CAll Us: (800) 544-0231 Live Chat   Login
Menu

Author Archives: approvedcsi

4 Simple Steps To Get Out Of Debt – And Stay Out

4 Simple Steps To Get Out Of Debt – And Stay Out

Ways to get out of debt and create a financially secure future

Step One: Plan for the Unexpected Big Time Bill

The first step arises from debt from a one-time large expense – something that is too large to be paid for with your monthly paycheck, or by saving for a few months.

Many of these debts are investments in either an asset that will appreciate over time or an income stream that will be greater over time. The most common example is the purchase of a home. Very few people are able to save enough money to purchase their home outright or pay for their entire home out of a few paychecks. We use a mortgage to pay for the home after-the-fact and to enjoy homeownership in the meanwhile. Another example is an investment in education. Many people cannot afford to pay for college tuition outright – so we take out loans, planning that our future income stream will enable us to be able to afford to pay for the education after-the-fact.

The more insidious type of one-time large expense is the expense that is not an investment. The emergency, unexpected, unplanned-for bill – extreme medical bills, disability, failure of a business, a lawsuit judgment, or long-time unemployment. These bills can put a family under – forcing them to either sell assets, move out of their home, or declare bankruptcy because they will never be able to pay off the debt with their income.

One way to combat this danger is to set aside three to six months of your living expenses in a special savings account – an Emergency Fund — to be used for the emergency, unexpected expense. This money is sacred, only for a family emergency. The Emergency Fund will save your family from potential tragedy and help you create a secure future.

Action Step #1: Open a special savings account to be your Emergency Fund. Set aside money each paycheck or month to fund this account.

Step Two: Think Out of the Budget Box

Instead of worrying about budgets, this step is the flip side of cash flow problems – income.

We know when we have a debt problem. We may stop opening bills, stop answering the phone. We may even try to create budgets, reduce our expenses, cancel cable, live at the basic minimum, to try to stop the bleeding.

But sometimes, overspending is not the problem. It is underearning.

You may just not earn enough to afford to live your life. I’m not talking about living an extravagant lifestyle, or even a “nice” lifestyle – but the basic necessities of life – housing, automobile, phone, insurance, groceries, gas, clothing – may add up to too much, given your income. These are especially common inexpensive places to live, like Silicon Valley.

The first step in dealing with this problem is to stop feeling guilty. You are not a bad person, who spends irresponsibly. You are someone who needs to acknowledge that you need, want, and deserve more income.

Instead of being frozen in guilt, start to take action on creating more income. You may not need to do something radical – you may just need to ramp up what you are already doing or look for hidden treasure already in your life.

Put together a proposal for your boss, to describe how the company would be better if you got a raise. Create a new information product to generate passive income for your business. Search your basement for items you can auction on e-bay. Teach a class on scrapbooking, or changing the oil in your car. Have a garage sale to generate some quick cash, and reduce the clutter in your life.

Whatever you do, the important idea is to start implementing your goal to get out of debt today.

Action Step #2: Brainstorm 5 ways you will earn more income now – such as – ask for a raise, look for a new job, start a small business, sell a new product, auction old items on e-bay, rent out a room, teach a skill, or have a garage sale.

Step Three: Planning for the Big Stuff

This step is about the debts that sneak upon us. You may be able to pay for your bills and regular expenses each month — but what happens if the car breaks down? Does the property tax bill arrive? Your quarterly’s are due? Christmas? Baby announcement? Does the wedding invite? The family or high school reunion? The big family vacation you all deserve?

Are you able to pay for those non-monthly expenses out of your paycheck or your small business profits? Or, do those items go on a credit card?

Automobile repair, gifts, taxes, and travel are all examples of expenses that are non-monthly but are expected. We know they are coming, but not necessarily when, or how much. These expenses should not be going on a credit card – you should save for them ahead of time, so you do not pay a bank 10-20+% a year for the privilege of paying for your expenses after-the-fact.

