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Behavioral economist Meir Statman, recently said “getting out of debt is the financial equivalent of trying to quit smoking." Just like any bad habit, good intentions alone will not be enough. To ensure success, we need to break our underlying patterns of behavior. How is it we live in the richest most powerful country in the world, but the average American is more than $11,000 in debt. Our European friends who live by a mainly debit card system have an average savings of $13,000. On a recent visit to Germany, I was shocked to find that less than 35% of all the shops and restaurants accepted credit cards. What would we need to do to reverse this trend and get into a (plus) situation.
Plastic Surgery
If we are serious about paying off our balances. We don't have to literally cut up our credit cards, just stop using them routinely. We should go green for our everyday spending. Try carrying around a set amount of cash to use each week. We make better purchasing decisions when we actually have to hand over the green stuff plus there's a preset spending limit. When we run out of money, we stop spending it's that simple. When the only way to purchase is plastic, buying online for instance, then use your debit card. Your debit card can also be used as an emergency substitute for cash should you run out.
Leave Those Cards At Home
The best way to ensure that you enforce the cooling off period on new credit purchases is by taking the cards out of your wallet. You should store them in a place that's not easily accessible and safe. Do not let others know where you have hidden them.
Close The Accounts No Longer Needed
Having unused credit available from lenders with whom you've had a long relationship will help boost your credit score. Having too many will harm your credit score. As a rule, 3 credit cards is what works best and try to never spend more than 50% of the available credit on any of the cards. This will keep your score at it's highest. You should also consider closing all your store cards, if you need to make a purchase then use your credit card and pay it off at the end of the month.
Lowering Your Interest Rates
Start by reducing what you pay in interest. We can start by calling our current credit card companies and explaining that we intend to transfer our balance to another issuer unless our interest rate is lowered. Almost all credit card companies run promotional programs with low or 0% interest. They will be willing to put you on one of those rather than risk losing your business. All you need to do is ASK.
Tackling Those Credit Card Balances
Finally we need to develop a strategy for paying off our existing credit card balances.
Gather all your credit card statements together and make a simple table listing the entire amount you owe, and the minimum payment and interest rate for each card. This will help us determine the order in which we should pay off our cards. We need to focus on the highest interest rate cards first and pay off as much as you can each month while making only the minimum payments on our other cards. When the first card is paid off, use the same strategy on the next-highest interest rate card and so on until you're debt-free.
Late Payments
Are the number one cardinal sin of debt management. You get hit with hefty late fees and very high penalty rates that can go to 30%, plus of course your credit score will take a big hit.
We all have a responsibility to improve our financial literacy and develop the required skills and practices for effective financial management. There is a real need to get away from the “Someday things will get better in my life” or the “Someday I will be able to earn enough money to stop worrying about the bills. There is a lot more to life than that, but it has to be said and understood that the only person that can change your life is YOU. There is NO substitute for Action! With Action, you will overcome your fears and hesitations and accomplish everything you set out to do and more.
Have an opinion or a question you would like me to answer, then write me! http://www.CarlHampton.com
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Showing posts with label Debt. Show all posts
Showing posts with label Debt. Show all posts
File Under :
Debt
The World is in debt. Almost all people and organizations are carrying debt to survive, including the Governments of all of our Nations. This is just a fact of life and this is the way that we were raised. You must acquire debt to survive; there is no other way.
This is entirely not true. In fact if we chose to save for the things that we really want, we would be able to afford a lot more than we already have.
Just think about it for a minute. Without debt, we would only have to pay our “bills”. Rent or Mortgage (Debt, but necessary), Utilities and Insurance. Imagine all of the money that you would have at the end of the month. No credit card payments, no car payment, no personal loans. Now you can afford some of the luxuries that you used to pay for month after month on credit and it won’t cost you three times the cost of the purchase as with credit.
Okay, this sounds great in theory, but it is a little late. Boy, if only you had told me this when I was 18 (like I would really have listened). I am in debt up to eyeballs and there is no way out. This is the way that it is supposed to be. This is the only way that it can be.
Rubbish!
This is the exact reason that everyone stays in debt and why the credit card companies are making fortunes. You can get yourself out of debt and take back control of your life. Of course it will take desire, will power, and perseverance. Most importantly you have to take the first step.
The key to getting out of debt is really quite simple; organization.
You cannot help yourself get out of any situation without first realizing what exactly you are into. This indeed is the first step.
Most people go on day-to-day paying their bills as if it is just a part of life. They get the bill, pay the minimum or a little over and wait for the next one. This is a vicious cycle and it has no end. As long as you keep doing this, is as long as you will stay in debt and stay at the mercy of your creditors.
You first need to gather all of your most recent statements. Write down or input (I use Excel for this) all of your creditors. At this point I would even put in your mortgage holder to give you the whole picture. Find out your current balance for each and input that. Now input your minimum payment for each one. At this point I would not even worry about interest rates.
You now have the whole picture. Sorry, I didn’t mean to scare you. Now you know what you are up against and you can make a plan. Just remember, try not to take on additional debt.
You are now ready to take control of you financial life. Say goodbye to debt, say hello to life!
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This is entirely not true. In fact if we chose to save for the things that we really want, we would be able to afford a lot more than we already have.
Just think about it for a minute. Without debt, we would only have to pay our “bills”. Rent or Mortgage (Debt, but necessary), Utilities and Insurance. Imagine all of the money that you would have at the end of the month. No credit card payments, no car payment, no personal loans. Now you can afford some of the luxuries that you used to pay for month after month on credit and it won’t cost you three times the cost of the purchase as with credit.
Okay, this sounds great in theory, but it is a little late. Boy, if only you had told me this when I was 18 (like I would really have listened). I am in debt up to eyeballs and there is no way out. This is the way that it is supposed to be. This is the only way that it can be.
Rubbish!
This is the exact reason that everyone stays in debt and why the credit card companies are making fortunes. You can get yourself out of debt and take back control of your life. Of course it will take desire, will power, and perseverance. Most importantly you have to take the first step.
The key to getting out of debt is really quite simple; organization.
You cannot help yourself get out of any situation without first realizing what exactly you are into. This indeed is the first step.
Most people go on day-to-day paying their bills as if it is just a part of life. They get the bill, pay the minimum or a little over and wait for the next one. This is a vicious cycle and it has no end. As long as you keep doing this, is as long as you will stay in debt and stay at the mercy of your creditors.
You first need to gather all of your most recent statements. Write down or input (I use Excel for this) all of your creditors. At this point I would even put in your mortgage holder to give you the whole picture. Find out your current balance for each and input that. Now input your minimum payment for each one. At this point I would not even worry about interest rates.
You now have the whole picture. Sorry, I didn’t mean to scare you. Now you know what you are up against and you can make a plan. Just remember, try not to take on additional debt.
You are now ready to take control of you financial life. Say goodbye to debt, say hello to life!
Read More..
File Under :
Debt
Consumer debt is at an all-time high. What's more, a record number of consumers, more than 1.5 million in 2004, are filing for bankruptcy. Whether your debt dilemma is the result of an illness, unemployment, or overspending, it can seem
overwhelming. In your effort to get solvent, be on the alert for advertisements that offer seemingly quick fixes. And read between the lines when faced with ads in newspapers, magazines, or even telephone directories that say:
"Consolidate your bills into one monthly payment without borrowing"
"STOP credit harassment, foreclosures, repossessions, tax levies and garnishments"
"Keep Your Property"
"Wipe out your debts! Consolidate your bills! How?
