Credit Debt Consolidation ? Are We All Sitting On A Time Bomb Waiting To Explode?

OK listen up folks, do you have a mountain of debt on your Credit Cards that would probably put a third world developing nation to shame?

Suddenly does it seem to you and you alone that there is nothing in the classifieds but advertisements from Companies all promising competitive rates on Credit Debt Consolidation?

Are becoming obsessed with hiding the credit card statements before your wife gets to the post in the morning?

You do?

Well don?t be too despondent because it would appear that you are not alone in all of this. Doesn?t this make you feel better? You feel like going out and treating yourself to something new right away!

See, that's the problem. It appears that the average person in the US is about $8,000 to $10,000 in unsecured debt at any one time. Now for a certain part of the population that may or may not be a problem but for the average household it is and the knock on effects of this could be devastating on the economy.

One of the reasons for this mountain of debt, it is argued is the difference between the average wage and the average cost of living, Basic balance of payments issue in Macro economic terms and the gap between monthly income and monthly expenditure in micro economic terms. In summary, ?living la dolce vita!?

Sound familiar? Yes full marks to the guys at the back, we are living beyond our means and sooner or later it is going to catch up with us all big time!

If we take a look at the basic issue at stake here we have a mountain of debt that the average person only services the bare minimum of. So let's look at the basic mathematics. Person A has an income of $40,000 per annum and credit card debt of $10,000 that they clear at the rate of the bare minimum (usually 5% per month) so this roughly equates to $500 per month out of a disposable income of roughly $2,500 per month.

This means that twenty percent of their income goes straight out of the door to service existing debt before they have had a chance to cover the ongoing expenses for the month. Throw into the mix the unexpected hospital visit, pet care expenditure or domestic crisis or automobile problem and before you know it the problems merely increase

You don?t have to be a fiduciary genius to spot the potential flaw in this whole exercise. As a major national charity for the Homeless once said ?we are all a mere 3 missed pay checks from being without a roof over our heads?. OK this may be slightly on the over dramatic side but by studying the information above it is quite easy to see how very easily this could happen.

Financial habits like these are all well and good in days of low interest rate but when the economy starts to cool and the markets react badly then we have to change our ways or go under.

If you are going to do something positive about this then make sure that whatever decision you reach, whatever route you plan to take is the right one for you and one that you see yourself accomplishing in its entirety.

Don?t let this force you into some rash and foolish credit debt consolidation exercise that might cost you more in the long term.

Read More

How To Repair Your Credit After Bankruptcy

You have made the tough but necessary decisions to get your finances in order, and have gone through the Bankruptcy process and now plan on getting your credit back in order. Can you really do it and if so, how do you do it and how long will it take?

If people have had poor actions that have led them down the path of Bankruptcy, all is not lost. Credit repair after Bankruptcy is not only possible, it's critical for the individual to accomplish or they will continue to only tread water. Bankruptcy allows people to have a new fresh start by wiping all of the debt away and begin to project a positive credit history.

One thing you will want to consider is getting a secured credit card and not try to get unsecured credit lines. This is because while your credit score is low, you are likely to get rejected, and this will also show up on your credit history and keep your score low.

You can expect your credit score to rise gradually and get back to normal range within up to ten years. That is if you do not get into more debt trouble and take some steps to improve your score. It may feel unreasonably long, but unfortunately credit is important in today's society and we don't have a lot of control over how our scores are determined. And you can be thankful that your debt has been eliminated by Bankruptcy, so you have a second chance you wouldn't otherwise have.

How To Repair Your Credit After Bankruptcy

Now don't hit your computer screen, but now that you are starting over, it is a great time to get a realistic financial picture, and that includes making a budget. I know, it makes my eyes glaze over, but once I knew where my money was going, I could make my financial goals come true. Without it you will just drift and make no progress.

Next, put some money aside via automatic deposit for emergencies and future planned expenditures like a house, college for your kids and retirement. Then plan your purchases and avoid impulse buys. If you really have a weak moment and buy something unplanned, use cash. Remember, you don't want the suffocating feeling of drowning in debt again.

If impulse buying is a problem, develop a way to stop this type of impulsive buying. One way to develop good spending habits is to wait a day and see if it's still something that's necessary to buy. Many times, just waiting a day changes impulsive spending. Credit repair after Bankruptcy will help people to become stronger financially and less likely to fall into a new credit problem.

Realize that you are more than your purchases. This may sound sort of strange when discussing financial problems, but I think it works. Your deeper happiness and satisfaction has nothing to do with what you own. And even Imelda Marcos was not buried with the hundreds of pairs of shoes she owned. As you find activities that bring true lasting joy, I think you will find that it will not include buying things. You will be spending less, be free from the debt burden of the past, and be repairing your credit after your Bankruptcy.

Read More

A Closer Look at Chapter 7 Bankruptcy Trustee Responsibilities

Chapter 7 of the United States Code provides an order of financial protection which triggers an automatic stay. This means all creditors and collectors are prohibited from pursuing a debtor or debtors property outside of the Bankruptcy proceeding. This is especially important if a foreclosure notice has been issued.
Chapter 7 Bankruptcy is also known as a liquidation proceeding because the Trustee gathers and sells nonexempt assets and then distributes the proceeds to the creditors in accordance with the provisions of the code. Debtors are permitted to retain certain exempt property but all remaining assets are liquidated by the Trustee.
When the petition is filed, the Trustee is appointed by the United States Trustee. This person should be "disinterested" in the case meaning they have no personal or financial ties or interest. Typically, most chapter 7 cases involving individual debtors are "no asset" cases so there will be no distribution to unsecured creditors. If the case appears to be an "asset" case at the outset, unsecured creditors who have claims against the debtor must file their claims with the clerk of court within 90 days after the first date set for the meeting of creditors.
The primary role of a chapter 7 Bankruptcy trustee in an "asset" case is to liquidate your non-exempt assets in a manner that maximizes the return to your unsecured creditors. To accomplish this, the trustee attempts to liquidate your non-exempt property, i.e., property that you own free and clear of liens and the property which has market value above the amount of any security interest or lien and any exemption that you hold in the property.
Although secured creditors are not required to file proofs of claim in chapter 7 cases in order to preserve their security interests or liens, there may be circumstances when it is desirable to do so. A creditor in a chapter 7 case who has a lien on property should consult an attorney for advice.
Their avoiding powers include:
The power to set aside preferential transfers made to creditors within 90 days before the power to undo security interests and other pre-petition transfers of property that were not properly perfected under different law at the time of the power to pursue claims that may not have been included such as fraudulent conveyance and bulk transfer remedies available under state law.
In addition, if you own a business and file for Bankruptcy protection, the court may authorize the trustee to operate your business for a limited period of time, but only if such operation will benefit the creditors of the estate and enhance the liquidation of the estate.

