Posts filed under 'Credit Repair'
Are you stressed out over your mounting debt? If so, and you’re hoping to find a permanent solution to dealing with your debt then debt consolidation may be the answer.
Debt is on the rise. More and more people are using more and more credit cards each year and living well beyond their means. Debt consolidation is often the best solution for those who find themselves buried in a mountain of debt.
Help is out there. There are a myriad of websites that offer debt consolidation information. The key is finding the right program, company or counseling service to best meet your needs.
One of the advantages of debt consolidation is that you can combine all your credit cards and/or loan payments into one more manageable monthly payment which is usually much lower than you were paying for all you individual debts combined. Disadvantages include longer payment terms.
The amount of money you can save through debt consolidation can really make the difference to your personal bottom line. This is because with debt consolidation you reduce or in some cases actually eliminate penalties and interest which you had accumulated. In most cases, you can also reduce your average interest rate.
Knowing your options is important. The whole debt consolidation process can be overwhelming. Through investigation you’ll be able to discover more about how the process works and how each of the options available to you will affect you and your bottom line.
Beware however there are many unscrupulous companies out there who will try to take advantage of anyone who is stressed out over debt. Be wary, if it sounds to good to be true, chances are it isn’t.
For some, debt consolidation is a relatively simple yet for others with a more complicated debt situation it can only make things worse if you don’t sign up with a reputable company who explains the advantages and disadvantages of their services upfront.
As a consumer, it’s your job to protect yourself by seeking out as many opinions as possible before agreeing to any debt consolidation arrangement that will impact your financial future.
Like anything debt consolidation has it’s pros and cons. Hence, it’s not a step to be taken lightly. Do your homework and ask questions.
When investigating whether debt consolidation and/or which debt consolidation company is right for you, you’ll want to find out what the charge is for their services, what the annual percentage rate (APR) is and what the amount of your monthly payments will be. Further you should know upfront how long it will take you to retire your debt and what the total amount is that you’ll end up paying.
Other questions like “What happens if I miss a payment? or “What happens if I’m late making a payment?” are also important questions to ask before you agree to sign up with a debt consolidation company.
Sherrie Le Masurier is a freelance writer who believes in being a wise consumer and living within her means. Her blog http://www.doityourselfdebtreduction.blogspot.com features information on how to get out of debt, debt reduction strategies, credit card debt reduction, debt consolidation, debt management tips and general debt reduction help.
March 17th, 2008
All kinds of suggestions seem to be floating for credit card debt help. Everyone, even some of your friends, have a piece of advice related to credit card debt help. seem to offer credit card debt help is on offer everywhere - articles in newspapers, advertisements on Television channels, newspapers, websites and magazines.
Credit card debt help really starts with developing a better understanding of credit cards and other concepts related to credit cards irrespective of whether you go for external credit card debt help or not.
You should try and understand how the credit card suppliers bill you, how the interest is calculated on your credit card balance and how your credit card debt grows. Understanding all about APR, goes without saying. Even if you think that you had gone through all this stuff at the time of choosing your credit card, you should revisit these concepts to make sure that you still know them. If you decide against going for professional credit card debt help, you will need to understand these concepts in even more detail
Related Links:
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March 13th, 2008
These days credit cards are a necessity. Many people hold multiple credit cards. Credit card industry is growing at a rapid rate. However, the credit card industry and credit card holders are posed with a big problem called ‘Credit Card Debt’.
Whatever payments you make using your credit card are actually your borrowings that contribute towards your credit card debt. Your total credit card debt is the total amount you owe credit card supplier. You must settle your credit card debt on a monthly basis.
However, you have the option of making a partial (minimum) payment too, in which case you don’t incur late fee but just the interest charges on your credit card debt. If you don’t pay off your credit card debt in full, the interest charges too get added to it. Interest rates on credit card debt are generally higher than the interest rates on other kind of loans/borrowings. Further, the interest charges add on to your credit card debt each month to form the new balance or the new credit card debt amount. If you continue making partial payments (or no payments) the interest charges are calculated afresh on the new credit card debt.
