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Debt Consolidation Plus Consumer Counseling Benefits

Debt Consolidation Plus Consumer Counseling Benefits

Consumer counseling has many benefits that are often taken for granted. Know that credit card debt consolidation is not a difficult process. It involves combining all of your outstanding balances into one debt to be paid by only one monthly payment. After you have contacted a debt consolidation company, they will pay off your outstanding balances. You will pay one single payment each month at a lower interest rate. This is a great option for those individuals seeking to save money on interest, improve their financial situation, repair their credit, or simply put into action a credit card debt settlement plan.

In addition to the consumer counseling benefits above, you will also have access to professionals in consumer counseling who can give you advice on budgeting and managing your finances.

The following are some factors to consider when choosing a debt consolidation plan for your existing debt:

• Interest Rate. You should try to lower the interest rate for the consolidation loan in order to most efficiently settle the debt and maximize the benefits of the consolidation. Since the loan will be a long-term loan, a reduced interest rate will result in a significant amount of savings. Note, though, that the interest rate is often associated with your credit score. The higher the credit score, the lower the interest rates you will receive as the consolidation company will have greater faith in your ability to repay the loan.

• Tenure of the loan. There is a strong relationship between the length of the payments to be made on the consolidation loan and the ultimate amount you will pay on that loan. Do not move too quickly on accepting a low installment alone. With that, you must consider whether the term of the loan results in the consolidation costing too much in the end.

• Amount of installment. Typically, any loans you take out will be a secured loan against your home which opens to the possibility of repossession of your home should you default on the consolidation loan. This is why it is very important to commit to a loan that is manageable within your budget not only in the short-term but also in the long-term. If it is not, avoid committing no matter how favorable the loan terms or payments may be.

If you are paying extremely high-interest rates on your credit cards, you should consider the option of consolidating your balances into one loan and one single payment. This could be the solution to your debt problem, providing you with a more manageable single payment with a lower interest rate and favorable terms.

Don’t Despair With Credit Score Repair

Don’t Despair With Credit Score Repair

Just because you have a poor credit report doesn’t mean you won’t be able to get credit. Creditors set their own credit-granting standards and not all of them look at your credit history the same way. Thankfully, credit score repair is available to give you hope.

Some creditors may look only at more recent years to evaluate you for credit, and they may grant credit if your bill-paying history has improved. It may be worthwhile to contact creditors informally to discuss their credit standards.

If you’re not disciplined enough to create a workable budget and stick to it, work out a repayment plan with your creditors, or keep track of mounting bills, consider contacting a credit counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But not all are reputable. For example, just because an organization says it’s a “nonprofit,” there’s no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees or hide their fees by pressuring consumers to make “voluntary” contributions that only cause more debt.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

If you are considering filing for bankruptcy, you should know about one major change to the bankruptcy laws: As of October 17, 2005, you must get credit counseling from a government-approved organization within six months before you file for bankruptcy relief. You can find a state-by-state list of government-approved organizations at the website of the U.S. Trustee Program, the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees.

Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, credit score repair, money and debt management, and budgeting.

Counselors discuss your entire financial situation with you and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.

Consolidating your debt, paying your bills on time, cutting on the frivolous expenses, and preparing a budget for your discretionary income will help you overcome the mountain of credit card debt.

It may look bleak – even impossible – but if you stick to your plan, you will be able to dig yourself out of this hole.

Don’t Pay Extra For Debt Relief Consolidation

Don’t Pay Extra For Debt Relief Consolidation

If you have a high balance of outstanding debt, you may want to consider debt consolidation. By using debt consolidation services, you can reduce your interest rate, the amount you are repaying, and ultimately reduce the stress caused by this debt. The choice is yours, though. You can choose debt relief consolidation services that are either “for-profit” or “free”. For-profit services usually charge a flat monthly fee but with other charges applied beyond that flat fee On the other hand, free consolidation services are associated with creditors and therefore only charge the flat fee per month. This, obviously, saves the debtor money in the end. He or she is, in fact, trying to reduce their debt and incur additional unnecessary expenses when alternatives are available.

