This Is The Most Preferable Way To Take Care Of Your Debt

Category: Finance, Credit.

A debt consolidation loan is basically a loan taken to pay off other debts.

There are many types of debt consolidation loans, but the most popular are personal loans or home refinancing mortgages. To consolidate debt loans, allows you to have only one payment each month, and typically saves you a lot of money on interest. For many Americans today, consolidate debt loans are the only way out of a mountain of unsecured debt. Secured debt is debt from services or monies that you obtained on credit with collateral, such as a mortgage or pawn. Unsecured debt is debt from services or monies that you obtained on credit without collateral, such as credit card debt. It is very hard to get out from under unsecured debt once it builds up, and consolidate debt loans are the only way to go for those who want to avoid bankruptcy.

Refinance Mortgages: Home mortgages are the most common type of consolidate debt loans. However, there are many types of consolidate debt loans, and you need to know what is available before making any decisions. These mortgages are typically a refinance of the original mortgage, which is a bit complicated but easy enough to understand. When you get into debt, you can refinance your home for the remaining amount of the mortgage. Basically, as you pay on your home, and as home values rise, you build equity in your home. Plus the amount of equity that you have in your home. This effectively consolidating all of your debt into your home mortgage.

You can use this additional financed amount from the equity to pay off your other debt. Second Mortgages: Another type of home mortgage is a second mortgage. Again, you can only take out a second mortgage on your home if you have equity built up in the home, payments, either through improvements, or inflation. This is somewhat like a refinance, except that you are taking out a new loan in addition to the original mortgage. Refinancing is preferable as a general rule. Personal Loans: Personal loans are great for consolidate debt loans, if you can get them.

However, if your first mortgage is at a fixed rate lower than the rate currently offered, you are better off getting a second mortgage so that you pay less interest overall. The problem is that to get personal loans, which are of the nature of unsecured debts, you have to have a decent credit history and score. However, if you have a lot of stuff on credit or through credit cards, and something happens to drastically lower your income unexpectedly, you can use personal loans. Most people do not have good credit if they are looking for consolidate debt loans, so this is not a viable option for most. The key here is that you have to act quickly, and apply for the personal loans as soon as you see that it is necessary and before your credit score begins to drop. Consolidation Debt Loans Services: Many people think that consolidation debt loans services actually loan money. You can then use the personal loan to pay off all of your other debt, effectively consolidating the debt into one easy to make payment, which can often save you a ton of money in interest.

This type of consolidation debt loan is included here for this reason. Instead, these services work out settlements with your creditors to lower the amount you have to pay to clear the debt. However, the truth of the matter is that credit counseling services and debt consolidation services do not actually loan money in most cases. During negotiations, monthly, you make weekly, or quarterly payments to the service, and these funds are put into a type of escrow or savings account. This is the most preferable way to take care of your debt. When negotiations are complete, it is this money that is used to pay off the debt, and nothing else is owed.

However, In Spite Of Such Concerns, Consumer Spending Is Still At Higher- Than- Average Levels

Category: Finance, Credit.

Britons are under more intense financial pressures, a new study has shown.

The score was indicated to be one of the lowest the institution has recorded since it first began its quarterly study some 11 years ago. The latest Financial Reality report by the Alliance Trust Research Centre revealed that the country s economic wellbeing fell by ten percentage points between the third and fourth quarters of 200In the three- month period between July and September the index stood at 86 before falling to 77 in October to December. In addition, this decrease was revealed to be the largest fall witnessed for 18 months. In addition, it was put forward that people currently have to cope with a higher burden of debt than they had to in previous months. According to the company, the nation is developing fiscal difficulties in the face of rising food and transport costs. However, in spite of such concerns, consumer spending is still at higher- than- average levels.

