Submitted by saturnino
The first known property insurance originated before the dawn of Christianity, in the first century BC. Chinese merchants wanted to protect themselves from shipping losses due to storms, pirates, and other harmful experiences at sea.
They divided each cargo among many ships as a means of insurance against losing the entire cargo.
In the Western world, it was British merchants who originated property insurance. They developed the habit of passing the time of day in a coffeehouse located near the docks, named Lloyd's. The more daring merchants offered to finance potentially hazardous trade voyages; they coined the term " Underwrite" to describe this method of financing, so they became the first insurance underwriters.
Over Time, underwriters became more skilled at predicting losses so insurance rates could be standardized. Soon,individuals began to form companies to provide adequate protection for a larger portion of the population.
The first property insurance company was established in London in 1667, the year after the city was almost obliterated by fire.
Benjamin Franklin established the first organized insurance company in the new World in 1752, the Philadelphia Contribushionship for the Insurance of Houses from Loss by Fire.
The first acident insurance policy in AMerica was sold in 1863. Soon after this, insurance against loss from burglary ( property taked by forced entrance ) was offered and theft insurance to cover other forms of stealing followed in 1899. The first workers' compensation insurance was sold in 1910.
The insurance companies grew, both financially and in their understanding of how to share and manage risks. originally, it was the underwriters themselves who tried to interest people in buying insurance coverage, talking among their business acquaintances. However, this proved to be too time consuming when it came time to travel to attract new customers. So they appointed people to travel by horseback into the countryside to meet more people who might like to buy the coverage they offered. These were the first insurance " agents".
Generally, a person who buys an insurance policy is paying a small amount of money to receive the promise that, if there is a loss to the individual, the insurance company will pay for it. The funds to pay for the loss come from all the premiums paid by every person who did not have a loss, and earnings from the company's investments of the premiums.
Of course, it's more than just a promise from the insurance company: it's actually a legal contract between the individual and the company, a piece of paper detailing the coverage, its value and its limitations.
Stefano Sandano is an insurance expert and if you want to know more about car insurance tips you can visit his online resource at http://www.buy-car-insurance.net
Source: http://www.articleavenue.com
Saturday, January 27, 2007
Tax Advice: Middle Class Tax Shelters Everyone Can Use, Many Don’t
Submitted by skrob
Many people lose money for years to landlords because they mistakenly believe they cannot afford to buy a home. However, in most cases, these renters are where they are only because they are unaware of all their other options. Most people know that it's better to put your money into a house that you own than into a rent check you never see again. Some are aware that mortgage payments could actually be fairly close to what they currently pay in rent.
What few people realize are the tax benefits stemming from owning a home can actually save them hundreds of dollars each month. After taking into account these additional savings, which would you choose: giving up a large chunk of your paycheck each month to a landlord for a small apartment, or, for significantly less money, having not just your own home, but also the freedom to take your money out again in the future?
How Tax Benefits Work
Tax benefits from home ownership come in the form of deductions. Come tax time, the amount of money you spent on tax-deductible expenses related to your home financing (many of which are outlined below) is subtracted from the total amount of taxes you owe. Depending on how much you owe and how much you put into your home over the course of a year, home financing could actually result in zero tax liability. That means that your new home may actually bring you a refund check!
For example, assume you owe $12,000 in taxes for the past year, and your mortgage payment is $1,000 per month. In the early years of a mortgage, payments are usually almost entirely for the interest you owe on your home loan. Mortgage interest payments are tax-deductible, so from this one deduction alone, you now owe $12,000 less in taxes—which brings the total amount you owe the government to zero. If your employer withholds taxes from your paycheck, you will receive a refund check for the tax you overpaid.
Tax Benefits for All Mortgages
- If you own property, then you pay property taxes. These are always fully tax-deductible.
- Points on a home mortgage are fully deductible.
Tax Benefits for New Mortgages
- As mentioned earlier, the payments you make in the early years of a home financing loan generally go straight to interest. The principal, or actual amount of the original loan does not start to go down until later in the loan period. This means that early on, you can deduct most, if not all, of an entire year of mortgage payments.
- Both late and early payment fees charged by your lender are considered interest and can be deducted.
- Many tax benefits available in the first year of your mortgage are not available later on. It is always a good idea to go over your situation with an accountant to be sure you do not miss any opportunities for savings. These first-year tax benefits include moving expenses and capital gains.
Tax Benefits for Refinancing a Current Mortgage
- If you are refinancing in order to make improvements to your property, then the interest is deductible. Anything that could reasonably improve your property value—from fixing the driveway to adding on an entire new story—counts.
- Interest on refinanced mortgages that are taken out for expenses not related to home improvement can also be taken as a deduction, but only within certain guidelines. Currently, the maximum deduction for the life of the loan is $100,000. (Married couples filing separately each have a maximum of $50,000.)
- Points on a refinanced home mortgage are still tax-deductible in most cases.
Benefits Beyond Tax Savings
No one would complain over having a few extra dollars in their pocket. Not only can financing your home save money on your next tax return, but it can also save money on purchases made using money received from refinancing a mortgage (or simply money not lost to rent). In fact, paying off credit cards after financing can be one of the smartest financial moves you can ever make—especially if you keep those cards paid off.