By using the protection and assistance provided by federal law. For once, let the law work for you!"
While the ads pitch the promise of debt relief, they rarely say relief may be spelled b-a-n-k-r-u-p-t-c-y. And although bankruptcy is one option to deal with financial problems, it's generally considered the option of last resort. The reason: it has a long-term negative impact on your creditworthiness. A bankruptcy stays on your credit report for 10 years, and can hinder your ability to get credit, a job, insurance, or even a place to live. What's more, it can cost you attorneys' fees.
Advance-Fee Loan Scams
These scams often target consumers with bad credit problems or those with no credit. In exchange for an up-front fee, these companies "guarantee" that applicants will get the credit they want — usually a credit card or a personal loan.
The up-front fee may be as high as several hundred dollars. Resist the temptation to follow up on advance-fee loan guarantees. They may be illegal. Many legitimate creditors offer extensions of credit, such as credit cards, loans, and mortgages through telemarketing, and require an application fee or appraisal fee in advance. But legitimate creditors never guarantee in advance that you'll get the loan. Under the federal Telemarketing Sales Rule, a seller or telemarketer who guarantees or represents a high likelihood of your getting a loan or some other extension of credit may not ask for or receive payment until you've received the loan.
Recognizing an Advance-Fee Loan Scam
Ads for advance-fee loans often appear in the classified ad section of local and national newspapers and magazines. They also may appear in mailings, radio spots, and on local cable stations. Often, these ads feature "900" numbers, which result in charges on your phone bill. In addition, these companies often use delivery systems other than the U.S. Postal Service, such as overnight or courier services, to avoid detection and prosecution by postal authorities.
It's not hard to confuse a legitimate credit offer with an advance-fee loan scam. An offer for credit from a bank, savings and loan, or mortgage broker generally requires your verbal or written acceptance of the loan or credit offer. The offer usually is subject to a check of your credit report after you apply to make sure you meet their credit standards. Usually, you are not required to pay a fee to get the credit.
Hang up on anyone who calls you on the phone and says they can guarantee you will get a loan if you pay in advance. It's against the law.
Protect Yourself
Here are some tips to keep in mind before you respond to ads that promise easy credit, regardless of your credit history:
* Most legitimate lenders will not "guarantee" that you will get a loan or a credit card before you apply, especially if you have bad credit, or a bankruptcy.
* It is an accepted and common practice for reputable lenders to require payment for a credit report or appraisal. You also may have to pay a processing or application fee.
* Never give your credit card account number, bank account information, or Social Security number out over the telephone unless you are familiar with the company and know why the information is necessary.
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overwhelming. In your effort to get solvent, be on the alert for advertisements that offer seemingly quick fixes. And read between the lines when faced with ads in newspapers, magazines, or even telephone directories that say:
"Consolidate your bills into one monthly payment without borrowing"
"STOP credit harassment, foreclosures, repossessions, tax levies and garnishments"
"Keep Your Property"
"Wipe out your debts! Consolidate your bills! How?
By using the protection and assistance provided by federal law. For once, let the law work for you!"
While the ads pitch the promise of debt relief, they rarely say relief may be spelled b-a-n-k-r-u-p-t-c-y. And although bankruptcy is one option to deal with financial problems, it's generally considered the option of last resort. The reason: it has a long-term negative impact on your creditworthiness. A bankruptcy stays on your credit report for 10 years, and can hinder your ability to get credit, a job, insurance, or even a place to live. What's more, it can cost you attorneys' fees.
Advance-Fee Loan Scams
These scams often target consumers with bad credit problems or those with no credit. In exchange for an up-front fee, these companies "guarantee" that applicants will get the credit they want — usually a credit card or a personal loan.
The up-front fee may be as high as several hundred dollars. Resist the temptation to follow up on advance-fee loan guarantees. They may be illegal. Many legitimate creditors offer extensions of credit, such as credit cards, loans, and mortgages through telemarketing, and require an application fee or appraisal fee in advance. But legitimate creditors never guarantee in advance that you'll get the loan. Under the federal Telemarketing Sales Rule, a seller or telemarketer who guarantees or represents a high likelihood of your getting a loan or some other extension of credit may not ask for or receive payment until you've received the loan.
Recognizing an Advance-Fee Loan Scam
Ads for advance-fee loans often appear in the classified ad section of local and national newspapers and magazines. They also may appear in mailings, radio spots, and on local cable stations. Often, these ads feature "900" numbers, which result in charges on your phone bill. In addition, these companies often use delivery systems other than the U.S. Postal Service, such as overnight or courier services, to avoid detection and prosecution by postal authorities.
It's not hard to confuse a legitimate credit offer with an advance-fee loan scam. An offer for credit from a bank, savings and loan, or mortgage broker generally requires your verbal or written acceptance of the loan or credit offer. The offer usually is subject to a check of your credit report after you apply to make sure you meet their credit standards. Usually, you are not required to pay a fee to get the credit.
Hang up on anyone who calls you on the phone and says they can guarantee you will get a loan if you pay in advance. It's against the law.
Protect Yourself
Here are some tips to keep in mind before you respond to ads that promise easy credit, regardless of your credit history:
* Most legitimate lenders will not "guarantee" that you will get a loan or a credit card before you apply, especially if you have bad credit, or a bankruptcy.
* It is an accepted and common practice for reputable lenders to require payment for a credit report or appraisal. You also may have to pay a processing or application fee.
* Never give your credit card account number, bank account information, or Social Security number out over the telephone unless you are familiar with the company and know why the information is necessary.
Read More..
File Under :
Debt
Most people are involved in some type of financial transaction or decision every day. Sometimes they can get way behind in their debts and financial obligations with no clear way to pay them off. Some resort to debt management plans, which can help if you are careful in setting up the plan. Do you know how to avoid the pitfalls?
Credit and debt issues are critical life altering realities for almost everyone. The daily decisions we make in handling the balance between the two determines our credit worthiness in the eyes of financial institutions. As we all know, if you have a bad credit rating, then borrowing funds or purchasing many items will become difficult or impossible. But what happens when you get so far in debt that you have no clear way to pay it all off? Many people resort to a debt management plan (DMP). These are payment plans structured in a way so that the borrower is better able to pay off their debts, and is agreed to by the borrower and creditors. The benefits can include lower interest rates and fee waivers.
Once you and the creditors have accepted the DMP, it is important to:
• make regular and timely payments
• always read your monthly statements to make sure your creditors are getting paid according to your plan
• contact the organization responsible for your DMP if you will be unable to make a scheduled payment, or if you discover that creditors are not being paid
If the payments are not made to your DMP and creditors on time, you could lose the progress you've made on paying down your debt, or the benefits of being in a DMP, including lower interest rates and fee waivers. The creditors may not forgive any more late payments and you will incur more 'late' marks on your credit report as well as more late fees, increased debt and a longer pay off period. So, once you are on a debt management plan, make sure that you are never late on any payments.
DMPs are not for everyone. You should agree on a DMP only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you specific advice on managing your money. You may be able to work out a payment plan directly with your creditors. But if you decide that you need to work with a credit counselor and get additional advice and assistance, ask questions like these to help you find the best counselor for your situation and make sure you get full and complete anwsers.
