Saturday, October 18, 2008

Do It Yourself Bad Credit Repair is Easy When You Know How

While looking for bad credit repair, many desperately want there to be a band-aid that will fix their broken lives. "There must be some quick and easy insider way of fixing things," some think. After all, there are so many advertisements online, on TV and in newspapers offering 100% guarantees and removal of the worst kind of blemishes, including bankruptcies, liens, judgments and bad loans. But are they legit?

According to the FTC, there are many credit repair scams out there. Many of these companies request as much as $3,000 upfront to settle your accounts, negotiate better debt repayment deals and erase all blemishes on your credit report. Credit repair companies have become a $7 billion/year industry, but not all parties can be trusted. You should never have to pay before you receive any services, as the Credit Repair Organizations Act mandates that bad credit repair services only charge when they have completed the services promised. As well, you should not trust someone who will not give you practical advice on what you can do on your own to repair your credit. If the company recommends that you not contact the credit bureaus directly, suggests you can get a new credit identity through an "Employer Identification Number" or advises you to fraudulently dispute even the legitimate information on your credit report, you should steer clear of their operation.

Here are some DIY tips for repairing bad credit. If you cannot afford a credit repair attorney and feel up to the challenge yourself, then you can use your sales and negotiating skills to get items deleted or at least changed in your favor on your credit report. First thing is, never make arrangements over the telephone. It's always best to craft a well-written letter instead and be sure you write this letter before you give the creditor any money or you will have lost your power to negotiate! If you have a "charge-off" listed on your credit file, then you can sometimes offer to adhere to a monthly payment plan and get creditors to replace them with "paid as agreed and on time." If you can't get that, then try for "account closed, account paid or account settled," all of which are more desirable than a charge-off. The best case scenario you could ever hope to achieve is a creditor to completely remove their account from your credit report, although it's certainly a rare best case scenario. Often with medical bills, the creditor will remove the bad credit debt if you agree to pay immediately, in full, with an additional fee or two, which will improve credit scores overnight.

If you're attempting bad credit repair on your own, then understand that there are no guarantees. However, it will only take a few moments of your time to shoot out a letter to your creditors, requesting an agreement that will take your credit report into consideration. If you have a "charge-off" from a closed account, then this could be extremely hard to get removed from your report. If the creditor is still actively trying to collect, you will have a 1 in 3 chance of getting a complete removal from your credit report. If you have an open account, like an installment or revolving loan, then there is a marginal rate of success if you offer to pay the full balance. Open/active accounts reported as "late payment" have a very high success rate of complete removal, particularly if the account is in collections. Creditors may say they cannot remove an account, but they absolutely have the power to do so. It's just that many of them are trained not to do that.

It is really nice to get a brand new credit card that has a high limit. At first you promise yourself that it is just for emergencies but before long you notice that you are using that credit card for day-to-day living expenses. To make matters worse, the problem usually does not stop with just one credit card. Slowly bad credit begins to accumulate and before long you find yourself in a world of trouble. There is not enough money to pay off the bills and interest keeps piling up. Stop living this way! There are ways to rid yourself of that baggage and find a better way to live.

To find out how to repair your bad credit repair Click Here Right Now.

Friday, October 17, 2008

Types of Credit Repair Services

Insurmountable credit debt is, in some ways, the result of modern day society. As we're trained to "keep up with the Joneses" and buy our way into the upper social echelons through purchasing power, we sometimes bite off more than we can chew. The average American household is saddled with $8,400 in bad credit debt. To regain control, millions of Americans have turned to credit repair services for a shoulder to cry on and a partner to help them through their hard times. The techniques a legitimate credit repair business employs are things you could do yourself, although most people say it's comforting to get the assistance and personal care, making it worth every penny in the long run.|If you've got a "pitbull" sales pitch, a knack for writing and guts of steel, then you probably don't need any credit repair services. Rather, with a few hours of your time, stationary for printing letters, a few stamps, your free annual credit report and a certain audacity, you can tackle disputable items and fix your credit. Many Americans don't like negotiating for better interest rates, items removed off their credit reports, settlement offers and monthly payment plans, so they turn to a credit repair business for assistance.