Consider that even the worst mortgage interest rates can be at least ten or twenty percentage points lower than those for the average credit card. People with poor credit are often better off with a higher mortgage interest rate if it means their other debt can be reduced, thereby bringing their credit score up. After re-establishing their credit, they can then refinance their home at a better interest rate.
Individuals everywhere, looking to get out of debt and begin investing can turn to the debt aide organization National Association of Responsible Lending and Investment at http://www.NARCLI.org. You may reach debt relief and investment experts via email to Question@NARCLI.org.
Source: http://www.articleavenue.com
Many people lose money for years to landlords because they mistakenly believe they cannot afford to buy a home. However, in most cases, these renters are where they are only because they are unaware of all their other options. Most people know that it's better to put your money into a house that you own than into a rent check you never see again. Some are aware that mortgage payments could actually be fairly close to what they currently pay in rent.
What few people realize are the tax benefits stemming from owning a home can actually save them hundreds of dollars each month. After taking into account these additional savings, which would you choose: giving up a large chunk of your paycheck each month to a landlord for a small apartment, or, for significantly less money, having not just your own home, but also the freedom to take your money out again in the future?
How Tax Benefits Work
Tax benefits from home ownership come in the form of deductions. Come tax time, the amount of money you spent on tax-deductible expenses related to your home financing (many of which are outlined below) is subtracted from the total amount of taxes you owe. Depending on how much you owe and how much you put into your home over the course of a year, home financing could actually result in zero tax liability. That means that your new home may actually bring you a refund check!
For example, assume you owe $12,000 in taxes for the past year, and your mortgage payment is $1,000 per month. In the early years of a mortgage, payments are usually almost entirely for the interest you owe on your home loan. Mortgage interest payments are tax-deductible, so from this one deduction alone, you now owe $12,000 less in taxes—which brings the total amount you owe the government to zero. If your employer withholds taxes from your paycheck, you will receive a refund check for the tax you overpaid.
Tax Benefits for All Mortgages
- If you own property, then you pay property taxes. These are always fully tax-deductible.
- Points on a home mortgage are fully deductible.
Tax Benefits for New Mortgages
- As mentioned earlier, the payments you make in the early years of a home financing loan generally go straight to interest. The principal, or actual amount of the original loan does not start to go down until later in the loan period. This means that early on, you can deduct most, if not all, of an entire year of mortgage payments.
- Both late and early payment fees charged by your lender are considered interest and can be deducted.
- Many tax benefits available in the first year of your mortgage are not available later on. It is always a good idea to go over your situation with an accountant to be sure you do not miss any opportunities for savings. These first-year tax benefits include moving expenses and capital gains.
Tax Benefits for Refinancing a Current Mortgage
- If you are refinancing in order to make improvements to your property, then the interest is deductible. Anything that could reasonably improve your property value—from fixing the driveway to adding on an entire new story—counts.
- Interest on refinanced mortgages that are taken out for expenses not related to home improvement can also be taken as a deduction, but only within certain guidelines. Currently, the maximum deduction for the life of the loan is $100,000. (Married couples filing separately each have a maximum of $50,000.)
- Points on a refinanced home mortgage are still tax-deductible in most cases.
Benefits Beyond Tax Savings
No one would complain over having a few extra dollars in their pocket. Not only can financing your home save money on your next tax return, but it can also save money on purchases made using money received from refinancing a mortgage (or simply money not lost to rent). In fact, paying off credit cards after financing can be one of the smartest financial moves you can ever make—especially if you keep those cards paid off.
Consider that even the worst mortgage interest rates can be at least ten or twenty percentage points lower than those for the average credit card. People with poor credit are often better off with a higher mortgage interest rate if it means their other debt can be reduced, thereby bringing their credit score up. After re-establishing their credit, they can then refinance their home at a better interest rate.
Individuals everywhere, looking to get out of debt and begin investing can turn to the debt aide organization National Association of Responsible Lending and Investment at http://www.NARCLI.org. You may reach debt relief and investment experts via email to Question@NARCLI.org.
Source: http://www.articleavenue.com
Credit Scoring: What is it and how does it affect me?
Submitted by mcalmartin
In recent years, a credit score has become an invaluable tool in the decision-making process of granting or declining an application for finance. As responsible lenders, banks and financial institutions take into account your personal circumstances in order to try to establish the appropriate level of credit to give to an applicant, and to help them do this, most lenders will calculate a credit score to help assess an application.
Credit scoring is the technique used to assess the probability of an applicant for finance being able to meet their financial commitments and is subject to an array of determining factors. In most cases, information used by companies to provide a credit score will include information from the applicant’s credit report, available from credit reference agencies such as Experian, along with other data such as how long the applicant has lived at their current address, their employment status, their earnings and outgoings and whether or not they are registered to vote.
Credit scoring works by allocating points for each piece of relevant information provided by the applicant and adds these points together to provide a score. If a score reaches or exceeds a certain level, then the lender is more likely to approve the application for finance. However, if the score fails to reach the required level, then the lender may decide to impose special terms (such as a higher APR), offer an alternative product or reject the application altogether.
Financial institutions are vastly experienced when it comes to assessing credit-risk, and in addition to an applicant’s credit score and personal information, most companies have access to a huge amount of statistical and demographic data. By combining these resources, lenders can provide a fair assessment of an applicant’s likelihood of being able to meet their financial obligations.
