a week or perhaps going clothes shopping frequently. These things by themselves are not bad but they may be compounding your financial troubles. Consider buying a cheap lunch once every three days. This may mean spending $5 a day 10 days a month for a total of $50. Would this pay a monthly utility?
The point is not to deny yourself everything but to limit things to a reasonable amount. Perhaps you could reduce purchasing lunches to once a week. This would be a total of $20 a month, $30 less than before. This may not seem like enough of a savings to make a difference until you apply the same logic to other areas of your life such as going out to the theatres. Now the savings may be $60 a month and that could mean the difference between paying a bill in full and hurting your credit rating by falling behind on your bills.
The final area to think about is what is your money doing for you? There are many small things that can be done to help you make your life better. For example, if you are saving $200 this check to put towards a $400 bill on your next pay period, why not put your money into a high interest account that is compounded daily. You may only see $0.15 interest this month but, as you can imagine, if you continue this process you are not only ensuring you are sticking to your budget but you are making a few extra dollars a year for doing so. Every little bit helps.
If you are truly in a situation where your finances are out of control then perhaps you should consider a debt consolidation loan. When you get a debt consolidation loan the lender pays off all of you r current loans and you enter into a repayment schedule with just one lender. This can be a great benefit to you as the amount being repaid monthly will be less than if you where repaying several loans individually and of course being able to meet your credit obligations fully and on time will help your credit rating.
Keep in mind the old saying, look out for the pennies and the dollars will take care of themselves. Most likely it was a bunch of small debts that seemed like pennies that got you into trouble. Further, if you are able to save a few pennies on a regular basis you will find that you have a few dollars to help out if an emergency is to arise.
Steve Wilsonis a contributor for Debt Assistance, A leading pay credit card debtwebsite that provides consumers with credit card debt and tax debt help and information. For more information please visit www.debtassistance.biz/
Tuesday, December 23, 2008
Top Ten Excuses for Avoiding Credit Repair
By: Sara Toliver
You already know (or at least have a pretty good idea) what state your credit is in, or you probably wouldn't be reading this. Chances are, you've already done a bit of research on the web and found several different companies that can repair your credit. If you're ambitious, you may have read up on how to repair your credit yourself. Either way, you haven't actually done anything about your credit yet. Below, you'll find the top 10 reasons that you probably haven't taken any action, as well as reasons why you should. Hopefully, before you're through reading the list you will have stopped reading and started to do something about your credit.
You're Waiting for the "Credit Repair Fairy" to Fix It For You
If this is you, don't feel bad, you're in plenty of good company. There are more people than you might imagine that figure if they just wait it out, their credit will magically improve. The truth is, you can join this group and wait up to seven years for negative items to fall off your credit report (10 years for a bankruptcy), or you can decide to do something about it and be proactive in changing your credit.
You're Not Sure How to Start
Seriously? C'mon, this is an excuse, not a reason. This is the Information Age, and there are countless resources and pages upon pages of information at your fingertips online, or at your local library. The last I heard, library cards were free, so go get one and get to it!
You Think It's Too Hard to Repair Your Credit
Do you honestly think that having bad credit is any easier? And it may not be as hard as you think. At least give it a try, what can it hurt?
You Use Your Spouse's Good Credit Instead of Fixing Yours
This sure seems like a good option at first glance – one of you has good credit, the other doesn't, so just use the good credit and ignore the bad, right? Wrong! What happens in the event of divorce? "Not a possibility", you say? Well, good for you, but you should also consider disability and even death. When you think about, there are so many things that can change the marriage dynamic in a hurry, and you may be left with even worse credit.
You Think You Don't Have Enough Money to Repair Your Credit
A reasonable assumption, to be sure. But it's not typically necessary to have all of the money up front. Payment plans can be negotiated, as well as settlements for lesser amounts. And you may want to consider how much bad credit can cost you. Some studies and figures indicate the monthly amount that can be saved is in excess of $500. Still think you don't have enough money?
You Don't Want to Make the Situation Worse
If you really and truly believe this, chances are your credit is bad enough that it'd take a concerted effort to make it worse. Even if your credit is pretty decent to start with, it's unlikely that you'll do any further damage. Or is it that you think that by ignoring the problem, you're flying under the radar and avoiding the collectors, and to start repairing your credit will only stir things up into a frenzy of harassing calls and letters? Take a good look at number 4 on this list. Once the agreements have been made (and you have to keep up your end) there's no need for the creditors to harass you.
You Don't Know You Have Bad Credit
If that's really true, why are you reading this? Don't get me wrong, in some cases, people don't find out that there's anything negative or inaccurate on their report until they apply for financing and something bad shows up. But now you know. Ignorance is NOT bliss, and pretending that you don't have bad credit sure won't fix it anytime soon. Still need convincing? Go to www.AnnualCreditReport.com and take a look at what's on your reports, it may not be as bad as you think.
You're Not Willing to Sacrifice
Yeah, if you cancel your cable, your 46" plasma TV may become a big dark rectangle in the corner of your living room, but you'll save a few bucks each month that can go towards those payment agreements and settlements. The fact is, good credit doesn't just happen. Improving your credit score and then keeping it there will probably require some changes in your spending habits and lifestyle, but consider what's really in it for you. Not just better credit, but all the perks that go along with it, like money saved, and the possibility of a stronger financial future.
You Don't Have Time to Repair Your Credit
And yet, you find the time to do the things that you want to do, right? I get it. Repairing credit probably isn't at the top of anyone's list of "Awesome Stuff That I Like To Do", but it is important nonetheless. It doesn't have to be a long, drawn-out ordeal. Schedule a little time each week, and it can actually save you time in the long run. Just imagine how easy your monthly bill-paying session would be if you had good credit and weren't trying to figure minimum payments and late fees.
You Don't Want to Do the Work to Repair Your Credit
Do you want to work all the extra shifts and overtime hours to make ends meet each month? I didn't think so. Repairing your credit means saving money, plain and simple. Do you want to work less? Improve your credit. Repairing your credit takes some time, dedication, patience and persistence, but it's worth all the work to free up your time and become financially stable, isn't it?
More information about your credit and the top ten reasons for avoiding credit repair can be found by visiting CreditRepair.com's credit repair blog.
You already know (or at least have a pretty good idea) what state your credit is in, or you probably wouldn't be reading this. Chances are, you've already done a bit of research on the web and found several different companies that can repair your credit. If you're ambitious, you may have read up on how to repair your credit yourself. Either way, you haven't actually done anything about your credit yet. Below, you'll find the top 10 reasons that you probably haven't taken any action, as well as reasons why you should. Hopefully, before you're through reading the list you will have stopped reading and started to do something about your credit.
You're Waiting for the "Credit Repair Fairy" to Fix It For You
If this is you, don't feel bad, you're in plenty of good company. There are more people than you might imagine that figure if they just wait it out, their credit will magically improve. The truth is, you can join this group and wait up to seven years for negative items to fall off your credit report (10 years for a bankruptcy), or you can decide to do something about it and be proactive in changing your credit.
You're Not Sure How to Start
Seriously? C'mon, this is an excuse, not a reason. This is the Information Age, and there are countless resources and pages upon pages of information at your fingertips online, or at your local library. The last I heard, library cards were free, so go get one and get to it!
