by BlondieWrites on February 6, 2010
Medical debt plagues many households across the country and can often contribute to the terrible level of debt that many families and individuals are facing. While, medical debts can be erased with bankruptcy and other extreme measures, it’s important to take the time to exercise other options of debt management beforehand. The three main forms of debt management are debt consolidation, debt negotiation and credit counseling. In this article, we are going to focus on credit counseling and how finding the right credit counselor can help build a smart plan to pay off your medical debt and save your credit rating in the process.
Credit counseling is a great way to learn more about debt management and find a way to work with your medical creditors to find the best way to deal with your level of and specific kind of debt. Credit counselors should offer a variety of choices for you to work with your self or offer additional services that include them negotiating or working on your behalf.
Before you find a credit counselor, you need to understand your level of debt. First, make a list of all the medical debt you have and you should include the following information for each medical account: creditor, creditor contact information, interest rate, monthly payment and current balance. Second, take a deep breath and add it all up. This may be a hard number to face, but you need to be honest with your self and your credit counselor in order to face your medical debt head on and find a reasonable solution.
Once you are ready to find a credit counselor you should take the time to do some research to find a credible credit counseling company with reliable, certified credit counselors working for them. You should not be asked to pay for anything until the services have been completed, but you should have the opportunity to consult about what the fees will be so you can prepare for them at the end of the relationship. Your credit counselor should share all your options with you and give you the information to complete the tasks on your own, but also remind you they would be happy to complete them on your behalf if you are uncomfortable dealing with creditors. This is often the case with many people, so most credit counselors are trained to negotiate and deal with creditors.
Look on the website of the credit counseling companies you are most interested in and review their information and check for real customer testimonials. These are both important components when ensuring you are dealing with a credible company. Also, look for certifications, staff information and full contact information. When you are ready, set up a consultation (which should also be free) to go over your particular medical bills and hear the ideas and recommendations that credit counselor has, then you are prepared to start on your plan of action to get out from under your medical debt.
Don’t let medical debt set the stage for your future financial endeavors. Take a stand against your medical debts and find a way to stare them down while still preserving your future borrowing opportunities. Good credit is a privilege, not a right and needs to be earned with smart financial decisions and planning. Everyone makes mistakes, it’s how quickly you learn from your mistakes and the honest measures you take to correct and pay for your mistakes that show the kind of future borrower you can be. Take the time to learn from your credit counselor about how to make smart financial decisions and learn to live within your means. Creditors appreciate contact and payment, take responsibility by providing both and work with a credit counselor to put a plan into action immediately on your way to finding relief from your medical debt.
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by BlondieWrites on February 6, 2010
Credit card debt is the number one form of debt in the country and every day more and more Americans are finding themselves in deeper and deeper with credit card companies. When the payments seem high and many and the interest rates are beyond comprehension, you may be looking for relief. Debt negotiation can bring relief to the situation and allow you to fight for your hard earned money and still make your creditors happy.
Debt negotiation is a form of debt management that allows for the debtor or a representative of the debtor to negotiate the terms of the loan with the credit card company to reach a settlement amount and form a pay off or reduce the interest rate, thus bringing relief to the debtor. What this means for you is a way to pay off your credit card balance while saving a little money or by bringing relief to your monthly payments and shortening the amount of time it takes to pay off your balance by decreasing the interest rate.
The first step to successful debt negotiation is to know as much as each of your credit card accounts as possible. Pull out all the information for each account you have a make a short list of the following information for each account to have readily available when you call. You need to have the account balance, monthly payment, interest rate, creditor and full creditor contact information. Knowledge is power in this instance and the more you know about the company and how the company compares to your other accounts, the better the negotiating power you have.
While, credit counselors are trained in the art of debt negotiation and if you are absolutely unable to make the calls and negotiation yourself, you can find a credit counselor who offers debt negotiation services and have them make the calls for you. With that said, with a little courage and some confidence you can negotiate your own account and contracts with great success and a few tips.
Tip #1: The most important thing to remember when negotiating with your creditors is that you MUST be speaking with someone authorized to make changes to your account, otherwise you are wasting your time. Only certain supervisors are authorized to offer settlements and make changes to accounts and most people you talk to are only there for customer service and billing calls. Ask for a supervisor or account specialist before starting your pitch.
Tip #2: Put together some pay off money and know your back up bargaining chips. The best thing you can do is offer a pay out or settlement offer. To do this you need a lump sum that you can pay them to settle the debt if they agree. If you are unable to offer this, then you need to have the information in front of you to negotiate other conditions like a lower interest rate. For this you should have other credit card offers and accounts in front of you to offer what other companies are offering you. Many credit card companies would rather meet a lower interest rate, than lose your business.