Once an application for finance has been approved, and repayments have begun, the lender can mark the agreement on the borrower’s credit report. This information can show whether a finance agreement is in good standing, in arrears or if the account is in default. Entries into a credit report by lenders can affect a borrower’s credit score, especially if they run into financial difficulties. Late payments and defaults can seriously damage a credit score making it extremely difficult to obtain credit in the future.
Many financial accounts that become defaulted are bought by debt collection agencies, such as Capquest Debt Recovery. These companies specialise in the collection of unpaid and delinquent debts. However, when a debt is bought by such companies and repayment has been established, a borrower’s credit report doesn’t show that repayments are being made. As such, this means that as far as lenders are concerned a debt remains unpaid, even if the borrower pays off the debt in full. However, there are discussions in place between financial companies and credit reference agencies that may allow debt collection agencies to be able to report on a debtor’s credit file, so repayment histories can be shown and credit scores amended accordingly.
With the recent upsurge in identity fraud, it is becoming more and more common to find erroneous entries on a consumer’s credit report, so it’s a good idea to check your credit report from time to time, in order to make sure that information held on your report is accurate and showing all the relevant information. After all, any potential borrowing you might consider is influenced by the data on your credit report, whether it is legitimate or not and this will be reflected in any future credit-scoring that lenders might perform the next time you apply for finance.
Source: http://www.articleavenue.com
In recent years, a credit score has become an invaluable tool in the decision-making process of granting or declining an application for finance. As responsible lenders, banks and financial institutions take into account your personal circumstances in order to try to establish the appropriate level of credit to give to an applicant, and to help them do this, most lenders will calculate a credit score to help assess an application.
Credit scoring is the technique used to assess the probability of an applicant for finance being able to meet their financial commitments and is subject to an array of determining factors. In most cases, information used by companies to provide a credit score will include information from the applicant’s credit report, available from credit reference agencies such as Experian, along with other data such as how long the applicant has lived at their current address, their employment status, their earnings and outgoings and whether or not they are registered to vote.
Credit scoring works by allocating points for each piece of relevant information provided by the applicant and adds these points together to provide a score. If a score reaches or exceeds a certain level, then the lender is more likely to approve the application for finance. However, if the score fails to reach the required level, then the lender may decide to impose special terms (such as a higher APR), offer an alternative product or reject the application altogether.
Financial institutions are vastly experienced when it comes to assessing credit-risk, and in addition to an applicant’s credit score and personal information, most companies have access to a huge amount of statistical and demographic data. By combining these resources, lenders can provide a fair assessment of an applicant’s likelihood of being able to meet their financial obligations.
Once an application for finance has been approved, and repayments have begun, the lender can mark the agreement on the borrower’s credit report. This information can show whether a finance agreement is in good standing, in arrears or if the account is in default. Entries into a credit report by lenders can affect a borrower’s credit score, especially if they run into financial difficulties. Late payments and defaults can seriously damage a credit score making it extremely difficult to obtain credit in the future.
Many financial accounts that become defaulted are bought by debt collection agencies, such as Capquest Debt Recovery. These companies specialise in the collection of unpaid and delinquent debts. However, when a debt is bought by such companies and repayment has been established, a borrower’s credit report doesn’t show that repayments are being made. As such, this means that as far as lenders are concerned a debt remains unpaid, even if the borrower pays off the debt in full. However, there are discussions in place between financial companies and credit reference agencies that may allow debt collection agencies to be able to report on a debtor’s credit file, so repayment histories can be shown and credit scores amended accordingly.
With the recent upsurge in identity fraud, it is becoming more and more common to find erroneous entries on a consumer’s credit report, so it’s a good idea to check your credit report from time to time, in order to make sure that information held on your report is accurate and showing all the relevant information. After all, any potential borrowing you might consider is influenced by the data on your credit report, whether it is legitimate or not and this will be reflected in any future credit-scoring that lenders might perform the next time you apply for finance.
Source: http://www.articleavenue.com
How To Free-Up 10% to 15% of Your Income
Submitted by debtguru
By Michael G. Peterson
Would you be interested in freeing up 10% to 15% of your current income? Just imagine what you could do with this money. You could pay down your debts, increase your savings, or work toward that next important purchase that you have in mind. Wouldn’t it be exciting to actually have money left over at the end of the month?
I know what you are thinking: “That would be nice, but not if I have to budget every dollar”. What if I told you it could be done without budgeting? What if you could accomplish this in a week’s time without too much effort? Would you take a few steps in order to improve your finances?
If you answered “yes”, let’s go through the simple steps required to make this possible.
Step #1: For a total of 7 days we need to track every single expense. This includes credit card, check, and cash purchases. For this program to really work you will have to track everything (even pocket change). The easiest way I have found to accomplish this is to use a blank check register and write down every transaction that you make for the next 7 days. And I mean every expense, even if you give your child a quarter for a gumball, track that expense. We need to collect the date the purchase was made, and the item that was purchased (this part of the exercise is actually most of the work, and really isn’t all that time consuming – especially when we keep in mind the possible benefits).
Step #2: Once we have tracked every expense for the last 7 days, we then need to go through each of those expenses and evaluate them. What we are looking for is which expenses fall into the “wants” category, and which expenses fall into the “needs” category. As you try to identify these, let me give you some coaching… Is that Diet Coke habit every morning really a “need”, or is it actually a “want” that could be cut back in order to improve not only your finances, but also your health? The idea is not to identify how many things that you enjoy that will need to be sacrificed, but to identify the items that you really could do without – and not suffer…
Once you have identified the “wants” that you don’t really “need” in order to be happy, add these expenses up for the week. If you are the typical American you will find that these unnecessary “wants” will add up to approximately 10% to 15% of your take home income. In fact most people who do this program, are shocked to find that they really do waste a lot of money on things that they had no idea would affect their finances so dramatically.
