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 January 15, 2010
Did you just received the dreaded layoff notices that are being distributed all across the country? It seems as if no industry is invincible. Hospitals, schools, auto factories, construction companies, and retail stores, are all cutting back costs. Unfortunately, that means a rise in unemployment. If you are laid off from your job, as opposed to fired, you will get unemployment benefits. Nevertheless, these benefits do not equal your former paycheck. For that reason, many unemployed Americans are concerned with debt. It should be a concern of yours too. Luckily, you can take steps to avoid it.
So, how can you avoid debt after being laid off from your job?
Determine how much you have available to spend. After getting your first unemployment check, you will know how much you will get each week for the remainder of your allotted time. There are four weeks in each month. Therefore, if you receive $300 in unemployment, your monthly income is now $1,200. This is how much you have available to spend. Most laid off workers who fall into debt do not take the time to know how much money they have available each week or each month. Instead of trying to live within their means, they continue with their normal spending habits. Only, they aren’t brining home a normal paycheck.
Make a list of your monthly necessary expenses. These are limited only to things you need. They include rent or mortgage, car payments, auto insurance payments, gas, and food. As for your utilities, aside from heat, electricity, and water, only include your phone right now. Television and internet are nice, but should be looked at as extras. We will focus on these in a minute. Returning back, total your necessary expenses for each month. For example, rent is $400, electricity including heat is $150, auto insurance is $100, gas is $40, and food is an average of $200. Right there is $890. Subtract that from the above mentioned $1,200 a month and you have $400 left. Remember, this total will fluctuate based on your savings and unemployment benefits.
Eliminate impulse purchases by tracking your spending for one or two weeks. Above, you created a generalized monthly expense list. You based this on the necessities, such as rent or mortgage, utilities, car insurance, car payments, and food. Many Americans waste money on unnecessary purchases and impulse purchases without giving it any thought. You need to give it thought. Be aware of your spending. Buy a small pocket notebook from the dollar store and carry it and a pen with you everyday for one or two weeks. Each time you spend money, even on a coffee, write down the purchase. Review the list at the end of the week. What could you do without or make alternatives for? Instead of buying a coffee from Starbucks or the local gas station, make yours at home and so forth.
Cut back on extras at home. As previously stated, aside from heat, water, and electricity, you should only include your telephone as a necessary utility. Television and internet is nice, but not necessary. Luckily, you should still have money leftover. Unfortunately, it may not be enough to cover the current cost of your television, internet, or cell phone bills. If that is the case, try cutting back before doing without. Practice talking on your cell phone less and lower your minutes or replace your landline with your cell phone. Do without the movie channels and lower your cable or satellite bill. For internet, revert back to dialup or see if a lower and cheaper internet speed is available.
In short, the best way to avoid debt after being laid off from work is to live within your means. You have less financial resources, so you can no longer keep your former spending habits. As soon as you receive an exact dollar amount for your unemployment benefits, create a budget. If your expenses total more than the funds available, work on cutting costs. Do so and you will avoid debt.
Popularity: 2% [?]
by BlondieWrites on January 4, 2010
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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 December 1, 2009
Were you recently laid off from work? If so, you may be in financial distress. Even those who collect unemployment benefits barely find themselves scraping by. If you are one of those individuals, you need to make significant cutbacks. What might those cutbacks entail?
Sell your house. If you live in a home with an expensive mortgage that you cannot afford and if you do not anticipate finding a job in the next two or three months, get out now. Try to sell your home before your credit is severely impacted. Luckily, the housing market is starting to slowly improve in many areas of the country. Layoffs are increasing in frequency, but many Americans still have their jobs and can get a loan. List your home for sale based on its last appraised value or fair market value. Don’t sell yourself short, but middle class family homes, in the $75,000 to $150,000 range are easier to sell.
If you have been trying to sell your home and cannot, do you have extra room? If so, rent out a room. Do backgrounds check and check references. This can help offset the cost of a mortgage you cannot afford. In addition, right now many Americans have steady income, but poor credit. These Americans cannot get a home loan, even though they could likely afford one. For that reason, consider renting your home. This is ideal if your house is too big, but do not feel comfortable living with a stranger. Use the incoming rent to pay the mortgage. Use your spouse’s income or your unemployment check to pay rent on a much smaller and cheaper apartment.