"Credit Debt Management" is one of the credit repair services you may choose to help you pay off what you owe if you start slipping behind. This is a worthy option if you are unable to keep up with minimum monthly payments on your unsecured credit card. This won't help you with department charges, car loans, student loans, tax payments, bills or mortgage payments but can alleviate all credit card debts. Perhaps you suffered a stretch of unemployment or encountered a sudden money-pit emergency. Regardless of how you got there, credit card debt reduction can offer you a deal that includes one affordable monthly payment, the waiving of late fees, a reduction in interest rates and freedom from collection calls. For many people, this is a great solution in avoiding bankruptcy. The best way to repair your credit is to pay your bills on time, and credit debt management will put you back on that track as quickly as possible.

Debt consolidation credit services will set you up with a loan to pay off your annoying creditors. If you charge everything and allow your purchases to pile up, find yourself using one card to pay off another and can't escape the accumulation, then a consolidation loan is probably the best way to put a stop to your out of control spending and repair your credit. You'll pay one monthly payment to your credit repair business, rather than trying to keep track of all the minimum payments for all your cards. You'll learn how to permanently stay out of debt and rebuild a positive credit history through an installment loan. Generally, you'll have the choice between taking out a secured or unsecured loan. A secured loan will be attached to collateral, such as your home or your car, which will be seized if you default on your promise. With an unsecured consolidation loan, there is no collateral but your interest rate will be higher. If you would like to learn more about diy credit repair click here.

Before you can tackle credit repair services, some people may require tax debt relief. Perhaps your accountant made a mistake that cost you thousands and you've been discovered. A tax expert can often negotiate to settle your tax debts for less. You may receive a settlement letter style compromise to decrease the amount owed, an affordable monthly installment plan, a deferment plan where you don't have to pay anything for a year, a partial payment agreement or a bankruptcy filing.

Do you know a nasty four letter word that most adults face every single day? No, it is not a curse word though to be honest...it feels that way. It is debt. This four letter word is responsible for people feeling as if they will never be free from the shackles of credit card bills and loan payments. You do not have to live your life around that four letter word. You can be free and be rid of the bills and credit card payments.

Want to know more about credit repair?: "Click Here"

Credit Card Debt can be a lot easier to get out of than you may think

As of July 2008, US credit card debt totaled $962 billion! It is estimated that 1 in 20 American households owe more than $8,000 in bad credit debt. There are many ways to get rid of this debt. You may try to go it alone or you may enlist a debt reduction or credit counseling specialist. Some people take out home equity loans as a quick fix, while others declare bankruptcy to wipe the slate clean. It all just depends on your personal financial situation.

For more information about getting out of debt: "Click Here"

If you're brave, then you can usually call and negotiate a repayment plan yourself to fix credit card arrears. Often, the first step toward regaining control is to assess how much money you make versus how much money you spend by listing your income sources, as well as your fixed expenses and variable expenses. Prioritize by unsecured credit card debt, mortgage payments and bills, then tack on food, health care, insurance and education. You may want to buy a computer software program like Quicken to keep track of expenses and bill payments. Next you can try contacting your creditors to work out a credit card debt payment plan.

To stop credit card debt, you should first only take advantage of offers you actually need. There is no reason to ever have more than 2 or 3 credit cards. Having an unsecured credit card you never use is worse than just buying one thing per month and paying it off each month. To build your credit wisely, you may want to use a secured credit card, where you pay the bank your credit limit upfront and then only take out what you have put in, which is sort of like a debit card, only this one gets reported to all three credit bureaus to show your progress. Speaking of debit, use your credit card as you would a debit card, subtracting each purchase from your savings to be sure you're not overspending. Ideally, you'll want to pay on time and in full because only paying off the minimum balances can take years to pay off the full amount, given the interest. Be sure you don't max out your credit cards as well. If you're using over 30% of your available credit limit, then your credit scores will go lower.

