How Do You Eliminate Credit Card Debts

Category: Finance, Credit.

Having a credit card in your wallet may make you feel powerful and confident but this card could also push you into depths of despair if you do not know how to control your debts. This is a most common question asked by thousands of individuals around the world who became victims of uncontrolled spending.

How do you eliminate credit card debts? This powerful piece of plastic could turn into a monster that could eat you alive, hiding under the name" credit card debt" . The next thing is for you to stick to your decision with sincerity and commitment and you are halfway there. You can control incurring debts if you have the will to do so, and by deciding to control your debts, you are taking the first step towards your goal. In order to eliminate credit card debts, you must have a concrete plan and analyze your financial status. Jot down your existing plastic cards and the corresponding amounts you owe them so you will have a clear picture of where you are financially. This means you have to check first how much money you owe various credit card companies.

After you have the exact amount of your debts, check to see if you have enough cash in your bank accounts and other savings which you can use for your day to day use while you put your plastic money to temporary rest. If you could not eliminate credit card debts from your life, control your purchases and your use of the card. It does not mean you have to stop shopping altogether. When you pick up things you are tempted to buy, think twice or thrice before taking the item to the checkout counter. When you have a plastic in your wallet, you sometimes pick up things you do not really need. Ask yourself if you really need the item. You may tend to give in to impulsive buying and this is something you have to curb if you have to eliminate your debts.

Then you can eliminate the one with the next highest APR, and so on. If you decide to eliminate credit card debts, you can start on the card that is hitting you most, the one which has the highest APR. Do your best and plan well to catch up on your delinquent payments to avoid paying fees and fines for late payment. This way you only have one company bills to pay to and think of. Also think if it suits you to consolidate all your credit cards into one card. These are just some ways to get rid of your head- ache triggering debts, and it all comes back to you.

No method would ever be effective if you do not start the transformation within yourself. The decision to eliminate credit card debts begins in you. In the end, it is you who will enjoy a peaceful mind without credit card debts to think of every minute of the day.

If You Have Experienced A Loss Of Job Or An Injury It Is Very Easy To Become Over Loaded In Debt

Category: Finance, Credit.

If you have experienced a loss of job or an injury it is very easy to become over loaded in debt. They get hurt, or go through, get laid off a divorce and end up using credit cards to make up for the cash they don t have and end up in debt that they find hard to get out of.

This is something that happens to people everyday. Using credit cards like they were cash is not a wise solution and with the high interest rates they charge you will find it difficult to get them paid back. As I said above it is never a good idea to use credit cards to get through tough times or even as your own form of debt reduction. If you have found yourself in this situation then this article will give you some help on getting out, if you aren t there yet, maybe it will prevent it from happening to you. The high rates will just take you deeper into the abyss of debt and make it harder for you to get out. If you are in a program of debt reduction, self imposed or otherwise, you need to concentrate on figuring out ways to lower your cash outflow and the amount of bills you have to pay. For most people that file bankruptcy or looking for help with debt consolidation it is credit card debt that caused the problem.

Credit cards will do the exact opposite. Here s an example that we can look at: If a family has bills including their mortgage, car notes, insurance, and other miscellaneous expenses that adds up to over$ 2300 per month is there any possible way to reduce this? They will increase your bills and make it even harder. There are a number of ways that one could look into to accomplish this, one way is to look into a mortgage refinance that will help us refinance the home mortgage and bring the other bills into it for one low payment. If you take the time to look around you will find loans that will give you cash back, loans that you can take out against the equity in your home, loans like the one above that will allow you to combine everything into one low payment, and many other options. One of the advantages of doing this is that the mortgage loans are typically lower interest and in many cases may be written off on taxes. Just about any debt you owe can be rolled into one payment or at least combined and reduced but anything like utilities, cell phone bills, cable and the like will have to be paid separately.

You may be surprised at how much you will be able to reduce your monthly payments with a debt consolidation loan.

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Credit Score

Category: Finance, Credit.

In this age as we indulge in more luxuries than required we find ourselves going deeper and deeper into the debt pit.

There are certain ways called as debt solutions that help us to formulate ways to pay off these debts completely rather than finding ourselves bankrupt. Once we begin to incur debts they just go on accumulating thereby leading to tremendous stress in our lives. Two of the most widely accepted solutions nowadays are debt reduction and credit counseling programs. Some of these differences are: Shut down Your Credit Accounts. These two programs work towards the same goal i. e. getting rid of the debts but they have certain significant differences as well. In credit counseling programs, it will be made compulsory to shut down all your credit accounts other than certain accounts like those pertaining to your business needs or those with nil or very little balances.

