Debt Relief Services That Scam You

By: Justin narin

Many debt relief services are there to help, but there are some that really just want to take advantage of your vulnerable situation. Understanding the difference between a real debt relief service and one that wants to scam you can save you money. The following are four scams to watch out for when seeking relief for your debt.

Debt Relief Services - Credit Counseling Scams

First, it is important to know that there are legitimate credit counselors that can truly help you reduce your debt. But it is equally important to understand that not all credit counselors have your best interests at heart. Knowing the signs of a scam will protect you from ending up in even more debt.

What Credit Counselors Do

Credit counselors take a look at your financial situation and help you find ways to manage it. This may include creating a reasonable budget, prioritizing your bills, and developing money management skills.

What Credit Counselors Don’t Do

Now that you know how credit counselors help you reduce your debt, it’s important to know what they should not be asking you to do.

Any credit counselor that asks you for high fees for signing up with them, typically anything that exceeds $50, is probably more interested in your money than actually helping you. Monthly fees that are over $30 should also send up a red flag.

A credit counselor who asks for your vital financial information, such as your account numbers, before explaining what debt relief the company can provide, is probably not entirely legitimate. A counselor should be willing to explain how he or she works before asking for your important information.

Debt Negotiation Firms

Wouldn’t it be great to find a company that can approach all of your lenders and negotiate lower payoff amounts for you? Owing less money means paying off your loans faster. But the truth is that companies that claim to do this don’t really have that power. Not only do they charge you a high fee for this service, but they may also ask you to stop making your monthly payments. In the end, you’ll end up with late fees, higher interest rates, and more debt. And that lower payoff amount will never materialize.

Debt Management Plans

These plans are sometimes an option offered by credit counselors or other debt relief firms. They require you to give a certain amount of money to the company each month, and that money is then used by the firm to pay off your various bills. These firms may or may not be able to negotiate lower rates for you on some of your loans. While some of these are legitimate, you have to be very careful.

Whenever you trust someone else to pay your bills for you, you want to make sure they are doing what they say they are, rather than taking your money and creating more debt for you.

When Debt Consolidation Loans Are Scams

Like credit counseling, a debt consolidation loan is a real solution to reducing your monthly payments. You consolidate all of your high interest bills into one loan at a lower interest rate, lowering your monthly payment. However, there are some scams to be aware of. Some will charge you high fees to sign up for the loan or hidden fees that make the actual total larger than you realized. Others may use your home as collateral without making you aware of it. Make sure you understand the true terms of any debt consolidation loan before you sign the papers.

Debt can be both overwhelming and scary, but don’t let other people prey on your fears. When you understand what your true options are and whom you can trust, you are one step closer to reducing your debt.

Be Wise When Locating A Debt Consolidation Service

By: Frank Froggatt

If you decide to consolidate your debts you can head off a lot of coming stress and grief that is linked with being confined under a heavy financial burden. Solutions from debt consolidation help to relieve the incredible weight that debt can cause on individuals and households. Holding this weight can genuinely bear on every area of your life, and sometimes contribute to tragedy.

Numerous debt consolidation establishments and companies tell you that if you pay back the least sum of money, applying it to your accounts will take you forever to repay your debts. This is true; however, if you are yielding the minimum sum, it is demonstrating effort on your part.

After attending classes, analyzing law, and examining credit repair solutions, I found that asking for help from a debt consolidation company in comparison to redeeming your debts on your own counts against you. In other words, if you have to use an outside source to pay back your debts, then it demonstrates that you are not dependable for your own money management.

Companies that extend debt respite services make claims to offer a genuinely simple method to shrink your payments by rolling them into one easy to make monthly payment. You have to be careful though because some of these companies will charge hidden fees along with lofty rates of interest. With this being the case, you aren't actually getting out of debt any faster than you would have if you simply paid back your bills on your own. These services are incredibly effective at inducing people who are in debt to apply for these loans or for solutions that assist them to get out of debt, and then take advantage of them.

There are some parties out there that will propose fast sounding deals to pull clients in. Sometimes they make false statements that lead consumers to trust that they can get help at once. The truth of the matter is, when you immerse yourself in debt its going to take a piece to dig yourself out. Sometimes it's a truly hard truth to face, but when you act irresponsibly you can end up paying for it for a long time. With this in mind, don't settle for any of those fast talking salesman, and believe me they are very good, take the time to do the research and obtain a company that is actually there to help. When you acquire a great company they won't charge you your firstborn child; instead they will help you to get rid of your debts over an extended period of time.

Steps Toward A Successful Debt Consolidation

By: Larry S.

Trying to get out of debt can be a challenging situation for many. Making independent steps toward financial freedom is noble yet unrealistic. Since your personal habits are what put you in your current debt, you will need assistance from a third party debt counseling service. This article will discuss some of the steps a debt consolidation company will give you to escape the curse of debt.

One step to make during a debt consolidation is to keep all your bills and financial statements in an organized system. Having your bills scattered throughout the house makes it nearly impossible to carry out a successful debt consolidation. A simple option is to create a file folder with all your financial records put into individual files.

Another helpful tip when doing a debt consolidation is to have a teachable attitude with your debt counselor. It is a good idea to learn as much as you can from the debt consolidation service. Every session you have with your debt counselor should be a time of absorbing all the financial information you can. The only way to become totally debt free is to make all the smart steps that you are taught.

