It’s a question that has stumped wise men (with overdrawn credit limits) for generations. Do I file for bankruptcy, or do I get debt consolidation loan and spend ten years paying off my debt?
The simple answer is, if you can do the latter, do it.
Sure, bankruptcy means you don’t owe anything to anyone (well, sometimes it means you need to sell your assets, but more often than not you’re starting afresh), but it also means a big fat black mark on your record that will never go away (despite what some people say about seven years being a magic slate cleaner).
Bankruptcy marks you as a bad risk for every potential lender. Mortgage lenders, credit card companies, employers – they all see that credit history and get the same furrowed brow.
And even worse, the Bush administration has chosen to pass laws that mean, now, if you go bankrupt owing money to a credit card company, they can take your family home.
Yes, that’s right, the government has made it law that, unlike big businessmen who can go bankrupt every second year without penalty, normal people like you can have your family home taken off you just because you couldn’t keep up with your MBNA payments.
Of course, the credit card companies were behind the bill, and spent millions on Congressmen and Senators to ensure it passed without too much debate, and millions of Americans who look at their debt and think, “Well, I can always go bankrupt”, have no idea that if they do, they’ll genuinely lose everything they have.
Which leaves us with the other option – debt consolidation.
Debt consolidation is when you gather all the debts you owe, pool them into one amount, and borrow that amount from a bank or other financial institution, to be repaid over a long period of time, at a set (and low) interest rate.
It means that everything you owe to Sears and Best Buy and MBNA and Citicard is suddenly paid off, and all you owe is one long-term debt to a stable, secure, eager to help you stay afloat bank.
Think about it – why carry six debts that all need to be repaid in the short term, when you can have one debt that doesn’t have to be completely repaid for years? It just makes sense.
About the Author
For a Free 7 Part Guide to Debt Consolidation Help please visit http://www.homehammer.com. Also read over 3000 Home Improvement Article and Advertise your Home Improvement Business for Free. Find your Debt Consolidation Solution.
Wednesday, May 2, 2007
Tuesday, May 1, 2007
Having Bad Credit? Don’t Worry! We’re here to help!
There is a myth in our society that persons who have filed bankruptcy or developed bad credit will not be able to obtain a credit card, car loan or home mortgage. This myth of bad credit grew out of truths in earlier decades or still it exists through inaccurate threats spread by non-worthy credit collectors. But the fact is, even if you have the worst credit or even after the immediate day of bankruptcy, a particular person has still chances of getting a credit card, a car loan or a home mortgage loan.
Person with bad credit should keep in mind that the doors to the world of credit are still open for them but they will be at different place, compared with good credit individuals. This experience of bad credit will differ to the extent of their problems. Some problems will affect all bad credit borrowers but fluctuates in severity. As the interest rate is higher compared to other mortgage loans, some people are not ready to understand the concept or the rates might surprise them. The criteria of calculating bad credit mortgage rate include computation of general rate of interest nationwide after the completion of the loan and exact risk of the particular loan.
Usually the prevailing rate of interest of bad credit mortgage in US is uttered as the prime rate, which might be charged by the lenders to their precious customers. As there is big competition in rates, it benefits the customers by getting the prime rates or the fluctuation might be within a half a point or less. One can easily find out the current prime rates through Internet or in any financial publications. The process of getting bad credit mortgages is easy and less time consuming compared with other mortgage loans.
A risk factor is involved in unsecured personal loan that will force the lender to increase the rate of interest up to some extend. By considering all these factors, bad credit mortgage loan is introduced. If you keep yourself in the position of lender, without hesitating you will wish to grant loan to the person have good credit records rather than giving to the individual having bad credit or even bankruptcy. So lenders deserves some sort of incentive which they get in terms of high interest rates, as there is always possibility of risk involved in granting bad credit mortgage loan. Those who have worst of the worst credit might have less chances of getting such high-risk loans.
There are also benefits of bad credit mortgage loans.
1. You can always get a chance of paying off your credit by opting a bad credit mortgage loan.
2. You can get rid of pressuring calls of creditors.
3. Bad credit mortgage gives you an opportunity to live without any tension by making you free from repayment.
4. If you are in need of urgent cash than the best way out is bad credit mortgage loans. It also relives by furnishing what you need for home improvements, back child support, late payments and much more.
5. By opting bad credit mortgage you can get relief from bankruptcy.
Mortgageloan.com understands all the tragedies that can be occurred to you. Life keeps on moving and any unexpected expense can easily get you off the track. A sick child, late bills etc. can make you to suffer from your credit. That’s why we are specialized in bad credit home mortgage loans. Only for one reason of having bad credit doesn’t mean that you should miss out the opportunities given to everyone else. You can always convert your bad credit into good by opting bad credit loans for paying off the debt.
