Posts filed under 'Credit Issues'
Financial insolvency is often described as a lack of ability of a company or a person to pay back the financial obligations owed to a credit granter. When filed, the guarantor (you or your firm) is obligated to give up all non-exempt real property and inventory for sale. While personal possessions are retained, you will likewise pledge a bound portion of your realized income to the creditors based on a structured repayment agreement. Your credit report scores will go very low for ages, which means that you will not be in condition to acquire financing for any personal or commercial endeavor for a extended period of time.
Continue Reading September 11th, 2009
Online bankruptcy filing is only available for bankruptcy attorneys. You can certainly find bankruptcy forms online, buy software to complete your bankruptcy forms online or have your bankruptcy lawyer submit your bankruptcy forms online - you cannot actually file your paperwork with the court online.
The court will require you to submit a number of copies of your bankruptcy forms and each court has different rules for the creditor matrix as well.
Do It Yourself - If you choose to file your bankruptcy after filling out the forms yourself, you will have to research local bankruptcy rules and determine where you need to file your petition. In addition you will need to acquire a list of exemptions for your state to use to protect your property.
Representing yourself at the 341 hearing is also your responsibility if you prepare your own bankruptcy forms. This is obviously the cheapest method, but it also leaves the most room for errors and confusion.
Hire An Attorney - You can also hire a bankruptcy attorney, they will review your debts, earnings, and property, advise you on the chapter of bankruptcy that is right for you, and then prepare your bankruptcy petition and file it with the courthouse.
Your bankruptcy lawyer will represent you at the 341 meeting as well. Hiring an attorney is the easiest option for saving you aggravation, it is often high on cost - .
May 28th, 2009
Financial insolvency is routinely definable as the inability of a company or an individual to pay back the financial obligations owed to a credit granter. When filed, the guarantor (you or your company) is obligated to surrender all nonexempt assets and property for elimination. While personal assets are protected, you will likewise pledge a certain portion of your gained income to the creditors based on a structured repayment plan. Your FICO rating will go zero for years, which implies that you will not be in condition to incur financing for several personal or business organisation for a long time.
Continue Reading April 16th, 2009
This is why now you really need to suss out and escort if you can have a loan at a honorable percent rate of interest. Be clever today to check up if you have a great offer or if you don’t with the bank that offers you a credit loan. Many of the moneylenders wil show you a interest rate that looks safe but feels poorly or so after some time. A merchant bank in Biloxi Mississippi or so can have a total totally different actual loan rate for a 30000 dollar bank loan then a moneylender in Casper Wyoming and that makes a large clear difference in your yearly costs. It makes no difference if you live in Malden Massachusetts or in Miami Beach Florida a serious online investigation will spare you often lots of incommode. At this moment you can investigate rates of interest quickly at websites and get a line if there are other conditions you should know about. 6.6 percent rate may come out so just but will it stay incessant after you’re going to give back your loan.
Translated in Dutch: Woon je in Sint Anthonis of Westland en heeft u BKR codering. Lenen met en BKR codering is nog nooit zo gemakkelijk geweest. Haal snel een nieuwe auto met geld lenen zonder bkr, 152775 euro is gewoon mogelijk om te financieren. Van Grave tot Rozendaal, geld lenen met zonder BKR registratie kan hier altijd.
Inspect to see if the bank who is tending to give you a bank loan is just.
February 15th, 2009
Analyze to see if the moneylender who is willing to give you a credit loan is right. It doesn’t matter if you live in Chandler Arizona or in Fort Worth Texas a solid online examination will palliate you often lots of incommode. Be overbold today to check up if you have a super deal or if you don’t with the bank that offers you a money loan.
Translated it says: Woon je in Moordrecht of Papendrecht en heb je BKR. Lenen met een BKR notering is nergens zo eenvoudig. Haal snel een andere caravan met notering bkr verwijderen, 159463 euro is geen obstakel om te financieren. Van Maasbree tot Noordoostpolder, geld lenen met zonder BKR kan hier altijd.
This is the reason why now you need to check and cast if you can have a bank loan at a effective percent interest rate. Nowadays you can inquire rates quickly at websites and foresee if there are other conditions you should be aware of. A lot of the moneylenders wil show you a loan rate that looks acceptable but feels severely or so after a while. A merchant bank in Elyria Ohio or so can have a total different actual rate for a 15000 dollar credit loan then a moneylender in Everett Massachusetts and that makes a huge clear gap in your yearly costs. 16.5 percent rate may come out so ok but will that be immutable after you’re going to give back your deferred payment.