You Think It's Too Hard to Repair Your Credit
Do you honestly think that having bad credit is any easier? And it may not be as hard as you think. At least give it a try, what can it hurt?
You Use Your Spouse's Good Credit Instead of Fixing Yours
This sure seems like a good option at first glance – one of you has good credit, the other doesn't, so just use the good credit and ignore the bad, right? Wrong! What happens in the event of divorce? "Not a possibility", you say? Well, good for you, but you should also consider disability and even death. When you think about, there are so many things that can change the marriage dynamic in a hurry, and you may be left with even worse credit.
You Think You Don't Have Enough Money to Repair Your Credit
A reasonable assumption, to be sure. But it's not typically necessary to have all of the money up front. Payment plans can be negotiated, as well as settlements for lesser amounts. And you may want to consider how much bad credit can cost you. Some studies and figures indicate the monthly amount that can be saved is in excess of $500. Still think you don't have enough money?
You Don't Want to Make the Situation Worse
If you really and truly believe this, chances are your credit is bad enough that it'd take a concerted effort to make it worse. Even if your credit is pretty decent to start with, it's unlikely that you'll do any further damage. Or is it that you think that by ignoring the problem, you're flying under the radar and avoiding the collectors, and to start repairing your credit will only stir things up into a frenzy of harassing calls and letters? Take a good look at number 4 on this list. Once the agreements have been made (and you have to keep up your end) there's no need for the creditors to harass you.
You Don't Know You Have Bad Credit
If that's really true, why are you reading this? Don't get me wrong, in some cases, people don't find out that there's anything negative or inaccurate on their report until they apply for financing and something bad shows up. But now you know. Ignorance is NOT bliss, and pretending that you don't have bad credit sure won't fix it anytime soon. Still need convincing? Go to www.AnnualCreditReport.com and take a look at what's on your reports, it may not be as bad as you think.
You're Not Willing to Sacrifice
Yeah, if you cancel your cable, your 46" plasma TV may become a big dark rectangle in the corner of your living room, but you'll save a few bucks each month that can go towards those payment agreements and settlements. The fact is, good credit doesn't just happen. Improving your credit score and then keeping it there will probably require some changes in your spending habits and lifestyle, but consider what's really in it for you. Not just better credit, but all the perks that go along with it, like money saved, and the possibility of a stronger financial future.
You Don't Have Time to Repair Your Credit
And yet, you find the time to do the things that you want to do, right? I get it. Repairing credit probably isn't at the top of anyone's list of "Awesome Stuff That I Like To Do", but it is important nonetheless. It doesn't have to be a long, drawn-out ordeal. Schedule a little time each week, and it can actually save you time in the long run. Just imagine how easy your monthly bill-paying session would be if you had good credit and weren't trying to figure minimum payments and late fees.
You Don't Want to Do the Work to Repair Your Credit
Do you want to work all the extra shifts and overtime hours to make ends meet each month? I didn't think so. Repairing your credit means saving money, plain and simple. Do you want to work less? Improve your credit. Repairing your credit takes some time, dedication, patience and persistence, but it's worth all the work to free up your time and become financially stable, isn't it?
More information about your credit and the top ten reasons for avoiding credit repair can be found by visiting CreditRepair.com's credit repair blog.
How Will Consumer Credit Counseling Services Eliminate My Debt?
By: Abby Reid
Participating in a debt management plan can initially seem uncomfortable, new or intimidating. Even though trained credit counselors help financially-troubled families and individuals avoid bankruptcy, changing your attitude toward money can be somewhat scary. If you’ve taken a step toward financial freedom by enrolling in a bankruptcy education course, you may be curious as to how your current financial situation will change. Many people who enlist the aid of a consumer credit counseling service may wonder, what happens next?
Be patient. Accept that changes to your financial situation may come slowly. You didn’t get into debt overnight. It probably took many months or years to dig yourself into an economic ditch. It may take even longer to reach financial stability. Don’t become discouraged or upset if your progress is not immediately apparent. Significant change takes time. Celebrate small accomplishments during your debt repayment plan. Remember that your goal is to avoid digging yourself into further debt – even if it is a slow process.
Research bankruptcy and debt management. You’ve already taken a step in the right direction – you’ve obtained the financial help of a free consumer credit counseling service. Make sure that you listen to your counselor and closely follow the debt management plan and economic advice that he or she provides. Most counselors have helped an endless number of people who are facing the same financial difficulties as you. Sign up for e-mail newsletters that offer money-saving and budgeting advice. Check out a book at the library on how to create a budget and increase your assets. Look into free online debt management and bankruptcy courses. You will learn invaluable information that can help you make the most of your consumer credit counseling services.
Look for ways to increase your income outside of your regular job. If you feel that you’ve earned it, ask your boss for a raise. Get a second job. Sell items online. There are many different ways to make money. Increasing your take-home pay can help you get out of debt much faster. You do not have to work extra hours permanently, just until you are able to put some money toward your debt management plan.
Reduce your spending. Many consumer credit counseling services suggest that you try to temporarily live below your means. It will make a considerable difference in your overall debt management plan. Learning to live on less money can also help you develop sensible spending habits that will help you avoid bankruptcy in the future.
Change your lifestyle. Become an expert at saving money and being frugal. Rent videos and books from the library. Dine out at restaurants less often. Shop at thrift stores or discount retail chains. Buy foods in bulk. Don’t purchase anything that isn’t necessary. It may not be fun, but it will help you put more money toward your debt management plan.
Advantage CCCS is a free consumer online credit counseling service that helps families and individuals avoid bankruptcy and develop a debt management plan.
Participating in a debt management plan can initially seem uncomfortable, new or intimidating. Even though trained credit counselors help financially-troubled families and individuals avoid bankruptcy, changing your attitude toward money can be somewhat scary. If you’ve taken a step toward financial freedom by enrolling in a bankruptcy education course, you may be curious as to how your current financial situation will change. Many people who enlist the aid of a consumer credit counseling service may wonder, what happens next?
Be patient. Accept that changes to your financial situation may come slowly. You didn’t get into debt overnight. It probably took many months or years to dig yourself into an economic ditch. It may take even longer to reach financial stability. Don’t become discouraged or upset if your progress is not immediately apparent. Significant change takes time. Celebrate small accomplishments during your debt repayment plan. Remember that your goal is to avoid digging yourself into further debt – even if it is a slow process.
Research bankruptcy and debt management. You’ve already taken a step in the right direction – you’ve obtained the financial help of a free consumer credit counseling service. Make sure that you listen to your counselor and closely follow the debt management plan and economic advice that he or she provides. Most counselors have helped an endless number of people who are facing the same financial difficulties as you. Sign up for e-mail newsletters that offer money-saving and budgeting advice. Check out a book at the library on how to create a budget and increase your assets. Look into free online debt management and bankruptcy courses. You will learn invaluable information that can help you make the most of your consumer credit counseling services.
Look for ways to increase your income outside of your regular job. If you feel that you’ve earned it, ask your boss for a raise. Get a second job. Sell items online. There are many different ways to make money. Increasing your take-home pay can help you get out of debt much faster. You do not have to work extra hours permanently, just until you are able to put some money toward your debt management plan.