The Secret Benefits Of Bankruptcy

By: Joseph Devine

Understandably, most people associate bankruptcy with negative thoughts. For example, notions of irresponsibility, dishonesty, incompetence, and waste are among the most common ideas people think about when they think about bankruptcy. They also think about courts and legal trouble. While all of these associations are understandable and in many ways true, bankruptcy is not all bad. It has many positive effects in many spheres of life, not just the financial.

One of the benefits of bankruptcy is that it helps remove a mental and psychological burden. When people face financial trouble, they have to endure a lot of stress. They have to worry about making enough money to live but also to pay off debts. Excessive worrying can even take a toll on people's health, possibly adding an additional burden of health care costs. By consolidating and possibly removing debts, bankruptcy can help remove a large amount of stress that people feel. In the long run, this can be very beneficial, for people's health can not deteriorate.

Another benefit of bankruptcy is that it allows people to revive their financial life from square one. Often times, people's financial problems can overwhelm them, swamping them in a debts owed. By helping people remove the debts they have, bankruptcy also helps people create a new financial identity. People can learn from the mistakes that led to bankruptcy and can apply those lessons once all of their debts have been paid off.

A third benefit of bankruptcy is that after it is successfully executed and all debts are paid off, people can quickly regain their financial reputation if they work hard, save money, and do not go back into debt. While people face bankruptcy, no one wants to lone to them out of fear of not being able to ever get the loaned money back. By filing bankruptcy and working hard afterwards, people can show that they are responsible want to pay back their debts. This will eventually help them regain them financial credibility.

Bankruptcy has many benefits, and the ones listed above are but few. People who are considering bankruptcy need to weigh both the positives and the negatives. Everyone knows the negatives of bankruptcy, but the positives are always hidden. However, it is important to research the positives so that the best decision can be made.

Debt Restructuring Companies

By: Andrew Alexander

Debt restructuring, with the help of a legitimate company, can be a great way to eliminate your debts quickly and increase your credit score in a short period of time. Unfortunately, in recent years there has been a dramatic increase in the number of debt resolution companies who take advantage of trusting consumers. Some of these so called professional companies have even been known to drag the consumer unknowingly into illegal activities that could result in jail time.

How to Spot Fake Debt Resolution Companies

Just because a company seems to offer good debt management programs, does not mean that they are legitimate. You should always be on the lookout for services that are trying to take advantage of your unfortunate position. Common warning signs of fake debt restructuring companies include:

• Asking you for money up front. A legitimate debt management company will never ask you for money in advance.

• Failing to give you information on your rights as a consumer. A good debt management company will explain your credit management rights in detail.

• Not detailing their various debt management programs. If a business can’t tell you in detail how each of their programs or services work, then they are more than likely an illegitimate company.

• Trying to convince you to create a new credit file. Some imposter companies will try and get you to sign up for an EIN and use that instead of your social security number for credit, but this is illegal.

Choosing a Legitimate Debt Restructuring Company

There are ways to recognize fake companies, but there are also ways to go about choosing legitimate ones as well. If you find yourself drowning in debt and needing help with credit management, then you should not hesitate to seek out a reputable business that can help you meet your financial goals. Below are some of the ways you can go about locating such a company.

• Look for company reviews online, ask friends or family members for referrals, or check the company’s record with the Better Business Bureau. Doing these things can help you ensure that the debt management company you are considering is upstanding.

• Search for a business that has a clear outline and plan of action for managing your debt. If a company is upfront about their particular debt management programs, they are less likely to be a scam.

• Always choose a company that does not require payment upfront for their services.

The warning signs above can help you spot a fake debt resolution company right away. They can also help you decide which companies would be best to restructure your debt. Using caution when choosing a business to help you with credit and debt management is one of the best things you can do to ensure that you are not taken advantage of and put in an even worse situation. Seeking the help of a professional is a wise idea when you are dealing with financial issues that you do not fully grasp; but you could save yourself a lot of trouble and money by making sure that you choose a reputable company to work with.

Effective Debt Management Requires Prioritization

By: Nicholas Hunt

Facing debt can be a daunting task for people that have become burdened with high debt amounts, high monthly payments, and high finance costs. Thinking of high debt amounts in totality can add to the emotional burden of the debt. The best way to fight debt is to develop better spending habits to avoid digging a deeper hole, and to deal with the current debt by go after the most burdensome debt first.

Combating debt is similar to rolling a snowball down a hill, or knocking over dominos. The process begins slowly, but momentum builds as the debtor begins to knock out the most impacting forms of debt. The key for the borrower is to understand what debt causes the greatest disadvantages. This is the debt that should be paid off first.

There are several factors that should be taken into account when prioritizing debt. The most important debts to manage are those that could potentially lead to loss of valued property. Therefore, mortgage debt and homeowner secured loans should always be the main focus. Debts that are secured by property and expose the borrower's home to loss must be managed.

Ideally, borrowers can manage their secured debt and still have enough income and resources to meet and exceed monthly demands of revolving debt. What should dictate the order of importance for paying off unsecured debt? Again, there are several factors to consider, but there are a few key ones.

First, interest rates are a consideration. The higher interest rate balances accrue finance charges at a higher cost than lower interest rate balances. Over time, the optimal debt management plan reduces the total cost of debt repayment. Plus, by paying off the more expensive debt first, the borrower reduces the ongoing and overall debt costs.