Tip #3: Don’t take no for an answer. What this means is that if they don’t go for a settlement or pay out option, don’t give up. Instead ask for a lower interest rate or a loyalty credit to your balance. If they are resistant to lower your interest rate tell them you have other offers that you have been considering transferring your balance to that offer a lower interest rate. They will often at least match it, if not beat it. Even if your account is default, they would rather you stay with them and pay it than close the account and leave their company.
Debt negotiation can be a great tool for lowering your interest rates, monthly payments or finding a way to pay off credit card debt. These tactics can all bring success when partnered with a confident attitude and understanding of the credit card industry. With a little work and negotiation you can be well on your way to a life without credit card debt.
Popularity: 3% [?]
by BlondieWrites on December 16, 2009
In today’s society, we tend to accumulate debt without giving it much thought. That was once seen as a sign of severe irresponsibility. But it has become so common these days that it seems more like a matter of mimicking what we see around us than a character flaw.
With consumers getting into more debt than ever before, it’s no surprise that many have no idea just how much debt they are in. They get the bills each month, but instead of looking over the finance charges and account balance, they only take note of the minimum payment. Bill collectors might call to remind them of their balances, but those who are in over their heads often let the answering machine get it rather than talking to them.
Whether you’re managing your debt well or struggling with it, it’s important to know how much you owe to each creditor, and how much you owe all together. In this case, ignorance might seem like bliss, but it’s actually quite dangerous. If you have no idea how much you owe, it’s hard to come up with a plan to get out of debt.
If you can’t at least come up with a good estimate of how much you owe, now is the time to sit down and take inventory of your debts. Here’s what you need to include:
* How much credit card debt do you have? The balance of each card should be included on each of your monthly statements. Get out your latest ones and add them up. And while you’re at it, see how close you are to your credit limit on each card. If you’re down to the wire, you’ll need to take care not to charge any more and try to start paying it down.
* What is the balance on your mortgage, your car loan, and any other loans you have? If you don’t get monthly statements for these debts, call your creditor and ask for your balance. In the case of home and car loans, it’s also important to know how much equity you have.
* Do you have any unpaid medical bills? We often forget about these, but it’s important to get them paid because they do show up on our credit reports. In some states they can’t officially be held against us when obtaining credit, but they are there for anyone who does a credit check to see.
* What about student loans? These can haunt us long after we’ve finished college. Interest on student loans is usually relatively low, but if you request a deferment or forbearance it can add up in a hurry.
* Do you have any other debts that haven’t been paid? If you’re not sure, get a copy of your credit report. Any outstanding debts should be listed.
Once you’ve added up how much you owe, you’ll probably be more motivated to get it all paid off. The next step is to take a look at your spending habits and see where you can cut back. If you cut out excess spending and put the money saved toward eradicating your debt, you’ll get rid of it much sooner. And knowing that you don’t owe anything is truly a wonderful feeling!
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by BlondieWrites on November 2, 2009
When do you need credit repair? The moment your credit score is anything less than 600 points because this could make it difficult for you to apply for a loan.
If it just so happens that your credit score falls below the minimum, don’t panic because this issue can be resolved. Never for one moment should filing for bankruptcy become an option because this will be on your record for 10 years or so.
Credit repair may not be as bad as you think if there happens to be a mistake on your credit report. You can check on that by getting a copy for free from one of the three credit agencies namely Equifax, Experian, and Trans Union. You may request a copy simultaneously or get one at different times of the year.
Once you have it, review if there are any errors on the document. There are instances that one report will say something different.
If you know for a fact that a certain issue has already been resolved, send a request to have this changed together with a letter and the documents that prove this should be removed from your record.
But what if the credit report is real? Well, the only thing you have to do to repair your credit score is to pay it off. If you are having a hard time due to the big amount, get help from a credit counselor who can act as a negotiator and help create a debt consolidation package.
The debt consolidation package must be placed in writing as it signifies an agreement between you and the creditors. . This document will save your life should there be any problems in the future like if the creditors decide to void the agreement.
Once the debt consolidation package has been made, it is time for you to come up with the money and that usually means cutting down your expenses for the moment.
If what you are saving is not enough, you may need to make some hard choices like selling off certain valuables especially when no one will lend you the money except perhaps if you have friends that are very understanding.
When you have finished paying off your debt that could take months or even years, make sure you get a settlement letter from them and send a copy of this to the credit bureaus so this can be updated on your credit report.
There are lessons to be learned once you have successfully undergone credit repair.
First, keep an eye on your expenses. If the credit given to you is quite big, don’t be tempted to max it because you will mostly have a hard time paying for it.
Second, while most creditors will allow you to pay a minimum, whatever is left grows because of interests so you are not doing yourself any favors by not paying this amount in full.
Third, if this is something you can’t do alone, don’t be ashamed to ask for help because there are counselors ready to help you out.
Fourth, pay all your bills on time and in full.