Reduce your spending. Many consumer credit counseling services suggest that you try to temporarily live below your means. It will make a considerable difference in your overall debt management plan. Learning to live on less money can also help you develop sensible spending habits that will help you avoid bankruptcy in the future.
Change your lifestyle. Become an expert at saving money and being frugal. Rent videos and books from the library. Dine out at restaurants less often. Shop at thrift stores or discount retail chains. Buy foods in bulk. Don’t purchase anything that isn’t necessary. It may not be fun, but it will help you put more money toward your debt management plan.
Advantage CCCS is a free consumer online credit counseling service that helps families and individuals avoid bankruptcy and develop a debt management plan.
Monday, December 22, 2008
Credit Repair is More Important Than Ever
By: Stuart Hunter
More than ever before, credit repair is becoming a necessity for people looking to get into a home or make other purchases on credit. Because of the current credit crunch, lenders are being forced into lending only to the most qualified recipients meaning that in some cases, a 700 credit score simply isn't good enough.
As home prices continue to fall, those with excellent credit are being presented with the opportunity to take advantage of home bargains. But unlike previous years where people with sub-prime credit scores could still get into homes, albeit at a higher interest rate or using a non-conventional mortgage, people with low or in some cases average credit scores are being left out.
Looking for a way to more quickly raise their credit score than simply waiting for it to improve on its own, many of these people are taking advantage of the many credit repair resources and services available to them. By actively working to remove bad credit from their credit reports while also effectively managing the addition and reporting of good credit, these people are finding it possible to repair their credit reports and qualify for new loans in a matter of months instead of years.
Repairing your credit is something you can do on your own at very little monetary cost. It will, however, likely take quite a bit of time to learn the best methods for effectively working to improve your credit. For someone new to the credit repair game, you may be able to see positive results in little over a month by researching best practice for credit bureau disputes and putting those practices into effect. Realizing more dramatic results may then require significantly more time researching, frequenting credit repair forums, and working the system.
For those people who do not have the time or desire to learn how to repair their credit themselves, there are a number of reputable credit repair companies who will, for a fee, manage the process for you. These companies typically provide credit bureau disputes, creditor interventions, and credit score coaching.
As is the case with any services industry, and especially so in one that deals with something as complicated as the credit reporting system, there are those who look to take advantage of people. These credit repair scams can usually be identified by traits such as accepting large upfront payments, not informing you of your right to repair your credit on your own, or guaranteeing to give you a great credit score. The "if it sounds to good to be true, it is" adage is a good starting point when looking at a credit repair offer, but for a more detailed description of what to look for in a credit repair scam, the Credit Repair Organizations Act is a good resource as it is the federal law regulating all credit repair organizations.
Whether you choose to work on repairing your own credit, to enlist the help of a credit repair company, or opt for a blended approach where you start with the easy stuff and then use a professional to do the heavy lifting, credit repair may be the tool you need to take full advantage of the credit crisis.
For 17 years, Lexington Law's credit repair services have been helping people legally dispute the questionable negative items on their credit reports. As the Trusted Leaders in Credit Repair, Lexington Law has helped clients remove millions of negative items from their credit reports.
More than ever before, credit repair is becoming a necessity for people looking to get into a home or make other purchases on credit. Because of the current credit crunch, lenders are being forced into lending only to the most qualified recipients meaning that in some cases, a 700 credit score simply isn't good enough.
As home prices continue to fall, those with excellent credit are being presented with the opportunity to take advantage of home bargains. But unlike previous years where people with sub-prime credit scores could still get into homes, albeit at a higher interest rate or using a non-conventional mortgage, people with low or in some cases average credit scores are being left out.
Looking for a way to more quickly raise their credit score than simply waiting for it to improve on its own, many of these people are taking advantage of the many credit repair resources and services available to them. By actively working to remove bad credit from their credit reports while also effectively managing the addition and reporting of good credit, these people are finding it possible to repair their credit reports and qualify for new loans in a matter of months instead of years.
Repairing your credit is something you can do on your own at very little monetary cost. It will, however, likely take quite a bit of time to learn the best methods for effectively working to improve your credit. For someone new to the credit repair game, you may be able to see positive results in little over a month by researching best practice for credit bureau disputes and putting those practices into effect. Realizing more dramatic results may then require significantly more time researching, frequenting credit repair forums, and working the system.
For those people who do not have the time or desire to learn how to repair their credit themselves, there are a number of reputable credit repair companies who will, for a fee, manage the process for you. These companies typically provide credit bureau disputes, creditor interventions, and credit score coaching.
As is the case with any services industry, and especially so in one that deals with something as complicated as the credit reporting system, there are those who look to take advantage of people. These credit repair scams can usually be identified by traits such as accepting large upfront payments, not informing you of your right to repair your credit on your own, or guaranteeing to give you a great credit score. The "if it sounds to good to be true, it is" adage is a good starting point when looking at a credit repair offer, but for a more detailed description of what to look for in a credit repair scam, the Credit Repair Organizations Act is a good resource as it is the federal law regulating all credit repair organizations.
Whether you choose to work on repairing your own credit, to enlist the help of a credit repair company, or opt for a blended approach where you start with the easy stuff and then use a professional to do the heavy lifting, credit repair may be the tool you need to take full advantage of the credit crisis.
For 17 years, Lexington Law's credit repair services have been helping people legally dispute the questionable negative items on their credit reports. As the Trusted Leaders in Credit Repair, Lexington Law has helped clients remove millions of negative items from their credit reports.
Four Ways to Lower Credit Card Interest Rates
By: Sara Toliver
Credit card debt is the ball and chain that keeps many people from being able to achieve their financial goals. High credit card balances coupled with high interest rates make for a seemingly never-ending schedule of monthly payments that do little to decrease the amount owed and ensure that for years to come, your hard earned money will continue to pad the profits of the credit card companies instead of getting put to use making your life more enjoyable.
Lowering the interest rates on your credit cards is the key to getting out from under your credit card debt. By lowering your rates, you can significantly lower your monthly payments allowing you to pay off your credit card debt in a fraction of the time it would take even if you do not increase your monthly payment amount. This could amount to a savings of many thousands of dollars.
Below are four possible methods you may be able to use to lower your credit card interest rates.
Consolidate Credit Card Debt
Credit cards typically carry much higher interest rates than other types of loans. If you have equity in your home, you may be able to pay off your cards by refinancing your mortgage and including the credit card debt in the new loan. You will still have the same amount of debt, but now your credit card debt will be included in your mortgage loan, which typically has a much lower interest rate.
Transfer Balances to Lower Interest Rate Credit Cards
If you have multiple credit cards, it makes sense to move your credit card balances to cards with lower interest rates. Just be careful when doing so that you are not simply transferring your debt to avoid making payments, especially when this involves opening new credit card accounts.
Improve Your Credit Score
The interest rates you qualify for are dependent on your credit score. By increasing your score, you may be able to get approved for lower interest rate loans and other credit accounts. This may enable you to qualify for a debt consolidation loan, a lower interest rate mortgage refinance, or even to get your current credit card providers to voluntarily lower your interest rates. Credit repair services exist to help you with this or you can work to repair your credit on your own.
