By: Martin Sumner
Revolving debt and credit card balances continue to soar. More and more consumers are finding themselves in dire situations, dealing with debt that is out of control and fiscally unmanageable. While the burden of working with multiple creditors and trying to keep up with monthly principle and interest requirements can be challenging, there are some options for borrowers. Many borrowers turn to debt consolidation in order to reduce the burden they face from their debt.
Debt consolidation loans are a way for borrowers to cut down on the number of creditors they owe, while potentially saving money on interest and reducing monthly credit payments. Secured loans or homeowner loans are commonly used for debt consolidation purposes. Secured loans are those obtained by offering property as collateral to the lender in the event of non-repayment of the debt obligation. Most lenders offer their best rates and terms on secured loans because their risk is lower. If the borrower fails to repay their debt, the creditor has a right to claim repossession of the collateral property.
By reducing the risk to the lender, most borrowers can get higher loan amounts at better rates. This allows struggling borrowers to potentially payoff of multiple, higher interest rate credit balances with one, lower interest rate loan. There are many benefits to this arrangement. The borrower can pay off multiple creditors while taking on one bigger loan. They could trade in several higher rate balances for a homeowner or secured loan that offers much better interest terms. This leads to reduce interest over the life of the loan and lowers monthly payment obligations. For many people, the psychological benefits of reducing their number of creditors are great as well.
Borrowers do need to be careful when exploring debt consolidation options. One of the results of increased consumer debt has been rapid expansion of lenders dealing with bad credit and looking to take advantage of desperate borrowers. Borrowers need to be careful about offers that do not seem sensible. It is also important to fully evaluate and understand all terms and rates associated with a particular loan. Prepayment penalties are sometimes used with certain types of debt consolidation loans. Ultimately, if a borrower can lower their monthly debt payment obligations, they can use extra money to pay off principle balances sooner. This leads to lower interest paid over time and helps the borrower to pay off the debt balance more quickly than planned.
Martin writes for ADM Online who offer loans for any purpose, including debt consolidation. Visit today to get your finances back in order.
Friday, October 31, 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.
Thursday, October 30, 2008
Why you should opt for a Debt Management Plan
By: Jhoana Cooper
In a debt management plan or DMP you are assisted by expert professionals who will instruct you on how to solve your debt problems so that you can avoid bankruptcy. When you are looking for debt help, you must make sure you look for an agency that is trustworthy. You can study a bit about the background of the agency before you decide to hire their services. Debt management consultants that are trained well can really help you get out of debt and provide you ways to do well financially. On the other hand, if they are not good enough it could only mean a waste of time and effort. Hence it is very important that people looking for debt help must make sure they find the best counselors.
These consultants are not magicians but they have helped many a person buried in debt to come back on the right track. If your debts are turning out to be a burden, good debt consultants will give you the debt help that you need to take control of your cash and restore your financial health.
Advantages of using a DMP:
1. Once you enroll for help at a debt management company, you will get a fair idea as to how they will solve your problem with debt. They will give you al the debt help you need from how you should negotiate with your creditors regarding your debt to whether you should take a debt consolidation loan. A debt consolidation loan will be better for you as after paying your current creditors you will have only one loan to manage. This way you will have only one payment to make each month.
2. A second good thing about signing up for a debt management program is that not only will you be guided as to how to get out of debt but also to stay out of debt once you have arrived there. It will avert you from creating new upcoming debt. They will educate you on how to reduce your expenditure without making drastic changes to your style of living. They will supply you with ideas on taking loans that will help you meet your daily expenses without resorting to the use of the high-priced credit cards.
3. A debt management company will provide you with a debt counselor who is trained to give you a solution tailor-made to your specific financial situation. He will explain to you all the choices available along with the advantages and disadvantages. They might propose that you go in for debt consolidation or make payments directly to the company so that they will take care of your monthly payments to your creditors. This could make it a lot easier for you as they will disburse the amount to your various creditors whom you don’t have to face at all. If you do opt for a DMP, you will avoid bankruptcy and your debt will certainly come down in a few months and you could be living a life free of debt as early as 2 years from the time you started using their services.
When you opt for debt help with a debt management company, you must make sure that you create the best possible environment by:
• Being honest: Even if you fell very small about your financial situation you must tell your counselor everything so that he has all the details in order to help you better.
• Being certain about what you desire: Work out the amount you are able to pay each month and set a target for yourself as to when you want to be out of debt. Accordingly the counselor will work out a plan for you.
• Being practical: Don’t expect that the counselor will make your debt vanish into thin air with a wave of the wand. Your financial responsibilities are still your own and will take a while for the situation to improve. If you make good use of the debt help your counselor gives you soon you will be reaping the benefits.
In a debt management plan or DMP you are assisted by expert professionals who will instruct you on how to solve your debt problems so that you can avoid bankruptcy. When you are looking for debt help, you must make sure you look for an agency that is trustworthy. You can study a bit about the background of the agency before you decide to hire their services. Debt management consultants that are trained well can really help you get out of debt and provide you ways to do well financially. On the other hand, if they are not good enough it could only mean a waste of time and effort. Hence it is very important that people looking for debt help must make sure they find the best counselors.
These consultants are not magicians but they have helped many a person buried in debt to come back on the right track. If your debts are turning out to be a burden, good debt consultants will give you the debt help that you need to take control of your cash and restore your financial health.
Advantages of using a DMP:
1. Once you enroll for help at a debt management company, you will get a fair idea as to how they will solve your problem with debt. They will give you al the debt help you need from how you should negotiate with your creditors regarding your debt to whether you should take a debt consolidation loan. A debt consolidation loan will be better for you as after paying your current creditors you will have only one loan to manage. This way you will have only one payment to make each month.
2. A second good thing about signing up for a debt management program is that not only will you be guided as to how to get out of debt but also to stay out of debt once you have arrived there. It will avert you from creating new upcoming debt. They will educate you on how to reduce your expenditure without making drastic changes to your style of living. They will supply you with ideas on taking loans that will help you meet your daily expenses without resorting to the use of the high-priced credit cards.
3. A debt management company will provide you with a debt counselor who is trained to give you a solution tailor-made to your specific financial situation. He will explain to you all the choices available along with the advantages and disadvantages. They might propose that you go in for debt consolidation or make payments directly to the company so that they will take care of your monthly payments to your creditors. This could make it a lot easier for you as they will disburse the amount to your various creditors whom you don’t have to face at all. If you do opt for a DMP, you will avoid bankruptcy and your debt will certainly come down in a few months and you could be living a life free of debt as early as 2 years from the time you started using their services.
When you opt for debt help with a debt management company, you must make sure that you create the best possible environment by:
• Being honest: Even if you fell very small about your financial situation you must tell your counselor everything so that he has all the details in order to help you better.
• Being certain about what you desire: Work out the amount you are able to pay each month and set a target for yourself as to when you want to be out of debt. Accordingly the counselor will work out a plan for you.
• Being practical: Don’t expect that the counselor will make your debt vanish into thin air with a wave of the wand. Your financial responsibilities are still your own and will take a while for the situation to improve. If you make good use of the debt help your counselor gives you soon you will be reaping the benefits.
How To Use Credit Consolidation To Get Out Of Debt
By: Jon Arnold
Credit consolidation is an excellent to get your debt under control, without the need to file bankruptcy or fall behind on your bills. All too often, people acquire more debt than they can repay each month. Therefore, they are left with limited options. Some of the options available to consumers can leave a negative impact on their overall credit. Therefore, it is important to consider all of the options available.
With credit consolidation, you simply compile all of your debt into on easy to make payment. You can do this a variety of different ways. One of the most common ways to consolidation your debt is through a personal loan or a home equity loan.
With a personal loan, you simply take out an additional loan, which is large enough to pay off all of your other debts. Many loan companies will pay your creditors directly. However, if you would choose, you can have the personal loan deposited into your bank account and then you can pay your creditors individually. One downfall of a personal loan is if you are currently behind on your other credit payments, you may have a harder time acquiring the personal loan you need to consolidate your debt.
The other danger with having this money deposited directly into your bank account is that you need to remember WHY that money was put there and use it accordingly. You got that debt consolidation loan to pay off your debts, but there is going to be huge temptation to just pay the minimums on your overdue accounts instead of paying them off, and then go out and splurge the rest of it. This is eventually going to put you in an even worse situation than you are now, so be aware of this temptation and do not let it happen to you.
With a home equity loan, you will need to use the equity you have built up in your home, in order to pay off all of your debt. The current value of your home, minus your loan balance will give you the amount of equity you qualify for. Like a personal loan, you can then use the money to consolidate your debt.
Another way to consolidate your debt is through a zero interest or low interest rate credit card. If you have a limited amount of debt, then you can apply for a credit card that carries either an interest rate of zero percent or one that has an extremely low interest rate. Like with the loans, you can then use the credit card to pay off your other debt.
Credit consolidation not only helps you to keep up with your monthly debt payments, but it also can save you a considerable amount of money over the long haul. When you combine all of your debt into one payment, you narrow down the amount of interest you are paying out each month. Overall time, if you are paying less on interest, you will get you will be able to pay off your debt in a timelier manner, therefore saving your on interest payments.
Credit consolidation can also lower the amount of money you pay out each month. Once you have consolidated all of your debt, you will free up some of some of your money each month. Therefore, you will have more money to put towards other monthly expenses.
No matter what your reason for considering credit consolidation, it is important that you have a full understanding of how it works. As well, you will want to make sure you check around with various lenders, so that you can obtain the best possible deal available. By consolidating your debt, you can save yourself from falling into a financial hardship and even from the need to file bankruptcy.
For more insights and additional information about the process of Credit Consolidation as well as getting a free and very aggressive credit consolidation online quote online, please visit our web site at www.debtconsolidationstrategies.com
Credit consolidation is an excellent to get your debt under control, without the need to file bankruptcy or fall behind on your bills. All too often, people acquire more debt than they can repay each month. Therefore, they are left with limited options. Some of the options available to consumers can leave a negative impact on their overall credit. Therefore, it is important to consider all of the options available.
With credit consolidation, you simply compile all of your debt into on easy to make payment. You can do this a variety of different ways. One of the most common ways to consolidation your debt is through a personal loan or a home equity loan.
With a personal loan, you simply take out an additional loan, which is large enough to pay off all of your other debts. Many loan companies will pay your creditors directly. However, if you would choose, you can have the personal loan deposited into your bank account and then you can pay your creditors individually. One downfall of a personal loan is if you are currently behind on your other credit payments, you may have a harder time acquiring the personal loan you need to consolidate your debt.
The other danger with having this money deposited directly into your bank account is that you need to remember WHY that money was put there and use it accordingly. You got that debt consolidation loan to pay off your debts, but there is going to be huge temptation to just pay the minimums on your overdue accounts instead of paying them off, and then go out and splurge the rest of it. This is eventually going to put you in an even worse situation than you are now, so be aware of this temptation and do not let it happen to you.
With a home equity loan, you will need to use the equity you have built up in your home, in order to pay off all of your debt. The current value of your home, minus your loan balance will give you the amount of equity you qualify for. Like a personal loan, you can then use the money to consolidate your debt.
Another way to consolidate your debt is through a zero interest or low interest rate credit card. If you have a limited amount of debt, then you can apply for a credit card that carries either an interest rate of zero percent or one that has an extremely low interest rate. Like with the loans, you can then use the credit card to pay off your other debt.
Credit consolidation not only helps you to keep up with your monthly debt payments, but it also can save you a considerable amount of money over the long haul. When you combine all of your debt into one payment, you narrow down the amount of interest you are paying out each month. Overall time, if you are paying less on interest, you will get you will be able to pay off your debt in a timelier manner, therefore saving your on interest payments.
Credit consolidation can also lower the amount of money you pay out each month. Once you have consolidated all of your debt, you will free up some of some of your money each month. Therefore, you will have more money to put towards other monthly expenses.
No matter what your reason for considering credit consolidation, it is important that you have a full understanding of how it works. As well, you will want to make sure you check around with various lenders, so that you can obtain the best possible deal available. By consolidating your debt, you can save yourself from falling into a financial hardship and even from the need to file bankruptcy.
For more insights and additional information about the process of Credit Consolidation as well as getting a free and very aggressive credit consolidation online quote online, please visit our web site at www.debtconsolidationstrategies.com
Wednesday, October 29, 2008
Have You Considered Debt Settlement For Your Financial Crisis?
By: Jon Arnold
If you are drowning in debt, debt settlement may be the answer you are looking for. Although it may have an impact on your overall credit rating, the damage is minor compared to other options, such as filing bankruptcy.
With debt settlement, you work with your creditors to pay off your debt, for an amount less than what you actually owe. For example, if you currently owe $10,000 on one of your credit cards, your creditor may accept $7,000 a payment in full. Generally speaking, companies will take anywhere between 25% and 75% of the overall balance. Creditors would much rather accept partial payment, rather than you filing bankruptcy, in which they will not receive any of their money.
A settlement company can help you negotiate your overall debt with your creditors. They act as a go between, for you and your creditors. Although you will be required to pay them a fee, they are very likely able to negotiate your debt down further than you would be able to yourself.
Once you creditors have received the agreed upon amount for your debt, they will then consider your debt as paid in full. At this time, the creditors will report to the credit bureaus that you have fulfilled your payment requirements. However, any of the debt that was delinquent before you began the settlement process, will still remain on your credit report.
A debt settlement differs greatly from debt consolidation. With debt consolidation, you will need to either obtain some type of loan or use a low interest rate credit card to consolidate all of your debt. Consolidating your debt simply means that you compile all of your debt into one easy to make payment. With either the loan or the credit card you will pay off all of your creditors in full.
If you choose to work with a settlement company, it is important that you choose one with a good reputation. While there are many legitimate companies out there, there are also companies simply looking to take your money. Therefore, check with the Better Business Bureau and family and friends before choosing a company to work with.
Companies generally do not advertise that they will do a debt settlement. Likewise, they generally do not make it an easy process for anyone looking to use a settlement as a means to end their financial situation. Often times, creditors choose not to work with consumers on a settlement until they are three to six months behind on their payments. Meanwhile, you are left trying to avoid debt collectors, until you make some type of settlement arrangements.
Although no one likes to believe they are drowning in debt and cannot meet their financial obligations, for many, this is a reality. There are a variety of different options that will help you get back on your feet. However, some of them, such as bankruptcy, can have a long term effect on your credit. Others, like debt settlement can help you eliminate your debt, without causing a lasting negative impact on your credit.
For more insights and additional information on how you can use Debt Settlement to put an end to your financial stress as well as seeing many resources that can help you with this process, please visit our web site at www.debtconsolidationstrategies.com
If you are drowning in debt, debt settlement may be the answer you are looking for. Although it may have an impact on your overall credit rating, the damage is minor compared to other options, such as filing bankruptcy.
With debt settlement, you work with your creditors to pay off your debt, for an amount less than what you actually owe. For example, if you currently owe $10,000 on one of your credit cards, your creditor may accept $7,000 a payment in full. Generally speaking, companies will take anywhere between 25% and 75% of the overall balance. Creditors would much rather accept partial payment, rather than you filing bankruptcy, in which they will not receive any of their money.
A settlement company can help you negotiate your overall debt with your creditors. They act as a go between, for you and your creditors. Although you will be required to pay them a fee, they are very likely able to negotiate your debt down further than you would be able to yourself.
Once you creditors have received the agreed upon amount for your debt, they will then consider your debt as paid in full. At this time, the creditors will report to the credit bureaus that you have fulfilled your payment requirements. However, any of the debt that was delinquent before you began the settlement process, will still remain on your credit report.
A debt settlement differs greatly from debt consolidation. With debt consolidation, you will need to either obtain some type of loan or use a low interest rate credit card to consolidate all of your debt. Consolidating your debt simply means that you compile all of your debt into one easy to make payment. With either the loan or the credit card you will pay off all of your creditors in full.
If you choose to work with a settlement company, it is important that you choose one with a good reputation. While there are many legitimate companies out there, there are also companies simply looking to take your money. Therefore, check with the Better Business Bureau and family and friends before choosing a company to work with.
Companies generally do not advertise that they will do a debt settlement. Likewise, they generally do not make it an easy process for anyone looking to use a settlement as a means to end their financial situation. Often times, creditors choose not to work with consumers on a settlement until they are three to six months behind on their payments. Meanwhile, you are left trying to avoid debt collectors, until you make some type of settlement arrangements.
