Archive for July 7th, 2010
Is the debt settlement industry trustworthy?
Wednesday, July 7th, 2010In answering the question, “is the debt settlement industry trustworthy”, we also have to ask the questions, “is there competition?”, “is the competition trustworthy?; and what does “trustworthy” mean? Is it synonymous to “of worth?”
If the issue is about debt settlement is worth and competition – according to the research paper submitted by Franklin Debt Relief’s CEO, Robert Zangrili, 1) there are more resolved cases in debt settlement than in credit counseling and 2) the drop-out rate in credit counseling is higher than in debt settlement. Which is not to say that credit counseling never worked, or does not work. It in fact does, but for debt amounts that are relatively low ($10,000 and below) and for accounts that are still current. Debt settlement just works better with accounts that have high balances ($10,000 and above) accounts that are already delinquent.
The new state legislation that was passed in the state of Illinois bans advanced fees and caps settlement fees at 15% — which the debt settlement industry objected to as it would put them away for good, slowly. The industry standard fee is 15% of the total debt amount or 20-25% of the settlement amount. Which the state department sees as too much. But according to a debt settlement lobbyist, “HB 4781 (or the Illinois Debt Settlement Consumer Protection Act) allows credit counseling companies to collect fees that are up to six times higher than the fees allowed by debt settlement companies). So if the lawmakers are against the modest debt settlement fees, it’s a bit puzzling why the case is not the same with credit counseling agencies.
As for the consumers, they are concerned about paying fees for nothing as the banks might refuse to settle, which they most likely will (if the account is still current and the consumer can’t afford to give 75% of the balance in one lump sum) and either sue the client for judgment (wherein they’d get the full amount back somehow) or pass the account on to a third party collection agency (which they probably own and get a portion of the debt) , both of which are more favorable to them than debt settlement (which is more favorable to the consumer).
Law makers think that the per-debt-settled basis, for fees, make more sense than money-down or advanced fees before any service is done. The state department has received numerous reports about consumers filing bankruptcy after not being able to achieve anything with the debt settlement company. There are some who say that the industry would survive with the per-debt-settled basis, however, some companies have already folded because of its enforcement.
So where can the legitimate debt settlement be found?
Debt Free Destiny can consumers get matched up to the right company for free, just go to the site and fill out a form.
What are the guidelines in choosing a worthy debt settlement company?
-The settlement company’s program must have a fast completion time. 12-36 months.
-The program must be able to protect and improve the consumer’s credit standing.
-Must also have a good standing with the Chamber of Commerce
-A Member of TASC – The Association Of Settlement Companies and the IAPDA or the
International Association of Professional Debt Arbitrators
-
About the Author:
To learn more, visit our homepage at http://debtfreedestiny.com
Article Source
Card costs 'lower than five years ago'
Wednesday, July 7th, 2010An expert has said that store cards charge less now than in 2005.
An expert has defended the cost of processing card payments for retailers because these fees have dropped over the course of the last five years.
Store cards – which act like a credit card in so far as you are able to buy now, pay later, meaning that the money does not leave your current account immediately – have long been a popular way for people to buy retail items from their favourite shops.
However, a recent report by the British Retail Consortium (BRC) which was published earlier this month called on the government to intervene over the perceived excessive charges levied on retailers by banks for accepting payments via credit cards.
The study stated that a combination of unjustifiably high charges and the growth of non-cash payment methods could lead to both shoppers and retail outlets being hit while the banks enjoy financial windfalls.
The BRC found that banks’ fees for handling debit card payments have almost doubled over the course of the last five years and the effects of the global economic downturn could mean that this figure will rise again in the near future.
Banks charge retailers 34 pence when a customer completes a transaction with a credit card, whereas this figure drops to 2.1 pence if the goods are bought using cash.
However, despite this upward trend analysed by the BRC, Sandra Quinn, director of communications for the UK Cards Association, maintains that these costs are fair due to the fact that they have dropped since 2005.
“The key thing from our point of view is that if you compare card costs from five years ago – they are lower [today],” she said.
The expert added that most card providers have justified such charges in the past by citing fraud protection arrangements and interest-free periods.
