Friday, August 29, 2008

You Should Also Be Getting A Monthly Statement From The Credit Counselor

Category: Finance, Credit.

We have all seen and heard the commercials telling us how great credit counseling is. When first heard, they sound like a miracle solution to all of our credit problems.



These organizations brag that they can help us to repair our credit and may even be able to reduce those nagging monthly payments. Yet, before you rush off and call that phone number to that credit counselor, you should think about a few things first. The National Foundation for Credit Counseling suggests that you may need a credit counselor if one or more of the following factors are true. - Your total monthly credit card payments amount to 15 percent or more of the amount of your take home pay. - You can t afford even the minimum monthly payments on these charges. - You can just barely afford those minimum charges. - You can t pay all your creditors, every month. - You routinely use your credit cards as payment for gas and food, because this is your only option of purchasing these needed items. Such as: Do you really need this help? If you do find yourself in the predicament that you were able to answer true to most or some of those circumstances, then your best bet may well be credit counseling. Firstly, look at their credentials. Now what are your options and what should you do before and as you hire one?


Some people have actually been scammed by people claiming to be credit counselors and all they did was lose more money and further tarnish their credit ratings. You can also check out the NFCC( National Foundation For Credit Counseling) and see the list of their members, who train at regular meetings and must meet ethical standards, are non- profits, and who are, are bonded audited regularly. If you want to hire a credit counselor you have the option of checking their credentials to see if they are listed on the US Department of Justice s list of agencies of approved counsel bankruptcy clients. You should always be wary of credit counselors who do any of the following: - Try to push a plan on you without giving you time to assess the situation or without the counselor doing the same. Bankruptcy and the like is not always the final outcome. Sometimes a counselor may recommend a new budget.


Plus, that first interview should take a half hour or more to discuss all your angles of your finances. - Charge enormous upfront fees. Administrative monthly costs also generally run about$ 2- The counselor promises to fix your credit rating. The average fee for that first consultation is around$ 20If you decide to join a debt management program that cost usually ranges close to$ 5This charge is for the agency setting up all the account and repayments for you. No counselor can wipe away your bad credit record by charging you a fee, without doing something illegal or unethical( such as setting up phony accounts under another person s name and social security number, which is illegal) . This means you want to check those monthly statements that comes in every month to make sure those payments are still being made. Finally, if you do decide to go ahead with the debt management program, be sure to track your progress.


You should also be getting a monthly statement from the credit counselor. Remember these charges are still your responsibility. Check this as well. If they are not paid, you are the one who will be held responsible and you will be the one who has the damaged credit rating. Many people with credit problems have been able to clear up their debt quicker with the help of a credit counselor. For these two reasons pay attention to what your counselor is actually doing.


Just make sure you pay attention to all the details before hiring one and before signing any contracts with one.

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When It Comes To Establishing Credit, A Credit Card Can Be The Easiest Way To Do That, But Could Also Be The Most Costly - Finance and Credit Articles:

When it comes to establishing credit, a credit card can be the easiest way to do that, but could also be the most costly. Many credit cards have an annual fee, but the card usually comes with perks.

The Same Goes For Gas - Finance and Credit Articles:

Everyone in today s society likes to drive automobiles.

Wednesday, August 27, 2008

Poor Credit Is Not The End Of The World

Category: Finance, Credit.

Bad credit points are earned when a person who has taken a loan finds repayment to be difficult. As a result, he will not be given top priority if he later needs another loan.



What this means is that his credit ranking drops considerably. But this does not mean that he is not eligible for any loan at all. This is probably the reason why banks and various other lending institutions have begun to finally take them seriously. These days, we are seeing a rise in the numbers of people who fall into the category of people having poor credit. Any business is good business say the entrepreneurs of the world. One should not be too hard on people who are going through a tough financial situation. And who knows, one day the very same person who is struggling with bad credit might grow big and he might improve his credit scores considerably.