About the Author
KJ specializes in helping homeowners receive competitive home loan quotes.
For a free Mortgage Refinancing Advice and Quotes and to find the best mortgage rates visit www.homeandfamilybills.com
Person with bad credit should keep in mind that the doors to the world of credit are still open for them but they will be at different place, compared with good credit individuals. This experience of bad credit will differ to the extent of their problems. Some problems will affect all bad credit borrowers but fluctuates in severity. As the interest rate is higher compared to other mortgage loans, some people are not ready to understand the concept or the rates might surprise them. The criteria of calculating bad credit mortgage rate include computation of general rate of interest nationwide after the completion of the loan and exact risk of the particular loan.
Usually the prevailing rate of interest of bad credit mortgage in US is uttered as the prime rate, which might be charged by the lenders to their precious customers. As there is big competition in rates, it benefits the customers by getting the prime rates or the fluctuation might be within a half a point or less. One can easily find out the current prime rates through Internet or in any financial publications. The process of getting bad credit mortgages is easy and less time consuming compared with other mortgage loans.
A risk factor is involved in unsecured personal loan that will force the lender to increase the rate of interest up to some extend. By considering all these factors, bad credit mortgage loan is introduced. If you keep yourself in the position of lender, without hesitating you will wish to grant loan to the person have good credit records rather than giving to the individual having bad credit or even bankruptcy. So lenders deserves some sort of incentive which they get in terms of high interest rates, as there is always possibility of risk involved in granting bad credit mortgage loan. Those who have worst of the worst credit might have less chances of getting such high-risk loans.
There are also benefits of bad credit mortgage loans.
1. You can always get a chance of paying off your credit by opting a bad credit mortgage loan.
2. You can get rid of pressuring calls of creditors.
3. Bad credit mortgage gives you an opportunity to live without any tension by making you free from repayment.
4. If you are in need of urgent cash than the best way out is bad credit mortgage loans. It also relives by furnishing what you need for home improvements, back child support, late payments and much more.
5. By opting bad credit mortgage you can get relief from bankruptcy.
Mortgageloan.com understands all the tragedies that can be occurred to you. Life keeps on moving and any unexpected expense can easily get you off the track. A sick child, late bills etc. can make you to suffer from your credit. That’s why we are specialized in bad credit home mortgage loans. Only for one reason of having bad credit doesn’t mean that you should miss out the opportunities given to everyone else. You can always convert your bad credit into good by opting bad credit loans for paying off the debt.
About the Author
KJ specializes in helping homeowners receive competitive home loan quotes.
For a free Mortgage Refinancing Advice and Quotes and to find the best mortgage rates visit www.homeandfamilybills.com
The Pros And Cons Of Credit Card Debt Settlement
Are you a self-confessed shopaholic who buys anything and everything that you get your shopping addicted hands on? Such thoughtless and impulsive buying will most likely result in the accumulation of a bunch of junk that will simply collect dust. Can you even remember that silk scarf you just had to have and since it was a virtual steal at 50% off you just had to buy it? Where is it now and how many times have you actually worn it? Is it still fashionable?
If you're like most people, chances are you'll have to rummage through bins and bins of collected shopping "litter" which you've accumulated through the years, just to be able to see that once precious scarf. You may still be in a state of denial by saying "Fashion goes round and round and that scarf will have its shining moment once again."
Unfortunately, many people fall into this mode of impulsive buying that they really can't afford and before they realize it they become saddled with debt. If you fall into this category, you'll soon need to learn a thing or two about debt settlement which can assist you in extracting yourself out of that self-imposed state of financial trauma and begin to start rebuilding your life bit by bit. And the time to start is now! Of course, you have to be honest with yourself, admit that you've got a serious debt problem and then humble yourself enough to seek the help you need to pull yourself out of this devastating ordeal.
First things first, a lot of people may actually think that they only have a few choices when it comes to solving their debt problems. The two most common options for those who are burdened with enormous amounts of debt are either to consider declaring bankruptcy or debt consolidation. Unfortunately, if you take the easy way out by declaring bankruptcy, it will leave an embarrassing and indelible mark on your credit report for up to 7 years, which will result in higher interest rates, less credit and if you try do qualify for a mortgage (some lenders do give loans immediately after bankruptcy) you will most likely not be able to get a loan to cover 100% of the financing you need. Normally, an 80% first mortgage and if you can get a second mortgage, it will be at much higher interest rate and probably only 10% of the loan value for a total of 90% of the loan to value and you'll have to come up with 10% down.
Clearly, everything will come with a higher price for a period of time but you'll have to weigh that with a straight debt consolidation solution in which you pay off your debt. However, in many cases you can negotiate with the collection agency and it's realistic to get 25% - 50% of the debt forgiven, if you can show that you'll continue to make monthly payments until the remainder is paid off.
