There are many benefits of credit counseling. Credit counseling or debt
counseling may be one of the best options for an individual or family
caught in the ever-widening morass of high-interest rate credit cards
and other unsecured debt. A professional credit counselor will be able
to educate and coach you on how to get your debt under control, set up
affordable payment arrangements, stop incurring new debt and repair your
credit rating. A credit counseling agency will also help you negotiate
a lower interest rate on you current credit cards, and in some cases, a
lower overall balance to be repaid to the lender.
The educational component of credit counseling is critical if an
individual wants to establish and maintain a higher credit rating.
Good, professional credit counseling services are managed by financial
experts, who can steer a client in the most advantageous direction in
order to pay off his or her debt quickly and within the confines of an
affordable budget. A good credit counselor will help you to track your
earnings and expenses and set up a budget that works for you and your
family. Credit counselors will teach you how to to develop a set of
financial skills that will keep you on solid, financial ground in the
future.
One of the most critical benefits of participating in credit
counseling is the ability of a credit counselor to help you get your
high-interest rate credit card debts under control. The credit
counselor will help you to consolidate your credit card payments into
one, monthly sum. Do keep in mind that you must make your monthly
payment on time in order to ensure that your payment is credited to
your credit card account on time and in full.
Another critical component of the credit counseling process is the
ability to repair your credit score. The numerical score that you have
earned on your credit report will determine if a bank or other lending
institution will agree to lending you money in the future. The lending
institution involved could be a mortgage company, other credit card
companies or even a prospective employer. Your credit score is one of
the most important financial assets you have in today's world.
Before choosing a credit counselor with whom to work, be sure to do
you homework. This cannot be emphasized enough. There are many fine,
credit counseling agencies from which to choose and there are also,
let's just say, the less than reputable companies in the business as
well. Choose a reputable company that can demonstrate years of
successful experience and is willing to offer you references of past
clients. You may also want to check with your family and friends to see
if they have any recommendations of great credit counselors that they
have personally used. Participating in the credit counseling process
will offer you the opportunity of getting debt free in a relatively
short period of time, re-establishing your good credit and raising your
credit score.
Wednesday, May 20, 2015
Pre-Bankruptcy Credit Counseling – Mandatory Before You File
In today's economy, many people are experiencing credit problems and mounting debt that are causing adverse effects on their life. For many people in trouble bankruptcy is the best or only option for rebuilding their credit and restoring a normal lifestyle. Filing bankruptcy is a serious decision that should be discussed and understood before the decision is made.
In 2005, the US government passed the The Bankruptcy Abuse Prevention and Consumer Protection Act that requires everyone filing bankruptcy to get credit counseling and debtor education through an approved agency. All agencies must be approved by The Department of Justice's US Trustee Program, and only agencies on an approved list can provide these services. The program mandates rules in all fifty states, except Alabama and North Carolina where court officials can provide credit counseling and debtor education.
Credit Counseling:
Credit counseling must be completed 180 days prior to filing bankruptcy. Only agencies and counselors on an approved list can provide official pre-bankruptcy counseling and issue certificates of completion, so it's important to work with an authorized agency for these services. Certificates of completion are numbered and issued through an automated system to prevent fraud.
Pre-Bankruptcy Counseling:
Credit counseling sessions usually take 60 - 90 minutes and can be done in person with a counselor, by phone or online. The sessions include a thorough evaluation of your personal financial situation, a personal budget plan, and a discussion on possible alternatives to filing bankruptcy. There is an approximate fee of $50 for the pre-bankruptcy counseling session, but the certificate of completion is free. If you can't afford the fee, you can request a fee waiver with the agency. When credit counseling is completed you will receive a certificate showing proof of completion which must be filed with the bankruptcy filing.
Debtor Education:
Debtor education courses must be completed after bankruptcy is filed and before your debts can be discharged. Only agencies on an approved list can provide official debtor education courses and issue certificates of completion.
Post-Filing Debtor Education:
Debtor education courses take approximately 2 hours and can be done in person with a counselor, by phone or online. The course is designed to help you understand how to manage money better, use good credit skills, and budget your money. There is an approximate fee of $50-$100 for the course, but the certificate of completion is usually free. If you can't afford the fee, you can request a fee waiver with the agency. When the debtor education course is completed you will receive a certificate of proof of completion which must be filed with the district court where your bankruptcy is filed.