Cash crunches are a truth of life and we all have to deal with them at some time or another. At such times, they will have to try and get out of the troubled times. Most times, if a person is going through a bad financial situation, it will most likely end up being nothing but a temporary phase. It could be a smart move to go and look for some financial help. By extending loans to people, banks are helping people to repay their other debts. It is a good idea for people with debt troubles to approach a bank for a loan. These loans are also forwarded to people who are looking to rebuild their credit history once again.


This might provide him with an opportunity to start building his credit levels. For all we know, such a venture might just turn out to be a major turning point in the life of the person who has been saddled with a history of bad credit. One must remember that the blame for adverse credit does not always lie with the individual. However, all things said and done, there are lenders who will not offer loans or credit cards to people with a poor credit history. Often enough, it is the situation that leads to adverse credit, and not the person himself. Also if a person has defaulted on his payments, credit card companies might avoid him by tagging him as a high risk element. Going into depression because of bad credit will not be helpful.


Unless these people prove to these companies that they can meet the payment schedules, they might not be able to procure the money that they need. Instead, one must try and get back on one s feet and work on rebuilding one s credit. This will also give them an idea as to where they stand and what they are capable of. A good financial planner must be sought out to help consolidate finances and pave the way for tomorrow. This will provide the necessary confidence to get out of such a situation. In the world of today, people with adverse credit need not give up hope.


Poor credit is not the end of the world.

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The Best No Annual Fee Credit Cards - Finance and Credit Blog:

The majority of banks now offer no annual fee credit cards to lure in potential customers.

Individual Credit Reporting Agencies Viz - Dionne Bodin about Finance and Credit:

Equifax, Experian and TransUnion: These three credit reporting agencies determine the credit worthiness of people in USA by making credit ratings for them.

You Must Cut Up Your Old Credit Cards - Finance and Credit Blog:

If you have thousands of dollars of credit card debt, you might be considering taking out a second mortgage to pay off the balance. First, let s define a second mortgage.

Tuesday, August 26, 2008

Debt Settlement Agencies

Category: Finance, Credit.

As the consumer debt increases every day there has been parallel growth of debt management services. And the better services will go beyond that and help their clients to stay clear of future debts once they have successfully eliminated their present debt.



The function of these services is to help their clients get rid of their existing debt. So the services help their clients to get their financial footing back again and stay that way for the rest of their lives. This feat is mainly accomplished by counseling their clients and developing their budgeting and counseling skills. How does the debt management firm achieve this? It is only after the consumer inculcates these skills that he will be able to stay clear of the debt trap which is such a threat posed by credit cards. The main objective of Debt Settlement is similar to what it is of Credit Counseling and that is to make their client get rid of the debts they have accumulated. Debt Settlement Agencies.


But there is a difference in the way the two perform. Personal Loans. While the Credit Counseling or Debt Reduction method work on reducing the rate of interest for you to pay off your debt more easily, the Debt Settlement method actually reduces your original principal amount of loan by up to 50% -75% . Personal loans are generally a good option when it comes to credit repair. The loans are sanctioned quickly. This is because you can get a loan sanctioned with relatively little paperwork. And the loan comes with a moderate rate of interest, much lower than what you pay on your dues on a credit card.


So unlike home equity loans you are not risking something very important to you. Also personal loans don t require you to provide any security. Home Equity Loans. The reasons are simple. The home equity loan is very popular, both with the investor and the creditor. The creditor sees that his loan is secured because you are putting your most prized possession on the line.


On top of that some tax systems actually give you tax benefits on the interest of your loan if it is under the home equity loan. As an investor you will be happy because you will be getting generous interest rates from the creditor. We have just discussed four options here. Of course there are plenty more which you can avail of.

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Most Credit Cards Have Affiliations With Specific Airlines Or Carriers - Lou Sedillo about Finance and Credit:

Let s talk about the most common questions asked about frequent flier miles credit cards. Generally, points are earned based on the amount of purchases charged on the credit card.