Get Help from a Debt Counseling Company
If you are not able to use any of the above methods to take control of your credit cards on your own and you are facing the prospect of falling behind on your credit card payments, then you may be best served by working with a debt counseling company. They will work with your credit card providers to negotiate lower interest rates and may be able to help you avoid having to settle your debts (a process that severely damages your credit score) or declare bankruptcy.
Credit Repair .com provides a wealth of information you can use to improve your credit health. From managing your credit card debt to repairing your credit to finding the best loans, Credit Repair .com has the resources you need.
Credit card debt is the ball and chain that keeps many people from being able to achieve their financial goals. High credit card balances coupled with high interest rates make for a seemingly never-ending schedule of monthly payments that do little to decrease the amount owed and ensure that for years to come, your hard earned money will continue to pad the profits of the credit card companies instead of getting put to use making your life more enjoyable.
Lowering the interest rates on your credit cards is the key to getting out from under your credit card debt. By lowering your rates, you can significantly lower your monthly payments allowing you to pay off your credit card debt in a fraction of the time it would take even if you do not increase your monthly payment amount. This could amount to a savings of many thousands of dollars.
Below are four possible methods you may be able to use to lower your credit card interest rates.
Consolidate Credit Card Debt
Credit cards typically carry much higher interest rates than other types of loans. If you have equity in your home, you may be able to pay off your cards by refinancing your mortgage and including the credit card debt in the new loan. You will still have the same amount of debt, but now your credit card debt will be included in your mortgage loan, which typically has a much lower interest rate.
Transfer Balances to Lower Interest Rate Credit Cards
If you have multiple credit cards, it makes sense to move your credit card balances to cards with lower interest rates. Just be careful when doing so that you are not simply transferring your debt to avoid making payments, especially when this involves opening new credit card accounts.
Improve Your Credit Score
The interest rates you qualify for are dependent on your credit score. By increasing your score, you may be able to get approved for lower interest rate loans and other credit accounts. This may enable you to qualify for a debt consolidation loan, a lower interest rate mortgage refinance, or even to get your current credit card providers to voluntarily lower your interest rates. Credit repair services exist to help you with this or you can work to repair your credit on your own.
Get Help from a Debt Counseling Company
If you are not able to use any of the above methods to take control of your credit cards on your own and you are facing the prospect of falling behind on your credit card payments, then you may be best served by working with a debt counseling company. They will work with your credit card providers to negotiate lower interest rates and may be able to help you avoid having to settle your debts (a process that severely damages your credit score) or declare bankruptcy.
Credit Repair .com provides a wealth of information you can use to improve your credit health. From managing your credit card debt to repairing your credit to finding the best loans, Credit Repair .com has the resources you need.
Sunday, December 21, 2008
How The Credit Crunch Will Affect People With Debt Problems
By: Martin Sumner
By now it's a good bet that we've all heard about the global credit crunch to some extent, even if we've just glanced away in boredom when a story about it came onto the television news bulletins. This reaction is perfectly understandable - after all, who outside the rarefied world of high finance really cares about or understands such concepts as Structured Investment Vehicles and other obscurities? And who cares if banks are taking quite a financial hit, given their huge profit levels over the last decade or so?
The unfortunate reality is that the credit crunch will affect most of us in ways experts have not yet agreed on, but one large group of people are going to see the impact sooner rather than later: that is, people with significant personal debts. How will these millions of indebted consumers be affected?
If we can take one positive, it's merely that as banks tighten their belts it's going to be come more and more difficult to get deeper into debt, which may prevent severe problems occurring in the future for people whose debts are substantial but not yet dangerously high. Seeing this as a real benefit though is maybe clutching at straws, as in almost every other respect the outlook is negative.
Despite recent cuts in base interest rates, as central banks try to stimulate economic activity with cheaper credit, not all banks are passing these rate cuts on to the consumer. Indeed, many people on flexible rate borrowing are likely to see their interest rates hiked as banks try to recover the missing profits they're faced with. This will make it harder to meet monthly repayments, and will increase the length of time it takes to clear a debt if you stick to the same payment schedule.
With worries about their exposures to bad debt growing, banks are also less likely to take a kindly view of people experiencing problems, and are in many cases going to be a lot less flexible than in recent years. They may try to recover what debt they can by whatever means they can, rather than coming to an agreement over a new repayment plan.
There are also the issues of economic downturn loading to lower incomes, and falling house prices meaning secured lending is a lot more risky for both borrower and lender, and so more difficult to arrange.
It's going to be harder to get secured finance, especially in cases of poor credit ratings or high loan to value levels, and this will have an impact on debt consolidation: it may not now be possible to borrow enough cash at a low enough rate to make consolidation work well.
All this sounds plenty worrying for people struggling with debt, but that doesn't mean you should ignore it and hope the high flying financiers will work a miracle and solve the problems, as this is looking more and more unlikely. If you're experiencing debt problems now, it's an extremely sensible idea to immediately look at ways of solving them through consolidation or other means.
Otherwise, you may well find that it's too late once the banks uncover the true extent of the mess that's been created.
Martin writes for Debt Sorter, who are experts in debt reduction by management, IVA, or consolidation loans.
By now it's a good bet that we've all heard about the global credit crunch to some extent, even if we've just glanced away in boredom when a story about it came onto the television news bulletins. This reaction is perfectly understandable - after all, who outside the rarefied world of high finance really cares about or understands such concepts as Structured Investment Vehicles and other obscurities? And who cares if banks are taking quite a financial hit, given their huge profit levels over the last decade or so?
The unfortunate reality is that the credit crunch will affect most of us in ways experts have not yet agreed on, but one large group of people are going to see the impact sooner rather than later: that is, people with significant personal debts. How will these millions of indebted consumers be affected?
If we can take one positive, it's merely that as banks tighten their belts it's going to be come more and more difficult to get deeper into debt, which may prevent severe problems occurring in the future for people whose debts are substantial but not yet dangerously high. Seeing this as a real benefit though is maybe clutching at straws, as in almost every other respect the outlook is negative.
Despite recent cuts in base interest rates, as central banks try to stimulate economic activity with cheaper credit, not all banks are passing these rate cuts on to the consumer. Indeed, many people on flexible rate borrowing are likely to see their interest rates hiked as banks try to recover the missing profits they're faced with. This will make it harder to meet monthly repayments, and will increase the length of time it takes to clear a debt if you stick to the same payment schedule.
With worries about their exposures to bad debt growing, banks are also less likely to take a kindly view of people experiencing problems, and are in many cases going to be a lot less flexible than in recent years. They may try to recover what debt they can by whatever means they can, rather than coming to an agreement over a new repayment plan.
There are also the issues of economic downturn loading to lower incomes, and falling house prices meaning secured lending is a lot more risky for both borrower and lender, and so more difficult to arrange.
It's going to be harder to get secured finance, especially in cases of poor credit ratings or high loan to value levels, and this will have an impact on debt consolidation: it may not now be possible to borrow enough cash at a low enough rate to make consolidation work well.
All this sounds plenty worrying for people struggling with debt, but that doesn't mean you should ignore it and hope the high flying financiers will work a miracle and solve the problems, as this is looking more and more unlikely. If you're experiencing debt problems now, it's an extremely sensible idea to immediately look at ways of solving them through consolidation or other means.