Completion Period. However in debt reduction programs, it is not necessary to close all credit accounts. Credit counseling services generally require much more time than debt reduction programs to pay off the debt. Cost Saving. On an average if the former takes about five years to get rid of the debt the latter will take less than a year to do so. Debt reduction programs have an upper hand over credit counseling programs in terms of costs saved. Credit Score.

This is because while in debt reduction programs you may have to pay a sum of about 20% - 60% of the amount owed, credit counseling programs will require you to pay the entire amount owed with a small discount in terms of interest waived. In debt reduction programs, details about the difference between the settlement sum and the amount owed called the deficiency balance may be sent to the credit bureaus by the creditors. Thus debt reduction programs affect your credit score much more as compared to credit counseling programs. This is regarded as a degrading aspect. Bargaining Power. It is then dependent on the creditors to accept or reject his plan.

In credit counseling program, the credit counselor formulates a plan to repay the debt and submits it to the creditors. However, in a debt reduction program the creditors will be intimated about your inability to completely repay the debt and the creditors have no choice other than to bargain to get back as much disbursement as possible. Thus both programs have their own pros and cons.

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Making Payments On Time Will Improve Your Credit Rating

Category: Finance, Credit.

If you have a regular income and are 18 or over then you may be able to get a credit card.

Card companies often charge an annual fee. You will probably get offers through the post but even if you do you will still have to show that you are worth giving a credit card to. Some card companies will not charge the annual fee if you have a good enough credit history. Having a card with a low or no annual fee, a low or naught percent APR that gives you customer rewards is the best possible type of card. The best card for you to have is one where the total of the different charges is as small as possible. Beware though, some card companies charge a processing fee for the instant approval.

You should particularly compare the rewards and benefits on the instant approval cards with the more traditional cards. It is also a good idea to compare the different reward schemes and benefits offered by the various cards. If you are not going to be better off with an instant approval card then why bother applying for it? They may require other information as well but these three are required by all banks and credit card companies to enable them to do their initial checks. All banks and credit card companies will need your name, address and national insurance number. At times you may need to get a credit card, or use one you already have, to build up your credit rating.

If all else fails, you may be able to get a secured credit card. Making payments on time will improve your credit rating. These cards differ from normal credit cards as they only allow you to spend the amount of money you have at any one time. The down side is the credit card companies may charge you which will replace their lost income from interest charges. The advantage is you should not get into debt as you are only spending what you currently have. It is important with credit cards to pay more than the minimum payment as this will reduce the overall cost of your credit by a large amount. Try not to fall into their trap.

Many credit card companies set their minimum payments low to ensure customers do not pay off their credit. Credit cards are good but shop around for one that meets your needs and try to pay as much as possible off each bill to keep the cost as low as possible and to avoid debt.

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I Signed A Credit Application And Told Her To Go For It

Category: Finance, Credit.

If you want to get approved at the best possible terms when buying a car, it s important you know a car lender s credit guidelines before you apply for credit. especially if you re bankrupt. Step 1 in making a lease or buy decision is to determine a lender s credit guidelines.

It will save you time and frustration- but more importantly, it will help you avoid credit inquiries that may lower your FICO credit scores up to 12 points per inquiry. You start by asking if they lend to people with a bankruptcy. That s right. If so, on what terms? You have to be upfront that you ve filed bankruptcy. We have to face the fact that some dealers just won t work with people who ve filed bankruptcy. Don t hide it.

So our job is to find the ones that do. Others will only offer purchase financing. Some lenders will only lease to people with a bankruptcy. Yet still others will only lend using a hybrid of the two- this is especially common in Texas. And here s a quick tip for you: if your bankruptcy doesn t appear on the credit report your lender pulls- then, in the eyes of the lender, you re not bankrupt. Ask the finance director at the dealership to direct you as to what structure the manufacturer prefers. The only lenders I would consider using are: - First choice: Captive lenders( car manufacturers) - Second choice: Banks( not finance companies) - Third choice: Credit unions.

Just one was leased by a bank. Ninety- nine percent of the cars I ve leased over the years have been with captive lenders. That particular deal came from a conversation I had with Amy, the finance manager at the local Land Rover dealership here in Indianapolis. I told her my current FICO scores. I told her I was open to her financing recommendations, but I preferred financing through the car manufacturer. She immediately said that with my scores she could do better through a local bank.

