Considering Bankruptcy Or Debt Settlement? Here Are Some Things To Consider.

Posted on 24 April 2011 by

How long will Debt Settlement stay on your credit report? Most likely 7 years after you settle the debt. If all your debts can not be settled now, when will you be finished? 2 Years? 5 years? And then the clock will start. Your credit is trashed now anyway. If you file for bankruptcy, the clock start immediately. Chapter 7 will stay on your credit report for 10 years, but that does not mean you will not be able to get credit during that period. In fact, some people find they receive credit offers a few months after their case is finished. Chapter 13 will stay on you credit report for 7 years from the filing date. You have to decide which path is better for you.

Most Everyone is going through hard times right now. If you have the money on hand to settle your debts out of pocket right now this probably makes the most sense. As long as you are not taking it from your retirement, or your house. If you are borrowing or accepting gifts from relatives, can THEY really afford to pay for your mistakes? You are going through a very emotional and trying time. Don’t let their love and need to help you hurt them financially. You need to step back, and take responsibility for where you are. You don’t want to hurt the rest of your family in the process.

Most taxes, and student loans, cannot be discharged in bankruptcy. However, with debt settlement, you can end up with a big tax bill. How can this be? When a creditor “forgives” some of the debt they are owed, they have to report this to the IRS. Depending on your situation, you may owe taxes on this “forgiven” debt. Please check with your accountant or tax preparer for more information.

A quick note on things and our emotional attachment to them. Right now you are in a mess. Many people are. You are not alone. Do everything you can to avoid this, but when you reach the end, and you can do no more, let your pride go, and get your family back on a healthy road. If you need to let go of your house to have an affordable life, then let it go. Yes it will hurt. It hurt me and my wife when we let go of ours. It hurt really really bad. But, there is light on the other side. It does get better. Take care of your family.

Don’t take it personally. Millions of people are in the same situation you are right now. You are not alone! This is not the end, just a stage you are passing through. Don’t let it get you down. Remember to your creditors you are just a number. Yes, you may have been with them for years, and you feel an obligation to pay your debts. However, you cannot plan for circumstances beyond your control. The more personal you allow your creditors to make you feel, the less control you have over the situation. They plan for losses. They are trying to lose as little as possible on you. Get the best deal you can for yourself and your family. Then learn from this and never look back.

Make sure you know all your options. In getting to this point you may not have been paying much attention. This however, is not something you can ignore. For every option you consider ask yourself, “Is this the best course of action for my family? Or is this helping my creditors while dragging me along?” You have to answer these questions in your own way, but you need to know all the details of the different options. Talk to a credit counseling agency. Get information from some different debt settlement firms. Get a free consultation with a bankruptcy attorney. Make sure your decision is well informed.

What have you learned, and what will you teach? For most some unexpected disaster brought us here. Things we never could have seen or planned for. What have you learned from this? What will you teach by sharing your experience with others and with your children? Getting over this emotionally and psychologically is a lot easier if you can see the end of the process, and know that something good will come from it at the end. Don’t let others, especially future generations, get into this same trap. Learn and TEACH how to handle money, and how to try your best to plan for rainy days. Start teaching today!!

Are you at the end of your rope? Want to learn from my experience? Visit to learn more. If you are looking for a great bankruptcy lawyer please visit Bankruptcy Attorneys.

Step One To Get Started – Fix My Credit

Posted on 12 April 2011 by

There are many variables when trying to differentiate between credits counseling vs debt settlement but in this article we’re just going to discuss the glaring differences between the two and the main factors that you should be considering when you’re weighing out the pros and cons of both.

What’s in your budget? The purpose of credit counseling is to get you into a DMP, or a debt management plan, and most credit counselors, which are non profit, have a suggested monthly service donation of $40 to $60. So in the long run credit counseling may cost you more but debt settlement also comes with its monetary risks and disadvantages because when you enroll into a debt settlement program your payments stop to your creditors and your creditors may choose to sue. Although some debt settlement organizations will charge you an upfront fee and can also have monthly service fees, credit counseling, in general is the more costly route.

How is this going to affect your credit? Credit counselors report that credit counseling and their DMPs do not have a negative effect on your credit rating. That may be true, your score may not be lowered as a result of credit counseling but it will show on your credit report that you are or were in some sort of credit counseling. A debt settlement program on the other hand will have some negative effects on your credit report because the purpose of the debt settlement program is to stop making payments to your creditors, instead you stock pile your funds for a lump payment. Credit counseling is the definite better choice if your credit is your highest priority.