Read More

Bankruptcy Options In Utah

Utah Chapter 7 BankruptcyYou hear the term in Utah, Chapter 7 Bankruptcy, you cringe. Why? Because it feels like a label placed upon those who have financially failed. Bad luck, bad decisions, it doesn't really matter to something in your mind: Chapter 7 Bankruptcy is for those who cannot pay their debts. Francis Ford CoppolaM.C. Don JohnsonDow Corning CorporationLoews Cineplex Entertainment, Am CorporationThat's why many seek to find professionals who actually know and understand what you're going through. not just the process, but those who understand your life and can hand hold you through the entire process.Doing it yourself will allow you to pay the least in fees. However, it can be risky unless you understand the system, especially in your area. Do you want to take the chance of missing a document or improperly submit the documents and have to start over?A much better alternative than going it alone is hiring a paralegal who knows the Bankruptcy system. Not all paralegals will have htis ability, just as lawyers vary in areas of specialized law. However, a paralegal can give you a great degree of security if they have even a minimum amount of experience in the paperwork. The traditional path people use, is of course a lawyer. They understand what needs to be done in what order, making sure all paperwork is sent in on time and complete.However, lawyers also come with the two largest negatives: cost and was 'get me the papers I need, pay my bill and get the hell out of my way' mentality. Never in my dealings has another human made me feel like the scum of to think, I came to him for help and ended up paying him $3600 to be treated like crap!" The last method has quickly increased in popularity, which is to use a Bankruptcy Document Preparer service. An industry created after federal law enacted by President Bill Clinton, Bankruptcy Document Preparers were created to save people time and money while providing a level of security during the Bankruptcy process. In Utah Chapter 7 Bankruptcy has become an easier system to deal with, now that these powerful services are available. However, under no circumstances can a BDP give you legal advice. They do exactly as their title suggests: paperwork, though with a significant twist.
The countries top Bankruptcy Document Preparer, Clean Slate Bankruptcies is a prime example of the niche industry, setting the bar for performance and specializing in Utah Chapter 7 Bankruptcy. So even if you never end up as a client of Clean Slate Bankruptcies, during a free consultation they can direct you to the best legal minds who will provide you with a positive, non-typical legal experience."Clean Slate Bankruptcies wasn't what I thought it would be. We were completely blown away! We came from a lawyers consultation and were discouraged by his cold attitude, so I decided to call Clean Slate. Their simple checklist made the collection of our information so simple. It took away all the fear."Check with family and friends if they have any experience with a good lawyer. If they have experience with a BDP, ask them how they rate the experience and the process, it may save you a great deal of yourself honestly what type of experience you want to have and whether money is an issue. A Utah Chapter 7 Bankruptcy can make the difference in you immediate future and remove obsticles of serious debt. Are your resources low? Do you want to understand the process and learn about your rights and options? Do you want to hold your head high? Do you want someone to simply make the pain go away?Each choice opens a world of possibilities, measurable risk and various degrees of discomfort.Choose wisely.

Read More

What is The Minimum Debt Required For Bankruptcy?

There is no minimum debt required to file for Bankruptcy. Since Bankruptcy is a consumer protection program, designed to protect all consumers, the amount of debt required to file for Bankruptcy is relative to a person's ability to pay their debts, or relative to the consumer. Folks have successfully filed for Bankruptcy that were in debt for a few thousand dollars and others have filed that were in debt for millions of dollars. Just because a person's debt may seem minimal to most of us, it is the fact that the person can't manage to pay off their debt that is the main deciding factor in Bankruptcy cases.
Low income families that live below the poverty line have just as much trouble paying off their debts as Wall Street investors who made one too many bad decisions. In both of these cases a person may find themselves living paycheck to paycheck and slowly drowning in higher and higher debts. Each case has a very high chance of successfully filing for Bankruptcy.
While it is true that a person will need to have a clear picture of all of their debts before filing for Bankruptcy, no person should worry that they "don't have enough debt" to successfully file.
When filing for Bankruptcy a person will have to show why they don't think they can pay their debts. Common reasons include unemployment, divorce, and extreme family emergencies. For low income individuals, sometimes just emergency car repairs will be enough to push them to the point of considering Bankruptcy.
Even though there is no minimum amount of debt required to file for Bankruptcy, making the decision to file is a rather big decision that should be thought through fully. Never rush in to a Bankruptcy as an easy way out. A person who is thinking of filing for Bankruptcy should do what they can to handle their debts through programs like debt modification or consolidation. On the same note, nobody can make the decision to file for someone else, so, if time is of the essence, or if Bankruptcy is seen as the only last option, it is a step that should be taken no matter what amount of debt a person has. Much like any other program, a Bankruptcy is useless unless a person makes the attempt to use it.
The good thing about the Bankruptcy program not requiring a minimum amount of debt is that the credit system is less likely become inflated by abuse from folks digging themselves deeper and deeper into debt just to make the minimum cut off. Folks can make some pretty rash decisions in moments of desperation, but digging oneself deeper into debt as a strategy of getting out of debt is a decision that is counter productive and can have severe consequences. In the event that a person is approved for Bankruptcy but still required to pay back a portion of their debts, that person will be met with a higher settlement amount as the amount of their debt increases. More debt equals a higher settlement unless a person requests a complete discharge of their debts, not requiring them to pay back any at all.

Read More

The Alternative To Bankruptcy

The amount of money currently owed by people in the UK stands at ?1.43 trillion. This ?personal debt? is at an all-time high, and it's rising.

With the ?credit crunch? and its fallout affecting more and more people's lives, you may be feeling the pinch too. According to Credit Action, a national money education charity, 292 people will be declared insolvent ie unable to pay what they owe, every day in May 2008.

