Archive for April, 2010
Debt Relief & Management Tips : How to Stay Out of Debt
eHow asked:
Staying out of debt requires living below means, planning a detailed budget and saving money. Keep debt at bay with tips from a consumer credit counselor in this free video on personal finance management. Expert: Maria Enomoto Contact: www.gotdebt.org Bio: Maria Enomoto works as a credit counselor for Consumer Credit Counseling services in San Jose, California. Filmmaker: Bing Hu
Anita
Method three for controlling unmanageable personal credit card debt: Consumer Credit Counseling
BulldozeMyDebt asked:
This video piece features Consumer Credit Counseling or Debt Management. It educates a consumer the way to appropriately use this procedure to reduce their unsecured credit card debt. It highlights the pros and cons along with where to acquire this sort of service. www.bulldozemydebt.com
Shane
Consumer Credit Counseling Services – Many Are Scammed, Beware!
Cornie Herring asked:
Credit counseling agencies are nonprofit organizations that intend to help debtors to resolve their debt issues by providing counseling and education on consumer credit, money, debt management, and budgeting. And, most of time, debtors are advised to enroll into a debt management plan so that they can follow the plan to work out of debt. Debt management plan proposed by reputable and legitimate credit counseling agencies do serve the purpose.
But, beware that many very attractive debt management plans offered by companies who called themselves credit counseling organizations are actually scams who are trying to cheat your money and worsen your debt situation. So, how could you avoid yourself from falling into these traps? Let go through 2 scenarios that you will potentially faced when approaching a credit counseling service which may run by scams.
Scenario 1: Propose A Debt Solution Without Analysis Your Financial Situation
When you consult a credit counseling agency, the counselor suppose to analyze your financial situation by understanding all your debts, expenses and financial affordability before he work out plan that best fit your financial situation. If you found that your counselor is not paying attention when you explain your financial difficulties and he did not ask you the questions to get further understanding on your debt problem. What he is trying to do is propose their best debt management plan to you with a number of guarantees that your debt issue will surely be resolved if you enroll into the plan.
Don’t ever trust him else you will regret once you sign up and hand over your money. And, after that found out the propose debt management plan does not fit your financial situation. Avoid yourself from credit counseling agencies that propose to your one debt management plan that fit all financial situations. They just want to earn your money without really help in your debt problem.
Approach other credit counseling agencies and get one that really care about your debt problem, educate you on the cause of your debt issue, tell you what are your options based on your current financial status and guide you on the best debt solution with or without a debt management plan.
Scenario 2: Charge You An Upfront Cost Or The Fee Is High
The rule of thumb, credit counseling services are free of charge but most debt management plan (DMP) offered by credit counseling services have certain fee. The fee of DMP should be deducted directly from your monthly payment and it should not be too high; the reasonable fee should be plus minus $50. If you are asked to pay an upfront cost during sign up with the debt management plan, then it better to reject the plan and approach other credit counseling agency.
Beside that, before you sign on the agreement for the propose debt management plan, remember to check in details for any other hidden costs. There are unethical companies hide other costs to make the plan very attractive. These hidden costs will be written in the agreement. Unfortunately, most people won’t read the agreement in details when they sign on the dotted line. If you are unclear or need more time to read through the terms and conditions stated in debt management agreement, request to bring the agreement back to home for reading and sign back to the company if the terms meet your requirements.
Summary
Reputable and Legitimate credit counseling agencies are organization that help debtors to reduce and resolve their debt problem through counseling & education. They may recommend you to enroll into a debt management plan if your case really needs one. Whereas, credit counseling agencies run by scams care more on their profits than your debt problem. You should smart enough to differential them and avoid yourself from these scams.
Wayne
Credit counseling agencies are nonprofit organizations that intend to help debtors to resolve their debt issues by providing counseling and education on consumer credit, money, debt management, and budgeting. And, most of time, debtors are advised to enroll into a debt management plan so that they can follow the plan to work out of debt. Debt management plan proposed by reputable and legitimate credit counseling agencies do serve the purpose.