Monthly repayment costs offer another consideration with debt payment prioritizing. Credit cards and loans that have higher monthly payments are more debilitating and have the greatest budgetary restraints. Thus, with credit cards that have comparable interest rates, the card that has the highest monthly repayment costs should be targeted first for early payoff. Once the more expensive cards are repaid, the new available resources can be applied to the next most urgent debt. This is where the domino effect comes into the picture.

Additionally, some borrowers prefer to work with fewer creditors to reduce the emotional burden of debt. Therefore, it is sometimes practical to payoff low balance debt simply to reduce the total number of creditor obligations.

About The Author:

Nicholas writes for Debt Nation where you can read more about priority debts as well as finding out how you might be able to write off credit cards completely legally.

Debt Management Tips - Simple Tips To Help You Begin Living Debt Free

By: Samantha Buck

These debt management tips will show you how to:

* Tell if you have 'good' or 'bad' debt

* Pay off all your debt

* Enjoy living debt free

When you're buried in debt, the thought of paying off debt seems nearly impossible. But, if you have an organized plan to get yourself out of debt, you'll be living debt free easier and faster than you can imagine.

What kind of debt do you have?

Before you begin to develop a plan to pay off your debt, you first need to know what type of debt you have - good or bad. Good debt increases your net worth over time. Bad debt on the other hand does not increase your net worth. Bad debt is usually credit cards used to purchase consumer goods that typically decrease in value. An example of a good debt would be student loans. Student loans allow you to obtain a college education, which will allow you to obtain a better job, so they are considered good debt to have. Another bonus is the interest paid on student loans is tax deductible. A mortgage is also a good debt since houses typically increase in value over time.

As mentioned above, credit cards with excessive balances are considered bad debt as are consumer loans with excessive balances. The goods purchased on this type of credit typically decline in value, or even wear out, or are lost before you have paid them off!

But, what about a car loan, is that bad debt? A car loan is somewhere in between good and bad debt. It's bad in that a car decreases in value the minute you drive it off the car lot. But, not many people have the cash to buy a car so, it is necessary to take out loan to purchase a car most of the time. And, a car loan can be viewed as a good debt in that it allows you to get to work everyday to earn a living.

Your best bet is to limit or get rid of credit card debt altogether. So, let's talk about debt management tips that will allow you to pay off your "bad" debt and eventually your good debt too.

Pay off debt and enjoy living debt free

You'll want to develop an organized plan to pay off your bad debt first.

First, write all of your bad debt down and include balances, creditors, interest rates, and the monthly minimum payments.

Second, contact each creditor and explain your situation requesting a reduction in the interest rate.

Third, organize your debt pay off list developed in the first step in descending order with the highest interest rate debt first.

Fourth, tighten your belt and limit any extra expenses and use the money saved to begin paying off your debt.

Fifth, take the money from the fourth step and make a payment to the debt with the highest interest rate while paying the minimum payment on the other debt.

Sixth, once that debt is paid off then take that payment and apply it to the next debt on the list.

Seven, repeat over and over until all of the bad debt is gone.

Once you're done paying off your bad debt, then work on paying off any car loan(s) the same way by applying payments you were making on all the other bad debt to the car loan(s).

Once that's done, move onto the good debt like student loans and pay those off in the same manner. Then move onto paying off your mortgage! Yes, it can be done.

Just think, one day soon, with these debt management tips, you'll enjoy living debt free!

About The Author:

Samantha Buck is a Professional Organizer and Editor of www.LifeOrganizeIt.com/debt-management-tips.html where you can find solutions to life's organizing dilemmas even debt management tips. Subscribe to the free organizing magazine "Organize It Mom!" at www.LifeOrganizeIt.com/free-e-zine.html. Not just for moms, this magazine will help anyone get organized!

The Six Questions Lenders Will Ask You After Your Bankruptcy

By: Stephen Snyder

When I first began applying for credit after my bankruptcy I noticed a trend.

Lenders would ask me the same series of questions over and over again. They all seemed to care about a few key things. Of course, now I realize they were trying to quickly assess if I was creditworthy or not.

You see, after you file bankruptcy, lenders will be very cautious when considering if they should extend you credit (and rightfully so).

Can you blame them?

After bankruptcy your number one mission is to prove to lenders you're now a low credit risk.

So what do they want to see from you? The right answers to the following six questions.

Question 1: Are You Discharged?

The first thing a lender will need to confirm is if your bankruptcy is discharged. Or, in other words, if your bankruptcy is complete.

The reason lenders want to know that you're discharged is because if your bankruptcy is still "open," then you could technically still add accounts to your bankruptcy (including the lender you're applying with). Not many lenders are going to grant you credit when you still have the ability to include them in your bankruptcy.

Make sure you don't confuse the term "discharge" with the term "filing."

Hopefully you're not one of the poor saps who've had a bankruptcy dismissed.

Having a dismissed bankruptcy is bad, bad, bad. You basically receive all the negative effects of filing bankruptcy-but none of the benefits-since your bankruptcy was not completed.

It's like paying off one of your collection accounts...then realizing the collection account remains on your credit reports. So your FICO credit scores don't increase at all. They stay the same.

But there's hope even if you've been dismissed. So don't throw in the towel just yet. Life's a garden-dig it ...plant some seeds of hope...and watch as you prosper...You can still start the process of increasing your credit scores.

Question 2: When was your bankruptcy discharged?

This is very simple.

