Only Finance – Finance your business now

The Debt
In America, it is not only accepted that the majority of us are knee-deep in credit card debt, it is normal. Two generations ago it was just flat out wrong – a sin, to have any kind of debt at all. Today it is quite a different story and credit card debt is a mega, multi-billion dollar a year industry. The major credit card companies are eating it up like hotcakes and our credit reports are taking a lot of the heat. More than 75% of all college students are in credit card debt within their first year of school. From Sears to Visa to Diner’s Club, people are adding to the debt stock pile that the distributors thrive off of. There are tens of thousands of websites that support and offer more to this enormous problem and it has got to stop! We have to draw the line individually, because there are no boundaries on the excessive spending in America.

What’s Really Happening

It’s even stated in the Bible – “The borrower is slave to the lender.” In any case, where you have taken out credit on something; be it a car, mortgage, student loan, credit card, etc…, you are borrowing money. Not only that, but you are borrowing more money than you need. The average APR (annual percentage rate) on a credit card is 19%! In many cases, when a credit card is “maxed out” you will pay only interest with the minimum payment. As if this wasn’t enough stress, the creditors harass you like their life depends on it and you begin to feel uneasy about even answering the phone.

Is Debt Consolidation the Answer?

Many consumers are drawn in by debt consolidation loans. It feels like instant relief and the monthly payments go down. Suddenly you feel like life is getting better by the minute. Oh and what’s this, there is left over money from the loan – PERFECT! You needed this for that yard project or supplies or something that you’ve been waiting to have the extra money for. Why not reward yourself, you have taken a big step and your financial future is improving. Or is it? The fact is that you have fallen into another trap. You are now borrowing more money with an interest rate and you most likely got more than you needed. Statistics show that even though the math often works for a consolidation loan, the consumer ends up with his ears nailed to the wall.

What to do Now

STOP BORROWING MONEY! This would be a good first step. Stop right now. Do not borrow a dime. If you don’t have it – don’t spend it. You can build up an emergency savings account to pick up any negative events that may occur. This emergency savings account is of course another article but you get the basic idea right? Oh, you still feel you need plastic in your wallet? Get a debit credit card. At least with a debit card you can only spend what is in your bank account. You can also use most credit card debit cards just like a credit card for purchases. Your credit report will begin to reflect this positive behavior because there will be no more credit card bills piling up. Here is a saying to ponder before you think of making another large purchase – “If you can’t afford it, don’t buy it. If you can afford it, sleep on it.”

To read more about how you can get your online credit report free with no obligations and get a prepaid Mastercard debit card with no immediate debt, go to www.cleancreditonline.com

http://www.articlegeek.com/finance/credit_card_debt_articles/plastic_debt_credit_card.htm

Some companies advertise that they have a credit report repair Software and also they will teach you credit repair secrets, for a fee of course. There is a lot of free information here, if you know where to look. Before you take a credit repair course or sign up for credit report repair, read the facts and the laws relating to credit repair. In this way you may avoid some disappointment and save some money.

What is credit report repair or software? The best kept “secret” is that creditors and credit reporting agencies (commonly referred to as the credit bureaus) make mistakes. What can you learn in a credit repair course? You can learn the basics of bad credit repair, without paying a penny. If you cannot achieve results on your own, then you may need to hire a credit repair lawyer to help you. If you feel that you have exhausted all of the free options, identify what information that you still need and make sure that the credit repair course or software program that you are considering includes that information.

A secret may be defined as “beyond simple understanding”. Using this definition, credit report program is credit report repair that is beyond ordinary understanding. The average person does not understand how credit scores are calculated. Most people do not know what information is on their credit reports. Many people do not know their rights under the law.

Credit repair is a popular subject. It seems that almost everyone wants learn about credit repair. Books and software programs that claim to contain everything you wanted to know about credit repair are being sold on the internet and in retail locations all over the country. There are some questionable credit repair schemes and some companies suggest action which is illegal. Consumers can learn to repair their own credit, but it takes time and patience. The safest bet when hiring someone to do the work for you is to hire a credit repair attorney. In this way, you can be sure that you will achieve results; they know everything there is to know about credit repair. You can also be sure that a credit repair attorney will not advise you to do anything that is illegal. Most of the popular credit repair lawyers do not charge more than the other credit repair companies and some offer money back guarantees.

