June 12th, 2008

What are your options to become debt free?

Posted in Credit, Debt, Finance, Uncategorized by admin

Hello my name is Steve Bis and I have been assisting consumers that are in debt with their credit cards for a long time and know the negative effects it has on people’s lives. When you have credit card debt and know that this matter is no longer in your hands, you must make a choice on what to do and make it fast. You should not procrastinate until it is too late. As the majority of you must already know is that the debt collectors are not helpful when you contact them with problems regarding you statement. It’s pretty interesting the way it works because when you initially obtain the card they are the politest people while you are speaking with them. Then if you call them to dispute a past due or over limit charge and try to have it , they might let you off with one a year, if that agent is in a good mood. When it comes down to it what choices do you have? It’s not like you can discontinue making payments on your rent/mortgage or other requirements for your family to survive with day to day living expenses.

The credit card companies made over 17 billion dollars in over limit and late fees last year and it will be much higher this year. Now I am sure that it has happened to you, where you’ve gone and open your monthly credit card bill only to discover that your interest rate has nearly doubled or even tripled. It is bad enough trying to keep up with 8% or even the 7.9 % interest that they are charging on your credit cards. How are you suppose to deal with the higher payments now? It was dreadful enough to manage before the interest was raised. This is why many Americans are searching for other options such as credit card debt settlement vs. credit counseling, or bankruptcy. If you are not familiar with any of your options then I will offer you a little information on them.

Bankruptcy

Before 2005 bankruptcy was to be used for consumers who were going through severe financial hardships. Sadly it was misused by far too many debtors who wanted to avoid paying their debts. They didn’t want to be accountable for their misgivings. The credit card industry was sick and tired of this so they pushed to have the legislation updated. It is now referred to as the Bankruptcy Abuse Prevention and Consumer Protection act of 2005. It would make it more difficult for many debtors to file for bankruptcy. Bankruptcy should only be exercised as your very last choice after you have explored every other debt relief method. Also you should contemplate the consequences that could come back later down the road. You would have to find a lawyer, go to court and that could run you a substantial amount of your hard earned income. There is also the problem of it being on your credit report for a long time. When you sign any important application or document you by law have to answer yes when inquired about your previous bankruptcy, so this does have a long lasting effect on your credit.

Consumer Credit Counseling

Everyway you turn, either it is advertised on the radio or television, you will hear about consumer credit counseling. A credit counseling firm will try to get the credit card companies to reduce the interest rate on your credit accounts. You then make one monthly payment to the credit counseling firm and they then make your payments to each one of your creditors for you. The down fall to this choice is even though they reduce your APR on your credit card accounts you very well may still pay back as much as 135% of what you currently owe.

This is because joining this kind of program you will still be paying back what the full original balance was plus some of the interest for around possibly five years or more. Almost seventy five percent of the individuals that are in these programs don’t graduate from the program for one reason or another. Another draw back to credit counseling is that if you have a income problem and are miss your monthly payment they will boot you out of the program straight away. They will also increase your interest back up and the creditors could keep you off the program for at least one year and on some occasions even longer. This might put you right back to where you began, if not in a worse predicament.

Credit Card Debt Negotiation (also known as debt settlement)

This is the option which can save you the largest amount of money. A competent debt settlement company will save you at least 40% of what you owe. The 40% should include all the fees as well. As with credit counseling, you will hear a lot of TV and radio ads all the time. These companies are opening up everywhere across the United States. Some of these companies try to make it appear like they have a magic stick and are going to make all your debt vanish out of nowhere.

There are also some companies that try to use religion to aquire the trust of people. No matter what company you choose it is your responsibility to do research on them. You should start with the BBB (Better Business bureau). You may be able to discover a lot about a company from them. If you find out that a company has only been in business for a little while and has a slew of complaints towards them, then you must avoid them. One more thing to keep an eye out for is how long has the company been in business. Some companies only make it a couple of years before they get shut down or get caught ripping people off. Then some of them only stick around to make as much money as they can and close down just to open up down the streetwith a different name] and will continue to do this until the FTC sues and jails them.