Go through your bills, receipts, and cards for the last year, or the last few years, and figure out how much you spend on each of these categories each year, on average. If you don’t have those records, make a realistic estimate. Divide that annual amount by 12. That’s how much you should set aside each month for your irregular expenses.

Action Step #3: Open special savings account for at least one non-regular expense: either auto repairs, taxes, travel, or gifts. Save a fixed amount each month in that savings account, so when bills are due, you already have the money!

Step Four: Plug The Holes to Get Out of Debt

Step four is about how to prevent your family from going into debt, by planning for your expenses ahead of time. In this step, we come to the most insidious problem, and the most difficult to conquer – overspending.

Do you know where your money goes each month? How much are all of your bills? How much are you spending on Dining Out? Drinks Out? Gas? Target & Costco? Clothes? Personal care (i.e., massage, pedicures)? Recreation – movies, golf, Netflix? Toys (both for the kids and for yourselves)? Do you really know?

Do you spend your money in accordance with your values and priorities? Are there one, or more areas, where you are spending money not because you particularly need, or even enjoy, that product or service – but because you are not paying attention, or because you are compensating for another problem in your life by habitually spending money in that area?

Commonly, we see this in clothes, toys for kids, recreation, high-tech gadgets, and dining out – easy for relatively small expenditures, made each day or week, to add up to hundreds, if not thousands, of dollars each month. Spending without thinking will derail you from ever being able to achieve your most important life goals. Especially if you are spending more than your income, month after month.

Instead of being frozen in guilt, do something about it. Look over your habits for the last few months, and pick the most obvious problem area, where you “go” when you are stressed, bored, or unhappy. Do you buy CDs? Shop online? Get a new pair of shoes? Start in one category, and create good habits and rules for yourself in that area – then carry those personal rules over to the rest of your expenses.

Action Step #4: Create a Cash-Only account for your problem category. Withdraw your budgeted monthly amount in cash on the first day of the month, and place the cash in an envelope – when the envelope is empty, you’re done!

5 Tips To Help You Deal With Credit Card Debt

5 Tips To Help You Deal With Credit Card Debt

Do you tend to be late in paying your credit card bills? Is your pile of notices from creditors getting higher and higher? Do you fear you might lose your properties because you can’t pay off your credit card debt?

Being in deep credit card debt is not a thing that can be easily brushed off or treated lightly. Anyone who’s been in this situation knows how terrible it feels. However, if you ever find yourself in deep credit card debt, there are things you can do to make your financial situation not worse than it already is.

Tip #1: Budget right away.

Don’t wait until you lose your house. As soon as you find yourself in a bad financial situation, make a budget right away. How much is your income? Does it cover your expenditures? Assess your situation and know which expenditures are vital and which are not. Do you really need to eat out three times a week? Do you truly need to have all the bells and whistles that come with your cellphone plan? Must you shop for clothes every week? Your budget needs to cover all your basic necessities: food, housing, clothes, basic utilities, and health-related costs.

Tip #2: Face your creditors.

Many deal with their creditors by avoiding them or running away from them. Dealing with creditors this way only leads to bigger and more serious problems. If you find yourself having a hard time paying off your debts on time, the best way to deal with it is to contact your creditors right away. Disclose to them your reasons for not being able to pay your debts and ask if they can come up with a revised payment arrangement. It’s important that you let your creditors know that, while you are in debt, you are very willing to pay it off. Face your creditors. Don’t let them reach a point where they pass your situation to a debt collection agency.

Tip #3: Deal with debt collectors.

The Fair Debt Collection Practices Act is a federal law clearly stating that debt collectors cannot bug you, give false assertions or do anything that is not fair when they are trying to collect money from you. Read and understand this federal know so you can properly address debt collectors.

Tip #4: Consider credit counseling to get tips on how to get out of credit card debt.

There are groups and institutions that offer credit counseling for those who need help with their financial problems. A good credit counseling organization can help you come up with an improved payment arrangement for your credit card debts. You can present this plan to your creditors for their approval.