A benefit to free debt consolidation companies is that their services go far beyond just the consolidation of credit cards and debt loans. The subsidies they receive from their supporting creditors give them more freedom to more thoroughly help those with poor credit. They are able to afford the risk. This is one reason why those with poor credit ratings prefer these services over the for-profit consolidation companies. Those with poor credit will benefit from those companies offering education on consumer debt repair. Repairing your credit rating is an important aspect of improving your entire financial future.

In addition to choosing the right company, the actual debt relief consolidation program will also be extremely important in your decision-making, especially for those severely in debt. For individuals in such a situation, accelerated debt consolidation is probably the best consolidation program. The accelerated program is similar to regular consolidation but rather separates the debt into unsecured and secured, only consolidating the unsecured debts. You can get lower rates and a faster repayment plan through accelerated consolidation programs, but the more secured debt you have, the more difficult it will be in obtaining this plan. The most common types of unsecured debt today are personal loans, credit cards, and department store cards. Secured debts involve collateral or an asset to secure the loan such as a house or car.

Whether you choose accelerated or regular debt consolidation, do not underestimate the benefits of a free debt consolidation organization. Not only are you saving money in unnecessary fees, but the services they are able to offer the consumer can also equip you with money management skills to better secure your long-term financial health by eliminating debt and repairing your credit.

Finding Debt Relief with Unsecured Credit Card

Finding Debt Relief with Unsecured Credit Card

Unfortunately, your bad credit is probably keeping you from getting an unsecured credit card. These are cards that are for people with non-damaged credit, simply for the fact that the credit card companies feel as though they can be trusted. Don’t beat yourself up over this, however, because the past is the past and one day soon you will be able to qualify for such a card.

Before even thinking about applying for any more credit cards, then perhaps it’s time to begin to eliminate the credit card debt that you have already. The stress that this debt relief can do for you will not only help you with your credit rating but with your physical well-being as well.

When you are all caught up on your debt management, then you’ll want to shop around for a credit card with the lowest interest rate that you can possibly find. This is good for a multitude of reasons since it saves you money on your monthly interest charges, but it also becomes quite significant when you’re in need of a loan for a couple of hundred dollars. Finding a loan with as low of an interest rate as you can get one for with a lower rate unsecured credit card would prove to be quite a feat.

As well, some of the rewards and benefits that you can receive right along with a low-interest rate can be quite pleasing to most consumers. You’ll want to figure out exactly what you want from a card and shop around. The Internet is a great place to do this shopping as a matter of fact.

One especially good card is the Chase Platinum Card because it has a 0% introductory APR for the first six months, and follows up with no annual fees. The Chase Travel card goes a step further by rewarding card users points as they use their card, which can be used for airfare, cruising, car rentals and hotel stay.

On the subject of car rental, Chase Travel will also reward you five-hundred-thousand-dollars in Worldwide Auto Travel Accident Insurance from Hertz Car Rental Discounts.

Moving onto another great card that you will enjoy is the Discover Platinum Card. This card offers a 0% Introductory APR as well, with no annual fees, and will give you up to 2% Cash Back in Bonus awards. Some can even offer up to 5% in cashback bonus rewards.

Get Approved For A Bad Credit Home Improvement Loan

Get Approved For A Bad Credit Home Improvement Loan

Home improvement projects are wonderful, but can quickly become expensive. There are a number of factors that should be taken into consideration when planning home improvements. In some situations, contracting the services of professionals, buying tools and supplies are necessary for completion. There can be a strong inclination to withdraw from your personal savings for home improvements, especially if there is a large repair involved that is an absolute necessity. This can lead to a strain on a family’s financial security. If this is the case, you might want to try to get approved for a bad credit home improvement loan.

Making home improvements are one way to increase the appraisal value of your house. However, if you have a bad credit history, your chances for loan approval will certainly decrease. Banks and other financial lenders take your credit history into consideration when trying to get approved for any type of home improvement loan. The lower your credit score, the more difficulty you will have in obtaining a home improvement loan.

Even though this is not encouraging news, don’t give up just yet! You may still be able to qualify for some types of bad credit home improvement loans. Lenders do exist that are willing to approve home improvement loans for persons with a bad credit history, however, possessing sufficient equity in your home will likely be a major requirement.

