Debt Consolidations News

With the recent downturn in the economy, many people are realizing that they cannot afford to sustain the lifestyle that they have grown accustomed to living. Fortunately, this does not mean life cannot be enjoyable. There are a number of easy ways to live within your means without hurting your quality of life. With a little planning and knowledge you can live on budget without feeling the financial strain.

The following are a number of ways to live within your means while making life more enjoyable:

1. In order to live within your means, you have to be able to bring in more money than you are spending. Create a monthly budget that includes how much you spend on essential items such as home and vehicle insurance, utilities, food, cable, phone, mortgage payments, gas, etc. Then, calculate how much you earn monthly. Subtract your monthly income from necessary expenses to determine how much extra money you have to work with.

2. List extra expenses such as entertainment, recreation, and products you shop for in the home and on yourself such as clothing, personal care products, etc. Calculate how much you spend monthly on these items. You will then need to come up with ways to control your spending habits. This can include cutting down on the number of times you dine out each month, shopping for discounts at large department stores, second hand stores, surplus stores, etc. When shopping, look for deals, coupons, and sales. Never pay full price for an item. As well, you can often find great deals when shopping online.

3. Credit card debt is a major source of financial hardship. If you have several credit cards with high outstanding debt, you should at least pay the monthly minimum for each card, and then start to pay off the card with the highest interest rate. Owning fewer credit cards will make it easier to manage and remember. Always pay your bills on time to avoid having to pay any interest at all. To help wean yourself off of credit cards, start carrying cash with you at all times and pay using cash. Seeing the physical money literally change hands will help you consider needs vs. wants on a more regular basis.

4. If you are having trouble keeping up with debt payments, then maybe you should consider consolidating your debt in order to manage it better. Instead of making multiple monthly payments to several creditors, you can consolidate your debt and only need to make a single monthly payment. In addition to helping you get organized, this can also alleviate stress that is often associated with debt.

5. Clean up your credit score. Request a copy of your credit report from one of the following two major credit bureaus: Equifax, or TransUnion. Check it over for any inaccuracies. Look to see what debt is affecting your credit rating and work with a creditor to establish a repayment plan. Don’t ignore your creditors as they will send your debt to a collection agency.

At first, implementing a plan to live within your means can seem very unpleasant. You may miss a few of the luxuries you had grown accustomed to. However, once you get used to the plan, you will find life more enjoyable as you will not longer have the worry of how you are going to pay all of your bills. You may even realize that you are much happier living on a budget.

Adriana Noton is a freelance writer who specializes in providing great financial information for Canadians. When searching online for debt counselling or credit counselling, one of the many resources available is Consolidated Credit; offering a variety of debt counselling services and financial planning tools to help Canadians get their debts under control.

Credit scores and credit bureaus and FICO look like a three-headed monster living under your bed. Pull back the covers and see if you even care what your FICO score is this month.

I often wonder why the average American worries so much about their credit. Why do you even care? A high FICO score can only lead to the possibility of high debt.

Simple. We have been taught to buy first, and worry about how to pay later.

A high FICO/credit score can only guide you down the path to crushing debt. Living beyond your means is the American Way. Here are 5 reasons to take a different approach and to tear up your credit report:

1. FICO Does Not Cover Your Expenses.

Credit is worthless if your bills are covered by your income each month. If your income falls short, you have bigger problems than a low FICO score.

2. Out of Your Control.

Trying to raise your credit score, as the countless credit repair books will teach you, is a thankless task. At any time, the credit bureaus can alter their algorithms and change their emphasis to change your score – all beyond your control.

For instance, not all bills are created equal. Pay your standard landline phone bill – FICO good. Pay your cell phone bill (often much higher) – FICO doesn’t care. Don’t pay any bill that gets reported to the credit bureaus and you get slammed. No one said FICO was fair, no matter what the name of the company is.

3. Inaccurate and Incomplete.

Credit scores are dry mathematical formulas. No real human contact. Mistakes can live forever. Most human activities can only lower your score.

Income is not really a factor in the credit score algorithm. Get a raise at work and FICO does not know or care. Pay all your expenses in cash and become a credit ghost. Mistakes stay on your report forever. Even debt discharged in bankruptcy somehow lingers.

4. Mounting Debt.

Without a high credit score, it’s almost impossible to take on too much debt. If you cover your bills each month and live within your means, you don’t need credit anyway.

Use credit so-called wisely (pay at least the minimum on time each month) and you will raise your FICO score and be flooded by bank offers to take more credit cards.

Lose your income or suffer a personal financial crisis, and all that built up debt just increases your woes.