Shona Dobbie, head of Alliance Trust Research Centre, said: "Our latest Financial Reality report highlights how acute the consumer s predicament has become. Indeed, such figures could indicate that households are increasingly struggling to manage the various demands on their spending such as personal loans, household bills and, mortgages store and credit cards. Our measure of consumer wellbeing shows a worsening picture not only for household budgets but for consumers net wealth and the economy as well. We are seeing particular pressure on budgets with higher food and fuel prices and heavy levels of debt and mortgage payments. " Ms Dobbie went on to claim that Britons may find that they are coming under more intense financial pressure in the month to come. This is the first time since the end of 2004 that all these elements that make up consumer wellbeing have fallen at the same time. She pointed towards a curbing in house price growth, the last three months being the" poorest quarter on the stock market in four years" and increasing levels of debt, which could include money owed via loans and plastic cards, as factors which are set to place further constrain on household spending.

She also reported that the study indicated many people have being spending beyond their means for the past two years, which has led to them facing" ever higher levels of debt" . The Alliance Trust chief stated that, following on from such strains on budgets, consumer expenditure is set to slow over the course of 2008, despite the fact that" current spending levels show people have yet to take full stock of their financial reality" . Britons worried that the prospect of more financial pressures will place their capacity for money management into an untenable position could discover that a consolidation loan provides a solution to their problems. This may be particularly helpful for people struggling with money in the wake of the Christmas season. In taking out this type of low- rate loan, borrowers could alleviate the multiple strains that their spending is currently under. A recent MoneyExpert study indicated that about 6 million consumers are looking to switch credit card debts after spending during the festive period.

For such consumers, a cheap consolidation loan might prove to be of great assistance. However, it was claimed that the 6 million Britons who are set to stay with their provider will face an average interest of 182 per cent attached to their borrowing.

Read more...

Some States Also Have Debt Collection Laws - Finance and Credit Articles:

When you hear about collection agencies, do you think about commercials like the one in which someone is avoiding the phone because they re dealing with a mountain of debt? And collection agencies make a lot of calls to people who are behind in their payments.

Credit Card Debt- It Seems We Are Drowning In It - Finance and Credit Articles:

Credit card debt- it seems we are drowning in it. Many of us have multiple credit cards with different balances meaning that each month we have to go through and make sure each one gets paid- and all too often we pay and pay without seeing as much as a dent being made in the balance thanks to interest charges!

Please Note That A Wise Credit Card User May Make Use Of An Introductory Offer To Their Advantage

Category: Finance, Credit.

When it comes to getting a credit card, what may appear to be the best option at first may not work out like you expect.

Before you choose to use a credit card service, we advise customers that they should initially project how much they are going to spend and how they are going to pay it back, they should then use that information to calculate what service provider will charge the least for financing their purchases. That is why getting your head around the industry jargon and terminology can put you in a better position to work out what will be the best deal for you. You may be surprised to learn that the provider you initially thought to be the cheapest, may not be when you analyze the finer details of their terms and conditions. An Interest Free Period relates to the amount of time when the APR will be zero. Interest Free Period. This is more often used as a means of attracting new customers, but will almost certainly only apply to a limited period of your contract.

Introductory Rates( Specials/ Introductory Deals) Should you be offered a special introductory rate then this means that the rate does not apply for the lifetime of your contract with the service provider. Please also note that it is unlikely and uncommon that this will apply to cash withdrawals. They may offer an introductory rate of 0% APR but this is merely to make you reliant on their service, however watch out because they may charge for other elements such as cash withdrawal. Annual Percentage Rate( APR) The amount of additional money you will pay per year on the amount that you borrowed. Please note that a wise credit card user may make use of an introductory offer to their advantage. If for example you borrow$ 1000 over 1 year, then you will pay an additional$ 100 if the APR is 10% .

This is the rate that a credit card provider will charge to clear your existing debt( in whole or in part) if you move your debt to their service. Transfer Rate or Balance Transfer Rate. This can often provide advantages for customers because the credit card provider is willing to invest a large amount of money to attain a new customer. Minimum Credit Card Repayment relates to the minimum amount of your debt that you will have to pay back at the end of each month. Minimum Repayment. This is often in the region of around 4% of your total debt, so therefore although you may not be able to pay all your debt off at the end of the month, please ensure that you are able to pay at least 4% before you complete a purchase. This is a system offered by some credit card providers that reward those who choose to spend money using their card.