Unfortunately, bad credit home improvement loans have higher interest rates. But there is a bright side because if scheduled loan payments are made on time, the credit rating of the borrower will increase provided there are no other negative factors affecting the credit score. After a period of 12 to 24 months of timely payments, you may be able to refinance your bad credit home improvement loan for a lower interest rate.

Here are some excellent tips on ways to get approved for a bad credit home improvement loan and get the lowest possible interest rate for your current credit score:

1. Research

Take time to research your available options. Knowing your options will be a large help when it comes to finding the lowest possible interest rates on a bad credit home improvement loan.

2. Recommendations

Talk to other people who may have gone through the bad credit home loan approval process. Recommendations from friends or co-workers could save you hours worth of your own research time. You may get information from people who have completed the process that you might not learn otherwise.

3. Multiple Lender Quote Comparison

Always get more than one lender quote. You should compare home improvement loan quotations from no less than three or four lenders before attempting to make a decision.

4. Good Rapport

Contact the lenders with which you think you have the best chance of getting approval for a bad credit home loan. Once a good relationship has been established, lenders may be more likely to give you a lower interest rate.

Improving your credit score as much as possible before you apply for a loan is the best way to get approved for a bad credit home improvement loan. Your bad credit home improvement loan should be seen as an opportunity to both increases the value of your home as well as improve your credit score in the future.

Getting Out of Debt With Credit Counseling

Getting Out of Debt With Credit Counseling

If you are deep in debt and it seems that there is no way out, there is hope. Credit card counseling and/or debt consolidation may be the best solutions to get out of debt. A credit counseling professional can help you establish a plan to fix this problem and help you learn ways to stay out.

Credit counselors will work with you to create a debt management program, which may include consolidation, and they will also educate you on how to avoid the careless spending and lax payments that landed you in debt in the first place. With the help of a credit counselor, it won’t be long before you are transformed into a responsible and reliable consumer.

When you begin a debt management program, your objective is to completely eliminate all of your debt. Therefore, you must do whatever it takes to reach this goal. So don’t be afraid to ask questions and don’t worry about appearing unknowledgeable. The credit counselor is there to help you and answer any questions you may have. So ask plenty of questions, and if you still don’t understand something, simply ask your counselor to explain again.

If your debt management program includes consolidation, be sure to ask about any conditions, such as whether you will be able to continue using your credit cards after the debt is consolidated. Oftentimes, consolidation programs stipulate that you must forfeit the cards once the debt is consolidated. This may or may not be the best decision for you. However, if you really want to resolve this issue once and for all, you may want to consider not racking up any more credit card debt.

Lastly, feel free to do some of your own research. After all, you want to make sure that you are with the right debt counseling company.

Get Your Credit Report and Know Your Credit Options

Get Your Credit Report and Know Your Credit Options

It is very important to get your credit report and analysis. Why is this important? For one thing, if you’re thinking about buying a house or looking for credit options for any other big purchase, you’ll need a clean credit report, and it’s always best to get your credit report and analysis before your lender does. This will give you an opportunity to clean up any discrepancies or errors, which are fairly common, and which can throw a monkey wrench in the works if not resolved.

Ideally, you should get your credit report and analysis once a year with each of the three credit bureaus:

You’re entitled by law to get your credit report and analysis for free from each of these three credit bureaus once a year. You can get all three at once or spread them out over the year. If you get your credit report and analysis more frequently than that, each report will cost no more than around $10 and in some states considerably less.

If you’ve been turned down for credit in the last 60 days because of something a lender saw on your credit report, you can get your credit report and analysis free of charge. Lenders are required by law to notify you of this right if they deny you credit.

When you get your credit report and analysis, review them carefully to make sure all the loans and credit accounts listed really belong to you, and that all the accounts listed as open are actually current loans or balances. If a loan you’ve paid off or a credit card that was canceled is still listed as open, contact the credit bureau and ask for your credit report to be corrected.

What is the Range of Possible FICO Credit Scores and What Do They Mean?

FICO credit scores range between 300 and 850. Ratings are as follows:

  • Excellent: Over 750
  • Very Good: 720 or more
  • Acceptable: 660 to 720
  • Uncertain: 620 to 660
  • Risky: less than 620

How is My FICO Credit Score Calculated?

