Archive for July, 2009
What is Consumer Credit Counseling?
Peter Kenny asked:
There are times when consumers need help with their debt. While there are many ways to get help, one of the most effective is to use consumer credit counseling services. These organizations and agencies can go by different names. You may hear of them as debt consolidation or debt management companies.
These types of consumer debt agencies and companies have been around since the early 80′s when banking laws changed and credit card debt soon after became far easier to accumulate. Because so many people were getting so far into debt and were having problems meeting even the minimum payment requirements, the banks began to take some action.
Back then the only real course of action for indebted consumers was to file for bankruptcy. This was bad news for both the consumers and the banks. As an option to bankruptcy, the banks helped to establish and fund consumer credit counseling organizations. By doing this, they were able to recover their money as well as help out those who were in financial trouble.
Over the course of time, two types of consumer credit counseling companies have come about. One is the non-profit type organizations that help consumers to make budgets and to communicate with lenders. The other type is a for-profit enterprise that can do budgets as well but they usually offer more in the way of actually dealing with the debt problem.
It is not uncommon for consumers to become confused when they are looking for help with their debt issues. It is also become more common for consumers to get ripped off by bogus credit counseling companies, which makes it imperative that consumers investigate a company before they sign on with one.
Before signing on with any company, you should spend some time thinking about what it is that you need from the company. If you are looking for a debt consolidation loan, you would do much better to work with lenders who offer those types of loans. In some cases, this can mean your local bank or some other highly reputable lender.
If you are a consumer who has too many credit bills coming at the end of the month and you are constantly falling behind with your payments, you may not be able to get a debt consolidation loan and your better choice might be to work with a company that can help you get better interest rates from your creditors or perhaps better payment terms with the companies. As you can see, these are two different approaches, requiring the skills of two different type companies.
It is unfortunate but there are some companies out there who tout themselves as credit counselors or credit repair companies who are in the business not to help you but to make a profit off of you. Some of these companies want you to pay a high advance fee before they will do anything for you. Others will take the money you send to them for payments and use it for other purposes, which is basically fraud. Yet others will set up debt programs for you which will take decades of payments from you before you reach your goal of being out of debt.
Consumer credit counseling is a good idea for some people who in hardship circumstances, but do exercise caution when approaching companies for help. Be sure to check them out before signing on with any.
Danielle
There are times when consumers need help with their debt. While there are many ways to get help, one of the most effective is to use consumer credit counseling services. These organizations and agencies can go by different names. You may hear of them as debt consolidation or debt management companies.
These types of consumer debt agencies and companies have been around since the early 80′s when banking laws changed and credit card debt soon after became far easier to accumulate. Because so many people were getting so far into debt and were having problems meeting even the minimum payment requirements, the banks began to take some action.
Back then the only real course of action for indebted consumers was to file for bankruptcy. This was bad news for both the consumers and the banks. As an option to bankruptcy, the banks helped to establish and fund consumer credit counseling organizations. By doing this, they were able to recover their money as well as help out those who were in financial trouble.
Over the course of time, two types of consumer credit counseling companies have come about. One is the non-profit type organizations that help consumers to make budgets and to communicate with lenders. The other type is a for-profit enterprise that can do budgets as well but they usually offer more in the way of actually dealing with the debt problem.
It is not uncommon for consumers to become confused when they are looking for help with their debt issues. It is also become more common for consumers to get ripped off by bogus credit counseling companies, which makes it imperative that consumers investigate a company before they sign on with one.
Before signing on with any company, you should spend some time thinking about what it is that you need from the company. If you are looking for a debt consolidation loan, you would do much better to work with lenders who offer those types of loans. In some cases, this can mean your local bank or some other highly reputable lender.
If you are a consumer who has too many credit bills coming at the end of the month and you are constantly falling behind with your payments, you may not be able to get a debt consolidation loan and your better choice might be to work with a company that can help you get better interest rates from your creditors or perhaps better payment terms with the companies. As you can see, these are two different approaches, requiring the skills of two different type companies.
It is unfortunate but there are some companies out there who tout themselves as credit counselors or credit repair companies who are in the business not to help you but to make a profit off of you. Some of these companies want you to pay a high advance fee before they will do anything for you. Others will take the money you send to them for payments and use it for other purposes, which is basically fraud. Yet others will set up debt programs for you which will take decades of payments from you before you reach your goal of being out of debt.
Consumer credit counseling is a good idea for some people who in hardship circumstances, but do exercise caution when approaching companies for help. Be sure to check them out before signing on with any.
Danielle
What are the current lender qualification ratios for mortages?