Tip #5: File for bankruptcy.

Filing for personal bankruptcy is a last resort to fixing — and the legal way of addressing — your credit card debt. However, keep in mind that if you file for bankruptcy, it will remain in your financial information report for years. Thus, you may find it difficult to get additional credit, buy a house, or even get a job with a bankruptcy on your financial information report.

Are There Risks Involved With Debt Consolidation Services?

Are There Risks Involved With Debt Consolidation Services?

Are you currently carrying a massive debt load? Do you wonder if it’s another bill collector every time your telephone rings? Do you wake up at night wondering if you’ve forgotten to pay something? If so you may want to consider seeking the help of debt consolidation services.

And if you choose a debt consolidation services that do not charge a fee, one that is already subsidized by many of the creditors that they aim to help repay, you could benefit even more because they will be putting the entire amount that you pay towards your outstanding debts instead of keeping part of it as their payment.

However, non-profit debt consolidation services offer many other services than just debt consolidation and repayment. They also offer consumers advice on keeping their finances on target, developing workable monthly budgets, and how to repair a poor credit rating.

Getting your finances straighten out is of course the first step. The debt consolidation services will help you make a list of all your outstanding unsecured debts, how much you owe to each of them, and what the total amount you should be paying every month is.

The next step is to work out what your monthly expenses are. These include your mortgage or rent, your utility bills, child care expenses, and any other mandatory payments you must make, especially if they are guaranteed by your property. Once your budget is done you can decide how much you can spend each month to pay towards your debt consolidation.

Once you know how much you can actually afford to spend each month in repaying your debts, the debt consolidation services will contact each of your creditors and ask them to agree on a lower repayment amount each month. Sometimes they can even get your creditors to lower their interest rates or eliminate some of the fees that they have been charging you for being late or over your credit limit. Most creditors will want to work with you because they realize that if they don’t negotiate a lower payment, they are unlikely to receive any money for the outstanding debt.

Now let’s talk about what risks are involved in using a debt consolidation service. Basically, the only risk is if you use a debt consolidation service that is not legitimate or professional. Do some research and even ask your creditors if there is a specific company they work with regularly that they can recommend.

Beyond that, there really is no downside. And the upside is that you will have peace of mind in knowing that your bills are being paid on time every month.

Bad Credit Loan – Should You Get One?

Bad Credit Loan – Should You Get One?

Sometimes it becomes necessary to be able to put your hands on some money, when you need it, even if you have bad credit. Your credit rating has nothing to do with whether you need money or not. Today, lenders make it much easier for people with bad credit to be able to get the money they need. Here are some things that you need to know about bad credit loan to be able to get the money you need.

You can get loans for just about anything – even with bad credit. There are, however, some things that the lenders will want to see before they give you a loan. Generally, they will want to see that you have a good job, and have been there a while. They will also want to know that you are now able to make payments because you can afford them. Although your credit ratings may not be good, you still should be able to make timely payments. A funny thing about bad credit loans is that someone may qualify, even if they just finished bankruptcy proceedings last week – if these other conditions are applicable.

Whether you are interested in getting a mortgage for a new house, or for a car, or even for debt consolidation, you may be eligible. You should be aware, though, that the kind of deal you will be able to get will not be the same as someone who has good credit. The lender will probably limit you in three ways, making it a little less than the ideal loan. First, it will have a higher interest and it could be quite a bit higher. Second, you will be limited in how much you can borrow. And, third, you will not be able to have as long of a repayment period as someone with good credit.

So, if these conditions bother you, then there are also a couple of things that you can do to get a better deal. They all, however, start with the word “wait.” If you can wait a little while, before you get the loan, it may mean quite a bit of saving to you in the long run. Take some time and reduce your existing debts as much as you can first. Repair your credit. Then, you will be able to get a better deal. The amount of savings that are possible to you, by waiting and following these simple steps, could be sizable.