The more time that has passed since your discharge-the better.

You see, each lender has different credit guidelines. A lender's credit guidelines are essentially their minimum requirements that you have to meet in order for them to approve your application.

For instance, you won't be able to finance a new car through a low interest lender until you're discharged. Being discharged is a basic credit guideline when financing a car after bankruptcy.

Getting approved for a secured Visa® or MasterCard® is relatively easy. Just being discharged and sending in your deposit are the two most important criteria.

Unsecured credit card lenders' credit guidelines vary. Some lenders won't touch you until the bankruptcy no longer shows up on your credit reports. If you discharge debt with some lenders, you'll never get another card with them until that debt is paid back (e.g., American Express®). There are lenders that will give you a second chance-but it won't be soon after your discharge (so don't hold your breath).

Mortgage lending requirements are more complicated. How much time you have after your discharge will determine what type of mortgage financing you qualify for.

Anything less than 24 months after your discharge and you're considered a sub-prime borrower. If you have more than 24 months after discharge you may qualify for more conventional mortgage programs.

Chapter 13 filers have even more options for getting a mortgage after bankruptcy, most of which are determined by the amount of time since your filing date.

So keep track of how long it's been since your discharge. Or if you filed Chapter 13, how much time since you filed. They are important dates to memorize.

Question 3: How have you paid your bills since your discharge?

Late payments appearing on your credit reports after a discharged bankruptcy are kisses of death.

Some lenders even consider 1 day late after the due date to be enough for them to report a 30-day late payment to the credit reporting agencies. The reason is that technically, they count everything in the 1-30 day late payment range the same. So even being one day late could burn you.

Bottom line-don't be late. Pay early, worst case on time. You simply cannot afford to be late.

Lenders will look to see how you've handled your credit since your discharge.

And if you think late payments hurt you...collection accounts, judgments, and other nasty things like those will haunt you much more.

You need to be able to tell a lender that you've paid everything early or on time since your discharge. When they review your credit reports they will see what you're saying is true.

Question 4: Have you reestablished new credit since your discharge?

Avoidance is not recovery.

Although it's good if you reaffirm a few credit accounts through your bankruptcy, it's even better if you can show lenders that you've established new credit since your discharge.

The types of new credit you need to aim for are:

- Home mortgage

- Car loan

- Car lease

- Credit union loan

- Bank loan

- Overdraft protection

- Credit card

- Retail credit card

- Gasoline credit card

- Home equity loan

- Student loan

The catch-22 is that the lenders you really want to work with don't really want to be the first ones to grant you credit. It can be frustrating trying to open that first account-which is why you need a strategic plan of attack. In other words, don't apply for a business loan (which can be tricky to get) if you can't even qualify for a secured credit card yet.

But it all starts with you. I'm saving you months-even years-worth of trial and error. But you have to take the information and put it into action. So get to it!

You simply will not recover unless you jump back into the fire and prove to the world you can manage credit effectively.

Question 5: How much do you have for a down payment?

It will be necessary in most cases to be able to come up with a down payment or deposit. So start saving! Lenders don't take food stamps, or post-dated checks.

As a general rule of thumb, if you made all your payments as agreed on your last car, you should plan on no more than $500 to finance a new car at a normal interest rate...that is IF you follow what I teach in the free Credit After Bankruptcy seminar.

On the other hand, if you missed or made late payments on your last auto loan, your only option will most likely be 20% down at a high interest rate through a finance company.

If a car dealer is telling you to come up with more money, you're either at the wrong dealer...or you need to wait until you've reestablished your credit a little more.

If you want a good secured credit card-plan on depositing around $250 to $500. There are some secured credit cards that you can get that have lower deposits, but I don't recommend them. Most of the lower-deposit cards have hidden fees...don't report to the credit reporting agencies properly...and usually have higher interest rates to boot.

A down payment on a home will obviously depend on the amount of the mortgage. Although 3% to 10% of the purchase price is considered the norm-it's more than possible to get a mortgage for no money down. And I'm not talking about some crazy television infomercial that's promising you the world. I'm talking about real, bona fide mortgage programs.

So be prepared. Have a little money down to show you're a playa.

Question 6: What are your credit scores?

Of course you knew this was coming, right?

Back when I was recovering from bankruptcy, credit scoring was just starting to become popular. You couldn't even purchase all 3 of your credit scores before 2003.

Today credit scores are used by nearly every lender in the United States and Canada.

If you don't know your FICO credit scores-you should.

Most important, you need to know which credit reporting agency has your...

...HIGHEST credit score

...your MIDDLE credit score

...and your LOWEST credit score

To gain the most leverage over any lender you should choose to work with the lender that uses the credit reporting agency that has your HIGHEST FICO score. This way you receive the lowest interest rate and best terms.

A Final Note

So there you have it. The six questions lenders will ask you after bankruptcy. Like my scoutmaster taught me many years ago...be prepared.

Chance favors a prepared mind.

About The Author:

About Author:

Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that helps people recover after bankruptcy. He has helped thousands of people obtain a credit card after bankruptcy with a fair interest rate.

How To Get Good Post-Bankruptcy Credit.

By: T. O Donnell

After the bankruptcy, the first thing you would have to do is repair your credit. Without a proper credit record, you could be branded an untouchable to financial institutions and banks.

If and when you get any credit after the bankruptcy, you should be doubly careful that you do not default on any payments or else you will never come out from under the shadow of bad credit.