Posted by admin in Renting & Real Estate on July 18, 2009
anon asked:
This would be for a 30 yr fixed mortgage, 20% down, with a 700 credit score? I don’t have any consumer debt, so I would just need to be concerned about the percent of gross income to go towards the mortgage, property tax and insurance.
Gregory
This would be for a 30 yr fixed mortgage, 20% down, with a 700 credit score? I don’t have any consumer debt, so I would just need to be concerned about the percent of gross income to go towards the mortgage, property tax and insurance.
Gregory
How does the Dodd credit card bill help consumers?
Posted by admin in Government on July 17, 2009
vivayvida asked:
The bill allows people to take guns into national parks, good news for families I guess?
The bill suggest credit cards access fees to those who pay off their balance every month? The bill says that no matter what the initial interest rate is (meaning it can be much higher than it is now), credit cards cannot raise their rates if someone misses one payment (but can if they miss 2). Banks get money for almost 0%, yet credit card companies can charge whatever? I do not see any advantages to this bill. I suggest that all of us who pay off our balances each month not use our cards for 3 or more days and see if anyone gets a message. We can pay bills electronically with our bank accounts. Start using cash again and save some. You spend more using credit anyways.
So why not see if we can just quit using our credit cards for a while. Our government is encouraging banks to ream us with interest and bank charges and it is touted as a good bill? Why?
What’s in it for those of us keeping the system going? Why isn’t there a lower cap on interest rates?
“Child safety is an important issue. Firearms injuries are the second leading cause of non-natural death in childhood and adolescence. (CDC, 2004) Accidental shooting deaths are most commonly associated with one or more children playing with a gun they found in the home. (Choi, et al, 1994) The person pulling the trigger is a friend, family member, or the victim. (Harruff, 1992) In the period from 1979 to 2000, accidental firearms deaths involving children declined in the U.S., aided by child access prevention laws and felony prosecution of offenders. (Hepburn et al, 2006) A study of nonnatural deaths in a large American city revealed that half of such deaths in persons from 10 to 19 years of age were due to homicide, and firearms were involved in 88% of them. (Heninger and Hanzlick, 2008)”
http://library.med.utah.edu/WebPath/TUTORIAL/GUNS/GUNSTAT.html
John
The bill allows people to take guns into national parks, good news for families I guess?
The bill suggest credit cards access fees to those who pay off their balance every month? The bill says that no matter what the initial interest rate is (meaning it can be much higher than it is now), credit cards cannot raise their rates if someone misses one payment (but can if they miss 2). Banks get money for almost 0%, yet credit card companies can charge whatever? I do not see any advantages to this bill. I suggest that all of us who pay off our balances each month not use our cards for 3 or more days and see if anyone gets a message. We can pay bills electronically with our bank accounts. Start using cash again and save some. You spend more using credit anyways.
So why not see if we can just quit using our credit cards for a while. Our government is encouraging banks to ream us with interest and bank charges and it is touted as a good bill? Why?
What’s in it for those of us keeping the system going? Why isn’t there a lower cap on interest rates?
“Child safety is an important issue. Firearms injuries are the second leading cause of non-natural death in childhood and adolescence. (CDC, 2004) Accidental shooting deaths are most commonly associated with one or more children playing with a gun they found in the home. (Choi, et al, 1994) The person pulling the trigger is a friend, family member, or the victim. (Harruff, 1992) In the period from 1979 to 2000, accidental firearms deaths involving children declined in the U.S., aided by child access prevention laws and felony prosecution of offenders. (Hepburn et al, 2006) A study of nonnatural deaths in a large American city revealed that half of such deaths in persons from 10 to 19 years of age were due to homicide, and firearms were involved in 88% of them. (Heninger and Hanzlick, 2008)”
http://library.med.utah.edu/WebPath/TUTORIAL/GUNS/GUNSTAT.html
John
Cleaning up credit?
Posted by admin in Lesbian, Gay, Bisexual, and Transgendered on July 15, 2009
Autumn BrighTree asked:
My girlfriend and I are trying to clean up our credit. We are considering bankruptcy as only a small portion of our debt includes credit card. We have tried consumer counselling, but they tell us they cannot help with like medical debt and judgements. We messed up when we were younger, and back then we really didn’t care…but now it’s affecting everything. Any help would be greatly appreciated.
Steven
My girlfriend and I are trying to clean up our credit. We are considering bankruptcy as only a small portion of our debt includes credit card. We have tried consumer counselling, but they tell us they cannot help with like medical debt and judgements. We messed up when we were younger, and back then we really didn’t care…but now it’s affecting everything. Any help would be greatly appreciated.