You need to feel comfortable with the person you are speaking with as well as the debt settlement company. If they are very pushy and trying to get you to sign a document within the first few minutes of the call you need to watch out. This is not a choice you want to jump into head first. Really, how can a company know they can help you out without going over your situation first? There are a lot of companies out there that only tell you all the good aspects about their program. They tell you not to worry about a thing. This is a very simple procedure and nothing bad can ever happen to you. That is a crock of you know what. It is not a very simple procedure and it is not right for every debtor. Some debtors still get duped by them because that company sugar coated everything and did not fully disclose everything. For a lot of people debt settlement can really get you back on your feet and out of debt in three years or less, while saving you thousands of dollars off your balance.

One more thing to think about is most of the companies earn all their fees within the first six months of the their program. Now consider this, what incentive will that company have to work out the best possible settlement on your behalf if they know that they are not going to earn any more money from you? There is none! So you see, if that company understands that why would they keep working on trying to get you a better settlement. This happens very frequently. They really don’t care at that point. They take anything your collectors’ offer, which means you pay more You need to seek out a company that makes its fees the old fashion way, by earning it. Make sure they answer all your debt settlement inquries. I hope this has given you a better understanding of the numerous options you have to becoming debt free. Thanks and have a good [night.

John Smith is a debt analyst with the USCA, which practices debt relief.

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June 10th, 2008

Applying for a Bankruptcy Credit Card

Posted in Bankruptcy, Credit, Financial, General by admin

Whether you just filed for bankruptcy or you just got out of bankruptcy, you need a place to start rebuilding your credit. There is hope for people who have bad credit and are in need of a bankruptcy credit card to reestablish their credit lines. You won’t be able to qualify for a car loan, house loan or boat loan until you rebuild your bad credit rating. Keep in mind, it might take awhile to get back on your feet, but it’s a must if you filed for chapter 11 or chapter 13 bankruptcy

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May 13th, 2008

Benefits of being out of debt

Posted in Credit, Debt, Financial, Uncategorized by admin

The depressing fact here in the United States is that most of our country is stuck in debt one way or another. The stats show that in the year 2007 the common family had $10,000 in bills owed to credit card companies The reason this circumstance is so depressing is because a large number of consumers in debt only make minimum payments. When you unite monthly minimum payments and extremely high interest you have a recipe for fiscal tradegy. This unforgiving financial position is referred to by many as being stuck on the credit card treadmill. When stuck in this position someone can foresee themselves being there for thirty years or more and pay out tens of thousands in interest before it’s all said and done. I would like to briefly review in the remainder of this writing on just a few of the benefits are to being debt free.

 The ability to save cash will be much simpler when not on the credit card debt treadmill. To save money is necessary to at some point in time realizing financial freedom. And being ensnared with overburdening amounts of credit card debt and only affording to pay the minimum amount owed each 30 days will greatly slow down your savings ability. So the first main benefit of becoming free of the burden of debt is the ability to save additional money.

The next benefit of becoming free from paying on debt obligations is interconnected to saving, and that is investing for the future. When you need to put out a great majority of your monthly income towards paying off credit card debts, than investing is merely a thought not an action.Investing your money and earning interest as a substitute for making payments on debts and losing your money because of paying high interest is the trick to becoming financially free. So as you can tell having monthly debt obligations will allow you to never invest for the future.

 Another great plus to being free of debt is having more money to spend wherever you please. Envision how much more pleasurable of a lifestyle you could live if all those funds going towards paying debts off you could keep? What would you do go to the movies more often or just simply have additional spending cash.

 As you can notice there are numerous benefits to living a debt free lifestyle. For debtors looking to become debt free there are options that can help. One especially popular procedure for debt relief is debt negotiation.Debt negotiation companies can help lower someone’s debt up to fifty percent of what they owed. Another alternative to running out of the debt jungle is credit counseling. Whichever route you take be sure to do something if you are stuck in credit card bills. Visualize what life would be like if you could do the things I mentioned above, saving money, investing money, or simply having additional spending cash.