Although no one likes to believe they are drowning in debt and cannot meet their financial obligations, for many, this is a reality. There are a variety of different options that will help you get back on your feet. However, some of them, such as bankruptcy, can have a long term effect on your credit. Others, like debt settlement can help you eliminate your debt, without causing a lasting negative impact on your credit.
For more insights and additional information on how you can use Debt Settlement to put an end to your financial stress as well as seeing many resources that can help you with this process, please visit our web site at www.debtconsolidationstrategies.com
Debt Consolidation Loans: No More Multiple Loans Worries
By: Lesley Lyon
As many loans are offered to everyone today, it is very easy for a borrower to take wrong decisions and become a prey. Borrowing several loans takes one into a severe debt situation and it is a common mistake done by many debtors. You have to take some serious efforts to overcome these debts and the best option is debt consolidation loans. A debt consolidation loan works in a highly practical setup for the borrower’s convenience. You can borrow debt consolidation loans for paying off previous debts to multiple lenders and convert your debt into a single debt and paying a single installment.
A debt consolidation loan provides many advantages that are helpful to you. When compared with your earlier debts, with high rate of interest the debt consolidation loan will be offered at a very less interest rate. By this way you can save a lot of money that you would have been spent as interest for multiple lenders. As a borrower you will be making a single installment payment instead of multiple payments for different lenders. Debt consolidation loan reduces your monthly money outflow and makes it comfortable for you to repay.
Debt consolidation loans are offered to the debtors in two ways. If you don't wish to pledge collateral as well as want to obtain a debt consolidation loan, then the best way for you is to opt for unsecured debt consolidation loan. If you are ready to pledge collateral so that you can get low interest rates for the debt consolidation loan, then you can choose secured debt consolidation loan.
With credit card dues and many outstanding loans, only debt consolidation loan will save you from going bankrupt. Bad credit score along with bankruptcy will make your life difficult and you cannot obtain any fresh loan. Hence it's recommended for everybody to avoid bankruptcy. A debt consolidation loan is generally referred to as a safe loan when compared with your existing unsecured personal loans and credit card dues. Therefore you will have advantage by replacing your other loans of high rates of interest with a debt consolidation loan with lower interest rates.
The debt consolidation loan provides you a lot of advantages like:
A single loan facilitates single monthly installment payment and you don't have to deal with multiple lenders. Debt consolidation loans can be easily managed. The interest rate of debt consolidation loan is comparatively less and the loan is also secured. As the interest rates are low in this loan your monthly installments will be also small. Debt consolidation loan gets you tax benefits for the interest you pay on the loan.
Though you have many advantages by obtaining debt consolidation loan there are also few disadvantages. They are:
Your loan period will be longer than your existing unsecured loans and hence you may have to pay large amount as loan interest. If you pledge collateral for debt consolidation loan, if any default occurs in payment the lender may take possession of your property.
Selecting right debt consolidation loan can solve all your debt woes. For all your current financial problems you can find easy solutions with debt consolidation loan and if the borrower follows proper thought with action in the future, he will avoid becoming a debtor again.
Visit www.cashguru.info for a complete understanding of several debt consolidation methods. Also, check out www.debteraserzone.com to find out which credit card will suit your needs well and how to manage credit card debts in a better way.
As many loans are offered to everyone today, it is very easy for a borrower to take wrong decisions and become a prey. Borrowing several loans takes one into a severe debt situation and it is a common mistake done by many debtors. You have to take some serious efforts to overcome these debts and the best option is debt consolidation loans. A debt consolidation loan works in a highly practical setup for the borrower’s convenience. You can borrow debt consolidation loans for paying off previous debts to multiple lenders and convert your debt into a single debt and paying a single installment.
A debt consolidation loan provides many advantages that are helpful to you. When compared with your earlier debts, with high rate of interest the debt consolidation loan will be offered at a very less interest rate. By this way you can save a lot of money that you would have been spent as interest for multiple lenders. As a borrower you will be making a single installment payment instead of multiple payments for different lenders. Debt consolidation loan reduces your monthly money outflow and makes it comfortable for you to repay.
Debt consolidation loans are offered to the debtors in two ways. If you don't wish to pledge collateral as well as want to obtain a debt consolidation loan, then the best way for you is to opt for unsecured debt consolidation loan. If you are ready to pledge collateral so that you can get low interest rates for the debt consolidation loan, then you can choose secured debt consolidation loan.
With credit card dues and many outstanding loans, only debt consolidation loan will save you from going bankrupt. Bad credit score along with bankruptcy will make your life difficult and you cannot obtain any fresh loan. Hence it's recommended for everybody to avoid bankruptcy. A debt consolidation loan is generally referred to as a safe loan when compared with your existing unsecured personal loans and credit card dues. Therefore you will have advantage by replacing your other loans of high rates of interest with a debt consolidation loan with lower interest rates.
The debt consolidation loan provides you a lot of advantages like:
A single loan facilitates single monthly installment payment and you don't have to deal with multiple lenders. Debt consolidation loans can be easily managed. The interest rate of debt consolidation loan is comparatively less and the loan is also secured. As the interest rates are low in this loan your monthly installments will be also small. Debt consolidation loan gets you tax benefits for the interest you pay on the loan.
Though you have many advantages by obtaining debt consolidation loan there are also few disadvantages. They are:
Your loan period will be longer than your existing unsecured loans and hence you may have to pay large amount as loan interest. If you pledge collateral for debt consolidation loan, if any default occurs in payment the lender may take possession of your property.
Selecting right debt consolidation loan can solve all your debt woes. For all your current financial problems you can find easy solutions with debt consolidation loan and if the borrower follows proper thought with action in the future, he will avoid becoming a debtor again.
Visit www.cashguru.info for a complete understanding of several debt consolidation methods. Also, check out www.debteraserzone.com to find out which credit card will suit your needs well and how to manage credit card debts in a better way.
Tuesday, October 28, 2008
Advantages and disadvantages of payday loan
By: Alexander Maletin
A payday loan or cash advance is a small, short-term financial instrument that allows a borrower to cover his or her expenses until the next paycheck.
Typically, the amounts of such loans range of $100 to $1500, on 10-14 days term and have enough high interest rates (APR) from 390 to 900 percent.
Payday lending is regulated at the state level - each state has its own laws regarding payday loans. Meanwhile, the U.S. Congress passed a law in October 2006 that limits lending to military personnel at 36% APR. The Defense Department was concerned that payday lenders could cause financial challenges for soldiers and even jeopardize security clearances.
Some federal banking regulators are trying to limit or prohibit payday loans not just for military personnel, but for all customers. The high interest rates are considered as a hard financial blow to the lower and middle class people who are the primary borrowers.
Lenders prove that payday loans are often the only available way to get money for customers with bad credit history or who can not obtain another lower-interest alternative, such as a bank loan or a credit card. In their turn, critics say that the most of borrowers find themselves in a worse financial situation when they have to repay their loan. Many of them get trapped into a cycle of unsecured debt.
Statistics compiled by the Center for Responsible Lending show that the large part of the payday lending's profit comes from repeat consumers who can not repay prior loans on the due date and instead prolong their loans, paying extra fees each time.
Retail lending.
Customers come to a payday lending store and qualify for a small cash advance in the range of $100 to $500 with payment on the borrower's next paycheck.
As loan charges, the customer will pay from $15 to $30 per $100 borrowed for 14 days period, which translates to interest rates of 390 to 780 percent (APR). On the due date the borrower returns to payday lending store and writes a check to his lender in the full amount of the cash advance plus charges.
If the borrower does not repay the loan, the lender may process the check traditionally or through electronic withdrawal from the borrower's bank account.
If there is not enough money to cover the check at the checking account, the customer will face extra fees from his bank in addition to the costs of the loan. Meanwhile, the most of payday lenders offer an extended payment plan with no additional fees for customers who can not pay out their loan at the due date. In several states like Washington, extended payment plans are required by state law.
Internet lending.
You can get a payday loan not only from payday lending store, but online through special lending websites. Typically, a customer fills out a simple online application form, where he or she indicates required personal and bank account information, Social Security number and employer information. Some lenders require fax copies of a check, a recent bank statement, and signed paperwork. After instant approving the loan amount is direct deposited into the borrower's checking account. On the due date loan payment with fees is electronically withdrawn from borrower's account.
A payday loan or cash advance is a small, short-term financial instrument that allows a borrower to cover his or her expenses until the next paycheck.
Typically, the amounts of such loans range of $100 to $1500, on 10-14 days term and have enough high interest rates (APR) from 390 to 900 percent.
Payday lending is regulated at the state level - each state has its own laws regarding payday loans. Meanwhile, the U.S. Congress passed a law in October 2006 that limits lending to military personnel at 36% APR. The Defense Department was concerned that payday lenders could cause financial challenges for soldiers and even jeopardize security clearances.
Some federal banking regulators are trying to limit or prohibit payday loans not just for military personnel, but for all customers. The high interest rates are considered as a hard financial blow to the lower and middle class people who are the primary borrowers.
Lenders prove that payday loans are often the only available way to get money for customers with bad credit history or who can not obtain another lower-interest alternative, such as a bank loan or a credit card. In their turn, critics say that the most of borrowers find themselves in a worse financial situation when they have to repay their loan. Many of them get trapped into a cycle of unsecured debt.
Statistics compiled by the Center for Responsible Lending show that the large part of the payday lending's profit comes from repeat consumers who can not repay prior loans on the due date and instead prolong their loans, paying extra fees each time.
Retail lending.
Customers come to a payday lending store and qualify for a small cash advance in the range of $100 to $500 with payment on the borrower's next paycheck.
As loan charges, the customer will pay from $15 to $30 per $100 borrowed for 14 days period, which translates to interest rates of 390 to 780 percent (APR). On the due date the borrower returns to payday lending store and writes a check to his lender in the full amount of the cash advance plus charges.
If the borrower does not repay the loan, the lender may process the check traditionally or through electronic withdrawal from the borrower's bank account.
If there is not enough money to cover the check at the checking account, the customer will face extra fees from his bank in addition to the costs of the loan. Meanwhile, the most of payday lenders offer an extended payment plan with no additional fees for customers who can not pay out their loan at the due date. In several states like Washington, extended payment plans are required by state law.
Internet lending.
You can get a payday loan not only from payday lending store, but online through special lending websites. Typically, a customer fills out a simple online application form, where he or she indicates required personal and bank account information, Social Security number and employer information. Some lenders require fax copies of a check, a recent bank statement, and signed paperwork. After instant approving the loan amount is direct deposited into the borrower's checking account. On the due date loan payment with fees is electronically withdrawn from borrower's account.
Debt Help Is Closer Than You Think
By: Ted Batron
There isn't any question , credit cards have changed our lives . I wont say that credit cards in themselves are good or bad, but frankly they have placed too many people, too deep in debt. Those deep in credit card debt often resort to bankruptcy or other drastic measures. Measures leading to reduced credit scores , and the inability to borrow money when it may be necessary. Home and car loans become difficult or impossible, and if they are approved the interest is exorbitant . You can get credit card debt help, you just need to know your options.
If you look through any magazine , watch the late night commercials on television or surf the Internet , look at all the businesses offering help with credit card debt. Filing for bankruptcy can eliminate credit card debt, offering some relief . It is also guaranteed to destroy your credit for a minimum of 7 years, and most likely 10 years or more.
If you are seriously in debt you may be able to get credit card debt help from personal loans by people they know. If you still have good credit, you could consider a debt consolidation loan. This comes with a warning however . If you borrow against a secured asset like your home , to pay off an unsecured debt like your credit cards - you haven't gotten rid of the debt . You are paying it every month when you make your mortgage payment. Depending on your situation, this might be an acceptible strategy, if you incur no further credit card debt and you quickly pay the higher mortgage down to it's original amount.
One situation that we can run into is we sometimes get credit card debt help from a new loan , and then once again run up the limit on the cards and have the same situation occur. it is necessesary to destroy all of your credit cards but one if you decide to use a debt consolidation loan. The one card that is kept, should never be carried, but simply left at home for emergencies.
If you need credit card debt help, you are definitely not alone. Once technique that can be used is to shop around for a new card. Some will offer 0% on balance transfers. This is a great way to get balances paid down. Again its vital to destroy the old card so that the problem doesn't pop up again.
You should understand how interest is calculated on all of your credit cards. Many people never really look at their bill. If your looking for credit card debt help, you need to know how interest is calculated, and how much of your payment is actually being applied to the principle balance vs. just paying interest.
Credit cards can change your life for better or for worse. They can provide a convenient way to smooth out emergencies, or leave you miserable and mired in credit card debt. Help can come in many forms, but there is light at the end of the tunnel. You can take control of your credit card debt, and live a debt free life.
Ted Batron is a financial expert who specializes in debt counseling and custom debt elimination plans. He has developed a short eCourse that can help those who want to learn how to negotiate, eliminate and settle their credit card debt at a 30-70% reduction and become debt free. If you would like to know more about Ted Batrons "5 Debt Settlement Secrets You Should Know" eCourse, visit www.No-Debt.net
There isn't any question , credit cards have changed our lives . I wont say that credit cards in themselves are good or bad, but frankly they have placed too many people, too deep in debt. Those deep in credit card debt often resort to bankruptcy or other drastic measures. Measures leading to reduced credit scores , and the inability to borrow money when it may be necessary. Home and car loans become difficult or impossible, and if they are approved the interest is exorbitant . You can get credit card debt help, you just need to know your options.
If you look through any magazine , watch the late night commercials on television or surf the Internet , look at all the businesses offering help with credit card debt. Filing for bankruptcy can eliminate credit card debt, offering some relief . It is also guaranteed to destroy your credit for a minimum of 7 years, and most likely 10 years or more.
If you are seriously in debt you may be able to get credit card debt help from personal loans by people they know. If you still have good credit, you could consider a debt consolidation loan. This comes with a warning however . If you borrow against a secured asset like your home , to pay off an unsecured debt like your credit cards - you haven't gotten rid of the debt . You are paying it every month when you make your mortgage payment. Depending on your situation, this might be an acceptible strategy, if you incur no further credit card debt and you quickly pay the higher mortgage down to it's original amount.
One situation that we can run into is we sometimes get credit card debt help from a new loan , and then once again run up the limit on the cards and have the same situation occur. it is necessesary to destroy all of your credit cards but one if you decide to use a debt consolidation loan. The one card that is kept, should never be carried, but simply left at home for emergencies.
If you need credit card debt help, you are definitely not alone. Once technique that can be used is to shop around for a new card. Some will offer 0% on balance transfers. This is a great way to get balances paid down. Again its vital to destroy the old card so that the problem doesn't pop up again.
You should understand how interest is calculated on all of your credit cards. Many people never really look at their bill. If your looking for credit card debt help, you need to know how interest is calculated, and how much of your payment is actually being applied to the principle balance vs. just paying interest.
Credit cards can change your life for better or for worse. They can provide a convenient way to smooth out emergencies, or leave you miserable and mired in credit card debt. Help can come in many forms, but there is light at the end of the tunnel. You can take control of your credit card debt, and live a debt free life.
Ted Batron is a financial expert who specializes in debt counseling and custom debt elimination plans. He has developed a short eCourse that can help those who want to learn how to negotiate, eliminate and settle their credit card debt at a 30-70% reduction and become debt free. If you would like to know more about Ted Batrons "5 Debt Settlement Secrets You Should Know" eCourse, visit www.No-Debt.net
Monday, October 27, 2008
Choose a shorter debt consolidation mortgage loan
By: F.J.Yanie
When in financial difficulties, one of the many loans one turns to for financial help is a debt consolidation mortgage loan. With this loan, it is possible to reduce interest rates and monthly payments to make it easier for you to pay off your debt. However though the debt consolidation mortgage loan is advantageous, it has its share of disadvantages too.
The main advantage with the debt consolidation mortgage loan is that it has a lower interest rate than credit card and unsecured loan rates. With the debt consolidation mortgage loan, you pay all your previous debts and end up with a single loan and a single monthly installment.