Keep records of your spending. The positive part of keeping accounts is that it is easy to use them to establish that things are moving on the right path.

A credit card or store card is the easiest way to improve your credit score. Keep a close track on the repayment schedule.

In case you need a loan, ensure that you do not repeat the mistakes you committed in the past that resulted in your bankruptcy.

If and when you get any sort of credit, ensure that you calculate very carefully how much the repayment installments are and how can you repay them. Any slight delay in payments could be taken very seriously by the lending companies.

Special classes are held by non-profit organisations and even debt management program providers. The programs are helpful when you have no money, a bankruptcy behind you, and you need to learn how to hold and manage extra cash. Money management is a useful skill, and not just in regard to money. It helps your self-discipline generally.

You will then find, when visiting your counsellor, that the love of easy money is the root cause of most of your problems.

What Do Bankrupt People Do When They Need A Loan?

When you file for bankruptcy and this motion is discharged, it means that the outstanding debts have been paid as per the bankruptcy rules. It will take two years for a person who was declared bankrupt to start with his normal life again.

It is possible to avail of a loan even before your lock-in period is over; however, it is quite hard to achieve this. One thing that could help you here is your post-bankruptcy credit report. If it is flawless, then you might have a chance to be considered for the loan. Besides, you would need to make a large deposit of 3-5% of the total loan amount.

The deposit can be met with a loan from friends and relatives; however, you would need to keep proof of every penny gathered, as the lender would need to see and accept the sources of your income. While it is acceptable to borrow for the deposit, the lender would not accept your application if your day-to-day income comes in this manner. You would need to have a job, which pays you sufficient to support yourself and repay the loan at the same time.

Another way to raise money for the deposit would be through online (and offline) grants. Run a search on the Internet and find out about this aspect. There are plenty of grants available on and off the Net, which could help you in this period of your life. The only thing is to get the right one.

The third pre-requisite that a lender would need is proof of your regular and sufficient income. Here, you will need to keep in mind that loans from relatives are not really an acceptable source of income.

If you manage to stay afloat for two years after the bankruptcy, then it will be easier for you to apply and get the loan you need. It remains for you to re-build your credit record and make the best of your future. It is also a good idea to save something out of your income every month so bankruptcy never happens to you again.

About The Author:

T. O' Donnell http://www.ttbankruptcy.co.uk is a licenced credit broker based in London, UK.

Making a Budget Will Help You Achieve Your Financial Goals

By: David Hoyer

Many Americans like to live beyond their means - this is nothing new. And the credit card companies are not helping. The easier they make it for us to attain credit, the further in debt we get. At some point, even though we may not like it, we may have to consider budgeting ourselves.

The reason we budget is so we can pay for our necessities but still live and enjoy a reasonably comfortable life. This means that if we're making $32,000 a year, we don't buy a million dollar home. Instead, we find a more suitably priced home in the nicest neighborhood that we can afford. If we are barely making enough to feed our family we don't splurge on a 56 inch flat screen plasma television. We conserve our money and buy a more modest TV.

No one likes to budget. But unless we are independently wealthy through inheritance, the lottery, hard work, or some other means - we are going to have to learn to take control of our money if you want to achieve any of your financial goals and dreams.

The main purpose of a budget is to keep you from spending too much money on things that you don't need. It can be so tempting when watching those late night infomercials and you see the Atomic Weed Destroyer that will kill all of the weeds from your garden with a single push of a button. You whip out your wallet, call the 800 number, and order it for the low, low payment of $19.95 a month for 3 months. A budget, if you follow it, will make you think twice before picking up that phone. Or maybe you go into a grocery store planning to spend $60 but instead come out with a $100 grocery bill. A budget, if you follow it, will make you stop and think before adding that extra item to the grocery cart.

A secondary purpose of a budget is to help you save money towards future acquisitions or future goals. For example, if your child, Johnny, is three years old and you want him to attend college, you'd better start planning and budgeting your money so that when he reaches 18, he has money for his tuition. Likewise, if you have just married and know that you want to buy a house in five years, now is the time to set aside a certain amount of money each month so that you have enough for a down payment in five years.

It may not seem obvious, but one of the biggest goals or dreams that a budget can help you to attain is financial independence. It's often said that 'It's not how much you make, but how much you save." And it's mostly true. We've all heard the stories of famous boxers and other entertainers who at the peak of their career raked in multi-million dollar paydays. But somehow, at the end of their career they ended up broke, on the streets, waiting tables, and so on. Did they not make enough money? Or did they simply fail to budget their money properly?

In the end, we all have the same basic money decisions to make as those famous celebrities did. Do we carelessly fritter away whatever monies we make and risk ending up destitute with no retirement security? Or do we take control of our money and our lives by creating a budget that will help us to make the most of what we have? To be blunt, most Americans make the wrong choice. Don't you make the wrong choice too.

About The Author:

David Hoyer is a freelance writer who writes articles relating to bankruptcy mailing list for rent and other bankruptcy related issues. Visit his site at http://www.bankruptcyfocus.com .

The Need for Bankruptcy Lawyers

By: Glennsmith

For those who have little knowledge concerning the laws regarding all aspects of bankruptcy, then you need to look for a lawyer to help you understand your options.