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April 2nd, 2008

One bad thing about a chapter 13

Posted in Bankruptcy, Credit, Debt, Uncategorized by admin

Below is listed just one of the very negative aspects of filing for bankruptcy of any form. 

1. Bankruptcy has an extremely negative impact on your credit and becomes a lifetime public record!

A bankruptcy proceeding is one of the most extreme bad remarks that you could have put on your credit report. Thus making any more credit you attempt to get extremely hard, and if you do obtain credit it usually comes accompanied with a seriously elevated interest rate. Additionally, it will stay on your credit report for between 7-10 years. Even when it gets removed from your credit report it remains a public record for the duration of your existence. So whenever you try for new loans at any point in the future, if asked the question whether you have ever gone through a bankruptcy proceeding to avoid breaking the law you must answer yes.

 If possible it would be best to avoid bankruptcy, perhaps look to see if you qualify for a debt settlement program.

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March 18th, 2008

3 Debt Relief Methods

Posted in Credit, Debt, Financial, General, Uncategorized by admin

We here in U.S are on the edge of experiencing a major credit problem. The sum of unsecured debt has hit an all time high and we are approaching what may be a recession. Thus leaving a plethora American families with fewer dollars in there pockets and more bills to take care of. In this writing I will review the pros and cons of the diverse available methods of credit card debt relief.

Consumer Credit Counseling:

Pros- Monthly payments are consolidated into just one, lower APR, fixed payment not minimum payment.

Cons- Long term repayment, stringent program rules, low graduation rate, hard to obtain mortgage on program, payments are not very low, the creditors will kick you off the program if one payment is late or missed.

Bankruptcy:

Pros- Upon qualifying for Chapter 7 full amount of debt is discharged, avoid collection calls.

Cons- Long term negative effect on future credit, made a public record for the rest of the debtors life, change in bankruptcy law made Chapter 7 very hard to qualify for, court ordered repayment process.

 Debt Settlement :

Pros- Great savings on debt amount owed, by far quickest route of getting out of debt, not made a public record.

Cons- Short term negative effect on credit rating, collection calls, possibility of lawsuit.

 All of the above methods do have their respective pros and cons. However what really determines which system is proper for you really depend on the current monetary situation that you are in. For debtors stuck deep in debt but have money to pay a portion of it off then debt settlement would be best, to help avoid bankruptcy. Those who have smaller amounts of debt and have no problem making the monthly minimums plus more, than credit counseling is better. However there are some people out there who have literally no choice but to go into a bankruptcy proceeding.

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February 29th, 2008

Here is a very important thing when considering a nonprofit debt consolidation loan.

Posted in Banking, Business, Credit, Debt, Finance, General, Loans, Uncategorized by admin

One of the very important factor which you have to know is that nonprofit organizations will be speaking with your best interests in mind. If you decide to work with a for-profit company, the advisers may lean towards pointing you in the direction of a debt consolidation loan which can pay them more if their pay is based upon hitting certain incentives. A nonprofit debt consolidation loan is good in that sense because the company should be looking out for your best interests. For more information, ”Debt Consolidation” is a website where you acn find a lot of information regarding the same.

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January 31st, 2008

How can debt settlement help me?

Posted in Bankruptcy, Credit, Debt, Uncategorized by admin

Today more than ever people are getting swamped with credit card debt.  With the ruckus from the sub-prime mortgage industry and the addictive nature of credit cards many Americans are falling very deep into debt.  And many fall so deep that they feel the only way out is through bankruptcy.

On alternative to bankruptcy is debt settlement.  With debt settlement you can expect to become debt free within 2-3 years.  And if using a reputable company or law firm to assist you in settling can save anywhere from 40-50% of you overall debt balance.

 Why would anyone want to go this route of debt relief.  Simple the savings of money and time.  Settlement is the fastest way to get out of debt and save money without filing for bankrupcty.  Which is not a very pleasant process to say the least.