Some Important Questions to Ask When Choosing a Credit Counselor to Handle your DMP:
1. What services do you offer? Look for an organization that offers a range of services, including budget counseling, savings and debt management classes, and counselors who are trained and certified in consumer credit, money and debt management, and budgeting. Counselors should discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems now and avoid others in the future.
2. Are you licensed to offer your services in my state? Many states require that an organization register or obtain a license before offering credit counseling and debt management plans.
3. Do you offer free information?
4. Will I have a formal written agreement or contract with you?
5. What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, which one? If not, how are they trained? Try to use an organization whose counselors are trained by an outside organization that is not affiliated with creditors.
6. Have other consumers been satisfied with the service that they received? Once you've identified credit counseling organizations that suit your needs, check them out with your local consumer protection agency, and Better Business Bureau.
7. What are your fees? Are there set-up and/or monthly fees? Get a detailed price quote in writing, and specifically ask whether all the fees are covered in the quote.
8. How are your employees paid? Ask them to disclose what compensation it receives from creditors, and how they are compensated.
9. What do you do to keep my personal information confidential and secure? They should have safeguards in place to protect your privacy.
Get the information you need to make an informed decision.
Read More..
Credit and debt issues are critical life altering realities for almost everyone. The daily decisions we make in handling the balance between the two determines our credit worthiness in the eyes of financial institutions. As we all know, if you have a bad credit rating, then borrowing funds or purchasing many items will become difficult or impossible. But what happens when you get so far in debt that you have no clear way to pay it all off? Many people resort to a debt management plan (DMP). These are payment plans structured in a way so that the borrower is better able to pay off their debts, and is agreed to by the borrower and creditors. The benefits can include lower interest rates and fee waivers.
Once you and the creditors have accepted the DMP, it is important to:
• make regular and timely payments
• always read your monthly statements to make sure your creditors are getting paid according to your plan
• contact the organization responsible for your DMP if you will be unable to make a scheduled payment, or if you discover that creditors are not being paid
If the payments are not made to your DMP and creditors on time, you could lose the progress you've made on paying down your debt, or the benefits of being in a DMP, including lower interest rates and fee waivers. The creditors may not forgive any more late payments and you will incur more 'late' marks on your credit report as well as more late fees, increased debt and a longer pay off period. So, once you are on a debt management plan, make sure that you are never late on any payments.
DMPs are not for everyone. You should agree on a DMP only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you specific advice on managing your money. You may be able to work out a payment plan directly with your creditors. But if you decide that you need to work with a credit counselor and get additional advice and assistance, ask questions like these to help you find the best counselor for your situation and make sure you get full and complete anwsers.
Some Important Questions to Ask When Choosing a Credit Counselor to Handle your DMP:
1. What services do you offer? Look for an organization that offers a range of services, including budget counseling, savings and debt management classes, and counselors who are trained and certified in consumer credit, money and debt management, and budgeting. Counselors should discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems now and avoid others in the future.
2. Are you licensed to offer your services in my state? Many states require that an organization register or obtain a license before offering credit counseling and debt management plans.
3. Do you offer free information?
4. Will I have a formal written agreement or contract with you?
5. What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, which one? If not, how are they trained? Try to use an organization whose counselors are trained by an outside organization that is not affiliated with creditors.
6. Have other consumers been satisfied with the service that they received? Once you've identified credit counseling organizations that suit your needs, check them out with your local consumer protection agency, and Better Business Bureau.
7. What are your fees? Are there set-up and/or monthly fees? Get a detailed price quote in writing, and specifically ask whether all the fees are covered in the quote.
8. How are your employees paid? Ask them to disclose what compensation it receives from creditors, and how they are compensated.
9. What do you do to keep my personal information confidential and secure? They should have safeguards in place to protect your privacy.
Get the information you need to make an informed decision.
Read More..
File Under :
Debt
Debt is a four-letter word that puts us on parole for the rest of our lives. The cost of living alone is so demanding that debt mounts, mounts, mounts, and breaks us with each heaping rise. We have to pay folding money, pay for apparel, food, gasoline, Uncle Sam fees, rent, installment credit, car payments, institution, etc, that sometimes it is next to impossible not to find yourself humming this four-letter word.
The most highly way to solve arrears is to sit down and find preparations. Breaking down problems is the first step you will occasion to take to find a way out of debt. Once you start to see you have cafeteria plan, you can find it rest easier to cope with your stress and damages. If you cannot find new ideas to help you find ways out of debt, visit your local information science and search for debt solutions and controllers that walk you through take part in permission out of debt.
Exercise many resources can help you to pull up new ideas that lead to solving problems. Rather than compliant messes weigh you down, take action now and find solutions that will reduce your tension and your debts.
If you have access to the Data highway, search the engines to find relevant links that teacher you into debt relief. Stay away from companies that offer to get you out of arrears for a high monthly fee. The concept of getting out of debt is to relieve positive self-image of extra burden, such as a new bill. For the most part, you can call your creditors and make pay-off form. The creditors are often glad to hear from you. Rather than have the scavenger hunt from wretchedness hunt you down, the creditors you could rather keep you as a friend, since they want you to pay your debt and incur future debt with their assembly.
You go through points of no return to finding your way out of debt, so takes some time to learn elimination procedures to become debt free. Debt elimination is not an option, since when you get rid of one debt another exert follow the same patterns of the human mind. You get the point. The solution is getting out of the past claims you owe, set a budget and avoid spending more than you can afford. Pay off one debt at a time, amid by installments you find relief.
To avoid incurring new debt, stay away from credit bet. Use your credit cards to pay demanding bills culmination your credit card as soon as possible to pause, high interest rates. Stay reject from payday lends also, unless you see that you can avoid better part of the levies and can payoff the loan right away. Keep in mind however, that payday lenders often attach a steep fee.
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The most highly way to solve arrears is to sit down and find preparations. Breaking down problems is the first step you will occasion to take to find a way out of debt. Once you start to see you have cafeteria plan, you can find it rest easier to cope with your stress and damages. If you cannot find new ideas to help you find ways out of debt, visit your local information science and search for debt solutions and controllers that walk you through take part in permission out of debt.
Exercise many resources can help you to pull up new ideas that lead to solving problems. Rather than compliant messes weigh you down, take action now and find solutions that will reduce your tension and your debts.
If you have access to the Data highway, search the engines to find relevant links that teacher you into debt relief. Stay away from companies that offer to get you out of arrears for a high monthly fee. The concept of getting out of debt is to relieve positive self-image of extra burden, such as a new bill. For the most part, you can call your creditors and make pay-off form. The creditors are often glad to hear from you. Rather than have the scavenger hunt from wretchedness hunt you down, the creditors you could rather keep you as a friend, since they want you to pay your debt and incur future debt with their assembly.
You go through points of no return to finding your way out of debt, so takes some time to learn elimination procedures to become debt free. Debt elimination is not an option, since when you get rid of one debt another exert follow the same patterns of the human mind. You get the point. The solution is getting out of the past claims you owe, set a budget and avoid spending more than you can afford. Pay off one debt at a time, amid by installments you find relief.