You may think you could be one of them.

But don?t worry. Help is at hand.

If you've got serious debt problems, you may have thought about declaring yourself bankrupt. But did you know there may be more appropriate alternatives. One of the most popular is an Individual Voluntary Arrangement (IVA), because it avoids you being labelled as a bankrupt, and you don?t have to lose your home, which is one of the things that can happen in Bankruptcy.

So what is an IVA?

An IVA is a legally binding contract between the debtor, ie you, and your creditors, ie those you owe money to.

On the plus side, this means that, instead of making payments each month to various creditors, you make one affordable payment, usually over 60 months, to what's known as a licensed Insolvency Practitioner, who arranges and manages IVAs. The moment the arrangement is in place, your creditors have to legally stop adding interest or charges to the money you already owe, and they must also stop demanding any money from you. Any debt that is still outstanding at the end of the IVA is written off by the creditors.

On the negative side, and just like Bankruptcy, an IVA will affect your Credit rating (ie your ability to get loans etc in the future) for up to six years.

So who can get an IVA?

Anyone who is struggling to pay back unsecured debts of ?15,000 or more should consider an IVA. An unsecured debt could be for a store card, bank loan, mobile phone bill, bank overdraft, utility bills (such as gas and electricity), or credit card bills. And if you're self-employed or run a business, Income Tax and VAT can be included in an IVA too.

Another benefit of an IVA is that it doesn?t matter if you own your own home or are a tenant. If you are a homeowner, the good news is that you can protect your home with an IVA, as your mortgage or loan repayment (and any arrears you're paying) is treated separately from your monthly IVA payment.

Please note, however, that you may have to remortgage your home towards the end of the IVA, releasing some of the money tied up in the house to give to creditors.

On a final note, while over the past few years the stigma of Bankruptcy has been reduced due to changes in the law, it is still seen as a harsher choice than an IVA. In addition, those taking the Bankruptcy route are prevented from taking up many professions, such as an accountant or a solicitor to name but a few and can not act as a director of a company. It really does make clear sense to consider an IVA over Bankruptcy, as it lets you avoid the restrictions that bankrupts face.

Whilst we make every effort to ensure this article is as up to date as possible, Accuma cannot be held responsible for changes in legislation or developments in case law since this article was produced and published. Article produced on 24th June 2008.

Read More

Financial Problems Solutions ? An Overview

Individuals in the UK suffering from financial difficulties have a number of options. The best solution available will depend on the particular circumstances of the person in debt. If you are experiencing financial problems you may want to consider the following procedures.

Debt Management Plans

If you find yourself being unable to keep up with your debt repayments then a Debt Management Plan (DMP) can be a good solution. A DMP can particularly be appropriate in cases where your financial problems are temporary, for example, due to a short period of unemployment. With a debt management plan you make an informal agreement to restructure your debt under more favourable terms. There are many specialist debt management companies operating in the UK who will negotiate and manage the arrangement on your behalf.

Bankruptcy

Often seen as a last resort Bankruptcy is in many cases actually the most appropriate solution to financial problems. Becoming bankrupt is a way of clearing overwhelming debts while at the same time ensuring that your assets are shared out fairly between your creditors. Subject to a few restrictions Bankruptcy is an option for anyone who finds that they can no longer keep up with their debt repayments. Bankruptcy lasts for a period of 12 months after which you will be debt free.

Debt Relief Orders

Debt Relief Orders were introduced by the government as recently as April 2009. They were brought in as a means for someone to apply for Bankruptcy without having to go through the full Court Bankruptcy procedure. Although very restricted in who can apply, debt relief orders have the benefit of being a much cheaper option than full Bankruptcy.

Individual Voluntary Arrangements

If you have debts in excess of ?15000 then you may qualify for an Individual Voluntary Arrangement (IVA). In an IVA your debts are consolidated into a single amount to be paid every month. Usually lasting a period of five years an IVA is a great way to clear your debts without resorting to Bankruptcy. Generally an IVA is only appropriate in cases where you have a regular income and owe money to multiple creditors.

Read More

What Bankruptcy Can Do For You (and What It Can't Do)

While Bankruptcy is sometimes the ideal solution for individuals who have buried themselves under excessive debt, it isn?t the answer to all debt problems. Unfortunately, not all debts can be completely erased by a Bankruptcy- and in some cases, the debts cannot even be reduced or placed in a repayment plan under a Chapter 13 or through a debt management program designed by credit counselors to get consumers into a better financial position.

If you're struggling with excessive debt from student loans, child support or alimony- you probably are going to be disappointed to find that Bankruptcy isn?t going to be your financial savior. You cannot wipe out debts that are from not paying child support payments, alimony payments or for student loans. In fact, most secured loans are unable to be erased with a Bankruptcy as well. If these are the types of debts you are struggling with, you may want to consider other alternatives to Bankruptcy.

Debts That Can Be Wiped Out with Bankruptcy

Bankruptcy is excellent for wiping out credit card debt, on the other hand! With the exception of a few 'secured? Credit Cards available, most credit card balances are considered unsecured debts and that means the credit card company that gave you the card does not have a lien on any of your property. If you fail to pay the debt to the creditor of an unsecured credit card, they cannot repossess any items. It is this type of unsecured debt that Bankruptcy is designed to remove for creditors who are in financial distress. Other types of unsecured debts can be wiped out with the Chapter 7 variation of Bankruptcy as well.

If you file Chapter 13 instead of Chapter 7, you won?t eliminate all of your unsecured debt, however, it will help you manage your debt more effectively with lower payments. Once the repayment plan is completed, all unsecured debts that haven?t been completely paid off are discharged, so the Chapter 13 Bankruptcy is still a great option to gain control of your finances once they've spiraled out of control.

Other Advantages of Filing Bankruptcy

In addition to helping eliminate or reduce your debts, filing Bankruptcy provides consumers with an end to collection phone calls and harassment from creditors. The harassment has probably been taking form of hourly phone calls and letters sent via postal service, but it is amazing how much stress that causes individuals who are struggling financially. When you start the process of filing for Bankruptcy, the ?automatic stay? kicks in that makes it illegal for creditors to contact you for payment. It also prevents repossession of your car or foreclosure of your mortgage; lawsuits, and sometimes can prevent eviction from an apartment.