The Federal Trade Commission regulates credit repair organizations and states that “certain advertising and business practices of some companies engaged in the business of credit repair services have worked a financial hardship upon consumers, particularly those of limited economic means and who are inexperienced in credit matters.” Under the laws regulating credit repair organizations, any company that advertises secret credit report repair or credit repair in general must provide the consumer with certain information. These regulations do not apply to companies that offer a credit repair course or seminar. Most of these are simply rehashing information that has been available for years. If you look in the public library, you will see that individuals have been writing books about credit report repair for years.

There was an individual who advertised his informational packages on TV. One of his reports was “how to get AAA credit” or something like that. This was not any spectacular secret credit report repair. It was not a credit repair course. He advised consumers to make a $500 deposit into a savings account at any bank. Then, using the deposit as security, apply for a loan. Repay the loan and according to him, you would have great credit. This may be information that the average person does not know. It is similar to the secured credit card programs that so many companies offer. The thing about credit is that, it is harder to get, if you really need it. If you have $500 to deposit into a savings account or a secured credit card program, if you have the money to pay off the debts that you owe, you can improve your credit score over time.

Companies that advertise quick free credit report repair are banking on the theory that you do not know how to review your credit reports for inaccurate information. If you have inaccurate, obsolete, misleading or unverifiable information on your credit reports, then the credit bureaus must delete the information. You must “dispute” the information. In other words, you must notify the credit bureaus about the negative information that needs to be deleted. This is the credit report repair that is often the subject of a credit repair course

http://www.articlegeek.com/finance/credit_card_debt_articles/1145-everythingyouwa.htm

Money worries have many different voices: “How am I going to pay my phone bill? My lights are almost two months behind. The rent is due. What are we going to do about the mortgage? We don’t have money for football uniforms. No field trip. That cost money. No, you can’t have that, it cost more than what we have in our budget. They’re coming to take the furniture back; our payment is overdue. The kid needs her braces removed but the dentist won’t do it unless we pay the rest of the money we owe. I’ve lost my job. I’m sorry, honey, they have downsized my position. If I want to keep my job I will have to take a cut in pay. How can I afford these child support payments? I can’t take this any more. What are we going to do?”

A mind that is cluttered with money worries may be flooded with one or two or all of these thoughts at one time or another. Maybe you were there once in your life, maybe not. Most people with financial troubles are anxious, confused, angry, harbor feelings of hopelessness, insecurity, and uncertainty about future financial outcomes. Consequently, this state of mind affects everything, including work performance.

It’s time for a financial assessment. Is your trouble because you have maxed out your credit cards? Maybe you have more month than money. Do you have medical expenses? Are you sick and can’t work? Have you lost your job, or been downsized? Where did the shortage originate?

Once you have assessed where the problem lie, then you can look at remedies. Money troubles in plain simple English are not enough money to cover your present lifestyle. The causes may or may not be within your control.

When the funds are low, the logical answer would be to make more but what most people do is fret about it. Some spend more time worrying about what they don’t have while others add on a second job.

Money troubles are not going to go away without something changing. Worry will not make up the deficit but initiating a plan of action will.

Step I
Make a list of all of your monthly household living expenses: mortgage, rent, utility bills, etc.

Step II
List Your Debts (creditors you owe)

Step III
List your entertainment

Step IV
List miscellaneous (lunch, coffee, snacks, etc.)

Step V Write in how much you pay on each. Total that amount.

Step VI
List your sources of income (job, spouse, etc.). Take the total from this and subtract it from what you spend on household, debts and entertainment. If that figure shows you are not covering your expenses, look back at your expenses; see what you can eliminate from entertainment. Make a list of other areas you are expending money, such as lunch, dry cleaning, hair cuts, etc.