When to Approach Lawyers

There are many aspects of bankruptcy that you may not understand as well as a lawyer will. It is advisable to at least consult a lawyer when thinking of filing for bankruptcy. These lawyers are well versed regarding loopholes and legal parameters of bankruptcy. The bankruptcy lawyers will also help individuals to find their way out of the mess as well as represent them in court when needed. Good representation is essential in order to let your sentiments regarding the situation be understood by the judge and others.

You will need to get a bankruptcy lawyer when you feel that you are in over your head in trying to file for bankruptcy. Trying to save your lawyer expenses by trying to do things on your own might get you in bigger trouble especially when you have no idea what to do and where to start.

The Role of a Bankruptcy Lawyer

A bankruptcy lawyer should be able to guide you, his client, through the many intricacies of filing for bankruptcy as well as the options for paying off debts. The bankruptcy lawyer should be able to amply represent you in court as well as make your plight as understandable as possible. The lawyer in must also establish you, his client, in such a way that your debts be discharged to suit your needs and also that of your creditors.

The problem arises when your bankruptcy lawyer turns out to be someone with too many cases to handle. It is best to ask recommendations from other lawyers regarding who they can recommend as a bankruptcy lawyer. Unless you have someone you know who has been satisfactorily serviced by a bankruptcy lawyer, then it is best to ask the professionals. You might also like to observe bankruptcy court to see how some lawyers go about their cases and which can help you. You must also ask questions regarding your case if there are some things you do not understand. It is after all your financial status that you are dealing with so it is best to understand every aspect of it instead of leaving everything to the bankruptcy lawyer.

File Bankruptcy Online With the Help of an Attorney

By: Balva Rudick

If someone finds themselves with overwhelming financial debt they may end up filing for bankruptcy. This should always be a last resort however because there may be other options available for people to get out of debt. If bankruptcy is the only option it is now possible to file bankruptcy online. Bankruptcies are always handled by Federal Bankruptcy Courts, never by state or local courts. These courts have established a system that allows a person to file bankruptcy online.

However, in order to use the system to file bankruptcy online the case must be handled by an attorney. Individuals who want to file bankruptcy online without hiring an attorney are not allowed to do so. There are various websites that do offer assistance to people who want to handle it themselves. This can include advice on the types of bankruptcy relief available and even access to various bankruptcy forms with instructions on how to fill them out and where to file them.

It is highly recommended that people do get an attorney to represent them. This will not only allow them to file bankruptcy online but insure that they get the expert legal advice they need to choose the right course of action. Individuals have the choice of filing a Chapter 7 Bankruptcy that allows them to discharge or get rid of most of their debts. However, they also have to give up most of their property. On the other hand Chapter 13 Bankruptcy gives people a way to reorganize and pay their debts over a period of from three to five years. It also allows individuals to keep their property but they must have a regular income in order to qualify for this type of bankruptcy.

When someone wants to file bankruptcy online and they consult with an attorney they will usually be told about other options that may be available in order to avoid bankruptcy. All of these options should be tried first because bankruptcy will often do long term or even permanent harm to an individuals credit making it impossible to borrow money or even get a credit card in the future. Even when people want to file for bankruptcy on their own they should still use the different resources on the Internet to look into other alternatives. Taking the step to file for bankruptcy is truly a life altering decisions and should only be taken after all the facts are considered and all of the possibilities are weighed.

About The Author:

Balva Rudick is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com

Bankruptcy Mortgage: Is It Possible?

By: Camie Ibara

If you wonder whether you can still apply for a mortgage loan, when you have a bankruptcy situation, the answer is 'yes'. You will need to know more about what to do when you have bad credit, but it all comes down to income verification and a down payment.

We will show you here a small guide to learn more about how to get a mortgage loan after bankruptcy. First, keep in mind that you need to let two years pass from the time when the bankruptcy was declared, before any institution will consider giving you such a loan. After that, the sky will clear and you will receive even 100% financing. You will also need, during these two years, to pay all your debts on time, proving that you are a trustworthy borrower.

If you do not want to wait for two years, there is also a possibility. First, a requirement would be a flawless credit history since the bankruptcy discharge. Second, you must forward a down payment for the mortgage loan. This would be about 3-5% from the entire amount you want to borrow.

The down payment can be quite tricky for you to achieve, if you do not have any savings. But you may have other ways:

1. Your family can help you with your endeavor. Ask them to borrow you the money needed for the down payment. After you get back on your feet with all the payments and mortgage, you can also repay your relatives. If you are in this situation, remember to tell all about it to the lender's representatives, as, if you do not disclose the source of the down payment, you can be accused of trying to defraud the lender.

2. When your family and friends cannot help you, do not despair. The Neighborhood Gold, or the Nehemiah program may help you, instead. These programs are meant to help you with your down payment. This means that you can borrow the money from the person selling you the property, under legal circumstances. There is even a better solution: grants for down payments - loans that you will not have to pay back. For that, you will need to do a little more research.

3. A third solution for a down payment would be to cash out a 401k or other investment and repay it with a second or third mortgage.

About The Author:

Camie Ibara is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com

Bankruptcy Car Loans - Tips for Getting One

By: Colette Stenson

Dealing with a bankruptcy can be devastating, and sometimes it can be a bit difficult to find the loan that you need on a car after you have gone through a bankruptcy. However, if you want to build up your credit again, going with bankruptcy car loans is a great way that you can do so. However, if you want to make sure that you get approved for the loan you need, make sure that you use the following tips to help.