Important Considerations of Bankruptcy

Regardless of whether you file for a Chapter 7 or Chapter 13 Bankruptcy, there are things to consider carefully before signing the paperwork. Primarily, you must understand that filing for Bankruptcy will leave a lasting impression on your credit report. Sometimes, the Bankruptcy will help improve your situation so that you can begin rebuilding your credit once your debts have been eliminated- but keep in mind that the Bankruptcy will remain on your credit report for 10 years, and can make it very difficult to obtain loans or Credit Cards in the future. If you're 30 years old, and hope to buy a home in the next few years, Bankruptcy is probably not going to be your best option- and should be used as an absolute last resort. On the other hand, if you're older, and have no need for credit in the near future, Bankruptcy might not be as big of a deal for you. It has to be a personal decision that is made after carefully weighing the pros and cons.

Read More

Reclaim Your Life Through Debt Negotiation. The Better Way To Saving You Time, Money And Your Credit

Are you losing sleep at night? Do you dread answering your phone or answering your door for fear that it could be your creditors or a collection agency? Debt Negotiation can help.

Do you want to reclaim your life back? Finally get a good nights sleep? Save your Credit rating? Save money? Get out of debt once and for all? If you said yes to all these questions, Debt Negotiation can help you to achieve all of these things.

When you fall behind on your bills your creditor will often take action against you and this can be followed by a court judgment such as wage garnishments, tax liens or bank account levies. All of these inconveniences can be relieved through a Debt Negotiation Plan.

Debt Negotiation is the process of settling your debt with your creditors. A professional debt negotiator will act on your behalf negotiating directly with your creditors so that you can avoid Bankruptcy and the creditor doesn?t have to go to court to retrieve the money. Through debt negotiation you can save yourself from the disadvantage of Bankruptcy while at the same time allowing yourself to get the benefits of Bankruptcy.

The do it yourself approach can not be done effectively as it can cause you a lot of wasted time. And it can often result in more added financial hardship. But through a Debt Negotiation Service, they will help you to negotiate with your creditors by writing Debt Negotiation Letters or make telephone calls on your behalf to your creditors or debt collectors negotiating settling for a better term, a smaller payment or even to reduce your debt by a substantial percentage for a lump sum payment.

Bankruptcy laws now make it more difficult to file. And what you need to also consider when you file Bankruptcy is that your Credit rating is ruined and for business owners this can be the kiss of death. With Debt Negotiation you can save your Credit rating and for business owners literally save all that they have worked for.

Benefits of Debt Negotiation

'debt Negotiation takes less time than consumer credit counseling. Consumer Credit Counseling Services can take 60 to 82 months to complete and only reduce interest. Debt Negotiation can take 24 to 36 months to complete and they settle your debt principal and interest.

'debt Negotiation can save you money. Most creditors and debt collectors who haven?t been paid for awhile are usually ready to negotiate and typically will settle unsecured debt for 50% or more of the balance.

'debt Negotiation can help to improve your credit scores. Because you are starting to pay off your unsecured debts, your debt to income ratio goes down.

?Many creditors are willing to replace negative information on your credit report with positive information if it can be worked out through Debt Negotiation.

'debt Negotiation can stop creditor or debt collectors from harassing you.

?Most importantly, Debt Negotiation prevents you from filing for Bankruptcy which can result in long term credit damage and maximum financial ruin.

If you work with a Debt Negotiation expert then you will reap the benefits of saving time, saving money and saving your Credit rating.

It is important to take action as quickly as possible to move toward financial stability.

? Copyright 2007 Judith Howard

Read More

Credit & Credit Report. What Is Credit And Why Do You Need Credit?

Wherever you live in this crazy world of genocide, suicide, murder, rape, or other crimes of human against human, or adults against children,... when every religion claims and repeats to enforce the same ideology that "we are all brothers and sisters", credit is the "ideology"/concept of living a better life. It does not mean that credit or money will bring happiness but it provides us a better lifestyle. With credit, you can buy a better car than an embarrassing clunker we may drive. It allows us to have roof over family's heads, gives us opportunity to own better furnishings, and so much more. The concept of credit is practically saturated in our lifestyles to the extent that we cannot draw a distinguishing line.

Have you ever heard your parents or grandparents tell you, ?we used to go to the grocery store down that street, picked up whatever we needed and if we did not have money to pay right then, we would ask the store owner or manager to add the items to our bill and next time we come in, we'll pay the bill?? It was a trustworthy relationship (as described in the credit definition-above) people had a few decades ago. However, that type of trust seems to be a thing of the past. Now, we live in a bigger, more crowded, and distrusting world. Most to all of those mom and pop stores have been closed, become major corporations or that the employees? and managements? ?ideologies? have changed. It is also because some of us have abused the ?Trustworthiness afforded to us by others.? Although some utility companies may still apply some concept of the old school credit and trust on us; however, they still request a cash deposit or ask to see our credit report in advance of connecting our services, which takes us to the next paragraph.

What is a Credit Report?
As a result of the changes in our lifestyles, distrust and other issues discussed in the paragraph above, for profit companies (Equifax, Experian, and TransUnion) have been established to obtain, process and hold our history of trustworthiness (?credit history?). These companies, which are called credit reporting agencies or ?credit bureaus?, have been receiving our credit history, accumulating, holding and processing them into an organized, readable format (called credit report) for others who are willing to lend us money (Creditor). Therefore a credit report is a collection of your payment history for loans and Credit Cards of over the past several years. As a result, whenever you want to purchase something using Other People's Money (OPM), the one who wants to lend you money or extend credit in some fashion, would want to pull/obtain/retrieve your credit report.