To avoid incurring new debt, stay away from credit bet. Use your credit cards to pay demanding bills culmination your credit card as soon as possible to pause, high interest rates. Stay reject from payday lends also, unless you see that you can avoid better part of the levies and can payoff the loan right away. Keep in mind however, that payday lenders often attach a steep fee.
Read More..
File Under :
banks,
credit card,
Debt,
finance,
financial advice,
investment,
loans,
money,
saving,
wealth
Choosing to eliminate your consumer debt is the best financial decision you can make. Having excessive debt is the cause for much worry and stress. In order to free themselves from this huge burden, many consumers acquire debt consolidation loans. Unfortunately, getting a loan to consolidate debt requires a good credit rating, homeownership, or collateral. If you do not meet the criteria for obtaining a loan, online debt management services may be the way out
Choosing to eliminate your consumer debt is the best financial decision you can make. Having excessive debt is the cause for much worry and stress. In order to free themselves from this huge burden, many consumers acquire debt consolidation loans. Unfortunately, getting a loan to consolidate debt requires a good credit rating, homeownership, or collateral. If you do not meet the criteria for obtaining a loan, online debt management services may be the way out.
What are Debt Management Services?
Debt management services are agencies that assist consumers in their endeavor to become debt free. There are two types of debt management services. These include agencies that charge a monthly fee for their services, and non-profit agencies. To avoid scams and fraudulent companies, it may be wise to select a non-profit agency.
The main goal of debt management services is to reduce your debts and put you on the path toward becoming debt free. To accomplish this goal, a representative from the agency will request information about your creditors and debt amounts. Once you submit this information, the representative assigned to your account will contact each creditor. Through negotiating, the agency will be able to get late fees waived and interest rates reduced.
After the debt management service and your creditors reach an agreement, the agency will lump all your debt into a single loan. Your existing credit accounts will be temporary frozen; thus, you are unable to acquire additional debt. If you decide to no longer use the debt management service, your accounts are unfrozen. Each month, payment is sent to the debt management agency, and not your existing creditors.
How to Choose an Online Debt Management Service?
Research and compare services before selecting a debt management agency. The internet is a valuable resource for finding information on various programs. Each program is different. Some programs require a minimum or maximum debt amount. Furthermore, other programs solely work with individuals who have several missed or late payments.
When comparing different debt management services, request quotes that include detail information pertaining to estimated payoff dates and monthly payments.
Read More..
Choosing to eliminate your consumer debt is the best financial decision you can make. Having excessive debt is the cause for much worry and stress. In order to free themselves from this huge burden, many consumers acquire debt consolidation loans. Unfortunately, getting a loan to consolidate debt requires a good credit rating, homeownership, or collateral. If you do not meet the criteria for obtaining a loan, online debt management services may be the way out.
What are Debt Management Services?
Debt management services are agencies that assist consumers in their endeavor to become debt free. There are two types of debt management services. These include agencies that charge a monthly fee for their services, and non-profit agencies. To avoid scams and fraudulent companies, it may be wise to select a non-profit agency.
The main goal of debt management services is to reduce your debts and put you on the path toward becoming debt free. To accomplish this goal, a representative from the agency will request information about your creditors and debt amounts. Once you submit this information, the representative assigned to your account will contact each creditor. Through negotiating, the agency will be able to get late fees waived and interest rates reduced.
After the debt management service and your creditors reach an agreement, the agency will lump all your debt into a single loan. Your existing credit accounts will be temporary frozen; thus, you are unable to acquire additional debt. If you decide to no longer use the debt management service, your accounts are unfrozen. Each month, payment is sent to the debt management agency, and not your existing creditors.
How to Choose an Online Debt Management Service?
Research and compare services before selecting a debt management agency. The internet is a valuable resource for finding information on various programs. Each program is different. Some programs require a minimum or maximum debt amount. Furthermore, other programs solely work with individuals who have several missed or late payments.
When comparing different debt management services, request quotes that include detail information pertaining to estimated payoff dates and monthly payments.
Read More..
File Under :
banks,
credit card,
Debt,
finance,
financial advice,
investment,
loans,
money,
saving,
wealth
In the last section we covered your rights against harassment and abuse by collectors. We also covered some options that your creditor may have to help you resolve your delinquent debt. Again I repeat that this is not legal advice but a guideline of your rights and options.
Before we begin I would like to share a little info about myself. I was a collector for about 10 years until health problems forced me to leave the profession in 2003. I was really proficient and often resolved account no one else could. My supervisors would sometimes have poor performers sit next to me and the next month they would be getting bonus money. With that experience I may have some insight to share.
If your account is in collections and you simply can’t catch them up you still have options. We will explore all of them.
1) Check with your creditor to see what programs they may have to assist.
2) Pay the furthest past due payment each month.-This doesn’t catch you up ever but it keeps the situation from getting worse
3) Consumer Credit Counseling--- there are many different organizations that do this. Some of them are businesses, some are not for profit. Check with the United Way. You simply pay them a set amount each month and they disperse it to your creditors. Most creditors will give special benefits to someone on this program. Typically they will bring the account current after 3 consecutive payments. (Similar to the cure program discussed in previous chapter) Since your account is current then, there are no late fees assessed. Additionally and perhaps even more beneficial is that most will reduce interest. Typically they drop the interest rate, usually to 6%-9%. Your creditors policy may be different. Your creditor will probably close your account for future charges with this option. In some case this option may save your creditor from being ruined by late payments.
4) Bankruptcy—This is also an option. Individual bankruptcy can be either 1 of 2 chapters.
7 is a straight liquidation. In other words, all of your unsecured debt is wiped out if the court approves your bankruptcy. You still must pay for your secured debts if you wish to keep them. The court MAY force you to sell some of your assets. But just because you file Chapter 7 doesn’t mean you will lose your home or car. If you are at this point I strongly advise you to consult an attorney on what filing would mean to you.
Chapter 13 is similar except that your delinquent payments are paid over a period of 3 to 5 years in addition to your current payments. You may have to pay all, none or a small percentage of your unsecured debt over the term of the plan. Again if you feel this is an option then consult an attorney. If you decide this is the option for you then be aware of these facts. Once you notify your creditor that you have retained an attorney for bankruptcy and give them the attorneys name and a way to contact them, the creditor MUST stop all collection activity for “ a reasonable time”. Once the case has been filed they must stop all collection activity against you.
FAQ Q I mentioned to the collectors that I may file bankruptcy. They said not to because my credit will be ruined for 10 years. Is this true. A. First lets look at who told you that. A collector. His/her job is to get you to pay the debt. He may or may not get a bonus off getting you to pay. What is true is that it will report on your credit bureau for up to 10 years. Maybe even less. Will you ever be able to get credit again? Most likely. It depends on many factors. What is true that it may be more difficult to get credit but not impossible. You may also pay a higher interest rate than you would if you had never went past due.
I personally had to file a chapter 7 in 1996 after my son was in accident with medical bills over ½ million dollars. 30 days after the case was finalized I was able to get financed on a 1-year-old truck with no money down. 18 months later I had credit cards and had purchased a house and got it financed.
There are lenders whom will finance you but they charge higher interest rates This is called “sub-prime lending” Just because you are behind on your bills and cant catch up the past due payments doesn’t always mean you should file bankruptcy.
Communicate with your creditor first and see what options are available, look into credit counseling to see if they can help. New laws coming into effect may make that a requirement before bankruptcy can be filed.