Rewards and Cashback. This can sometimes be in the form of Cashback which means that you may get actual cash to spend, or in some cases your cash may be given in the form of a reward where your money will be tied to a particular retailer or given in the form of a gift for example.

Read more...

It Must Be Stressed, That Under Both Plans, Certain Debts Are Ineligible For Bankruptcy Protection - Finance and Credit Articles:

The thought of personal bankruptcy is very frightening, however over 4 per 1, 000 people have filed for bankruptcy last year, and this rate has been growing at an average of nearly 7 percent. According to economists surveys, the classic bankruptcy filer is a blue collar, high school graduate who is the head of a household in the lower middle- income class with heavy use of credit.

Using A Credit Card Is Not At All Dangerous - Tracie Hornback about Finance and Credit:

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.

They Are No Different From The Standard Credit Card In Terms Of Concepts And Functions - Finance and Credit:

Air travel is relatively expensive despite of the existence of several commercial airline companies.

You Are Not Required To Answer Such Questions On An Application For Credit

Category: Finance, Credit.

The Equal Credit Opportunity Act states that all lenders will apply the same credit standards to all consumers, without prohibiting by race, marital status, sex, national origin, age, religion, or public assistance program involvement. The only acceptable measurement for creditors to use is your ability to pay your debts.

This does not guarantee the approval of a loan or credit but does insure that all consumers are given an equal chance to obtain credit. Many applications will contain questions about your sex, or your nationality, your race. These may be asked in conjunction with fair housing laws or affirmative action laws, but these are completely optional. You are not required to answer such questions on an application for credit. Furthermore, you should not be asked about your marital status, unless your partner will help secure and use the loan. S. ) All creditors must notify any applicants of their decision within 30 days.

You may be asked your age under the Equal Credit Opportunity Act, but only to determine if you are old enough to obtain credit( usually 18 years old in the U. If the application is denied, the creditor must provide a written statement detailing the outcome or decision along with the reason for the denial and information on the applicant s rights. The Fair Credit Reporting Act gives individuals the right to view their credit report. This act helps ensure that a certain standard is kept with all applications for credit- no matter who the applicant is. To disseminate this, each citizen can receive one free credit report every 12 months. In reviewing his or her credit, disputes can be logged against specific items on the credit report, allowing the consumer to police the credit reporting agencies. The act allows individuals to receive their credit history for all three national credit reporting agencies.

If the correction to your credit is not up to par, you can also add a brief statement of 100 words or less clarifying the particular item. It was also passed with the intention of curbing identity theft, an ever- growing crime. The act was instituted to uphold the accuracy and privacy of an individual s information in credit reports. By reviewing one s credit report each year, he or she could determine if any sort of identity theft had occurred. Maintaining good credit begins by learning all you can about how credit reporting works. Both acts help protect you by insuring the fairness of the lending industry while allowing you to take control of your credit history and ensure its accuracy. By understanding these laws, you are taking a positive step in creating good credit for a stable financial future.

Read more...

My Wife Was Overspending At Stores - Finance and Credit Blog:

Let s get back to where we left off in the first part of this series.

Most Of Us Own At Least One Credit Card If Not More - Finance and Credit Articles:

Let us face it. Getting a bill every month is always an agonizing experience because that makes us realize how much we have spent.

For Starters, Consider The Need To Get Approved For A Loan - Finance and Credit Blog:

A car purchase has to be clubbed with the bigger investments of life. Getting a car loan may be easier than getting a mortgage, but it still involves a certain amount of running around and maybe a large pile of documents.

Having A Terminal Will Help Guarantee That You Will Get Paid

Category: Finance, Credit.

Having a credit card terminal in your business can greatly benefit it if used properly.