The formula used to calculate your FICO credit score includes information based on several factors:

  • 35% on your payment history
  • 30% on the amount you currently owe lenders
  • 15% on the length of your credit history
  • 10% on the number of new credit accounts you’ve opened or applied for (fewer is better)
  • 10% on the mix of credit accounts you have (mortgages, credit cards, installment loans, etc.)

Will Your Scores Be Different and What are the Credit Options?

FICO credit scores range from about 300 to 850. It’s important to get your credit report and analysis so you can understand what your FICO score is and you know what credit options might be a great deal. Fair Isaac makes the scores as consistent as possible between the three credit reporting agencies. If your information were exactly identical at all three credit reporting agencies, your scores from all three would be within a few points of each other. But here’s why your FICO scores may in fact be different at the three credit reporting agencies. The way lenders and other businesses report information to the credit reporting agencies sometimes result in different information being in your credit report at the three agencies. The agencies may also report the same information in different ways. Even small differences in the information at the three credit reporting agencies can affect your scores. Since lenders may review your score and credit report from any of the three credit reporting agencies, it’s a good idea to check your credit report from all three and make sure they’re all right.

Usually, when you get your credit report and analysis from the credit bureau it will include a form for reporting any inaccuracies. Give as much detail as possible, and if you have documents that back up your claim, provide copies. By law, the credit bureau must investigate your credit report claim, but even if they decide your credit report is accurate as it stands, you should continue to try to correct the report by writing a letter explaining your side of the story (not to exceed 100 words), which the bureau is required to provide to anyone requesting your credit report.

When deciding whether to approve credit, lenders take the following into consideration:

  • Your payment history–do you pay bills on time?
  • Have you had a bill referred to a collection agency?
  • Have you ever declared bankruptcy?
  • How much debt do you have outstanding compared to your credit limits? The closer your debt is to your credit limit, the less favorable.
  • How long is your credit history? If you haven’t had much of a credit history yet, prompt payments are even more important.
  • Have you applied for more credit lately? Too many applications for credit has a negative impact on your chances for approval.
  • How many credit accounts do you have? Too many are considered negative.

Information is retained in your credit report for up to seven to ten years. When you get your credit report and analysis, if you have negative items in your history, you can gradually repair your credit by consistently paying your bills on time from now on, paying down your balances, and not taking on any new debt. Lenders will take your improved record into consideration when deciding whether to approve credit, especially if you’ve been paying on time for at least a year.

How Consumer Counseling Can Help You Get Out Of Debt

How Consumer Counseling Can Help You Get Out Of Debt

Even the most sensible of us end up borrowing with the idea that we will have no trouble paying back what we owe. The monthly payments that looked so easy when you took out the loan can soon become overwhelming and you may find yourself unable to keep up the payments. If you find yourself in this situation you should consider consumer credit counseling. This article will explain how credit counseling works and how to find a good consumer credit counseling company to help you manage your debt.

It is easy to understand how some people can find themselves over their heads in debt when it is so easy to obtain credit. Everyone wants to drive a nicer car and live in a nicer home, and this is usually attainable with easy to get credit. Just don’t forget that everything you borrow has to be paid back, with interest.

Most people start their search online or in the phone book. Try to avoid any company that claims they can clear your debt entirely or repair your credit history within a short time. Entirely avoid any offer of obtaining a new credit identity as this is obviously a claim of a disreputable organization.

Legitimate credit counseling companies have certain criteria that you have to meet before they will take you as a client of theirs. These criteria usually will include you have some income to work with and unsecured debt that you need help managing. Usually, credit counseling companies will not be able to help you manage secured debt such as a mortgage loan or car loan.

For your first meeting with your credit counselor, have available all your financial documents loan statements, bank statements, credit card statements, pay statements, and make a list of all your outstanding debts and the amounts of your minimum monthly payment.

The credit counselor will then begin their work by getting in touch with your creditors and trying to negotiate for you repayment amounts that you can live with. Once these amounts have been agreed upon, the consumer credit counselor will help you develop a budget that you can live with and still pay off your debt.

While you are clearing your debt through the consumer credit counseling service, it is important not to use your credit cards or take on new debt. Remember, this is designed to get your out of debt entirely.