Q I got 4 months behind on my bills when I lost my job. I got caught up but my creditor will not fix my credit. What can I do to make them remove the bad mark against me. An If you where 4 months past due and they are reporting that, they are following the law. If a creditor reports they must report accurately This quote is from the Fair Credit Reporting Act “Reporting information with actual knowledge of errors. A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or consciously avoids knowing that the information is inaccurate. “ In other words, they can’t report that you weren’t past due if you where and vice versa. The only way they can change a report is if it was due to the fault of the creditor. (i.e. payments posted to wrong account)
However you can place a statement into your credit file that explains any derogatory info. (i.e I was behind because of unemployment) As long as that negative information is on file that statement must accompany it. It is up to the person with whom you applied to for credit who makes the decision of if you are granted credit or not. The credit bureaus do not determine if you get credit. They simply relay your score which is based a many factors such as payment history, recent inquiries, % of total credit available to you that you have used, and income to debt ratio.
Read More..
Before we begin I would like to share a little info about myself. I was a collector for about 10 years until health problems forced me to leave the profession in 2003. I was really proficient and often resolved account no one else could. My supervisors would sometimes have poor performers sit next to me and the next month they would be getting bonus money. With that experience I may have some insight to share.
If your account is in collections and you simply can’t catch them up you still have options. We will explore all of them.
1) Check with your creditor to see what programs they may have to assist.
2) Pay the furthest past due payment each month.-This doesn’t catch you up ever but it keeps the situation from getting worse
3) Consumer Credit Counseling--- there are many different organizations that do this. Some of them are businesses, some are not for profit. Check with the United Way. You simply pay them a set amount each month and they disperse it to your creditors. Most creditors will give special benefits to someone on this program. Typically they will bring the account current after 3 consecutive payments. (Similar to the cure program discussed in previous chapter) Since your account is current then, there are no late fees assessed. Additionally and perhaps even more beneficial is that most will reduce interest. Typically they drop the interest rate, usually to 6%-9%. Your creditors policy may be different. Your creditor will probably close your account for future charges with this option. In some case this option may save your creditor from being ruined by late payments.
4) Bankruptcy—This is also an option. Individual bankruptcy can be either 1 of 2 chapters.
7 is a straight liquidation. In other words, all of your unsecured debt is wiped out if the court approves your bankruptcy. You still must pay for your secured debts if you wish to keep them. The court MAY force you to sell some of your assets. But just because you file Chapter 7 doesn’t mean you will lose your home or car. If you are at this point I strongly advise you to consult an attorney on what filing would mean to you.
Chapter 13 is similar except that your delinquent payments are paid over a period of 3 to 5 years in addition to your current payments. You may have to pay all, none or a small percentage of your unsecured debt over the term of the plan. Again if you feel this is an option then consult an attorney. If you decide this is the option for you then be aware of these facts. Once you notify your creditor that you have retained an attorney for bankruptcy and give them the attorneys name and a way to contact them, the creditor MUST stop all collection activity for “ a reasonable time”. Once the case has been filed they must stop all collection activity against you.
FAQ Q I mentioned to the collectors that I may file bankruptcy. They said not to because my credit will be ruined for 10 years. Is this true. A. First lets look at who told you that. A collector. His/her job is to get you to pay the debt. He may or may not get a bonus off getting you to pay. What is true is that it will report on your credit bureau for up to 10 years. Maybe even less. Will you ever be able to get credit again? Most likely. It depends on many factors. What is true that it may be more difficult to get credit but not impossible. You may also pay a higher interest rate than you would if you had never went past due.
I personally had to file a chapter 7 in 1996 after my son was in accident with medical bills over ½ million dollars. 30 days after the case was finalized I was able to get financed on a 1-year-old truck with no money down. 18 months later I had credit cards and had purchased a house and got it financed.
There are lenders whom will finance you but they charge higher interest rates This is called “sub-prime lending” Just because you are behind on your bills and cant catch up the past due payments doesn’t always mean you should file bankruptcy.
Communicate with your creditor first and see what options are available, look into credit counseling to see if they can help. New laws coming into effect may make that a requirement before bankruptcy can be filed.
Q I got 4 months behind on my bills when I lost my job. I got caught up but my creditor will not fix my credit. What can I do to make them remove the bad mark against me. An If you where 4 months past due and they are reporting that, they are following the law. If a creditor reports they must report accurately This quote is from the Fair Credit Reporting Act “Reporting information with actual knowledge of errors. A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or consciously avoids knowing that the information is inaccurate. “ In other words, they can’t report that you weren’t past due if you where and vice versa. The only way they can change a report is if it was due to the fault of the creditor. (i.e. payments posted to wrong account)
However you can place a statement into your credit file that explains any derogatory info. (i.e I was behind because of unemployment) As long as that negative information is on file that statement must accompany it. It is up to the person with whom you applied to for credit who makes the decision of if you are granted credit or not. The credit bureaus do not determine if you get credit. They simply relay your score which is based a many factors such as payment history, recent inquiries, % of total credit available to you that you have used, and income to debt ratio.
Read More..
File Under :
banks,
credit card,
Debt,
finance,
financial advice,
investment,
loans,
money,
saving,
wealth
So you are getting collection calls? You’re desk is full of unpaid bills. You dread answering the phone. You are having trouble sleeping at night because you are worrying about a bunch of bills. You feel depressed.
Does any of this sound familiar? If it does then, maybe this article can help you. First of all you need to realize that you are not the only one. You are not alone. Then you need to know that there can be light at the end of the tunnel.
This article is not meant to be legal advice. It is to let you know your rights under the law. Perhaps it will steer you in the right direction. As this site is targeted for residents of Jacksonville, I will only deal with Florida statutes. I will explain your rights under the Fair Debt Collection Practices Act (FDCPA). This is legislation that was enacted in 1977 to stop abusive collection practices. I quote the Florida State Attorney General How to Protect Yourself: Debt Collections/Consumer Source: The Florida Attorney General's Office
You may have questions relating to debt collections if you are contacted by a "debt collector," someone who regularly tries to collect debts owed to others. A debt collector may contact you if you are behind in your payments to a creditor on a personal, family or household debt, or if an error has been made in your account. A debt collector may contact you in person, by mail, telephone, telegram, or fax. However, a collector may not communicate with you or your family with such frequency as can reasonably be expected to be harassing. A debt collector may not contact you at work if the collector knows your employer disapproves. A collector may not contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m., unless you agree.
A debt collector is required to send you a written notice within five days after you are first contacted, telling you the amount of money you owe. The notice must also specify the name of the creditor to whom you owe the money, and what action to take if you believe you do not owe the money. You may stop a collector from contacting you by writing a letter to the agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further contact, or to notify you if the debt collector or the creditor intends to take some specific action. If you do not believe you owe the debt, you may write to the collection agency within 30 days after you are first contacted saying you don't owe the money. The agency may not contact you after that unless you are sent proof of the debt, such as a copy of the bill.
A debt collector may not harass or abuse any person. For instance, a collector may not use threats of violence against the person, property or reputation, use obscene or profane language, advertise the debt, or A debt collector may not use false statements, such as: falsely implying that they are attorneys, that you have committed a crime, or that they operate or work for a credit bureau or misrepresenting the amount of your debt, the involvement of an attorney in collecting a debt, or indicating that papers sent to you are legal forms when they are not. Debt collectors may not tell you that you will be arrested if you do not pay, that they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so and has a legal right to do so, or that a lawsuit will be filed against you, when they have no legal right to file or do not intend to file such a suit.