Steven
Federal Regulators reject a plan by banks to forgive consumer debt? Am I hearing right?
brave new world asked:
Federal regulators have just rejected a request by BANKS THEMSELVES and consumer advocates to forgive up to 40% of consumer credit card debt! Isn’t that a good thing?
Aren’t banks privately owned companies that can do what they want with their debt?
Who is the Federal Government to tell what to do with their investments – isn’t it better for the companies, the public AND the country that the banks at least get something back, rather than everybody losing their houses, cars, jobs, defaulting on their loans and declaring bankruptcy?
I am just shocked as I read this news article – could they be any more stupid?
Or do “regulators” just have connections to big shareholders who want to wring every cent possible out of us, even if it destroys the country?
And wouldn’t Obama be for it, and maybe even McCain and Bush?
Federal regulators have just rejected a request by BANKS THEMSELVES and consumer advocates to forgive up to 40% of consumer credit card debt! Isn’t that a good thing?
Aren’t banks privately owned companies that can do what they want with their debt?
Who is the Federal Government to tell what to do with their investments – isn’t it better for the companies, the public AND the country that the banks at least get something back, rather than everybody losing their houses, cars, jobs, defaulting on their loans and declaring bankruptcy?
I am just shocked as I read this news article – could they be any more stupid?
Or do “regulators” just have connections to big shareholders who want to wring every cent possible out of us, even if it destroys the country?
And wouldn’t Obama be for it, and maybe even McCain and Bush?
http://news.yahoo.com/s/ap/20081113/ap_on_bi_ge/meltdown_credit_cards
Dig – I forgot, the Federal Reserve ARE the shareholders – could they be any less patriotic?
It is time for the FR to go, and this proves it.
I case I didn’t make myself clear, I think the banks forgiving the debt would be a GREAT thing, and a far better way to deal with it than sticking the taxpayer with the bill.
Let them absorb it! They lent the money, NOT US!!!
So, you’re saying this is a phony way to pretend they’re turning a profit, and thus continue their huge bonuses? Interesting! And their shareholders and pensioners get the shaft.
Why am I not surprised? Let them do it, while reflecting in their accounting that they lost their companies billions of dollars.
Gene
What are the pros and cons of consumer credit counselling and debt consolidation?
Blk Angel asked:
Hello, I am in desperate need of some advice as my situation is just getting out of hand. I used to have a credit score of almost 800 about 2 years ago. Now I dont even bother to check my score anymore. I made the mistake of getting some rental properties with ARMS. As time passed, bad tenants, rising interest rates and a recent wedding have REALLY put me upside down. I have tried and tried everything. A couple of my properties have nearly been foreclosed on. I have tried those firms that dispute credit issues but thats not helping out. The thing is, my revolving debt is really not that bad, I only have two revolving accounts, but they are maxed out. I just need to catch up on them and also straighten out my mortgages. I have thought of consumer credit counselling and wanted to know its pros and cons, any advice would be grateful. Thanks!
Scott
Hello, I am in desperate need of some advice as my situation is just getting out of hand. I used to have a credit score of almost 800 about 2 years ago. Now I dont even bother to check my score anymore. I made the mistake of getting some rental properties with ARMS. As time passed, bad tenants, rising interest rates and a recent wedding have REALLY put me upside down. I have tried and tried everything. A couple of my properties have nearly been foreclosed on. I have tried those firms that dispute credit issues but thats not helping out. The thing is, my revolving debt is really not that bad, I only have two revolving accounts, but they are maxed out. I just need to catch up on them and also straighten out my mortgages. I have thought of consumer credit counselling and wanted to know its pros and cons, any advice would be grateful. Thanks!
Scott
What does “credit crunch” mean?
Change asked:
Does it mean that people are defaulting on mortgages, car loans, credit cards, etc? Why is the government bailing out these large financial institutions when they messed up? Will consumers be bailed out from all the credit card debt they racked up too?
Amber
Does it mean that people are defaulting on mortgages, car loans, credit cards, etc? Why is the government bailing out these large financial institutions when they messed up? Will consumers be bailed out from all the credit card debt they racked up too?
Amber
Are there any lenders that will givemortgage loan w/credit scores of mid-high 500′s with state tax lien?
Posted by admin in Renting & Real Estate on July 13, 2009
metty asked:
I have been married for 2 years, we are renting, my spouse has a brand new tax lien. We really need to get into a home, we are done renting and we need the tax break. our “consumer” scores with all three major credit companies are from mid-high 500′s for both of us, i do not make more than 2500.00 month, spouse makes 3-4 times that. WE REALLY NEED TO DO this for tax purpose. THANKS FOR ANY ANSWERS.