Using A Credit Card Is Not At All Dangerous - Finance and Credit Articles:

With a rise in issue of credit card by the financial institutions, problems related to financial management has also grown three folds. But when it comes to credit card buying, the situations are quite ironical.

As A Result, People Should Be Able To Spot Areas Where They Can Reduce Their Expenditure - Finance and Credit:

Britons financial difficulties are set to increase over the course of the coming months, an industry expert has reported. He added that such fiscal difficulties have also been exacerbated" a bit" on the part of financial services providers who are attempting to recoup some of the money lost via bad debt by becoming stricter with lending criteria.

Monday, August 25, 2008

Another Very Popular Option Is Debt Consolidation

Category: Finance, Credit.

Debt is a burden most consumers struggle with on a daily basis.



Choosing the correct way is a personal choice involving, among other things. The approach we take in dealing with this burden is what separates us as individuals. Family discussion, best interest rate research, and visitation with a debt management or debt consolidation professional. First, you may want to consider reducing the principal balance on a current loan, or even take this step with multiple loans. There are two distinct ways to deal with consumer debt. Paying a bit more than the minimum required and having that amount applied to the principal is one small way to reduce debt in the long run. Another very popular option is debt consolidation.


It may be wise to look into the specific loans you have, take a close look at your budget, then see if there are ways to reduce the amounts owed on the various loans. With debt consolidation, you can reduce your monthly payments by placing several loans under one all- purpose consolidation loan agreement with one lender. Debt( the amount of money owed to a bank, credit union or individual lender) is composed of just a few pieces. In addition to simplifying expenses and optimizing your budget, reducing your payment can help your overall credit profile, since debt burden is measured by comparing your loan payment as a percentage in relation to your total income. Simply put, debt is calculated by the amount borrowed, plus the interest charged for the privilege of borrowing said money, and usually some final additional administration and bookkeeping charges. When considering debt consolidation in any situation it is best to also understand the difference between secured debt, such as home mortgage loans, such as credit, and unsecured debt card bills. Tip: Be sure to include changes in interest and additional finance charges when figuring the cost of new loans and/ or consolidation loans.


With the original loans or a consolidation loan, if you are able to make the payments and don t have trouble with late- payment penalties, you are managing your debt fairly well. It is at this point that the difference between a secured loan and an unsecured loan can be crucial. But if you miss payments, the lender will have to take some action. With a secured loan, the lender may be able to take your property if you don t keep up with payments according to the agreement. A lender may even be willing to reduce or suspend your payments for a short time. Most lenders are willing to work with you if they believe you are acting in good faith. When you resume regular payments, you may have, though to pay an additional amount toward the past due total to get back on track.


But, since there is no collateral to take, the debt may be discharged if your financial problems lead to bankruptcy. If you have unsecured loans, your credit rating will suffer and you will not be able to get future credit or loans easily. This certainly does not mean that unsecured debt is the best way to go. Making the choice between a secured loan and an unsecured loan depends entirely on the individual situation and be considered carefully. In fact, to get unsecured personal loans you will have to have an extremely good credit history and, proof of sufficient, generally income. There are other bumps in the debt consolidation road that can cause trouble if they are not understood from the beginning. But keep in mind that lenders offering debt consolidation may charge high interest rates and significant late- payment penalties for those who already have trouble keeping up with current payments. (This may be necessary precisely because consolidators are working with problem borrowers. ) With one high interest rate rather than two or three your monthly payment is lower but, in the long run, you pay more in total.


The existence of several loans with high interest rates may lead you to think that debt consolidation is an easy answer. One of the key reasons for consolidating debt in recent years has been the rise in credit card debt, which often comes with interest rates that are considerably higher than with other loans, mortgages etc. Debt consolidation can help in many cases, though a change in spending habits is advisable so that new credit card debt is avoided in the future. People can build credit card debt because they spend more than their income, buying luxury items( or even things they feel are necessary) , hoping to be able to pay off the amount borrowed with future earnings. In fact, almost every reputable debt management counselor will advise treating the real cause of debt problems. To most of these professionals, debt is a symptom of other problems that must first be addressed. The lax underlying spending and saving habits of its customers.