5. No Legacy.

You can’t take your FICO score with you. It will never be broadcast at your funeral. Life is too precious to worry about a credit score.

Wealth matters. Your credit score does not.

Eat, drink, and be merry, just not on someone else’s dime.

And live within your means.

Don’t lose sleep or thousands of dollars protecting your credit.

Look for more contrarian financial strategies at Burn Down the Freaking Mission.

There has been no time in recent history when your credit score has been as important as in 2010. The vast reduction of available credit in the form of cut backs perpetuated by the credit card companies is the predominant reason for this. In fact, maybe you noticed that your available balance was drastically reduced overnight!

You may have noticed that it is getting harder and harder to be approved for a mortgage. The minimum FICO score necessary to be approved for a home loan has increased by 40 points. Additionally, the minimum score needed to obtain reasonable rates is up by 28 points.

If your credit score is less than stellar, obtaining new credit in 2010 will prove to be almost impossible.

What you will need this year is a proven strategy for boosting your credit score.

I spent several hours last weekend writing down my financial goals for 2010, which included my FICO score goal of 775.

Your financial goals may not be the same as mine. However, I hope that you have given them some thought. Whatever goals you may choose, it is important to include improving your FICO score and removing negative items from your credit history in your overall plan. For a simple formula to help you achieve these financial goals, see below:

Credit Strategy #1: Questionable Negative Items Should Be Deleted From Your Credit Reports

If you have a questionable charge off, collection, late payment, repossession, bankruptcy, or any other derogatory information, it needs to be disputed and removed asap!

To initiate your dispute, there is a dispute form letter here which you can use.

Repossessions, judgments, and charge offs have a habit of being a bit more resistant to removal. In light of this, when dealing with these particular items, you may find it necessary to use something a bit more aggressive than a standard dispute letter.

You might consider a process called “debt validation” where you demand that the original creditor validate a debt. (It’s a lot different than disputing with the bureaus – yet super effective for removing collections and charge offs.)

Debt validation is probably not something that you would want to take on yourself. The fact of the matter is, I tried it once and did such a bad job that creditors just ignored my letters.

At this point, I contacted Lexington Law and got one of its attorneys involved. My Lexington Law attorney was able to get all of my collections and charge offs removed by getting Midland Credit, a notorious collection agency, to notify and instruct the credit reporting agencies to remove these items.

You may not want to get a firm like Lexington Law involved. This approach is for people who are seriously dedicated to repairing their credit. If this is you, you can contact Lexington Law at (800) 636-3158 and speak to one of their paralegals for a free consultation.

Credit Strategy #2: Begin Building Good Credit

The good news is that this is easy to do if you already have an unsecured account. Keep paying those accounts on time. In fact, I suggest setting up an auto payment system so you never slip up. Plus, this saves postage so you are saving twice!

Rebuilding good credit can be more difficult if you don’t have an unsecured account such as a Visa or MasterCard. Additionally, it will be very difficult to obtain one of these cards if your credit score is in the 500 range or lower.

Credit Strategy #3: Always Remember Your Goal and Keep It in Sight

Stay persistent. This will take time. If you get started today you can consider yourself ahead of the game. Keep a detailed log of what your score is today and track your progress. Odds are that if you follow these tips your score will continue to climb each month.

Don’t get discouraged when things don’t go your way. There are usually different ways to tackle a problem.

We raised our credit scores from the upper 500 range to 745 and 763 in under six months and got approved for our dream home. See proof of our credit repair success at www.creditforcouples.com and get the real truth about lexington law.

Credit card judgments acknowledge that a debt is outstanding and spells out the way in which the debt may be recovered. This often takes place when a credit card cardholder has missed monthly paments and has not made an effort to work with the credit card provider to bring the account current.

Idealistically speaking, before getting to this point, it would be best to contact the card provider so things do not get out of hand. Credit card providers are often willing to work with a cardholder to either arrange a payment plan or to arrange for a pay off in full for a reduced debt amount.

A collection agency may end up with your credit card debt if you do not work with the credit card provider. Once this happens, you will no longer be able to negotiate with the credit card provider. Filing a legal action against you is not an option which collection agencies like to entertain. This is because law suits are costly and time-consuming. In light of this, collection agencies prefer to work with you to resolve the debt issue. They would prefer that you arrange to make a lump sum payment or agree to monthly payments.

If your debt does come before a judge for a credit card judgment, you have the right to appear before the judge and plead your case. If the debt is not yours or if the seizing of the assets would mean serious difficulties for you, the judge may take this into consideration. However, this is viewed on a case-by-case basis.