If you have a question about whether the collection agency which has contacted you is properly registered, you may file a complaint either with the Attorney General's office or the Federal Trade Commission, Correspondence Branch, Washington, D.C. 20580. You may file suit against the collection agency for violating state and/or federal law. If you prevail, you may be awarded your actual damages, attorney’s fees and costs. The protection he mentions is from the FDCPA. The FDCPA is not a Florida law. It is a federal law. The law provides for stiff penalties for debt collectors (i.e. the actual collector or the company or agency for which he/she works). This means that you do not have to put up with collection harassment or being insulted or threatened with such things as going to jail, criminal charges, seizing you wages, calling your employer or friends and family to tell them about the debt. You do not deserve this type of treatment and should not stand for it. They may not misrepresent themselves. They can’t
If you feel that a collector(s) are being abusive you have several options : 1) contact the supervisor or owner of the agency. The one on the phone is usually an hourly employee. Higher ups normally want their people to comply with the law as to prevent costly lawsuits against them.
2) You may also notify them that they are not to call you again. This should be done in writing by certified mail with return receipt so that you have proof that you did advise them not to call you. This is a no call request. You should only do this after repeated incidents. Why do I say this? You may get one call where the collector is rude. The next one you get may not be.
Having done collections for many years, I often had calls where the person was angry from the last person they had spoken to. But by working with them I was able to come to a mutually agreeable solution. So because you had one bad experience doesn’t mean they are all like that.
Many collectors strive to stay within the law. But you do have the right to do this under the law.
3) Contact the Federal Trade Commission (http://www.ftc.gov).
4) Consult an attorney. The bottom line is that you don’t have to take abusive practices. Bear in mind also that they can’t harass you. Calling you one time every 3-7 days isn’t harassment. Calling you repeatedly on the same day after they have done spoke to you may be considered collection harassment. Calling before 8 am and after 9pm is against the FDCPA. An attorney can best determine if it is.
Perhaps the problem isn’t that you are being harassed or abused. You are behind and don’t know what to do. You know you owe the debt but don’t have the money to resolve it right now. Lets look at your options. Debt is either of 2 kinds. Secured or unsecured. A secured debt means that there is an asset that secures it, such as a house or a car. Unsecured is normally a credit card or similar account.
With a secured debt the creditor has the right to take possession of the secured asset if you do not pay. You may also be liable for the balance of what was owed less what the creditor sold it for. With an unsecured debt the debt continues going past due until it “charges off”. This means the creditor has to remove it from the books as an asset. This doesn’t mean they just “write it off” and the debt goes away. Typically they will either send it to a collection agency to try to recover or they may send it to a collection attorney to take action. This is up to the creditor to decide which action they will take.
Now less review your options.
1)Keep the lines of communication open between you and your creditor. They want to work with you to resolve it. It does neither you nor them any good if they have to repot your car or charge off your account. If you have run into problems, let them know.
2) Don’t promise something that you can’t do. If you can’t commit to an amount then don’t say you will. Creditors normally keep track of the number of times you break your promises and it some case it may influence their actions later on.
3) Most secured creditors will allow you to skip one or two payments and put it on the back of the loan. Each one has different rules for this.
4) Most unsecured creditors have programs to work with debtors. The most prevalent one is a “reage” or “cure” program. For instance, your monthly payment is $50. You are 4 months behind. You don’t have the money to catch it up. But you could make that $50 a month payment now. I have seen this scenario many times in my years as a collector. The statement is wanting $200 and they can only do $50. With a “reage” or “cure” program they would just have to resume making the $50 a month and after 3 months the account is current. Which means it will report to the credit bureau as current and it will not be getting late fees since it isn’t considered late any more. Call your creditor and ask about a “reage” program. They may call it something else.
5) Credit Card companies have a minimum payment, which is usually something like 2.5% of the balance plus any overlimit amount. I have seen many people get behind and have their credit affected by it because of this. View the example Credit limit balance Payment % Minimum MIN+ ovrlmt 1000 1100 3.0 $33 $133 In this example the payment being requested by the credit card company is $133. The person may get this and be unable to pay the $133. Instead they pay nothing. Hence their account goes past due.
The next statement the the amount is even greater since there was no payment the month before and it is even more overlimit because of finance charges, late fees and overlimit fees. However if the person had paid the $33(3% of balance) the account wouldn’t have went past due. It would still have gotten an overlimit fee but no late fees since it is still current on the payments. Check your cardholder agreement to determine the minimum payment percentage.
I realize this has been lengthy. I hope it has been of some help. Check back again for the next article in this series. If you know someone this can help, please refer them to the site.
Read More..
Does any of this sound familiar? If it does then, maybe this article can help you. First of all you need to realize that you are not the only one. You are not alone. Then you need to know that there can be light at the end of the tunnel.
This article is not meant to be legal advice. It is to let you know your rights under the law. Perhaps it will steer you in the right direction. As this site is targeted for residents of Jacksonville, I will only deal with Florida statutes. I will explain your rights under the Fair Debt Collection Practices Act (FDCPA). This is legislation that was enacted in 1977 to stop abusive collection practices. I quote the Florida State Attorney General How to Protect Yourself: Debt Collections/Consumer Source: The Florida Attorney General's Office
You may have questions relating to debt collections if you are contacted by a "debt collector," someone who regularly tries to collect debts owed to others. A debt collector may contact you if you are behind in your payments to a creditor on a personal, family or household debt, or if an error has been made in your account. A debt collector may contact you in person, by mail, telephone, telegram, or fax. However, a collector may not communicate with you or your family with such frequency as can reasonably be expected to be harassing. A debt collector may not contact you at work if the collector knows your employer disapproves. A collector may not contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m., unless you agree.
A debt collector is required to send you a written notice within five days after you are first contacted, telling you the amount of money you owe. The notice must also specify the name of the creditor to whom you owe the money, and what action to take if you believe you do not owe the money. You may stop a collector from contacting you by writing a letter to the agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further contact, or to notify you if the debt collector or the creditor intends to take some specific action. If you do not believe you owe the debt, you may write to the collection agency within 30 days after you are first contacted saying you don't owe the money. The agency may not contact you after that unless you are sent proof of the debt, such as a copy of the bill.
A debt collector may not harass or abuse any person. For instance, a collector may not use threats of violence against the person, property or reputation, use obscene or profane language, advertise the debt, or A debt collector may not use false statements, such as: falsely implying that they are attorneys, that you have committed a crime, or that they operate or work for a credit bureau or misrepresenting the amount of your debt, the involvement of an attorney in collecting a debt, or indicating that papers sent to you are legal forms when they are not. Debt collectors may not tell you that you will be arrested if you do not pay, that they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so and has a legal right to do so, or that a lawsuit will be filed against you, when they have no legal right to file or do not intend to file such a suit.