Many of the debt settlement / debt consolidation companies were actually established by the credit card companies themselves. Why, you ask... because it only makes sense for the credit card companies to help you pay off your debt because they can either forgive some of the debt or reduce the interest rates, lower the monthly minimum payment requirements or some combination and get paid a portion of the money owed or receive nothing if you declare bankruptcy. What would you do if you were in their shoes? The answer is obvious. This is why a lot of people who have been saddled with debt are now being offered debt settlement. Of course, not all debt consolidation service companies are owned by credit card companies but many are.
Some groups offer debt settlement programs through arbitration. The "selling point" when it comes to these kinds of solutions is that debt settlement will actually help end your debt problems, without having to go through declaring bankruptcy, without having to pay overcharged debt consolidation program fees as well as helping you avoid getting caught in the debt consolidation trap that a lot of people have fallen victim to.
In many cases, what the organizations do that offer debt settlement services is negotiate your debt down with the collection agencies that have been given your case. I would encourage you to contact a number of companies to ensure you feel comfortable and that you are working with a quality company that doesn't over-charge you for their services.
On the other hand, if you would really like to save money, which only makes sense since you are already heavily in debt... then negotiate with the collection agency yourself. It's not difficult, rather than getting upset when you get called night after night simply tell the collection agency rep that you would like to pay off your debt but you can only do it if you can get it reduced and then ask them that you would like to get the debt you owe reduced by 50% - 60%, even 75% and ask them to see what they can do. Ask for a lot up front because as in any negotiation there's always a give and take. Believe me, they will go to work for you and your offer will be seriously considered because they only get paid when they collect and it's better to get their percentage on a smaller amount than "diddly squat" on the full amount.
Of course, you'll have to decide what route you want to take... bankruptcy versus debt settlement but shop around and realize that you do have options. The internet is full of companies offering their bankruptcy or debt settlement services, but be careful and don't let them push you around and never work with anyone you don't feel 100 percent comfortable with.
About the Author
Kevin Erickson is a contributing writer to the following websites: http://www.aneyeondebt.com/and http://www.debtmergeresources.com/.This article may be reproduced only in its entirety.
If you're like most people, chances are you'll have to rummage through bins and bins of collected shopping "litter" which you've accumulated through the years, just to be able to see that once precious scarf. You may still be in a state of denial by saying "Fashion goes round and round and that scarf will have its shining moment once again."
Unfortunately, many people fall into this mode of impulsive buying that they really can't afford and before they realize it they become saddled with debt. If you fall into this category, you'll soon need to learn a thing or two about debt settlement which can assist you in extracting yourself out of that self-imposed state of financial trauma and begin to start rebuilding your life bit by bit. And the time to start is now! Of course, you have to be honest with yourself, admit that you've got a serious debt problem and then humble yourself enough to seek the help you need to pull yourself out of this devastating ordeal.
First things first, a lot of people may actually think that they only have a few choices when it comes to solving their debt problems. The two most common options for those who are burdened with enormous amounts of debt are either to consider declaring bankruptcy or debt consolidation. Unfortunately, if you take the easy way out by declaring bankruptcy, it will leave an embarrassing and indelible mark on your credit report for up to 7 years, which will result in higher interest rates, less credit and if you try do qualify for a mortgage (some lenders do give loans immediately after bankruptcy) you will most likely not be able to get a loan to cover 100% of the financing you need. Normally, an 80% first mortgage and if you can get a second mortgage, it will be at much higher interest rate and probably only 10% of the loan value for a total of 90% of the loan to value and you'll have to come up with 10% down.
Clearly, everything will come with a higher price for a period of time but you'll have to weigh that with a straight debt consolidation solution in which you pay off your debt. However, in many cases you can negotiate with the collection agency and it's realistic to get 25% - 50% of the debt forgiven, if you can show that you'll continue to make monthly payments until the remainder is paid off.
Many of the debt settlement / debt consolidation companies were actually established by the credit card companies themselves. Why, you ask... because it only makes sense for the credit card companies to help you pay off your debt because they can either forgive some of the debt or reduce the interest rates, lower the monthly minimum payment requirements or some combination and get paid a portion of the money owed or receive nothing if you declare bankruptcy. What would you do if you were in their shoes? The answer is obvious. This is why a lot of people who have been saddled with debt are now being offered debt settlement. Of course, not all debt consolidation service companies are owned by credit card companies but many are.
Some groups offer debt settlement programs through arbitration. The "selling point" when it comes to these kinds of solutions is that debt settlement will actually help end your debt problems, without having to go through declaring bankruptcy, without having to pay overcharged debt consolidation program fees as well as helping you avoid getting caught in the debt consolidation trap that a lot of people have fallen victim to.