It is very important to understand that once you get begin to fix your credit, you will need to access your credit reports several times to see if the work you or your credit repair professional has implemented is working. On average every third to fourth month after a request has been made to either the creditor or bureau, will be a good time frame to access new reports to see if corrections have been made.

You get a better chance to build a good credit history through business cards. Once you start paying the bills within due date, it creates a good impression in front of the lenders. They will find no hesitation in offering you a better deal in the future.

There is a great feeling of accomplishment when you begin to see negative items on your credit report removed or deleted. By having previous reports you can reference, you will know how long your credit repair should take and reinforce your determination that you can fix your credit. Take action, stay committed and do not keep repeating any habits that got you here in the first place.

Step 1: Go get your credit reports. All three of them. Review the reports and validate the accuracies or delinquencies.

Next we will share with you how to implement a strategy for tackling your credit repair.

Harris Smith is a personal finance writer interested in home equity line of credit Don’t Miss Out! Debt Consolidation Consolidate Debt and Save!

Financial Wellness – You Can Avoid Home Foreclosure

Posted on 09 April 2011 by

Falling behind on your mortgage can be much more stressful and frightening than falling behind on the other bills. Most homeowners view the thought of losing their home as one of the worst things that could happen. If you are having a difficult time making your monthly mortgage payments, there are steps that you can take to avoid home foreclosure.

Develop a Budget: A credit counseling agency can help you create a budget that will give you the ability to pay your mortgage. You will determine how much money you bring in and how much money you spend each month. You will also create an itemized list of all of your monthly expenses. You can then find ways to eliminate unnecessary spending and put the savings towards your mortgage payment. This may mean cutting down on recreation and entertainment activities and learning how to be a more frugal shopper. You will develop fiscally responsible spending habits while using the money saved toward your mortgage.

Debt Consolidation: If you are falling behind on your mortgage repayments, you are likely falling behind on other bills. One way to put more money in your pocket to pay your mortgage is to enlist the services of a credit counseling agency to help you with debt consolidation. With debt consolidation, you will combine multiple debts into one single monthly payment. A credit counselor will work with you to determine how much you can afford to pay each month. The counselor will then contact your creditors and negotiate a lower payment and lower interest rate. Once an agreement has been reached, you will send your payments each month to the credit counselor who will then disperse the payments to your creditors. Not only will you benefit from one lower payment and lower interest rates, you will save money while paying off your outstanding debt. You can then contribute your savings towards your monthly mortgage payments.

Negotiate with your Mortgage Lender: Lenders do not want to foreclose on homes, but they also do not want borrowers that are always late with their mortgage payments. Once you have participated in a debt consolidation program and created a budget, you can go to your lender and try to negotiate your mortgage for a better rate. You can tell your lender about the steps you have taken to better manage your money and that you have taken measures to save money that you will use toward your mortgage payments.

If you are in a situation where you have missed a mortgage payment, it is important not to panic and get upset and depressed. By remaining calm, you will be able to think more clearly about your situation and what you can do to avoid home foreclosure. By making some important changes that will make you more fiscally responsible, you should be able to show your lender that you are dedicated to bringing your mortgage up-to-date and you have taken steps to ensure that you will have the money each month to make your mortgage payments. If anything else you can get advice from debt consolidation.

Get expert advice about debt consolidation and credit counseling from Consolidated Credit Counseling Services, Inc, a dedicated organization that provides Americans with debt management and credit counseling services.

How To Increase Your Credit Score

Posted on 17 November 2010 by

What are credit scores for and why are they important?

A credit score is an arbitrary figure that credit bureaus created that go in a file that can be reviewed by financial institutions that can loan you money. Scores range from 300 to 850. Insurance companies or banks are generally the people that look at the scores. They use the scores in order to determine what kind of insurance rate you will pay or what kind of interest rate you pay on a loan. A 700 score or better insures that you will pay the lowest rates available.

How can I see my credit score?

Credit scores can be pulled for no charge online from various sources. Just keep in mind that most of them are trying to enist you in a monthly billing program in order to monitor any changes to your report. When I want to pull my report I simply cancel before the monthly billing cycle begins.

What is the best way to raise your score?