Tip #1 - Look at Your Credit Report - If you want to take out bankruptcy car loans, it is important that you first take a look at your credit report before you get started. Make sure that the accounts are as they should be, and make sure that they are all closed. Also, you may want to have a page added that explains the problems that led you to a bankruptcy, which may make lenders more likely to help you out.

Tip #2 - Plan the Purchase - You'll also want to make sure that you plan the purchase of the car when you are considering bankruptcy car loans. It is important that you are aware of what you can afford to pay on a loan each month. This way you will be able to come up with the option that is going to work out the best for you. The terms of payment, the length of the loan, and the interest rates are all going to influence you, so go prepared to know what you can afford.

Tip #3 - Go with Special Lenders - Going with special lenders is a great idea when you are looking for bankruptcy car loans. There are actually special lenders out there that cater to people with bad credit and those who have gone through a bankruptcy recently. Many of these lenders are willing to offer you a great loan and you'll find them to be much better than the loans that car dealerships can offer you.

Tip #4 - Let Them Know Your Situation - When you're trying to get bankruptcy car loans, letting the lenders know your situation may help. Make sure that you write on your application why you ended up declaring bankruptcy. This allows you to explain what happen and how you have worked to fix the situation.

Tip #5 - Comparison Shop - Last of all comparison shopping is important. Don't go with the first loan you come across, but take the time to look for the best terms and rates possible.

About The Author:

Colette is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com

How to Steer Clear of Business Credit Card Traps

By: James E

Watch out!

The business credit card which seems to be the answer to your financial constraints can be a deceiving monster that will pull you more over the rut. Without a doubt, business credit card is a convenient way to ensure that you have enough capital for your business' needs. Aside from this, one can also get a hold of a whole range of products and services that can assist in keeping track of all the expenses incurred. Additionally, this makes purchases cheaper compared to buying them in cash.

But one should remember that these business credit card companies are not heaven-sent creatures that would operate merely to help business owners, they have their own benefits to take care of too. It is a must to read the fine print, specifically the terms and conditions, before finally signing up for one.

Here are some precautionary measures to take to heart:

· Don't Listen to the Siren Song of High Credit Limits

Fine, you were able to get a decent credit limit; however, this should not actually bring you too much joy because it can actually be a pitfall since it creates the greater problem of excessive spending. Because it is relatively easy to buy things with a high credit limit, chances are, you will be buying more stuff than you actually need. If you are the type who would simply rely on the billing statement to keep track of your purchases, the next monthly statement could bring you more horror than monsters under your bed.

· Minimum Payments Dues are a Shallow Grave

This problem comes to the scene because you don't have enough money to pay your previous balance. This is the lesson that one can learn from overspending, a stiff and expensive lesson indeed. The moment you are eaten by the cycle of paying only the minimum due amount, you will see that the compounded interest rate would further enlarge your actual debt.

Never allow your business to face this kind of problem given by most business credit cards by spending only for the necessary.

· Keep Looking for a Perfect Fit

So how do you know that you've got the wrong business credit card? Simple - when you're faced with huge deal of trouble! Looking for the right card does not only involve looking for 0% interest rates or low interest rates, and even a striking reward programs. You must also look further into the details.

You must look for the services that suit your business. Rewards and freebies can look attractive at first, but the shine and glitter vanish if the card you have is not something that will go with the requirement of your business.

Overall, it is your ability as holder to maintain good credit card standing. These business credit cards are created to be help, not to destroy, your business. The problem will only come to the scene if the owner becomes too careless with his/her actions and end up overspending without enough funds to repay the dues.

More info: http://www.bizcreditcards.org

Filling and Eligibility for Bankruptcy

By: Jamie Hanson

The bankruptcy laws in earlier times used to affect the debtor harshly as the creditors used legal and physical methods to get back their credits. But as time changed, new bankruptcy laws evolved as well as older ones were amended to make the laws more permanent and beneficial for both the debtors and creditors.

If you are facing a financial crisis then you should get the help of a bankruptcy lawyer that can help you understand the complexities of chapter 7 and chapter 13 and other procedures related to it.

About Chapter 7 Bankruptcy:

Chapter 7 bankruptcy: otherwise known as liquidation is most common and is proposed for the discharging of the unsecured debts such as medical bills, credit card debt, and unsecured personal loans. These types of bankruptcy can be completed within a period of months. It gives trustees, the ability to pay creditors by liquidating the non-exempt assets, although due to problem of absence of non-exempt assets among people who are filing the chapter 7 bankruptcy, the trustees are able to keep their property and can easily eliminate the debts which are unsecured.

Eligibility

The qualification for being eligible to file a chapter 7 bankruptcy is the debtor must be an individual, a corporation, a partnership or any other business entity. The first thing that will be done to check your eligibility is that your average income for 6 months earlier to the filling date and comparing it with the median earnings of the state in which you reside if your average income is below that median income then you are eligible to apply.

One another important eligibility criteria is to be able to discharge your non-exempt debts you should have unsecured debts such as consumer debts, medical bills, or payday loans.

There are certain conditions that make you ineligible and you should take care about these:

1. If you have enough disposable income to repay your debts , after cutting the allowed expenses and important debt payments for repaying small portion of the unsecured debts on a five-year repayment phase

2. If you have already attained a chapter 7 bankruptcy earlier within a time period of the last eight years prior to the time of filing.