Try taking your lunch from home rather than buying lunch. The average lunch cost about $7.00. That $7.00 for five days comes to $35.00 a week, totaling $140.00 a month. Imagine if you, your wife and children spent the same amount weekly,that would amount to a partial mortgage or rental payment.

Take a look at your Debt. Began to work from the smallest to the largest. Take the money you saved from not buying, let’s say lunch, and redirect the total amount towards paying off the smallest debt first.

As you pay off each debt, take that money and add it to the next smallest debt, working your way to the largest, until you have eliminated your debt completely. While you are doing this, examine your household budget.

Look at how to eliminate some of your other expenditures; for example, if you have a high cell phone bill, you might want to exchange that cell phone for one with a more fixed rate. Maybe instead of hiring a lawn service, you could cut the grass yourself. Perhaps you might visit Barber or cosmetology trade schools to obtain these services at a reduced rate.

Look at what you are already doing first to find the extra money. If you still need more to make up the deficit, then you might look at your skills and talents: start a home-based business. It’s something you could do as a family.

Money troubles can be conquered, if you are willing to take a few extra steps. Don’t look at the impossible debt mountain, began the climb one step at a time. And, yes, it is okay to reward yourself along the way but keep in mind where you are headed. Don’t overdo it. Once your debt is eliminated, don’t spend the excess money; instead, add it to your future savings options.

Understand that paying your debts down will not take place overnight but if you are consistent it will happen.

http://www.articlegeek.com/finance/credit_card_debt_articles/10132-howtoturnyourfi.htm

Taking on a new credit card may seem like a good way to control and handle some of your spending. However, it’s vitally important that you think carefully before taking on a new credit card, otherwise you build up not just spending debts but extra charge debts too.

When you’re looking at a new credit card offer, make sure to look at the small print – it may seem like a maze, but it’s vitally important you pay special attention to it. With new regulations ensuring that credit card companies highlight the main credit card terms and conditions, there aren’t as many excuses for ignoring the terms as there used to be. However, credit card lenders can be devious, while operating within the confines of the law, and there are plenty of things they do to ‘catch you out’.

Here is what you need to be on your guard against to help you with credit card debt management.

Annual Fee Payments
Even though you are charged a yearly interest, many credit cards companies also charge you an annual fee. It’s not that common anymore, but it’s still around. You should be especially careful to check for high fees on special Gold and Platinum cards – even though they’re not that hard to get any more, they still tend to charge much higher fees than normal cards. And one of the ‘tricks’ that companies use is to give you the credit card for free, for the first year, and then on the second year you suddenly see a charge on your credit card bill for a card fee payment.

Penalty Charges
You should pay special attention to what kind of fees you’ll be charged for late payments, or if you take a cash advance from a bank money machine. And of course if you accidentally exceed your pre-agreed limit on the card the charges can really get out of control. Some cards have very high penalty charge fees, even if you only exceed spending limits by a few pounds.

Interest Method
This is one of the most most important and overlooked of all the small print, just because it’s can be difficult to understand. You could be cynical and say the credit card companies write it like this just to make us even more confused, in the hope we will ignore some very important small print points. Essentially, each credit card company has a slightly different way of working out how much interest you should pay each month. There are three main methods:

Method 1: With the ‘adjusted balance’ method, you are charged interest on whatever your balance was when the company sent the bill.

Method 2: Another version of the adjusted balance is the ‘previous balance’. You’re charged interest on your balance as it stood at the end of the billing cycle before this one, regardless of how much you’ve spent or paid off since.

Method 3: The ‘average daily balance’. This is the most complicated method used nowadays. Your balance is worked out from the end of each day in the card billing cycle. It’s then added up, and divided by how many days for the payment period, and interest is then charged on this final amount. This method works best for you if your balance jumps around a lot, as it avoids you paying lots of interest on a balance that just happened to be large on the billing date.

Also, pay special attention ot the rate of interest you pay each month, instead of just relying on the APR. The APR is just an estimate of your total cost of borrowing; it is the monthly interest plus all the other various charges that will show you precisely how much you will end up paying.