If you have built up a lot of credit card debt or your particular situation has made it necessary to get two or more loans( and you want to simplify things with one monthly payment) , personal property such as a home or car may allow you to get a lower interest rate. In some cases, the total interest and the total cash flow paid towards the debt is lower, allowing the debt to be paid off sooner, incurring less interest. Using a home or other valuable property as collateral allows you to work with a bank or other lender to get a secured loan. Because the property is a" guarantee" for the loan, the lender may offer a lower interest rate, more agreeable payment schedule and fewer extra fees and charges. (However, keep in mind the difference between secured and unsecured loans. ) Any debt consolidation plan, whether it is a home equity loan, unsecured loan with a credit card company or even a personal loan, can add to debt problems rather than help solve these same problems. Debt consolidation can be the answer to financial problems, if it is managed properly in the correct situation. That is why it is very important to take time, to figure all, from the beginning the costs for the entire period of any loan.


Getting out of debt is not easy, but you can do it, you just need a plan.

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This Card Makes It Quite Attractive To Make Purchases, Too - Wendi Study's Finance and Credit blog:

It s actually quite rare in our society that we have the time or resources to truly make a difference, but with the Make- A- Wish Platinum Visa Card, you can change a child s life every time you buy groceries or fill your car with gas. Since that time, 000 children worldwide, more than 144 have been helped by this amazing organization, 000 volunteers standing, and with 25 ready, all that s needed is your support to" share the power of a wish. " Each time you buy anything with your Make- A- Wish Platinum Visa Card, a percentage of that purchase is donated to the foundation that helps so many children.

Credit Limits - Finance and Credit Articles:

Credit cards are a convenient method of obtaining credit and when used properly they can provide flexibility& a range of useful benefits for the cardholder.

There Are Many Reasons Your Credit Rating May Fall - Angie Lubinsky about Finance and Credit:

Are you one of many people today that needs to find a company that offers credit cards to people with bad credit?

Sunday, August 24, 2008

Next, You And The Counselor Will Go Over All The Debts You Have To Pay

Category: Finance, Credit.

What exactly do credit counseling agencies do?



The agency will: A) Detail what you owe. To put it simply, a credit counseling agency analyzes your sources of income and your expenses. B) Give you an organized picture of your financial situation. D) Tell you the steps you need to take to reach those goals. C) Provide options that match your resources, and goals, lifestyle. Whether you first contact a credit- counseling agency by phone, e- mail, the counselor will, or in person ask you why you re there, what you d like to accomplish at the meeting, and what your short- term and long- term goals are.


You ll be asked about your income sources and tax deductions, as well as your monthly expenses. Then some fairly detailed data- gathering will take place. Having a good idea about what your monthly expenses are is very helpful, but it isn t a requirement- if you don t know, the credit counselor can help you estimate them. The counselor will suggest ways to adjust your expenses or income, to get you to a positive cash- flow position( in which more money is coming into your household than is going out) . A quick subtraction of expenses from income will tell you how much you have available for monthly debt service, if any. Next, you and the counselor will go over all the debts you have to pay. If anything is left over, you re basically done- you ll leave with an action plan and a budget you can follow to keep your expenses in line with your income.


The positive cash flow from the earlier calculation will be applied to the amount you have to pay out. If the result is negative( if you have more expenses than you have income) , you and your counselor will rework the expenses to free up cash flow and he ll tell you what your debt service would be under a debt- management plan. If you can t get to a positive cash flow, the counselor will refer you to an attorney or other community resources for additional help. This process of reducing your expenses and increasing your income will continue until you and the counselor get to a positive cash flow or it becomes apparent that, no matter what you do, the numbers just don t work in your favor. Everything described above can be done through the mail, or via e, over the phone mail. For example, you might start out on the Internet filling out a contact form and asking questions.