Thus your credit card debt accumulates rapidly and soon you find that what was once a relatively small credit card debt has ballooned into a big amount which you find almost impossible to pay. Moreover, if you don’t still control your spending habits, your credit card debt rises even faster. This is how the vicious circle of credit card debt works.
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March 11th, 2008
Hard money loans are a type of asset based loans similar to bridging loans. They are usually tied to real estate and have a much higher interest rate than traditional commercial property loans.
They are often used by businesses in distressed financial situations: eg. as bankruptcy or foreclosure is imminent.
Learn more about: hard money loans.
March 4th, 2008
Now its not the most average of cars, the citroen berlingo. Its tall, huge and pretty much only comes in dark green. It is however my car of choice for the coming years, I actively seeked out a used citroen berlingo and proceeded to swiftly pay for it. But why I can hear you asking, why opt for such a dog, dog dog ugly car? well the answer is simple really, you cant go much wrong with one. See used citroens used to be a troublesome bunch, but they never have had bad depreciation like other used cars. Hence with thier more recent models seeing decent build quality I now opt to buy a used citroen, hell even if it dies on me I will just sell it on - i didnt invest much time or money into the used french car so what do you expect?
January 28th, 2008
It’s difficult not to notice the incredible growth that there has been in companies offering debt consolidation programs and solutions over the past few years. At first, debt consolidation companies were some of the biggest advertisers on the internet and there are now more loan consolidation TV commercials than we’ve ever seen before. However, a great number of these debt consolidation companies are now being sued by numerous attorney generals, the IRS, and the FTC over their supposed ‘non-profit’ status.
One of the worst debt consolidation companies has actually had a federal lawsuit filed against it and the FTC and five individual states have filed separate lawsuits against the company. This company declared Chapter 11 bankruptcy but the reality is that they have not gone out of business themselves, they have simply changed into so many other companies that they are most likely around in some form.
Interestingly, many companies do not call themselves ‘debt consolidation companies’ anymore because of the bad press that all of the legal action against this first company generated. You may hear of ‘debt negotiation’ companies or ‘debt settlement’ companies who are basically ‘debt consolidation companies’ who are using illegal tactics and should be avoided.
You can check out any debt consolidation companies, or any other company for that matter, with your local consumer protection agency and the Better Business Bureau in the company’s location. Be aware that debt consolidation companies with a good rating may mean absolutely nothing. In fact, over 75% of the complaints received by the Better Business Bureau do not count against the company’s rating if the complaint is considered resolved. The Better Business Bureau has no authority to investigate complaints against debt consolidation companies, nor resolve them.
One particular word of advice is to avoid any debt consolidation companies who have a registered address in Maryland or Florida. This is because these two states do not regulate debt consolidation companies. There are so many debt consolidation companies available that if you really feel that this is the best course of action for you then avoiding those in Maryland or Florida should be simple and will save you the worry of dealing with a disreputable organisation.
You can find a number of websites that offer a customer review section for debt consolidation companies. This is worth checking out to see if customers of any of the debt consolidation companies that you are considering signing up with have had problems dealing with them in the past.
Jordan Dunham is an expert on student loans, visit www.students-loan-consolidation.org/ today for details.
January 20th, 2008
If you own a home, your options for becoming debt free are numerous. In
this case, you may obtain a home equity loan, line of credit, or
refinance your existing mortgage. All three methods will provide you with the necessary funds to payoff consumer debts, and ultimately reach your
goal of becoming debt free. Fortunately, non-homeowners also have options
for reducing and eliminating debts. Here are a few tips on ways to
consolidate debts without owning a home.
Credit Card Balance Transfers
If you do not own a home, but you have good credit, getting a balance
transfer may be an effective way to consolidate debts. With this method,
you will transfer the balances from high interest credit cards to a low
interest credit card.