Note: Since we mentioned 'several years?, lets make this phrase clear.
a.If you opened an account and the account is still open, then it will be reported on your credit report (also called ?credit file?) from the date the account was opened? now read b.

b.When an account closes, it still remains and reported on your credit report for yet another seven years.

c.Now if the account was in good standing and closed that way, there will be a note/comment on your credit report (on the last line of the history for this account) that will say, ?account closed at consumer's request.? However, if the account was in default (you missed payments and the creditor was forced to close the account) then, it will state, ?Account closed by credit grantor.?

d.If the account has a balance and was not paid at the time it was closed, then depending on the type of account, it will report serious negative on your credit report such as ?Collection,? ?Charge-off,? 'repossession,? ?Foreclosures,? or some other adverse wordings (depending on the type of account you were holding. (For more in depth information, please read the my book called, ?Your Credit = Your Life, Fix It Now!?

e.Whichever type of accounts you may have (whether good or bad), it will NOT be reported for more than sever years on your credit report, UNLESS, you file Bankruptcy and include some accounts in your Bankruptcy petition; therefore those accounts will be reported longer (based upon the type of Bankruptcy filed).

Since all these discussions are extensive and takes pages, please read about them in the ?Your Credit = Your Life, Fix It Now!? book.

Why credit repair is important?
First let's make something clear. Although a lot of credit repair companies want to mislead you by making you to believe creditors and credit bureaus are horrible devils from ?hell?, the truth is that all parties can make mistakes. The same way that we may make a mistake and forget to pay a bill on time (once or twice), the creditors may report inaccurate information by mistake. There is no law broken. However, the law is breached when a creditor or a credit bureau does NOT want to fix the mistake, argue with you or abuse their discretion. As stated in the last paragraph of ?What are Credit Bureau's Responsibilities?? A bureau is responsible to report accurate information and any evidence of inaccuracy must be resolved in favor of consumers. This includes when a creditor or a collection agency does not reply to the bureau's request for correct information. See the ?Your Credit = Your Life ?? book.

The way the credit system works is similar to the court system. You are presumed innocent until proven guilty. However, in the court system a person that is charged with a crime, is arrested, taken to jail, finger printed, booked, a bond is set (in most cases), then released on bond until a later date when through a series of court hearing the person is proven innocent or guilty. Although most credit repair companies want to make you believe that the credit system works in the reverse order, this is not true and do NOT be deceived. As I stated above, mistakes can take place by both (your creditor and or the credit bureaus). It is your job to look at your reports, find the inconsistencies and contact the bureaus or the creditors to resolve the issues. Please read the book, ?Your Credit = Your Life, Fix It Now!?, so that you can become informed about all aspects of credit repair.

Since the inconsistencies can take place accidentally or inadvertently, no one can be blamed UNLESS you notify the party who made the mistake and no corrections are made. Some credit repair companies use scare tactics concerning credit bureaus to get your business. Do NOT be INTIMIDATED....

I repeatedly use the expression that ?lack of knowledge costs a person a lot of money? or ?knowledge is wealth.? I interpret this expression by saying, 'scammers see your lack of knowledge as PRICELESS.? The book I mentioned above costs about $25.00 but WILL save you so much more and give you so much knowledge so that when you get fraudulent calls from collection agencies or even those so called 'debt consolidation?, 'debt reduction?, and 'debt management? companies or others, you will be able to immediately recognize the scams and fraud. In the ?Fraud Watch? article, I will give you examples.

The Fair Credit Reporting Act (FCRA) gives you the right to accurate credit reporting. Exercise that right by having your questionable credit items either verified as accurate or removed from your credit files according to the law.

What are Credit Bureaus? responsibilities?
As we discussed under the main paragraph of ?What is a Credit Report?), the bureaus? responsibility is NOT to act on creditors or lenders behalf, but only to report accurate information concerning your credit history. However, while accumulating data from creditors, lenders, collection agencies or others, bureaus may receive inaccurate data and process the data into inaccurate information, which is then displayed on your credit reports/files. Although Experian's representatives are known to argue with consumers about the inaccurate information reported on a person's credit report; however, by law they are NOT justified in doing so. A credit bureau's job is ONLY to accumulate, process, and report information given to them (whether electronically or through paper) by the creditor/lenders and collection agencies. If you feel intimidated by a bureau's representative, DO NOT HANG UP the phone; get the person's name, ID, department or any other information, then ask for the supervisor, and finally report the company to the FTC (Federal Trade Commission) by phone or visit the website .

There are a couple of books out there called ?Your Credit = Your Life, Fix It Now!? (same link as above), and ?Consumer Advocacy? (in the Author Bio section, please see the address to the Attorney General of the ALL states) , they teach you how to effectively catch people in their act of deception, fraud, and consumer abuse.

The credit bureau is responsible to investigate and properly affect corrections on your credit report when any inaccuracies are reported to them. See the next paragraph for details.

Although, the law gives you the right to dispute any listing on your credit reports that may be inaccurate, untimely, misleading or unverifiable (questionable items), the law can?t protect you at all times until you push the issues and be consistent with your pursuit for justice and credit issues. If a credit bureau can't verify the accuracy of a disputed listing, then it must be removed the item from your credit report. However, there is a lot more to credit repair than just disputing a line item entered on your credit report. When you know the law and have knowledge of the proper way in handling your affairs, then you have the upper hand.

I can repeatedly suggest that you read, read and make time to read until I turn blue and yet you may still come up with some sort of excuse. It is true that I can NOT twist your arm or force you to act responsibly and to understand that your financial destiny is in no one else's hand but your own. You must understand, I spend hours writing these articles, hired Internet experts-spend unexpected amounts of money posting them to give you ideas, provide you important information and encourage you to take control of your life at no cost to you when and where there is no benefit to me. Even if you think you are not a good reader, fast reader, do not have time for it or whatever your excuse may be, I am certain you care about making and saving your money; therefore, do something that would benefit you.

Not until you admit that you have a problem, can you face and fix it. Just like an alcoholic or drug user who claims he/she doesn?t have a problem, people who don?t want to admit they have financial or credit problems cannot fix their problems. Before I give you an example, let me clarify that I am not trying to brag but am thankful to GOD for the intelligence he has given me. Now, I am trying very hard to share those experiences with you.

Most of my friends work for the government or companies and make more money than I do. However, most of them had or have bad credit, spend a lot more money in an attempt to catch up with their bills and none of them live in a house as nice as I do. Again, I am NOT trying to brag. My credibility was in the millions up until I met three con-men who took me to the cleaners. However, I had one thing going for me, my credit. Every time, my friends wanted to buy something, they had to cough up a lot of cash, get higher than normal interest rates, pay so much more for the loan cost, spend about two months trying to get a loan or many other situations which was uncomfortable to them. On the other hand, I was and am able to get loans larger than they can and ONLY in a matter of a few days, without any problem and at a much lower cost and rate. I have bargaining and negotiating power due to my good credit.