Proceedings and working

The chapter 7 bankruptcy works on the concept that any of the secured assets a petitioner has will be handed over to an estate which is a legal that becomes the temporary owner of all secured assets and the creditor has no right to liquidate these assets until the case is over.

Bankruptcy - What Is New With The Law

By: Lara Sawyer

Laws are ever-changing. They are continuously evolving towards perfection. Well, we all know perfection cannot be achieved, but we do not stop trying to attain it anyway. It is sometimes hard to be updated on every minor change laws undergo, some of which might turn out to be insignificant. But when major changes are performed on a law we were once familiar with, the best idea would be to get acquainted with it over again.

As you might have heard, the bankruptcy law has suffered some large changes not so long ago. This is very important for you to know because the eligibility for each chapter has been modified. Whether you are thinking of filing a bankruptcy claim or are going to file for bankruptcy shortly, this is the article for you.

Eligibility For Chapter 7

As stated before on this article, eligibility for chapter 7 has been restricted. Prior to this law change, anyone could choose to file for this type of claim, but now those days are over. Now consumers willing to file for this chapter have certain salary caps.

For you to be eligible for this chapter, your monthly income should be equal or lower to the median monthly income for your family size set by each state. This seeks to limit high income families to file for this type of chapter. Provided that your monthly salary is higher than this median, you will have to undergo a test and pass it. This test is called “the means test".

The “means test" should be performed as follows: subtract debt payments and some specific allowed expenses from your monthly income. This will result in what is called a “disposable income". If this income is in fact lower or equal to your state's median income, you will be eligible for chapter 7.

Changes On Chapter 13

The 7th chapter is not the only one which has suffered changes. Chapter 13 has also been altered. Under the new law, filers will also have to assign all of their disposable income to the repayment of the debt, but the expenses subtracted from the real income (which results in the disposable income figure) will not be their real expenses, but those which are allowed by the IRS. This change only applies if the filer's income is higher than their state's median. Additionally, these expenses will not be deducted from the monthly income, but from the average monthly income during the subsequent six months after filing for chapter 13 bankruptcy.

Another Change

Before anyone can file for either one of the two chapters, credit counseling must be completed. What is the purpose of this requirement? In so doing, you will find out whether filing for bankruptcy is really the best option for you or if you have other alternatives prior to filing. Even if you do have other options, it is not compulsory for you to opt for them. The only obligation you have is to undergo counseling. There are no exceptions to this rule.

As your bankruptcy case comes to an end, a second counseling session will have to be attended. You will gain knowledge on personal financial management, which, to my mind, is an excellent piece of news.

About The Author:

Lara Sawyer is a professional loan advisor used to solving bad credit problems and helping people secure home loans, carloans, personal loans, unsecured credit cards, home equity loans, refinance mortgage loans and plenty of other financialproducts. Whether you want to learn more about Fast Bad Credit Personal Loans and Bad Credit Personal Unsecured Loans or find information about other loan types, just visit: www.fastguaranteedloans.com

Consumer Credit Counseling Services Help New York Residents Avoid Bankruptcy

By: Abby Reid

New York City is one of the most expensive cities in the United States. The cost of living is extremely high, and over 1.5 million city inhabitants live below the poverty line. As more people face financial hardship and declare bankruptcy, it becomes increasingly difficult for NYC residents to stay out of debt. Online consumer credit counseling services are extremely beneficial for New York citizens who may be experiencing economic challenges.

Many people choose to move to the area because of its exciting nightlife, diverse population and employment opportunities. How can one avoid debt and bankruptcy and still comfortably survive in a costly metropolitan area?

* Find a roommate. Housing in many New York City neighborhoods is extremely costly. Renting an apartment in a secure, safe and cultural area can easily cost thousands of dollars per month. Online consumer credit counseling services suggest finding a roommate or two to share the rent. This can substantially alleviate your living expenses and help you avoid debt. Before you move to the city, research various neighborhoods and housing options. Find a no-fee apartment where you do not have to pay a broker's finding fee.

* Get help. Free consumer credit counseling services, like Advantage CCS will help you manage your financial situation. Trained New York debt management counselors will help you learn to manage a budget and avoid bankruptcy.

* Use public transportation. The expense of parking and driving your car in the city in uneconomical and can put you into debt or bankruptcy. Most people use the city's efficient public transportation system. You will also save significant amounts of money on annual auto maintenance, car repairs and gas.

* Avoid unnecessary expenses. One of the many reasons why people choose to move to New York City is its abundance of night clubs, fine restaurants, bars and taverns. However, going out to fancy dining venues every night can quickly place anyone into debt or bankruptcy. This doesn't mean that you shouldn't enjoy yourself - you simply need to plan ahead. Visit bars during their happy hours to enjoy cheap drink specials. Look for free or inexpensive events like wine-tasting exhibits and art show galleries.

* Shop smart - Browse thrift sales and secondhand stores. You can save significant amounts of money on items like clothing, furniture and books. You can also check one of the city's many newspapers for local estate sales that can save you cash and keep you from declaring bankruptcy.

* Avoid getting further into debt - Don't use credit cards unless you absolutely have to. Make sure you can pay the bill in full the next month. Obtain the advice of free online consumer credit counselors. Learn to efficiently manage your bills.

* Create a budget. Find the total of your monthly rent, food costs, utility bills, phone bills and necessities. Then subtract these from your income. Are you spending too much on bills? Do you break even? Calculating your income and expenses can help you avoid further debt.