But, beware that many very attractive debt management plans offered by companies who called themselves credit counseling organizations are actually scams who are trying to cheat your money and worsen your debt situation. So, how could you avoid yourself from falling into these traps? Let go through 2 scenarios that you will potentially faced when approaching a credit counseling service which may run by scams.
Scenario 1: Propose A Debt Solution Without Analysis Your Financial Situation
When you consult a credit counseling agency, the counselor suppose to analyze your financial situation by understanding all your debts, expenses and financial affordability before he work out plan that best fit your financial situation. If you found that your counselor is not paying attention when you explain your financial difficulties and he did not ask you the questions to get further understanding on your debt problem. What he is trying to do is propose their best debt management plan to you with a number of guarantees that your debt issue will surely be resolved if you enroll into the plan.
Don’t ever trust him else you will regret once you sign up and hand over your money. And, after that found out the propose debt management plan does not fit your financial situation. Avoid yourself from credit counseling agencies that propose to your one debt management plan that fit all financial situations. They just want to earn your money without really help in your debt problem.
Approach other credit counseling agencies and get one that really care about your debt problem, educate you on the cause of your debt issue, tell you what are your options based on your current financial status and guide you on the best debt solution with or without a debt management plan.
Scenario 2: Charge You An Upfront Cost Or The Fee Is High
The rule of thumb, credit counseling services are free of charge but most debt management plan (DMP) offered by credit counseling services have certain fee. The fee of DMP should be deducted directly from your monthly payment and it should not be too high; the reasonable fee should be plus minus $50. If you are asked to pay an upfront cost during sign up with the debt management plan, then it better to reject the plan and approach other credit counseling agency.
Beside that, before you sign on the agreement for the propose debt management plan, remember to check in details for any other hidden costs. There are unethical companies hide other costs to make the plan very attractive. These hidden costs will be written in the agreement. Unfortunately, most people won’t read the agreement in details when they sign on the dotted line. If you are unclear or need more time to read through the terms and conditions stated in debt management agreement, request to bring the agreement back to home for reading and sign back to the company if the terms meet your requirements.
Summary
Reputable and Legitimate credit counseling agencies are organization that help debtors to reduce and resolve their debt problem through counseling & education. They may recommend you to enroll into a debt management plan if your case really needs one. Whereas, credit counseling agencies run by scams care more on their profits than your debt problem. You should smart enough to differential them and avoid yourself from these scams.
Wayne
Consumer Credit Debt Consolidation and Counseling with LoansStore
fedrikt asked:
Get rid of debt upto 60% with Best debt consolidation company. We help you to get out of debt quickly and avoid paying high interest rates. You can try a free quote at www.loansstore.com Consolidate your debt with free non profit and consumer credit counseling services.
Ricardo
Buying Used in a New Economy – Thrift Store Sales on the Rise
Posted by admin in Shopping And Product Reviews on April 23, 2010
Albie DiBenedetto asked:
Certain costs and spending cannot be avoided. Your home needs heat, your family needs food, and your car needs gas. However, more and more people are discovering a new way to save money on items like clothing and home goods. The answer is thrift store shopping. Nearly two-thirds of resale and thrift shops like the Salvation Army, Goodwill, and consignment stores have seen increased sales over the past year. The average thrift and resale store has increased sales by 35%.
Consumer attitude and perception are changing. In this economy, many people can’t afford to turn up their noses at used and discounted products. Even those who can afford to aren’t indulging in luxuries as often as they once did. Consumers in general are more receptive to the idea of buying used or discounted products to save money. They’re out seeking deals and more hesitant to spend frivolously. Luckily, the current economy and this new perception encourage and reinforce a more frugal lifestyle. It’s becoming quite typical.
Of consumers with household incomes of $100,000 or more, nearly three-quarters report that they were cutting back their spending as of July 2008. 81% of households in the $50,000 – $99,999 income bracket say the same. Just three months earlier, these opinions were down by 4% – 9%. In the midst of the national financial crisis, few are too proud to buy used merchandise.