In many cases, what the organizations do that offer debt settlement services is negotiate your debt down with the collection agencies that have been given your case. I would encourage you to contact a number of companies to ensure you feel comfortable and that you are working with a quality company that doesn't over-charge you for their services.
On the other hand, if you would really like to save money, which only makes sense since you are already heavily in debt... then negotiate with the collection agency yourself. It's not difficult, rather than getting upset when you get called night after night simply tell the collection agency rep that you would like to pay off your debt but you can only do it if you can get it reduced and then ask them that you would like to get the debt you owe reduced by 50% - 60%, even 75% and ask them to see what they can do. Ask for a lot up front because as in any negotiation there's always a give and take. Believe me, they will go to work for you and your offer will be seriously considered because they only get paid when they collect and it's better to get their percentage on a smaller amount than "diddly squat" on the full amount.
Of course, you'll have to decide what route you want to take... bankruptcy versus debt settlement but shop around and realize that you do have options. The internet is full of companies offering their bankruptcy or debt settlement services, but be careful and don't let them push you around and never work with anyone you don't feel 100 percent comfortable with.
About the Author
Kevin Erickson is a contributing writer to the following websites: http://www.aneyeondebt.com/and http://www.debtmergeresources.com/.This article may be reproduced only in its entirety.
The Ins and Outs of Credit Card Debt Settlement
Are you a self-confessed shopaholic who buys anything and everything that you get your shopping addicted hands on? Such thoughtless and impulsive buying will most likely result in the accumulation of a bunch of junk that will simply collect dust. Can you even remember that silk scarf you just had to have and since it was a virtual steal at 50% off you just had to buy it? Where is it now and how many times have you actually worn it? Is it still fashionable?
If you're like most people, chances are you'll have to rummage through bins and bins of collected shopping "litter" which you've accumulated through the years, just to be able to see that once precious scarf. You may still be in a state of denial by saying "Fashion goes round and round and that scarf will have its shining moment once again."
Unfortunately, many people fall into this mode of impulsive buying that they really can't afford and before they realize it they become saddled with debt. If you fall into this category, you'll soon need to learn a thing or two about debt settlement which can assist you in extracting yourself out of that self-imposed state of financial trauma and begin to start rebuilding your life bit by bit. And the time to start is now! Of course, you have to be honest with yourself, admit that you've got a serious debt problem and then humble yourself enough to seek the help you need to pull yourself out of this devastating ordeal.
First things first, a lot of people may actually think that they only have a few choices when it comes to solving their debt problems. The two most common options for those who are burdened with enormous amounts of debt are either to consider declaring bankruptcy or debt consolidation. Unfortunately, if you take the easy way out by declaring bankruptcy, it will leave an embarrassing and indelible mark on your credit report for up to 7 years, which will result in higher interest rates, less credit and if you try do qualify for a mortgage (some lenders do give loans immediately after bankruptcy) you will most likely not be able to get a loan to cover 100% of the financing you need. Normally, an 80% first mortgage and if you can get a second mortgage, it will be at much higher interest rate and probably only 10% of the loan value for a total of 90% of the loan to value and you'll have to come up with 10% down.
Clearly, everything will come with a higher price for a period of time but you'll have to weigh that with a straight debt consolidation solution in which you pay off your debt. However, in many cases you can negotiate with the collection agency and it's realistic to get 25% - 50% of the debt forgiven, if you can show that you'll continue to make monthly payments until the remainder is paid off.
Many of the debt settlement / debt consolidation companies were actually established by the credit card companies themselves. Why, you ask... because it only makes sense for the credit card companies to help you pay off your debt because they can either forgive some of the debt or reduce the interest rates, lower the monthly minimum payment requirements or some combination and get paid a portion of the money owed or receive nothing if you declare bankruptcy. What would you do if you were in their shoes? The answer is obvious. This is why a lot of people who have been saddled with debt are now being offered debt settlement. Of course, not all debt consolidation service companies are owned by credit card companies but many are.
Some groups offer debt settlement programs through arbitration. The "selling point" when it comes to these kinds of solutions is that debt settlement will actually help end your debt problems, without having to go through declaring bankruptcy, without having to pay overcharged debt consolidation program fees as well as helping you avoid getting caught in the debt consolidation trap that a lot of people have fallen victim to.
In many cases, what the organizations do that offer debt settlement services is negotiate your debt down with the collection agencies that have been given your case. I would encourage you to contact a number of companies to ensure you feel comfortable and that you are working with a quality company that doesn't over-charge you for their services.