Rather than go through credit restoration services, you may want to attack your credit report on your own. You can order a free copy of your credit report from all 3 of the major credit bureaus, which are TransUnion, Equifax and Experian, at www.annualcreditreport.com, which should show all your late payments, collections accounts, loans and outstanding debts from the past 7-10 years. You can dispute some of the credit card debt or notations for free, which could boost your low credit score. You may click a few buttons online or mail in updated records to the credit bureaus or you may want to call your creditors directly and ask them to remove outdated information for you. This sometimes works for inaccurate information, but it's not a guarantee. Usually, when you mess up on your payments, you have to take a hit for at least 1-2 years. The good news is that your payment history from the past 48 months counts the most, so you can repair your credit by turning over a new leaf and borrowing more responsibly.

If given the opportunity most people would choose to live free and clear of all bills. That includes a home mortgage, a new car and credit cards. There would be enough money each month so that they could put back towards retirement or education. In a perfect world everyone would have exactly what they wanted and needed. But this is not a perfect world. Most people rely on credit cards, loans and mortgages in order to live. These allow them to live the way they want but it also puts them in bad credit.

Want to know more about credit card debt?: "Click Here"

Debt Consolidation Calculators- A Wise Option

As more and more people all over the work find their debt problems getting worse and worse, robbing them of their money and energy, you can be different.  To help you eliminate your debt, a wise option is the use of debt calculators.  They have many advantages, such as giving you good answers to any questions you may have about your debt and helping you understand the benefits of student loan consolidation.

If you are searching for the best loan available, a debt consolidation calculator will allow you to rapidly figure out which loan will save you money.  You will be able to calculate how long your debt will last if you just keep up with the minimum payments.  To do so, enter all of your debts, due to credit cards or other loans, and the correct APR.

It is also important to know how much you will have to pay on a monthly basis as a result of your debt consolidation loan. This can be determined by entering the period of time and APR.  You may be pleasantly surprised as to how quickly and economically you can get yourself out of debt.

If you have a goal as to how soon you want to be debt free, a debt consolidation calculator can also help you by specifying what you monthly payments will need to be in order to be successful.

This is done by entering several figures.  These are the amount you owe, the respective interest rates, and your goal as to when you want to be debt free.  You will then receive a specific payment amount.  The next step is to try to arrange your monthly budget to accommodate the suggested payment.

If you are truly resolved to get out of debt, adjusting your budget won't be as daunting.  A calculator will be a big aid in achieving your goal.

Another useful scenario for a debt consolidation calculator is to evaluate your debt payment plan by plugging in some numbers.  Again, you will be asked to enter in your debt amounts and interest rates.  Now, plug in the amount of money you are currently paying toward the debt each month.  The debt calculator will let you know how soon you will be debt free.  Does this fit into your financial goals as a reasonable length of time?

If you need help in consolidating student loans, there is no doubt that a debt consolidation calculator is a wise option.  By entering several easy to obtain figures, you will be able to meet your debt consolidation goals and set new financial goals for the future.

Thursday, October 16, 2008

{How to Eliminate Debt|How to get rid of Debt|How to Get Rid of Debts|How to eliminate credit card debt|How to get rid of credit card debt}

{Everyone's debt situation is unique and determining what will work best for you begins with categorizing your debt.|Each person's debt situation is unequaled to anyone else and realizing what will be the best program for you starts with classifying your debt.|Everyone's debt circumstances are different and figuring out what methods work best for you starts with sorting out your debt.} {Whether your debt is secured or unsecured significantly effects the measures you can take to eliminate debt.|There are a variety of ways you can handle and eliminate credit card debt.  The nature of your debt - secured or unsecured - may play a big part in determining what means are available to you.|If you want to eliminate credit card debt, you should determine whether your debt is unsecured or secured, because it significantly effects your options.}