The next day I signed a lease agreement with that local bank. I signed a credit application and told her to go for it. Being open to her advice literally saved me hundreds of dollars a month on that car. It seems most car dealers call all of their funding sources banks. So be flexible. but be careful. When in reality some are banks, some are credit unions, and most are sub- prime finance companies. You want to pass on the sub- prime finance companies- unless you have exhausted all other options.

Here is a list of some of the most commonly used sub- prime auto finance companies: HSBC Automotive Capital One AmeriCredit WFS Financial. Sub- prime lenders should be your last resort. How do you find out if a credit union reports to all three credit reporting agencies? And only use credit unions if they report to all three national credit reporting agencies. Simple- you ask. And after you get the loan, check all three of your credit reports and make sure their trade line appears on each one.

Ask the branch manager at the credit union if they report. The three worst luxury captive lenders to lease or purchase from after bankruptcy are: BMW Mercedes Porsche. What makes these the worst? The three worst mainstream captive lenders are: Honda Kia/ Subaru Toyota. Once these lenders see that you ve filed bankruptcy, they are less likely to work with you. Now that I told you how bad the above six lenders are- there are times where they may offer you good deals. However, if they are willing to work with you, they ll want you to be at least several years from discharge and have perfect credit during that time.

For example, if one of the above happens to be the biggest dealer in your area, they may be able to offer you special deals that a smaller dealer can t. They change their credit guidelines on a whim to meet their own financial goals. Of course, things change all the time with captive auto lenders. So, it s always a good idea to at least research these dealerships- just don t get your hopes up too high. Step 2 in making a lease or buy decision is to purchase your FICO credit scores. OK, so you ve done your research and narrowed down your choice to one or two car manufacturers. It s important you have your most recent scores when you talk to car dealers( just like I did with Amy) .

When you enter a dealership with your FICO scores, the dealer will know you re a more informed consumer and cannot be taken advantage of. It puts you in charge. Just know that the FICO credit scores auto dealers use are a little different than what we see as consumers. The good news. these FICO scores may be higher than your normal FICO scores if you paid all previous auto loans as agreed. The scores the dealers review are called FICO Auto Industry Option Scores. Some car dealers have told me that if your FICO scores are higher than the scores the dealer reviews- they may even use your scores to get a better deal.

Step 3 is to interview the remaining car dealers on a deeper level. You can buy your scores from myFICO. com. Start by asking them these questions: - Which credit reporting agency do you use to make a lending decision? - What is your minimum credit score requirement to get approved? - What credit score is needed to get the best interest rate? - Do your lenders prefer offering lease or purchase financing to a bankrupt debtor? - What incentives are there to lease or purchase right now? Evaluate your options and incentives. At this point it s important to remain open to either leasing or purchasing. Remember, you re buying the financing. I personally view the lease versus buy decision in three ways: If you re recently recovering from bankruptcy, the only thing that matters is if you can get approved at an interest rate you can afford through a lender that reports to all three national credit reporting agencies.

In other words, the most important factor is the willingness of the lender to loan you money. So you should only consider lenders that are bankruptcy friendly. Obviously, you should choose the lender who uses your highest FICO credit score to make a lending decision. Once your credit scores begin to increase, you can start selecting cars based on which credit reporting agency the lender uses to determine if you qualify. When your scores are high enough. or two years have passed after your bankruptcy. or your bankruptcy doesn t appear on the credit report the lender uses, then you can choose almost any car you like. But make sure you still do your research and use your credit scores to help you compare interest rates, terms and incentives.

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Quit Using The Credit Cards

Category: Finance, Credit.

Accumulating out of control credit card debt is one of the most common consumer pitfalls in the country. Credit card debt can be a serious burden and one that many people flounder beneath.

Using a credit card to pay for something now seems so much easier than to wait until you have hard cash or money in your checking account later. It can difficult and discouraging to see no end to the burdensome interest payments of a high- interest credit card. There is a solution. Yet, not all hope is lost. You can use the following three- point strategy to deal a deathblow to your overwhelming credit card debt and find financial freedom along the way. This is a mandatory first step. Quit using the credit cards!

Don t use them anymore. All of those unnecessary expenditures that you make each week that seem so natural have to go if you are going to see the light of day, financially speaking. The idea behind this is to halt the debt cycle so you are not adding more debt by making more purchases. Pay more on your card balance. The reason you should pay more than the required monthly payment is interest. Why should you pay more?