In 2005, the US government passed the The Bankruptcy Abuse Prevention and Consumer Protection Act that requires everyone filing bankruptcy to get credit counseling and debtor education through an approved agency. All agencies must be approved by The Department of Justice's US Trustee Program, and only agencies on an approved list can provide these services. The program mandates rules in all fifty states, except Alabama and North Carolina where court officials can provide credit counseling and debtor education.
Credit Counseling:
Credit counseling must be completed 180 days prior to filing bankruptcy. Only agencies and counselors on an approved list can provide official pre-bankruptcy counseling and issue certificates of completion, so it's important to work with an authorized agency for these services. Certificates of completion are numbered and issued through an automated system to prevent fraud.
Pre-Bankruptcy Counseling:
Credit counseling sessions usually take 60 - 90 minutes and can be done in person with a counselor, by phone or online. The sessions include a thorough evaluation of your personal financial situation, a personal budget plan, and a discussion on possible alternatives to filing bankruptcy. There is an approximate fee of $50 for the pre-bankruptcy counseling session, but the certificate of completion is free. If you can't afford the fee, you can request a fee waiver with the agency. When credit counseling is completed you will receive a certificate showing proof of completion which must be filed with the bankruptcy filing.
Debtor Education:
Debtor education courses must be completed after bankruptcy is filed and before your debts can be discharged. Only agencies on an approved list can provide official debtor education courses and issue certificates of completion.
Post-Filing Debtor Education:
Debtor education courses take approximately 2 hours and can be done in person with a counselor, by phone or online. The course is designed to help you understand how to manage money better, use good credit skills, and budget your money. There is an approximate fee of $50-$100 for the course, but the certificate of completion is usually free. If you can't afford the fee, you can request a fee waiver with the agency. When the debtor education course is completed you will receive a certificate of proof of completion which must be filed with the district court where your bankruptcy is filed.
Friday, May 15, 2015
Learn To Compare Mortgage Rate
If you are looking for the best mortgage rates, or want to compare the
mortgage rates anywhere you must for sure spend some time roaming
around and not simply depending on their current rates to offer them the
best deal available.
Home Price Landsliding
Home prices have been sloping down all over across America for quite some time. And consequently many people now owe more money on their mortgages than their homes are actually worth.
Some lenders have started to raise their rates so that they are not exposed to such elevated risk that has now become common within the market. Others, on the other hand, have actually started to pacify their rates instead so as to to gain a good deal of business from diligent and candidates.
So what you’ve to do in that position. Well, first of all you can get in touch with your current bank. If you currently have a mortgage then it is a good notion to ask for a gauge of what a refinance would cost you over the time period of 15 or 30 years term. At the same time you may also want to ask about flexible mortgages where the rate is possibly to change after three or five years. If you don’t want to own a house then you should inquire about an estimate for what mortgages would be given the properties you are currently looking at.
Check Out With Local Credit Union
You should also look to get in touch with a local credit union. Of course, you do need to first make sure that you are going to qualify for membership and this can sometimes be restricted to certain people working in certain industries or living in particular areas. If you do qualify then you can talk to one of the credit union officers about estimates given your current financial situation.
Of course, conducting the preliminary research on the web is certainly viable as well. There are many different online services that help you do a better and viable comparison as well. Of course, in order to get an accurate comparison and an accurate portrayal of estimates you will need to provide relevant financial information. Generally you need to keep a tab on your credit report so as to gain concise estimate of mortgages.
Given the access may mortgage dealers have to mortgage offers, accustomed with their experience in the real estate industry, working with a broker may make sense for you. However, do your research so as to avoid dealing with a cheapjack broker.
Home Price Landsliding
Home prices have been sloping down all over across America for quite some time. And consequently many people now owe more money on their mortgages than their homes are actually worth.
Some lenders have started to raise their rates so that they are not exposed to such elevated risk that has now become common within the market. Others, on the other hand, have actually started to pacify their rates instead so as to to gain a good deal of business from diligent and candidates.