“What they [the BRC report] have not accounted for is that with a card service you might be getting a fraud guarantee. With cash, you lose it – it is gone,” added Ms Quinn.
-
About the Author:
UK Price Comparison website http://www.which4u.co.uk Compares Credit Cards, Savings Accounts, Fixed Rate Bonds, Bank Accounts, ISAs, Loans, Mortgages, Insurance, TV & Broadband and Gas/Electric bills to find the best UK deals
Article Source
How to Use Your Prepaid Credit Card Wisely
Wednesday, July 7th, 2010Today, prepaid credit cards are slowly going mainstream. More and more people switch into using prepaid debit cards to have more control over their finances. Since, prepaid credit cards are also a business themselves, there are also certain charges. These charges are not as high as credit card rates and APR’s. But still, owners have to learn how to use their card well to make the most out of it.
Buy in bulk when purchasing online.
Buying online certainly saves more time and effort. Shoppers no longer need to trawl the isles and carry those shopping baskets just to shop. This modern way of shopping is usually paid with a visa pre paid. In using a prepaid card online, there’s a $1 charge. Although this amount may seem negligible, the more things bought, the more charges incurred. So, the tip then is to buy things in bulk at one time. List down first what things are really necessary to be bought and try to put them all on the one transaction.
Charge the card with the right amount to pay.
Although prepaid credit cards are now a safer way to transact online, don’t be too trusting. Amazon.com and e-bay are secure websites. But in case it is a necessity to purchase something at a new site, be sure to take some referrals first. Ask a friend if the site is safe enough to make a transaction. If there’s no time to inquire, deposit the right amount (plus the closing fee) to avoid being overcharged. There are also cases in restaurants where waiters are sneaky. To prevent them from charging huge tips, be sure to write the tip on the sheet. Afterwards, review it just to be sure there are no discrepancies.
Using the ATM feature
The other advantage of having visa prepaid is that it can be used as an ATM. Although this feature will enable users to have fast cash during emergencies, some costs are also associated by using it. Sometimes the bank doesn’t explicitly state the fees associated with using the ATM. To be able to avoid these scenarios, ask the bank or just read the fine print. The legalities might be boring and confusing but taking the time to comprehend what it’s all about may save money in the future. If there are no fees associated with using the ATM feature, maybe withdrawing from a bank not affiliated with the issuing bank will cost the charges. If so, know the issuing bank’s affiliates to know where the “friendly” ATM machines are.
-
About the Author:
Sean Teahan co-founder of Cash Doctors,Australia’s preferred short term lender, shares his insights on money matters. Founded in 2005 Cash Doctors has helped thousands of Australians with their fast cash loans but that’s just the short term solution. Cash Doctors also help people in the long run by providing budgeting tools, e-books and individually researched articles on money matters and financial tips. The aim is to assist people in achieving instant and long term financial freedom.
Article Source
Collections. To pay or not to pay?
Wednesday, July 7th, 2010I have owned a Credit Repair/Restoration company for almost 10 years now. It is amazing to me that as credit oriented that this country is that our school system doesn’t teach us a thing about in all our years of both public and private schooling. We generally don’t learn about credit until we get out there in the real world. Even those of us with great credit scores don’t seem to have a clue how that score is computed. I always encourage people to take on my job themselves but unfortunately without the proper direction they usually end up shooting themselves in the foot! I’ll share a very common mistake that I see that people make with you.
A woman called my office a month ago and wanted to know why her score dropped 20 points from 580 to 560 after she paid off $12,000 in collections. I looked at her report only to discover that the collection accounts she paid off were 4, 5, and 6+ years old. One of them was scheduled to come off her reports in just 6 months. I asked her how she came to the revelation that paying these old debts would improve her score? A broker that she spoke with said according to a computer program that he had that used a “what if” scenario told him the score should improve about 40 points. Instead it dropped 20! The one thing these “what if “scenarios do take into consideration is DLA!