Your card s interest rate is a major liability because you are paying so much of it each month and not really touching the principal amount. This will continue to be the case and you will not make any meaningful progress to eliminate your credit card debt. With an inflated credit card balance, you will spend all of your time paying interest, which leaves your balance basically the same after you ve paid it. Pay a set amount above what the minimum balance is and do it consistently. Your desire to remove the burden of credit card debt is doomed failure if you do not deal with your spending habits. Revolutionize your perspective on spending. It does not matter if you are able to implement the first two points of this strategy if you turn around and undermine them the next month, by how you spend.

The credit card is best seen as an emergency fund rather than a regular resource. It can be tempting to use your card on those" insignificant" purchases again, if you have paid the balance down. If want to make the strategy work over time, you will need to examine how you use your cards now and find out if there are ways to use regular money sources or even avoid the purchase entirely. We all want something now without having to wait for it. With a ready source of funds that you were not required to earn at a job, it is not a surprise that many turn to credit cards to fulfill their material whims. Since this is a habit that is hard to break, using the three- point strategy will be challenge that requires you to have perseverance and patience. Results are achievable and the potential for total financial freedom is there for the taking for someone who hates bearing the yoke of debt month after month.

Do not give up to quickly.

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The Important Thing Is To Not Run The Client S Credit Multiple Times

Category: Finance, Credit.

Interviewed by Dan Clemente. Why did you start US Unsecured?

May 17, 2008. Antonio: I will not name names, but I found that most unsecured lending companies were charging outrageous application fees. I decided, why not create an affordable solution? Some where even near$ 1200, and there was no guarantee of their services. Naturally banks are tightening up and finding an unsecured loan is getting harder, so an application fee must be charged to cover overhead, but what I was seeing was ridiculous, especially at a time where unsecured loans were being handed out like candy. Antonio: The biggest enjoyment for me is making a difference in someone s life. What is your favorite aspect of the lending business?

Many clients come to us that have been denied, or are being proposed an ugly loan with ugly terms. The second biggest enjoyment for me is analyzing the deal. Sometimes I feel like we could charge three times what we do and still provide greater value. When a client comes to me, his numbers are usually scattered. And now every bank expects something different. Maybe he has a business plan, but he does not always know what the bank expects.

Small banks will not lend as graciously as large banks will. Banks change their standards every week, and unless you are working in this business and in the constant" know" , it s like enrolling in college at a foreign university where everyone is speaking a foreign language. But then there are banks like Bank of America, which just tightened their standards as to exclude all no document loans. Why do your clients need US Unsecured? Luckily our volume of customers from all over the US helps us to stay informed and keep the relationships we have with all of our lenders active. Antonio: As I stated in the last question, the standards of individual banks are changing at a pace that is almost faster than our company can keep up with. Once you accept a loan or line of credit and begin spending, the deal is in place, and whatever terms you agreed upon you are stuck with.

I cannot count how many situations where my employees have practically relayed a situation cringing to me about how a client was almost sold into a loan which demanded their entire retirement plan as a down payment and was structured over half as long as a term as what we could achieve. We act as financial consultants for small businesses and people. Even Donald Trump has employees which find the best financing packages for him. What is the general philosophy of US Unsecured? In the long run, it is cheaper than accepting a loan with the wrong terms, or worse not achieving financing. Antonio: We try to be adaptable to change.

The financing process is not immune to adversity. Just because a client has been denied or seems like a hopeless case, we do not give up. Just because the banker of a client has said no does not mean that we cannot get one of our lenders to say yes. We do not advocate this position with our clients, but you get my idea here. Kernel Sanders was denied over seventy times by different banks before someone said yes. The important thing is to not run the client s credit multiple times.

Our database of lenders understands how we operate, and do not run a client s credit until that client is ready to accept the offer that is only resting yet upon his credit score. If Joe Schmoe wants to try to get financing from multiple banks, he will have multiple inquiries on his credit as a result, which will decrease if not eliminate his chances at financing for at least another four months. Many people do not realize that a credit report they pull off freecredit. com is a consumer credit report, and may differ wildly from the" hard" credit report pulled by a bank. Antonio: My advice would be to find a good credit repair company that can remove bankruptcy, and other related, foreclosure misfortunes. If there was any general advice you could give to those experiencing the current mortgage crisis directly, what would it be? Often times a borrower will find that he is paying more on his house than it is worth. The advice given largely depends on the financials of the individual.

Many people for this reason simply walk away from their homes. The crisis will get slightly worse, but with the rising price of oil and the inflation of the dollar, we are bound to see the price of homes increase in the near future. Antonio: Thanks Dan. Thank you for time Antonio.

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