Other than that, money is available to you. If you already have a house, though, then probably the best way you can get money is by getting a loan based on your equity. Get a home equity line of credit (HELOC), and you will have money to play with.

People that do not have a house can get a personal loan, and may not even have to provide any collateral. Either secured loans (with collateral), or unsecured loans (no collateral), can be obtained with bad credit.

When you go to get your bad credit loan, though, you need to be aware that there are fraudulent companies that are looking for people with bad credit. They feel that you are more desperate to get money and can be more easily taken advantage of. So be careful, look into the company that you are dealing with, especially if you have never heard of them before – and shop around for the best deals.

Bad Credit Repair – Solving The Problem

Bad Credit Repair – Solving The Problem

It is possible to fix your bad credit, with time, patience, and determination. The first step to bad credit repair is fixing any problems you may have with money.

1) Get a credit report on yourself and check out what is on them. You are allowed by U.S. law to get a free copy from each of the three major credit companies once every 12 months.

2) Once you have your credit reports, check them for accuracy. If there are any errors or things you disagree with, you are entitled by the Fair Credit Reporting Act law to dispute anything in the report that is not accurate. Write to the credit reporting company and explain what the problems are. They will then investigate the matter and let you know what happens. If they find the information is not accurate, they will fix that on your credit report.

Unfortunately, you can’t remove anything negative that is accurate information about you. Only time can do that. But adding more good information does help.

3) If your credit needs repair, start work on it now. Start paying off old unpaid debts and loans, starting with the smallest ones.

4) Start paying more than the minimum payment on your current credit card payments.

5) Do not get into any new debt. This is essential. Make it a priority to get out of debt. Cut up (or lock up) the credit cards, if they are a problem for you. Make it a commitment to become debt-free.

6) Live within your means. Make a budget and live by it.

7) Start saving money. If you have poor credit, it is much easier to buy a home or a car with a cash down payment, than without one.

There are many sources of help available. Consumer Credit Counseling Service provides budget counseling, educational programs, debt management assistance, and housing counseling. There are also many local branches of this nonprofit organization, so check for one near your location.

There are many “for-profit” organizations that will help you with debt consolidation loans, but beware! They often are very expensive. You can get free reliable help that you can trust from a non-profit organization like Consumer Credit Counseling Service instead of paying hundreds of dollars to one of them. Or, you can educate yourself and do it for free.

Approved CSI is a good place to check out for more credit and financial advice!

Bankruptcy Help – 5 Things You Can Do After Bankruptcy

Bankruptcy Help – 5 Things You Can Do After Bankruptcy

One of the issues that people considering bankruptcy often worry about is that they will never get credit after filing Chapter 7 or Chapter 13. That, or the fact that the bankruptcy will stay in their credit report for 10 years from the filing, which fact would serve as a warning to future creditors that you might turn out to be a bad risk. But neither is true, however, while bankruptcy will indeed stay in your credit report for ten years, it does not necessarily mean that you can no longer get new credit. If you want to learn more or need some advice on how you can get bankruptcy help, book a call now.

Furthermore, only a Chapter 7 bankruptcy will stay in your credit report within 10 years. If you filed under Chapter 13, the period is shorter – about five to seven years. Worst case scenario: You can get a new loan but with high-interest rates or fees. Now, that’s not so bad, is it? Especially after considering that even people with good credit can get bad loan deals. The fact remains that no matter how bad or good your credit line, it is not a guarantee that you are going to get approved for a loan or get low-interest rates. In other words, bankruptcy may damage your credit but only to an extent. It does not necessarily mean that you will never qualify for new credit. What damage there is, you can always rebuild. And that is what you should be focusing on, instead of wallowing in the pits of Credit Doom.

#1 CAN DO: Keep a Credit Card Out of the Bankruptcy

When filing for bankruptcy, the rule is that you have to make a schedule. A schedule is a list of all assets and liabilities that you are required under the law to disclose before a bankruptcy case could commence. If you owe money on a credit card at the time you file for bankruptcy, you have to include that in the schedule. Otherwise, you may be sued for perjury and penalized under federal law. What’s worse, if you fail to disclose unpaid credits like this, you may be denied a discharge of all your debts.