If you have a question about whether the collection agency which has contacted you is properly registered, you may file a complaint either with the Attorney General's office or the Federal Trade Commission, Correspondence Branch, Washington, D.C. 20580. You may file suit against the collection agency for violating state and/or federal law. If you prevail, you may be awarded your actual damages, attorney’s fees and costs. The protection he mentions is from the FDCPA. The FDCPA is not a Florida law. It is a federal law. The law provides for stiff penalties for debt collectors (i.e. the actual collector or the company or agency for which he/she works). This means that you do not have to put up with collection harassment or being insulted or threatened with such things as going to jail, criminal charges, seizing you wages, calling your employer or friends and family to tell them about the debt. You do not deserve this type of treatment and should not stand for it. They may not misrepresent themselves. They can’t
If you feel that a collector(s) are being abusive you have several options : 1) contact the supervisor or owner of the agency. The one on the phone is usually an hourly employee. Higher ups normally want their people to comply with the law as to prevent costly lawsuits against them.
2) You may also notify them that they are not to call you again. This should be done in writing by certified mail with return receipt so that you have proof that you did advise them not to call you. This is a no call request. You should only do this after repeated incidents. Why do I say this? You may get one call where the collector is rude. The next one you get may not be.
Having done collections for many years, I often had calls where the person was angry from the last person they had spoken to. But by working with them I was able to come to a mutually agreeable solution. So because you had one bad experience doesn’t mean they are all like that.
Many collectors strive to stay within the law. But you do have the right to do this under the law.
3) Contact the Federal Trade Commission (http://www.ftc.gov).
4) Consult an attorney. The bottom line is that you don’t have to take abusive practices. Bear in mind also that they can’t harass you. Calling you one time every 3-7 days isn’t harassment. Calling you repeatedly on the same day after they have done spoke to you may be considered collection harassment. Calling before 8 am and after 9pm is against the FDCPA. An attorney can best determine if it is.
Perhaps the problem isn’t that you are being harassed or abused. You are behind and don’t know what to do. You know you owe the debt but don’t have the money to resolve it right now. Lets look at your options. Debt is either of 2 kinds. Secured or unsecured. A secured debt means that there is an asset that secures it, such as a house or a car. Unsecured is normally a credit card or similar account.
With a secured debt the creditor has the right to take possession of the secured asset if you do not pay. You may also be liable for the balance of what was owed less what the creditor sold it for. With an unsecured debt the debt continues going past due until it “charges off”. This means the creditor has to remove it from the books as an asset. This doesn’t mean they just “write it off” and the debt goes away. Typically they will either send it to a collection agency to try to recover or they may send it to a collection attorney to take action. This is up to the creditor to decide which action they will take.
Now less review your options.
1)Keep the lines of communication open between you and your creditor. They want to work with you to resolve it. It does neither you nor them any good if they have to repot your car or charge off your account. If you have run into problems, let them know.
2) Don’t promise something that you can’t do. If you can’t commit to an amount then don’t say you will. Creditors normally keep track of the number of times you break your promises and it some case it may influence their actions later on.
3) Most secured creditors will allow you to skip one or two payments and put it on the back of the loan. Each one has different rules for this.
4) Most unsecured creditors have programs to work with debtors. The most prevalent one is a “reage” or “cure” program. For instance, your monthly payment is $50. You are 4 months behind. You don’t have the money to catch it up. But you could make that $50 a month payment now. I have seen this scenario many times in my years as a collector. The statement is wanting $200 and they can only do $50. With a “reage” or “cure” program they would just have to resume making the $50 a month and after 3 months the account is current. Which means it will report to the credit bureau as current and it will not be getting late fees since it isn’t considered late any more. Call your creditor and ask about a “reage” program. They may call it something else.
5) Credit Card companies have a minimum payment, which is usually something like 2.5% of the balance plus any overlimit amount. I have seen many people get behind and have their credit affected by it because of this. View the example Credit limit balance Payment % Minimum MIN+ ovrlmt 1000 1100 3.0 $33 $133 In this example the payment being requested by the credit card company is $133. The person may get this and be unable to pay the $133. Instead they pay nothing. Hence their account goes past due.
The next statement the the amount is even greater since there was no payment the month before and it is even more overlimit because of finance charges, late fees and overlimit fees. However if the person had paid the $33(3% of balance) the account wouldn’t have went past due. It would still have gotten an overlimit fee but no late fees since it is still current on the payments. Check your cardholder agreement to determine the minimum payment percentage.
I realize this has been lengthy. I hope it has been of some help. Check back again for the next article in this series. If you know someone this can help, please refer them to the site.
Read More..
File Under :
banks,
credit card,
Debt,
finance,
financial advice,
investment,
loans,
money,
saving,
wealth
Copyright 2006 Andy Warren
Another Big Brother season is underway and viewers are still gripped by the gradual (and sometimes quite dramatic) psychological demise of people who appeared to be living on the edge to begin with. It’s easy to tune in and gaze in disbelief at the people who have chosen to put themselves in this bizarre position all for the sake of the elusive prizes of acceptance, approval and more money. Why do they do it?
Perhaps they don’t quite realize what they’re getting into in the first place. Maybe it just seems like a good idea at the time so they go for it. Perhaps the temptation is just too compelling. But are we really all that different to the housemates?
Just the like the Big Brother house you probably share your life with some unwanted partners and maybe they’re beginning to take over your life. In this case they’re called Credit Card Debt, Late Payment Fees and Overdraft Charges. They seem to come into your life, uninvited, and just established themselves there. And now you can’t seem to get rid of them. And there’s no public vote to take them out.
So who really invited them in and why can’t you evict them? The answer lies in a real Big Brother that’s lurking in the background of your life. And it’s not really some sinister Orwellian nightmare, it’s simply your own temptation getting the better of you.
Of course there are some cases where people have really fallen on hard times and are dealing with challenges of debt and poverty that are not their own making. However, there are many more earning a decent salary with no real challenges who have simply slipped slowly into more and more debt.
Perhaps you’ve been tempted by the attractive offers for loans and credit cards. Maybe the magazines full of the latest must-haves have grabbed your attention for just long enough to get you buying. Could it be that those impulse buys, or the offer of a 10% discount at the department store were just the push you needed to put you in your own Big Brother house with some new housemates?
And once those unwanted housemates of Debt, Charges and Fees get their feet in the door it can feel like their immune from eviction every month. They just stay there and if anything they get more of a foothold and get larger. They’re eating you out of House and Home and you can’t even go to the Diary Room to complain.
So what can you do?
Well the first thing is to accept that you actually invited them in and stop denying that you were responsible. It’s tough to do but it’s the first step to putting yourself in charge.
Next you need to decide, once and for all, that you want them out. And you need to decide that you’re willing to do whatever it takes to evict them.
The Charges and Fees can be voted out quite easily by getting yourself a little more organised and setting up direct debit payments to make sure at least your minimum credit card payment is covered each month. You may need to speak to your bank for an extended overdraft but you’ll need to stay within in to avoid overdraft fees and that does mean watching what you spend for a little while as you get back in charge. Of course, if you’re avoiding a few £25 late payment charges each month then you’ll find staying in credit a little easier. Many people find they can get these unwanted visitors out within a few months or less.
The slightly bigger challenge is your Credit Card and Loan Debt. This takes a little more work but, by sticking to an effective plan for paying off the debt, many people find they can clear their debts within a year to two years. The more focus and concentration you put in the faster it goes.
And once you’ve evicted those unwanted housemates you can start inviting a few more friendly faces in, like Savings, Investments, Wealth and Good Relationships. Now wouldn’t you prefer to spend your time with those?