The interest of debt consolidation mortgage loan is tax deductible
The interest rate of the debt consolidation mortgage loan is usually lower than the other loan and credit card rates. So you save money by having to pay lower monthly payments, and find it possible to pay off your debt rapidly. Moreover, a debt consolidation mortgage loan will be for a longer term, which in turn leads to lower monthly installments.
Another advantage of the interest of the debt consolidation mortgage loan is that it is tax deductible while the credit card interest isn’t. However student loan interest is tax deductible; so it is better not to consolidate it for a higher interest rate loan.
The disadvantage of a debt consolidation mortgage loan is that though your monthly installments are lower, you have to pay more in fees and interest. Origination fees for refinancing a debt consolidation mortgage loan can add to thousands while other home equity loans cost hundreds or nothing for opening.
Don’t delay in making monthly payments
Delay in making your payments for the debt consolidation mortgage loan may lead to adding up of interest payments. This means that though you may have a longer term to repay the loan amount, in the long run, the monthly installments you pay for the term lead to an amount that is much higher than the monthly installments would have been for a loan of a higher interest rate.
If you decide to use a debt consolidation mortgage loan to repay all older loans and credit card balances, it is important that you shop around for loans with low rates and fees. This is to ensure that you save the most money through the loan. Basically, it is better to choose a debt consolidation mortgage loan of a shorter term from companies like www.vuemortgageloan.com to avoid paying large interest payments.
F.J.Yanie is the owner of www.vuemortgageloan.com, the best mortgage loan sites dealing with all varieties of mortgage loan for you .For more information on Debt Consolidation Mortgage Loan ,pls visit his site at www.vuemortgageloan.com
When in financial difficulties, one of the many loans one turns to for financial help is a debt consolidation mortgage loan. With this loan, it is possible to reduce interest rates and monthly payments to make it easier for you to pay off your debt. However though the debt consolidation mortgage loan is advantageous, it has its share of disadvantages too.
The main advantage with the debt consolidation mortgage loan is that it has a lower interest rate than credit card and unsecured loan rates. With the debt consolidation mortgage loan, you pay all your previous debts and end up with a single loan and a single monthly installment.
The interest of debt consolidation mortgage loan is tax deductible
The interest rate of the debt consolidation mortgage loan is usually lower than the other loan and credit card rates. So you save money by having to pay lower monthly payments, and find it possible to pay off your debt rapidly. Moreover, a debt consolidation mortgage loan will be for a longer term, which in turn leads to lower monthly installments.
Another advantage of the interest of the debt consolidation mortgage loan is that it is tax deductible while the credit card interest isn’t. However student loan interest is tax deductible; so it is better not to consolidate it for a higher interest rate loan.
The disadvantage of a debt consolidation mortgage loan is that though your monthly installments are lower, you have to pay more in fees and interest. Origination fees for refinancing a debt consolidation mortgage loan can add to thousands while other home equity loans cost hundreds or nothing for opening.
Don’t delay in making monthly payments
Delay in making your payments for the debt consolidation mortgage loan may lead to adding up of interest payments. This means that though you may have a longer term to repay the loan amount, in the long run, the monthly installments you pay for the term lead to an amount that is much higher than the monthly installments would have been for a loan of a higher interest rate.
If you decide to use a debt consolidation mortgage loan to repay all older loans and credit card balances, it is important that you shop around for loans with low rates and fees. This is to ensure that you save the most money through the loan. Basically, it is better to choose a debt consolidation mortgage loan of a shorter term from companies like www.vuemortgageloan.com to avoid paying large interest payments.
F.J.Yanie is the owner of www.vuemortgageloan.com, the best mortgage loan sites dealing with all varieties of mortgage loan for you .For more information on Debt Consolidation Mortgage Loan ,pls visit his site at www.vuemortgageloan.com
The Options Of Debt Consolidation And Negtiation
By: Alisdair Cosgrove
After struggling with a heavy load of debt many people would do almost anything they have to in order to get free from it.After the payments are made the balances stay almost the same and it seems that the debt will simply never go away.What is really needed in most situations is a proven solution to end your current debt circumstances.
More of the payment funds will be applied to the principal of the loan instead of the interest if more than minimum payments are made and this could help break the cycle of debt.By making these types of payments on a regular basis you will find that the balances will begin to go down.
Some of the infomercials on television may offer a solution to excessive debt or you may have some type of pop up ad on your computer which says it can solve all of your financial worries.Some of the offers to help are just a scheme to steal from you, but some of them will be legitimate ways to offers to find a solution to debt, so it is wise to move forward slowly so you won’t be taken advantage of.
The option of debt consolidation could help you to find relief from the expensive monthly payments of several high interest loans by combining all of them into one single account with one monthly payment that could be less expensive.The interest rate on a debt reduction plan may be less expensive than the interest rates on each of the individual loan accounts.Savings or some other financial obligation could be the recipient of the money saved when you use this option and it’s lower payments.
There are a few disadvantages to debt consolidation plans, one of which is that the credit cards involved in the debt consolidation program will all have to be destroyed.You will have to pay administration fees which will be included in the monthly payments on your debt consolidation program.The administration fees could assessed as a flat rate or the creditor, who is the coordinator of the debt consolidation program may assess the fees.
If you have already tried debt consolidation but could not keep up with the payment plan, the related plan of debt negotiation may be the best one for you to use.Some people can use debt negotiation or debt settlement arrangements to reduce their total debt or even erase it completely.
The company will be acting as representative in all matters that are related to your debt when you hire a debt negotiation service.The debt negotiation agency makes arrangements with the creditors for a pre-set amount to be paid, so you will not pay the creditors directly.To pay for expenses and make arrangements to pay the creditors the pre-set amount, a fee will be paid to the debt negotiation service and put into an escrow account.
Your credit score will be adversely affected by debt negotiation, but if the debt negotiation agency makes a request for the creditors to receive a copy of your credit report, this will verify that the debt has now been paid in full.
Alisdair Cosgrove likes to write about debt issues and advise on how people can save money on their debt consolidation and can find more of his debt work at tfgi.com, offering consolidation loans and also great information on free credit reports.
After struggling with a heavy load of debt many people would do almost anything they have to in order to get free from it.After the payments are made the balances stay almost the same and it seems that the debt will simply never go away.What is really needed in most situations is a proven solution to end your current debt circumstances.
More of the payment funds will be applied to the principal of the loan instead of the interest if more than minimum payments are made and this could help break the cycle of debt.By making these types of payments on a regular basis you will find that the balances will begin to go down.
Some of the infomercials on television may offer a solution to excessive debt or you may have some type of pop up ad on your computer which says it can solve all of your financial worries.Some of the offers to help are just a scheme to steal from you, but some of them will be legitimate ways to offers to find a solution to debt, so it is wise to move forward slowly so you won’t be taken advantage of.
The option of debt consolidation could help you to find relief from the expensive monthly payments of several high interest loans by combining all of them into one single account with one monthly payment that could be less expensive.The interest rate on a debt reduction plan may be less expensive than the interest rates on each of the individual loan accounts.Savings or some other financial obligation could be the recipient of the money saved when you use this option and it’s lower payments.
There are a few disadvantages to debt consolidation plans, one of which is that the credit cards involved in the debt consolidation program will all have to be destroyed.You will have to pay administration fees which will be included in the monthly payments on your debt consolidation program.The administration fees could assessed as a flat rate or the creditor, who is the coordinator of the debt consolidation program may assess the fees.
If you have already tried debt consolidation but could not keep up with the payment plan, the related plan of debt negotiation may be the best one for you to use.Some people can use debt negotiation or debt settlement arrangements to reduce their total debt or even erase it completely.
The company will be acting as representative in all matters that are related to your debt when you hire a debt negotiation service.The debt negotiation agency makes arrangements with the creditors for a pre-set amount to be paid, so you will not pay the creditors directly.To pay for expenses and make arrangements to pay the creditors the pre-set amount, a fee will be paid to the debt negotiation service and put into an escrow account.
Your credit score will be adversely affected by debt negotiation, but if the debt negotiation agency makes a request for the creditors to receive a copy of your credit report, this will verify that the debt has now been paid in full.
Alisdair Cosgrove likes to write about debt issues and advise on how people can save money on their debt consolidation and can find more of his debt work at tfgi.com, offering consolidation loans and also great information on free credit reports.
Sunday, October 26, 2008
Can Student Debt Be Re-Consolidated?
By: Devora Witts
There is quite a discussion as regards to whether student debt can be re-consolidated or not. As most questions regarding financial and economic issues, there is not a unanimous answer. The financial market is flexible enough to always offer possibilities when an alternative to a current state of affairs is needed. Yet re-consolidation is definitely not the rule but the exception.
The common doubts about this matter are: whether re-consolidation is possible or not, whether you can re-consolidate with the same lender or with a different one, whether a new loan is needed for re-consolidating or not, and finally and probably the most important question of all: which loan types can be re-consolidated and which ones can not?
Re-Consolidation: Can Do?, Can Not Do?, Depending On The Loan Type
Whether it is possible to re-consolidate your student debt or not depends on which type of student debt you have. If you want to consolidate federal student loans, you will be able to do it only once with a few exceptions. If you want to consolidate private student debt there are really no limits as to how many times you can consolidate your debt. However, if the purpose is to obtain better interest rates and/or reduce your monthly payments, you will experience more limitations even with private student debt.
Federal Student Debt Re-Consolidation
Only in certain circumstances can federal student debt be consolidated more than once: If you have obtained an additional federal student loan after your previous student debt consolidation was completed, you will be able to add the new federal student loan to the previous consolidated federal student debt loan and consolidate it once again.
If for some reason you left a previous loan out of the student debt consolidation process and then you decide that you want to include it, you can consolidate your student debt once again combining the outstanding consolidated student debt loan with the previous unconsolidated federal student loan. Yet, this is not a common scenario and seldom occurs.
Same Lender Or Different Lender
As stated above, with federal student debt consolidation can be done only once with the above explained exceptions. Thus, even with a different lender, you will not be able to consolidate your debt again. At least not without resorting to secured loans. But when it comes to private student debt, there is absolutely no obstacle to consolidate with a different lender or with the same lender (if he is willing to).
Interest Rate And Upcoming Regulation Changes
All consolidation lenders offer the same interest rate when it comes to federal student debt consolidation programs and thus, what differs are the additional benefits that lenders provide with their programs. Make sure that you qualify to obtain those benefits because otherwise, you will end up with the same interest rate and nothing more.
Also, despite what is being stated on many forums and media discussions, it does not seem as there are projects for modifying the regulations regarding re-consolidation on federal student loans. So, do not expect to be able to re-consolidate your federal student debt in the near future and most importantly, do not plan on it.
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 Unsecured Bad Credit Loans and Fast Tenant Loans thoroughly you can visit her site www.badcreditloanservices.com. If the link doesn't work,just copy and paste www.badcreditloanservices.com in your browser’s address bar.
There is quite a discussion as regards to whether student debt can be re-consolidated or not. As most questions regarding financial and economic issues, there is not a unanimous answer. The financial market is flexible enough to always offer possibilities when an alternative to a current state of affairs is needed. Yet re-consolidation is definitely not the rule but the exception.
The common doubts about this matter are: whether re-consolidation is possible or not, whether you can re-consolidate with the same lender or with a different one, whether a new loan is needed for re-consolidating or not, and finally and probably the most important question of all: which loan types can be re-consolidated and which ones can not?
Re-Consolidation: Can Do?, Can Not Do?, Depending On The Loan Type
Whether it is possible to re-consolidate your student debt or not depends on which type of student debt you have. If you want to consolidate federal student loans, you will be able to do it only once with a few exceptions. If you want to consolidate private student debt there are really no limits as to how many times you can consolidate your debt. However, if the purpose is to obtain better interest rates and/or reduce your monthly payments, you will experience more limitations even with private student debt.
Federal Student Debt Re-Consolidation
Only in certain circumstances can federal student debt be consolidated more than once: If you have obtained an additional federal student loan after your previous student debt consolidation was completed, you will be able to add the new federal student loan to the previous consolidated federal student debt loan and consolidate it once again.
If for some reason you left a previous loan out of the student debt consolidation process and then you decide that you want to include it, you can consolidate your student debt once again combining the outstanding consolidated student debt loan with the previous unconsolidated federal student loan. Yet, this is not a common scenario and seldom occurs.
Same Lender Or Different Lender
As stated above, with federal student debt consolidation can be done only once with the above explained exceptions. Thus, even with a different lender, you will not be able to consolidate your debt again. At least not without resorting to secured loans. But when it comes to private student debt, there is absolutely no obstacle to consolidate with a different lender or with the same lender (if he is willing to).
Interest Rate And Upcoming Regulation Changes
All consolidation lenders offer the same interest rate when it comes to federal student debt consolidation programs and thus, what differs are the additional benefits that lenders provide with their programs. Make sure that you qualify to obtain those benefits because otherwise, you will end up with the same interest rate and nothing more.
Also, despite what is being stated on many forums and media discussions, it does not seem as there are projects for modifying the regulations regarding re-consolidation on federal student loans. So, do not expect to be able to re-consolidate your federal student debt in the near future and most importantly, do not plan on it.
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 Unsecured Bad Credit Loans and Fast Tenant Loans thoroughly you can visit her site www.badcreditloanservices.com. If the link doesn't work,just copy and paste www.badcreditloanservices.com in your browser’s address bar.
Saturday, October 25, 2008
Benefits of Consolidating Unsecured Debt to your Mortgage
By: Colin Kidd
Trying to have a hold on all of your debt can be difficult at the best of times. You may have multiple loans and debts for different reasons; debt consolidation can help reduce your overall repayment and manage your debt more effectively. Debt consolidation is simple; it brings all of the debt together under one single loan. Many people consolidate their loan into their mortgage, making it easier to bring it all together. There are multiple benefits to bringing all debt into one, but there are four major benefits of consolidating unsecured debt to your mortgage.
Does the Interest Rate make a difference?
By using Debt Consolidation you can actually lower your overall interest rate that you are paying. The idea is that you are moving all of your debt to one location; this often requires the need to re-configure and restructure an existing loan. If you consolidate your loans, certain debts may be a lower interest rate because the new interest rate is better than the old one. While this may not happen with all debts, just because the new loan is being stretched over a longer period may reduce the repayment and hence make the loan more manageable. For example:
• The repayment on a $20,000 loan at 11% over 3 years is $652 per month. If this loan was consolidated into a 30 year mortgage with the same interest rate the repayment would be $190 each month. Effectively releasing cash flow of $462 each month.
The above example shows how people can get a handle on their finances. It could help you afford your monthly payments, where you may not have been able to as separate debts.
Why use a Mortgage to secure the debt?
The loan options available to consolidate your debt are using a Secured Consolidation Loan or an Unsecured Consolidation Loan. When a lender has security against a loan product they will offer you a higher loan amount and a better interest rate. Both these features allow a better result when consolidating your debts. A low loan amount may prevent you from consolidating all of your debts. At times this may prevent you from obtaining a Debt Consolidation Loan all together.
Convenience and Simplicity
Another benefit of debt consolidation, however, is the simple convenience factor. By consolidating your debts, you are bringing all of your debt into one place. Many people often have 3, 4, or 5 loans and sometimes up to 10 loans; this can be very difficult to manage and keep all of your loan agreements. Paying one lender, with one interest rate, and one monthly payment can make your finances significantly simpler to manage.
Conclusion
Many people bring their loans together through debt consolidation as a way to make their lives easier and simpler; debt is never fun for anyone, but debt consolidation allows you to manage your debt more effectively and take control. Consolidation can allow for lower monthly payments, and the convenience of having it all in one place. Consolidating your debt into a mortgage is an even better way to bring everything together under one roof; and make your debt work for you a little more.
Colin Kidd is a specialist in providing Debt Consolidation for families and business. Colin Kidd is the director of Loan Saver Network and has been providing Debt Consolidation options since 1999.
Trying to have a hold on all of your debt can be difficult at the best of times. You may have multiple loans and debts for different reasons; debt consolidation can help reduce your overall repayment and manage your debt more effectively. Debt consolidation is simple; it brings all of the debt together under one single loan. Many people consolidate their loan into their mortgage, making it easier to bring it all together. There are multiple benefits to bringing all debt into one, but there are four major benefits of consolidating unsecured debt to your mortgage.
Does the Interest Rate make a difference?