Grace Period
Maker sure the card you’re looking at using has a ‘grace period’ on purchases. Otherwise, you could end up being charged interest from the very moment you pay with your card. One of the things that most cards don’t allow is a grace period for cash advances or credit card cheques.

Currency Conversion Fees
If you plan on uisng your credit card abroad, make sure to take a look at how much the card charges for such transactions made in other currencies. Some cards can be much more expensive than others and once again the additional charges could be a nasty surprise after an enjoyably holiday.

Conclusion
You should pay special attention to any credit card you plan to use. Although regulations are now in place to protect the consumer, you must still be prudent with your credit card debt management. Your card debts can easily get out of control and one of the hidden problems can be the un-necessary debts added to your card because you ignored most of the points raised above.

http://www.articlegeek.com/finance/credit_card_debt_articles/10425-creditcarddebtm.htm

Not all debt can be consolidated and given that there are different consolidation programs you should check if the one you choose or the one that the agent chose for you is really to your advantage.

There are many reasons why debt consolidation may not be the right solution for you. Debt consolidation cannot solve debt problems for all kind of debts. Debt consolidation may be too expensive if debt has already affected your credit and you don’t have collateral. And certain debt consolidation programs may be nothing but scams. Thus, you need to be well aware of what you are getting into.

Debt Not To Be Consolidated
For starters, you should understand than not all debt is suitable to be consolidated. The reasons for this are varied. Most subsidized loans already carry very low interest rates and thus, it makes no sense to consolidate those loans by using a more expensive loan. This is always true, unless of course what you need is to reduce the monthly payments by extending the loan repayment period.

There are many subsidized loans. Government loans for students, private loans for students, government loans for first time home buyers, government loans for starting businesses, government loans for research disciplines, etc. are just a few examples of subsidized loans that are not suitable for consolidation.

There are loans that being secured are not suitable for consolidation. Though refinancing can be a form of consolidation if other loans and debt are repaid with the exceeding cash obtained from a cash-out refinance loan, truth is that very seldom a home loan or home equity loan is included in a debt consolidation program.

Debt Suitable For Consolidation
Generally speaking only debt which is unsecured in nature and secured debt taken when your credit score was low (bad credit debt) is suitable for debt consolidation. The latter will be suitable only if your credit score has improved or if you can provide better collateral and thus obtain a more competitive interest rate.

Examples of unsecured debt are: unsecured personal loans and personal lines of credit, credit card debt, store card debt, pay day loans, cash advance loans, certain student debt, bank account overdraw agreements, bank pre-approved personal loans. All of these can be consolidated into a single loan or the terms negotiated by a debt consolidation agent.

Debt consolidation in the form of a loan carries the advantage of obtaining a single and lower monthly payment that will simplify your budget while you work on your expenses. Debt consolidation in the form of negotiation is also an excellent tool that can provide a solution by reducing rates, eliminating debt generated by interests or extending the repayment programs so as to make debt more affordable.

And finally, both methods can be combined offering an excellent way of eliminating debt, managing finances and improving credit score in the same debt consolidation program.

http://www.articlegeek.com/finance/credit_card_debt_articles/11072-debtconsolidati.htm

With the popularity of plastic money these days, credit cards are gaining immense importance. With growing usage of credit card the number of people in debt and the amount of debt for each of them is also increasing at a fast pace. Almost every household in the US today is undergoing the threats of debt problems. People undergoing credit card debts should ideally opt for debt consolidation in order to lead a debt free life. In the US more than half of the population has an average of $8000 debts, only because of the usage of credit cards.

You must be eager to know:

* How is the process of debt consolidation beneficial to settle credit card debts?
* How is it useful to consolidate my credit card debts?

A credit card debt consolidation loan can be a resource to consolidate the outstanding balances on your cards into one single loan. They can also be transferred to one single card that has a lower interest rate than the ones you are currently paying. The path to savings should be very cautiously chalked out and one needs to make calculated moves all the time. It is advisable to opt for credit cards with low interest rates rather than paying high interest rates for some credit cards. Calculate the interest on your credit card debts and transfer it accordingly. We offer free membership.

The ideal way to consolidate your credit card debts!