Otherwise, you may well find that it's too late once the banks uncover the true extent of the mess that's been created.
Martin writes for Debt Sorter, who are experts in debt reduction by management, IVA, or consolidation loans.
Saturday, December 20, 2008
The facts behind Online Debt Consolidation
By: Ray Shak
There are a lot of Online Debt Consolidation packages that are being offered and that makes it harder to choose from which the best is. On choosing for Online Debt Consolidation always reflect on what is your need and concerns, specifically, your financial situation. There are four primary concerns that most consumers must know before getting an Online Debt Consolidation. Here they are as follows
: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the consolidation program.
Aside from that there are a variety of Online Debt Consolidation options to choose from. For example, credit counseling, debt negotiation/debt settlement, a debt consolidation loan, and many more. Therefore, it is important to fully understand each option so you can come up with best decision.
Now, let’s discuss this, one by one.
Credit Card counseling is the very common way of Online Debt Consolidation. Many companies offer credit card counseling that could help you lower your monthly interests. As a consumer, it is important for you to understand that In a credit card counseling program, you are still going to pay one-hundred percent of your debts but only with lower monthly payments. Most of the time, online counseling programs are on for five years. Most of credit counseling programs do not impact your FICO score, however being enrolled in it, it will show up your credit report and regrettably many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy – or using a third part to arrange your debts.
Next is Debt Settlement or debt negotiation which is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. This kind of Online Debt Consolidation usually runs for three years. Bear in mind, that during the years that you are using this option, you are not actually paying your creditors. Thus, it will impact negatively on your credit rating. However, on the positive note, using Debt settlement is usually the fastest and cheapest way to set your self free from debts while having low monthly payments.
Next to discuss is Debt Consolidation Loan, that as for many people, this is the very first time that they think when getting an Online Debt Consolidation. Basically, this means a second home loan or home refinancing. You will be exchanging one loan for another. However, be aware that shifting unsecured debt from secured debt can be creating a fickle situation. Why? Simply because if you can’t afford the payment for the new mortgage; it’s also like taking yourself to foreclosure. For debt consolidation loan most of mortgages are 30 year loan and that means that the total cost and time to be free from debt could be very high but of course, along this, monthly payment could be very low.
Let us always remember that even though there are many forms of online debt consolidation, still the one who holds good to prefect credit has the highest percentage of getting successful consolidations while the ones with the not so good record could have a hard time doing so. As a good and effective piece of advice that I can give you, learn to research thoroughly and see all the positive and negative things.
Ray is the Owner & Developer of ReleaseMyDebt.com, A website which connects all of the financial industry together. May it be to network, share websites, videos, get questions answered, and much more. Credit Repair Advice
There are a lot of Online Debt Consolidation packages that are being offered and that makes it harder to choose from which the best is. On choosing for Online Debt Consolidation always reflect on what is your need and concerns, specifically, your financial situation. There are four primary concerns that most consumers must know before getting an Online Debt Consolidation. Here they are as follows
: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the consolidation program.
Aside from that there are a variety of Online Debt Consolidation options to choose from. For example, credit counseling, debt negotiation/debt settlement, a debt consolidation loan, and many more. Therefore, it is important to fully understand each option so you can come up with best decision.
Now, let’s discuss this, one by one.
Credit Card counseling is the very common way of Online Debt Consolidation. Many companies offer credit card counseling that could help you lower your monthly interests. As a consumer, it is important for you to understand that In a credit card counseling program, you are still going to pay one-hundred percent of your debts but only with lower monthly payments. Most of the time, online counseling programs are on for five years. Most of credit counseling programs do not impact your FICO score, however being enrolled in it, it will show up your credit report and regrettably many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy – or using a third part to arrange your debts.
Next is Debt Settlement or debt negotiation which is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. This kind of Online Debt Consolidation usually runs for three years. Bear in mind, that during the years that you are using this option, you are not actually paying your creditors. Thus, it will impact negatively on your credit rating. However, on the positive note, using Debt settlement is usually the fastest and cheapest way to set your self free from debts while having low monthly payments.
Next to discuss is Debt Consolidation Loan, that as for many people, this is the very first time that they think when getting an Online Debt Consolidation. Basically, this means a second home loan or home refinancing. You will be exchanging one loan for another. However, be aware that shifting unsecured debt from secured debt can be creating a fickle situation. Why? Simply because if you can’t afford the payment for the new mortgage; it’s also like taking yourself to foreclosure. For debt consolidation loan most of mortgages are 30 year loan and that means that the total cost and time to be free from debt could be very high but of course, along this, monthly payment could be very low.
Let us always remember that even though there are many forms of online debt consolidation, still the one who holds good to prefect credit has the highest percentage of getting successful consolidations while the ones with the not so good record could have a hard time doing so. As a good and effective piece of advice that I can give you, learn to research thoroughly and see all the positive and negative things.
Ray is the Owner & Developer of ReleaseMyDebt.com, A website which connects all of the financial industry together. May it be to network, share websites, videos, get questions answered, and much more. Credit Repair Advice
How do you seek assistance to combat debt problems?
By: Kirthy Shetty
Seeking debt advice or help? If you feel you could do with some debt advice in UK, look no further. If you are contemplating on consolidation of debts, seeking debt management advice or you just need some free advice. Online advisors can help you alleviate from your financial quagmire.
Debt troubles are a thing of the past – seek help!
Do not remain in knee deep debt for long. If you have developed any kind of debt ranging from business debts, tax debts, gambling debts etc all you need to do is extend your hand for financial assistance. Debt advice will help you find areas of savings and recommend services like debt management plans or debt consolidation loans.
Why do you need expert’s advice?
• Sort your debts
• Simple, practical solutions for your debt worries
• Definitive guide to a debt free future
Facts about debtors in UK:
• Roughly around 6 million families in the UK are struggling to make repayments towards their debt.
• Citizens Advice reported that they have seen a 44% increase in the number of people seeking debt advice.
When surrounded by multiple loans and astronomical bills you must consider debt experts. If not you will have to face the repercussions. Finding debt consolidation advice specific to your circumstances might not be hard after all! Debt consolidation is an increasingly popular debt management tool; its principle is relatively simple as well. You simply take out one low cost debt consolidation loan to pay off all your creditors, which leaves you with the task of handling just one loan repayment amount per month and this at a manageable rate suited to your financial state.
Professionals who have been providing free debt advice in UK for all kinds of debt related problems will work hard to give you the best advice which will help you overcome all your debt worries and fulfill all your dreams. You could work out a total sum of your debt accounts, come up with an average APR you are being charged, analyze and work out an income-expenditure budget before you seek debt consolidation advice.
Consider all debt solutions and then choose the best one for you. If you are comfortable with clubbing your debts go for debt consolidation. If you are muddled up with your choices, then you know what next to do. Seek help from online debt advisors and execute the one which is most feasible to you.
For more information visit on: debt advice help
Seeking debt advice or help? If you feel you could do with some debt advice in UK, look no further. If you are contemplating on consolidation of debts, seeking debt management advice or you just need some free advice. Online advisors can help you alleviate from your financial quagmire.