Credit repair could have been avoided if you played it smart. Now that you are here, you have to do what is needed so it can be corrected.
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by BlondieWrites on November 2, 2009
Overspending is a mistake that a lot of people make. This is because they think that as long as it is approved they can continue to do so until it maxes out. This never ends well because they don’t have the funds to pay for what they purchased which is why consolidating credit card debts is part of credit repair.
If you think this problem is only in the US, think again because the same situation happens in other part of the world.
Credit card consolidation is very simple. You combine all the debts you owe from various creditors so you end up paying only one creditor monthly.
There are many benefits for credit card consolidation.
First, you get to pay off your debt at lower interest rates than those that are already prevailing in the market.
Doing so will re-age your account. This means that your account is current and active as long as you keep making the payments that you agreed on.
While most card companies charge you fees for being late on your payments, the credit card debt consolidation program waives that so what you will only be paying what you actually owe.
Lastly, the debt consolidation plan buys you time so you have the choice whether to finish paying in a matter of weeks or months.
When you are able to consolidate your credit card debt, the next step is to come up with the money to pay it off. You can try reducing your expenses, asking for a raise, getting a second job or selling some valuables.
So do you need to apply for credit card consolidation by going to a bank? You can course this through a bank but there are private and non-profit organizations that offer similar services. You just have to find the right one to work with and then cooperate with them.
When you are looking for an organization to work with, make sure they are legitimate because some of these are scams. This isn’t good and you surely don’t want to fall for that because you are just wasting your time and money.
Once you notice that the money you owe is getting smaller, you are already on the right track and it won’t be long before you have finally been able to do some credit repair.
There are a few things you can also do to improve your credit score. You can open a new line of credit and if the major credit card companies will most likely deny your application, get a credit card offered by supermarkets or groceries and those offered by banks.
Don’t forget to pay your bills and other expenses on time because all that hard work you have done will go to waste if you miss a payment.
The amount of money you owe to creditors took months to grow so don’t be surprised if it takes awhile before you are finally debt free. Remember, you put yourself in this situation so the only person to blame is yourself.
Credit card consolidation is just a part of credit repair. Once it is in play, honor your commitment because that is the only way that your credit score is going to improve and you will once again have good standing with your creditors.
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by BlondieWrites on November 2, 2009
In today’s slowed down economy, everyone needs to maintain a good credit status. A good credit rating means one is financially responsible enough to keep the connect between personal income and spending on a constant and realistic level. So if one suffers from missed payments, this reflects badly on one’s credit status. Enter credit repair.
This article covers some tips so you can do the credit repair yourself, so you won’t have to pay for a company to do that for you. Most of those companies offering an almost instant credit repair are frauds anyway.
Acquire hard and soft copies of your credit reports from the credit companies. It’s always better to know the lay of the land than not to know. You should be able to receive a no cost credit report per year. So avail of that. Also, when you get denied for something, you also become eligible to ask for a no cost credit report. This will give you a clear view of where you stand, and tell you how much work needs to be done. When you have the accurate numbers, you can plan ahead better than when you relied on guesswork.
Examine your own credit history, spending behavior. You have to absolutely certain all accounts are yours, that one pretended to be someone else and spent under your name. Identity theft is common and you can try to dispute the records when you think someone posed as you, over the phone or via email and snail mail. Also, once you ascertain all the accounts are truly yours, make sure they balance out. Pay up what’s still needed to be paid. Tie up loose ends.
Settle accounts in collection first, and right away. Address these first as they negatively affect your credit record. Most collection companies will take whatever you can give them, and since they’re willing to talk this out, you might as well call them and see how far you can plan your debt payment to them, before actually starting payment.
Bring your maxed out credit cards below its limit. It could take maybe two whole years for your credit status to get better when you have maxed out cards. Some companies out there actually do try to lend you a hand with this, at no cost at all. But you have to find those legitimate no charge companies yourself, else you be scammed into payment.
Ask relative to add your name to the list of users they allow to use their credit card/s. If your name appears in someone else’s credit card users’ list, that’s taken as a sign of your trustworthiness. That means you credit provided is assumed to have found out you’re financially stable.
No one said it would be easy to regain a good credit status, especially with the economy this down in the dumps. You can do your own credit repair cleanly, legitimately, but it would take some time, and some continuous, focused effort.
But the good thing is that you can do it yourself and it can be at no cost to you.
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by BlondieWrites on October 27, 2009
by BlondieWrites on October 27, 2009
by BlondieWrites on October 23, 2009
The Federal Trade Commission works hard to protect consumers against many types of fraud, including personal loan practices by dishonest lenders. The Federal Trade Commission is a government regulated agency developed to help protect consumers. Since 1914, the FTC has been working hard to be a safety net for consumers. Congress have given the FTC a great amount of authority to assist consumers.