For better understanding find out how consolidating your credit card debts can be helpful.

Let’s say you have $100 in outstanding credit card debt and the average annual percentage rate (APR) on that card is 18 %. If the outstanding balance remains at $100 then over the course of a year you would pay approximately $18 in interest charges alone. If you consolidate your credit card debt into a single loan with a lower interest rate or if you do a balance transfer onto a credit card with a low interest rate you would save a significant amount of money.

If the new loan or credit card have a 9% APR then you would save roughly $10 in interest charges over the course of that same year. If you save $10 for a debt of $100, then think about a debt of $10,000. This trick will save you $1,000 over the course of that same year. Just think of $100,000 debts; you can save $10,000. And this amount of $10,000 can be used to repay some of your debts. Life becomes easy with simple calculations and cautious moves.

If you are undergoing major debt problems feel free to contact us. Our experts will help you to consolidate your debts and restore your financial position. Consolidating your debt is perhaps the fastest, safest and best way today to get rid of your financial obligations and we are experts in this field. Fill our free membership form to view all the alternatives. With debt consolidation we are here to consolidate all your financial loans in a single monthly payment. We help you in your journey towards being debt free.

http://www.articlegeek.com/finance/credit_card_debt_articles/consolidate_credit_card_debt.htm

Having a blemish on your credit report can lead people to believe that it will be impossible for them to obtain a mortgage or refinance their current one.

Although having less than perfect credit can be a challenge, all hope is not lost.

There are lenders out there, and many of them, who specialize in doing mortgages for people with challenged credit. These lenders are known as sub prime lenders.

You may not be familiar with sub prime lenders because they are not the type of institution to set up shop on every street corner like the banks.

Sub prime lenders deal with all kinds of special and unique situations. Whatever your situation may be, there is a good chance that there is a lender out there with a program for you.

For instance, sub prime lenders have programs for people with poor payment history, people who have had bankruptcies, people who are in foreclosure and are looking to be bought out, etc. Over all if your credit history is poor, you will most likely have to go with a sub prime lender.

My suggestion to you would be to find a broker to shop around for the best possible program for you.

A broker is not a lender, their job is to guide and educate you through the loan process. Most brokers have a contact list too literally hundreds of lenders across the country including sub prime lenders. Allow for the broker to assess your financial situation, than fit you into a program that you both can agree on.

The down side to dealing with a sub prime lender is the interest rate. You can count on it being high. If you have bad credit, the lender will see you as a risk, and the penalty you pay for being considered a risk is in the interest rate.

The point is this, regardless of your credit issues, there most likely is a lender out there who will deal with you, just make sure the deal you agree on is in your best interest and not in the best interest of the broker or the lender.

When deciding to purchase a home or refinance your existing one, always do your homework. Continue to educate yourself so you know what to expect going forward, and don’t be afraid to shop around for the best deal out there. Just because your credit isn’t the greatest doesn’t mean lenders won’t be competing for your business because they will.

Your credit can be repaired over time if you pay your bills on time, so make this a goal and work toward it.

http://www.articlegeek.com/finance/credit_card_debt_articles/credit_problems_what_to_do.htm

Too many people are being confused, mislead and taken advantage of by tem, “Free Credit Report”. We set the record straight so that won’t happen. Text How many of us have looked at anything offered to us for “free”? Not me? Of course I have. In this day in age when gas prices are listed as “Arm” and “Leg”, providing health insurance for your family costs more than some mortgage payments and the cost of raising kids looks like a hockey stick pasted onto a graph, you bet I look at offers to save money.

Therein lie’s the problem. It seems like the vast majority of American consumers are desperate to cut costs, any costs, and will jump too soon at offers promising to do just that. Sometimes when you combine a cost cutting mentality with the importance of credit, not only to purchase the big ticket items important to us, but more and more to simply survive in this economy, desperation happens. Unfortunately, the marketers know this too. So, without a little education anyone can get confused and the likelihood of being taken advantage of increases significantly. The good news is that just a little education will save you plenty.