Leonard
I have been married for 2 years, we are renting, my spouse has a brand new tax lien. We really need to get into a home, we are done renting and we need the tax break. our “consumer” scores with all three major credit companies are from mid-high 500′s for both of us, i do not make more than 2500.00 month, spouse makes 3-4 times that. WE REALLY NEED TO DO this for tax purpose. THANKS FOR ANY ANSWERS.
Leonard
Online Application | San Diego Padres® Extra Bases® Credit Card
College Credit Builder asked:
The San Diego Padres® team logo can now be featured on the Major League Baseball™ Extra Bases™ Credit Card issued by Bank of America. (www.padrescreditcard.com ). This rewards credit card is scoring big with avid baseball fans and credit card consumers across the country. Like many department stores, colleges and airlines have done for decades, Major League Baseball™ teams are now being displayed on consumer credit cards. These sports oriented rewards credit cards — a great way for fans to express their undying team loyalty – are proving to be a home run in the credit card industry.
Features offered by the Major League Baseball™ Extra Bases™ Credit Card from Bank of America include:
• No annual fee.
• 0% introductory Annual Percentage Rate (APR) on balance transfers and cash advance checks for your first 12 billing cycles.
• Earn 1 point for every net retail dollar spent redeemable for MLB™ autographed memorabilia, once-in-a-lifetime MLB™ experiences, cash rewards and travel with no blackout dates.
• Get an official MLB™ licensed jersey after your first qualifying transaction(s) using your MLB™ Extra Bases™ credit card.
During a period of economic instability, uncertainty in the stock market, illiquidity in the credit markets and the softening real estate market, one thing remains constant – sports fans are crazy about Major League Baseball. Historically, baseball has given the public something to believe in and something to hope for, particularly during difficult economic times. With the MLB™ Extra Bases™ credit card, Padres fans can be reminded of their favorite team every time they take out their wallets. Real fans carry the card with pride. Visit www.padrescreditcard.com to complete the credit card application online in a few short minutes.
http://www.articlesbase.com/baseball-articles/san-diego-padres-credit-card-major-league-baseball-extra-bases-mastercard-626568.html
Jonathan
The San Diego Padres® team logo can now be featured on the Major League Baseball™ Extra Bases™ Credit Card issued by Bank of America. (www.padrescreditcard.com ). This rewards credit card is scoring big with avid baseball fans and credit card consumers across the country. Like many department stores, colleges and airlines have done for decades, Major League Baseball™ teams are now being displayed on consumer credit cards. These sports oriented rewards credit cards — a great way for fans to express their undying team loyalty – are proving to be a home run in the credit card industry.
Features offered by the Major League Baseball™ Extra Bases™ Credit Card from Bank of America include:
• No annual fee.
• 0% introductory Annual Percentage Rate (APR) on balance transfers and cash advance checks for your first 12 billing cycles.
• Earn 1 point for every net retail dollar spent redeemable for MLB™ autographed memorabilia, once-in-a-lifetime MLB™ experiences, cash rewards and travel with no blackout dates.
• Get an official MLB™ licensed jersey after your first qualifying transaction(s) using your MLB™ Extra Bases™ credit card.
During a period of economic instability, uncertainty in the stock market, illiquidity in the credit markets and the softening real estate market, one thing remains constant – sports fans are crazy about Major League Baseball. Historically, baseball has given the public something to believe in and something to hope for, particularly during difficult economic times. With the MLB™ Extra Bases™ credit card, Padres fans can be reminded of their favorite team every time they take out their wallets. Real fans carry the card with pride. Visit www.padrescreditcard.com to complete the credit card application online in a few short minutes.
http://www.articlesbase.com/baseball-articles/san-diego-padres-credit-card-major-league-baseball-extra-bases-mastercard-626568.html
Jonathan
Arbitrary Closing of Credit Card Accounts?
Evelyn C asked:
One of my credit cards sent me a letter stating that due to “inactivity”, the account was going to be closed. Period. No opportunity to re-initiate account use or anything. Its being closed and nothing can be done about it. Problems:
One of my credit cards sent me a letter stating that due to “inactivity”, the account was going to be closed. Period. No opportunity to re-initiate account use or anything. Its being closed and nothing can be done about it. Problems:
1) can’t find jack about this in the account terms and conditions,
2) can’t even get access to account terms and conditions on account’s website,
3) the closing of the account will damage my credit score, and
4) the closing of the account will deprive me of the available credit in the account.
3) and 4) are clearly injurious to me as a Consumer, through no fault or action of my own. The account is in good standing, zero balance, with no late payments ever made, and is about 6 years old.
How the F&^% is this legal?!
Laurie