Without a terminal you can stand to lose profits if you are not careful. So many people now use credit cards for buying and selling that a credit card terminal is almost necessary. Technology that is now available in regards to cards and having a credit card terminal is part of what can bring success to businesses. They will walk you through every single step and even help you figure out how exactly to use it. If you do order a terminal you will find that there are willing people to help you to install it just by dialing the telephone. Just remember any hassle that seems to come from having a terminal can be balanced out by more sales be created by its instillation. Even if you are a brand new business just starting you can find a dealer who would be more than willing to rent you a terminal, it just takes a little legwork to find it.

There is the option of either buying a terminal straight out or leasing it from a licensed dealer and this can offer more options and convenience. In the end it can only make your business stronger and more successful. There are different companies that provide terminals and some will have a certain percentage charged for each transaction that is completed on the terminal. Of course your customers should be aware that there might be some small fees when it comes to terminals. A fee may also be charged to the business owner, but is so minimal that it doesn t even affect the benefits you will receive from having a wider customer base because of it. You may have to search for a while to find a good price but they are out there. You can find businesses online that sell terminals as well as those that lease them.

There is usually a satisfaction guarantee presented with most of these companies. Something that is very beneficial about having a credit card terminal is that it makes it more convenient for your customers and therefore will help increase your customer base. You should be very careful when giving out any information if the site is not secured, but with some work you can find a great company with a terminal for you and your business. It is also a safer way to go then more traditional payment methods such as cash, which can be stolen, or checks that may bounce and cause you financial stress later on. As you can see there are many advantages to having a credit card terminal installed in your business. Having a terminal will help guarantee that you will get paid.

It is also a very simple and easy thing to get started with and there are different options in acquiring one that can just about make it easy for anyone to get one. So go ahead get a terminal and start making more money today.

Read more...

There Are Some Steps You Should Take Before You Even Think About Getting Mortgage Advice - Finance and Credit:

Some bad credit mortgages are backed by major insurance providers but available through brokers, others by stand- alone providers, but they will mean higher interest rates, greater monthly payments and higher penalties for arrears. There are some steps you should take before you even think about getting mortgage advice.

You Need Good Credit

Category: Finance, Credit.

A great way to do your daily business is to have all purchases put on your 0% APR credit card. In a day of high interest, you could probably use such a card, and this article will tell you how to look for the one that is best for you and how to get your own 0% APR credit card offers.

The convenience is there of using a credit card, and the luxury of knowing that the amount owed will not receive any interest charged to it. Here are some things that you should look for. This is the primary prerequisite to getting that 0% APR credit card. You Need Good Credit. Nearly all credit card companies will require either a rating of good credit or of excellent credit before they will give you this type of card. It Is An Introductory Offer.

So, if your credit just is not up to that level yet, know that you can work to bring it up to that level, and then- there are rewards for you when you get there. The 0% APR is only an introductory offer that lasts for a specified amount of time- not the life of the card. It may be for as short as 6 months, or even as, a year long as 15 months. When doing your comparison shopping for a 0% APR credit cards, be sure that you compare the time period involved. Balance Transfer Or All Purchases. In other words, only the amount that you transfer from another credit card to the new one receives the 0% APR.

Some credit card ads that say 0% APR credit cards only refer to the balance transfer option. All other purchases receive a regular rate of interest for that card. Online 0% APR credit card comparison charts will usually show the items in a way similar to this: Intro APR Period and Regular APR. Be sure that you look carefully to see if this is what is meant by 0% APR, or if it means all purchases. The regular APR, refers to all, of course purchases made after the introductory time period. Why settle for just 0% APR, when you can even get an additional savings? Cash Back Option.

More ways to save- whether it be cash, definitely sweetens the, or points pot a little bit more. Watch out for the need to leave a monthly outstanding balance in order to receive your cash back rewards. Again, you have to, though look around and do that comparison shopping for your 0% APR credit card. Annual Fee. It seems that they might be hoping that you don t compare the cards too carefully. A rather small percentage of these credit cards do have an annual fee. This fee can go from anywhere between$ 15 all the way up to$ 1300( more for a business card) .