What is DLA you might wonder? Well my friend, it is one of the most determining factors that contribute to that credit score that everyone is so concerned with yet knows very little about. DLA stands for Date of Last Activity. If you are 30 days late on something today, it could be for a $8,000 mortgage payment or a $10 credit card payment, you are 30 days late is how your credit score looks at it. Now your score will drop 100-150 points immediately! Once you catch up, you were still 30 days late last month and will only recover about 25 points. Your score will be harmed severely for about 6 months and then gradually recover for the next 36 months! So a 30 late on an $8,000 mortgage 5 years ago means nothing to your credit score whereas a 30 late on a $10 minimum payment today can devastate a otherwise healthy credit rating!
When it comes to collection accounts, a collection is a collection. It doesn’t matter that it’s for a medical procedure, a library book, or a $55,000 cell phone bill, yes I’ve seen one of them. They all affect your credit the same way as a late payment and when it occurred. Now, I’m not someone that will tell you not to pay your bills but I will tell you what will make your score go up or down. Pay attention, if you had a collection the occurred within the last 2 years, your best course of action is to pay it. Your score will improve slightly, maybe 10,20,30, or more points depending on how long ago it appeared and how much. Now, there is a big difference in when it occurred and when it appeared on your report. What you need to determine is when the last time that the ORIGINAL CREDITOR received a payment. That is the point of DLA. If the last payment occurred between 2-3 years ago, your credit score most likely won’t move at all because you are now making something current that has age to it. Now if the DLA was 3 years or more, by paying it off you will only damage your score and the older the item, the more damage you will do to your credit score.
When paying off a collection, you are not removing it from your report but just updating the status to a paid collection. A judgment, tax lien, charge-off and collection accounts are all negative entries on your credit report. Paying them off now makes them a paid judgment, paid tax lien, paid charge-off, and a paid collection. The damage was done when it was placed on your report and by paying them doesn’t undo the harm that it did to your score. It just updates the status on your report and your DLA will determine whether your score will improve or drop.
That will be the day when this country wakes up and just like Math and English; they start to teach us credit so we can have a better understanding of this mess before we get out there in the real world!
-
About the Author:
Business owner for 10+ years in Credit Restoration/Repair.
Article Source
Some answers on the redemption of credit
Wednesday, July 7th, 2010A lot of people who encounter financial difficulties now impossible for them to repay their monthly installments and pay their expenses, use a credit retrieval to improve their financial situation.
It is therefore essential to know the outline of consolidation loan …
The purchase of credit is not just for people in serious debt. It also represents a solution for anyone seeking to consolidate its credit and debt into one loan in order to find serenity in the management of its budget.
(A person is in debt when its debt represents more than 35% of revenues. It is overloaded with debt beyond 50%.)
The depreciable bank credit is available to all individuals: landlords, tenants, people housed by the employer, hosted by the family or third, whatever their profession and their family circumstances who wish to reduce the amount of their monthly credit, the number of credit or debt ratios.
Most of the funding, duration and different interest rates, may be included in the purchase of credit: credit real estate (with or without mortgage rate fixed or variable), revolving credit, consumer credit, personal credit, credit work , credit auto / motorcycle. Excluded: borrowers FCC / FICP professional debts, delays URSSAF / VAT, 0% interest loans.
Other amounts, such as debts, may also be integrated into the takeover of credit.
The borrower can choose to use an intermediary in banking operations for its acquisition of credit. This professional has an obligation to provide information and advice to his client that supports throughout the installation folder. It must guarantee the best bid for funds by choosing partners who has the best proposal based on their profile.
The purchase of credit allows the borrower to reduce monthly payments of 30-60%.
It should nevertheless be careful not to enter a new spiral in the cost of many loans. The borrower may, if desired, requested in his application for a credit purchase additional cash to fund a new project …
A person who has already received a takeover of credit can make a second request. However, the first group of credit should not have been incidents of payment and a minimum of one year must have elapsed between the two applications.
These requests are uncommon and current rates make this transaction unattractive.
If you liked this articles, make sure you also visit 7zip portable and financial debt help.