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January 23rd, 2008

Merchant Services Deal Must Have Flexibility

Posted in Credit, Misc, Uncategorized by admin

Contracts are a good thing in business, as they offer a measure of protection for both parties. However, sometimes a contract can be expensively restrictive if it doesn’t have some flexibility built in. If you’re a business that is considering adding merchant services accounts you want to make sure that the agreement that works for your business today will work a year from now when business has, hopefully, improved. Because studies have shown that if you accept credit cards it is likely to drive additional business your way. So if you services contract isn’t ready to grow with you, you could see a big chunk of your profits ends up in someone else’s pocket.

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January 16th, 2008

BEST AVAILABLE LOAN

Posted in Banking, Credit, Financial, Uncategorized by admin

You can be sure to have the great time of your life in your holiday but finance may be your limitation. By acquiring the best available loan you can arrange additional finance to your budget with which you can experience your holiday as per your wants. The borrowed finance would not be an extra load upon your budget since the loan shall be the best suitable one.

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December 7th, 2007

Repair Bad Credit with an Auto Loan

Posted in Credit, Debt, General, Loans, Uncategorized by admin

It’s difficult to repair bad credit. Most people looking for a bad credit auto loan have limited choices as to the type of vehicle they can purchase. Although you can purchase a car or truck, you’ll want to make sure that you can afford your payements. Car loans for people with bad credit often have higher interest rates and longer contract terms. Make sure you compare lenders when looking at car or truck loan lenders.

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October 26th, 2007

Bad Credit & Second Chance Checking Accounts

Posted in Banking, Bankruptcy, Credit, Finance, Uncategorized by admin

If you have terrible credit and need an alternative to traditional checking and business banking accounts, it’s recommended that you sign up for a second chance checking account. Although not everybody has a need for another checking account, many banks will not approve individuals or businesses that have bad credit or have defaulted with previous accounts. Since many banks utilize Chex Systems for managing their clients accounts, if you have been in default, most banks will not approve you. Your best option would be a second chance checking account. All of these second chance bank account options are FDIC insured and there are no credit checks. You don’t have to be scared of not being accepted since all applications are approved each and every time. Best of all, your non Chex Systems bank account will provide you with a routing number, account number and master card within a matter of days. By filing out a free application for your bank account, you’ll receive your package shortly.

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October 25th, 2007

Mortgage NI

Posted in Credit, Financial, Lending, Real Estate by admin

Mortgages in Northern Ireland come under the FSA which governs mortgage related business in the UK. There are advantages to borrowers in NI however as although they have access to all the mainstream lenders they also have several local Building societies which concentrate their lending business in Northern Ireland only. Whether its a buy to let, first time buyer, self build, homemover or investment mortgage there is plenty of choice and advice available. A mortgage NI style is competitive, accessible and simple to arrange with many advisors, brokers, building societies and banks ready and willing to offer their mortgage products. This is a good thing as Northern Ireland is something of a boom area and property prices are rising, therefore its important that consumers obtain the best possible rate.

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October 18th, 2007

Saving Your Credit from Thieves

Posted in Credit, Helpful Information by admin

If you’re like me, you probably are concerned about the growing problem of identity theft in our country. Each day, millions of people become victims of identity theft where thieves steal their identity and open up credit accounts, get loans, buy houses and a lot more using the victim’s credit.

One service that helps prevent this type of crime in your life is Lifelock. They put a lock on your credit so that any new credit applications have to be manually approved by you or them. This prevents thieves from hijacking your good credit.

There are other services that do this too, but Lifelock appears to be the industry leader. Check them out.

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July 27th, 2007

Buying a New Home When Your Old Home Won’t Sell

Posted in Credit, Debt, Finance, Lending, Loans, Uncategorized by admin

If you’re under contract to buy a new home and for some reason your existing home just will not sell quickly, you may be looking for options to go ahead and get the financing done and just wait for the old house to sell after you have already moved to the new house.

One popular option in this circumstance is the short term home bridge loan. This type of loan allows you to use equity in your existing home to fund the downpayment on a new home.

Although there are certainly cheaper options, the bridge loan may be a good choice for you if your back is against the wall. Either opt out of the contract for the new home or consider bridge financing.

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