Often, the process involves more than one of these methods over a series of contacts and days. Then you might follow up with a phone call to clarify and discuss matters further. The method of contact you use is just a matter of what you re most comfortable with- one method isn t better than another. And you might go into an office or use the mail to finalize your solutions. Unfortunately, there is no magic wand to make all your financial problems disappear, but a good certified credit counselor will always offer solutions. Your counselor will give you a balanced perspective of what you need to do, how long it will take, and what resources are available to help you along the way. Expect more than one solution, and expect some solutions you don t like.


Your counselor will probably discuss bankruptcy, as well as other solutions. A good credit counselor offers solutions with your future goals in focus. The counselor will propose solutions not just in the light of your current situation, but in light of your future needs. A solution that works best for you is one that not only deals with current issues but takes into account how you see your future. For about 75 percent of the over 1 million people who bare their souls to credit counselors each year, advice and direction are all they need. For example, if you re planning to buy a house, get a security clearance at work, or send your triplets to college in five years, that future goal will affect the course of action that will best fit your needs. An unexpected by- product is improved financial communication.


Expect to have a customized action plan when you re finished with your credit counselor. For many couples and families, credit counseling is the first time that goals, and even some, spending priorities secrets such as hidden debts are openly discussed. To be useful, an action plan has to fit you and the way you live. You don t wear clothes that are too tight- and you won t follow a poorly fitted financial plan. If it doesn t, you won t follow it. A comfortable budget designed with your spending and saving style in mind is more likely to be something you ll follow. Expect some fine- tuning as you go.


If you re struggling toward the abyss of debt, a good credit- counseling agency can help you understand how you landed in your predicament, what you need to do to correct the problem, and how to maintain your good financial reputation. Although your counselor will anticipate as much as possible when developing your plan, he can t foresee the future. Not only can things go wrong, but with limited financial resources, every bump in the road will feel much worse. Murphy s Law applies to credit counseling in spades. Ongoing involvement with your credit- counseling agency as you navigate this credit- repair journey will help you stay the course. You should be able to go back to your counselor for additional suggestions and referrals as you go along although most people, when they have a workable plan in hand, are off on their own.


Expect the agency to make this easier for you, by giving you names, e- mail addresses, and phone numbers of people to contact beyond the agency for more help.

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Above All, Use Your Card Intelligently - Finance and Credit Blog:

In our daily lives, we often encounter problems which concern the family, business, work, and many other things.

You Can Only Get Premium Rewards From A Premium Solution- The Qantas Premium Credit Card - Finance and Credit:

Most people enjoying flying because it offers a fresh experience and a new chance to see a new part of the world, or even a new part of Australia. However, flying can get a bit pricy and depending on where and when you are flying you could be facing a pretty steep plane ticket price.

Credit Cards Come With Enough Safety Measures, But Crimes That Include Credit Card Fraud Are Increasing At Alarming Rate - Finance and Credit Blog:

Credit cards come with enough safety measures, but crimes that include credit card fraud are increasing at alarming rate. In this article we take a look at 5 important precautions that every credit card holder should take so that his credit card doesn t fall into wrong hands.

Saturday, August 23, 2008

The Basics Of Credit In Regards To A Mortgage

Category: Finance, Credit.

Mortgage credit repair is one of the most damaging things you may have to undertake because your mortgage is on the line. Your credit rating bears a heavy standard on your mortgage possibilities, so mortgage credit repair is vitally important if you have a bad credit rating and are looking for a good mortgage rate.



In order to learn more about this, you should learn about mortgages first and the effect that they can have on your overall credit rating and vice versa. You may find yourself in a difficult situation if you cannot properly repair your credit rating. Arranging a mortgage is basically seen as the standard practice by which people can purchase land or commercial/ residential real estate. A mortgage is a method of using property to serve as security for the repayment of a loan. This is because it presents the buyer with the option to not pay the full value immediately and rather take out a mortgage instead to cover the costs. The Basics Of Credit In Regards To A Mortgage. You would need mortgage credit repair if you were in a situation in which you required a mortgage but if your credit was not good enough to support the agreement.