By using Debt Consolidation you can actually lower your overall interest rate that you are paying. The idea is that you are moving all of your debt to one location; this often requires the need to re-configure and restructure an existing loan. If you consolidate your loans, certain debts may be a lower interest rate because the new interest rate is better than the old one. While this may not happen with all debts, just because the new loan is being stretched over a longer period may reduce the repayment and hence make the loan more manageable. For example:
• The repayment on a $20,000 loan at 11% over 3 years is $652 per month. If this loan was consolidated into a 30 year mortgage with the same interest rate the repayment would be $190 each month. Effectively releasing cash flow of $462 each month.
The above example shows how people can get a handle on their finances. It could help you afford your monthly payments, where you may not have been able to as separate debts.
Why use a Mortgage to secure the debt?
The loan options available to consolidate your debt are using a Secured Consolidation Loan or an Unsecured Consolidation Loan. When a lender has security against a loan product they will offer you a higher loan amount and a better interest rate. Both these features allow a better result when consolidating your debts. A low loan amount may prevent you from consolidating all of your debts. At times this may prevent you from obtaining a Debt Consolidation Loan all together.
Convenience and Simplicity
Another benefit of debt consolidation, however, is the simple convenience factor. By consolidating your debts, you are bringing all of your debt into one place. Many people often have 3, 4, or 5 loans and sometimes up to 10 loans; this can be very difficult to manage and keep all of your loan agreements. Paying one lender, with one interest rate, and one monthly payment can make your finances significantly simpler to manage.
Conclusion
Many people bring their loans together through debt consolidation as a way to make their lives easier and simpler; debt is never fun for anyone, but debt consolidation allows you to manage your debt more effectively and take control. Consolidation can allow for lower monthly payments, and the convenience of having it all in one place. Consolidating your debt into a mortgage is an even better way to bring everything together under one roof; and make your debt work for you a little more.
Colin Kidd is a specialist in providing Debt Consolidation for families and business. Colin Kidd is the director of Loan Saver Network and has been providing Debt Consolidation options since 1999.
Quick Tips On Debt Consolidation
By: Melissa Kellett
Debt consolidation is not such a complicated process and it can provide many advantages to those who are buried deep in debt due to excessive spending or unexpected circumstances. Here are some tips to understand debt consolidation and make the most out of it.
Debt consolidation is ideal for getting rid of that expensive credit card debt that can cost you up to 20% in terms on interests for financing unpaid balances. Credit card debt is probably the most expensive kind of debt only comparable to payday loans and cash advance loans. Thus, using debt consolidation to eliminate it is a smart thing to do.
Interest Rate And Collateral
The interest rate charged for debt consolidation loans tends to be lower than the rate charged for many other financial products, especially credit cards and pay day loans. However, this is due to the fact that most consolidation loans are secured loans. The collateral used to guarantee the loan is the equity left on your home. Consolidation loans are thus, home equity loans or second mortgages.
There are unsecured consolidation loans as well but these loans charge a significantly higher interest rate and due to the unsecured nature they are harder to qualify for. Thus, they are not so convenient for those buried in debt and are only suitable for those with small credit card debts that they want to consolidate to bring some ease to their income.
Debt To Consolidate
Not all debt is suitable for consolidation and this fact has to be taken into account when considering debt consolidation programs. If you want to consolidate your debt you need first to know the nature of your debt. Credit card debt is perfect for consolidation but subsidized student loans are not.
Basically, high interest rate debt is suitable for debt consolidation as long as there are no pre-payment penalty fees associated with it. And subsidized loans or loans with low interest rates such as federal student loans, government loan for first time home buyers, mortgage loans or home equity loans can be consolidated but nothing good can be obtained out of it.
Reducing The Monthly Payments And Saving Money
By consolidating your debt you can reduce the amount of money you pay each month in terms of debt repayments and you can save money. These two things can sometimes be done simultaneously and then, debt consolidation is undoubtedly to your advantage. However, it is not always possible to reduce the monthly payments and save money at the same time.
By extending the repayment program you can reduce the monthly payments. However, since the interests are calculated on a yearly basis, an extra year implies adding up to the overall interests and thus extending your loan repayment schedule too much may imply that you will lose the money you where saving, in the long run.
Thus, if you want low monthly payments and saving money at the same time, you need to find equilibrium between the loan length and your ability to face the monthly payments. If your monthly payments decrease due to a lower interest rate, there is no problem, but if you reduce them by extending the loan period, you are actually spending more in the long run.
Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about Guaranteed Loans for Bad Credit and Unsecured Loans you can visit her site www.speedybadcreditloans.com/
Debt consolidation is not such a complicated process and it can provide many advantages to those who are buried deep in debt due to excessive spending or unexpected circumstances. Here are some tips to understand debt consolidation and make the most out of it.
Debt consolidation is ideal for getting rid of that expensive credit card debt that can cost you up to 20% in terms on interests for financing unpaid balances. Credit card debt is probably the most expensive kind of debt only comparable to payday loans and cash advance loans. Thus, using debt consolidation to eliminate it is a smart thing to do.
Interest Rate And Collateral
The interest rate charged for debt consolidation loans tends to be lower than the rate charged for many other financial products, especially credit cards and pay day loans. However, this is due to the fact that most consolidation loans are secured loans. The collateral used to guarantee the loan is the equity left on your home. Consolidation loans are thus, home equity loans or second mortgages.
There are unsecured consolidation loans as well but these loans charge a significantly higher interest rate and due to the unsecured nature they are harder to qualify for. Thus, they are not so convenient for those buried in debt and are only suitable for those with small credit card debts that they want to consolidate to bring some ease to their income.
Debt To Consolidate
Not all debt is suitable for consolidation and this fact has to be taken into account when considering debt consolidation programs. If you want to consolidate your debt you need first to know the nature of your debt. Credit card debt is perfect for consolidation but subsidized student loans are not.
Basically, high interest rate debt is suitable for debt consolidation as long as there are no pre-payment penalty fees associated with it. And subsidized loans or loans with low interest rates such as federal student loans, government loan for first time home buyers, mortgage loans or home equity loans can be consolidated but nothing good can be obtained out of it.
Reducing The Monthly Payments And Saving Money
By consolidating your debt you can reduce the amount of money you pay each month in terms of debt repayments and you can save money. These two things can sometimes be done simultaneously and then, debt consolidation is undoubtedly to your advantage. However, it is not always possible to reduce the monthly payments and save money at the same time.
By extending the repayment program you can reduce the monthly payments. However, since the interests are calculated on a yearly basis, an extra year implies adding up to the overall interests and thus extending your loan repayment schedule too much may imply that you will lose the money you where saving, in the long run.
Thus, if you want low monthly payments and saving money at the same time, you need to find equilibrium between the loan length and your ability to face the monthly payments. If your monthly payments decrease due to a lower interest rate, there is no problem, but if you reduce them by extending the loan period, you are actually spending more in the long run.
Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about Guaranteed Loans for Bad Credit and Unsecured Loans you can visit her site www.speedybadcreditloans.com/
What Is Worth Knowing About Debt Consolidation
By: JohnJames
Having a load of debt hanging over your head can make you live your life in an edgy manner. Many people live with debts and are unsure about the best way to get rid of it. If you are struggling with bad credit, you can easily tackle it with a well chosen consolidation plan.
Debts have the horrible potential to turn you into a fugitive in your own home. People with debts often spend time dodging visits from their credit card agents or unplug the phone to keep from hearing the bothersome messages from creditors that prompt them to pay up their debts. You can take away the shame of having debts with a debt consolidation loan.
A debt consolidation loan is often taken and built around flexibility. Debt consolidation loans enable you to pay back debts at your earliest possible convenience. Usually, debt consolidator negotiators work out an arrangement where the repayment period for your debt is longer, thus giving you plenty of time to pay back.
Some debt consolidator companies attract customers with a low interest rate which they up as soon as the customers are on board. You should endeavor to find out if the consolidation company you are targeting has hidden charges or if their APR will change after some time so that you can prepare for it.
Debt consolidation is pretty easy to obtain especially from financial institutions. Credit institutions are a better debt consolidation choice than finance bodies such as banks because they give lesser interest rates.
The disadvantage of taking secured debt consolidation loans is that your collateral will be taken away if you fail to make your monthly payments on the loan. Many debt consolidation secured loans are preferred because of their low interest rates.
Getting a debt consolidation loan can be the first step to being set free from debts. A debt consolidation loan enables you to pay off all your credit card debts effortlessly. Once you get a debt consolidation loan, you should strive to meet up with the monthly payments so that you don't incur more debts.
Do not jump at the first debt consolidation deal that you see online. To find the best debt consolidation deal online, you should search intensively and settle for the best of the best. A comparative analysis of various debt consolidation quotes can enable you select the right deal for your situation.
It doesn't matter how much you think you know regarding debt consolidation information such as resources about Consolidation Debt Non Profit Service , or even Christian Debt Consolidation Mortgage Lending Current , read this wonderful Debt Consolidation site to be entertained with truly necessary information --> debtconsolidation
Having a load of debt hanging over your head can make you live your life in an edgy manner. Many people live with debts and are unsure about the best way to get rid of it. If you are struggling with bad credit, you can easily tackle it with a well chosen consolidation plan.
Debts have the horrible potential to turn you into a fugitive in your own home. People with debts often spend time dodging visits from their credit card agents or unplug the phone to keep from hearing the bothersome messages from creditors that prompt them to pay up their debts. You can take away the shame of having debts with a debt consolidation loan.
A debt consolidation loan is often taken and built around flexibility. Debt consolidation loans enable you to pay back debts at your earliest possible convenience. Usually, debt consolidator negotiators work out an arrangement where the repayment period for your debt is longer, thus giving you plenty of time to pay back.
Some debt consolidator companies attract customers with a low interest rate which they up as soon as the customers are on board. You should endeavor to find out if the consolidation company you are targeting has hidden charges or if their APR will change after some time so that you can prepare for it.
Debt consolidation is pretty easy to obtain especially from financial institutions. Credit institutions are a better debt consolidation choice than finance bodies such as banks because they give lesser interest rates.
The disadvantage of taking secured debt consolidation loans is that your collateral will be taken away if you fail to make your monthly payments on the loan. Many debt consolidation secured loans are preferred because of their low interest rates.
Getting a debt consolidation loan can be the first step to being set free from debts. A debt consolidation loan enables you to pay off all your credit card debts effortlessly. Once you get a debt consolidation loan, you should strive to meet up with the monthly payments so that you don't incur more debts.
Do not jump at the first debt consolidation deal that you see online. To find the best debt consolidation deal online, you should search intensively and settle for the best of the best. A comparative analysis of various debt consolidation quotes can enable you select the right deal for your situation.
It doesn't matter how much you think you know regarding debt consolidation information such as resources about Consolidation Debt Non Profit Service , or even Christian Debt Consolidation Mortgage Lending Current , read this wonderful Debt Consolidation site to be entertained with truly necessary information --> debtconsolidation
Friday, October 24, 2008
What one needs to learn about Debt Consolidation services
By: ianbrinkley ianbrinkley
How Debt Consolidation services rescue people from the trap of debt
Debt is a curse of the modern civilization. A person can fall in its trap for many reasons. People who take more than one loans and can not keep their monthly expenses in check often incur debts. The advent and rapid growth of the credit cards has also increased the `chances of acquiring debt for the spendthrift lot.
When a person gets trapped in debt he faces several serious problems. First of all, his credit score takes a nosedive. No financial institution or bank would like to issue further loans to him till he improves the Poor Credit score. The calls of the creditors can be pretty embarrassing for a person.
The best solution to get rid of the menace of debt is the Debt Consolidation services. This is a process which enables a debt ridden person to merge all his debts into one. Thereafter he is required to pay back the credit in monthly installments. This is distributed to his creditors by the debt consolidation agency. This way he can clear his debts in a safe and effective manner by paying through a single installment.
As a matter of fact, debt consolidation can be done in several manners including debt consolidation mortgages, debt consolidation loans as well as debt counseling. However, it would be wrong to assume that debt consolidation can cut down the quantity of the entire debt. This is actually far from the truth. Nevertheless, the interest rates of the debts can be reduced by resorting to the debt consolidation services.
A debt ridden person can avail the debt consolidation loans from several credit unions and banks. While opting for such a loan a person is not required to mention the purpose. These loans are available in two forms. They are known as secured and unsecured debt consolidation loans. For obtaining the secured loans a person needs to provide collateral. On the contrary, the unsecured loans do not have such prerequisites. The interest rate for the debt consolidation loans depends on factors like the monetary position of the borrower and his credit score.
Even if a person has a poor credit rating, he can still obtain the debt consolidation loans. This is an ideal way to improve the credit score for a person. A debt consolidation agency can stop the creditors from calling up a debt ridden person and help him in reimbursing the dues in a way suited for him. This way a person can regain his self esteem and make plan to clear his credits systematically.
However, one needs to be careful about choosing the proper debt consolidation company from the available lot. The yellow pages contain the list of the reliable debt consolidation companies. As an alternative, a person can also ask his colleagues and friends for a reliable and reputed debt consolidation agency. One can look up the web for finding any type of information on debt consolidation programs and the institutions offering counseling and other relevant services. In this context, the site badcredit-loanlocator.com deserves a special mention.
Ian Brinkley is author of this article on Unsecured Loans. Find more information about Personal loans here.
How Debt Consolidation services rescue people from the trap of debt
Debt is a curse of the modern civilization. A person can fall in its trap for many reasons. People who take more than one loans and can not keep their monthly expenses in check often incur debts. The advent and rapid growth of the credit cards has also increased the `chances of acquiring debt for the spendthrift lot.
When a person gets trapped in debt he faces several serious problems. First of all, his credit score takes a nosedive. No financial institution or bank would like to issue further loans to him till he improves the Poor Credit score. The calls of the creditors can be pretty embarrassing for a person.
The best solution to get rid of the menace of debt is the Debt Consolidation services. This is a process which enables a debt ridden person to merge all his debts into one. Thereafter he is required to pay back the credit in monthly installments. This is distributed to his creditors by the debt consolidation agency. This way he can clear his debts in a safe and effective manner by paying through a single installment.
As a matter of fact, debt consolidation can be done in several manners including debt consolidation mortgages, debt consolidation loans as well as debt counseling. However, it would be wrong to assume that debt consolidation can cut down the quantity of the entire debt. This is actually far from the truth. Nevertheless, the interest rates of the debts can be reduced by resorting to the debt consolidation services.
A debt ridden person can avail the debt consolidation loans from several credit unions and banks. While opting for such a loan a person is not required to mention the purpose. These loans are available in two forms. They are known as secured and unsecured debt consolidation loans. For obtaining the secured loans a person needs to provide collateral. On the contrary, the unsecured loans do not have such prerequisites. The interest rate for the debt consolidation loans depends on factors like the monetary position of the borrower and his credit score.
Even if a person has a poor credit rating, he can still obtain the debt consolidation loans. This is an ideal way to improve the credit score for a person. A debt consolidation agency can stop the creditors from calling up a debt ridden person and help him in reimbursing the dues in a way suited for him. This way a person can regain his self esteem and make plan to clear his credits systematically.
However, one needs to be careful about choosing the proper debt consolidation company from the available lot. The yellow pages contain the list of the reliable debt consolidation companies. As an alternative, a person can also ask his colleagues and friends for a reliable and reputed debt consolidation agency. One can look up the web for finding any type of information on debt consolidation programs and the institutions offering counseling and other relevant services. In this context, the site badcredit-loanlocator.com deserves a special mention.
Ian Brinkley is author of this article on Unsecured Loans. Find more information about Personal loans here.
Debt Consolidation Benefits
By: megan m
We live, without doubt, in a modern society where debt is one of the many problems we have to deal with on a regular basis. Forced by current economical conditions and our very own possibilities, we have come to rely on credit cards and lines of credit in order to take care of our needs. Such financial obligations have led to many problems, such as bankruptcy and bad credit, drawing lending institutions together in coming up with better borrowing techniques. Debt consolidation has become somewhat of a common occurrence in much of the population.