Take for example, the term “Free Credit Report”. It now ranks right up there with the ubiquitous, “new” and “improved”. “Free Credit Report” has become part of that lexicon of advertising buzz words that are absolutely meaningless to me. But for many, there is much confusion over this term. Why? I think mainly because it has been announced that federal law dictates we are all entitled to a free credit report on the front page of all the newspapers.

We know everyone wants a free credit report, which is why we started our site. People naturally want something that is mandated by law to be at no cost, is front page news and is so incredibly important to each of us if we want to purchase just about anything. We know people want their free credit report and because most all of us work so hard for our money, we think people deserve hearing the truth about the subject. That is why we even put a section on our page entitled, “The Truth About Free Credit Reports”.

So, is it not true? Yes, it is true, it’s just that the devil is in the details and the resulting confusion has been a bonanza for those seeking to cash in on the confusion. In fact, each of us in the good ole U. S. of A. is entitled to a free credit report. But, how do you get it? Where do you get it? Who is giving it to you? Why is it being offered for free? And most importantly, who cannot offer you one for free?

Who cannot offer a free credit report? Let’s start with the last one first because it shines a lot of light on the rest of the questions. Any company, web site or service that is in business for a profit and is not named Experian, Trans Union or Equifax is not able to provide anyone at any time with anything remotely resembling a credit report free of cost. Period. End of story. Got that? Further, there is one place set up on the web to get free copies of credit reports at no cost and it is: www.annualcreditreport.com . We’ll talk more about this site a little later but, other wise, caveat emptor, let the buyer beware.

How then are these offers being made? Look closely, the “Free” report is usually offered initially upon signing up for a service that charges your credit card each month for monitoring your credit. If you cancel the service just in the nick of time, before the charge is made to your card, you will get it at no cost. What a hassle! And the bet is you will wake up at least one, if not a couple or more months later with several charges to your card. You think these guys make foolish bets?!

Then what caused a free credit report to be offered on the front page of newspapers, who is providing them and how and where do I get one? Due to the importance of consumer credit history, identity theft and complaints from consumer rights groups about having to purchase a credit report in order to gain knowledge about the contents shown on individual consumer reports, even if it was reported inaccurately, a change was mandated.

The Fair and Accurate Consumer Trade Act (FACTA), a revision of the Fair Credit Reporting Act, provided for one credit report free of charge from the reporting agencies (Experian, Trans Union and Equifax) every twelve months, if and only if, you haven’t received a credit report in the previous twelve months. The consumer, by either mailing a written request to the three major credit reporting agencies or going to www.annualcreditreport.com one can obtain the free report if they meet the criteria. This program was and is being phased in to sections of the U.S. by the credit reporting agencies starting in the western states, with the northeastern states at the time of this writing still to come.

However, Pamela Yip of The Dallas Morning News writes that even this has not been without its problems.

“The Federal Trade Commission said Experian Information Solutions Inc., one of the three major credit bureaus, settled complaints that it “deceptively marketed ‘free credit reports’ by not adequately disclosing that consumers automatically would be signed up for a credit report monitoring service and charged $79.95 if they didn’t cancel within 30 days… . With the help of the Federal Trade Commission, the bureaus established www.annualcreditreport.com as the only authorized online source for consumers to get a free report under federal law.

While many consumers haven’t had any problem getting their reports, others say they’ve been hit with sales pitches for products and services from the credit bureaus or were diverted to imposter sites. The FTC said the company led consumers to its www.freecredit report.com and www.consumer info.com Web sites. Radio, TV, e-mail and Web ads promised free reports and “a bonus – free trials of a credit-monitoring service.”

The FTC said consumers “were assured that: ‘Your card will not be charged during the free trial period. However, valid credit card information is required to establish your account.’ ”

What the Web sites didn’t adequately disclose is that consumers would be charged the $79.95 annual fee if they didn’t cancel within 30 days, the FTC said.

“ConsumerInfo billed the credit cards that it had told consumers were ‘required only to establish your account,’ and, in some cases, automatically renewed memberships by rebilling consumers without notice,” the agency said.

As part of the settlement, the FTC required ConsumerInfo.com, an Experian company, to “give up $950,000 in ill-gotten gains.”