Read More..
Another Big Brother season is underway and viewers are still gripped by the gradual (and sometimes quite dramatic) psychological demise of people who appeared to be living on the edge to begin with. It’s easy to tune in and gaze in disbelief at the people who have chosen to put themselves in this bizarre position all for the sake of the elusive prizes of acceptance, approval and more money. Why do they do it?
Perhaps they don’t quite realize what they’re getting into in the first place. Maybe it just seems like a good idea at the time so they go for it. Perhaps the temptation is just too compelling. But are we really all that different to the housemates?
Just the like the Big Brother house you probably share your life with some unwanted partners and maybe they’re beginning to take over your life. In this case they’re called Credit Card Debt, Late Payment Fees and Overdraft Charges. They seem to come into your life, uninvited, and just established themselves there. And now you can’t seem to get rid of them. And there’s no public vote to take them out.
So who really invited them in and why can’t you evict them? The answer lies in a real Big Brother that’s lurking in the background of your life. And it’s not really some sinister Orwellian nightmare, it’s simply your own temptation getting the better of you.
Of course there are some cases where people have really fallen on hard times and are dealing with challenges of debt and poverty that are not their own making. However, there are many more earning a decent salary with no real challenges who have simply slipped slowly into more and more debt.
Perhaps you’ve been tempted by the attractive offers for loans and credit cards. Maybe the magazines full of the latest must-haves have grabbed your attention for just long enough to get you buying. Could it be that those impulse buys, or the offer of a 10% discount at the department store were just the push you needed to put you in your own Big Brother house with some new housemates?
And once those unwanted housemates of Debt, Charges and Fees get their feet in the door it can feel like their immune from eviction every month. They just stay there and if anything they get more of a foothold and get larger. They’re eating you out of House and Home and you can’t even go to the Diary Room to complain.
So what can you do?
Well the first thing is to accept that you actually invited them in and stop denying that you were responsible. It’s tough to do but it’s the first step to putting yourself in charge.
Next you need to decide, once and for all, that you want them out. And you need to decide that you’re willing to do whatever it takes to evict them.
The Charges and Fees can be voted out quite easily by getting yourself a little more organised and setting up direct debit payments to make sure at least your minimum credit card payment is covered each month. You may need to speak to your bank for an extended overdraft but you’ll need to stay within in to avoid overdraft fees and that does mean watching what you spend for a little while as you get back in charge. Of course, if you’re avoiding a few £25 late payment charges each month then you’ll find staying in credit a little easier. Many people find they can get these unwanted visitors out within a few months or less.
The slightly bigger challenge is your Credit Card and Loan Debt. This takes a little more work but, by sticking to an effective plan for paying off the debt, many people find they can clear their debts within a year to two years. The more focus and concentration you put in the faster it goes.
And once you’ve evicted those unwanted housemates you can start inviting a few more friendly faces in, like Savings, Investments, Wealth and Good Relationships. Now wouldn’t you prefer to spend your time with those?
Read More..
File Under :
Debt
There was a time when lenders use to see bad credit holders as potentially risky customers to lend money to. But with the increasing number of people having poor credit, lenders started seeing a huge potential of market in there and came up with financing plans especially for adverse credit holders.
A person can get bad credit tag due to defaults in previous debts, arrears, declaration of bankruptcy, CCJ etc. it means that credit rating of that person is below 620 which is not seen as a good one in loan market. But loans for bad debthave totally reversed the situation enabling bad credit holders also to secure cash when they need it.
Use of loaned amount
These loans can be taken in any form – bad credit home loan, bad credit car loan or bad credit personal loan etc. and use of the money depends on the which scheme you have applied for. But you have a certain degree of freedom to use the money wherever you want.
The types:
These loans can be secured in secured or unsecured forms. In case of secured ones collateral has to be placed against the money and it will help to negotiate with the lender to certain degree. But with unsecured bad debt loans there is no need of any security.
These loans can be applied for either long term or short term scheme. In case of the first one, money can be repaid within 10 to 25 years and rate of interest rate will be less. But with short term repayment term will be 3 to 5 years and interest rate will be high. Being, regular in repayment will help you to improve your credit score.
Any amount in the range of £10000 to £25000 can be secured. Interest rate will vary from lender to lender. These loans are available in banks, private loan lending agencies or from online lenders also.
Read More..
A person can get bad credit tag due to defaults in previous debts, arrears, declaration of bankruptcy, CCJ etc. it means that credit rating of that person is below 620 which is not seen as a good one in loan market. But loans for bad debthave totally reversed the situation enabling bad credit holders also to secure cash when they need it.
Use of loaned amount
These loans can be taken in any form – bad credit home loan, bad credit car loan or bad credit personal loan etc. and use of the money depends on the which scheme you have applied for. But you have a certain degree of freedom to use the money wherever you want.
The types:
These loans can be secured in secured or unsecured forms. In case of secured ones collateral has to be placed against the money and it will help to negotiate with the lender to certain degree. But with unsecured bad debt loans there is no need of any security.
These loans can be applied for either long term or short term scheme. In case of the first one, money can be repaid within 10 to 25 years and rate of interest rate will be less. But with short term repayment term will be 3 to 5 years and interest rate will be high. Being, regular in repayment will help you to improve your credit score.
Any amount in the range of £10000 to £25000 can be secured. Interest rate will vary from lender to lender. These loans are available in banks, private loan lending agencies or from online lenders also.
Read More..
File Under :
Debt
It will take you on average between 25 to 30 years to pay off your credit card at the minimal amount. This will not do.
Make a list of all of your credit cards (including all consumer debt such as doctor bills, furniture stores and your home).
List the following in columns: the type of credit card, principle amount, regular payment amount, power down payment, interest rate, total number of payments left on the card, estimated payoff date. Put your list in order of how many payments are left from least to most. If you make a minimum payment of $55/month on one of your cards until it is paid off in full, you then have $55/month freed up to add to the minimum monthly payment for the next credit card. After you pay off the second card, the amount you were paying on that one can be applied toward the third card. By doing this, you will decrease the number of years required to pay off your credit cards from approximately 30 years to nine years.
Using this strategy, think about the other ways you can free up money. If you spend about $100 at Starbucks each month, think about spending that money toward your credit card payments.
Remember, money is emotional. We spend and make money based on emotional compulsion. Go back and see what you spent money on in the last week and how much you spent. It’s not how much money you make that matters, but how well you manage it that counts.
Read More..
Make a list of all of your credit cards (including all consumer debt such as doctor bills, furniture stores and your home).
List the following in columns: the type of credit card, principle amount, regular payment amount, power down payment, interest rate, total number of payments left on the card, estimated payoff date. Put your list in order of how many payments are left from least to most. If you make a minimum payment of $55/month on one of your cards until it is paid off in full, you then have $55/month freed up to add to the minimum monthly payment for the next credit card. After you pay off the second card, the amount you were paying on that one can be applied toward the third card. By doing this, you will decrease the number of years required to pay off your credit cards from approximately 30 years to nine years.
Using this strategy, think about the other ways you can free up money. If you spend about $100 at Starbucks each month, think about spending that money toward your credit card payments.
Remember, money is emotional. We spend and make money based on emotional compulsion. Go back and see what you spent money on in the last week and how much you spent. It’s not how much money you make that matters, but how well you manage it that counts.
Read More..
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