Search for thrift and consignment stores in your area and change your perception. You might be surprised at the money you’ll save and the quality you can find.
Marilyn
Certain costs and spending cannot be avoided. Your home needs heat, your family needs food, and your car needs gas. However, more and more people are discovering a new way to save money on items like clothing and home goods. The answer is thrift store shopping. Nearly two-thirds of resale and thrift shops like the Salvation Army, Goodwill, and consignment stores have seen increased sales over the past year. The average thrift and resale store has increased sales by 35%.
Consumer attitude and perception are changing. In this economy, many people can’t afford to turn up their noses at used and discounted products. Even those who can afford to aren’t indulging in luxuries as often as they once did. Consumers in general are more receptive to the idea of buying used or discounted products to save money. They’re out seeking deals and more hesitant to spend frivolously. Luckily, the current economy and this new perception encourage and reinforce a more frugal lifestyle. It’s becoming quite typical.
Of consumers with household incomes of $100,000 or more, nearly three-quarters report that they were cutting back their spending as of July 2008. 81% of households in the $50,000 – $99,999 income bracket say the same. Just three months earlier, these opinions were down by 4% – 9%. In the midst of the national financial crisis, few are too proud to buy used merchandise.
Search for thrift and consignment stores in your area and change your perception. You might be surprised at the money you’ll save and the quality you can find.
Marilyn
Bankruptcy vs. Credit Counseling: What Should I Do?
Tim Gorman asked:
Credit Counseling and bankruptcy are both ways to relieve the stress of debt. However, they are very different and it is important to understand both before making a decision as to which is best for you.
Credit counseling is a program designed to help those who are in a state of debt and cannot find a solution to their debt problems. They offer services that will allow you to work with a certified credit counselor to devise a plan that is tailored to your specific needs and goals. Credit counseling agencies often provide services for free and will help to educate you about how to avoid financial problems in the future by offering debt management classes or seminars. They do not erase your debt. Instead they work with you to budget money so that you can pay off the debt often times by debt consolidation. Collection will continue while using a credit counselor, however, in most cases companies who are owed money will try and work with you to help you payoff your loans. Credit counseling services often help you to reestablish credit after the loans are paid.
Bankruptcy is very different. It will completely clear your debt in most cases and you will no longer be hassled by collection agencies and their attorneys. There are two kinds of bankruptcy; the one that is right for you will depend on your situation. When filing Chapter 13 bankruptcy you are able to keep property that is mortgaged such as your house or car and are expected to repay debts in three to five years. Under Chapter 7 bankruptcy, you must give up all property and assets that you own. There are exceptions in some states for items such as work tools and household furnishings. Bankruptcy will certainly clear your debts and stop foreclosures and wage garnishments, however, you will be unable to establish credit for up to ten years. Filing bankruptcy can also be very expensive compared to credit counseling.
Take time and research credit counseling very carefully before deciding on bankruptcy as it can save your credit in the long run. Most people feel much better about themselves when they can pay off their debt and become educated about how to stay out of debt rather than filing bankruptcy.
Monica
Credit Counseling and bankruptcy are both ways to relieve the stress of debt. However, they are very different and it is important to understand both before making a decision as to which is best for you.
Credit counseling is a program designed to help those who are in a state of debt and cannot find a solution to their debt problems. They offer services that will allow you to work with a certified credit counselor to devise a plan that is tailored to your specific needs and goals. Credit counseling agencies often provide services for free and will help to educate you about how to avoid financial problems in the future by offering debt management classes or seminars. They do not erase your debt. Instead they work with you to budget money so that you can pay off the debt often times by debt consolidation. Collection will continue while using a credit counselor, however, in most cases companies who are owed money will try and work with you to help you payoff your loans. Credit counseling services often help you to reestablish credit after the loans are paid.