{Secured debt is a loan which is "secured" by property.|A loan which is secured by property is a secured debt.|A secured debt is a type of loan which uses your property for collateral.} {Simply put, if the bank can come and take something from you if you don't pay|Simply said, the bank is allowed to take away from you a property you own if you don`t pay.|In other words, this occurs when the bank can claim some belonging of yours if you do not repay them.} {(ie; home, car)|(ie; house, auto)
|(for example, your vehicle and homestead)} {then the debt is secured.|then the liability is protected.|so the debt will be secure.}

{Unsecured debt is the most common type of debt and is typically in the form of credit card debt.|Of the many kinds of debt, unsecured is most frequently found and usually in the shape of credit cards.|Unprotected Debt Is Found To Be The Most Normal Type Of Debt Which Is Typically In The Form Of A Credit Card Debt.}

{Eliminating Unsecured Debt

The three most common ways to eliminate unsecured debt are
1.|Getting rid of unsecured debt
There are 3 primary ways to get rid of unsecured debt, and they are
I.)|There are three ways to get rid of unsecured debt, they are:
1.}{paying as agreed
2.|paying as decided
2.|making payments as agreed upon
2).}{bankruptcy
3.|insolvency
Three.|going bankrupt
3.}{reaching a settlement with the creditor for less than the balance due – also known as debt settlement or debt negotiation

Bankruptcy is rarely a viable option.|There are methods of resolution like debt settlement and negotiation.  These involve paying a percentage of the amount actually owed.  So you can see that bankruptcy is not a necessary solution.|Reach to negotiation and settle the debt amount...this is How to Eliminate debt.} {Due to the changes to the Bankruptcy Law in 2004 by the Bush administration, estimates are that less than 10% of people who file for bankruptcy are successfully discharging any debt.|Because of the alterations to the Bankruptcy Law in 2004 by the Bush government, guesses are that fewer than 10 percent of people who file for insolvency are effectively releasing any money owing.|The Bush administration changed the Bankruptcy Law in the year 2004, due to which it is estimated that less than 10% of people filing bankruptcy are able to discharge any debt successfully.}  {Most have to pay it back now under Chapter 13.|Under Chapter 13, it has to be paid back by most, now.|Chapter 13 requires that the majority of people pay it back.} 

{Credit Counseling and Debt Consolidation services typically focus on eliminating your debt by settling with your creditor for less than the balance due.|Credit Counseling and Debt Consolidation services  focus on how to eliminate debt by debt settlement and debt negotiation with your creditor for less than the balance due.|Consolidating or counseling focus on the elimination of debt by coming to a set amount with your creditor, that is less than what you actually owe.} {These services are typically owned by large banks and credit companies and typically charge a fee.|The services you can use to eliminate your debt are often owned by banks and credit card companies and they usually charge you a fee.|These services are basically owned by large banks and credit companies and they always charge a fee.} {The good news is, this is something you can do on your own.|However, this is something that can be done on your own, so that's good news.|The upside is that you can do this without assistance.}

{Settle For Less than the Balance Due

The key to a successful settlement is leverage.|Settle For a Lower Price than What is Currently Owed

Leverage is the secret to a triumphant settlement.} {If a bank thinks they can get more out of you, they will not settle.|If banks feel they can squeeze more from you, they won't agree to a settlement.|A bank will not complete a settlement if they think they can get more money from you.} {This means that you may have to go months without making any payments.|Not having to make payments for months may be the way you will have to go.|This means that you may have to go months without making any payments.
} {This will reflect poorly on your credit report and affect your credit score, but it is a necessary to obtain a good settlement.|Your credit score will be affected and that will also be reflected on your credit report, so what you have to do is to make a good debt settlement. |You can obtain a good settlement, but it will look poorly on your credit report and negatively affect your credit score.}