Debt troubles are a thing of the past – seek help!
Do not remain in knee deep debt for long. If you have developed any kind of debt ranging from business debts, tax debts, gambling debts etc all you need to do is extend your hand for financial assistance. Debt advice will help you find areas of savings and recommend services like debt management plans or debt consolidation loans.
Why do you need expert’s advice?
• Sort your debts
• Simple, practical solutions for your debt worries
• Definitive guide to a debt free future
Facts about debtors in UK:
• Roughly around 6 million families in the UK are struggling to make repayments towards their debt.
• Citizens Advice reported that they have seen a 44% increase in the number of people seeking debt advice.
When surrounded by multiple loans and astronomical bills you must consider debt experts. If not you will have to face the repercussions. Finding debt consolidation advice specific to your circumstances might not be hard after all! Debt consolidation is an increasingly popular debt management tool; its principle is relatively simple as well. You simply take out one low cost debt consolidation loan to pay off all your creditors, which leaves you with the task of handling just one loan repayment amount per month and this at a manageable rate suited to your financial state.
Professionals who have been providing free debt advice in UK for all kinds of debt related problems will work hard to give you the best advice which will help you overcome all your debt worries and fulfill all your dreams. You could work out a total sum of your debt accounts, come up with an average APR you are being charged, analyze and work out an income-expenditure budget before you seek debt consolidation advice.
Consider all debt solutions and then choose the best one for you. If you are comfortable with clubbing your debts go for debt consolidation. If you are muddled up with your choices, then you know what next to do. Seek help from online debt advisors and execute the one which is most feasible to you.
For more information visit on: debt advice help
Fastest Free Way to Debt Relief
By: Dennis Alexander
If you are attempting to pay off your debts by sending slightly more than the minimum payments to your creditors, you probably noticed that your balances are not dropping as fast as you wanted. If you have such feeling that your debt balances are not reducing according to your expectation and your current finance situation allowing you to pay slightly more than the minimum amount. Did you know that HOW you pay your debts can affect how soon you will finish paying them off - even if you keep paying the same amount for debt every month? It's called Debt Staking method. When it comes to bankruptcy filling, it should be your last option. Although bankruptcy filling can gives you a fast debt relief, its consequences follow you for years.
It's not always the easiest to figure out the mathematics, but there are three steps to quicker debt relief.
STEP ONE - Create a list.
List your smallest debts first followed by your largest high-interest debts (credit card) and then your largest low-interest debts (Lines of credit and taxes).
Plan to pay the minimums on all debts with these goals in mind:
STEP TWO - Small bills first.
They may not be the highest interest, but every bill that you are paying some interest on means you are usually only paying minimal amounts on the principal. Multiple debts are also a sure way to bring your spirits down. Paying off small debts first is a quick way to start checking them off - and freeing your mind.
STEP THREE - Move the payments along.
When one debt is paid add the funds to the next debt. For example, say you're making $75 payments to a small debt. When the debt is cleared add the $75 to the next debt on your list. If the next debt had a minimum payment of $100, you will now pay $175 until it is paid off. When that one is finished, take the $175 and add it to the next payment and so on.
STEP FOUR - Save the cash!
Don't forget that when your debts are cleared you have set yourself up for a better financial future. The best way to take advantage of your new situation is to use all the money you were spending on debts and start investing or saving it every month.
With this strategy your debts will clear faster meaning you will pay less interest, you will see progress as you clear small debts first, and you will not be tempted to use the funds for personal use instead of debt repayment.
By focusing all your extra money to one debt at a time and targeting on the highest interest rate, you are erasing your most expensive liability faster. As each debt gets paid, you apply the money that uses to pay the first debt to the 2nd highest interest debt which has the lower interest rate as compare to the first one. Hence, the 2nd debt will be wiped out faster than the first one. And you continue to repeat the same process for the next and following debt, you will notice that each successive debt is wiped out faster than the one before. You will be happily surprised at how expedient this process is!
Dennis Alexander - leading consultant for employer group and individual/family health insurance. For any additional information and assistance with all of your health insurance needs visit our websites bad credit personal loans, bad credit credit cards and health insurance, auto insurance, home insurance
If you are attempting to pay off your debts by sending slightly more than the minimum payments to your creditors, you probably noticed that your balances are not dropping as fast as you wanted. If you have such feeling that your debt balances are not reducing according to your expectation and your current finance situation allowing you to pay slightly more than the minimum amount. Did you know that HOW you pay your debts can affect how soon you will finish paying them off - even if you keep paying the same amount for debt every month? It's called Debt Staking method. When it comes to bankruptcy filling, it should be your last option. Although bankruptcy filling can gives you a fast debt relief, its consequences follow you for years.
It's not always the easiest to figure out the mathematics, but there are three steps to quicker debt relief.
STEP ONE - Create a list.
List your smallest debts first followed by your largest high-interest debts (credit card) and then your largest low-interest debts (Lines of credit and taxes).
Plan to pay the minimums on all debts with these goals in mind:
STEP TWO - Small bills first.
They may not be the highest interest, but every bill that you are paying some interest on means you are usually only paying minimal amounts on the principal. Multiple debts are also a sure way to bring your spirits down. Paying off small debts first is a quick way to start checking them off - and freeing your mind.
STEP THREE - Move the payments along.
When one debt is paid add the funds to the next debt. For example, say you're making $75 payments to a small debt. When the debt is cleared add the $75 to the next debt on your list. If the next debt had a minimum payment of $100, you will now pay $175 until it is paid off. When that one is finished, take the $175 and add it to the next payment and so on.
STEP FOUR - Save the cash!
Don't forget that when your debts are cleared you have set yourself up for a better financial future. The best way to take advantage of your new situation is to use all the money you were spending on debts and start investing or saving it every month.
With this strategy your debts will clear faster meaning you will pay less interest, you will see progress as you clear small debts first, and you will not be tempted to use the funds for personal use instead of debt repayment.
By focusing all your extra money to one debt at a time and targeting on the highest interest rate, you are erasing your most expensive liability faster. As each debt gets paid, you apply the money that uses to pay the first debt to the 2nd highest interest debt which has the lower interest rate as compare to the first one. Hence, the 2nd debt will be wiped out faster than the first one. And you continue to repeat the same process for the next and following debt, you will notice that each successive debt is wiped out faster than the one before. You will be happily surprised at how expedient this process is!
Dennis Alexander - leading consultant for employer group and individual/family health insurance. For any additional information and assistance with all of your health insurance needs visit our websites bad credit personal loans, bad credit credit cards and health insurance, auto insurance, home insurance
Friday, December 19, 2008
Mortgage Loan, Debt Loose, Debt Free, Debt Consolidation, Debt management
By: Sanjana George
Life most of the times, offers quite a few surprise expenses. Sometimes, it may be in the form of a wedding, an emergency surgery, an accident and so on. We may not always have the financial strength to tide over such situations. Which is why we can turn to moneylenders, banks and other sources when it comes to taking loans. However the ease with which one can take a loan nowadays often has a disadvantage too. Getting such easy money often tempts people to take more than one loan within a short time. Then there comes a time, when paying back all the loans becomes a hassle especially when property or one’s house has been put up as the security.