On the other hand,if you would really like to save money, which only makes sense since you are already heavily in debt... then negotiate with the collection agency yourself. It's not difficult, rather than getting upset when you get called night after night simply tell the collection agency rep that you would like to pay off your debt but you can only do it if you can get it reduced and then ask them that you would like to get the debt you owe reduced by 50% - 60%, even 75% and ask them to see what they can do. Ask for a lot up front because as in any negotiation there's always a give and take. Believe me, they will go to work for you and your offer will be seriously considered because they only get paid when they collect and it's better to get their percentage on a smaller amount than "diddly squat" on the full amount.
Of course, you'll have to decide what route you want to take... bankruptcy versus debt settlement but shop around and realize that you do have options. The internet is full of companies offering their bankruptcy or debt settlement services, but be careful and don't let them push you around and never work with anyone you don't feel 100 percent comfortable with.
About the Author
Kevin Erickson is a contributing writer to the following websites: http://www.aneyeondebt.com/and http://www.debtmergeresources.com/.This article may be reproduced only in its entirety.
If you're like most people, chances are you'll have to rummage through bins and bins of collected shopping "litter" which you've accumulated through the years, just to be able to see that once precious scarf. You may still be in a state of denial by saying "Fashion goes round and round and that scarf will have its shining moment once again."
Unfortunately, many people fall into this mode of impulsive buying that they really can't afford and before they realize it they become saddled with debt. If you fall into this category, you'll soon need to learn a thing or two about debt settlement which can assist you in extracting yourself out of that self-imposed state of financial trauma and begin to start rebuilding your life bit by bit. And the time to start is now! Of course, you have to be honest with yourself, admit that you've got a serious debt problem and then humble yourself enough to seek the help you need to pull yourself out of this devastating ordeal.
First things first, a lot of people may actually think that they only have a few choices when it comes to solving their debt problems. The two most common options for those who are burdened with enormous amounts of debt are either to consider declaring bankruptcy or debt consolidation. Unfortunately, if you take the easy way out by declaring bankruptcy, it will leave an embarrassing and indelible mark on your credit report for up to 7 years, which will result in higher interest rates, less credit and if you try do qualify for a mortgage (some lenders do give loans immediately after bankruptcy) you will most likely not be able to get a loan to cover 100% of the financing you need. Normally, an 80% first mortgage and if you can get a second mortgage, it will be at much higher interest rate and probably only 10% of the loan value for a total of 90% of the loan to value and you'll have to come up with 10% down.
Clearly, everything will come with a higher price for a period of time but you'll have to weigh that with a straight debt consolidation solution in which you pay off your debt. However, in many cases you can negotiate with the collection agency and it's realistic to get 25% - 50% of the debt forgiven, if you can show that you'll continue to make monthly payments until the remainder is paid off.
Many of the debt settlement / debt consolidation companies were actually established by the credit card companies themselves. Why, you ask... because it only makes sense for the credit card companies to help you pay off your debt because they can either forgive some of the debt or reduce the interest rates, lower the monthly minimum payment requirements or some combination and get paid a portion of the money owed or receive nothing if you declare bankruptcy. What would you do if you were in their shoes? The answer is obvious. This is why a lot of people who have been saddled with debt are now being offered debt settlement. Of course, not all debt consolidation service companies are owned by credit card companies but many are.
Some groups offer debt settlement programs through arbitration. The "selling point" when it comes to these kinds of solutions is that debt settlement will actually help end your debt problems, without having to go through declaring bankruptcy, without having to pay overcharged debt consolidation program fees as well as helping you avoid getting caught in the debt consolidation trap that a lot of people have fallen victim to.
In many cases, what the organizations do that offer debt settlement services is negotiate your debt down with the collection agencies that have been given your case. I would encourage you to contact a number of companies to ensure you feel comfortable and that you are working with a quality company that doesn't over-charge you for their services.
On the other hand,if you would really like to save money, which only makes sense since you are already heavily in debt... then negotiate with the collection agency yourself. It's not difficult, rather than getting upset when you get called night after night simply tell the collection agency rep that you would like to pay off your debt but you can only do it if you can get it reduced and then ask them that you would like to get the debt you owe reduced by 50% - 60%, even 75% and ask them to see what they can do. Ask for a lot up front because as in any negotiation there's always a give and take. Believe me, they will go to work for you and your offer will be seriously considered because they only get paid when they collect and it's better to get their percentage on a smaller amount than "diddly squat" on the full amount.
Of course, you'll have to decide what route you want to take... bankruptcy versus debt settlement but shop around and realize that you do have options. The internet is full of companies offering their bankruptcy or debt settlement services, but be careful and don't let them push you around and never work with anyone you don't feel 100 percent comfortable with.
About the Author
Kevin Erickson is a contributing writer to the following websites: http://www.aneyeondebt.com/and http://www.debtmergeresources.com/.This article may be reproduced only in its entirety.