It is good to know that not all assets may be seized and the judge will ascertain which assets may be used to recover the debt. It is also possible that money may be taken from your bank account, your wages may be garnished (depending upon state law), and a lien may be placed on your real property.

It goes without saying that a credit card judgment will create havoc with your credit score. You will most likely be denied for most credit products and, if you are approved for any credit products, exorbitant annual percentage rates (APRs) and annual and monthly fees will be associated with those which are offered to you. Additionally, your credit report can carry this credit card judgment for up to seven years.

It is important to keep in mind that a credit card judgment will likely affect future employment opportunities or advancement related to your current position. Additionally, a credit card judgment can make finding reasonable rates for home and car insurance very difficult.

It is best to pay the credit card debt off as quickly as possible once the judgment has been issued. Once you have paid this debt off, you should try to contact the credit reporting agencies to attempt to have the debt removed in its entirety or to request this entry be revised to a “paid” status, at the very least.

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Collection agencies devoted to credit card collections have in recent times become busier and busier. This is because more and more people are having trouble keeping up with their bills.

One missed payment can result in an additional penalty which might just be what hurls you over your credit limit. Know what happens if you exceed your credit limit? That’s right. You get an over-limit fee assessed against your credit card. At this point you might be $100 over your credit limit and you still owe the initial monthly payment as well.

When this happens, it is wise to call your credit card provider and explain your circumstances. If you explain your situation, your credit card provider may be willing to work with you to get your account back on track. It is better to work things out at this stage than to ignore the situation and end up working with a credit card collection agency.

Debt sold to a credit card collection agency will normally be purchased at a fraction of what you actually owe, typically cents on the dollar. As credit card collection agencies make their bread and butter from collecting as much as possible from those who owe debt which they have subsequently purchased, they may at times be harassing and even threaten legal action.

It makes more sense for the credit card collection agency to work with you than to file a costly and time-consuming law suit. If you can acquire the funds, try making an offer to the credit card collection agency to reduce the amount of the original debt and pay the negotiated amount in full. You will want to make sure that the agreement is in writing. Also, be sure to keep copies of all documentation to and from the credit card collection company, and to mail all correspondence by certified mail, return receipt requested.

Typically, it is a good idea to begin the negotiation somewhere around 25% of the original balance. Though this sounds low, remember that the collection company probably purchased your entire debt at only about 10% of the original amount. It is likely that the collection company will decline this offer and will issue a counteroffer, which you then should counter as well. This will continue until you either come to an agreement or the negotiations discontinue.

If no agreement is reached, the credit card collection agency may lose the momentum for collecting your debt. It may determine that collecting a smaller amount is better than nothing at all. It may also decide that selling the debt to another credit card collection agency is a better idea. If this happens, the process will begin yet again and run its course.

Keep in mind that all along this process you are running the risk that one of these companies may indeed decide to file a law suit against you and that your credit score will be decreasing at an alarming rate. Additionally, a court judgment against you will devastate your credit score even further.

How I Stopped Midland Credit. I Erased a $14,072 Midland Credit Debt and Fixed my Bad Credit. www.MidlandCreditDebt.com

Online companies offering credit repair services are becoming increasingly popular. These online companies assist people in repairing their credit so they become eligible for better credit products, such as credit cards and home loans.

It is obvious that, if you improve your credit score, you will become less of a financial risk to lenders. Being viewed as a better financial risk will go a long way in helping you attain credit products which have lower annual percentage rates (APRs) and better benefits. It is because of this that many people are turning to credit repair companies for help.

You will need to complete an online application first. This application will request personal data as well as financial data from you. It will likely request information related to any bankruptcies, foreclosures, court judgments or late payments which you may have.

It will normally take two to three days to receive a response after completing the application. The response should detail the sections of your credit report which need help, what steps should be taken, and how much it will cost to take these steps in order to improve your credit score.

It is important to know that any entries on your credit report which are accurately reported will remain on your credit report for up to seven years. There is no legal way to remove accurate information from your credit report. Also, be aware that it is illegal in the United States for a credit repair service to request payment for services which have not yet been rendered.

In case you are unaware, you can do on your own anything which a credit repair service can do. You are capable and have the legal right to take the same actions. If you take this endeavor on yourself, you will need to write dispute letters to the credit reporting bureaus requesting revisions or deletions of inaccurate or false information which has been reported on your credit report. You will need to include copies of any substantiating documentation. Copies of all correspondence to and from the credit reporting agency should be kept in your file.