The usual process one encounters when availing a loan is that a security is put up, the money given and then the loan needs to be repaid within a specific amount of time. However, when you have more than one loan on your hand, paying back many installments on a monthly basis would be very heavy on your wallet and also, leave you not much else for your monthly expenditures. Which is why there is now an easier option to avail of. You could now consolidate all your loans into one single whole debt, which would require a lower monthly payment and have a longer repayment period. This is a wonderful way out of all those heavy bills and hassles with creditors every month. However, this also means a lot of negotiations and time that needs to be spent with all your creditors especially if they are more than one party.
To get all your debts consolidated into one loan, you would also need to prove that your credit card debts are not high. It is important to have only one or two credit cards at this point of time, and preferably with a low rate of interest so that it is not heavy on your pocket. When you have many credit cards from different banks and lenders, the chances of spending twice as much is also there. Although this has now become a plastic world, where people find it much easier to purchase using credit cards, it has its own disadvantages. Firstly, one is not always aware of how much one is actually spending. Secondly, there are chances that your card could also be misused if you are not careful. Simultaneously, having a good credit score is also important towards debt consolidation. If your credit report reveals that you have a lot of unpaid bills on your hands, and you are not regular with your payments, it would reflect badly on you. In fact most banks always make it a point to look at credit reports to help them understand customers better, as credit reports also give other information such as the number of loans you have on your hands. This would also be a good time to cut down on major expenses such as taking a holiday or buying an expensive car.
There are many good companies, which are willing to help negotiate on your behalf with your creditors. They would charge a small fee after consolidating your debts for you. However, it is important to remember not to take on more loans until your existing debts have been repaid.
Sanjana George John is a professional author onconsolidate debt, debt management, debt consolidation loan, debt settlement and reduction
Life most of the times, offers quite a few surprise expenses. Sometimes, it may be in the form of a wedding, an emergency surgery, an accident and so on. We may not always have the financial strength to tide over such situations. Which is why we can turn to moneylenders, banks and other sources when it comes to taking loans. However the ease with which one can take a loan nowadays often has a disadvantage too. Getting such easy money often tempts people to take more than one loan within a short time. Then there comes a time, when paying back all the loans becomes a hassle especially when property or one’s house has been put up as the security.
The usual process one encounters when availing a loan is that a security is put up, the money given and then the loan needs to be repaid within a specific amount of time. However, when you have more than one loan on your hand, paying back many installments on a monthly basis would be very heavy on your wallet and also, leave you not much else for your monthly expenditures. Which is why there is now an easier option to avail of. You could now consolidate all your loans into one single whole debt, which would require a lower monthly payment and have a longer repayment period. This is a wonderful way out of all those heavy bills and hassles with creditors every month. However, this also means a lot of negotiations and time that needs to be spent with all your creditors especially if they are more than one party.
To get all your debts consolidated into one loan, you would also need to prove that your credit card debts are not high. It is important to have only one or two credit cards at this point of time, and preferably with a low rate of interest so that it is not heavy on your pocket. When you have many credit cards from different banks and lenders, the chances of spending twice as much is also there. Although this has now become a plastic world, where people find it much easier to purchase using credit cards, it has its own disadvantages. Firstly, one is not always aware of how much one is actually spending. Secondly, there are chances that your card could also be misused if you are not careful. Simultaneously, having a good credit score is also important towards debt consolidation. If your credit report reveals that you have a lot of unpaid bills on your hands, and you are not regular with your payments, it would reflect badly on you. In fact most banks always make it a point to look at credit reports to help them understand customers better, as credit reports also give other information such as the number of loans you have on your hands. This would also be a good time to cut down on major expenses such as taking a holiday or buying an expensive car.
There are many good companies, which are willing to help negotiate on your behalf with your creditors. They would charge a small fee after consolidating your debts for you. However, it is important to remember not to take on more loans until your existing debts have been repaid.
Sanjana George John is a professional author onconsolidate debt, debt management, debt consolidation loan, debt settlement and reduction
What is Debt Management
By: Ronald Clark
Debt Management is a very simple financial concept hire a qualified Debt Counselor or certified Debt Management Company to pay your unsecured debt.
The Debt Management Company you hire will relieve and eventually reduce your debt by managing your assets effectively and negotiating with your creditor regarding interest rates and monthly payments. This is not a loan so you are no obligated by any contract or other binding paperwork associated with a Debt Management Plan.
When choosing a Debt Management Company you want to make sure and beware of several things. First, make sure the company registered with the Better Business Bureau (BBB) and has been rewarded the "Reliability Program Online Seal." Second, beware of any companies who want to charge more than $50.00 a month to open your account and work with your creditors. Third, make sure the company is able and willing to answer all your questions, if you feel that the company is "beating around the bush" don't waste your time; find another company. Last, if you feel pressured by the Debt Management Company, run, more than like that feeling will not go away.
Once you choose a company and feel comfortable working with them. They will get you started on your way to a debt free future. There are several steps that are generally followed by Debt Management Companies. The first step is listing all your creditors and the amounts owed for each. Remember, not all creditors are eligible to be included in a Debt Management Plan. The second step is listing all incomes and expense i.e. mortgage, car payments and cost of living payments. The third step is deciding how much of your income is available to contribute to your Debt Management Plan. Your Debt Counselor will try their best to settle any debt and eliminate interest rates. The fourth step is reviewing and approving your Debt Management Plan. Make sure you understand everything and read the fine print. This last step is crucial; it ensures that you're not in the dark regarding the amount of money being paid out.
As with any financial product there are advantages and disadvantages working with a Debt Management Company. One advantage is the company can lower or eliminate the high interest rates and fees associated with credit card debt. The company can also settle your debts for nearly half of the balance. You only have to make one monthly payment instead of five or ten. The biggest advantage is you will no longer have to communicate with creditors via mail, phone or Internet.
One disadvantage is that creditors to not have to agree to participate in your Debt Management Plan or lower your interest rates. This would still allow some of your creditors to communicate with you and take legal actions against you and still charge you interest and other fees regardless of payment efforts. Also, any settlement agreed upon between your Debt Management Company and your creditors will show on your credit report.
Keep in mind that this is your decision so it is important for you to be comfortable with it. Ask around, see if any of your friends have worked with a Debt Management Company or know anyone who has. Remember, your Debt Management Company will get your started but it is up to you to finish it. Hopefully you will learn how to make educated financial decisions, which will keep you on a debt free path.
Debt management plan is designed by debt consolidation and debt settlement specialists to help those individuals that have piled on a fair bit of debt to relieve the burden of multiple bills and to allow them to focus on budgeting and managing their lives. EZ bad credit debt consolidation plan can help anyone even with poor credit.
Debt Management is a very simple financial concept hire a qualified Debt Counselor or certified Debt Management Company to pay your unsecured debt.
The Debt Management Company you hire will relieve and eventually reduce your debt by managing your assets effectively and negotiating with your creditor regarding interest rates and monthly payments. This is not a loan so you are no obligated by any contract or other binding paperwork associated with a Debt Management Plan.