There are several distinct divisions of the FTC including Advertising Practices, Consumer and Business Education, Enforcement, Financial Practices, Marketing Practices, Planning and Information, Privacy and Identity, Consumer Protection, and Economics. Each division has rules and regulations in place that businesses much abide by to ensure equality for consumers. The Financial Practices Division focuses on the area of personal loans as well as other types of lending issues.
If you believe you are the victim of unfair personal loan practices by a lender, it is very important that you report it to your local authorities and to the FTC immediately. Not reporting such incidents allows the predator to continue doing so to others just like you. Many people choose not to file a complaint because they don’t want to get involved with a government agency or because they are embarrassed. Consumers need to know the FTC is an advocacy and voice for them.
State laws very as to what action will be taken for those lenders who have participated in unfair personal loan lending practices. However, it is often difficult to apprehend them and take action, especially if the lender is an online predator. They move very quickly and know how to manipulate computer systems so that they can’t be effectively tracked down.
To file a complaint with the FTC about improper personal loan lending practices, you may do so online, over the phone, or in writing. The FTC will obtain as much information about the situation from you and conduct an investigation. They will look for patterns with similar reported cases. Often a perpetrator of personal loan lending victimizing has devised a scheme that is repeated over and over again in various areas, especially the internet. It is very quick and easy for such a person to change the name of their company on their website and continue the cycle.
The FTC investigates thousands of personal loan lending scams each year. The average victim loses about $450 to the scheme. The FTC is working hard to educate consumers to help protect themselves from such scams working in the first place. Make sure you are working with a reputable lender who has verifiable history with customers. You can check this information online by looking for consumer reviews and by checking with the Better Business Bureau.
Most personal loan victims are young people under 30 years of age. They often need the funds quickly and urgently, so they agree to whatever the lender tells them without giving it a second thought. Consumers need to know that it is illegal for a potential lender to charge you processing fees or bad credit fees prior to approving your loan. This is how a lot of victims get roped in. They are told by the lender that the personal loan is guaranteed, but they first must pay a processing fee of several hundred dollars.
The FTC works hard to protect consumers in many areas including personal loans. It can be a tremendous help to you for education about the types of personal loan scams out there as well as when you need to file a complaint after falling victim to a personal loan scam.
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by BlondieWrites on October 23, 2009
Obtaining a personal loan can be great, but don’t forget that monthly payment that goes with it. If you are uncertain if you can meet the monthly obligation of a personal loan, don’t take the risk. This is especially important if the only type of personal loan you are eligible for is one that is secured. A secured personal loan means that you have collateral attached to it. There are other ways to generate funds without taking out a personal loan. It will depend on the amount of money you need. If nothing else, you may be able to come up with a portion of the money, reducing the amount you need to borrow.
One of the easiest is to borrow from a friend or family member. However, only do so if they are understanding of your situation. If you will have a hard time repaying such a loan then you don’t want the relationship to suffer. Parents are sometimes willing to extend a loan with terms that are loose depending on the child’s needs and the parent’s disposable income.
Consider selling things you already own to generate funds. This can be vehicles, property, and art work, anything you have of value. You can also consider having a yard sale to earn some extra money. Every little bit you can generate will help you to avoid taking out a personal loan. Old books, especially college books and CD’s sell well on the online auction sites such as Ebay and Yahoo Auctions.
Depending on your schedule, it may be possible for you to obtain some type of work as another income source. You can do this temporarily until you have saved up the funds you are needed. This can be working on the weekends or evenings at a retail or convenience store. You may even try your hand at telemarketing. If you are going to college consider tutoring or typing papers.
The internet offers many employment opportunities that you can do from your home. There are sites that allow you to make money by typing papers, conducting research, proofreading, and even transcribing. You can do as little or as much work as you are interested in. The pay is very good as well. However, there are some work from home scams out there. Don’t sign up for any such program that requires you to send them money or purchase a start up kit.
For those of you who interact with many people socially, selling Avon or Mary Kay products can be a very easy way to generate income. You simply leave books with interested people and place their order for them. Both can be very profitable.
For most of us, simply cutting our expenses can generate a considerable amount on money on a regular basis. Consider switching to store brand soaps and shampoos rather than name brands. Clip coupons and watch for store sales. Make a menu and stick to it. Only purchase the items on your grocery list. Carpool to work to cut down on the expense of gas and vehicle maintenance. Make your coffee and lunch at home rather than purchasing it. Eat your dinner at home rather than eating out. If you smoke or chew tobacco, quit. You will be amazed at the amount of money you are able to save when you no longer purchase such products.
Applying of credit should be done so wisely. Rather than rushing out to apply for a personal loan, consider ways you can generate more income to cover the expense on your own. It won’t always be easy, but you will feel better knowing you accomplished the feat on your own. You will also avoid another monthly payment that can lead you to financial stress.
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