Debt is equal with owing money to a bank or a lender, being obligated to repay the borrowed sum of money within a set period of time, with interest added to the original amount. We all know how hard it can be sometimes to find a lending institution willing to grant us the credit we are interested in. There are several types of loans out there, with some of the most commonly used being: secured, unsecured, private and public loans. When you decide to take a secured loan, which means that you will guarantee for the amount borrowed with your assets (e.g.: house, car). If you default on your payments, then the bank or the organization that has granted you the credit will repossess the property and sell it in order to recuperate the debt.
Unsecured loans are preferred by most people as they do not imply losing ones property in case of defaulted payments. The amount that one has to pay includes the original sum with added interest rates and other charges. It is highly important that one understands the influence inflation and deflation can have on someone’s credit. For example, if inflation affects the currency in which you have taken the credit, prepare yourself for higher payments and interest rates. Realizing the gravity of the situation, some lending institutions have started to provide credit opportunities taking into account the rate of inflation.
Credit is needed as most of us do not have enough available cash to purchase large or important assets, such as cars, appliances and other various properties. Nevertheless, when considering a new line of credit, we should stop a moment and think. Are we going to be able to make the monthly payments? Not paying the credit will result in accumulated debt, bad credit scores and in some extreme cases, even bankruptcy. Next, the only solutions available will be debt consolidation, bankruptcy loans and trying to repair your bad credit.
Debt consolidation loans have started to catch on to those who have taken out several loans or lines of credit and were not able to pay them. What is the advantage of debt consolidation loans? First of all, debt consolidation means that you will take a new, single line of credit that is big enough to pay off all the others you have. Once you have managed to do that, prepare to enjoy lower interest rates and all of the benefits that come with having just one loan. It’s easier to pay and some even have an interest rate that is fixed throughout the entire period of the loan. What more can you ask for?
In order for people to escape their credit card debt and other financial obligations, they prefer to resort to debt consolidation. A secured loan can provide one with lower interest rates, the borrower using existing assets as collateral. However, there is always the risk of the property being foreclosed in the case of defaulted payments, especially when the debt is high. Why do lenders prefer secured loans in their turn, especially as the interest rate is lower? The risk associated with the credit provided to the borrower is reduced as well, due to the fact that assets have been introduced into agreement as collateral. Consider all of your options carefully before you choose debt consolidation. Discuss all your options and alternatives with your bank or lending institutions.
Author, Willie Tomlin, has 33 years experience as a researcher in financial matters. Mr. Tomlin has acquired vast amounts of knowledge over the years in regards to loans, bad credit, and debt consolidation loans. Every effort is given towards helping you obtain a loan, purchase a car, or obtain a payday loan. If you can't get money from us, you can't get money from anywhere. For more information please visit: www.where-the-money-is-and-how-to-get-it.com
We live, without doubt, in a modern society where debt is one of the many problems we have to deal with on a regular basis. Forced by current economical conditions and our very own possibilities, we have come to rely on credit cards and lines of credit in order to take care of our needs. Such financial obligations have led to many problems, such as bankruptcy and bad credit, drawing lending institutions together in coming up with better borrowing techniques. Debt consolidation has become somewhat of a common occurrence in much of the population.
Debt is equal with owing money to a bank or a lender, being obligated to repay the borrowed sum of money within a set period of time, with interest added to the original amount. We all know how hard it can be sometimes to find a lending institution willing to grant us the credit we are interested in. There are several types of loans out there, with some of the most commonly used being: secured, unsecured, private and public loans. When you decide to take a secured loan, which means that you will guarantee for the amount borrowed with your assets (e.g.: house, car). If you default on your payments, then the bank or the organization that has granted you the credit will repossess the property and sell it in order to recuperate the debt.
Unsecured loans are preferred by most people as they do not imply losing ones property in case of defaulted payments. The amount that one has to pay includes the original sum with added interest rates and other charges. It is highly important that one understands the influence inflation and deflation can have on someone’s credit. For example, if inflation affects the currency in which you have taken the credit, prepare yourself for higher payments and interest rates. Realizing the gravity of the situation, some lending institutions have started to provide credit opportunities taking into account the rate of inflation.
Credit is needed as most of us do not have enough available cash to purchase large or important assets, such as cars, appliances and other various properties. Nevertheless, when considering a new line of credit, we should stop a moment and think. Are we going to be able to make the monthly payments? Not paying the credit will result in accumulated debt, bad credit scores and in some extreme cases, even bankruptcy. Next, the only solutions available will be debt consolidation, bankruptcy loans and trying to repair your bad credit.
Debt consolidation loans have started to catch on to those who have taken out several loans or lines of credit and were not able to pay them. What is the advantage of debt consolidation loans? First of all, debt consolidation means that you will take a new, single line of credit that is big enough to pay off all the others you have. Once you have managed to do that, prepare to enjoy lower interest rates and all of the benefits that come with having just one loan. It’s easier to pay and some even have an interest rate that is fixed throughout the entire period of the loan. What more can you ask for?
In order for people to escape their credit card debt and other financial obligations, they prefer to resort to debt consolidation. A secured loan can provide one with lower interest rates, the borrower using existing assets as collateral. However, there is always the risk of the property being foreclosed in the case of defaulted payments, especially when the debt is high. Why do lenders prefer secured loans in their turn, especially as the interest rate is lower? The risk associated with the credit provided to the borrower is reduced as well, due to the fact that assets have been introduced into agreement as collateral. Consider all of your options carefully before you choose debt consolidation. Discuss all your options and alternatives with your bank or lending institutions.
Author, Willie Tomlin, has 33 years experience as a researcher in financial matters. Mr. Tomlin has acquired vast amounts of knowledge over the years in regards to loans, bad credit, and debt consolidation loans. Every effort is given towards helping you obtain a loan, purchase a car, or obtain a payday loan. If you can't get money from us, you can't get money from anywhere. For more information please visit: www.where-the-money-is-and-how-to-get-it.com
Thursday, October 23, 2008
What Are The Risks Of Debt Consolidation?
By: Melissa Kellett
Debt consolidation is not such wonderful solution as it may seem. There are many consequences implied in undertaking a debt consolidation program that can really affect your finances and credit situation for many years. And even though sometimes the only other solution is bankruptcy, you need to take many precautions before hiring the services of a debt consolidation agency.
If you think that debt consolidation will solve all your debt problems, you need to think again. It is true that debt consolidation can solve some terminal credit situations but that is mainly because things couldn’t be worse. Debt Consolidation can be very risky, if you are not careful enough when selecting your debt consolidation agency and you don’t control the things they do with your finances, you may end up in a worse situation than when you started.
When Should I Consolidate My Debt?
A debt consolidation program should be undertaken only if your debt cannot be refinanced any further. It is always better to refinance your current debt than to contact a creditor and tell them that you can’t repay your debt and you need to negotiate new loan terms or else you’ll have to file for bankruptcy and he may never recover his money (This is what debt consolidation is, to make things clear).
Though most lenders will agree to new terms, the approach that debt consolidation implies will destroy your ability to get finance in the future. For a long time, you won’t be able to get approved for a loan or credit card again without the aid of your debt consolidation agency.
Thus, only if your debt has become unbearable and you can no longer meet your monthly payments should you consider joining a debt consolidation program. Moreover, you’ll loose control over your finances, you probably won’t be able to use your credit cards and store cards anymore and you’ll have to learn to live by the day as all the efforts will go towards eliminating your debt.
Beware Of Secure Debt Consolidation Loans
Debt consolidation agencies usually suggest that you take a debt consolidation loan in order to pay off your debt. The advantage of this kind of loans is that the interest rate charged is lower and that the repayment program is a lot longer. Thus your monthly payments will be affordable and you will recover a significant part of your income so you can save money, repay other debt or pay for necessary expenses.
However, on the dark side of these loans, the fact that these loans are secured implies that you are risking your home because if you fail to meet the loan installments, the lender can always recover his money by taking legal action and claiming the property. Secured consolidation loans are an excellent solution to combine with other forms of debt consolidation and obtain debt relief, but the risks involved should be considered carefully.
Choosing The Debt Consolidation Agency Carefully
There are many companies that have been working for many years in the financial industry and know how to provide consolidation services affecting your finances and credit score the least possible. But there are others with less experience that may ruin your credit score for many years during this process. And, sadly, there are even others that are nothing but scams. So, you should be extremely careful when choosing the company you are planning to work with.
Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about Debt Consolidation Loans and Personal Loans you can visit her site www.speedybadcreditloans.com/
Debt consolidation is not such wonderful solution as it may seem. There are many consequences implied in undertaking a debt consolidation program that can really affect your finances and credit situation for many years. And even though sometimes the only other solution is bankruptcy, you need to take many precautions before hiring the services of a debt consolidation agency.
If you think that debt consolidation will solve all your debt problems, you need to think again. It is true that debt consolidation can solve some terminal credit situations but that is mainly because things couldn’t be worse. Debt Consolidation can be very risky, if you are not careful enough when selecting your debt consolidation agency and you don’t control the things they do with your finances, you may end up in a worse situation than when you started.
When Should I Consolidate My Debt?
A debt consolidation program should be undertaken only if your debt cannot be refinanced any further. It is always better to refinance your current debt than to contact a creditor and tell them that you can’t repay your debt and you need to negotiate new loan terms or else you’ll have to file for bankruptcy and he may never recover his money (This is what debt consolidation is, to make things clear).
Though most lenders will agree to new terms, the approach that debt consolidation implies will destroy your ability to get finance in the future. For a long time, you won’t be able to get approved for a loan or credit card again without the aid of your debt consolidation agency.
Thus, only if your debt has become unbearable and you can no longer meet your monthly payments should you consider joining a debt consolidation program. Moreover, you’ll loose control over your finances, you probably won’t be able to use your credit cards and store cards anymore and you’ll have to learn to live by the day as all the efforts will go towards eliminating your debt.
Beware Of Secure Debt Consolidation Loans
Debt consolidation agencies usually suggest that you take a debt consolidation loan in order to pay off your debt. The advantage of this kind of loans is that the interest rate charged is lower and that the repayment program is a lot longer. Thus your monthly payments will be affordable and you will recover a significant part of your income so you can save money, repay other debt or pay for necessary expenses.
However, on the dark side of these loans, the fact that these loans are secured implies that you are risking your home because if you fail to meet the loan installments, the lender can always recover his money by taking legal action and claiming the property. Secured consolidation loans are an excellent solution to combine with other forms of debt consolidation and obtain debt relief, but the risks involved should be considered carefully.
Choosing The Debt Consolidation Agency Carefully
There are many companies that have been working for many years in the financial industry and know how to provide consolidation services affecting your finances and credit score the least possible. But there are others with less experience that may ruin your credit score for many years during this process. And, sadly, there are even others that are nothing but scams. So, you should be extremely careful when choosing the company you are planning to work with.
Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about Debt Consolidation Loans and Personal Loans you can visit her site www.speedybadcreditloans.com/
Credit Repair: Undoing Your Damage
By: Chane Steiner
With appropriate measures and the right information, you can repair your credit rating and increase your credit scores. This one fact, however, is only half the battle. Because there is so much misinformation tossed around regarding credit repair, finding the truth and learning your federal rights under the Fair Credit Reporting Act is a must. Once you understand how the American credit system works, you are on your way to living a life of financial prosperity.
Here you'll find a few steps that will aid you in your efforts to repair your credit scores:
Obtain Your Credit Report
Request a copy of your credit report from the three major consumer reporting agencies. This will also tell you what your credit scores are.
Evaluate Your Credit Reports
Once you have your reports, you’ll want to ensure the information is correct. There are mistakes in nearly 80% of all credit reports.
Dispute Questionable Items
If you discover an inaccuracy or accounts you're not familiar with, dispute it with the reporting credit bureau. If the creditors cannot verify an account, the bureaus must remove all references from your credit report.
Consumer reporting agencies receive thousands of disputes each day. These disputes are handled by employees who make minimum wages with only a very short time to investigate each dispute. If the negative accounts aren't removed after your initial dispute, don't despair. It make take a few efforts to get the CRAs to remove the account. Be patient and allow four to five weeks between your efforts.
Pay Off Bad Debt
Paying off your most recent past due accounts can increase your credit scores. Use caution when paying on accounts more than a few years old, as paying them can bring your down your scores even more by triggering a "current" status on the account.
Negotiate with the creditor to update the account to reflect “paid as agreed” or to remove the account BEFORE you pay it. It’s difficult to convince the creditor to update or remove it after payment because you don't have as much leverage. That said, it sometimes is easier to dispute paid accounts with the consumer reporting agencies.
Maintain and Utilize Credit to Your Advantage
Another important aspect with raising your credit scores is to keep your existing balances below 35% of your available credit limit. You’ll also want to minimize the number of inquiries you make by not applying for credit unless absolutely necessary.
Learn more about how to fix your bad credit or hire Lexington Law - the best credit repair service in the nation.
With appropriate measures and the right information, you can repair your credit rating and increase your credit scores. This one fact, however, is only half the battle. Because there is so much misinformation tossed around regarding credit repair, finding the truth and learning your federal rights under the Fair Credit Reporting Act is a must. Once you understand how the American credit system works, you are on your way to living a life of financial prosperity.
Here you'll find a few steps that will aid you in your efforts to repair your credit scores:
Obtain Your Credit Report
Request a copy of your credit report from the three major consumer reporting agencies. This will also tell you what your credit scores are.
Evaluate Your Credit Reports
Once you have your reports, you’ll want to ensure the information is correct. There are mistakes in nearly 80% of all credit reports.
Dispute Questionable Items
If you discover an inaccuracy or accounts you're not familiar with, dispute it with the reporting credit bureau. If the creditors cannot verify an account, the bureaus must remove all references from your credit report.
Consumer reporting agencies receive thousands of disputes each day. These disputes are handled by employees who make minimum wages with only a very short time to investigate each dispute. If the negative accounts aren't removed after your initial dispute, don't despair. It make take a few efforts to get the CRAs to remove the account. Be patient and allow four to five weeks between your efforts.
Pay Off Bad Debt
Paying off your most recent past due accounts can increase your credit scores. Use caution when paying on accounts more than a few years old, as paying them can bring your down your scores even more by triggering a "current" status on the account.
Negotiate with the creditor to update the account to reflect “paid as agreed” or to remove the account BEFORE you pay it. It’s difficult to convince the creditor to update or remove it after payment because you don't have as much leverage. That said, it sometimes is easier to dispute paid accounts with the consumer reporting agencies.
Maintain and Utilize Credit to Your Advantage
Another important aspect with raising your credit scores is to keep your existing balances below 35% of your available credit limit. You’ll also want to minimize the number of inquiries you make by not applying for credit unless absolutely necessary.
Learn more about how to fix your bad credit or hire Lexington Law - the best credit repair service in the nation.
Wednesday, October 22, 2008
The Importance of a Credit Report
By: Kendra Fagan
The three main credit reporting companies in the country are required under law to provide one free credit report (each) to anyone who requests them within any given year. The three large credit reporting companies are Equifax, Experian and TransUnion, and they are strictly monitored by Fair Credit Reporting Act (FCRA) to provide correct and true information.
Information from a person’s credit report provides companies, such as payday loan companies, mortgage lenders, insurance companies, and potential employers, information on where a person currently lives, where a person has lived in the past several years, the person’s financial history – including any bankruptcies – and whether or not a person has been involved in any legal proceedings in the past.
Companies use this information to figure out what sort of risk a person is in terms of whether or not money should be lent or credit should be issued to them. Because there is so much vital information included on a credit report, and it contains a good representation about a person’s ability to be responsible and trustworthy, it’s important for a person to monitor what is on his or her credit report, and ensure that everything on the report is correct and current.
The three main credit reporting companies in the United States all keep track of basically the same information. However, sometimes one credit agency will pick up and report slightly different information from the others. This is why it’s important to check all the information on your credit reports from all three companies on a yearly basis.
All of the reporting agencies have websites and toll-free telephone numbers which can be used to order free credit reports. If it seems time consuming to contact all three credit reporting agencies, there is a website called http://wwwcashloanplace.com which will provide free credit reports payday loan speicials and much more.
In order to obtain free credit reports either from one individual or all three different credit reporting agencies, personal information is needed. Some of the data that must be available are a social security number, current and previous addresses, and other information that should (hopefully) only be known by the person whose name is on the report(s).
In today’s age of obtaining information instantly via the internet, receiving copies of credit reports is no exception. If correct information is submitted online through one company such as, www.cashloanplace.com/creditreport.html, then the information on all three credit reports will almost instantly appear and be printable within seconds. On the other hand, if the credit reports are ordered via telephone, they may take a couple of weeks to arrive in the mail.