Bankruptcy is very different. It will completely clear your debt in most cases and you will no longer be hassled by collection agencies and their attorneys. There are two kinds of bankruptcy; the one that is right for you will depend on your situation. When filing Chapter 13 bankruptcy you are able to keep property that is mortgaged such as your house or car and are expected to repay debts in three to five years. Under Chapter 7 bankruptcy, you must give up all property and assets that you own. There are exceptions in some states for items such as work tools and household furnishings. Bankruptcy will certainly clear your debts and stop foreclosures and wage garnishments, however, you will be unable to establish credit for up to ten years. Filing bankruptcy can also be very expensive compared to credit counseling.
Take time and research credit counseling very carefully before deciding on bankruptcy as it can save your credit in the long run. Most people feel much better about themselves when they can pay off their debt and become educated about how to stay out of debt rather than filing bankruptcy.
Monica
Does Working With a Credit Counseling Organization Hurt Your Credit Score?
Rick Munster asked:
Credit counseling organizations do not lower your credit score when you approach them for assistance in creating a budget that you can work with. Credit counseling is designed by nature to assist each individual in a way that is unique to a person’s particular situation. A credit counseling plan that may work for you will most likely not be the best credit counseling plan for the next person.
With each credit counseling plan being different it would be unfair to affect an individuals plan based off of their desires to get help with their financial situation. Many individuals who approach credit counseling find that they are not in need of joining a credit counseling repayment plan due to the advisor assisting them creating a plan for the individual to repay their debts with some adjustments to their spending habits or state of income. It is not a credit counseling organizations job to place you on their program. It is their job to ensure that you receive the best care and receive the best advice for your particular situation. While not all credit counseling sessions have an end result of the consumer enrolling on a debt repayment plan inevitably some will. This lead to the question; Does a debt repayment plan affect an individuals credit worthiness.
Once a credit counseling organization recommends that you enter into a debt repayment plan there will be no affect to your credit score. This is thanks to Fair, Isaac which designed the FICO credit scoring system. Spokesman Craig Watts states “Statistically, it does show a higher propensity to go bad on a credit obligation sometime in the future, we decided it was in everybody’s best interest if we had it changed so that people can go into credit counseling without worries about what it might do to their credit score.”
Credit counseling is different from credit repair, and debt settlement. There are no statements that support that these services will not affect your credit in a negative fashion.
Credit counseling may be noted on your credit report by your individual creditors. The notation simply states that the consumer has entered a debt repayment plan. This notation does not affect your credit score.
Patrick
Credit counseling organizations do not lower your credit score when you approach them for assistance in creating a budget that you can work with. Credit counseling is designed by nature to assist each individual in a way that is unique to a person’s particular situation. A credit counseling plan that may work for you will most likely not be the best credit counseling plan for the next person.
With each credit counseling plan being different it would be unfair to affect an individuals plan based off of their desires to get help with their financial situation. Many individuals who approach credit counseling find that they are not in need of joining a credit counseling repayment plan due to the advisor assisting them creating a plan for the individual to repay their debts with some adjustments to their spending habits or state of income. It is not a credit counseling organizations job to place you on their program. It is their job to ensure that you receive the best care and receive the best advice for your particular situation. While not all credit counseling sessions have an end result of the consumer enrolling on a debt repayment plan inevitably some will. This lead to the question; Does a debt repayment plan affect an individuals credit worthiness.
Once a credit counseling organization recommends that you enter into a debt repayment plan there will be no affect to your credit score. This is thanks to Fair, Isaac which designed the FICO credit scoring system. Spokesman Craig Watts states “Statistically, it does show a higher propensity to go bad on a credit obligation sometime in the future, we decided it was in everybody’s best interest if we had it changed so that people can go into credit counseling without worries about what it might do to their credit score.”
Credit counseling is different from credit repair, and debt settlement. There are no statements that support that these services will not affect your credit in a negative fashion.
Credit counseling may be noted on your credit report by your individual creditors. The notation simply states that the consumer has entered a debt repayment plan. This notation does not affect your credit score.
Patrick
Will the next domino to fall be consumer loan insurance?
