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Debt Relief Solutions: 6 Ways to Get Out

“Looking for debt relief solutions? There are six main forms of debt relief solutions and choosing the right debt relief solution can be one of the most important financial decisions of your life. Read what these solutions are below…”

There are tons of debt relief solutions

There are tons of debt relief solutions

Each of the six choices offers positives and negatives, and no one choice is right for everyone in every situation. Debt relief is a broad term that defines many different types of debt relief solutions, including struggling to pay your loans, credit counseling, debt settlement or debt resolution programs, mortgage refinance loans, and two types of bankruptcy.

Debt relief can be a hard pill to swallow.

 

First, let us take a brief look at each choice. Later, we make a side-by-side comparison of each option, including the short- and long-term cost of each. Finally, we show you where to learn more about each option, and next steps you can take.

1. Minimum Payments

Making the minimum monthly payments on your credit cards can be a dangerous financial strategy. Although it may feel good to push a growing problem off to another month, if you have high interest rates and a credit card debt balance that has grown to become a problem it just might be time for a gut check and to look in the mirror.

We recommend consumers pay off their debts in full each and every month, especially credit card and high interest revolving debt. If you cannot manage to do that, make sure that you are aware of the true lifetime cost of that debt and what all of your debt payoff options are, and do not just blindly keep on the treadmill of making minimum payments.

2. Credit Counseling

Credit counseling is a program that enrolls you on a debt management plan (DMP), which usually allows you to qualify for concession rates from your creditors. The primary benefits of a credit counseling program are lower interest rates and lower payments.

Credit counseling, or signing up for a debt management plan, is a very common form of debt consolidation which is essentially a way to make one payment directly to the credit counseling agency that then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. Credit counseling is like aspirin for a mildly sick patient, where a little help and medicine solves a real pain or financial problem.

It is important to understand that in a credit counseling program, you are still repaying 100% of your debts — but with lower monthly payments. On average, most credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan does show up on your credit report, and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 bankruptcy — or using a third-party to re-organize your debts. You can learn more about this debt relief solution at the Bills.com section devoted to credit counseling.

3. Debt Settlement

Debt settlement services offer to negotiate and settle your debts for less than you owe, many times reducing debts by as much as half, before provider fees. Debt settlement is an option for people who cannot afford their monthly payments, and who are not worried if their credit rating will be negatively impacted during the program. It is important to be aware that you are not making monthly payments and staying current on your debts while enrolled in a debt settlement program, so be aware of the credit impact and the potential collection harassment from your creditors. Debt settlement is also a very aggressive form of debt consolidation, and it is akin to chemotherapy for a seriously ill patient — it will hurt but will hopefully kill the cancer and get you financially stable and healthy again quickly.

Unlike other forms of debt consolidation, debt settlement is based on the future resolution of your accounts, which means that results vary significantly and it is very important to work with a qualified and accredited provider.

4. Mortgage Refinance

You may be able to consolidate your debts with a home equity loan, mortgage refinance or other debt consolidation loans. If you are confident that you will to make the payments without building more credit card debt, debt consolidation refinance loans can be an excellent path to reducing your payments, lowering the total cost of your debts, and a refinance mortgage loan can also possibly reduce your taxes. You must be a homeowner to qualify for a mortgage refinance loan, and usually have excellent credit and significant equity accumulated in your home. You can learn more at the Bills.com refinance portal or even apply with Bills.com’s approved lenders.

5. and 6. Chapter 7 and Chapter 13

Bankruptcy should be your last choice in a debt relief solution because it will damage your credit for 7 to 10 years and, depending on which type of bankruptcy you file, you could be forced to give up some of your assets or assigned a long-term payment plan. There have also been legal changes put in place by Congress that make it more challenging to qualify for achapter 7 bankruptcy, forcing many people to file for a Chapter 13 bankruptcy which is really a repayment plan….. More at Debt Relief SolutionsSolutions on How to Find Effective Debt Relief Partners

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Top 10 Tips to Show You Ways on How to Pay Off Debt Fast

“Below are the top 10 tips on how to pay off debt fast. Read on as there really is a light at the end of the tunnel!

Debt Relief.. Worry Free..

Debt Relief.. Worry Free..

Trying to pay off a sizable debt is no picnic. It can be discouraging to pay those bills month after month while it seems like the balances are hardly moving.