Mortgage credit repair, is needed if, as mentioned your credit is in a bad place and you are unable to borrow against the property. A credit report is a report from a credit bureau that contains detailed information in regards to your credit- worthiness and your credit history. You would find this information out with a credit report. From this document, companies can decide if you are worthy of credit or make determinations based on your credit history and decide on your mortgage rate or whether or not to even grant you such a loan with terms. When you obtain your credit reports, a major step to take in mortgage credit repair is to check for errors. A credit report contains personal information, information from public records, information from collection agencies, information from various creditors, and information from inquiries. There are often errors in credit reports and these errors can cost you a lot of time and money in waiting for the right loan agreement because of the incorrect data in your report.


Always be diligent in checking reports and search for errors that may be hindering the process of taking out a loan for your family.

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It S Always Great To Have A Good Credit Limit - Finance and Credit:

Credit card is a convenient and cashless way to carry money.

Ask The Debt Consolidation Pro How Can A Bad Credit Credit Card Improve Your Credit - Finance and Credit Blog:

If your credit ratings have been at the receiving end for all the reasons that can attract bad ratings you need to stop and assess your debit situation. This will help you assess your debit situation and arrive at a decision on how to improve it.

Quarterly, A Statement Is Mailed To The Student - Denise Conboy's Finance and Credit blog:

The cost of post- secondary education, like everything else in life, is on the rise.

Wednesday, August 20, 2008

When Is It Time To Get Serious About These Fees

Category: Finance, Credit.

Most borrowers pay little attention to the" fine print" on a credit application.



Unbeknownst to them they are committed to a legal contract that is heavily weighed in the creditors favor. Most shrug their shoulders, promise themselves they ll never get in trouble with their credit card, and sign away. Yet again the" I want it now" mind- set has overcome better judgment. What is the real cost of bad credit? That legalese at the bottom of every credit application, that few seldom read, clearly outlines what will happen if you break your promise to pay on time. There is the obvious increase in borrowing costs, not to mention the hassles of opening up new credit lines. What about the added stress to your family, missed opportunities that having good credit would have allowed you to capitalize on, and the fact that now you are" marked" as a bad credit risk with your financial history open for all potential lenders to see?


The extra interest you pay is only scratching the surface of the problems created. Even if your problem is short- term your creditors do nothing to help you. These fees do nothing for you, but help the creditor in a couple of ways: They cause you to focus on their bill instead of another creditor s bill. They simply enforce the credit agreement and hit you with some fat fees. The creditor makes more money off you because of the late fees you agreed to pay when you signed the agreement. If you fall behind several months in your house payment you may be hit with huge fees that have to be paid in full to avoid or stop foreclosure. If you think the fees are bad on credit cards they are even worse on secured loans, such as mortgages.


When is it time to get serious about these fees? As soon as those show up it is time to pick up the phone and call the creditor and ask to have the fees waived. As soon as you realize you may be obligated to pay late fees, deficiency fees, legal fees, and default rates to name a few. Start by explaining how you plan to get current and let them know you need their help, not their fees. That is why we take the time to meet with our clients and explain ALL of their options to provide comprehensive foreclosure help. There are many reasons why homeowners sometimes are unable to pay their mortgages and every situation is unique.


No matter what your situation, you have options and we can help you stop foreclosure.

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There Is This Scene In Desperate Housewives With Bree Son Andrew Spending Her Credit Card On His Expenses - Brooke Bouwens about Finance and Credit:

As long as they are able to handle the responsibility that comes along with it well.

But How Do You Find The Right Debt Settlement Company - Finance and Credit Articles:

Debt settlement is increasingly being adopted as a popular means to get out of credit card debt.

Low Credit Limits - Finance and Credit Articles:

Bad credit can happen to anyone. Credit card companies see bad credit people as a good means to fill up their coffers.