Saturday, April 28, 2007
Payday Loans Or Cash Advance Loans - Useful After A Bankruptcy
Payday loans, also known as cash advance, are a useful tool after bankruptcy. By keeping current on your bills through a payday loan, you can rebuild your credit history. The key is to only use these cash advances for emergencies.
Using Payday Loans
Faced with a financial emergency, it is better to apply for a cash advance than skip a bill payment for two reasons. First, after bankruptcy the best thing you can do to rebuild credit is to pay your bills on time. If you are 30 days past due or longer, it will take three years for it to be removed from your credit history.
The second reason to use cash advances is to save money on late fees. Often a $30 late fee on an account will be more expensive than the financing fee of a payday loan. The same is often true with loan payments and bank charges.
Find The Right Payday Lender
Shop payday lenders just like you would shop for any type of service. Compare fees and interest rates, as well as, repayment options and customer service.
Consider looking online for a payday lender. Many of these online lenders offer instant approval with no faxing of paperwork required. It is also much faster to compare rates and fees of online.
Avoid High Costs
Cash advances are meant to be a short loan until payday. The high costs of payday loans come when people put off repaying these loans and the interest fees add up. Plan to pay back your cash advance on your next payday.
But if you can’t pay your loan back, talk with your payday lender. You can pay just the interest charge for that period or make only a partial principal payment. Above all, you don’t want to skip a payment, which will add up fees quickly.
Plan For Future Emergencies
Once you have gotten through your current financial emergency with a payday loan, start an emergency savings fund. By saving as little as $10 a week, you can have $520 in an account after a year’s time.
Also consider applying for a credit card for emergencies after establishing six months of good credit history.
About the Author
Carrie Reeder is the owner http://www.abcloanguide.com,an informational website about various types of loans. To view our recommended sources for payday or cash advance lenders online, visit this page: http://www.abcloanguide.com/paydayloans.shtml
Using Payday Loans
Faced with a financial emergency, it is better to apply for a cash advance than skip a bill payment for two reasons. First, after bankruptcy the best thing you can do to rebuild credit is to pay your bills on time. If you are 30 days past due or longer, it will take three years for it to be removed from your credit history.
The second reason to use cash advances is to save money on late fees. Often a $30 late fee on an account will be more expensive than the financing fee of a payday loan. The same is often true with loan payments and bank charges.
Find The Right Payday Lender
Shop payday lenders just like you would shop for any type of service. Compare fees and interest rates, as well as, repayment options and customer service.
Consider looking online for a payday lender. Many of these online lenders offer instant approval with no faxing of paperwork required. It is also much faster to compare rates and fees of online.
Avoid High Costs
Cash advances are meant to be a short loan until payday. The high costs of payday loans come when people put off repaying these loans and the interest fees add up. Plan to pay back your cash advance on your next payday.
But if you can’t pay your loan back, talk with your payday lender. You can pay just the interest charge for that period or make only a partial principal payment. Above all, you don’t want to skip a payment, which will add up fees quickly.
Plan For Future Emergencies
Once you have gotten through your current financial emergency with a payday loan, start an emergency savings fund. By saving as little as $10 a week, you can have $520 in an account after a year’s time.
Also consider applying for a credit card for emergencies after establishing six months of good credit history.
About the Author
Carrie Reeder is the owner http://www.abcloanguide.com,an informational website about various types of loans. To view our recommended sources for payday or cash advance lenders online, visit this page: http://www.abcloanguide.com/paydayloans.shtml
Options For Getting Out of Debt
Being burdened with a lot of debts simultaneously maturing can be a harrowing experience. Just thinking about the many sleepless nights spent in absolute anxiety is enough to cast fear upon anyone’s soul. Juggling our finances is hard enough as it is. To do so with the specter of gloom brought about by due and demandable debts could really, and literally, drive us crazy.
There are many factors that would contribute to such a terrifying state. Financial management, without a doubt, is one of them. Financial management does not only entail a wanton neglect of a budget plan and an uncontrollably vicious spending streak. Often, it is caused by lack of proper education in the in sound financial planning.
When we find ourselves in such a financial rut, we try to look for available options that would help us get out of the hole we have dug for ourselves. However, options drastically reduce in number the deeper we get buried in debts.
But this shouldn’t be taken to mean that we don’t have any options to resort to. There are some of them that are still available, and they deserve a closer look if we want to get out of our financial troubles.
There are still a number of options available for you. Let’s take a look at them.
Debt Consolidation
You could decide to merge your existing loans into one debt, though not directly. Through debt consolidation loans, the creditor would pay off your subsisting debt. You will then have just one debt to pay, that of your new creditor.
Debt consolidation is often resorted to for the following reasons:
It would extend the maturity date of your loans under the new consolidated loan.
You would pay a lower interest rate under one loan.