Find a new apartment. If you are renter, as opposed to a homeowner, is your rent too expensive? Can you no longer afford it or will you barley be scraping by? If so, look for a new place to live. If you have children, you may want to keep them in their same schools. This is good, but live where you can afford. A city may have an average rent of $1,000. However, fifteen minutes away a smaller town may have an average rent of $500 a month. Due to the poor economy, many landlords are releasing tenants from their contracts with appropriate notice, such as 30 or 60 days.
Sell your car and buy a cheaper one. Your best avenue is to sell the car outright yourself. List it for sale in newspaper classified sections, Craigslist.org, and other places online. Consider the value of your car. Set a fair selling price, but make sure you have enough to payoff the rest of your automobile loan and buy a cheaper, used car. Driving around a used “old clunker,” may not be what you had in mind, but you can find quality used cars for $1,000 to $5,000. Right now, you need something that runs and gets you from point a to point b. As for just selling you car, this isn’t recommended. Even if there is public transportation in your area, remember the poor job market. When find a new job, it may be two or three town away.
Look at the cost of your landline and cell phone. Do you have both? Many see success with replacing their landline phones with cell phones. If you can’t, practice talking on your cell phone less and lower the minutes. If you can get out of your cell phone contract without large fees, do it. Get a prepaid phone and use it for emergencies only.
Lower the cost of your internet. Many times, internet access is considered an extra. Yes, it technically is. However, it is now a job search tool for you. If actively looking for a new job, you need internet access. Don’t cancel yours. Instead, look for cheaper lower speed packages or opt for dial up access instead.
Lower the cost of your television. If you have internet access, consider doing away with your television altogether. You can get your local news and weather online. If you want television, get the local channels only. You don’t need one hundred or more channels, many of which you never watch. Luckily, most shows are now streamed online for free. In addition, the season DVD will soon be released on Netflix. Speaking of Netflix, if you do away with television, consider a subscription. For less than $20 a month, you can get unlimited movies with three movies at a time!
The above mentioned lifestyle changes may sound significant and impossible to make, but remember your financial situation. You were laid off from work. It may be one month before you find a new job, but it may be one year or more. Don’t fall victim to debt, take charge now.
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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
The college years are a time of learning, and a time for young adults to get a sampling of what it’s like to be out on their own. They are also a very expensive time for parents. By the time they pay for their children’s education, there’s often little left over to help with their living expenses.
Perhaps it’s best for college students to fend for themselves, to some degree anyway. When they’re done with their schooling, they will be out in the real world, so it’s good for them to start learning how to manage money. The college years are a prime opportunity for them to learn how to budget and live within their means before it becomes mandatory for them to do so.
As parents, we are in a position to help our children learn to manage money wisely. But many times it’s just too easy to throw them a lifeline if they have trouble. Here are some tips for teaching university students financial responsibility.
* Strongly encourage your child to do work study or get some other part-time job. While it’s important that college students have time to concentrate on their studies, it’s also important that they learn to support themselves to some extent. Even if they just work for a few hours on the weekends, it will foster good habits and help them earn some money.
* Help them find ways to save money. Encourage them to get a meal plan (and use it) instead of eating out. Find sources for inexpensive used textbooks. Point out sources for discounted clothes and other necessities. This will help them get what they need for less and show them the benefits of being frugal.
* Carefully consider whether or not to help them get a credit card. Credit cards can be very handy in emergencies, but they can also present temptation to overspend. If you feel that your child is responsible enough to use a credit card wisely, you could get a card in his name on your account or co-sign for him to get one of his own. But it’s a good idea to make sure it has a low spending limit, and to encourage your child to pay it off each month.
* Consider a prepaid card as an alternative to a regular credit card. Parents can get prepaid credit cards for their college students and reload them with their own money. If you want to help your child with expenses, you could add a certain amount to it each month or each week. And if there is an emergency, you’ll have a way to get money to your child quickly and easily.
Young adults who learn to live within their means during the college years are better equipped to make it on their own after they graduate. As parents, it’s our job to help them become more independent while helping them develop the right attitude toward spending. These tips can help achieve that.
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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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