{During the time you are not making payments to the credit card company they will constantly attempt to contact you to discuss it.|During this period, you will not be making payments to your credit card company but they will be trying to contact you to discuss the situation.|When you are not making the payments to the credit card company they would be all the time trying to get in touch with you to discuss it.} {This is best dealt with from the very beginning by sending them a letter requesting that they only contact you in writing.|This is ideally dealt with from the start by sending a letter asking that they contact you only in writing.|The best thing to do with creditors is to send them a letter requesting they only contact you in writing so they don't contact you by phone.} {Also, it is very important that you familiarize yourself with your rights under the Fair Debt Collections Practices Act and the Fair Credit Reporting Act.|Moreover, it’s extremely essential that you have yourself acquainted with your privileges below the two acts naming Fair Credit Reporting Act and the Fair Debt Collections Practices Act.|It is also crucial that you know your rights in regards to the Fair Debt Collections Practices Act, as well as the Fair Credit Reporting Act.} {Collections representatives often behave in unscrupulous ways and knowing your rights is your key to fighting back.|Knowing what your rights are is the key when dealing with unscrupulous collection representatives.|Knowing your rights is your key to fighting collections representatives who often conduct themselves in roguish ways.}

{Once you have sufficient leverage against the company it is time to attempt a settlement.|When once you have acquired sufficient leverage against the company then it is time to try a settlement.|You should attempt to make a settlement once you have sufficient leverage.} {A realistic goal would be to settle the debt for between 35%-50% of the balance.|A rational objective would be to resolve the debt in 35 percent to 50 percent of the balance.|You should realistically expect to settle the debt for between 35%-50% because it's much more likely.} {Contact the bank or credit card company directly and they will likely transfer you to their collections department.|You'll probably be transferred to the collections department if you contact the bank or credit card directly.|If you need to talk to the collections department all you have to do is call the bank or credit card company and they can connect you with them.} {Once in touch with the collections representative simply let them know you wish to resolve the debt.|When you talk with the collection agent, you should tell them what you plan to do to take care of your debt.|When you talk with the collections representative communicate to them that you are ready to pay off the debt.} {Typically, they will make you an offer to settle for 65%-80% of the balance before you ever make an offer to pay.|Usually, they will present you with an offer to settle for 65%-80% of the balance before you ever propose an offer.|A typical scenario is that they will offer to settle for an amount ranging from 65% to 80% of your balance before you ever make a payment offer. } {Let them know what you do have; an initial offer of 15%-25% of the balance is reasonable.|You must let them know what you have; the initial offer could be 15%-25% of the balance is quite reasonable.|Show them what you found out and make sure they understand why an initial offer of 15%-25% of the balance is fair.} {They may tell you no or tell you that they have to speak with their manager but continue the negotiation as necessary to settle within the range that you desire.|You may be told the answer is no or that they need to speak with their manager, but don't back down in the negotiation to settle within your desired range.|You may be told that they have to consult their manager but you must continue the negotiations until you have reached the range that you desire.}

{Some credit companies are more apt to settle than others.|Some credit companies are easier to deal with when trying to settle credit card debt than other companies.|There are some creditors which are more inclined to reconcile than others.} {For instance, American Express can be a very difficult company to settle with for less than 60%.|For example, trying to settle for less than 60% with American Express is very hard to do.|For example, resolving anything with American Express for less than 60% is hard to do.} {Search the internet for information on your particular bank or credit card company to see how others have fared.|You can easily rate your credit card company or bank against others simply by browsing the internet.|Check the internet for information regarding your specific credit card or bank company and see how others have progressed.}

Wednesday, October 15, 2008

Debt Relief Clearinghouse - Viable Option for Debt Relief

Unfortunately, we live in times that can very unpredictable and turbulent.  The housing market is fallen flat on its face, inflation is getting out of hand and if you still have a job, you are one of the lucky ones.  Still worse, people are finding themselves in debt and having no way out.  If you are in financial turmoil, you may want to look at a debt relief clearinghouse service to get you back on your feet.