Step #3: Commit to saving. This is probably the hardest part of the program, and within reason you have the freedom to choose your “wants” for the day or to choose your “needs”. Now I know that some days that “Diet Coke” (or fill in your own vice here____) is an absolute “need”. When you are having that kind of day, go ahead and reward yourself for being so good the rest of the week. But make sure that you keep your objectives in mind for the long run and commit to saving that money for the next day.
Now before you give up on putting these steps into place, let's realize the fact that the benefits of this program really do add up. In fact the average American making the average wages will find that they are able to free up $200 to $300 each month. You are probably thinking “sure, but that won’t work for me”. In all of our experience in teaching this program we have not yet (knock on wood) found anyone that was not able to identify and free-up a portion of their take home income.
This newfound savings can go a long way in making your financial picture much brighter. It can help you extinguish debt in a fraction of the time, put money away for a better retirement, and get you out of the month to month budget crunch that so many of us deal with all of our lives.
And remember this: If you save only $1 per day and invest it at 10% interest – in 56 years it will grow to $1 million. Every dollar counts. Make sure you get the most value out of every dollar you earn, by focusing on your financial goals instead of the wasted “wants” of life that put most of us in financial bondage.
© 2005 DebtGuru.com®. Michael G. Peterson is the Vice President of American Credit Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling organization that has assisted thousands of individuals and families with their financial situations through seminars, education, counseling services, and, debt management plans. For more information, and free consumer resources visit www.debtguru.com
By Michael G. Peterson
Would you be interested in freeing up 10% to 15% of your current income? Just imagine what you could do with this money. You could pay down your debts, increase your savings, or work toward that next important purchase that you have in mind. Wouldn’t it be exciting to actually have money left over at the end of the month?
I know what you are thinking: “That would be nice, but not if I have to budget every dollar”. What if I told you it could be done without budgeting? What if you could accomplish this in a week’s time without too much effort? Would you take a few steps in order to improve your finances?
If you answered “yes”, let’s go through the simple steps required to make this possible.
Step #1: For a total of 7 days we need to track every single expense. This includes credit card, check, and cash purchases. For this program to really work you will have to track everything (even pocket change). The easiest way I have found to accomplish this is to use a blank check register and write down every transaction that you make for the next 7 days. And I mean every expense, even if you give your child a quarter for a gumball, track that expense. We need to collect the date the purchase was made, and the item that was purchased (this part of the exercise is actually most of the work, and really isn’t all that time consuming – especially when we keep in mind the possible benefits).
Step #2: Once we have tracked every expense for the last 7 days, we then need to go through each of those expenses and evaluate them. What we are looking for is which expenses fall into the “wants” category, and which expenses fall into the “needs” category. As you try to identify these, let me give you some coaching… Is that Diet Coke habit every morning really a “need”, or is it actually a “want” that could be cut back in order to improve not only your finances, but also your health? The idea is not to identify how many things that you enjoy that will need to be sacrificed, but to identify the items that you really could do without – and not suffer…
Once you have identified the “wants” that you don’t really “need” in order to be happy, add these expenses up for the week. If you are the typical American you will find that these unnecessary “wants” will add up to approximately 10% to 15% of your take home income. In fact most people who do this program, are shocked to find that they really do waste a lot of money on things that they had no idea would affect their finances so dramatically.
Step #3: Commit to saving. This is probably the hardest part of the program, and within reason you have the freedom to choose your “wants” for the day or to choose your “needs”. Now I know that some days that “Diet Coke” (or fill in your own vice here____) is an absolute “need”. When you are having that kind of day, go ahead and reward yourself for being so good the rest of the week. But make sure that you keep your objectives in mind for the long run and commit to saving that money for the next day.
Now before you give up on putting these steps into place, let's realize the fact that the benefits of this program really do add up. In fact the average American making the average wages will find that they are able to free up $200 to $300 each month. You are probably thinking “sure, but that won’t work for me”. In all of our experience in teaching this program we have not yet (knock on wood) found anyone that was not able to identify and free-up a portion of their take home income.
This newfound savings can go a long way in making your financial picture much brighter. It can help you extinguish debt in a fraction of the time, put money away for a better retirement, and get you out of the month to month budget crunch that so many of us deal with all of our lives.
And remember this: If you save only $1 per day and invest it at 10% interest – in 56 years it will grow to $1 million. Every dollar counts. Make sure you get the most value out of every dollar you earn, by focusing on your financial goals instead of the wasted “wants” of life that put most of us in financial bondage.
© 2005 DebtGuru.com®. Michael G. Peterson is the Vice President of American Credit Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling organization that has assisted thousands of individuals and families with their financial situations through seminars, education, counseling services, and, debt management plans. For more information, and free consumer resources visit www.debtguru.com
In Danger of Losing Your Home? Don’t by Following these 5 Foreclosure Avoiding Tips
Submitted by johnr
Avoid foreclosure by using the following 5 tips that will save your home!