The main advantages to using an online credit repair service are that it will save you the time and stress of dealing with this process. If these are good reasons for you to employ an online credit repair service, then the fees you will pay may be justified. If you would prefer not to pay the fees, then you might try do-it-yourself credit repair.

Learn How to Stop Midland Credit Management in its Tracks. Free Tips to Escape Debt in Less than Seven Days at www.MidlandCreditDebt.com.

Many people want to know if it is possible to remove a charge-off from their credit report. The answer is, it may be difficult, but it can be done.

Some people are unclear as to what a charge-off actually is. A charge-off is a debt which a creditor no longer feels it can collect and subsequently decides to write-off. This will typically happen after several months of missed or late payments during which the creditor will send numerous letters and will try to communicate with the borrower by phone.

It is best at this point to attempt to negotiate a payment plan with the creditor to avoid the account going to collections. Do not ignore attempts by the creditor to contact you. Normally, creditors are willing to work with you if they see that you are trying to make an attempt at paying the debt.

It is important to understand that once your debt is written-off, your creditor may decide to pass or sell the debt to a collection agency. The collection agency will then attempt to collect the debt using any method of harassment and threat available to it, including the filing of a law suit to collect the debt.

A charge-off will appear on your credit report and can remain for up to seven years. This charge-off will severely damage your credit score and will harm your chances of obtaining credit from other lenders. This is why it is important to have charge-offs removed from your credit report.

A copy of your credit report will be needed to begin the process of removing a charge-off. When you have a copy of your credit report in hand, review it for any false or inaccurate information. If you discover any false or inaccurate information, you can write the credit reporting agency and request that it remove or revise the information. You will need to include copies of any documentation you have which corroborates your claim. If the credit reporting agency cannot verify the informaiton within 30 days, it must remove the entry from your credit report in its entirety.

If you contact the collection agency, it may be willing to come to an agreement with you. As you enter your negotiation with it, keep in mind that collection agencies purchase debt for cents on the dollar so the collection agency may well be willing to agree to a reduced total amount due. You can either offer a lump sum payment in exchange for this reduced amount or you can attempt to arrange a payment plan for the full amount. Above all, be sure that you obtain in writing an agreement which states the charge-off will be removed from your credit report or, at the very least, that the charge-off be reduced to a “paid” status.

To summarize, if you find yourself falling behind in your payments, contact your creditor and try to work out an arrangement to avoid a charge-off. If the charge-off account ends up with a collection agency, attempt to negotiate with the collection agency to pay the debt and remove the charge-off entry from your credit report.

How I Stopped Midland Credit Management, Fixed my Bad Credit, and Raised my Credit Score 163 Points in Less than 14 Days. www.MidlandCreditDebt.com

If you have a debt which is subsequently sent to collections, you will drastically damage your credit score. Your credit score will be damaged even more significantly if your creditor decides to seek a judgment.

Your creditor is sending a clear signal that it is through playing games if you are served with a Notice to Appear in court for a judgment proceeding. You will have 30 days from being served to object to the filing. You can have the case dismissed if you can prove that the debt is invalid.

A creditor may or may not be serious if it threatens to file a law suit. However, going to court should be a very, very last resort in your mind.

If your credit report lists an “unpaid” judgment, it will remain on your credit report for 10-12 years. If the judgment remains unpaid at the end of this time, it can be renewed. A judgment which has been paid can remain on your credit report for up to 7 years from the date paid.

You should make an effort to contact your creditor to negotiate a settlement, provided the debt is valid, you would prefer this route to letting a judge decide your fate, and the debt is still within the statute of limitations (check your state’s statute of limitations laws). Be sure to check your state’s statute of limitations laws prior to doing this. The reason for this is that if your debt is outside of the statute of limitations, you no longer have a legal obligation to pay the debt and offering to pay may start the clock ticking again for payment purposes.

If you are ordered by the court to pay a debt and an official court order is issued, the impact on your credit score will be devastating. However, if you decide to contact your creditor and arrange for payment, you may be able to avoid this traumatic black mark.

Offering to negotiate a settlement is the best solution for all parties. Typically, creditors do not want to go to court and will accept a portion of the amount owed just to bring the matter to a close. If you do not have a lump sum to offer as payment, you can always attempt to negotiate a payment plan. If your creditor is not “in the mood” to consider any offers, you might think about calling the lawyer handling the case for your creditor.

A “legally void” entry will be shown on your credit history if a judgment is dismissed; this type of entry is much less harmful than a “paid judgment.” Your credit report can show a “paid judgment” entry for seven years.

