Tag Archives: how to get out of debt

Credit Card Debt Relief–Fact Or Fiction?

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The amount of consumer debt is staggering. And while there have never been so many people saddled with debt, it can also be said that most are looking for a way out. There are great solutions available to those in need and there also plenty of rip off artists who won’t think twice about making your situation worse.

There are various types of debt relief programs ranging from consolidating your bills to lowering the amount you need to pay off. When talking to anyone who says they can help you, be sure to ask plenty of questions and get details of exactly what they plan on doing for you. If they are not comfortable answering your questions or give you vague answers or a sales pitch, raise a red flag.

You need to know exactly what their plan is, what they are going to do and how they are going to do it. Each situation is different and should be looked at that way. Every person has different needs. Is what they are proposing the correct solution for you and what you want.

No one works for free. Find out what it is going to cost to enroll in their program. If a company is a non-profit it doesn’t make them legitimate or free. Non-profit just speaks to the way their business is structured. Make sure it is affordable.

Ask about the negatives to the program. Will your credit take a hit? How long is it going to take?

Be very wary if someone is putting pressure on you to sign up today. There is no good reason that makes it necessary to sign up for something before you know all of the facts. Is what they are proposing a solution to your particular situation or is it one size fits all? If bells start going off inside you, listen. There are plenty of good people and companies who will be glad to help you out. Choose wisely.

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Debt Relief Programs To Get Out Of Debt

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If you are looking to pay off debt, there are several options available to you.  First you want to take a snapshot or a bird’s eye view of what happens each month. It’s not the most pleasant thing you will ever do, but it is a necessary evil. Taking a look at the past two months is plenty to give you a realistic idea of what is going on. Take a look at your checking account statements and look at the deposits you made and the recurring expenses–they tend to be similar each month. In order to take care of business, you have to look at where you are right now.

There are various debt relief programs available including debt consolidation, debt settlement, personal loans and of course bankruptcy if there is no other way out.

  • ??With debt consolidation you are basically shifting your debt from various creditors and making one payment. You still owe all of the money and have to pay it all back. With consolidation it is possible that you could pay out more in interest over the long haul, but if that’s what it takes to get your cash flowing now, you might choose to go that route.  Also if you use your home as collateral, if you miss payments you could potentially lose your house to foreclosure.
  •  If your creditors agree to take less than you owe as full payment, that is defined as debt settlement. Be aware that most of these agreements will also trigger a 1099 where you will have to claim the forgiven amount as income. If you can’t get a straight answer about the 1099, to protect yourself you might want to err on the side of caution and take it as a yes you will have to declare this as income. 
  • Bankruptcy can potentially wipe your slate clean (Chapter 7) or you can enter into a repayment agreement (Chapters 11 or 13). This will show up on your credit report for up to 10 years and it is a way to start over.

Do research on any entity that you plan on doing business with. If someone promises to fix your credit without your participation, as if they can wave a magic wand to make any negatives go away, you should probably run very quickly in the opposite direction. It’s sad but there are people out there who don’t tell the truth and don’t have your best interests at heart. Be sure to be proactive and protect yourself.

 

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A Crash Course On Credit Scores

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It is really amazing that someone’s life can be drastically affected by three numbers. Here is a small course on what credit scores are and what consequences they can bring.

You sit down to look at your credit report for the first time. If your scores are above 720, congratulations! You have excellent credit; stop worrying about it. If you’re scores are not above 700, no problem—let’s improve it. Always remember the fact that the national average score is around 676 according to the Gallup Organization. If you’re scores are below 400, 500, or 600, there’s definitely room for improvement and only one way to go—up!

If you do not understand the numbers I have mentioned or you have no idea what they mean, don’t fret—I’ll explain. Credit scores range from 350 to 850. All three of the credit bureaus—Equifax, Experian, and Transunion—offer  FICO credit scores using a complex mathematical formula developed by Fair, Isaac and Company, but they each give the scores a different name: At Equifax, the FICO is known as the Beacon credit score; at TransUnion, it’s called Empirica; and at Experian, it’s called the Experian/Fair, Isaac Risk Model.

If you’re credit scores are above 720 you will be able to get the best interest rates available as you have excellent credit. As your credit scores drop, the interest rate you’ll receive for a home loan will rise: this is known as tiered pricing. The more of a risk the lender takes on you, the higher your interest rate will be. In addition, all moneylenders have their own break points between tiers. What this means is that one lender may raise the interest rate if a score drops below 700, while another lender won’t give a higher rate until the score drops below 690.

In summing up, you should do everything in your power to maintain good credit scores, and be sure to shop around and do your homework when looking for a home loan because all lenders are not created equal. I think you’ve already catched the moral of the article but just in case you have not, here it is: Good credit scores save lots and lots of money, and be sure to choose a moneylender wisely to get the best rate for your credit scores.

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Suze Orman’s Fico Kit Review: Learn How to Stay on Top of Your Finances

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Suze Orman is one of the country’s top financial advisors as well as a writer of many best-selling books and a television personality. The Suze Orman Show is on CNBC. She has written 6 books that have all hit the New York Times Best Seller list each time. She has also written, co-produced and hosted 6 PBS specials based on her books. She is also the top seller when she does hosting duties on QVC. In 2004 and 2006, Suze won 2 Daytime Emmy Awards for Outstanding Service Show for her then PBS shows. She was chosen by Time magazine as one of the most influential people in the world in 2007.

Suze Orman’s FICO® Kit Platinum is a great investment, in my opinion. Many people are in a place in their finances where they need a little help and have some questions. This kit is designed to help you manage your debt and answer any debt related confusion. I was on the verge of filing bankruptcy, I decided to go on to the MyFico website and purchase the Suze Orman’s FICO® Kit Platinum for $49.95. The price was surprisingly low considering the value I’m getting. I wouldn’t have been surprised if the kit cost more that 100 bucks.95 or so but it was surprisingly inexpensive for what you get.

The Suze Orman’s FICO Kit Platinum was very easy to install. All you need to do is put the CD into your computer and it will take you to a page where you enter some personal data so you can get access to your FICO score. There are three credti bureaus to choose from to get yoru credit score or you can even get it from all three. It is important to know your FICO score because it will help you to make wise financial decision in the future. So my score was pretty low and I was able to view my credit report and see why.

Once you purchase Suze Orman’s FICO Kit, you get a fifteen digit activation code to activate the entire program. The kit has a personal coaching guide that teaches you step-by-step how to get out of debt. The coaching lasts for 12 months from the date of activation. The cool thing about the coaching is that you learn how to improve your FICO score with tips from Suze and then take what you learn and plug it into a simulator and see how much you’re FICO score will improve if you take those steps. How cool is that?

Other nice features of the Suze Orman FICA Kit include a personalized action planner page. It takes all the information that you plugged in and gives you steps on what you need to do to get your FICO score higher. Another page asks you all your credit card info. Once you put all that information in the system, it tells you how much you need to pay each credit card and how long it will take you to pay off your credit cards. It also shows you how long it would take you to pay off those same credit cards if you were only paying the minimum amount.

I hope you have enjoyed this review of Suze Orman FICO Score Kit.

by Trent Goldenblum

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