It would be easier to manage a single loan than having to pay off multiple ones every month.
Debt consolidation would not necessarily solve your debts per se, but at least, it would buy you the time that you would need to muster enough resources to settle your obligations. It is still a good option, especially when several debts become due and demandable within the same period.
Securing A Second Loan
Not as direct an option as debt consolidation, you could always apply for a new loan to pay off an existing one. This would be a great approach, not only in prolonging the maturity date of your obligation, but also in paying a lower interest in the event that the new loan has a lower rate than the previous one.
Second loans have always saved a lot of debtors from almost certain disaster. Most loans do not ask for the purpose of your desired borrowings anyway. By applying for a new loan, you’d be able to delay eventual payment, and you’d be able to answer the more pressing needs of your life.
Filing For Bankruptcy
Considered as the court of last resort, you could always file for bankruptcy. You would need to have exhausted all available remedies though, and you must prove to the court that your application is done in good will, meaning you have no intention whatsoever to defraud your creditors. You would also have to establish through preponderance of evidence that you cannot fulfill all your obligations once they have become due and demandable.
Your assets would thereafter be placed under the case of a court-appointed trustee. The said trustee would call all your creditors to an assembly, called a 341 meeting, where your assets would be liquidated and distributed among them, in proportion to their respective claims. The portions of the debts that cannot be fulfilled by your assets would be written as losses for your creditors. After this, your debts would be considered dissolved.
Though declaring bankruptcy has its benefits, it also has its share of disadvantages. Among them is the negative mark it would leave on your credit record, which would adversely affect future loan applications as well as when you’re applying for a job.
Also, you must be reminded that your line of credit may be suspended for at least 2 years. It would take quite some time before you could recover from a state of bankruptcy.
UPDATE: Congress has passed a new Bankruptcy Protection Law that now makes it tougher to file and declare bankruptcy. Make sure you understand how it will affect YOU.
Go to www.1debtfreedom.com for your free no-obligation quote.
About the Author
Talbert Williams offers debt consolidation, debt reduction, credit card debt referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com
There are many factors that would contribute to such a terrifying state. Financial management, without a doubt, is one of them. Financial management does not only entail a wanton neglect of a budget plan and an uncontrollably vicious spending streak. Often, it is caused by lack of proper education in the in sound financial planning.
When we find ourselves in such a financial rut, we try to look for available options that would help us get out of the hole we have dug for ourselves. However, options drastically reduce in number the deeper we get buried in debts.
But this shouldn’t be taken to mean that we don’t have any options to resort to. There are some of them that are still available, and they deserve a closer look if we want to get out of our financial troubles.
There are still a number of options available for you. Let’s take a look at them.
Debt Consolidation
You could decide to merge your existing loans into one debt, though not directly. Through debt consolidation loans, the creditor would pay off your subsisting debt. You will then have just one debt to pay, that of your new creditor.
Debt consolidation is often resorted to for the following reasons:
It would extend the maturity date of your loans under the new consolidated loan.
You would pay a lower interest rate under one loan.
It would be easier to manage a single loan than having to pay off multiple ones every month.
Debt consolidation would not necessarily solve your debts per se, but at least, it would buy you the time that you would need to muster enough resources to settle your obligations. It is still a good option, especially when several debts become due and demandable within the same period.
Securing A Second Loan
Not as direct an option as debt consolidation, you could always apply for a new loan to pay off an existing one. This would be a great approach, not only in prolonging the maturity date of your obligation, but also in paying a lower interest in the event that the new loan has a lower rate than the previous one.
Second loans have always saved a lot of debtors from almost certain disaster. Most loans do not ask for the purpose of your desired borrowings anyway. By applying for a new loan, you’d be able to delay eventual payment, and you’d be able to answer the more pressing needs of your life.
Filing For Bankruptcy
Considered as the court of last resort, you could always file for bankruptcy. You would need to have exhausted all available remedies though, and you must prove to the court that your application is done in good will, meaning you have no intention whatsoever to defraud your creditors. You would also have to establish through preponderance of evidence that you cannot fulfill all your obligations once they have become due and demandable.
Your assets would thereafter be placed under the case of a court-appointed trustee. The said trustee would call all your creditors to an assembly, called a 341 meeting, where your assets would be liquidated and distributed among them, in proportion to their respective claims. The portions of the debts that cannot be fulfilled by your assets would be written as losses for your creditors. After this, your debts would be considered dissolved.
Though declaring bankruptcy has its benefits, it also has its share of disadvantages. Among them is the negative mark it would leave on your credit record, which would adversely affect future loan applications as well as when you’re applying for a job.
Also, you must be reminded that your line of credit may be suspended for at least 2 years. It would take quite some time before you could recover from a state of bankruptcy.