-
About the Author:
Self Credit Repair – It's Easier than the Credit Repair Companies Want You to Believe
Wednesday, July 7th, 2010If you have been researching credit repair options on the internet, you’ve probably read enough conflicting information to convince you that there’s a lot more to fixing your credit than there actually is. As a matter of fact, if you’re anything like most consumers, you may even be thinking that you won’t see any real results until you sign on with one of those expensive credit repair services. That’s simply not the case. The fact is that those companies put a lot of money into flooding the web with information (much of it misinformation), and the purpose of all of it is to push consumers through their doors. Don’t fall for it!
The truth of the matter is that creating the credit dispute letters you need to accomplish basic self credit repair is not that complicated. It’s not exactly a no-brainer, but then, you’ve got a brain, right? So you don’t need a no-brainer. You can do exactly what any credit repair company would do for you, and you can do it for free. But don’t take my word for it. The Federal Trade Commission says the same thing on their website when they encourage consumers to investigate and undertake their own CreditRepair.
The basic function of a credit repair company is to create credit dispute letters to send to the credit bureaus, the purpose of those letters being to get things wiped off your credit report. But there’s not a step in that process that you as a consumer cannot undertake on your own behalf.
Even if you’re not a good writer, you can create these credit repair letters on your own, and you don’t have to start from scratch either. There are plenty of credit letter samples and templates you can use for free online. In fact, the FTC’s site that I referenced earlier offers one such sample credit dispute letter. It will work just as well as any of the others I’ve seen.
Simply copy whichever sample credit repair letter you choose into a new document, put your account information into the appropriate places for the items you want to dispute (making a new letter for each item you wish to dispute), and mail those letters to the reporting bureaus. Also be sure to include an ID page, which should contain very clearly legible copies of your social security card, your drivers license, and a utility bill. All those items must bear your current address too.
I am always amazed when I hear people talk about the work they had a credit repair company do for them. Every time I’ve asked such a person if they tried to do self credit repair first, the answer is always the same: “Oh, I wouldn’t have known how to do that.” Well, of course you wouldn’t, but you could have learned it with just a little research, and you could have saved yourself a great deal of money. I have helped very many clients understand and undertake self credit repair, and I know the results can be every bit as impressive as any credit repair company can achieve.
I have helped hundreds of people perform repair their own credit, and I have seen amazing results to their credit scores-results every bit as good as the ones those same clients would have gotten if they had paid a pricey credit repair service to create their credit dispute letters for them. But by undertaking CreditRepair on their own, they saved themselves that hefty fee, which I’ve never known to be less than $250 dollars, but usually much more than that, even up to thousands of dollars. There’s just no reason not to try the method that even the FTC acknowledges to be the best credit repair option.
-
About the Author:
Matthew Wierzbinski is the owner of http://CreditBlossom.com, which offers both written and video instructions on how to repair your own credit. It also offers the public free use of its amazing credit repair letter generating tool, the free and easy Credit Repair Letter Wiz™, which can be found at http://creditblossom.com/Content/LetterGeneratingTool.aspx.
Article Source
What will happen if I don't pay my credit card bills?
Wednesday, July 7th, 2010Question: What will happen if I don’t pay my credit card bills?
Answer: The first thing that happens is a derogatory remark of late payment goes on your credit file when you are 30 days, 60 days, and 90 days late. Your credit score is based 33 percent on payment history, so any late payments are a serious matter and can jeopardize new credit, insurance rates and sometimes even job applications.
A late payment could also bump up your APR to a default APR, which is quite often very steep. But continued late payments could also bring on harassing phone calls and demands for payment. If serious enough, it could lead to judgments, liens, and lawsuits for payment. Late payments are nothing to fool with.
You can demand the debt collectors stop contacting you, and if you are not subject to judgments, nothing more than a very tarnished credit history will result. But don’t bother trying to apply for more credit, a job or housing rental, all of which require a credit check these days.
Important Note! The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we can not guarantee the accuracy of the information in this article. Please verify all terms and conditions of any credit card prior to applying.
Other Articles:
Best Credit Cards For A College Students Negotiate debt settlement credit card Identity theft and credit card fraud Settling credit card debt with Bank of America
-
About the Author:
Free Tips to Check and Improve Your Credit Score
Article Source