Experian also has agreed to provide refunds to consumers who purchased credit-monitoring products and ordered a free credit report between Nov. 1, 2000, and Sept. 15, 2003.

“It’s unfair and deceptive to promise consumers something for free and then trick them into paying for products they didn’t want in the first place,” said Lydia Parnes, director of the FTC’s Bureau of Consumer Protection.

“It wasn’t an attempt to mislead at all,” said Peg Smith, an Experian executive vice president. “We absolutely deny any wrongdoing.” She does acknowledge that consumers may have been confused.

“To the effect that our product offering has caused that confusion, we certainly regret that,” Ms. Smith said. “We encourage consumers to read the language in any disclosure on any Web site, including our own.”

The FTC also requires ConsumerInfo.com to state clearly that its free credit report offer isn’t related to the federal program.” http://nl.newsbank.com/nl-search/we/Archives?p_action=list&p_topdoc=21

The reality is that no one credit report or combination of three credit reports by and of themselves is sufficient to educate oneself about where you stand as a consumer in the eyes of a lender. Imagine a high speed race boat zooming across a lake at top speed without a steering wheel. Where it is going is a complete mystery but one thing is for sure, it will crash and crash quickly unless you get control. That’s right, you. Because without your credit scores and the knowledge about what they mean, how they were calculated or how a lender views them, you are headed for a crash.

No bank, credit card issuer, mortgage company, retail store or any other credit provider will grant you any item, service or product without looking almost exclusively at your credit scores and the average person has no idea what their scores are and even if they did, many if not most, wouldn’t know what they mean.

For example, most people don’t even know that repeated “pulling” of your credit reports by potential credit grantors lowers your scores by as much as four points per “pull”. You start “shopping” around for the best rate on a credit card by allowing each credit issuer to run a credit report on you and your score will take a dive. The difference between a 699 score and a 700 represents thousands and thousands of dollars in interest.

Often, credit issuers don’t make it perfectly clear that your credit history is being accessed when you respond to their offer for a new card over the phone. The call center sales representative also doesn’t explain and state clearly to you, that your credit history will show an “official inquiry” which counts against your scores whether you are accepted or rejected.

Most people don’t know that a maxed out credit card lowers their scores even if they pay on time every month. Many don’t know until it is too late that one late payment on one credit card will cause the interest rate charged to skyrocket not only on that card but any other cards that have a balance! Most also don’t know that a credit card balance showing less than thirty per cent of the available balance improves the score. Most don’t know that in calculating credit scores, your payment history counts as 35% of the score, amounts owed count 30% of the score, length of your credit history counts 15% of the score, new credit is 10% of the score and types of credit in use is 10%.

What is the truth about free credit reports? The truth, is that consumers need to read the fine print very, very carefully and get educated. The truth about credit reports in general is that only part of the story is being told by one. The truth, is that knowledge is power and without it your money is being taken from you, your buying power and therefore your future is being dictated to you rather than by you and that the cost of everything including insurance is based on your scores.

If asked for my advice to the average consumer? Worry less about getting a “free” report and more about the real cost of being ignorant regarding credit. Worry more about the immediate and long term costs of not taking control of what is reported on your credit report both the correct and incorrect. Gain some credit knowledge. It is easy to do and will literally save you a fortune. One thing is absolutely for sure, your money and future and your children’s future will be severely impacted by your credit. How, is up to you.

http://www.articlegeek.com/finance/credit_card_debt_articles/free_credit_report_truth.htm

Debt is a Product in America
The #1 sickness in America concerning finances right now is debt. Debt is a product in our culture and it is vigorously aimed at you and me everyday, everywhere. As a society, we borrow more money than the last two generations times two and your online credit report reflects these habits! Some companies like Sears make more profit from their credit department than from all the physical products they sell.