UPDATE: Congress has passed a new Bankruptcy Protection Law that now makes it tougher to file and declare bankruptcy. Make sure you understand how it will affect YOU.
Go to www.1debtfreedom.com for your free no-obligation quote.
About the Author
Talbert Williams offers debt consolidation, debt reduction, credit card debt referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com
Tax Cuts-What Tax Cuts?
Many of the jobs in President Bush's "recovery" are low-wage, low-benefit service and retail jobs. The overall growth in jobs masks a harsher reality for families trying to maintain or build a middle class standard of living.
Key among them: debt coupled with paycheck paralysis.
Most people coming out of college with or without a degree are starting life off with about $20,000 in debt trying to get a degree.
Then they try to support themselves on low wages after getting out of school.
A generation ago finishing high school was what was needed to get a job and to have a reasonable amount of security.
Now what is needed is a university degree and not just any degree, look at all people working in low class jobs with an arts degree.
In the last 30 years compensation for somebody with a university degree has actually decreased when adjusted for inflation.
Personal bankruptcy filings nationwide last year exceeded 2 million, the highest annual level on record.
There were significant increases in consumer bankruptcy filings in every region. The total of 2,043,535 was up 32 percent over the 1,552,967 filed in 2004. That translates to one in every 53 households filing bankruptcy petitions.
So are these 2 million people Scofflaws?
Credit counselors say the debtors coming to their offices can’t afford to pay basic living expenses or make even minimal payments toward their debts.
Corporate profits have reached record highs.
People are working longer for the same or a lesser amount of money.
During the period from November 2003 to March 2004 - when job growth was increasing - average hourly real wages actually fell by 1 percent.
Companies are reducing health care benefits and are declaring bankruptcy to get rid of pension liabilities to their employees.
Yes, but there are Tax Cuts.
Tax Cuts have to be paid for by somebody at some point in time.
If the tax cuts were financed largely or entirely through spending cuts or: if the tax cuts were financed through a combination of spending cuts and progressive tax increases this is what is projected by experts:
The net result seems to be net tax cuts for about 20-25 percent of households, financed by net tax increases or benefit reductions for the remaining 75-80 percent of the population.
So 75% to 80 % of Taxpayers are going to be worse off with tax cuts.
The "losers" are going to be low- and middle-income wage earners.
The trade deficit for last year is estimated to have swollen to another record high, above $700 billion, increasing America's indebtedness to foreigners.
At some point in time these foreigners are going to want their money back.
Then what?
About the Author
J Carter is worried about the economy.
http://www.tax-attorney.biz
http://www.credit-score-now.info
http://www.bankruptcy-credit-cards-debthelpnet.info
Key among them: debt coupled with paycheck paralysis.
Most people coming out of college with or without a degree are starting life off with about $20,000 in debt trying to get a degree.
Then they try to support themselves on low wages after getting out of school.
A generation ago finishing high school was what was needed to get a job and to have a reasonable amount of security.
Now what is needed is a university degree and not just any degree, look at all people working in low class jobs with an arts degree.
In the last 30 years compensation for somebody with a university degree has actually decreased when adjusted for inflation.
Personal bankruptcy filings nationwide last year exceeded 2 million, the highest annual level on record.
There were significant increases in consumer bankruptcy filings in every region. The total of 2,043,535 was up 32 percent over the 1,552,967 filed in 2004. That translates to one in every 53 households filing bankruptcy petitions.
So are these 2 million people Scofflaws?
Credit counselors say the debtors coming to their offices can’t afford to pay basic living expenses or make even minimal payments toward their debts.
Corporate profits have reached record highs.
People are working longer for the same or a lesser amount of money.
During the period from November 2003 to March 2004 - when job growth was increasing - average hourly real wages actually fell by 1 percent.
Companies are reducing health care benefits and are declaring bankruptcy to get rid of pension liabilities to their employees.
Yes, but there are Tax Cuts.
Tax Cuts have to be paid for by somebody at some point in time.
If the tax cuts were financed largely or entirely through spending cuts or: if the tax cuts were financed through a combination of spending cuts and progressive tax increases this is what is projected by experts:
The net result seems to be net tax cuts for about 20-25 percent of households, financed by net tax increases or benefit reductions for the remaining 75-80 percent of the population.
So 75% to 80 % of Taxpayers are going to be worse off with tax cuts.
The "losers" are going to be low- and middle-income wage earners.
The trade deficit for last year is estimated to have swollen to another record high, above $700 billion, increasing America's indebtedness to foreigners.
At some point in time these foreigners are going to want their money back.
Then what?
About the Author
J Carter is worried about the economy.
http://www.tax-attorney.biz
http://www.credit-score-now.info
http://www.bankruptcy-credit-cards-debthelpnet.info
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