Every one of my friends has asked me how do I do it. But none of them wanted to set forth any effort to do what I have been doing. Some of them did not ask for help with their IRS, State tax liens, Property Tax liens, medical bills (co-pay portions), collections, and so on and so forth until years later. Although, I helped them for free, it took them years and a lot of wasted money (on higher interest rates, late fees, and other overcharging fees) plus aggravations to finally give up and do something. Please do not be like some of my friends. Do something NOW.

When I tell people that I can close on mortgage loans within SEVEN (7) days, they do not believe it until I show them proof. No, I am not talking about from the time the underwriters FINALLY approve my loan until the time that we agreed on a closing date. I not only do this for myself, but also have proof of what I have done for a couple of my clients. I am talking about; it took me 7 days from the actual time of application until the signing of the security deed, exchange of money and documents. Again, I make less money than most of my friends!! And, I do NOT pay a dime over what my actual bills are. No. I am not talking about paying more than what I have to, because when you are forced to pay late fees and over limit fees then you HAVE TO pay. ?HAVE TO pay? is very different and higher from ?the actual bill.? I save my money very properly. How are you Saving Your Money? Read this book.

Why act now?
As lending and credit options for consumers with poor credit continue to decrease, having a good credit report and credit score has never been more important (especially now with all the foreclosures or repossessions and loan defaults). A lot of people become statistics and consider the alternative method (which is waiting seven years for credit problems to go away). However, the seven years will never come; because, every day we need something that requires credit. We continue borrowing money or live on credit. As we do so, our rates, cost of obtaining a loan/credit/service goes up, our late fees and over limit fees don?t stop (because we can?t catch up with the payments that were set high to begin with), etc, etc. Therefore, we never see the end of the month let alone the end of seven years.

It is true that some bad stuff (derogatory) may fall at the end of the seven years (if we ever get there) but, some remains (see my book ?Your Credit = Your Life??) Moreover, as some old stuff is removed, some new BAD stuff may take their place. IT IS A NEVER ENDING CYCLE. So don?t fool yourself that in sever years everything will be OKAY and then you can turn your life around. I promise you that attitude will NEVER WORK. There's no better time to act than the present.

You have an incredible array of rights and a long list of options to improve your credit. However, you MUST take action NOW.

I have a sign on my office door and I make sure everyone reads it before they enter my personal office. It says, ?More is lost by indecision than by bad decision.? It is also on my business card. I stole the statement from the analysis of the book ?Your Credit = Your Life, Fix It Now!? Please understand the issues surrounding your life, willpower and future.

Since all these discussions are extensive and takes pages, please read about them in the "Your Credit = Your Life, Fix It Now!" book at the website, post your questions and comments.

Best of luck
Mike Samadi

Read More

Bankruptcy And Buying A Home ? Types Of Bad Credit Mortgage Loans

Buying a home after a Bankruptcy doesn?t limit the types of mortgage loans you can qualify for. If anything, you have more loan options with subprime lenders. However, depending on how soon your Bankruptcy was resolved, you may find that you pay higher rates and down payments to secure your home financing.

Available Bad Credit Home Loans

In recent years, subprime lenders have come up with a number of new financing terms for home loans. So even with adverse credit, you can still get 100% financing or a 30 year fixed rate mortgage. Interest only loans and adjustable rate mortgages are also good options to increase your buying power.

If you are looking to secure financing over the conventional price caps, then subprime lenders can also offer you jumbo loans. All loan terms are flexible, as well as fees and conditions.

Hurdles Of A Bankruptcy

Right after a Bankruptcy, your credit score will require you to put down a sizeable down payment with lenders, usually around 50%. But after the first year, you can reduce your down payment to just 25%. In two years, you can qualify for zero down and conventional rates.

It is only after the first two years of a Bankruptcy that your credit score will be significantly affected. After that, financing companies look at other facets of your credit, such as payment history, debt ratio, and employment outlook.

Get A Better Deal With A Better Lender

Subprime lenders compete for your business by offering low rates and fees. While there are certainly some companies that would take advantage of your credit situation, you can protect yourself by being a smart consumer.

Start by researching a number of loan companies. Ask for loan quotes based on your credit and income. After looking at the APR and fine print, you can make a decision on which mortgage loan is right for you.

You can also get pre-approved for your home financing. Not only will it help you in the home buying process, but it will also give you an idea of your financing budget. With online lenders, you can complete your application in minutes and have funds available in as little as two weeks.

Read More

How To Get A Credit Card One Month Out Of Bankruptcy

Bankruptcy is the black mark that stays longest on your credit record. It will be ten years before it is removed, but this does not mean that you will have to wait for ten years until you can obtain a new credit card. Offers of new Credit Cards are likely to appear in your mailbox within weeks after your discharge. So the advice is to take your time and not accept the first offer, but to wait until you have received several so that you can compare the terms to get the best deal.

To see why Credit Cards are offered to recently discharged bankrupts, you need to understand how this group are regarded by the credit industry. In a competitive marketplace you will find many companies fighting for new customers and the credit card industry is no different. Because people with bad credit records including Bankruptcy constitute a large sector of the market, suitable products have been developed for members of this group.

Although your credit report will disclose the Bankruptcy for a period of ten years, its negative effect on your ability to obtain credit reduces from day one. In fact a discharged bankrupt is regarded by some companies as a better risk than he was before the Bankruptcy since he will now have little or no outstanding indebtedness. Naturally this is on the assumption that such a person is now using credit in a responsible manner by making regular repayments and not borrowing right up to their limit.

Even with a choice of offers, any credit card you obtain following a discharge from Bankruptcy will be on far worse terms than you enjoyed before. Most cards will require payment of an annual charge as well as an initial setup fee. The first card you are likely to be offered will be a secured card where you pay a deposit which is held by the card company as security that can be used to repay the loan in the event of a default. The credit limit will usually equal your deposit. After a few months and provided you are in good standing, you should be offered a transfer to an unsecured credit card with a higher credit limit.