The rule, however, only applies to unpaid credits. So if you do not owe any money on your credit card, then you can go ahead and keep that one out of bankruptcy. You are not obliged to inform the credit card company of the bankruptcy case. Note, however, that your credit card company may still find out about it through other means and cancel your card as a precaution. If your credit card company gives you notice of cancellation of your credit card, don’t give up yet. Many credit card companies allow their credit cardholders who are filing for bankruptcy to keep their credit cards on the condition that they agree to reaffirm the balance on the card and enter into a new agreement. Try to re-negotiate the terms with your credit card company and see if you can settle for a situation that is beneficial for both you and the company. While the decision is up to the creditors, keep in mind that what they want is to avoid the loss incurred when the debt is discharged and to have your future business.

#2 Get New Credit After Bankruptcy

If there is one thing you can count on in today’s competitive lending environment, it is that credit is always available, even to the recently bankrupt. The catch? Credit may be more expensive than before and available with lower limits. But all that is second only to the fact that credit does exist and you can get it. One of the easiest credits available to the recently bankrupt is a secured credit card. As opposed to an unsecured credit card, in a secured card, you must make a deposit of a certain amount of money in exchange for a card that you can use just like a regular credit card. Your credit limit is equivalent to the cash deposit you made. Now, the good thing about a secured credit card is that it is usually available post-bankruptcy at lower rates than unsecured cards.

What’s more, the fact that these credit cards are secured is not often indicated in your credit report so creditors have no way of knowing whether your credit card is secured or not. All they will see is that you have been approved for a credit card, which ups your credit score a bit and puts you back in the game fairly quickly. Note, however, that credit experts are not quite in agreement concerning the impact of secured credit cards on your credit rating. So if you do decide to open a secured credit card post-bankruptcy, be sure to do it slow.? While your rush at rebuilding your credit is understandable, making mistakes that could significantly affect your credit score like this is not worth it.

Rebuilding your creditworthiness after bankruptcy is a matter of getting a toe-hold in the world of credit. The balance is often precarious and needs delicate treatment. Use credit cautiously and pay on time.

#3 Buy a House After Bankruptcy

Absolutely. In fact, there are many studies that show bankruptcy debtors can qualify for a home loan on the same terms as if they had not filed bankruptcy within 18 to 24 months after a bankruptcy discharge. You see, what the creditors are concerned about here is not your past financial troubles but your current financial status – e.g., your down payment, the stability of your income, and the relationship between the loan payments and your monthly income. That said, take note of the following things that you might want to do in preparation for your first house purchase post-bankruptcy:

• When purchasing a home after bankruptcy, the key is the discharge date, since there is usually a waiting period. If your loan was an FHA loan, you usually have a 2-year waiting period for that. For other conventional loans, the waiting period is four years. Now, during the waiting period, you need to do two things: re-establish at least 4 lines of credit (auto loans or credit cards, for example) and maintain an excellent payment history.

• Make sure that there aren’t any delinquencies on your credit report that should have been cleared off with the bankruptcy. If you find any, contact your creditors immediately. Include a copy of your “Schedule of Creditors” in your letter so that your creditors can indicate the debt was included in the bankruptcy and update your credit report.

• The more money you have in your savings or checking account, the better and stronger your file is going to look to a lender when you apply for a home loan. Remember that your ability to make a down payment bears great significance in your approval rating. If you have money in your savings account, your creditors will naturally conclude that you have the money to make a down payment.