Once the credit reports are received, they should be thoroughly evaluated for any mistakes and inaccurate information. Any errors should be brought to the attention of the credit reporting company immediately. Under law, the credit reporting company must correct any and all mistakes, if there is proof that the mistakes and mis-information are legitimately incorrect. The agencies will work to determine if the errors are in need of correction and will usually make the changes on a credit report within a month. To get a copy of your free credit report, please visit www.cashloanplace.com/creditreport.html
www.cashloanplace.com
The three main credit reporting companies in the country are required under law to provide one free credit report (each) to anyone who requests them within any given year. The three large credit reporting companies are Equifax, Experian and TransUnion, and they are strictly monitored by Fair Credit Reporting Act (FCRA) to provide correct and true information.
Information from a person’s credit report provides companies, such as payday loan companies, mortgage lenders, insurance companies, and potential employers, information on where a person currently lives, where a person has lived in the past several years, the person’s financial history – including any bankruptcies – and whether or not a person has been involved in any legal proceedings in the past.
Companies use this information to figure out what sort of risk a person is in terms of whether or not money should be lent or credit should be issued to them. Because there is so much vital information included on a credit report, and it contains a good representation about a person’s ability to be responsible and trustworthy, it’s important for a person to monitor what is on his or her credit report, and ensure that everything on the report is correct and current.
The three main credit reporting companies in the United States all keep track of basically the same information. However, sometimes one credit agency will pick up and report slightly different information from the others. This is why it’s important to check all the information on your credit reports from all three companies on a yearly basis.
All of the reporting agencies have websites and toll-free telephone numbers which can be used to order free credit reports. If it seems time consuming to contact all three credit reporting agencies, there is a website called http://wwwcashloanplace.com which will provide free credit reports payday loan speicials and much more.
In order to obtain free credit reports either from one individual or all three different credit reporting agencies, personal information is needed. Some of the data that must be available are a social security number, current and previous addresses, and other information that should (hopefully) only be known by the person whose name is on the report(s).
In today’s age of obtaining information instantly via the internet, receiving copies of credit reports is no exception. If correct information is submitted online through one company such as, www.cashloanplace.com/creditreport.html, then the information on all three credit reports will almost instantly appear and be printable within seconds. On the other hand, if the credit reports are ordered via telephone, they may take a couple of weeks to arrive in the mail.
Once the credit reports are received, they should be thoroughly evaluated for any mistakes and inaccurate information. Any errors should be brought to the attention of the credit reporting company immediately. Under law, the credit reporting company must correct any and all mistakes, if there is proof that the mistakes and mis-information are legitimately incorrect. The agencies will work to determine if the errors are in need of correction and will usually make the changes on a credit report within a month. To get a copy of your free credit report, please visit www.cashloanplace.com/creditreport.html
www.cashloanplace.com
Reasons For Checking Your Credit Report
By: Sean Patrick
Your credit report and score tells lenders whether or not you are a good risk for a loan. Your credit history, payments, and account information are on this report. Your FICO score is also an important factor for lenders. The information contained in your credit report is used to generate your FICO score which acts as your credit "report card". A FICO score is not the same as your regular credit scores. It uses different set of rules & algorithms for coming up with your credit score. And many lenders utilize the FICO score to determine your creditworthiness. Therefore it may be prudent to see what's on your FICO score as well before applying for a loan.
Often the information contained in your credit report has some inaccuracies. This is why it's important to check your credit report on a regualr basis. At least once a year to ensure that the information is correct and up to date.
Reasons you should check your credit report include:
* Basic Inaccuracies
Payments that's have been made, but not credited to you. Late payments or having someone else’s date (especially if the names are similar) being mixed in with yours. If you notice inaccurate information, you must contact the credit reporting agency to get the mistake corrected.
* Tracking Payments
Many times, checks sent through the mail do not reach the accounting office of the company on time, or get lost in the mail. Such late or missed payment issues could be posted on your credit file. Therefore you would need to correct this information by contacting the creditor. If you don’t read your credit report, you will not know which payments have been received and properly reported.
* Identity Theft
Identity theft is one of the fastest growing crimes in thw U.S. It's one that has caused people to have poor credit ratings because someone has received credit or loans in their name and defaulted on the payments. Your credit report will show you the list of accounts that have been opened in your name. Check them carefully to ensure they match your personal financial details.
* Inquiries
Your credit report will list the names of companies or persons who have requested information regarding your credit history. Read them carefully to make there's no fraudulent activity and/or unauthorized entry that could be related to id theft. Also, too many inquiries are seen as unfavorable by lenders and will make it harder to obtain loans.
* Credit Fraud – Unauthorized Charges
Credit fraud involves the unauthorized use of your credit cards or account number to make charges on your account. Sometimes this is done so subtly that you do not notice the extra charges on your monthly statement. By viewing your credit report, you will be able to catch new activity on your accounts, especially if they are ones you haven’t been using.
When it comes to managing your credit worthiness, your credit report is your best resource. Viewing your credit report gives you the opportunity to manage your credit wisely. While planning a credit strategy to achieve future goals, you should regularly review your credit report to ensure an excellent credit rating.
*Free Credit Report Services
Free credit report services are not created equal. With some services, you're able to see what's on your credit report and score from all 3 major credit bureaus online - TransUnion, Equifax, and Experian. This is important because the data contained in one credit bureau file may not match what's on the others. Also, various lenders may choose to see one or more of your credit files. So it makes sense to obtain the most comprehensive report. And most services do not provide a free FICO score. You only get to see what's on your regular credit scores. These are some of the reasons why it makes sense to do your homework and make comparisons between the features they provide.
Sean Patrick is an expert on online consumer finance products such as free credit reports, loans, etc. For more information visit - www.creditreportcompare.com
Your credit report and score tells lenders whether or not you are a good risk for a loan. Your credit history, payments, and account information are on this report. Your FICO score is also an important factor for lenders. The information contained in your credit report is used to generate your FICO score which acts as your credit "report card". A FICO score is not the same as your regular credit scores. It uses different set of rules & algorithms for coming up with your credit score. And many lenders utilize the FICO score to determine your creditworthiness. Therefore it may be prudent to see what's on your FICO score as well before applying for a loan.
Often the information contained in your credit report has some inaccuracies. This is why it's important to check your credit report on a regualr basis. At least once a year to ensure that the information is correct and up to date.
Reasons you should check your credit report include:
* Basic Inaccuracies
Payments that's have been made, but not credited to you. Late payments or having someone else’s date (especially if the names are similar) being mixed in with yours. If you notice inaccurate information, you must contact the credit reporting agency to get the mistake corrected.
* Tracking Payments
Many times, checks sent through the mail do not reach the accounting office of the company on time, or get lost in the mail. Such late or missed payment issues could be posted on your credit file. Therefore you would need to correct this information by contacting the creditor. If you don’t read your credit report, you will not know which payments have been received and properly reported.
* Identity Theft
Identity theft is one of the fastest growing crimes in thw U.S. It's one that has caused people to have poor credit ratings because someone has received credit or loans in their name and defaulted on the payments. Your credit report will show you the list of accounts that have been opened in your name. Check them carefully to ensure they match your personal financial details.
* Inquiries
Your credit report will list the names of companies or persons who have requested information regarding your credit history. Read them carefully to make there's no fraudulent activity and/or unauthorized entry that could be related to id theft. Also, too many inquiries are seen as unfavorable by lenders and will make it harder to obtain loans.
* Credit Fraud – Unauthorized Charges
Credit fraud involves the unauthorized use of your credit cards or account number to make charges on your account. Sometimes this is done so subtly that you do not notice the extra charges on your monthly statement. By viewing your credit report, you will be able to catch new activity on your accounts, especially if they are ones you haven’t been using.
When it comes to managing your credit worthiness, your credit report is your best resource. Viewing your credit report gives you the opportunity to manage your credit wisely. While planning a credit strategy to achieve future goals, you should regularly review your credit report to ensure an excellent credit rating.
*Free Credit Report Services
Free credit report services are not created equal. With some services, you're able to see what's on your credit report and score from all 3 major credit bureaus online - TransUnion, Equifax, and Experian. This is important because the data contained in one credit bureau file may not match what's on the others. Also, various lenders may choose to see one or more of your credit files. So it makes sense to obtain the most comprehensive report. And most services do not provide a free FICO score. You only get to see what's on your regular credit scores. These are some of the reasons why it makes sense to do your homework and make comparisons between the features they provide.
Sean Patrick is an expert on online consumer finance products such as free credit reports, loans, etc. For more information visit - www.creditreportcompare.com
Tuesday, October 21, 2008
5 Tips You To Repair Your Credit Right Now
By: Chane Steiner
There are many simple ways to repair bad credit. Everyone has had at least a few damaging accounts within their credit reports. It's difficult to not have ever experienced a blemish. Life happens and we must react accordingly. A temporary rating setback is common for nearly everyone. The key is to not stress too much about it. Just as your credit scores can be damaged easily, they may also be repaired. Following our five tips that you can implement today that will reflect positively on your scores.
• Tip Number 1:
Know what you are dealing with. You have a right to request an annual report free of charge, from each of the three major reporting agencies (also known as a tri-merge). Equifax, Experian and TransUnion are the three big players. Requesting a revised report every four months will empower you to catch errors early on, thereby allowing you to investigate and request erroneous information be removed. If you are not aware of these negative items, you can do little to repair them.
• Tip Number 2:
Dispute negative items on your reports. Federal laws dictate any negative items on your credit reports that cannot be substantiated or verified within a 30 to 45 day window of being disputed, the item must be removed. If for any reason in the chain of verification the process fails to complete, you may then insist its immediate removal. Roughly 40% of all disputes are not verified!
• Tip Number 3:
If you have active credit cards, a few sacrifices may be required to pay the balances down to either a zero balance or perhaps a lower balance. The second most important variable for computing your credit score is how much of your available credit is being used. If your credit cards are maxed out and you make only the interest payments - even if these payments are made on time - it can still reflect negatively on your credit report. Keep your credit card balances at around 30% of the available limits and pay the balances in full each month. This is a great way to repair bad credit scores.
• Tip Number 4:
Ensure your monthly payments for credit cards, bank loans, mortgages, utilities and others are made on time each month. This is by far the most important variable in the algorithm that calculates your scores. The best way to ensure you're able to do this is to not extend yourself into situations that will prevent on time payments. One single late payment can drop your credit report score by 100 points or more! It seems incredible, but it's true. The fact that a negative mark is so easy to acquire should tell you how important this is. Ensure timely payments are made as part of your efforts to repair and then maintain your credit scores.
• Tip Number 5:
Live below your means! If you cannot afford it, don't buy it. It is unwise to go into debt for unnecessary extravagances such as big screen televisions. Save your money and then pay cash.
Repairing your bad credit can certainly enhance your abilities to live the lifestyle you desire. You must be proactive, patient and have a solid plan. Protect your credit rating! This is one of the most important aspects of survival in a capitalist society such as the U.S. Begin your efforts to repair your credit scores today.
There are many simple ways to repair bad credit. Everyone has had at least a few damaging accounts within their credit reports. It's difficult to not have ever experienced a blemish. Life happens and we must react accordingly. A temporary rating setback is common for nearly everyone. The key is to not stress too much about it. Just as your credit scores can be damaged easily, they may also be repaired. Following our five tips that you can implement today that will reflect positively on your scores.
• Tip Number 1:
Know what you are dealing with. You have a right to request an annual report free of charge, from each of the three major reporting agencies (also known as a tri-merge). Equifax, Experian and TransUnion are the three big players. Requesting a revised report every four months will empower you to catch errors early on, thereby allowing you to investigate and request erroneous information be removed. If you are not aware of these negative items, you can do little to repair them.
• Tip Number 2:
Dispute negative items on your reports. Federal laws dictate any negative items on your credit reports that cannot be substantiated or verified within a 30 to 45 day window of being disputed, the item must be removed. If for any reason in the chain of verification the process fails to complete, you may then insist its immediate removal. Roughly 40% of all disputes are not verified!
• Tip Number 3:
If you have active credit cards, a few sacrifices may be required to pay the balances down to either a zero balance or perhaps a lower balance. The second most important variable for computing your credit score is how much of your available credit is being used. If your credit cards are maxed out and you make only the interest payments - even if these payments are made on time - it can still reflect negatively on your credit report. Keep your credit card balances at around 30% of the available limits and pay the balances in full each month. This is a great way to repair bad credit scores.
• Tip Number 4:
Ensure your monthly payments for credit cards, bank loans, mortgages, utilities and others are made on time each month. This is by far the most important variable in the algorithm that calculates your scores. The best way to ensure you're able to do this is to not extend yourself into situations that will prevent on time payments. One single late payment can drop your credit report score by 100 points or more! It seems incredible, but it's true. The fact that a negative mark is so easy to acquire should tell you how important this is. Ensure timely payments are made as part of your efforts to repair and then maintain your credit scores.
• Tip Number 5:
Live below your means! If you cannot afford it, don't buy it. It is unwise to go into debt for unnecessary extravagances such as big screen televisions. Save your money and then pay cash.
Repairing your bad credit can certainly enhance your abilities to live the lifestyle you desire. You must be proactive, patient and have a solid plan. Protect your credit rating! This is one of the most important aspects of survival in a capitalist society such as the U.S. Begin your efforts to repair your credit scores today.
Negotiate Your Debt Like A Professional
By: Annette D. Wilson
Often when a consumer is up to their ears in debt and toying with the idea of filing for bankruptcy, but either can’t file or doesn’t want to, there are other options. Were you aware that the consumer can negotiate with their creditors and end up paying a significantly smaller amount than what is owed?
The Factors Involved In Negotiating Your Debt
Depending on many factors, a consumer can negotiate their debt down. Some of the factors include the age of the debt, the date a payment on the debt was last paid and the amount of interest and fees that have been added to the debt owed. Sound interesting? Read on it gets better.
Before going any further it is important to mention that this path is not easy, creditors are often not nice to deal with at the best of times. When you are the object of their attention, you can be inundated with rude and threatening phone calls, nasty letters and many other tasteless tactics used by some companies to get money out of you. If you can learn to be un-swayed by these tactics and remain calm and level headed through out the whole process, you are well on your way to sorting out your debts and paying much less at the same time. The reason that creditors resort to these sorts of tactics is that it is about all they can do to get the debts paid to them. Medical bills, store cards and credit cards are called unsecured loans. This means that they have no collateral tied to them.
The Problem
When a consumer stops paying their bills, the creditor has a few options. They can try bullying you into paying the debt or they can take you to court and hope that they receive a favorable ruling in order for them to come to your house and remove possessions to cover their bills. The latter is not commonly practiced as the risks of getting an unfavorable verdict from the judge are considerable. Besides that, it is probably hardly worth the trouble since these types of debts are usually considerably smaller than secured loans, such as houses and cars.
Where To Start Your Negotiations
So how much can you offer a debtor and have it accepted?
There is no set figure or sum and no guarantee that a company will accept your terms. However, if they have a choice between being paid something or nothing, they are going to choose some of the money any day. A good guide to begin your negotiation is 25% or less for debts that have recently been charged off. Often you can offer much less if the debt is older and the company has added a host of other fees and charges to the debt.
Ok so you are ready to negotiate? Hold on a minute, there are a few more things that you need to arm yourself with before going off to credit battle. Remember the best defense that you can have is to know exactly how your opponent works and what you can and can’t do.
Tips To Negotiating Like A Pro
Below are a few helpful tips:
* Never negotiate over the phone, in fact, if a creditor contacts you by phone- hang up. All of your correspondence should be conducted by mail.
* Record everything; keep letters, numbers and dates. Never expect that an agency will remember what was agreed on or keep their word without proof.
* Keep copies of every letter that you send to the credit agency and make sure to use registered mail, or mail that has to be signed for. That way you have proof that the other party has received your correspondence.
* Never seem to be too eager to settle the debt too soon, never accept the first or second settlement offer and above all, never let the agency think that it has the upper hand.
Another useful approach is the good old threat of bankruptcy. While its not as easy as it once was to file bankruptcy.