Following a Bankruptcy there will be no difficulty in obtaining a credit card even if it will be expensive. The possession of a card will help in rebuilding your credit score. But to end on a note of caution, if easy credit from too many Credit Cards contributed to your Bankruptcy, take a step back before going that way again.

Read More

Stuck in Debt? Look at The Possible Options

Debt is a pond which has no bottom. In fact, it is so deep that once you are stuck into it, you will hardly think of having ways to come out of it.
Reasons you may get stuck in debt
' Loss of job, which is all on a sudden. The company you have been working with might close down due to its own reasons or there could be other reasons for you to lose the job.
' Either you or someone else might have taken seriously ill which has drained a lot of money out of you and your debt has piled up.
' There was an accident or any other exigency which you were not prepared for.
' You don't have major savings and have had to spend more than your capacity one given occasion.
What does it lead to?
In the absence of job you might have managed to survive and buy two meals somehow. In the meantime, you have been making payments through your credit card to pay your bills and other expenditures you might have come across.
If there is mortgage in your name then you're liable to pay the monthly instalments, failing which will make you undesirable consequences.
The probablesolution
' The first and foremost thing you should do is to contact an agency which settles down the loan. Take advice from them and move accordingly.
' Once you get stable income make it a point to pay the monthly instalments of your mortgage because under any circumstances you need to save your house. If you don't make the payments continuously for a few months then you may face foreclosure which will snatch your house away from you. To avoid this, be prompt in making the mortgage payments.
' In aces the income you generate does not seem to be covering credit card payment and mortgage payment, then your priority should be pay the mortgage and put the credit card payment on hold for the time being.
' You can always contact the "settlement agency" to settle down your credit card payment and the interest levied on the same.
' You can also keep depositing money in the account of "debt Settlement Company". Here money will keep accumulating till the time you deposit enough to go for a settlement with the credit card company.
' Your debt Settlement Company or agency will help you settling down the scores with the credit card company.
' Amid all this you should consult a financial counsellor to get an idea about the Bankruptcy state and its effect. You can discuss your exact situation with them to understand how close or far you are from this state. He will also tell you the options to avoid it completely, even if you can't be saved from this, he will tell you the post-Bankruptcy handling.
Anyone can undergo a phase of finical testability in life. It all depends upon your extent of "homework" you do to manage yourself well in such a situation.

Read More

Debt Consolidation Services Why Should I Use One

Advantages of Using a Debt Consolidation Service
The biggest advantage of using a debt consolidation service is that they will shop around on your behalf. Debt consolidation services will consult with their many financing sources, including traditional banks, insurance companies, credit unions, finance companies, and private lenders in order to find the best possible solution for you. Some debt consolidation services even offer Christian debt consolidation help.
Remember, however, that debt consolidation services exist to make a profit, so there are some things you'll want to ask them before committing to any deals.
First, determine how much the company charges for their service, and how you will be required to pay (i.e. up front or upon completion of the loan). Some companies require a flat fee that is paid no matter what the result, while others charge a percentage of the loan.
Second, ask the company for a list of satisfied customers. The best way to determine if the company is a good one is to talk to people who have benefited from the service in the past. If the company is unable to produce any references, you could ask if they are members of the Better Business Bureau or any other professional organization. You want to be sure that the company you choose in the end is a reputable one.
Finally, find out what lenders they typically deal with. You want to know how many lenders they are prepared to approach on your behalf. If they say they only work for a single lender that probably means they are more interested in working with the lender than with you.
Be sure to research your options on the Internet before making the final decision on whether or not to use the debt consolidation services they offer.
Should I Consolidate My Credit Cards, or Just Go Bankrupt?
Debt Consolidation has become an extremely popular alternative for people who want to avoid filing for Bankruptcy. The most common form of debt consolidation loan is a credit card debt consolidation loan. These types of loans are generally acquired through a bank or finance company.
If you have an excessive amount of debt on your Credit Cards, and are paying a significant amount of interest on it, a credit card debt consolidation loan may be the perfect option for you.
To get started, you should first begin by outlining your income and expenses to figure out how much you can afford to repay each month. A budget will help you visualize how much extra money you all have each month, so that you won't end up agreeing to a payment that is unfeasible.
The biggest advantage of getting a credit card debt consolidation loan is reduced interest. In a debt consolidation loan all debts are combined into one, providing only one monthly payment, and therefore lower interest rates.
As a debtor, you probably want debt relief as soon as possible, and reduced interest rates will help you achieve that. Paying each credit card debt individually could become tedious, and would likely take a lengthy amount of time. One payment will speed up the entire process, and could get you back on your feet before you know it.
Once your budget is prepared and you know what you can afford to pay each month, apply for your debt consolidation loan to repay your credit card debts. If credit card debt consolidation is not the option that can work for you, and you have more credit card debt than you can handle, you should, in that case, consider filing a consumer proposal or personal Bankruptcy.

Read More

Is Bankruptcy Is The Right Answer For Your Financial Situation?

If your financial situation is at a point where you are considering Bankruptcy, you need to sit down and do a thorough analysis of your financial situation instead of jumping into something like Bankruptcy that may be AN answer but in all probability, is not the best answer for your situation.

Bankruptcy law has changed tremendously in recent years and it is no longer the simple do-it-yourself process that it once was. In fact, these days you need the approval of the federal Bankruptcy judge in order to be approved to file. That's right, just because YOU think it is the answer does not mean you will be able to file just because you want to.

One of the big reasons for this is that people were filing for Bankruptcy left and right, simply because it was the first thought that popped into their heads when they get into deep financial sneakers. The problem with that, outside of clogging up a legal system that is already overloaded to the breaking point, is that these people did not take the time to thoroughly investigate other financial options that were open to them, and indeed may have been much better for them overall, without all the long term negative effects that Bankruptcy brings to you as a consumer.

In addition, there are multiple chapters and you need to be able to determine, based on a mountain of criteria, which one is best for you and which chapter the judge will approve you for. If your financial situation is not presented to the judge in such a way that the approval process is almost guaranteed, again you run the risk of not being approved to file, forgetting to include some information that may have been pertinent, and having wasted several weeks worth of your time, all the while your financial situation is going from bad to worse.