It happens sometimes: hard times fall on even the best of people and financial obligations can not always be met. Spouses become unemployed, family members become ill and money is spent on hospital bills and medication, and other unavoidable hardships creep their way into the lives of people all over America.
If hard times have fallen on you, and you can't always make your mortgage payment, understand that there are options to consider in order not to lose your home. There are actions you can take that will save you from losing your home so you can get back on your feet and meet those financial obligations once again.
Foreclosure can occur when you miss your mortgage payments and are not able to pay back the loan in a timely manner. The bank or lender you chose to borrow the funds to buy the house may repossess it by taking ownership of it, and basically make you leave the property. If you owe more than the house is worth you could be served with a deficiency judgment which can greatly affect your ability to apply for credit or other housing in the future. You want to avoid both foreclosure and a deficiency judgment at all cost! They will make your life extremely difficult.
The following are 5 tips that can help you to avoid foreclosure so you can stay safe and warm in your home, and not have to deal with the difficulties of losing your home.
1. Contact the Lender
If you know you are delinquent on a payment, or are getting letters or phone calls from the lender, do not let them go unacknowledged! If anything, be the first to call or write the lender apprising them of your situation. They may ask for financial documentation of your income and expenses to evaluate your problem. They may be able to help you with this information.
Do not abandon the property because you may not qualify for assistance if you leave. Stay in your home, speak with the lender, and see what options they might have resolving your situation. Avoiding the lender will just make matters worse because they may assume you are purposely not paying them back, and this is exactly what you don't want to happen.
2. Partial Claim
The lender may be able to assist you in getting a one-time loan to bring your mortgage payment current, especially if your financial distress is temporary. This way, the mortgage payment will be satisfied until you can get things under control again, and you will not lose your home.
3. Modify your Mortgage Terms
If the monthly payment is too large, you may be able to refinance or extend the term of the loan allowing you to have smaller monthly payments and a longer time to pay back the loan. You will probably have a higher interest rate and end up paying more money to the lender however, you will not go into foreclosure and lose your home! By changing the terms of the mortgage, you may be able to catch up on what is due and make the monthly payments more manageable so that you will not be delinquent. The lender should be open to this option as long as you are upfront and let them know what is going on.
4. Special Forbearance
The lender may be able to look at your financial situation, and depending on what is the cause for your delinquency, the lender could temporarily suspend the payments or adjust the monthly payment to a lower amount. This new payment plan must be supported by evidence that you could afford the new monthly payments.
5. Sell the Property
In order to avoid foreclosure, you could sell the property. There are investors who will buy pre-foreclosure homes quickly and give cash up front. They often will assume the debt and simply rid you of the problem. This can be a great option if you can sell your house quickly and cash out, and find housing that is more affordable. Also, your responsibility to the mortgage would be relinquished. If you are in big trouble, this can be the answer to not going into foreclosure. You will lose the home, but it will be voluntary and you are avoiding all financial problems that come along with foreclosures and deficiency judgments.
Hopefully these tips will aid you in your financial troubles and save you from either losing your home or going into foreclosure. Analyze your options with your lender and see if you can negotiate a new plan. Always remember to be in contact with your lender if troubles arise so they will be more willing to work with you and not take back your home.
About The Author:
John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://ww.scourtheweb.com/mortgage/.
Source: http://www.articleavenue.com
Avoid foreclosure by using the following 5 tips that will save your home!
It happens sometimes: hard times fall on even the best of people and financial obligations can not always be met. Spouses become unemployed, family members become ill and money is spent on hospital bills and medication, and other unavoidable hardships creep their way into the lives of people all over America.
If hard times have fallen on you, and you can't always make your mortgage payment, understand that there are options to consider in order not to lose your home. There are actions you can take that will save you from losing your home so you can get back on your feet and meet those financial obligations once again.
Foreclosure can occur when you miss your mortgage payments and are not able to pay back the loan in a timely manner. The bank or lender you chose to borrow the funds to buy the house may repossess it by taking ownership of it, and basically make you leave the property. If you owe more than the house is worth you could be served with a deficiency judgment which can greatly affect your ability to apply for credit or other housing in the future. You want to avoid both foreclosure and a deficiency judgment at all cost! They will make your life extremely difficult.
The following are 5 tips that can help you to avoid foreclosure so you can stay safe and warm in your home, and not have to deal with the difficulties of losing your home.
1. Contact the Lender
If you know you are delinquent on a payment, or are getting letters or phone calls from the lender, do not let them go unacknowledged! If anything, be the first to call or write the lender apprising them of your situation. They may ask for financial documentation of your income and expenses to evaluate your problem. They may be able to help you with this information.
Do not abandon the property because you may not qualify for assistance if you leave. Stay in your home, speak with the lender, and see what options they might have resolving your situation. Avoiding the lender will just make matters worse because they may assume you are purposely not paying them back, and this is exactly what you don't want to happen.
2. Partial Claim
The lender may be able to assist you in getting a one-time loan to bring your mortgage payment current, especially if your financial distress is temporary. This way, the mortgage payment will be satisfied until you can get things under control again, and you will not lose your home.
3. Modify your Mortgage Terms
If the monthly payment is too large, you may be able to refinance or extend the term of the loan allowing you to have smaller monthly payments and a longer time to pay back the loan. You will probably have a higher interest rate and end up paying more money to the lender however, you will not go into foreclosure and lose your home! By changing the terms of the mortgage, you may be able to catch up on what is due and make the monthly payments more manageable so that you will not be delinquent. The lender should be open to this option as long as you are upfront and let them know what is going on.