In addition to a settlement, you should attempt to negotiate a deletion of the negative information in its entirety from your credit report. If you are able to accomplish this, it is imperative that you obtain the agreement in writing and obtain both parties’ signatures. It is good to remember that negotiating opportunites all but vanish once the court becomes involved.

It would be smart to consider seeking out the advice of a seasoned consumer credit attorney. The typical consumer credit attorney has handled hundreds, if not thousands, of these types of cases and can benefit you with his experience and knowledge.

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The popularity of “No Credit Check Credit Cards” is increasing in the United States. More and more people are defaulting on their credit cards and home and car loans because of the difficult economic times in which we find ourselves. Therefore, consumers are turning to these no credit check credit cards as lenders become more stringent with their approval requirements.

Average or even above-average credit scores don’t even guarantee you a credit card anymore – as many people are finding out. It follows then that people who have below-average credit scores will find it incredibly difficult to be approved for a credit card of almost any type.

No credit check credit cards, as the name implies, are issued without the creditor running a credit check. This enables those with a poor credit history to apply and be approved in many cases. Even though a credit check is not run, these credit cards still have some requirements for approval. You must be at least 18 years old, a U.S. resident, have a social security number, be gainfully employed, and able to provide proof of address, identification, and current employment.

A great benefit of these no credit check credit cards is that they report to the three major credit reporting agencies – TransUnion, Equifax, and Experian – which will help to build the credit of those with a below-average credit score. This should, in time, help the cardholder to obtain better financial products with better terms.

Banks and other financial institutions are just two types of companies which issue these no credit check credit cards. It is important to note, though, that these cards are more readily found online. If you apply online for a no credit check credit card, you should receive notice of your approval or denial within moments. If you are approved, you should receive your no credit check credit card in the mail within a few days time.

Shopping around for the best no credit check credit card is important. You should be looking for the card which provides the lowest annual percentage rate (APR) as well as the fewest, and lowest, additional fees and charges.

After you have shopped for the best no credit check credit card, make sure that the company’s web site is secure before providing your personal information online. It is wise to perform a quick internet search and obtain other people’s opinions of the company.

Properly maintaining your no credit check credit card will yield great benefits. By doing so, you will begin to repair your credit score. Additionally, you should make every attempt to remain diligent in paying your monthly bills on time and staying below your credit limit. This will pay off in the future and you will be rewarded by becoming eligible for more desirable credit products.

Man Fixed my Terrible Credit and Credit Score is up to 745. Lexington Law Works. See Documented Proof at www.lexingtonlawreviews.com

A credit card can be used as a tool to help rebuild your credit. A few steps need to be followed though to ensure your success.

Everyone has felt the effects of the credit crisis. It is now almost commonplace for consumers to default on personal loans or to miss bill payments. Those who have defaulted on a personal loan or missed multiple bill payments are now suffering from a low credit score. Lenders look for these types of scores and are wary to lend money if the score is below-average.

Don’t be afraid if this is your situation. You can begin to rebuild your credit by using a particular kind of credit card. If you obtain one of these cards, it will be necessary to use it wisely in all respects. You will start to notice your credit score rising as you improve your spending habits.

So, let’s discuss what type of credit card you should get. If you have bad credit, you should not attempt to obtain an unsecured credit card which has many benefits and a low annual percentage rate (APR). Your attempt to obtain an unsecured credit card may, in fact, hurt your credit score if you are denied. If you have bad credit and you want to start rebuilding it, look for a good quality secured credit card. These cards normally guarantee approval.

Secured credit cards and unsecured credit cards are basically the same. Just like with an unsecured credit card, you should still be able to purchase goods and services and make cash withdrawals using an ATM. The major difference between these types of credit cards is that a “deposit” will need to be provided in order to begin using a secured credit card. Your credit limit will be determined by how much you deposit with the credit card company. Although the minimum is usually $100, you can deposit more if you would like to do so.

When performing research for a secured credit card, be sure to look for one which provides reports to Experian, Equifax, and TransUnion, the three major credit reporting bureaus. A credit card that does not report to these three credit reporting agencies should not even be considered.

What should you look for in a secured credit card? You should find one that has the lowest APR possible and that has the lowest and fewest charges. Secured credit cards vary immensely in what they offer so you should be diligent in searching for the best credit card to accomplish your goal of rebuilding your credit.

Once you obtain your secured credit card, you will need to begin using good spending habits. Begin by charging “small” amounts each month and then be sure to pay the monthly bill on time every month. Do not be late with your payment! It would be even better if the balance was paid off each month.

By handling your credit card in this manner, each month you should see a small increase in your credit rating. Eventually, you will become a “good” credit risk.

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