Debt relief clearinghouse can be a huge help if you find yourself in a very difficult financial position. Maybe you lost your job, lived beyond your means, or are simply inundated with high interest credit cards you no longer can afford. All these things can be overwhelming and will not get better until you take action.

If you are in this situation, there are a number of debt relief clearinghouses ready to help with a word of caution. Just because they come up on the first page of Goggle when doing a search, does not necessarily mean they will look out for your best interest. Keep in mind, there are a lot of fraudulent companies out there and many have helped to get this country in the financial mess we now face -- keep your wits.

Most clearing houses will charge a fee in some way, shape or form. A common misconception are that these services are free. Most are not. Unless you find services in a church or some other non-profit organizations, be prepared to pay some kind of fee.

There are a number of options that come with working with a debt relief clearinghouse. Probably the easiest and fastest option is a debt consolidation of all your loan debts into one loan with a similar or better interest rate. This option does nothing to reduce your debt, but may allow you to manage it better. The other option is debt settlement. With debt settlement, the service provider will negotiate with your creditors on your behalf to reduce your overall debt. This can be a win-win situation for both you and the creditors. Debt settlement can be a bit of a gamble though since creditors may not be willing to forgo what's coming to them. Keep in mind, that debt settlement could be a much more difficult method, it will depend on your situation.

So there are options available when working with a debt relief clearinghouse service. Debt consolidation and debt settlement are only two of the common ones. You should proceed with caution however as many companies are only looking to monetize your unfortunate situation.

Monday, October 13, 2008

How to Eliminate Debt - Top Debt Elimination Methods

Each person possesses different types of debt. Therefore, looking for the method that will work in order to eliminate that debt may vary depending upon the type of liability that you have since you may either possess a secured or unsecured debt.

Basically, secured debt is a loan that is being "secured" by a property; therefore the bank can come and take the property from you in case you failed to pay your obligations. On the other hand, unsecured debt is the kind of debt which is usually available in a form of credit card debt. In this article, we’ll focus more on the latter kind of debt.

Getting Rid of Unsecured Debt

Here are some processes that you can do:

1.    bankruptcy
2.    paying as agreed
3.    going for a settlement with the creditor and paying lesser than the balance due. (this method is better known as debt settlement or debt negotiation)

Among the 3, bankruptcy is seldom a feasible alternative because of the alteration created on the Bankruptcy Law in 2004 wherein people are now asked to pay back the amount as stated on Chapter 13.

A better debt elimination progam than bankruptcy:

That said; the good method that one can choose is to go through a Credit Counseling and Debt Consolidation services which is done by settling for a lesser balance due hence one is no longer expected to pay the original amount but only a portion of it. Large banks and credit companies would normally offer these services although they would normally charge an additional fee for this.

Now, the best method that one can do in order to eliminate debt is though the process of leverage. During those months when you failed to make the necessary payment, banks and companies that you have a loan with will constantly attempt to contact you to discuss your options. The thing that you must do with them is to contact them in letter and ask if they can stop calling on your phone and merely settle in writing. It is also necessary that you are aware of all your rights which is written on the Fair Debt Collections Practices Act as well as Fair Credit Reporting Act specially these days when most collections representatives would normally behave in an unscrupulous manner just to get what they want. Knowing your rights can give you the chance to fight back.

The moment when you have an adequate leverage against the company, it is exactly the right time to opt for settlement. A sensible goal must be to settle the debt for about 35%-50%. So you will be entertained better, you can contact the bank or credit card company directly instead of sending them mails and phone calls. When you visit them personally, they will have to transfer you into their collection department that will help you plan on how to resolve the debt. Normally, they will make an offer; don’t be afraid to say that you wish to only pay about 15%-25%. They may often say ‘no’ at first, but if you are persistent enough they will ask you to talk with their manager. This is a sign that you’re wish can be granted.

These are some of the top debt elimination programs you can use to eliminate your credit card debt.  Learn more at Debt Cures