4. Special Forbearance
The lender may be able to look at your financial situation, and depending on what is the cause for your delinquency, the lender could temporarily suspend the payments or adjust the monthly payment to a lower amount. This new payment plan must be supported by evidence that you could afford the new monthly payments.
5. Sell the Property
In order to avoid foreclosure, you could sell the property. There are investors who will buy pre-foreclosure homes quickly and give cash up front. They often will assume the debt and simply rid you of the problem. This can be a great option if you can sell your house quickly and cash out, and find housing that is more affordable. Also, your responsibility to the mortgage would be relinquished. If you are in big trouble, this can be the answer to not going into foreclosure. You will lose the home, but it will be voluntary and you are avoiding all financial problems that come along with foreclosures and deficiency judgments.
Hopefully these tips will aid you in your financial troubles and save you from either losing your home or going into foreclosure. Analyze your options with your lender and see if you can negotiate a new plan. Always remember to be in contact with your lender if troubles arise so they will be more willing to work with you and not take back your home.
About The Author:
John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://ww.scourtheweb.com/mortgage/.
Source: http://www.articleavenue.com
Friday, January 19, 2007
4 Steps To Follow In Organizing Your Finances
Bruce Taylor
Maybe a shoe box under the table commode or a drawer stuffed full of receipts and papers has been enough to get you by in the past, but if you're serious about getting ahead with your home loan, it pays to get organised.
Make sure your records are stored somewhere secure and preferably fire-proof, such as a safety deposit case or safe. You may choose to invest in a filing locker with labelled brochures, or buy a lever-arch file with clearly marked file dividers or an expandable accordion data file to store your essential statements.
Keep a copy of your debt application and approval papers in your file. Banks generally charge you a fee if you want a duplicate of documentation related to your financial loan, so beat the banks and keep your own on file. You should also file copies of private documents like birth and marriage documents, your will or any powers of attorney.
You should create a master list of where everything is registered and give a copy of the list to your associate, a family member or your financial broker in case any of these people need access to your files in an hurry.
Once your filing is sorted, have a look at other ways you could get organised. Maybe it's time to consolidate your debt. Having several distinct cards can add up in both spending and the amount you are paying in interest, so merge your cards into one with a lower interest rate.
You could use the extra cash to put towards making your home financial loan repayments.
At last, organise your expenses. For one month, try keeping a inventory of everything you spend. This will help you determine a weekly or monthly spending calculation, and helps you to find areas where you could cut back on your spending and use the extra cash flow towards clearing your home loan debt.
When getting organised, it helps to create a system for paying your drafts. Keeping on top of your bill payments means that you won't be hit with any late fees, and your credit history won't be stimulated by any missed payments. A blemish on your credit entry history may mean the difference in getting approval for a debt in the future.
Getting organised when it comes to your cash is required if you want to get ahead. You can save time, effort and even money just by putting a few simple systems in place. So, what are you waiting for?
Do you need help getting the best home loan deal possible? Visit out site today.
Maybe a shoe box under the table commode or a drawer stuffed full of receipts and papers has been enough to get you by in the past, but if you're serious about getting ahead with your home loan, it pays to get organised.
Make sure your records are stored somewhere secure and preferably fire-proof, such as a safety deposit case or safe. You may choose to invest in a filing locker with labelled brochures, or buy a lever-arch file with clearly marked file dividers or an expandable accordion data file to store your essential statements.
Keep a copy of your debt application and approval papers in your file. Banks generally charge you a fee if you want a duplicate of documentation related to your financial loan, so beat the banks and keep your own on file. You should also file copies of private documents like birth and marriage documents, your will or any powers of attorney.
You should create a master list of where everything is registered and give a copy of the list to your associate, a family member or your financial broker in case any of these people need access to your files in an hurry.
Once your filing is sorted, have a look at other ways you could get organised. Maybe it's time to consolidate your debt. Having several distinct cards can add up in both spending and the amount you are paying in interest, so merge your cards into one with a lower interest rate.
You could use the extra cash to put towards making your home financial loan repayments.
At last, organise your expenses. For one month, try keeping a inventory of everything you spend. This will help you determine a weekly or monthly spending calculation, and helps you to find areas where you could cut back on your spending and use the extra cash flow towards clearing your home loan debt.
When getting organised, it helps to create a system for paying your drafts. Keeping on top of your bill payments means that you won't be hit with any late fees, and your credit history won't be stimulated by any missed payments. A blemish on your credit entry history may mean the difference in getting approval for a debt in the future.
Getting organised when it comes to your cash is required if you want to get ahead. You can save time, effort and even money just by putting a few simple systems in place. So, what are you waiting for?
Do you need help getting the best home loan deal possible? Visit out site today.
Wednesday, January 17, 2007
Paying Off Holiday Bills
Renee Talon
Many people dread January. That's when the bills come due for all the gifts and holiday partying. According to the National Retail Federation, Americans were expected to generate over $450 billion in retail sales during November and December, 2006.
Not surprisingly, much of the spending is done with plastic. CardWeb.com estimated that between credit, debit and store cards, shoppers will sign for $135 billion in goods and services for the holidays. The largest portion of that ($85 billion) will be on credit cards.