How Debt And Bill Consolidation Work

How Debt And Bill Consolidation Work

Although you probably won’t find anyone who says that want to get heavily into debt, the reality is that many people find themselves in that situation for a variety of reasons, including taking on too many credit cards and personal loans, high medical bills, your children’s or your education expenses and just not paying close enough attention to your personal financial situation. If you find yourself in that situation and are wondering what you should do, you might want to consider a debt or bill consolidation. What is debt consolidation? It is simply that – consolidating all your debt into one payment and taking the hassle out of it so that you can become debt-free and avoid an awful lot of stress in the meantime.

So how do you get started on a bill and debt consolidation plan? The first thing you do is find out exactly how much in debt you are. To do this you will need to collect all of your account statements and write down the name of the creditor, the total amount that you owe that creditor, and the number of your monthly repayments.

The next thing you do is make up a realistic monthly budget. Go over all over your monthly expenditures such as rent or mortgage payments, utility bills, car loans, insurance payments, child care costs, grocery money, and upkeep for your car. Then add in some for miscellaneous expenses such as hair cuts and birthday gifts, things that don’t come up every day. Total it all up and that is the amount of money that it costs you every month to maintain a basic living.

The final part of organizing yourself is to subtract your monthly budget from your take-home pay. The amount left over is the amount that you have available to pay off your creditors each month. Now, this amount is likely to not be enough to make the minimum payments, which is why you need a debt and bill consolidation plan.

Now that your finances are organized and you know exactly what you can afford to pay in debt repayments each month, you need to contact each creditor and negotiate with them a lower payment amount. Most creditors are quite used to this and willing to help you out as long as you are willing to pay them what you can. Obviously, they realize that you can’t give them what you don’t have. Just be straight forward with them – you’ll be surprised at how accommodating they can be!

How To Avoid Credit-Related Scams

How To Avoid Credit-Related Scams

In recent years, our televisions and email inboxes have been inundated with advertisements from companies promising to help consumers improve their credit. Many of these companies offer a quick fix for people who have a high rate of debt or bad credit, and the promises made often seem too good to be true. Many offer extended lines of credit, immediate debt relief, and easy access to cash. Unfortunately, the fact of the matter is that many of these offers are too good to be true, and consumers must read carefully to be aware of possible credit scams and protect themselves from compounding their money troubles.

The Federal Trade Commission (FTC) cautions consumers against many forms of credit scams that consumers face today. Two of the most prevalent scams against consumers include offers for advance-fee loans and credit repair services.

Advance-fee loan scams often target consumers with credit problems or consumers who have difficulty getting credit. In exchange for an up-front fee, these companies guarantee that applicants get the credit they want – usually a credit card or personal loan. Below are some points to keep in mind before responding to ads that promise easy credit regardless of credit history:

Most legitimate lenders will not “guarantee” a loan or credit card before a formal application process is followed, especially if the applicant has bad credit or a bankruptcy. It is an accepted and common practice for reputable lenders to require payment for a credit report or appraisal. A processing or application fee is also an accepted practice. Never give a credit card account number, bank account information, or Social Security number out over the telephone unless the company is familiar and it is explained clearly why the information is necessary.

Credit repair scams are some of the most common credit scams today. They are in ads in newspapers, on television, and on the Internet. Consumers receive fliers in the mail and calls from telemarketers offering easy and immediate credit repair services. Consumers should be very cautious in answering advertisements for these services. The FTC advises consumers to be aware of any credit repair companies that:

  • ask for payment for credit repair services before any services are provided
  • do not advise a consumer of his or her legal rights and what can be done independently by a consumer – for free – to improve credit
  • recommend against contacting a credit bureau directly
  • suggest inventing a “new” credit report by applying for an Employer Identification Number to use instead of a Social Security number; or
  • advise disputing all information on a credit report or taking any action that seems illegal, such as creating a new credit identity. If a consumer follows illegal advice and commits fraud, he or she may be subject to prosecution.

Consumers who feel they may have been a victim of a credit scam such as the two described above should contact their local consumer protection agency, state Attorney General, or Better Business Bureau. For additional information on credit-related scams, or to file a formal complaint against a fraudulent company, visit the Federal Trade Commission’s web site.