November 15th, 2008
A mortgage is the pledging of a property to a lender as a security for a mortgage loan for 4 percent. Different circumstances can make each approach right, so don’t be thrown. Some will quote you precise, competitive rates 11 percent. Both banks and brokers have their strengths and weaknesses. Although most mortgage experts say that rates 10 percent are pretty much the same wherever you go, give or take this tiny 6 percentage.
The Dutch translation means: Woon je in Laren of Stede Broec en hebt u BKR registratie’ Lenen met BKR is nog nooit zo gemakkelijk geweest. Haal snel een nieuwe auto met kredietverstrekkers met negatieve bkr, 323444 euro is geen enkel probleem om te financieren. Van Woensdrecht tot Tiel, financieren met zonder BKR registratie kan hier altijd.
While a mortgage in itself is not a debt, it is evidence of a debt of 6 percent. Arranging a mortgage is seen as the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full value immediately. Start with credibility. It’s not easy to know if the prices quoted by lenders are reliable. See mortgage loan for residential mortgage lending, and commercial mortgage for lending against commercial property. Many of these fees are fixed but some can be negotiated.
In other words, the mortgage is a security for the loan that the lender makes to the borrower. Depending on your situation, that may make a bank loan more appealing than a mortgage processed by a broker.
In most jurisdictions mortgages are strongly associated with loans 9 percent secured on real estate rather than other property and in some cases only land may be mortgaged. But others will claim low rates to bring in customers or tell you that the rates 6 percent offered by competitors will change.
It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed.
Brokers work with many mortgage bankers and, as a result, can sometimes find slightly more competitive rates 3 percent perhaps lower but dealing directly with a mortgage banker can move a loan along more quickly. Different lenders charge different fees. And of course, each loan and each borrower are different. Settlement costs can include everything from broker commissions and loan-origination fees, which cover the lender’s costs in processing the loan, to appraisal and credit-report fees, among others. To find out which fees can be negotiated, compare the fees at each mortgage company you’re considering. So how do you find a lender or broker you can trust’ See which lenders are charging fees 10 percent and for how much. Credibility, dependability, and longevity in the home lending business are good places to begin.
August 3rd, 2008
Credit counseling is a valuable service for consumers who have trouble managing their finances. A distinctly different service from debt consolidation, credit counseling assists consumers with problem debt by educating them about the basics of money management. Americans really don’t get the education they need about how to manage bank accounts, balance checkbooks, or pay bills on time, and credit counseling can provide these services as well as others. By educating consumers, counselors hope to reduce the number of debtors who are forced to file for bankruptcy. Anyone whose financial situation is such that they would benefit from credit counseling may wish to seek it out in a hurry, however. A number of different factors are coming together in such a way that the counseling industry may soon be completely swamped with more clients than it can handle.
Recently passed bankruptcy legislation, designed to reduce the number of consumer bankruptcy filings, will now make credit counseling mandatory as a prerequisite for a bankruptcy petition. Anyone who wishes to file for bankruptcy relief must first demonstrate that he or she has undergone credit counseling during the past six months. By requiring counseling as a condition of debt relief, Congress hopes to reduce or eliminate repeat filers. The counseling industry is preparing for the additional customers now, as the new law is set to take effect in October 2005.
Other factors will weigh heavily on the counseling industry, however. A 2003 law passed by Congress requires credit card companies to raise their minimum payments so that their customers can repay their balances more quickly. This has resulted in the near-doubling of minimum payments, and the average American household, which has a credit card balance of $10,000, will see their minimum monthly payment rise from $200 to $400. Since many households can only afford the minimum payment now, the hike in the minimum due may drive more Americans into counseling and bankruptcy.
The increased reliance upon interest-only mortgages and low-interest adjustable rate mortgages could be a factor, too, if home prices either fall or fail to increase as they have. The sky-high prices in many markets have led homebuyers to purchase more homes than they can really afford, often using mortgages that are themselves riskier than the traditional 30-year loan. Should interest rates rise or housing prices fall, tens of thousands of homeowners will find themselves with loans that either exceed the value of the home or are unaffordable.
Those in the credit counseling industry say that this is a critical time, and the combination of new laws, fragile markets, and credit card industry overhaul could push a number of consumers towards bankruptcy and mandatory counseling. Anyone with problem debt who might benefit from counseling should consider doing so sooner, rather than later, as qualified credit counselors may be quite busy this fall.
©Copyright 2005 by Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to personal bankruptcy, debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding mortgages and home equity loans.