In some instances, credit card companies offer balance transfers with
six months of zero interest. Thus, every monthly payment for six months
will go towards reducing the balance. However, if you have a skipped or
late payment, the credit card company will begin charging interest
before the introductory period has expired.
Personal Debt Consolidation Loans from Credit Unions and Banks
Individuals with a high credit rating may be able to obtain a personal
debt consolidation loan through their bank or credit union. Credit
unions are better because they offer lower rates. Each bank has different
lending requirements. In some cases, you may be able to obtain a
no-collateral loan. This generally requires a high credit score and income.
If you do not have good credit, a credit union or bank may approve your
loan request if you have collateral. Collateral includes any piece of
property of adequate value. In some instances, applicants offer
financial institutions vehicle titles.
Non-Profit Consumer Debt Management Programs
If you have exhausted all options for consolidating your debts, contact
a non-profit debt management service. Some consumers attempt to
negotiate better rates with their creditors. Unfortunately, many do not
receive favorable results. Debt management programs can successfully convince
creditors to waive late fees, reduce interest, etc. Because these programs are reputable, and the representatives have clout, creditors are
more apt to accept negotiated terms.
View our recommended companies for Debt Consolidation Services.
January 6th, 2008
Consumer debt in the UK is a major problem, both at a social and individual level. There is not that we can do about the social problem, but individuals can take action to prevent and overcome their own debt problems. While UK citizens may be unfortunate to live in a society where debt is commonplace, they are also fortunate in the way consumer credit and debt counselling services have evolved to meet the problem head on.
Those individuals who start to find their personal debts overwhelming and causing great worry may decide they should seek help through credit counselling. Often, though, they would have benefited from the advice of a counsellor much early. There is still a stigma attached to debt, insolvency and bankruptcy in the UK, and bankruptcy laws are very harsh compared to some states in the US. This may be a contributory factor in discouraging people from taking action and sharing their plight with others.
Such reluctance is a shame, but even so, thousands of people seek debt or credit counselling in one form or another every month in the UK. Fortunately, once they have made the decision to seek advice, they have a good choice of advice sources. Importantly, there are several free debt advisory services, so there really is no need to be tempted by any solicitation from debt advisors who are going to charge.
Here are four free debt counselling services in the UK you can consider:
1. Citizen’s Advice Bureau
The Citizen’s Advice Bureau (CAB) deals with many types of consumer advice, but debt counselling has become a prominent area for them over the last two decades, as the British have slipped into habitual debt problems.
The CAB provides a thorough and free service through its specially trained consumer debt counsellors, who will deal with your creditors on your behalf once you provide all the necessary details of your debts. I have known three people who have used CAB’s debt counselling and were very happy with it.
2. National Debtline
The National Debtline is a telephone based service which has existed, as a charity, since 1991. This is another free service that has evolved to meet the strong demand for debt advice. Some people may prefer the telephone and post to face to face meetings with the consumer credit counsellor, and this service is very popular.
3. Consumer Credit Counselling Service
The Consumer Credit Counselling Service (CCCS) is also a registered charity. Their purpose is to assist people who are in financial difficulty by providing free, independent, impartial and realistic advice; exactly what somebody with debt problems needs. The umbrella charity is called the Foundation for Credit Counselling.
4. Insolvency Helpline
A different type of organisation is the Insolvency Helpline, which offers debt advice to both consumers and companies. It is the largest professional network of lawyers and accountants, specialising in money advice, in the UK. The Insolvency Helpline promotes the provision of independent money advice from the UK’s regulated professional bodies, which means the debt or insolvency counsellors are not only well qualified, but have to follow their professional body’s guidelines.
From the above four bodies, you are sure to find one that will provide valued assistance with coming to terms with and dealing with your debt problems. There is absolutely no need to succumb to the advertising of those who may try to prey on your hardship, and seek upfront payments for their advice.
This consumer credit counselling article was written by Roy Thomsitt, owner/author of the Eliminate Credit Card Debt Now website.