Tip: Here is an article on the new bankruptcy requirements you must meet in order to file, read it so if you pull this trick, you sound knowledgeable.
If the creditor believes that you are about to file for bankruptcy, they will often be more than willing to settle for anything they can before you file and
they loose all hope of ever getting anything out of you. But proceed with caution if you acquire any more debt after telling a creditor this. Then you may not be able to get rid of this debt should you file for bankruptcy.
If the process seems a little difficult for you to handle or you feel that you would be eaten for breakfast by a hungry credit agency, you maybe right. You can either:
A. If you have a trusted family member that is good at negotiating you may ask them for help. Keep in mind, some companies will not speak with them unless you fax them a power of attorney letter stating your friend or family member has the authority to speak for you.
B. There are options available for dealing with these agencies. A debt negotiation company can provide you with advice and they can negotiate settlements with the agency for you. The Debt negotiation company will help you set up a savings fund to start collecting money to pay your debts. They can also help shed some light on how to begin living a debt free life.
Credit Repair - Free Credit Repair - Bad Credit Repair - Repair Credit - Ezcreditrepairsolutions .com is a site dedicated to helping people interested in improving the credit on their own without the aide of a credit repair services agency
Often when a consumer is up to their ears in debt and toying with the idea of filing for bankruptcy, but either can’t file or doesn’t want to, there are other options. Were you aware that the consumer can negotiate with their creditors and end up paying a significantly smaller amount than what is owed?
The Factors Involved In Negotiating Your Debt
Depending on many factors, a consumer can negotiate their debt down. Some of the factors include the age of the debt, the date a payment on the debt was last paid and the amount of interest and fees that have been added to the debt owed. Sound interesting? Read on it gets better.
Before going any further it is important to mention that this path is not easy, creditors are often not nice to deal with at the best of times. When you are the object of their attention, you can be inundated with rude and threatening phone calls, nasty letters and many other tasteless tactics used by some companies to get money out of you. If you can learn to be un-swayed by these tactics and remain calm and level headed through out the whole process, you are well on your way to sorting out your debts and paying much less at the same time. The reason that creditors resort to these sorts of tactics is that it is about all they can do to get the debts paid to them. Medical bills, store cards and credit cards are called unsecured loans. This means that they have no collateral tied to them.
The Problem
When a consumer stops paying their bills, the creditor has a few options. They can try bullying you into paying the debt or they can take you to court and hope that they receive a favorable ruling in order for them to come to your house and remove possessions to cover their bills. The latter is not commonly practiced as the risks of getting an unfavorable verdict from the judge are considerable. Besides that, it is probably hardly worth the trouble since these types of debts are usually considerably smaller than secured loans, such as houses and cars.
Where To Start Your Negotiations
So how much can you offer a debtor and have it accepted?
There is no set figure or sum and no guarantee that a company will accept your terms. However, if they have a choice between being paid something or nothing, they are going to choose some of the money any day. A good guide to begin your negotiation is 25% or less for debts that have recently been charged off. Often you can offer much less if the debt is older and the company has added a host of other fees and charges to the debt.
Ok so you are ready to negotiate? Hold on a minute, there are a few more things that you need to arm yourself with before going off to credit battle. Remember the best defense that you can have is to know exactly how your opponent works and what you can and can’t do.
Tips To Negotiating Like A Pro
Below are a few helpful tips:
* Never negotiate over the phone, in fact, if a creditor contacts you by phone- hang up. All of your correspondence should be conducted by mail.
* Record everything; keep letters, numbers and dates. Never expect that an agency will remember what was agreed on or keep their word without proof.
* Keep copies of every letter that you send to the credit agency and make sure to use registered mail, or mail that has to be signed for. That way you have proof that the other party has received your correspondence.
* Never seem to be too eager to settle the debt too soon, never accept the first or second settlement offer and above all, never let the agency think that it has the upper hand.
Another useful approach is the good old threat of bankruptcy. While its not as easy as it once was to file bankruptcy.
Tip: Here is an article on the new bankruptcy requirements you must meet in order to file, read it so if you pull this trick, you sound knowledgeable.
If the creditor believes that you are about to file for bankruptcy, they will often be more than willing to settle for anything they can before you file and
they loose all hope of ever getting anything out of you. But proceed with caution if you acquire any more debt after telling a creditor this. Then you may not be able to get rid of this debt should you file for bankruptcy.
If the process seems a little difficult for you to handle or you feel that you would be eaten for breakfast by a hungry credit agency, you maybe right. You can either:
A. If you have a trusted family member that is good at negotiating you may ask them for help. Keep in mind, some companies will not speak with them unless you fax them a power of attorney letter stating your friend or family member has the authority to speak for you.
B. There are options available for dealing with these agencies. A debt negotiation company can provide you with advice and they can negotiate settlements with the agency for you. The Debt negotiation company will help you set up a savings fund to start collecting money to pay your debts. They can also help shed some light on how to begin living a debt free life.
Credit Repair - Free Credit Repair - Bad Credit Repair - Repair Credit - Ezcreditrepairsolutions .com is a site dedicated to helping people interested in improving the credit on their own without the aide of a credit repair services agency
Monday, October 20, 2008
5 Hints For Finding The Best Debt Consolidation Help
By: Cornie Herring
Debt consolidation is one of the most common debt relief solutions for many debtors. By go through a debt consolidation process, all your unsecured debts will be merged into one for better debt management. In some cases, the debt consolidation company may be able to help you to lower your minimum monthly payment and interest rates, which can help you to manage your money better.
If you have decided to go for debt consolidation to resolve your debt issue, then, finding a good debt consolidation company that can really help you in handling your debt problem is crucial because getting help from an unethical debt consolidation company can make your financial situation goes worse. Here are 5 hints for finding the best debt consolidation help.
Hint 1: Search As Much Information Available Online & Offline
The best way to find a reputable debt consolidation company is through a recommendation from some one you know who had used the services of a debt consolidation company and have a good comment on it. If you don't know some one who knows a good debt consolidation company, then, look through yellow pages or you can easy find many of debt consolidation services from internet. Short listed the companies that near by you and ask them to send you their debt consolidation service information package. You don't need to pay a penny for requesting the company's services details; hence, utilize these resources to ask as much information as you can so that you can make a comparison about their services. Then, compile a list of your choices.
Hint 2: Detect Scam's Warning Signs
While searching for debt consolidation companies, put yourself in a high alert for any scammer's signs. While extremely high fee is definitely a red flag, extremely low fee may have high hidden cost; hence, you need to really understand how the company will charge you on their service, watch out for hidden cost. Don't believe if a debt consolidation company claims too much of guarantees and their debt consolidation package look too good to be believed. Remember, your debt issue cannot be go away overnight or in a short period of time, if any debt consolidation company tells you that they can get you out of debt at unbelievable short period of time, they lie.
Hint 3: Check for Any Complaint Filed Against the Company
A debt consolidation company may be legitimate but their services may be bad and can't help much in resolving your debt issue. In order to avoid yourself from getting help for a helpless debt consolidation company, spend some time to look for complaints filed against the company; call the Better Business Bureau in your area to find out if there have been complaints against the companies in your list.
Hint 4: Don't Make An Instant Decision
You should interview all the debt consolidation companies short listed which you think they can best help you in resolving your debt issue. Of course, when you talk to them, most of their proposal and recommended solutions will look good and impress you. Although, you are in hurry to get your debt issue resolve, don't make up your final decision at the spot and enroll into any of debt consolidation plan. Tell them that you need some time to consider. Take your time and at your comfort home, compare all services from the debt consolidation companies you have interviewed earlier and select the best debt consolidation company that can provides you the best service at a reasonable price.
Hint 5: Fine Read Any Contract Before Sign
When you decide to enroll into a debt consolidation plan, you definitely will be asked to sign an agreement or contract about the proposed debt solution plan. Remember to read the contract in details before you put your signature on the dotted line. Don't sign the contract if you are doubts or have questions on any part of it. Clear your doubts and get your questions answered first.
Summary
If you have decided to get professional help to consolidation your debt, then it is crucial to choose a reputable debt consolidation company with a debt consolidation plan that best suite your financial need. Hopefully, the 5 hints as mentioned will be able to guide you to find the best debt consolidation help.
Article Source: http://www.articlesnatch.com
About the Author:Cornie Herring is the owner of http://www.debt-consolidation-1stop.info. Visit Cornie’s website to see more free information on Debt Consolidation & Credit Counseling and Debt Management.
Prepare Yourself For Debt Consolidation
By: Devora Witts
When you finally decide to undertake a debt consolidation program because your debt has gone out of hands, it is not enough to make up your mind and hire a debt consolidation agency’s services. You will also have to take part of the process and it is wise to prepare yourself.
Whenever you loose control over your finances and your debt keeps accumulating, consolidating your debt is an excellent solution. However, you should know that from the moment you join a debt consolidation program, your finances and credit situation are affected and many things need to be taken into account so you are ready and prepared for what may come.
Get All The Finance You Need Prior To Consolidating
After joining a debt consolidation program you will not be able to get approved for a loan or credit card for some time. So, if you think you will need finance during the time the consolidation program is being carried out, try to get approved for a loan or credit card before joining the debt consolidation program.
If you apply for a credit card, do not use it till you join the debt consolidation program. Since the credit card balance will be null, that credit card will not be part of the debt to be consolidated and thus you will be able to use it freely for any emergency. Bear in mind though, that the idea is to control your expenses so you can recover from your financial situation and this should be discussed with your consolidation agent.
Concentrate On Repaying Non-Negotiable Debt
Debt Consolidation is more efficient when a greater proportion of negotiable debt has to be consolidated. Too much secure debt will turn debt consolidation into a bad business as secure loan lenders are usually not willing to change the loan terms because they always can claim their money by resorting to legal actions against the property guaranteeing the loan.
So, if you can not pay all of your monthly payments, focus on your secured debt. Concentrate on repaying your mortgage, home equity loans and any other secure debt you may have. If you have to choose between repaying secured and unsecured debt, always choose making your payments towards the secured loans. This way you will reduce the amount of non-negotiable debt and the debt consolidation program will turn out to be more successful.
Start Budgeting
It is always smart to think ahead. When joining a consolidation program all your finances will be analyzed and you will have to inform your debt, your assets, your income, your expenses, etc. All this information is extremely necessary as it will be used to design the best program towards reducing your debt while leaving your lifestyle unaltered as far as possible.
However, if you are really committed to reducing your debt and solving your credit problems as soon as possible, you should start budgeting before even joining the debt consolidation program. Making a budget will help you take control of your finances and see why you can not meet your monthly payments. Sometimes, you will learn that some things you did not think were so expensive, really affect your income/spending ratio leaving small space for repaying debt. Always remember that knowledge is power, and knowing how and where you spend will give you the power to control your spending.
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 Mortgage Loans and Personal Loans thoroughly you can visit her site www.badcreditloanservices.com
When you finally decide to undertake a debt consolidation program because your debt has gone out of hands, it is not enough to make up your mind and hire a debt consolidation agency’s services. You will also have to take part of the process and it is wise to prepare yourself.
Whenever you loose control over your finances and your debt keeps accumulating, consolidating your debt is an excellent solution. However, you should know that from the moment you join a debt consolidation program, your finances and credit situation are affected and many things need to be taken into account so you are ready and prepared for what may come.
Get All The Finance You Need Prior To Consolidating
After joining a debt consolidation program you will not be able to get approved for a loan or credit card for some time. So, if you think you will need finance during the time the consolidation program is being carried out, try to get approved for a loan or credit card before joining the debt consolidation program.
If you apply for a credit card, do not use it till you join the debt consolidation program. Since the credit card balance will be null, that credit card will not be part of the debt to be consolidated and thus you will be able to use it freely for any emergency. Bear in mind though, that the idea is to control your expenses so you can recover from your financial situation and this should be discussed with your consolidation agent.
Concentrate On Repaying Non-Negotiable Debt
Debt Consolidation is more efficient when a greater proportion of negotiable debt has to be consolidated. Too much secure debt will turn debt consolidation into a bad business as secure loan lenders are usually not willing to change the loan terms because they always can claim their money by resorting to legal actions against the property guaranteeing the loan.
So, if you can not pay all of your monthly payments, focus on your secured debt. Concentrate on repaying your mortgage, home equity loans and any other secure debt you may have. If you have to choose between repaying secured and unsecured debt, always choose making your payments towards the secured loans. This way you will reduce the amount of non-negotiable debt and the debt consolidation program will turn out to be more successful.
Start Budgeting
It is always smart to think ahead. When joining a consolidation program all your finances will be analyzed and you will have to inform your debt, your assets, your income, your expenses, etc. All this information is extremely necessary as it will be used to design the best program towards reducing your debt while leaving your lifestyle unaltered as far as possible.
However, if you are really committed to reducing your debt and solving your credit problems as soon as possible, you should start budgeting before even joining the debt consolidation program. Making a budget will help you take control of your finances and see why you can not meet your monthly payments. Sometimes, you will learn that some things you did not think were so expensive, really affect your income/spending ratio leaving small space for repaying debt. Always remember that knowledge is power, and knowing how and where you spend will give you the power to control your spending.
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 Mortgage Loans and Personal Loans thoroughly you can visit her site www.badcreditloanservices.com
Want To Loose Your Debt?
By: Nocita Carter
I’m sure your answer is yes to this question. Yeah, you may want to loose your debt, but aren’t sure exactly how to do this. Did you know that there are a lot of people in the United States who are in more debt today than we’ve ever been? We’re also saving much less! That’s right. Even though we make more money we’re saving a lot less than our grandparents did! I know you’re saying, things cost much more these days. Yes, I know, but we’re still spending more, which keeps us from saving the money we should for a rainy day.
In fact, the interest rates that are currently being charged on credit cards average eighteen percent and upward. Ouch! That’s a lot of interest to pay for a credit card especially if you don’t pay off your balance each month. Of course, your credit card company would like you to keep a balance on your credit card so they can collect interest from you!
Remember you’re charged interest on your unpaid balance, that’s how the credit card companies make lots of money. You say to yourself, what can I do to reduce or eliminate my debt? Well, here are some tips to help you begin your path to financial freedom by reducing and eventually eliminating your debt:
1) Review all of your current billing statements to determine how much you owe your creditors.
By doing this, you’ll know exactly where you stand with your bills and exactly how much you owe.
2) Look at the highest interest rates you are paying and the balances of these particular credit cards. Based on those balances, attempt to start paying off the credit cards with the highest interest rates first. This will assist you in reducing the amount of interest you are paying to your creditors sooner.
3) Pay more than the minimum amount due on your credit cards! You want to get your debt reduced and eventually eliminated by paying over the minimum balance that the credit card company is requiring you to pay. Remember debt elimination is your goal, so this will help you to work towards that!
4) Make sure to pay your bill on time in order to avoid late fees and extra interest charges added to your credit balances. You definitely don’t want to pay your credit card company any more money than you need to! Remember, the more money you keep for yourself, the more you have to save.
5) Don’t use your credit cards! That’s right, you’re trying to become debt free, so you’ll need to eliminate or reduce your spending on your credit cards. Yes, I know you’ll need one for emergencies. But, that’s just it, emergencies only! So don’t use your credit card for anything else other that a true legitimate emergency. Your goal is to stay out of debt and to become debt free.
6) You may want to take money from your savings or money market account to pay off your credit cards so you can become debt free or reduce your debt. If you decide to do this, make sure you keep some money in your savings for an emergency or a rainy day!
7) If you think you need debt counseling, then you may want to seek professional help to assist you with reducing or eliminating your debt. Just do some research via the internet to locate a company that specializes in this.
These tips should help you get started on your way to becoming debt free for the future. You’ll be glad that you decided to take this crucial step in taking control of your personal finances by losing your debt! Remember, it’s important for your future.
About The Author
Nocita Carter is a writer and web designer that creates websites providing informative tips on various subject matter including personal finance tips on your personal finances at http://www.personal-finance-tips-for-you.com ; dating tips at http://www.mydating-tips.com and your choice of ebooks at http://www.ebook-corner-for-you.com.
I’m sure your answer is yes to this question. Yeah, you may want to loose your debt, but aren’t sure exactly how to do this. Did you know that there are a lot of people in the United States who are in more debt today than we’ve ever been? We’re also saving much less! That’s right. Even though we make more money we’re saving a lot less than our grandparents did! I know you’re saying, things cost much more these days. Yes, I know, but we’re still spending more, which keeps us from saving the money we should for a rainy day.