The results? A lot of people will be facing nasty credit card bills in January. Consumer Reports expects the average holiday credit bill will be $626. Depending on how big the balance is it may take until summer to pay if off. What's a consumer to do?
Just as the smart shopper compared prices in November and December, the smart credit card user pays off the resulting bills as quickly as possible. The reason is simple. If their interest rate is 18% (a little high, but an not uncommon rate) the cost of that sweater for Aunt Polly goes up by 1.5% per month. So much for the big sale!
Some people may be fortunate and find one or two things that they can do to completely pay off their holiday bills. There are a few places that you might find hundreds of dollars of savings.
One such place is in your auto or homeowners' insurance. It's possible that you have the wrong coverage or by comparison shopping you can cut your premium significantly. Talk to your agent about your coverage. Then check with an independent insurance agent or comparison website to see if you're getting the best rates.
Most of us will need to chip away at the credit card balance a little at a time. And some ideas will require a bit of sacrifice (never a popular idea).
One place to look for savings to put towards the bills are things that you get via subscription. Like the premium services from your cable company. Or your membership in a video rental club. Or other services that are automatically charged each month. Each one might only represent $10 or $15, but you only need to take action once to save money each and every month thereafter.
The biggest target for saving is in the food and grocery area. The reason is simple. We spend about 20% of our money on food. So we're dealing with a large amount of spending. And we're making decisions about buying food all the time. Whether it's the weekly trip to buy groceries or the daily visit to the company cafeteria at lunch or break time, we make many small buying decisions that add up quickly.
Look first at your habits. Think of where you're buying food each day. For some people it's lunch out with the gang. Bringing in the previous night's leftovers could save you $30 a week.
For others it's the morning and afternoon break times that find you reaching into your pocket. Even a $1 cup of coffee or soda adds up if you do it two or three times a day.
Your grocery shopping can yield big savings. For instance, a pricebook is an invaluable tool. It's a simple listing of items that you purchase regularly (i.e. milk, bread, ground beef, etc) and the lowest price that you've paid for it recently. The most effective pricebooks include one sheet for each item. On the page is the store name, date and price that was low.
Taking the pricebook to the store allows the shopper to quickly identify real sales. That gives them the opportunity to stock-up on an item when the price is right. It's common for people to report savings of 10% or more. And, that's without changing the items that they buy. Just when and at what price they buy them.
Don't forget the food that you purchase away from the grocery store. We're spending nearly half of our food budget on meals that are prepared outside the home. Restaurants are an expensive place to buy your groceries. For most simple meals you can buy the ingredients for about 1/3 of the restaurant price.
One reason that we eat out so often is to save time. But there are other ways to feed your family without spending hours in the kitchen. Freezer meals can replace the drive-thru window and save you money.
Many recipes are well suited for freezing. It's easy enough to prepare two meals at once. One for tonight's dinner, the second for the freezer. If you do a search on "freezer meals" you'll find quite a bit of info. Two of my favorite sources for information and recipes are Debi Taylor-Hough and Leanne Ely. Both are experts at making your freezer your best friend at dinnertime!
For most families it will take a combination to conquer the holiday bills. And some determination. The easiest thing to do is to just pay the monthly credit card minimum. But that's the best way to pay the most for the holidays and go from Santa last year to Scrooge this year!
Many people dread January. That's when the bills come due for all the gifts and holiday partying. According to the National Retail Federation, Americans were expected to generate over $450 billion in retail sales during November and December, 2006.
Not surprisingly, much of the spending is done with plastic. CardWeb.com estimated that between credit, debit and store cards, shoppers will sign for $135 billion in goods and services for the holidays. The largest portion of that ($85 billion) will be on credit cards.
The results? A lot of people will be facing nasty credit card bills in January. Consumer Reports expects the average holiday credit bill will be $626. Depending on how big the balance is it may take until summer to pay if off. What's a consumer to do?
Just as the smart shopper compared prices in November and December, the smart credit card user pays off the resulting bills as quickly as possible. The reason is simple. If their interest rate is 18% (a little high, but an not uncommon rate) the cost of that sweater for Aunt Polly goes up by 1.5% per month. So much for the big sale!
Some people may be fortunate and find one or two things that they can do to completely pay off their holiday bills. There are a few places that you might find hundreds of dollars of savings.
One such place is in your auto or homeowners' insurance. It's possible that you have the wrong coverage or by comparison shopping you can cut your premium significantly. Talk to your agent about your coverage. Then check with an independent insurance agent or comparison website to see if you're getting the best rates.
Most of us will need to chip away at the credit card balance a little at a time. And some ideas will require a bit of sacrifice (never a popular idea).
One place to look for savings to put towards the bills are things that you get via subscription. Like the premium services from your cable company. Or your membership in a video rental club. Or other services that are automatically charged each month. Each one might only represent $10 or $15, but you only need to take action once to save money each and every month thereafter.
The biggest target for saving is in the food and grocery area. The reason is simple. We spend about 20% of our money on food. So we're dealing with a large amount of spending. And we're making decisions about buying food all the time. Whether it's the weekly trip to buy groceries or the daily visit to the company cafeteria at lunch or break time, we make many small buying decisions that add up quickly.
Look first at your habits. Think of where you're buying food each day. For some people it's lunch out with the gang. Bringing in the previous night's leftovers could save you $30 a week.