So what you’ve to do in that position. Well, first of all you can get in touch with your current bank. If you currently have a mortgage then it is a good notion to ask for a gauge of what a refinance would cost you over the time period of 15 or 30 years term. At the same time you may also want to ask about flexible mortgages where the rate is possibly to change after three or five years. If you don’t want to own a house then you should inquire about an estimate for what mortgages would be given the properties you are currently looking at.
Check Out With Local Credit Union
You should also look to get in touch with a local credit union. Of course, you do need to first make sure that you are going to qualify for membership and this can sometimes be restricted to certain people working in certain industries or living in particular areas. If you do qualify then you can talk to one of the credit union officers about estimates given your current financial situation.
Of course, conducting the preliminary research on the web is certainly viable as well. There are many different online services that help you do a better and viable comparison as well. Of course, in order to get an accurate comparison and an accurate portrayal of estimates you will need to provide relevant financial information. Generally you need to keep a tab on your credit report so as to gain concise estimate of mortgages.
Given the access may mortgage dealers have to mortgage offers, accustomed with their experience in the real estate industry, working with a broker may make sense for you. However, do your research so as to avoid dealing with a cheapjack broker.
Monday, April 27, 2015
Bad Credit Auto Loans: How to Get a Car Loan After Repossession
If you don't pay your car payment for three consecutive months, your auto loan lender has the right to reclaim or repossess your automobile. There are many reasons why a borrower falls behind on their payments. In many instances, loss of employment makes it impossible for a person to continue making payments. Then again, some people buy cars they can't afford and are unable to meet the monthly obligation. Whatever the reason, a car repossession will damage your credit rating and make it harder for you to get approved for future credit. Still, there are ways to obtain a new car loan and improve your credit score.
1. Pay the Balance: Once the auto loan lender repossess a car, the automobile is sent to an auction house, and the proceeds payoff the vehicle loan. If the automobile sells for less than the loan balance, the original borrower must pay the difference. In many cases, borrowers don't have extra cash to pay the difference, and lenders report the repossession and the delinquent balance to the credit bureaus. If you want to finance a new car shortly following a repossession, it helps to develop a plan that will enable you to pay the balance and salvage your credit.
2. Wait at Least One - Two Years: Financing a car immediately following a repossession is a bad idea for several years. For starters, the lender will charge an enormous interest rate, which will increase monthly payments. If you need transportation and do not have enough available funds to pay cash for a car, financing is the only alternative. However, if possible, wait until your credit improves. There are several ways to quickly improve your credit. You could open new lines of credit and payoff the balance each month. This tactic can increase a low credit score within a short amount of time. Furthermore, paying bills on time and reducing debts is an effective way to improve credit and get approved for a car loan. Once your credit score is high again, some auto loan lenders will excuse the repossession and approve you for a reasonable interest rate.
3. "Buy Here, Pay Here" Car Dealers: After a repossession, it is difficult to obtain a loan from a prime lender. Even if these lenders approve your loan request, you'll pay hefty fees. If looking for a sub prime auto loan, consider a small privately owned car dealerships. These car dealers may provide easy financing, and offer low, comparative rates to persons with bad credit, recent bankruptcy, and repossession.
1. Pay the Balance: Once the auto loan lender repossess a car, the automobile is sent to an auction house, and the proceeds payoff the vehicle loan. If the automobile sells for less than the loan balance, the original borrower must pay the difference. In many cases, borrowers don't have extra cash to pay the difference, and lenders report the repossession and the delinquent balance to the credit bureaus. If you want to finance a new car shortly following a repossession, it helps to develop a plan that will enable you to pay the balance and salvage your credit.
2. Wait at Least One - Two Years: Financing a car immediately following a repossession is a bad idea for several years. For starters, the lender will charge an enormous interest rate, which will increase monthly payments. If you need transportation and do not have enough available funds to pay cash for a car, financing is the only alternative. However, if possible, wait until your credit improves. There are several ways to quickly improve your credit. You could open new lines of credit and payoff the balance each month. This tactic can increase a low credit score within a short amount of time. Furthermore, paying bills on time and reducing debts is an effective way to improve credit and get approved for a car loan. Once your credit score is high again, some auto loan lenders will excuse the repossession and approve you for a reasonable interest rate.