December 12th, 2007
Many people will delay purchasing their dream house until they are in the ideal situation-a perfect credit history, the adequate amount for the down payment and the sufficient money to pay closing fees-with the hope of securing a low rate mortgage with the best terms. But because of increasing house prices and unpredictable low rates, very few people can achieve this situation at the time when a new home is badly needed and postponing a home purchase is not the best option.
Despite situations less perfect for a home mortgage, a home buyer does not have to postpone a home mortgage just to get a new credit score or save up for the down payment in order to be an approval for a house loan. One can start with choosing a good mortgage lender. The Internet is one of the best tools in choosing a good online lender. There are a lot of sub-prime lenders or high risk lenders where you can get mortgage for people with bad credit, some even offering financial assistance. However, unlike conventional home mortgages, an additional fee may be required when working with a high risk lender. Before one can apply with a bank or conventional mortgage lender, one has to submit a loan application to an online mortgage brokers who are connected with loan programs designed for people with poor credit rating. A broker can evaluate loan or quote requests and can choose for you the right mortgage lender that suits your financial situation.
When you have found a mortgage lender, who is willing to give you a home mortgage at affordable interest rates and terms of payment, you can apply for a pre-approval and then start shopping for a new home. In order to save expenses, you can find the house yourself and then agree on a deal. A pre-approval, however, can give the home buyer an edge in negotiating the mortgage and come up of low rates. The home buyer should always keep in mind that home loan mortgages are supposed to be very flexible and can be adjusted to meet the needs of a borrower. Even if you had a bad credit history, there will always be a home loan option for your financial situation. But, the worse the credit score, the higher the interest one has to pay. As a result, the amount of interest will affect one’s buying ability, the monthly payment and the total amount of the home mortgage.
Most sub-prime home mortgages offered to home buyers with bad credit history are “interest only” home loan mortgages. With this loan type, the house buyer is required to pay first the interest of the loan mortgage. Payment of the principal amount will be due after the payment of the interest. In this ways, it becomes easier for the home buyer to fix the credit score and avail of a lower interest rate.
Mortgages are not only for those with sterling credit history. Even if you have a less ideal credit history, buying that house that you really need doesn’t have to wait and you do not have to sacrifice living in the house of your dreams. Think again, there will always be a home loan program suited for you, without anything to lose.
November 25th, 2007
Unsecured debt consolidation lowers your rates, helping you to pay off your debt sooner with one easy payment. You can also reduce your monthly payments. However, consolidating your short term loans can temporarily lower your credit score. You may also be tempted to use your paid off accounts, creating a bigger financial problem.
Lower Interest Rates And Payments
Consolidation loans and debt management plans (DMP) can both lower your rates. Home equity or personal loans offer lower rates than credit cards and can be used to pay off bills. A DMP company negotiate lower rates with your creditors.
With reduced rates, your minimum monthly payment will also be lower. While it is tempting to pay the minimum, keep paying what you are now to rapidly lower your debt. If you do need to lower your payments, consider extending your loan terms.
Easier To Manage
Consolidating your bills makes payments easier to handle. Instead of several accounts to manage, you only have one. DMP only require one monthly payment to the managing company, they then handle paying your accounts.
Temporarily Lowers Credit Rating
A loan or DMP will lower your credit score temporarily. By opening a loan account, your rating is lowered for the credit activity and amount borrowed. You can offset this in part by closing accounts that you pay off.
DMP will lower your rating if your creditors send notice to the credit reporting agencies. Not all creditors report arrangements with DMP companies. If they do, in the short term you may be unable to open new accounts. After a year of regular payments and reduced debts, you will qualify with most lenders.
Tempting To Use Open Credit
Paying off accounts can make it tempting to rack up credit card debt again. This can put you in a worse financial position. To avoid this problem, close accounts that you don’t need. Take credit cards out of your wallet and leave them in a safe place, only to be used for emergencies.
Before signing a contract to consolidate your debts, investigate several companies’ rates and terms to find the best deal. Online websites enable you to find this information easily.
View our recommended companies for Unsecured Debt Consolidation.
November 24th, 2007
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