In fact, the interest rates that are currently being charged on credit cards average eighteen percent and upward. Ouch! That’s a lot of interest to pay for a credit card especially if you don’t pay off your balance each month. Of course, your credit card company would like you to keep a balance on your credit card so they can collect interest from you!
Remember you’re charged interest on your unpaid balance, that’s how the credit card companies make lots of money. You say to yourself, what can I do to reduce or eliminate my debt? Well, here are some tips to help you begin your path to financial freedom by reducing and eventually eliminating your debt:
1) Review all of your current billing statements to determine how much you owe your creditors.
By doing this, you’ll know exactly where you stand with your bills and exactly how much you owe.
2) Look at the highest interest rates you are paying and the balances of these particular credit cards. Based on those balances, attempt to start paying off the credit cards with the highest interest rates first. This will assist you in reducing the amount of interest you are paying to your creditors sooner.
3) Pay more than the minimum amount due on your credit cards! You want to get your debt reduced and eventually eliminated by paying over the minimum balance that the credit card company is requiring you to pay. Remember debt elimination is your goal, so this will help you to work towards that!
4) Make sure to pay your bill on time in order to avoid late fees and extra interest charges added to your credit balances. You definitely don’t want to pay your credit card company any more money than you need to! Remember, the more money you keep for yourself, the more you have to save.
5) Don’t use your credit cards! That’s right, you’re trying to become debt free, so you’ll need to eliminate or reduce your spending on your credit cards. Yes, I know you’ll need one for emergencies. But, that’s just it, emergencies only! So don’t use your credit card for anything else other that a true legitimate emergency. Your goal is to stay out of debt and to become debt free.
6) You may want to take money from your savings or money market account to pay off your credit cards so you can become debt free or reduce your debt. If you decide to do this, make sure you keep some money in your savings for an emergency or a rainy day!
7) If you think you need debt counseling, then you may want to seek professional help to assist you with reducing or eliminating your debt. Just do some research via the internet to locate a company that specializes in this.
These tips should help you get started on your way to becoming debt free for the future. You’ll be glad that you decided to take this crucial step in taking control of your personal finances by losing your debt! Remember, it’s important for your future.
About The Author
Nocita Carter is a writer and web designer that creates websites providing informative tips on various subject matter including personal finance tips on your personal finances at http://www.personal-finance-tips-for-you.com ; dating tips at http://www.mydating-tips.com and your choice of ebooks at http://www.ebook-corner-for-you.com.
Sunday, October 19, 2008
Student Loan Consolidation Information
By: nelson smith
Student Loan Consolidation is a really useful repayment tool that gathers all your federal student loans and puts them into one loan, also significantly reducing your monthly payment. Student loan consolidation is one of the most popular used methods for reducing and paying off student debt. Student loan consolidation is a powerful financial tool which has the backing of the federal government to help you lower your payments by extending your repayment term. Student loan consolidation also gives you the opportunity to lock in at a low interest rate, which can save you a huge amount of money over time.
Federal student loan consolidation amalgamates all your existing loans into one single loan which will show a good future payment history, which will help you improve your all important credit score. These student loan consolidation benefits could save you hundreds, even thousands of dollars in additional interest over the term of your loan. Federally funded loans are initially administered through the US Department of Education's Federal Student Aid programs, and are usually the easiest to get student loan consolidation services for.
After student loan consolidation, the variable interest rate becomes a fixed interest rate for a set period of time. Many people suffer from bad credit and this can cause problems with trying to obtain that all important college loan consolidation funding but if you utilize services of a federal-based company, they don't do any credit checks and the top benefit of all, student loan consolidation is considered as good debt and will be more appealing to any future lenders. The Federal Student Loan Consolidation Program lets anyone with more than $7500 in outstanding Federal student loans (including PLUS loans) to reduce their monthly student loan repayments and lock in a low fixed interest rate.
Federal loan are sent to the controllers office at your school, you then sign it over to the school and it is applied to the balance owed to the school. Federal Loans and Private loans cannot be merged when you opt for student loan consolidation. Federal student loans offer low interest rates and deferred payments. Federal student loans are some of the most affordable loans available to students and families, with interest rates lower than most other forms of financing and deferred payments (principal and interest) until after graduation.
By consolidating your federal student loans first and improving your credit score, you could get a better interest rate. Anyone with outstanding non-federal education-related expenses is eligible to apply for a Students can consolidate while still in school, during the six-month grace period immediately following graduation or during the repayment period. A student loan consolidation program is a lucrative and efficient way for students to deal with student debt.
Article Source: http://www.articlesnatch.com
About the Author:For more information on all aspects of credit, debt and finance visit http://www.debitconsolidation1.com
Eight Minute Guide to a Credit Score Increase
By: David forer
Follow the simple steps I will outline in this article and you can massively improve your credit score in 30 days. Remember this is a brief 8 minute read and I can't cover everything in detail. I have full explanations in my guide to credit recovery. Also if you read this and that's all you do, it will not help! You must take action to see improvement.
1. Order your credit report from www.annualcreditreport.com. This is a free report you are allowed to get every 12 months. It won't have your credit score but will have all of the information on your creditors and your payment information. Scour this report and look at what is on it. Correct any inaccurate information like birthdays, addresses, employment information, aliases, and social security numbers.
2. Review the negative credit information that is listed on the report. You must correct any errors as soon as possible by disputing them through the credit reporting agencies. These credit reporting agencies have 30 days to investigate and respond to your inquiry. If they cannot verify the negative item your disputing in that time frame they must remove it from your credit report. By removing these negative items you will see a dramatic increase.
3. If you have a lot of open balances, look at your total credit limit versus how much you owe. You want to make sure that your balance is less than 35% of the total credit limit available. For every 10,000 in credit available you want to be using 3,500 as the maximum. Obviously being less than that is great also. There are many ways to do this by increasing credit limits, balance transfer portions of balances, and paying down accounts.
4. Avoid any inquiries into your credit report. If you have multiple credit pulls this can lower your score by up to 5 points per pull (general rule not applicable for every pull). Don't open up several credit cards at once because the newness of the accounts can lower your score as well as the inquiries.
5. Call your creditors and ask them to lower your interest rate. If you have been a customer a long time and have paid well they will do this. Threaten to move over to another card that has a 0% transfer rate. They want you to stay and will help you by lowering your current interest. How does this help to increase your score? Now with the lower payment you can overpay on the account and get rid of the balance. By reducing debt load and paying this off quicker you will bump up your score.
6. If you are in collections or have fallen behind call and talk to the creditor. If you can pay off the collection or late card, offer to pay it off if they delete your collection. They will also lower the payoff if you bargain with them enough. Many times you can also ask them to re-age your account to a good standing with a large payment. Not having the collection or late payment will help your score a lot.
7. Pay on time. I know it's basic but many people just don't do it. After a certain period of time the negatives start to diminish and not affect your score as much. If you pay on time for a while you can call and ask the creditor to delete old negative information. Some will do it because they want to keep you as their customer.
8. Don't close old non used zero balance accounts. One of the best things for a high credit score is older good payed accounts. Shows you have a long credit history and have paid on time. Where this can affect you is when you balance transfer your balance to get a zero APR and you close the other account because you transferred from it. Not only do you have an inquiry but you have taken a seasoned account and replaced with a new one. Make sure to keep those old accounts open for credit report purposes.
9. Set up automated payments if at all possible. Look, we all have good intentions but once and a while are busy lives get in the way. If you have an automatic payment set up then the hiccup will be covered. Sometimes you can bargain with the creditor and get a lower rate for setting up auto withdrawal.
Keep in mind this was supposed to be a thirteen minute guide. I can't go into the full explanations of everything nor give you all of the tips. These simple steps I have outlined are quick and easy and can easily be implemented to raise your score. If you follow these I think you will see a dramatic increase in 30 to 60 days and something can happen sooner. Remember a little effort can reap a large reward. On the other side of the coin, no action and this quick guide becomes useless and you just wasted 8 minutes learning about something that will have no affect on your life.
Follow the simple steps I will outline in this article and you can massively improve your credit score in 30 days. Remember this is a brief 8 minute read and I can't cover everything in detail. I have full explanations in my guide to credit recovery. Also if you read this and that's all you do, it will not help! You must take action to see improvement.
1. Order your credit report from www.annualcreditreport.com. This is a free report you are allowed to get every 12 months. It won't have your credit score but will have all of the information on your creditors and your payment information. Scour this report and look at what is on it. Correct any inaccurate information like birthdays, addresses, employment information, aliases, and social security numbers.
2. Review the negative credit information that is listed on the report. You must correct any errors as soon as possible by disputing them through the credit reporting agencies. These credit reporting agencies have 30 days to investigate and respond to your inquiry. If they cannot verify the negative item your disputing in that time frame they must remove it from your credit report. By removing these negative items you will see a dramatic increase.
3. If you have a lot of open balances, look at your total credit limit versus how much you owe. You want to make sure that your balance is less than 35% of the total credit limit available. For every 10,000 in credit available you want to be using 3,500 as the maximum. Obviously being less than that is great also. There are many ways to do this by increasing credit limits, balance transfer portions of balances, and paying down accounts.
4. Avoid any inquiries into your credit report. If you have multiple credit pulls this can lower your score by up to 5 points per pull (general rule not applicable for every pull). Don't open up several credit cards at once because the newness of the accounts can lower your score as well as the inquiries.
5. Call your creditors and ask them to lower your interest rate. If you have been a customer a long time and have paid well they will do this. Threaten to move over to another card that has a 0% transfer rate. They want you to stay and will help you by lowering your current interest. How does this help to increase your score? Now with the lower payment you can overpay on the account and get rid of the balance. By reducing debt load and paying this off quicker you will bump up your score.
6. If you are in collections or have fallen behind call and talk to the creditor. If you can pay off the collection or late card, offer to pay it off if they delete your collection. They will also lower the payoff if you bargain with them enough. Many times you can also ask them to re-age your account to a good standing with a large payment. Not having the collection or late payment will help your score a lot.
7. Pay on time. I know it's basic but many people just don't do it. After a certain period of time the negatives start to diminish and not affect your score as much. If you pay on time for a while you can call and ask the creditor to delete old negative information. Some will do it because they want to keep you as their customer.
8. Don't close old non used zero balance accounts. One of the best things for a high credit score is older good payed accounts. Shows you have a long credit history and have paid on time. Where this can affect you is when you balance transfer your balance to get a zero APR and you close the other account because you transferred from it. Not only do you have an inquiry but you have taken a seasoned account and replaced with a new one. Make sure to keep those old accounts open for credit report purposes.
9. Set up automated payments if at all possible. Look, we all have good intentions but once and a while are busy lives get in the way. If you have an automatic payment set up then the hiccup will be covered. Sometimes you can bargain with the creditor and get a lower rate for setting up auto withdrawal.
Keep in mind this was supposed to be a thirteen minute guide. I can't go into the full explanations of everything nor give you all of the tips. These simple steps I have outlined are quick and easy and can easily be implemented to raise your score. If you follow these I think you will see a dramatic increase in 30 to 60 days and something can happen sooner. Remember a little effort can reap a large reward. On the other side of the coin, no action and this quick guide becomes useless and you just wasted 8 minutes learning about something that will have no affect on your life.
5 Sure Ways to Improve Your Credit Score
By: Stephanie Andrews
A low credit score does not mean your credit days are over. You may not be able to take out a loan or get certain credit cards, but you can start taking steps to improve your credit rating right away. Over time, lenders will notice your changed behavior and offer you more financial options. Follow these guidelines and your score will improve in no time.
Pay Bills on Time
Whether it is a credit card bill or a monthly loan payment, the most important way to improve your credit score is to avoid late payments. If you have trouble remembering when bills are due, set up a system to stay organized. Create a calendar that marks the days you need to make payments. Or consider setting up an automatic withdrawal for your accounts. This way, the amount due will be paid on time each month.
Pay off Debt
Occasionally, cardholders struggling to pay off debt end up shifting it from one place to another. Opening new accounts and transferring balances may not be the best solution. To revamp your credit score you'll want to pay off all debt. Set up a payment plan to get rid of all your balances, and limit your spending until the debt is completely gone. If you carry minimal debt, creditors will see that you are able to make payments and manage your funds well. Open New Accounts Sparingly You may be used to opening up new accounts on a regular basis. Lenders sometimes view this practice as a scramble to get more credit than you can pay back. Before you open a new account, evaluate the benefits you'll receive from it. You might find it best to first pay off the outstanding debt you have, and then apply for a new credit card or loan.
Hang on to Credit Cards
If you have a low credit score and you want to see it increase, you do not need to cut up all of your credit cards. In fact, closing too many accounts at once might actually work against you. Your credit history makes up a considerable part of your overall score, so hang on to some accounts to show that you can maintain a line of credit for a long time.
Manage your Credit Cards Wisely
One of the main reasons consumers fall into credit trouble is poor financial management. As you work to improve your credit score, carefully note your spending habits. Make small purchases with your credit card and pay them off right away. Keep track of all bills, and set aside time each week to look over your finances. If you find it hard to manage, contact a financial advisor and ask for help.
Usually a credit rating, or FICO score, ranges between 300 and 850. The higher your score, the better off you are. If you make wise financial changes, you can expect to see your credit score improve over time.
Having a good credit score will open many doors for you in the credit world. You can expect to receive lower interest rates on loans and a chance to apply for credit cards with many benefits. Keep managing your credit wisely and you will have plenty of financial opportunities in the future.
--------------------------------------------------------------------------------
Click Here to Find Bad Credit Credit Cards Stephanie Andrews is a contributing editor of the website www.CreditCardCity.com , a credit card directory where you can apply for a new credit card with secure online applications. Visit now to compare all of the best online credit card offers.
A low credit score does not mean your credit days are over. You may not be able to take out a loan or get certain credit cards, but you can start taking steps to improve your credit rating right away. Over time, lenders will notice your changed behavior and offer you more financial options. Follow these guidelines and your score will improve in no time.
Pay Bills on Time
Whether it is a credit card bill or a monthly loan payment, the most important way to improve your credit score is to avoid late payments. If you have trouble remembering when bills are due, set up a system to stay organized. Create a calendar that marks the days you need to make payments. Or consider setting up an automatic withdrawal for your accounts. This way, the amount due will be paid on time each month.
Pay off Debt
Occasionally, cardholders struggling to pay off debt end up shifting it from one place to another. Opening new accounts and transferring balances may not be the best solution. To revamp your credit score you'll want to pay off all debt. Set up a payment plan to get rid of all your balances, and limit your spending until the debt is completely gone. If you carry minimal debt, creditors will see that you are able to make payments and manage your funds well. Open New Accounts Sparingly You may be used to opening up new accounts on a regular basis. Lenders sometimes view this practice as a scramble to get more credit than you can pay back. Before you open a new account, evaluate the benefits you'll receive from it. You might find it best to first pay off the outstanding debt you have, and then apply for a new credit card or loan.
Hang on to Credit Cards
If you have a low credit score and you want to see it increase, you do not need to cut up all of your credit cards. In fact, closing too many accounts at once might actually work against you. Your credit history makes up a considerable part of your overall score, so hang on to some accounts to show that you can maintain a line of credit for a long time.
Manage your Credit Cards Wisely
One of the main reasons consumers fall into credit trouble is poor financial management. As you work to improve your credit score, carefully note your spending habits. Make small purchases with your credit card and pay them off right away. Keep track of all bills, and set aside time each week to look over your finances. If you find it hard to manage, contact a financial advisor and ask for help.
Usually a credit rating, or FICO score, ranges between 300 and 850. The higher your score, the better off you are. If you make wise financial changes, you can expect to see your credit score improve over time.
Having a good credit score will open many doors for you in the credit world. You can expect to receive lower interest rates on loans and a chance to apply for credit cards with many benefits. Keep managing your credit wisely and you will have plenty of financial opportunities in the future.
--------------------------------------------------------------------------------
Click Here to Find Bad Credit Credit Cards Stephanie Andrews is a contributing editor of the website www.CreditCardCity.com , a credit card directory where you can apply for a new credit card with secure online applications. Visit now to compare all of the best online credit card offers.
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