For personal Bankruptcy, you have two basic options, which is either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. These chapters or sections of Bankruptcy law have entirely different outcomes and vastly different meanings for you, so in addition to determining which one you should file, you should also consider which one you are likely to be APPROVED to file and how to present your case in that light to the judge.

Also be very aware of the types of financial obligations that make up your overall debt load. Are they loan payments, Credit Cards, or other things, or even a combination of all of those? The reason for knowing what types of debt make up your overloaded financial picture is because there are certain kinds of debt that cannot be eliminated by ANY chapter or form of Bankruptcy, so if that is the case with you, then even after you complete your filing, those debts will still be like a noose around your neck because they will not have been erased.

Most people do not want to get a Bankruptcy lawyer involved. For one thing, being in this type of financial situation is embarrassing and humiliating, and people see it as a sign of personal failure. You cannot allow your emotions to get involved at this time, you have much bigger fish to fry. A qualified Bankruptcy lawyer knows the laws, both at the federal level as well as how they apply in your state, and can make recommendations and provide Bankruptcy advice as you sort through this. Most importantly, they can let you know what other options you may have and how those are a benefit. People who have used a Bankruptcy lawyer said that the time and money they saved as a result were an order of magnitude more money than they would have wasted if they had done it themselves.

The bottom line is to know what your options are, and to do that, you need a Bankruptcy evaluation from a qualified Bankruptcy attorney. If you need a plumber, you don't call an electrician. If you need landscaping, you don't call a roofer. By the same token, get the expert involved who can provide the Bankruptcy advice you need.

Read More

Why You Should Use A Bankruptcy Lawyer

A Bankruptcy lawyer is not going to be an option. It is a necessity. If you are planning to file Bankruptcy, you need a lawyer. There are basically two Bankruptcy options, Chapter 7 and Chapter 13. The differences between the two are great, including using one where you are able to keep your possessions, mainly home and vehicle. With the other, your assets are sold to pay off debtors.

A Chapter 7 Bankruptcy is also considered liquidation because all your property that is not exempt is sold to pay off your debts. A lawyer is essential in these proceedings because the complicated nature of these proceedings are not easy for someone who has not been to law school. If you attempt to do this yourself, you could end up losing more than you had originally planned.

A Bankruptcy lawyer is knowledgeable in all aspects of filing for debt relief which may not actually end up having to file for Bankruptcy. Your unique situation determines what is in your best interests. If a refinance would save you from filing Bankruptcy, your lawyer will tell you. Debt consolidation might also be a viable option. It might save a lot of headaches in the long run and you will not have to give up your home.

If your lawyer decides that Bankruptcy is the only option you have at the time, he will tell you which one you should file. If you are determined to save your home from foreclosure or your vehicle from repossession, a Chapter 13 should be filed. Your lawyer will handle all of this so that when the time comes for the automatic stay to be granted or a repayment plan to be approved, you will not lose it over a mistake that could have been avoided.

As you can see, unlike other matters that you may be able to handle without a lawyer, this is not one of them. A Bankruptcy lawyer can save you money in the long run by doing things right the first time. Different states have different rules about the exempt status of the belongings of the filer. Your lawyer will know the specifics of your state and how to handle this matter.

It is hard enough to face Bankruptcy and the probability of losing your home, your car, and all that you have worked for up to this point. Although a Bankruptcy is considered to be a way for you to start over with a clean slate, this is not always possible when all assets have been sold and you have nothing to start over with. This defeats the purpose of the Bankruptcy and should you try and handle this on your own that might be where you end up.

Therefore, before you head off in the wrong direction, thinking that you can represent yourself in this problem, just remember you have not been to law school, you do not know the first thing about filing petitions and asking for stays, so let your Bankruptcy lawyer take care of what he knows how to do. Do not cause yourself more problems than the problems you are already facing financially.

Read More

Why You Should Use A Bankruptcy Lawyer

A bankruptcy lawyer is not going to be an option. It is a necessity. If you are planning to file bankruptcy, you need a lawyer. There are basically two bankruptcy options, Chapter 7 and Chapter 13. The differences between the two are great, including using one where you are able to keep your possessions, mainly home and vehicle. With the other, your assets are sold to pay off debtors.

A Chapter 7 bankruptcy is also considered liquidation because all your property that is not exempt is sold to pay off your debts. A lawyer is essential in these proceedings because the complicated nature of these proceedings are not easy for someone who has not been to law school. If you attempt to do this yourself, you could end up losing more than you had originally planned.



A bankruptcy lawyer is knowledgeable in all aspects of filing for debt relief which may not actually end up having to file for bankruptcy. Your unique situation determines what is in your best interests. If a refinance would save you from filing bankruptcy, your lawyer will tell you. Debt consolidation might also be a viable option. It might save a lot of headaches in the long run and you will not have to give up your home.

If your lawyer decides that bankruptcy is the only option you have at the time, he will tell you which one you should file. If you are determined to save your home from foreclosure or your vehicle from repossession, a Chapter 13 should be filed. Your lawyer will handle all of this so that when the time comes for the automatic stay to be granted or a repayment plan to be approved, you will not lose it over a mistake that could have been avoided.

As you can see, unlike other matters that you may be able to handle without a lawyer, this is not one of them. A bankruptcy lawyer can save you money in the long run by doing things right the first time. Different states have different rules about the exempt status of the belongings of the filer. Your lawyer will know the specifics of your state and how to handle this matter.

It is hard enough to face bankruptcy and the probability of losing your home, your car, and all that you have worked for up to this point. Although a bankruptcy is considered to be a way for you to start over with a clean slate, this is not always possible when all assets have been sold and you have nothing to start over with. This defeats the purpose of the bankruptcy and should you try and handle this on your own that might be where you end up.

Therefore, before you head off in the wrong direction, thinking that you can represent yourself in this problem, just remember you have not been to law school, you do not know the first thing about filing petitions and asking for stays, so let your bankruptcy lawyer take care of what he knows how to do. Do not cause yourself more problems than the problems you are already facing financially.

Next article: Used Auto Loans- Suitable For Used Vehicles Only

Previous article: How UM or UIM Coverage Can Sheath You From The Negligent Drivers?

Read More