When choosing a Debt Management Company you want to make sure and beware of several things. First, make sure the company registered with the Better Business Bureau (BBB) and has been rewarded the "Reliability Program Online Seal." Second, beware of any companies who want to charge more than $50.00 a month to open your account and work with your creditors. Third, make sure the company is able and willing to answer all your questions, if you feel that the company is "beating around the bush" don't waste your time; find another company. Last, if you feel pressured by the Debt Management Company, run, more than like that feeling will not go away.
Once you choose a company and feel comfortable working with them. They will get you started on your way to a debt free future. There are several steps that are generally followed by Debt Management Companies. The first step is listing all your creditors and the amounts owed for each. Remember, not all creditors are eligible to be included in a Debt Management Plan. The second step is listing all incomes and expense i.e. mortgage, car payments and cost of living payments. The third step is deciding how much of your income is available to contribute to your Debt Management Plan. Your Debt Counselor will try their best to settle any debt and eliminate interest rates. The fourth step is reviewing and approving your Debt Management Plan. Make sure you understand everything and read the fine print. This last step is crucial; it ensures that you're not in the dark regarding the amount of money being paid out.
As with any financial product there are advantages and disadvantages working with a Debt Management Company. One advantage is the company can lower or eliminate the high interest rates and fees associated with credit card debt. The company can also settle your debts for nearly half of the balance. You only have to make one monthly payment instead of five or ten. The biggest advantage is you will no longer have to communicate with creditors via mail, phone or Internet.
One disadvantage is that creditors to not have to agree to participate in your Debt Management Plan or lower your interest rates. This would still allow some of your creditors to communicate with you and take legal actions against you and still charge you interest and other fees regardless of payment efforts. Also, any settlement agreed upon between your Debt Management Company and your creditors will show on your credit report.
Keep in mind that this is your decision so it is important for you to be comfortable with it. Ask around, see if any of your friends have worked with a Debt Management Company or know anyone who has. Remember, your Debt Management Company will get your started but it is up to you to finish it. Hopefully you will learn how to make educated financial decisions, which will keep you on a debt free path.
Debt management plan is designed by debt consolidation and debt settlement specialists to help those individuals that have piled on a fair bit of debt to relieve the burden of multiple bills and to allow them to focus on budgeting and managing their lives. EZ bad credit debt consolidation plan can help anyone even with poor credit.
Thursday, December 18, 2008
Debt Management Information To Help You With Your Finances
By: Tim Jeffs
Choosing debt consolidation loans is far more popular than it once was.
Maybe this is due to the frustrating economy, the rising oil prices, or perhaps just more materialism in the world - in any case, people have more debt than ever before.
To help manage this debt and to erase it for good, you might need more than just a raise or a strict budget. With debt consolidation loans, you can put all of your debts into one place and pay them off with one simple monthly payment.
Better still, these loans are going to boost your credit rating. Here's what you need to know.
Imagine your life without debt - how will that feel? No more worrying about the bills arriving in the mail and no more deciding on every cent that you need to spend. You can go to the doctor without worrying about paying for it and when your children need something, you can provide it for them.
The chance to finally let go of the tension you've been carrying in your shoulders?
Priceless.
When you're free from debt, you're:
Happier - No more grumpy moods around bill time or whenever someone asks you for money.
More relaxed - You don't have to spend your time stressing about the money you don't have or the money you would like to have.
Stable in your moods - Your mood doesn't have to be proportional to your checking account balance.
Able to make rational money choices - When you're low on money, you tend to make decisions that aren't always based in logic. When the pressure's off, you can step back and think about what you really want and need.
A great example for your friends and for your children - By creating financial security, you will show others that it's possible and preferable.
Did you know that credit card consolidation is one of the most popular plans for homeowners and families today?
Because credit card interest rates make it impossible to get ahead of your balances, a debt consolidation plan can finally stop those climbing interest charges.
How you get out of your debt might begin with a debt consolidation plan of some sort or you might simply look for a credit card consolidation option. Those with homes may favor a debt consolidation mortgage plan as well since this can be a tax benefit for them as well as a lifesaver.
Credit card consolidation is the most popular plan for homeowners and families today. Because credit card interest rates make it impossible to get ahead of your balances, a debt consolidation plan can finally stop those climbing interest charges.
By providing you with a low interest loan to pay off all of your balances, you can save money as you pay off your debt. You can even find debt consolidation mortgage plans to help you pay off your credit cards with the equity of your home. These can be arranged through your home lender and are often offer even lower interest rates.
Even if debt consolidation loans seem like they're only offering a stopgap, sometimes that's what you need in order to take control of your budget and insanely high interest rates.
This certainly isn't free money, but these loans can certainly make your life easier - and that's something that's priceless.
Wouldn't you agree?
For further information and help regarding Debt Consolidation, please visit our website at RealCase.com. We offer you an extensive array of resources and advice for, Bad Credit, Debt consolidation, Bankruptcy, and Foreclosure.
Choosing debt consolidation loans is far more popular than it once was.
Maybe this is due to the frustrating economy, the rising oil prices, or perhaps just more materialism in the world - in any case, people have more debt than ever before.
To help manage this debt and to erase it for good, you might need more than just a raise or a strict budget. With debt consolidation loans, you can put all of your debts into one place and pay them off with one simple monthly payment.
Better still, these loans are going to boost your credit rating. Here's what you need to know.
Imagine your life without debt - how will that feel? No more worrying about the bills arriving in the mail and no more deciding on every cent that you need to spend. You can go to the doctor without worrying about paying for it and when your children need something, you can provide it for them.
The chance to finally let go of the tension you've been carrying in your shoulders?
Priceless.
When you're free from debt, you're:
Happier - No more grumpy moods around bill time or whenever someone asks you for money.
More relaxed - You don't have to spend your time stressing about the money you don't have or the money you would like to have.
Stable in your moods - Your mood doesn't have to be proportional to your checking account balance.
Able to make rational money choices - When you're low on money, you tend to make decisions that aren't always based in logic. When the pressure's off, you can step back and think about what you really want and need.
A great example for your friends and for your children - By creating financial security, you will show others that it's possible and preferable.
Did you know that credit card consolidation is one of the most popular plans for homeowners and families today?
Because credit card interest rates make it impossible to get ahead of your balances, a debt consolidation plan can finally stop those climbing interest charges.
How you get out of your debt might begin with a debt consolidation plan of some sort or you might simply look for a credit card consolidation option. Those with homes may favor a debt consolidation mortgage plan as well since this can be a tax benefit for them as well as a lifesaver.
Credit card consolidation is the most popular plan for homeowners and families today. Because credit card interest rates make it impossible to get ahead of your balances, a debt consolidation plan can finally stop those climbing interest charges.
By providing you with a low interest loan to pay off all of your balances, you can save money as you pay off your debt. You can even find debt consolidation mortgage plans to help you pay off your credit cards with the equity of your home. These can be arranged through your home lender and are often offer even lower interest rates.
Even if debt consolidation loans seem like they're only offering a stopgap, sometimes that's what you need in order to take control of your budget and insanely high interest rates.
This certainly isn't free money, but these loans can certainly make your life easier - and that's something that's priceless.
Wouldn't you agree?
For further information and help regarding Debt Consolidation, please visit our website at RealCase.com. We offer you an extensive array of resources and advice for, Bad Credit, Debt consolidation, Bankruptcy, and Foreclosure.