But It’s the Norm Isn’t It?
We are programmed from childhood to make automatic decisions regarding our personal spending habits thus negatively affecting our online credit report. A few ‘real world’ examples are listed below:

* leasing a car instead of paying for it in cash (unheard of right?)
* 90 days same as cash (NOT… really the same in more than 75% of the cases)
* rent-to-own (translation = paying 2, 3, 4 times the actual value of the product)
* 30 year vs. 15 year mortgages (an accepted lengthy and very costly way of purchasing a house)

What to do? Well, I hate to give the obvious answer here but how about saving money! Try saving money in a money market account for a couple years and then paying for a slightly used car in cash or with a 50 to 75% down payment. Wow, imagine having that extra money every month that most people dump into their lease or high rate loan. Try saving money for 3-6 months interest and risk free for that thing that you needed and you might find that you can get it cheaper with hundreds OR even that you want to use your hard-earned money for something more practical. Your credit report will thank you as well.

Penny Pinching is Boring!
Most people today think that to be frugal one must live out of a shack and only make purchases when they are on clearance (or if it’s life or death). Well they’re only half right. Have you heard the expression “It’s the little things that count”? This holds very true when dealing with financial decisions. While large purchases definitely have great effect on one’s online credit report as well as their overall situation, it is often the everyday spending habits that accumulate and hold them back from attaining wealth of any sort. What many people fail to realize is that the majority of true millionaires in America (those with net worths exceeding 1 million dollars) got rich from thinking outside the box and not following the crowd. Try thinking a little more about how you handle your money and you might find that you know more than you think you do.

Summing Up the Debt Sickness Fiasco
A decision as simple as using a debit credit card instead of a credit card shows discipline. Report that paying with cash instead of credit shows that you have properly budgeted your money and it just feels better to own something the day you walk away with it. Your credit report will also reflect these positive actions. Since the average consumer has little control over their own spending habits, the credit report picks up the slack and in turn there are more negative items to show for it. Even statistics show that using cash when making purchases will greatly reduce spending thus causing you to think harder as a consumer before swiping that credit card. Get off to a good start by seeing what is on your online credit report. By removing negative items from your online credit report you can improve your credit rating.

http://www.articlegeek.com/finance/credit_card_debt_articles/beat_debt_with_stick.htm

Today there are various service providers that provide service for equity release. Many companies have come up in the market, which give services for equity release. A large number of retired persons also opt for equity release option to secure their old phase. The companies indulged in equity release rightly guide the owners of the property so that they get the best of the deal. Equity release helps you (the property owner) to get some tax free funds in lieu of your property and also hold the possession of the property. Equity release enables individuals in extracting a certain amount of their residential property.

There are two ways for equity release in the market- lifetime mortgage and home reversion plan.

Lifetime mortgage provides the owner of the property who has mortgaged his property to get the equity money. He retains his property but pays loan in installments throughout his life. The owner of the property is liable to get loan on the basic of his mortgaged property. This is an incredible opportunity for the people who have retired from their job and do not have adequate pension plan. Such people often have to face financial hardships. However, with lifetime mortgages they could release a bit of money tied up in their house and improve their living standard. They amount they would get in lieu of their property would be sufficient enough for them to buy a car, go for vacations, pay their debts, home renovations etc.

The equity amount or the loan that you receive would be based upon the valuation of the property. The other important things that are considered in lifetime mortgages are interest rate, scope of the property in future and its location. You would be charged interest rate for the loan which keeps adding with the course of time in a fixed and variable rate. You could get your property back if you pay off the entire loan amount along with interest.

The rate of interest in lifetime mortgage may become a headache for you if not given proper heed, it will keep adding and with delays in payments it would result into a huge sum of money. Hence, keep a close vigil on your interest rate and pay it regularly. Lifetime mortgage met a huge success, till another plan came up in the market the drawdown plan. This plan allows releasing equity when required. It also gives lot of flexibility in the payment process.

As far as home reversion plan is considered, it allows you to sell a part of your property in exchange of a tax free lump sum or a regular monthly income.

With the boom in the real estate market, various kinds of scheme have come up in the market which allows home owners to mortgage his property and get the best deal. A lot of elderly people possess a good property but their inflow of money is poor. Such people can be benefited by lifetime mortgages and enjoy their life without any uncertainties and cash fear.