#4 Get New Wheels After Bankruptcy

A common misconception people have after a bankruptcy is that getting new credit like a car loan is virtually impossible. Well, note that the word used is “virtually.” That is not the same as saying that you are certainly never going to qualify for a new car loan. Because the truth is you can and you should if you need to. If you can get a house after bankruptcy, then there is all the more reason for you to be able to get a car. In fact, you can even start going through some dealerships as soon as your discharge papers are in. Just remember that the interest rates are not going to be cheap. Here are some tips to help you deal with that one tiny tangle:

• Check with the Special Financing Department

Most car dealerships have this special financing department that handles would-be car purchasers who are going through some financial trouble. Since these buyers would not be able to qualify for a conventional auto loan, some dealerships are willing to offer you a different deal to help you get that car you want and at the same time overcome the hurdle of credit after bankruptcy.

• Credit Unions

If you are a member of the credit union at your workplace, contact them and see if you can get a car loan through them. Often, credit unions offer lower interest rates than banks, which in addition to charging you higher interest rates, may also require you to deposit your paycheck directly with them. If your workplace does not have a credit union, your neighborhood may have one. Some are available to people based on an organization or church affiliation, or even residence in a certain community.

• Charities

Not many people are aware of this but charities are actually a good place to look for inexpensive cars. You may have heard of charities that ask you to donate your working or non-working cars to them. In order to raise money, they repair these cars and sell them for a price that is significantly lower. Try those charities found in your neighborhood and see if they sell cars that are more along with your price range.

#5 Have a 700+ Credit Score Two Years After Discharge

You might find this statement suspect, which is understandable really when you consider the many stories of how one bankruptcy can thoroughly damage the credit rating you’ve been building up for years. Expert after expert has said that new credit is near impossible to get after filing for bankruptcy. However, in almost the same breath, the experts likewise say that it is not impossible to rebuild your creditworthiness after bankruptcy. And this is bolstered by the fact that you had a good reason for the bankruptcy, such as unemployment, medical, business failure, etc, and that you immediately took steps re-establishing credit after receiving the discharge.

So why then, despite complying with these two requirements, your credit score remains way below average? The answer lies in your credit report. Your credit report contains everything about your finances. All of the information contained in your credit report, when added up, result in your three-digit credit score. Hence, any errors in your credit report, such as a fraudulent credit line or a debt that remains even though it was supposed to be discharged after bankruptcy, can adversely affect your credit score.

Common sense tells you that if you correct these errors and mistakes, you can improve your credit score. Also, some creditors make various inquiries into your credit report. This act could lower your credit score. What’s more, after a discharge, they are allowed to make only one inquiry into your credit report. After that, you are entitled to ask for $1,000 every time they look into your credit report. Make certain that your creditors are not making any more inquiries into your credit report. Write them a letter explaining that the debt has already been discharged. Include a copy of the discharge order as well as a copy of the ‘Schedule of Creditors’ from your bankruptcy papers as proof that the debts have already been discharged.

Consider Consumer Counseling To Help With Debt

Consider Consumer Counseling To Help With Debt

It can be a challenge today to not spending money when others around you are driving expensive cars and living in your dream home. A result of this due to the availability of credit today is that individuals forget amidst their spending that the money they borrow on credit just be repaid, and with interest. If you are struggling to get out of debt, one of the best ways to consider a consumer counseling service.

It is not impossible for even rational individuals to be optimistic about their future ability to repay a loan. Believing that the monthly payments associated with a loan will not be a burden to repay, they take out the loan. Later, however, it may become obvious that the payments and money owing is outside their financial budget and possibilities. When the time comes that bill collectors to be calling, consumer counseling may be a good choice to assist with credit card debt settlement. Should you find yourself unable to repay your debt and handle settle debt yourself, here is some advice in choosing a good consumer counseling service.

Start your search either online or in a phone book but beware of possible scams. If the organization claims they can repair your credit in a very short time, you are dealing with a concerning company and you continue your search.

Reputable and trustworthy consumer counseling services will test you with some prerequisites before accepting you as a client. The perquisites may be different for each company, but the general requirements are a source of income and a minimum amount of unsecured debt. If you have trouble with secured debt such as a car loan or mortgage, it may be difficult for them to help you.

