Posts Tagged ‘debt relief’
Finding Out The Options For Debt Reduction Is Extremely Smart
Written by admin on February 7, 2010 – 7:53 am -Fortunately for millions of consumers in the US who find themselves strapped with credit card debt there is hope. The majority of debtors don’t understand all of the debt relief methods they have available to them, but there are quite a few. Understanding the differences between these programs will be important to ensuring that you select the smartest plan for your financial struggle.
One of the first things many debtors consider is to obtain a debt consolidation loan. This looks to be an easy road but could in the long run stir more damage than good, if that is you even in position to obtain the loan in the first place. The reason I state it will be difficult to obtain a debt consolidation loan is normally the consumer must offer some type of collateral first, in many cases this will be a piece of real estate. Those individuals that have no collateral must then have incredible credit to get an unsecured loan, and consumers who are trapped in credit card debt often times don’t have decent credit.
If someone does finagle to get a secure loan against your home this can be a bad idea, for the simple fact that you are transforming low risk credit card debt into high risk secured debt against your home. So if you wind up right back in the same position and cannot to make payments on the loan you chance the probability of your home foreclosed on.
Then there is credit counseling, this plan is similar to a debt consolidation loan but without getting the loan. The advantages of this plan are decreased interest rates and one condensed monthly payment. The drawback to this program is it does report adversely to your FICO score and if you fall past due on a few payments you will get booted off the program; thus forfeiting the benefits of a lower APR. In most cases people fail off of this program due to the monthly payments in many cases aren’t much less than the monthly minimums, in certain situations they are even more expensive. So folks who can hardly afford to make payments at this point may not survive the duration of the program.
Debt settlement is another method that has appeard to give the most lucrative results for pained debtors during this dreaded economic collapse. With signing into a debt settlement program the debtor will wind up saving around half of what they owe on their bills. So naturally this will dramatically cut back on the monthly output towards credit card bills, and they will also get out of debt much more rapidly. The only real downside to this program is falling delinquent on the accounts which is necessary to ensure completion of the debt settlement, so the credit history will initially suffer.
The bottom line is no matter what choice is made those who are trapped dealing in debt need to find a way out as soon as they can. Credit card debt is so bad for peoples overall economic well being. Imagine all the money going out to credit cards being smartly invested? What joy will that be to your life? If you remain in credit card debt you may not find out.
Tags: credit card debt, debt reduction, debt relief, debt settlement, finance, get out of debt
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Considering To Enter Bankruptcy? Don’t Go There
Written by admin on January 30, 2010 – 4:36 am -Bankruptcy lawyers - the lousy rats. They and their silly, ridiculous “Ghostbuster” style commercials - “We’re ready to believe you!”. Really, they have no shame. They would have you believe that bankruptcy is the pot of gold at the end of debt rainbow, the light at the end of the debt tunnel, the fairy godmother of your Cinderalla in debt tale.
Puh-lease.
Bankruptcy is akin to personal financial suicide. It destroys one’s credit and credit worthiness. It causes more damage than 2 sumo wrestlers going toe to toe in a crystal vase shop. What a sight that would be on the evening news.
Rather than promoting bankruptcy, I would like to make you aware of bankruptcy alternatives. These are debt relief programs that get rid of debt like gangbusters. Credit card debt is what it is - a fact of everyday life. Unless you prefer to keep a stash of dollar bills under your mattress or in a shoe box buried in your backyard, chances are you have a credit card and some amount of credit card debt.
Avoid bankruptcy - this is what we should be trying to do at all costs. So let’s discuss here in digital print why. As we mentioned, your credit score - you can kiss it bye bye if you file for bankruptcy. You can also expect the stain of a bankruptcy filing to stay on your credit record longer than a glass of merlot spilled on a white bear rug.
If you have the need to order new home utility service in the future such as gas, electric, water, internet, cable, phone - you can expect to be required to pay hefty deposits in order to get that service.
Thinking about renting an apartment? Think again. You will be denied based on your bankruptcy filing and your pitiful credit score. Folks, your average major league pitcher would have a higher batting average than the credit score of a person who files for bankruptcy.
What did that funk song from the 70’s say? … “How Looooow can you go? How Looooow can you go?” You feel me?
Like there is no WAY your credit score could get any lower.
Debt Relief - it doesn’t have to be some John Mellencamp “Hurt So Good” kind of thing. it doesn’t have to cause harm to have some minimal benefit.
The true debt relief programs that help without causi ng harm include debt settlement, debt consolidation & debt consolidation loans, as well as consumer credit counseling.
If you or someone you know are struggling with credit card debt, jump online and research these programs. And never, ever get involved with bankruptcy…
or a bankruptcy lawyer for that matter. But that’s another story.
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What You Need To Know About Store Credit Cards
Written by admin on December 19, 2009 – 12:25 am -
Have you ever signed up at a checkout counter to save 15% on your purchase? It may have felt like a good idea at the time, but chances are that after you read the fine print of your in-store credit card, the 15% you saved on that sweater really won’t feel like that good of a deal anymore.
This guide will tell you how you should use any store credit cards you’re already got sitting in your purse or wallet.
Use it at the store
This rule probably doesn’t need to be said, because most store credit cards can only be used in one place anyway. Just be sure to remember you have the card whenever you go shopping at that store. Nothing is worse than buying something with cash or your regular card out of habit only to remember later that you could have received a discount with your store card.
Make sure you can pay it off immediately
One of the tricks to in-store credit cards is that they can dupe you into thinking you’re getting a deal. The advertised 15% savings can look like a lot, but you might actually be paying more with your card’s high interest rate. Rates can get pretty high with store credit cards, so try and pay off any bills in full and on time to avoid any costly interest payments.
Watch what you spend
Store credit cards have notoriously low credit limits, so you’ll need to be careful how much you’re spending. Normally limits on these cards never go much higher than $500, so if you’re a big spender, you might want to consider using another form of payment, It doesn’t look good on a credit report to use more than 35% of your available credit at any time, so even if your purchase won’t exceed your store card’s limit, you still might want to pursue other methods of payment.
Don’t sign up for any more
Both closing credit accounts and opening new ones can negatively affect your credit score. So because you’ve already opened your store credit card, you’ll probably be better off leaving it on than closing it. Just remember to keep up with payments and don’t sign up for any more cards in the checkout line – they’re never as good a deal as they seem.
If you or someone you know is struggling with credit card debt, fear not. Debt relief help is out there. There are a great many bankruptcy alternatives in existence today.
Tags: bankruptcy, bankruptcy alternatives, Credit Card, credit card debt, Credit Cards, debt relief, debt settlement, store credit cards
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