June 14th, 2008
“Legally terminate credit card debt! You can be debt-free in 4-6 months!” Advertisements like this are for a new type of program that has spread via the Internet over the past few years. It’s called “Credit Card Debt Termination,” and victims are paying $1,000s for this bogus service. One victim I spoke with lost more than $15,000! In this article, I’ll review the principles behind this program and explain exactly why it’s a scam to be avoided.
First, let’s get our definitions straight. The scheme I’m describing here should not be confused with Debt Consolidation or Debt Settlement (also known as Debt Negotiation), both of which are legitimate and ethical methods for debt resolution. The easiest way to distinguish the Credit Card Debt Termination scam from other valid programs is based on the central claim that you really don’t owe any money!
With Debt Consolidation, you pay back all of your debt balances. With Debt Settlement, you pay back a lower amount (usually around 50%) while the creditor agrees to forgive the remaining balance. However, with the bogus Credit Card Debt Termination program, promoters claim that you won’t need to pay anything at all (except their outrageous fees, naturally). They make the surprising claim that you can legally wipe away your debts simply by using their super-duper magic documents. Based on some legal mumbo-jumbo, the claim is made that you really didn’t borrow any money from your creditors!
In order to understand this scam, a little background is necessary. Remember the tax protest movement back in the 1970s? People were claiming that the IRS tax collection system was unconstitutional, and based on their misinterpretation of the tax code, they refused to pay taxes. The IRS came down hard on the tax protest movement, and through the court system, they blew holes in all the legal arguments put forth by the protesters. The Credit Card Debt Termination scam is a lot like the tax protest movement. In fact, among collection professionals, it’s called the “monetary protest movement.”
Just like the tax protest movement, there is a common theme that runs through all of the promotional materials issued by the monetary protestors. The basic idea is that our Federal Reserve monetary system and generally accepted accounting principles (GAAP) do not permit banks to loan out their own money. Therefore, according to their interpretation, the credit card banks are the ones running the scam on the American public.
Stay with me here, because the logic is pretty strange. If a bank cannot lend its own money, how does a credit card bank extend credit? The claim here is that your credit card agreement itself becomes a form of money (known as a promissory note) the moment you sign it. The idea is that the bank “deposits” your agreement as an asset on their books, and then any credit you use is offset as a liability against that asset. In other words, the core concept here is that you literally borrowed your own money from the credit card bank.
So let’s say your balance with ABC Credit Card Bank is $10,000, which you borrowed against the card to make everyday purchases. The scam promoters say all you need to do is notify the bank that you want your original “deposit” back. However, you will permit the bank to offset the amount you borrowed against the amount you have on “deposit.” Presto! You don’t owe the balance anymore!
Now, as you can imagine, the banks don’t take kindly to such tactics. Many of the consumers using this technique are getting sued by their creditors. But the scammers have more tricks available, as if the “smoke and mirrors” financial nonsense wasn’t enough. One of their techniques is the use of bogus “arbitration” forums. Arbitration is of course a legitimate system that allows businesses and individuals to resolve disputes without going to court. What do the scammers do? They coach people on how to set up a fake arbitration forum, for the express purpose of making a dispute against their creditors! Naturally, the creditors will not send representatives to some non-existent arbitration forum, so the consumer gets to rubber-stamp their own arbitration award. If they get sued in a regular court, they present their bogus award to the judge in the hopes that the creditor’s lawsuit will be dismissed.
There are other techniques used by promoters of this scheme, but the key point to remember is the central claim that your credit card debt does not really exist. Of course, it’s all nonsense based on a misinterpretation of our monetary system, and if you step back and think about for a minute, the truth seems pretty obvious. What these scammers are saying is that the entire $700 billion credit card industry is operating on an illegal basis! Even if the legal theory used by the promoters were true (which it isn’t), do you think for a moment the government would allow this giant industry to go under? That’s exactly what would happen if the promoter’s claims were proven true and used on a widespread basis.
The Federal Trade Commission, which has jurisdiction here, hasn’t stomped on these con artists yet, but it’s only a matter of time. Unfortunately, in the meanwhile, consumers are being bilked out of millions of dollars for a worthless program that will only get them into deep trouble with their creditors. If you are approached by someone offering to wipe away your debts using this system, I strongly recommend you run in the other direction while you hold on tightly to your wallet or purse.
Remember, you can eliminate your debts if you take a disciplined approach to your finances, make a budget and stick to it, and don’t use your credit cards unless you can pay off new balances in full each month.
Good luck in your financial future!