Cool Dude asked:
These are the people who make your credit card payments (or at least suspend payment) in case of illness or layoff for a percentage of your account balance. Are they as under-capitalized as the mortgage insurers? Can they handle the rapidly increasing massive layoffs? If not, then what?
Georgia
These are the people who make your credit card payments (or at least suspend payment) in case of illness or layoff for a percentage of your account balance. Are they as under-capitalized as the mortgage insurers? Can they handle the rapidly increasing massive layoffs? If not, then what?
Georgia
What affect does dropping the interest 0.5% to the average consumer?
Posted by admin in Personal Finance on April 11, 2010
happydawg asked:
I work a full time job. I pay 9% of my income into a 403B. I have 3 credit cards. I am getting ready to pay off my car. I have about 2K in I bonds, and a whole lot more in my retirement savings. My home is paid for. I would like to get a loan to make some repairs and get some siding and a new roof.
I watched the news when the feds dropped the intrest rated a whole 1/2 % and everyone was oohing and aahing over it. I just dont get what that means to me. Can you please tell me what it means to an average jo here in america?
Alvin
I work a full time job. I pay 9% of my income into a 403B. I have 3 credit cards. I am getting ready to pay off my car. I have about 2K in I bonds, and a whole lot more in my retirement savings. My home is paid for. I would like to get a loan to make some repairs and get some siding and a new roof.
I watched the news when the feds dropped the intrest rated a whole 1/2 % and everyone was oohing and aahing over it. I just dont get what that means to me. Can you please tell me what it means to an average jo here in america?
Alvin
San Francisco Giants Credit Card | Major League Baseball™ Extra Bases™ Mastercard
College Credit Builder asked:
The San Francisco Giants official team logo can now be featured on the Major League Baseball™ Extra Bases™ Credit Card from Bank of America. (www.giantscreditcards.com ). This rewards credit card has proven to be a grand slam with fans and is scoring rave reviews in the rewards credit card industry. Like many retailers, airlines, and universities have done for years, Major League Baseball teams like the San Francisco Giants are now being displayed on consumer credit cards. These baseball oriented credit cards are rapidly growing in popularity and are proving to be a hit with sports fans across the country.
The Major League Baseball™ Extra Bases™ Credit Card from Bank of America has valuable features, including:
• No annual fee.
• 0% introductory Annual Percentage Rate (APR) on balance transfers and cash advance checks for your first 12 billing cycles.
• Get an official MLB™ licensed jersey after your first qualifying transaction(s) using your MLB™ Extra Bases™ credit card.
• 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.
At a time when everyone’s nerves are frayed because of uncertainty in the stock market, illiquidity in the credit market 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 in tough economic times. With the MLB™ Extra Bases™ credit card, Giants fans can be reminded of their favorite team every time they take out their wallets. Real fans carry the card with pride. Visit www.giantscreditcards.com to complete the credit card application online in a few short minutes.
Michele
The San Francisco Giants official team logo can now be featured on the Major League Baseball™ Extra Bases™ Credit Card from Bank of America. (www.giantscreditcards.com ). This rewards credit card has proven to be a grand slam with fans and is scoring rave reviews in the rewards credit card industry. Like many retailers, airlines, and universities have done for years, Major League Baseball teams like the San Francisco Giants are now being displayed on consumer credit cards. These baseball oriented credit cards are rapidly growing in popularity and are proving to be a hit with sports fans across the country.
The Major League Baseball™ Extra Bases™ Credit Card from Bank of America has valuable features, including:
• No annual fee.
• 0% introductory Annual Percentage Rate (APR) on balance transfers and cash advance checks for your first 12 billing cycles.
• Get an official MLB™ licensed jersey after your first qualifying transaction(s) using your MLB™ Extra Bases™ credit card.
• 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.
At a time when everyone’s nerves are frayed because of uncertainty in the stock market, illiquidity in the credit market 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 in tough economic times. With the MLB™ Extra Bases™ credit card, Giants fans can be reminded of their favorite team every time they take out their wallets. Real fans carry the card with pride. Visit www.giantscreditcards.com to complete the credit card application online in a few short minutes.
Michele