3. "Buy Here, Pay Here" Car Dealers: After a repossession, it is difficult to obtain a loan from a prime lender. Even if these lenders approve your loan request, you'll pay hefty fees. If looking for a sub prime auto loan, consider a small privately owned car dealerships. These car dealers may provide easy financing, and offer low, comparative rates to persons with bad credit, recent bankruptcy, and repossession.
10 Personal Finance Tips for College Students
1. Get a Job - Finding employment is often challenging for college students because their schedule varies, which makes it impossible for them to work set hours. However, several jobs offer flexible schedules, wherein you're allowed to work different hours each day.
2. Open a Checking Account - If looking to establish credit, don't forget to open a checking account. Even though creditors accept payments by money order, obtaining a money order is very inconvenient.
3. Open a Savings Account - One of the best ways to prove that you are financially responsible is to start a savings account. This will help you adopt good spending habits, and you'll establish a habit of self-control.
4. Apply for a Student Credit Card - Having little or no credit history can make it challenging to rent an apartment and finance an automobile. Getting approved for a student account is simple. Payback the credit card and keep balances low, and you'll establish a good credit history.
5. Keep Debts Low - Since it's so easy for college student to obtain credit, it's also easy for them to acquire a lot of debt quick. Credit card companies are sneaky, and they want you to stay deep in debt.
6. Payback Personal Loans - If your parents, siblings, or friends lend you money, make every effort to payback the money. Once you graduate from college and enter the workforce, you will likely have monthly rent, auto loan, student loan, etc. Get into a habit of paying back monies owed. This will make the adjustment into adulthood a little easier.
7. Establish a Budget - It is common for college students to blow all their extra money on clothes, shoes, liquor, and so forth. If you have disposable income, rather than spend the money on frivolous items, create a recreational budget and stick to it.
8. Spend within the Budget - Once a budget is established, practice living within your means. In other words, don't splurge on a pair of $180 jeans, especially if you're only making $250 a week.
9. Get a Secured Credit Card - If you can't get approved for a student credit card because of bad credit, consider getting a secured credit card. This usually requires a deposit, which serves as collateral. Don't worry. Once you've submitted timely payments for two years, the credit card
company will refund the deposit.
10. Become Financially Independent - Many college students depend on mom and dad for money. It's common for parents to assist their college children financially. However, if you want to prepare yourself for the future, pay for some of your own expenses. For example, if your parents purchased your automobile, you might attempt to pay the insurance, gasoline, and maintenance costs.
2. Open a Checking Account - If looking to establish credit, don't forget to open a checking account. Even though creditors accept payments by money order, obtaining a money order is very inconvenient.
3. Open a Savings Account - One of the best ways to prove that you are financially responsible is to start a savings account. This will help you adopt good spending habits, and you'll establish a habit of self-control.
4. Apply for a Student Credit Card - Having little or no credit history can make it challenging to rent an apartment and finance an automobile. Getting approved for a student account is simple. Payback the credit card and keep balances low, and you'll establish a good credit history.
5. Keep Debts Low - Since it's so easy for college student to obtain credit, it's also easy for them to acquire a lot of debt quick. Credit card companies are sneaky, and they want you to stay deep in debt.
6. Payback Personal Loans - If your parents, siblings, or friends lend you money, make every effort to payback the money. Once you graduate from college and enter the workforce, you will likely have monthly rent, auto loan, student loan, etc. Get into a habit of paying back monies owed. This will make the adjustment into adulthood a little easier.
7. Establish a Budget - It is common for college students to blow all their extra money on clothes, shoes, liquor, and so forth. If you have disposable income, rather than spend the money on frivolous items, create a recreational budget and stick to it.
8. Spend within the Budget - Once a budget is established, practice living within your means. In other words, don't splurge on a pair of $180 jeans, especially if you're only making $250 a week.
9. Get a Secured Credit Card - If you can't get approved for a student credit card because of bad credit, consider getting a secured credit card. This usually requires a deposit, which serves as collateral. Don't worry. Once you've submitted timely payments for two years, the credit card
company will refund the deposit.
10. Become Financially Independent - Many college students depend on mom and dad for money. It's common for parents to assist their college children financially. However, if you want to prepare yourself for the future, pay for some of your own expenses. For example, if your parents purchased your automobile, you might attempt to pay the insurance, gasoline, and maintenance costs.
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