Charles J. Phelan has been helping consumers become debt-free without bankruptcy since 1997. A former senior executive with one of the nation’s largest debt settlement firms, he is the author of the Debt Elimination Success Seminar, a five-hour audio-CD course that teaches consumers how to choose between debt program options based on their financial situation. The course focuses on comprehensive instruction in do-it-yourself debt negotiation & settlement designed to save $1,000s. Personal coaching and follow-up support is included. Achieves the same results as professional firms for a tiny fraction of the cost. http://www.zipdebt.com/article2
May 25th, 2008
Getting out of debt can sometimes seem an insurmountable task. Debt can certainly pile up a lot faster then it seems to dwindle down! Reducing your debt is never easy. It’s a procedure, one that you must follow in order to understand the problem and be sure you don’t make the same mistake twice.
Okay, you think your debt is out of control. There may have been income changes, your budget doesn’t add up, bill collectors are calling about late payments and your stress level is through the roof! Not only do you need to reduce your debt, but the stress level as well. The question is HOW?
Well, first things first. Don’t PANIC! Try to keep it all as simple as possible. Notice I didn’t mention easy, only simple! Do you have a budget set up? If not, that should be your first step. You won’t know where to cut spending if you’re not sure where your money goes!
The next item on our simplicity list would be to make a detailed list of all your outstanding debts. Not your normal living expenses such as mortgage, utilities or food, but credit card debts, personal loans etc. By detailed I mean list interest rates and balances. That way you can target the highest interest rate debt first.
Next, look through your budget or your normal spending habits and see where you can cut some spending. Personally, I always choose the grocery budget first for cutting expenses. Some of the things I did were to start making snacks instead of buying them. It’s about half the cost, and lasts twice as long. The same goes for eating out. Now don’t cut all the fun and entertainment out of your budget, you’ll be less likely to save if you’re depressed about never going anywhere.
Ways to cut grocery spending: buy generic when possible. Not all generic brands will be as good as the ones you normally buy, you’ll have to experiment here. However pasta is pasta, instead of a name brand, try the store brand. Those little savings will add up. I went from spending $275 every two weeks to under $200. That’s a $150 I was able to put towards debt. Bake snacks for the kids instead of buying them. I still pick up their favorites once in a while, but normally I will bake cookies, or a cake or cupcakes. They last longer, and at half the cost you can’t beat it! Try to have a “cheaper” dinner 3-4 times a week. If you look around you can find easy recipes that won’t take long to make and won’t murder your grocery bill. And once a week we have Pot Luck, or clean out the fridge night. That in itself saves about $10 a week. Cut eating out down to one or two nights a month. Look for restaurants that have specials, or buffet styles. If you’re not picking up a “quick” dinner once a week, you will save more money.
The next place I usually try to cut spending is entertainment. Instead of going out to the movies, rent them, or better yet to save on running around town, join an online rental place. One low cost per month, and you pick and choose your movies just like running to the video store and picking them up.
Cheap entertainment suggestions: rent movies instead of going to the movies. Cost effective for a family of 4, it’s at least $28 just for tickets, not including the $15 or so you’d spend at a snack bar. Buy the same snacks for home, popcorn , candy etc. and it’s less than half the cost. Besides, watching at home always includes the PPP factor. PJs, Pause, Potty. Make it family night, watch more than one movie or set it up where each family picks a movie for whatever night you do it.
Parks and Trails. Taking a walk or an impromptu picnic with the family is always fun. Take along a mitt and ball, a Frisbee, whatever makes you happy. A lot of fun and the best part is free, other than the gas to get there. Get a fishing license and take the kids fishing. If you don’t want to fish, skip rocks, take a walk. One cost for a whole season. If you plan on going to an amusement park , zoo, water park etc, get a group together. Call family and friends and set a day where all of you can go. Look online or call ahead, find out what group rates are per person and how many people you need to have to get a group rate. This could save anywhere from $5-$10 a ticket. Also, pack a picnic lunch when you go. Eating there will cost an arm and a leg. Set a specific amount for souvenirs and games they may have. We usually set a limit per child, and when it’s gone, they’re done. By doing it this way, it allows us to still take day trips, and be able to afford it.
Saving on utilities is not easy! There are so many things you can do to cut your utility bills down. Especially with rates rising as they have over the years, but there are small steps you can take that will decrease your bill by a few dollars a month.
Ways to save on utilities: Make sure every thing is turned off when you leave in the morning for the day. Lights, radios, TVs etc. Turn the water heater down a smidgen. Not so much that you have a lukewarm shower, but enough that you aren’t heating so much water so fast. Call your utility companies and see if they work on a budget plan. You’ll pay the same amount every month, and won’t get any surprises in the heavier usage months. Only run the dishwasher when it is completely full. Check for drafts around windows and doors, making sure you aren’t heating or cooling the great outdoors! Only heat or cool rooms in your house you are using. Close doors to unused rooms, shut the vents etc. Manage your gas usage in vehicles. Combine trips whenever possible. If I notice I need something from the grocery store, and know I have to pick up my son, I will do both at same time. Or if I have no other place to go that day, I will wait until I can run two or three errands at once. This will also save wear and tear on your car.