Top 10 Tips to Show You Ways to Pay Off Debt Fast

  1. It’s usually a good idea to negotiate a lower interest rate on each credit card account. With rates that can reach 30 percent or higher, credit cards can take decades to pay off. The lower the interest rates, the quicker the balances can be paid. Most credit card companies are willing to lower interest rates at least slightly if you just ask.
  2. If asked, credit card issuers will also lower the annual fee on an account, or they may even waive it entirely. This small amount adds up over the years, and you’re better off without it.
  3. Many credit cards come with numerous fees – late payment fees, over limit fees, and cash advance fees – which can pack hundreds of dollars onto your balance each year. It’s first necessary that you become aware of all the potential fees associated with your credit cards and do your best to avoid incurring them.
  4. While cash advance fees are not likely to go away, many credit card issuers will remove late fees and over-the-limit fees if you do not consistently incur these. All you have to do is ask.
  5. If you have gone through a period where you had difficulty paying on a particular account but have since paid at least the minimum due for several consecutive months, a credit card company may be willing to remove all or most of the late fees that were charged. This can reduce your total balance due by a few hundred dollars, depending on the particular situation.
  6. To successfully pay off debt, it’s essential that each credit card is paid on faithfully every month. Each statement will list a minimum amount due, but it’s best to pay more than this each month. Obviously, the more you can pay monthly, the quicker the balance will be paid off entirely.
  7. At the same time, it’s important to avoid taking on new debt. Credit card use should probably be stopped entirely while paying off accumulated balances. You may choose to keep the cards for some future time, or you may need to cut them up to eliminate the temptation.
  8. It can be very helpful to minimize your expenses in other areas and apply the money saved to your credit card payments. For example, you may decide to stop eating at restaurants for the next few months and put the money you would have spent toward paying down a credit card. Expenses like magazine subscriptions, add-ons to your telephone or cell phone service, and automatic car washes can add up quickly. Eliminating these extras for a short time can greatly reduce your credit card balances.
  9. It may be possible to negotiate a lower pay off amount with a credit card company. Many companies will accept around 20 percent less than the total balance due in a lump sum “settlement.”
  10. After paying off a credit card in full, it’s important to take the amount of money you have been paying each month and apply it to another credit card. This approach is sometimes called “snowballing” and will help you pay off the other cards faster….. More at How to Pay Off Debt FastTop 10 Tips to Pay Off Debt Fast

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Fast Instructions on How You Can Build Credit Fast

“Big question is on how you can build credit fast. A number of factors go into evaluating your credit worthiness. Many of these factors are affected by your length of credit history, or how long you have had credit. The more responsible you are with your credit, and the longer your history of responsible borrowing behavior, the better your credit will be. Below are instructions on how you can build credit fast”

Fix Your Credit Fast

Establishing a good credit score has never been as vital as it is in today’s society. Your credit rating will follow you around wherever you go. When you want to buy a home, your credit rating will determine how much interest you pay a month. It will determine how much you can borrow. Employer’s also review your credit score when you apply for a job. For young people, it is important to get on the right road in the beginning.

How to Build Your Credit Fast How To Have a Good Credit Rating Fast Instructions:
1. Check your credit rating for free with one of the free credit report websites. There are three main credit bureaus, Equifax, Trans Union and Experian. You can read my article on how to get your credit history report for free in the resources section. Use FreeCreditReport.com or AnnualCreditReport.com, make sure to delete your account before the trial period is over so you don’t get charged.
2. Second option on how you can build credit fast is to put money into a checking account. People want to see bank account to know that you have some security in your life. Two accounts are a good idea, one checking and one savings. Pick your bank as to which ones have the most ATMs in your area for convenience. Interest earned in the accounts is trivial so it doesn’t really matter.
3. Understand what goes into your credit score. Research how the score is made up and pay attention. Two basic things to remember are that you need to pay your bills on time and don’t overuse your credit. It is better to not use credit than to pile up your bills and pay them off. Establishing good credit is not just about swiping your credit card and then paying it off.
4. Another thing to remember on how you can build credit fast is don’t max out your credit cards. This will not help establish a good credit score. Never charge more than a third of what your credit limit is.
5. Mix up the ways you borrow money. Get a loan for a used car, get a card for the market you go to. Also write checks to pay off your bills. Maybe have one credit card that you put your gas money on and then pay it off on time every month.
6. All in all, try to stay out of debt. If you are in debt, this essentially hurts your credit score. There are many resources for getting out of debt. Pay off your biggest interest rates first….. More at  Build Credit Fast – How to Build Credit Fast
You can also watch this video to know more on how you can build your credit fast:

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