Eventually, the day when your rates return to normal will come. Interest Rates. Or, typically, if you miss a payment, or are late with it, you can find yourself being charged the full interest rate. These rates will vary from a low of about 99% up to about 199% , depending on the particular card. Interest rates for these kind of cards are normally low- - as long as the payments are made, on time. With these tips about what to look for when you re in the market for a 0% APR credit card, you should be able to find just what you need. Do your comparison shopping carefully, and make an educated decision- and keep tabs on your monthly bill, for any extra, too charges.

Read more...

The Wired Plastic Prepaid Visa - Finance and Credit:

Most experts suggest college is the best time to create a credit record, and the best way to do that is with a credit card. The answer to this dilemma?

Great No Annual Fee Cards - Finance and Credit Articles:

The greater part of banks now offer no annual fee credit cards to bait prospective consumers. Don t jump at the first offer you receive though.

You Will Be Able To Determine How Dependable The Credit Counselor Is - Kristi Leclair's Finance and Credit blog:

When in deep financial trouble or needing help in planning finances one could opt for seeking professional advice.

You Cannot Settle Secured Debts

Category: Finance, Credit.

I ve talked to people who didn t believe that the credit card companies would actually settle for less than they were owed. If your debt is no longer with the original creditor, and has been sent to a collection agency, you will have to deal with them.

But the fact is that if you haven t paid your bill in a few months, it is likely that they will offer you a settlement without you doing anything. I have actually gotten better deals from some collection agencies than from the original creditor. I don t wan to imply that there are no consequences, but the process is fairly slow. There is no need to panic about the first collection notice you receive. The collection agency wants you to pay. If that happens, nobody wins.

They have no interest in you declaring bankruptcy. If they win a judgment in court, they can levy your wages, or hire the sheriff to get your property. I don t want to say it wont happen, because it can. This is unlikely. Usually, the expense is to great and they are more likely to sell the debt on the open market to another collector who will again try to collect. When debt becomes overwhelming, and the word" bankruptcy" starts going through your mind, don t let it get to you. These companies buy old debt on the secondary market where debt is traded much like secondary mortgages.

Collection agencies love to tell tall tales of gloom, about taking your pay check or your property. Since most consumers don t know this, they turn unnecessarily to bankruptcy. What they sometimes don t tell you( unlawfully) is that they can do none of these things until after they get a judgment against you in court. Bankruptcy may become an option at some point, but there are plenty of other choices for dealing with debt before it gets to that. The first step in the settlement process is to try" debt validation" . Make sure you have taken advantage of all of the other options available to you for settling your debt before you go through the financial ruin of a bankruptcy.

Don t attempt to settle a debt until you have checked the statute of limitations. Usually after 7 years negative marks will disappear from your credit report. If the debt is older than the statute of limitations, then the collector is wasting their time and yours. We do need to be clear about something. If it has been over 7 years, and the debt has been removed from your credit bureau report but the statute of limitations is 10 years- you are still liable for the debt! The creditor can still go to court and get a judgment even after the past due debt no longer shows on your credit report. If however, the debt is off of your credit report, and the statute of limitations has passed, it can no longer be collected.

If you know that the statute of limitations has not passed, then validation is a waste of time. You don t have to worry about it any more. You can move immediately to making arrangements to settle the debt. Their job is to use any legal means to get you to pay. The collection agency is assigned the debt by the original creditor. These may be companies who have purchased the debt, sometimes called junk debt buyers.

Don t panic just because you receive a letter from an attorney. They may also be attorneys who attempt to collect either by calling, or sending you a letter. They have to go through the same court process as any other collector before they can do any type of enforced collection. Unsecured debts include things like store cards, medical bills, gas cards, master card, amex, visa, etc. Some debts are easier to settle than others. These are generally pretty easy to settle.

You have promised an actual asset as security for the loan. You cannot settle secured debts! If you default, or cannot make your payments, you have already promised to give back the property. You can get a creditor to make a good deal. Repossession is used for personal property such as automobiles, and foreclosure is used for real property. In the negotiation, you have the advantage.