The last place I look for money to save is vacations! Some families cut them out all together. However we miss the family interaction and basically just all being together some place other than home! Here are a few ways to save on family vacations
SHOP AROUND! I can’t emphasize this enough. Make a decision as to where you would like to visit then look at travel agents, online booking packages etc to find the best deal. Have the entire trip planned before you leave. If you are driving, pack some snacks, drinks, lunches that are suitable for eating on the go. If you will be driving for a long period, perhaps more than one day, only eat at a restaurant one meal a day, the rest pack. Find hotels that offer free breakfast , then eat before you leave. Buy your snacks throughout the trip at a grocery store, not when you get fuel! It may take 20-30 minutes out of your day, but it’s half the cost.
Okay, we’ve looked at ways you can save some money on your monthly expenses. Now, what to do with it? Go back to the detailed list we talked about. Rearrange your list in order of the highest interest rate. Put that account at the top of your list. Make that your priority to pay off first. Remember to make ONE account your priority to pay off. If you spread your “found” money around, you won’t see results quickly and that is discouraging. Take the money you’ve saved in your budget, and apply it each month towards that bill. If you pay the principal down you’ll be paying out less in interest charges. If you keep going, you’ll have the bills paid off faster than just making the “minimum” every month.
Other ways to save on debt: Call your creditors and ask for an interest rate reduction. Some will, some won’t. The worst that can happen is they stay the same. This idea will ONLY work if you stop using your charge accounts and credit cards. Get a consolidation loan to pay off your high interest accounts. It will be a lower interest rate, and one payment. However, if you pay them all off, then rack them all back up again, you will only be farther in debt. I’m not saying to cancel your accounts, just use them wisely. When you can, make extra payments on your mortgage. If you payment is $577, pay an even $600 and send a note with payment that you want the extra $23 to apply to the principal balance. If you can manage to pay ONE extra payment on a 30 year note, it will decrease the years you have to keep making payments. It will depend on your current rate as to how many payments would be taken off. If you get a tax refund, bonus check or other income that isn’t steady, divide it up! We divide ours in thirds. 1/3 in savings for emergencies or our “cushion” fund as we call it, 1/3 towards outstanding debt, and last but certainly not least, 1/3 for family fun! We go shopping, maybe buy the things we decided not to buy last month, take the kids out to a place of their choice for the day, whatever we feel like doing!
The only way any of this will work is if you work at it! It’s not easy to change habits, but it is simple to “find” money to pay off your debt and your stress level will lower right along with your debt. As you pay off your accounts, one by one, you’ll see you have more money to put aside for vacations, rainy day funds, or savings for retirement. Make it a family project, all get involved with ways to save money and decrease spending. Let the kids have a garage sale with the toys and books they no longer use, put the money aside and when they reach a goal, let them decide where to go. It’s a great way to teach them savings habits also.
Michael Russell
Your Independent guide to Debt Solutions
April 12th, 2008
A plan for living debt free is one of the most important life plans that one has to make. For making a perfect debt free plan, one needs to pose different questions to himself/herself. The first question is if one has a full-time or part-time job. If one has a full-time job, what is the net monthly income after the deduction of all taxes? Once one has this information, they will be in a position to determine the income available in their hands for meeting monthly expenses.
Generally, monthly expenses relate to six basic elements of life including housing, utilities, telephone, food, clothing, and transportation. If all these expenses are deducted from the net income of a family, sometimes there will be some surplus cash available for savings.
Sometimes there may not be any savings at all. If the expenses are more than the income, then obviously the family needs to think about securing credit to pay the expenses. The better a family plans for reducing and meeting the expenses, the better it can maintain a financially sound and debt-free life style.
If the family has multiple debts and struggling in meeting the monthly payments, it is advisable to take a consolidation loan to become debt free. This consolidation loan will reduce the monthly payments of a family thereby giving an opportunity to save. Taking such a loan with the correct attitude and perseverance will improve one’s finances in the long term. The family will become debt free by the end of the loan period.
Sometimes framing a debt free plan needs some assistance from a consumer credit counseling organization. A family needs to set an annual frugal budget ahead of time and has to stick with it in order to save money.
Debt Free provides detailed information about being debt free, debt counseling, and more. Debt Free is affiliated with Company Debt Management Relief.
April 8th, 2008
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