Scores provided by the credit bureaus are figured out by a number of factors. Negative and positive items on your report are figured in to your overall score. A 30 day late payment will effect your score but a late payment of less than 30 days will not. Of course it make sense to pay all of your bills on time each month. Most negative items on your credit report will stay on for a minimum of 3 years.

Don’t close your credit card acounts. A lot of people make this fatal mistake, they think that after the balance is paid off they will close their account and their score will go up. The credit bureaus don’t see it this way. They look at your overall outstanding credit or balance against how much credit you have. In other words it looks better to have 2 credit cards with a $1000 line on each and owing $250 on one than having one card and owing $250 It’s just the way they see it.

Watch out for credit inquiries.When shopping for an auto loan shop for the best rate and make sure to combine all inquiries in to a 2 week period. The credit bureaus don’t want to see that you are always shopping for more credit.

Most card companies will raise your credit limits if you ask. Doing this will raise your score too. Credit bureaus will look favorably on this because your debt ratio will be a lot better.

If you want to have good credit you just need to use common sense. Always pay your bills early or as soon as they are due. Pay extra to the credit card companies each month if you carry balances. If you want to buy a house buy what you need and don’t go crazy. Always put 20% down payment on your home so as your payment will be lower and you won’t have to pay extra for PMI.

Do you need more information about raising your credit score? If so take a look at this website:raise your credit score Dave Stevens is an expert in showing people how to fix their credit and is a author at Freedom Credit Review

Advantages Of Getting Debt Consolidation Services To Resolve Financial Trouble

Posted on 16 November 2010 by

Struggling with finances and debts is quite stressful for anyone. Meaning that if one can find the means to change the situation, they would quickly take advantage of it. Debt Consolidation Services are quite handy for anyone who needs help in setting their finances in order. The services aim at helping one to lower payments made every month by the debtor. Interest rates are normally a pain and consolidation companies ensures that once you become their client the interest rates charged on debts will be reduced. This gives ample room for the creditor to be able to pay off the debts in good time and with ease.

Most unsecured loans have high interest rates. Debtors with securities such as houses and cars have an advantage as they could use them to secure a consolidated loan. This will enable the debtor to pay off the high interest loans that they have at a reduced cost. This makes it possible for the loan to be paid off sooner. Another advantage is that the interest rates for consolidation loans are lower compared to other types of loans. This makes it easier to pay off the loans on time.

Debt Consolidation companies pays off the debtors loan directly to the creditor. This ensures that the debtor doesn’t spend the new loan for other needs rather than paying off the outstanding debts.

Most people don’t get consolidated loans due to factors such as terms that don’t suit a debtor, or the debts scores are way off the debtors power to revive or change them. In such cases clients makes a single payment every month to the consolidation companies, which then pays off the debtors loans.

For a single monthly payment, the debt consolidator negotiates with the creditor on behalf of their clients for favorable terms and payments. The creditors can be convinced to reduce their interest rates and change terms given to the debtors. Most creditors usually agree to this.

Consolidation companies have no say if the creditors don’t agree with them. This is because they have no right to interfere with the relationship between the creditor and debtor. Some creditors don’t agree and normally use other services like collection agencies to collect the money and this can get ugly. That is why you should find a professional consolidation company who will be able to handle your financial trouble effectively.

Services offered by debt consolidators are mostly sort for by debtors who are struggling with their finances. They help ease the stress brought about by the several debts owned by a debtor. They also provide flexibility in their repayment terms, they negotiate with the debtor on the right date of payment which could coincide with monthly incomes and can also allow a client to extend the payment date for a few a days.

Debt Consolidation Services are extremely helpful to debtors and companies offering the services are there to help the creditors who are struggling financially. They assist the debtors and help them avoid getting stressed out by providing favorable terms. Dates of payment can be agreed on to make it possible to pay debts when convenient for the debtor.

Honesty is part of the deal with consolidation companies. It’s a small price to pay considering they agree to help debtors despite all the risks involved. Honesty between the two parties, the consolidators and the debtors plays a big role in their financial relationship. There are a lot of advantages that come with Debt Consolidation Services. Creditors are paid every month with no delay and the debtors mind is at ease.

For many people resolving their debt issues will require the assistance of experienced and knowledgeable credit counseling professionals to help them make the best decisions. Choosing debt consolidation services may be the best option for you, so get information you need today!