When you first meet with your credit counselor, be sure to have copies of all statements from your current loan or credit accounts. They will need to know the specifics of your financial situation, such as the amount owed to the creditors, the current monthly payments, and interest rates.

Thereafter, it is in the hands of the counselor. They will contact your creditors and negotiate a new monthly payment and lower interest rate. You can decide if you want to handle and submit the payments yourself or make a lump sum payment to the counseling service. If the latter is chosen, the counselor will make the payments to your creditors. Once an action plan is determined, the counselor will help you improve your general financial situation by creating a budget. A budget will help you avoid future debt and another financial situation. Today, there are even software programs to assist you in following and managing your budget. Of course, you can seek the advice of your counselor when you need it.

One last note, do not count on using your credit cards during the consumer counseling process. The service will require you to sometimes cancel the cards or stop using them until you have repaid your debt and repaired your credit.

Consolidate Credit To Stop Getting Turned Down

Consolidate Credit To Stop Getting Turned Down

If you have been applying for credit and always being turned down, that is because your credit report has negative information on it. Time to do something about that! Your credit file is the information kept by credit reporting agencies concerning your record of payments to creditors. There are three major credit reporting agencies that perform these services for companies who are interested in finding out how good or bad a risk you are. Whenever you apply for a loan, try to rent an apartment, and even apply for a job, you can be sure your credit report is being looked at. Time to consolidate credit and do something about your personal finances if you have a bad credit report and you get declined for any of these.

Your credit file is built up over the years by the credit reporting agencies that keep track of all of your bills and your bill-paying habits. If you have been in the habit of missing payments, being late, or just forgetting to pay, that will all be in your credit file as marks against your credit. These will result in lower credit scores, and lower credit scores mean you will not have a very good chance of getting a loan, or some other things you might be interested in, such as an apartment or a job. The opposite will also happen: if you are consistently a good payer, you can be sure you will be able to get a car loan, mortgage, credit card line, or just about anything else from a lender.

With so many people filing bankruptcy these days or using debt management programs, the lending companies lose money. So they want to avoid risks with people who may end up in bankruptcy. A bankruptcy ruling will stay on your credit record for ten or fifteen years. Debt management companies help you temporarily, but you are extending your debt and paying more fees, so it is harder to get out of debt.

You do have some protection under the law, but if you have bad credit, you will never really breathe easy until you can completely clean it up. In addition to a negative credit report and low credit number, we are also going to be facing judgments, foreclosures on a home, or repossession of goods, and even perhaps lawsuits. No one wants to risk being homeless and penniless. You know you have to find a way out.

What if you are in a situation where you cannot make a living, such as if you are on welfare or on disability? Look at any option you can to repair your credit. If your car is too expensive, find a cheaper one. If your home is too expensive, you may have to size it down to the one you can afford. Once these big expenses are eliminated, you can start to pay down debt and get your credit report back on track. This is the only way you will stop being turned down for credit.

Consolidating Debt – Investing In Debt Management

Consolidating Debt – Investing In Debt Management

John Dewey had quoted that a person’s money had more value than their credit. However, today’s creditors, like banks, do not share the same view. A good credit file report history is essential for obtaining personal loans thus, consolidating debt might be one of the next options. However, the inability to repay personal loans causes people to avoid calls from debt collectors and to miraculously pretend to forget any debts owed to their creditors.

The resulting fact is that all your banking, financial, purchasing, credit and store card, and other credit history is reported to credit bureaus by your creditors and recorded on your credit file. This file is designed to assist creditors, like banks, to evaluate your credit history and any risk you may pose in regards to repayments.

Bad credit is not a dead-end street, and you can repair and rebuild it in time with the proper management of your finances. However, one or more bad credit reports on your file will have you blacklisted by the banks, destroy your credit score, and stop you from investing in something you want, like a car.