They will drive a hard bargain. You have what the creditor wants. They will tell you no. Be professional, be courteous. Stand firm, and make a good deal. Let them know that you know what your rights are, and what they can and cannot do. You will want to have ALL they paperwork so you can validate your efforts.

Correspond with them by mail. This means saving not only the letter, but the envelopes with the postmark. One rule is, if it wasn t written, it wasn t done. When you send mail to them, send it certified mail with a return receipt. If I were to ask you to prove that you sent a particular piece of mail to the creditor, you you be able to produce proof? How much should you offer?

They agency will almost always take substantially less than what is owed. They amount that companies receive for old debt is quite literally a few cents per dollar. If the debt has been charged off recently, the company may have paid only six or seven cents on the dollar. The amounts that they pay depend on the age of the debt. If the debt has been cycled through a couple of different agencies in an attempt to collect, they may have paid less than 2 or 3 cents on the dollar. Knowing this, start your offer at 25% or less.

If the account is several years old, and is out of statute, they are basically worthless, and may have been sold for one cent or less. If you have an old credit card balance of$ 10000, the collection agency has probably paid at the most$ 700 for the debt( seven cents on the dollar) . So this money is all profit to the collections. If you only offer them$ 2500, they still make a profit of$ 180The original creditor gets nothing because they have already sold the debt. Remember the rule- if it wasn t written, it wasn t done. Make sure you have all terms in writing before you send anyone any money. Keeping this in mind, and I mean, never NEVER, talk to a collection agency on the phone.

A creditor will almost never live up to a verbal agreement. Good records make or break a settlement. You need to have written documentation of all agreements, and even then you can expect a fight. Keep a copy of every letter you send. If you do call a collection agency, my first question is WHY? Its important to remember that you may not only need to verify what they collector told you, but also what you sent to them.

My second question is are you keeping a log book of the calls, the date, the time, and first and last name of the person you spoke to, their employee number if they have one, and a general record of the topic discussed including any promises made. Keep in mind it is illegal to record a conversation without notifying the other party that the call is being recorded. You can also go to Radio Shack and by a telephone recorder. But when they tell you that" the call is being recorded for quality assurance" it is kind of fun to tell them thats OK, because you are recording them also. Agencies will sometimes add charges that don t actually exist to a debt, basically because they just want to make more money. Make sure you know the amount of the debt.

I understand the motivation to make more money, but this practice is illegal. Most companies will waive the fees. If your original debt was$ 20000 and its less than 5 years old and has somehow become$ 10, 000, then you know there is some serious padding going on. You generally have a lot of time. Just because the debt has become inactive from a collection standpoint, doesn t mean that they won t try other means to collect. As the debt gets older, the daily calls will stop, and as the debt remains uncollected your chances for a good settlement increase.

Don t think that they have forgotten about it. Don t be in a hurry to settle. They may consider the debt to be a loss and take the tax write off, or may forget about it for a few months and then pursue a judgment. Take lots of time to reach an agreement. Don t be" friendly" . If your trying to settle the debt for a specific reason, its none of their business. Be polite and professional.

And anything you say will be used for that purpose. But no matter how nice these people seem, they are not your friends, they are not there to help you, they are there for one reason- to collect the debt. If you tell them that you need to settle so you can buy a new car, you can basically forget a decent settlement. Don t accept the first offer they make. Let them deal. Sometimes you will be contacted by a second collection agency attempting to collect the same debt, at the same time.

You should use the threat of bankruptcy. Negotiate with both, and take the best deal. It is in your best interest to let the collector think that you have no money, and that you are on the precipice of bankruptcy. Thats its for today. Make the collector think that this is their last chance to make an arrangement for payment. Thats a lot of information. Negotiating your debt can save you literally thousands of dollars.

Over the last three days we have covered what a collector can do, and some strategies, what they cant for negotiating your debts and paying a lower about. I constantly stress that while you can certainly settle your debt on your own, it is sometimes best to get a professional to handle a this for you. Whatever you choose to do, get started today. You know your situation and your comfort level. And begin living a debt free life.