A creditor’s negative credit report takes up to 7 years before it is removed from your credit file. However, you still need at least one year of good credit reporting after that before you can start getting credit or personal loans again. To avoid waiting 7 years for the item you want, like a car, even though you may have a very good income and professional status, consider a problem-free, loan for those with bad credit. Simply, apply to consolidate debt, your debts.

A debt management loan for those with bad credit does have a higher rate than normal personal loans. However, such a loan focuses on your current situation and regular and steady employment, whilst ignoring your past credit report history.

You benefit from promptly fixing your credit report history and credit score, and you can start to rebuild your life. You have the opportunity to work towards buying a home or negotiating a lower interest rate on your credit cards.

If you make your payments when they are due, the bad credit history personal loan will work for you. Without this, you cannot benefit from any major purchases you wish to make, like buying a car. This loan will work if you make it work.

Again, bad credit report history is fixable and not the end of the line for you. Most people have experienced bad credit at least one or more times in their life. Now is the time to rebuild and create your positive credit future by considering the benefits to you by using a bad credit history, personal loan, and the workable interest rates they provide. Need to learn more important benefits of consolidating debt? We can help!

Credit repair is as important as getting out of debt

Credit repair is as important as getting out of debt

Avoiding complications in credit repair is almost important as getting out of debt. When we have bills that were neglected simply because we didn’t have the money to pay the bills, or else we purchased items instead of paying the bills, we are in debt.

If you are considering a Home Equity Loan to get out of your current mortgage, don’t. Why? Simply because most Home Equity Loans get you deeper in debt and once you are obligated you will find the problem is more complicated than when you applied for the loan.

Lenders often target homeowners with financial difficulties offering them high-interest rates and making them believe it is a solution for debt relief. In most cases, this is where foreclosures come in, or selling homes come into place. The solution is only an option to get you in debt deeper. One solution then is for homeowners to consider Reverse Mortgage Loans. This type of loan is often as equity against your home, belongings, and so on. The loan offers a ‘cash advance’ solution and requires that the owner does not pay on the mortgage until the end of the mortgage term or when the home is sold.

Most lenders provide a lump sum advance, a line of credit, or else a monthly installment to the homeowners. Some lenders even offer a combination to the homeowners. This is certainly a good solution for repairing your credit and building your credit to a new future. The downside is that Reverse Home Mortgage Loans often are more suitable for the older generation of people that have built equity over the years in their homes. Another disadvantage is that almost all home loans require upfront payments, such as title, insurance, application fees, origination fees, interest, and so on. Therefore, it pays to ask questions and shop around before taking out another loan to repair or build your credit. Fannie Mae Home Keeper Mortgage Programs are one of the many that offer a Reverse Home Mortgage Loan.

Another option for paying off your debts and repairing your credit is to borrow the money from family members or friends. If you have someone that trusts you enough to loan you the money to get out of debt, it is often better than getting a loan. There are several options or questions you must consider before asking family members or friends to loan you the money to build or repair your credit. One of those questions should be obvious. Can these people afford to lend me the money to get out of debt? Are these people kind enough to loan you money without putting high demands on you? Of course, there may be interest involved, but remember they are loaning you money they could be spending on their own bills. Is it possible that you can repay the loan without complicating your situation further? Can I repay these people that loan me the money to free myself of one debt? How long do I have to repay the loan? Make sure there are no extra complications before asking friends or family for money to help get you out of debt.

One of the best solutions for finding a way to repair your credit is searching for the options to make the money yourself. If you have a mortgage payment and struggling each month to make ends meet, you might want to sell your home. Many homeowners go for this option simply because they make more money in the long run. Once they sell their home they are often able to repay their mortgage loan and then take out a loan for another mortgage more affordable. If you decide to sell your home to repair your credit and get out of debt, be sure that you look around for the best possible solutions in order to prevent further complications.

Make sure you know how much is owed on your home before you set a price for resell. If there are any repairs that are minor or major, try to repair them first before selling. If you can’t afford to repair the home, try to do the minimal repair so that you can up the price of the home you are selling.