For others it's the morning and afternoon break times that find you reaching into your pocket. Even a $1 cup of coffee or soda adds up if you do it two or three times a day.
Your grocery shopping can yield big savings. For instance, a pricebook is an invaluable tool. It's a simple listing of items that you purchase regularly (i.e. milk, bread, ground beef, etc) and the lowest price that you've paid for it recently. The most effective pricebooks include one sheet for each item. On the page is the store name, date and price that was low.
Taking the pricebook to the store allows the shopper to quickly identify real sales. That gives them the opportunity to stock-up on an item when the price is right. It's common for people to report savings of 10% or more. And, that's without changing the items that they buy. Just when and at what price they buy them.
Don't forget the food that you purchase away from the grocery store. We're spending nearly half of our food budget on meals that are prepared outside the home. Restaurants are an expensive place to buy your groceries. For most simple meals you can buy the ingredients for about 1/3 of the restaurant price.
One reason that we eat out so often is to save time. But there are other ways to feed your family without spending hours in the kitchen. Freezer meals can replace the drive-thru window and save you money.
Many recipes are well suited for freezing. It's easy enough to prepare two meals at once. One for tonight's dinner, the second for the freezer. If you do a search on "freezer meals" you'll find quite a bit of info. Two of my favorite sources for information and recipes are Debi Taylor-Hough and Leanne Ely. Both are experts at making your freezer your best friend at dinnertime!
For most families it will take a combination to conquer the holiday bills. And some determination. The easiest thing to do is to just pay the monthly credit card minimum. But that's the best way to pay the most for the holidays and go from Santa last year to Scrooge this year!
Sunday, January 14, 2007
FREE Annual Credit Report
By: Michael Killian
Would FREE copies your credit report be of interest? If you are committed to repairing your credit or simply want to know what is on your credit report, I have good news for you. A free copy of your credit report is available to every consumer annually. This article discusses the free report as well as repairing your credit report once you have your credit file on hand. Colorado, Georgia, Maine, Massachusetts, Maryland, New Jersey and Vermont always had a right to one free report per bureau each year. But now this same benefit is available in every state - one FREE credit report from each of the three major national credit bureaus every 12 months.
Additionally, consumers may be entitled to a free report under certain other conditions, such as having been denied credit, insurance or a job within the past 60 days. You're also entitled to a free report if you think your report is inaccurate due to fraud.
But under the new law, Equifax, Experian and TransUnion have an online site where you can get a free report at Annual Credit Report. There is also a toll-free phone number: 877-322-8228. Finally you can write to P.O. Box 105281, Atlanta, GA 30348-5281. Yahoo News suggests: "If you do use the postal address, it's best to print and mail in a completed online request form. You can't get your report unless you answer questions on the form." There is also information available through Federal Trade Commission.
Once you have your report, what do you look for?
Here are some basic things you should check on your report. Go through your entire report entry by entry. Have the credit agency legend by your side in order to verify coding compliance. Have also a paper and pencil to annotate any item you find in error. Go slowly!
Don't assume your personal information is correct. You could be viewing information from someone else's report with just a simple error such as: first name misspelled, missing Jr./Sr., erroneous address, bad zip code, wrong employer, or any other incorrect personal data.
Insure marital information is correct. Are accounts listed as "joint" really joint?
Is the report in compliance with court settlements? Outdated information is normally considered to be any item older than 7 years except for bankruptcy, which is usually 10 years.
Closed accounts should not be listed as open. Accounts you closed should reflect, "Closed by consumer". Otherwise it can be assumed that it was closed by the creditor-- not good.
Accounts should not appear twice even in different sections.
Incorrect histories such as late payments, a credit entry you do not recognize, a pre-marital debt of your current spouse, or other such items need your attention.
Are there missing reports that would be beneficial to show a good history, and are profiles, credit limits, and balances correct?
A former correction to your credit file that has since disappeared should be brought to the agency's attention.
You might want to note that each bureau offers credit ID fraud called safeguard services, but for fees. For example TransUnion offers "ID Fraud Watch". For $10.95 each quarter, you get a credit report every three months and $25,000 of identity theft insurance.
____________________________________
Additionally you can purchase a credit score for a fee by contacting one of the nationwide consumer credit reporting companies.
Equifax
Experian
TransUnion
You can also purchase a credit score when you request your free annual credit report through Annual Credit Report
____________________________________
Final Comments: One final point which I am often asked. If a collection company sells your account to another collection agency, can you get the first one get deleted, or will it just show as a zero balance
Reporting depends on who owns the account there are several directions this can take:
If the original creditor still owns the account but assigns the debt to a collection company then both get to report on that account listing.
If the original creditor retracts the collection and re-assigns it to a new collection agency then both original creditor and the 2nd collection agency can report but the first one must remove their listing off of the credit report.
If the original creditor sells the debt to a collection agency then the creditor will report zero balance / sold to another lender, and the collection agency will report.
If that collection agency assigns a debt to another collection agency then it is allowable for both to report the account listing, but if they take back that account then that assigned collection agency must remove their reporting.
Now if that collection agency sells the debt to another collection agency they get to keep their reporting on the report since they owned the account at one time, and the new collection agency picks up on the reporting.
So the difference is if your account is assigned or sold
Would FREE copies your credit report be of interest? If you are committed to repairing your credit or simply want to know what is on your credit report, I have good news for you. A free copy of your credit report is available to every consumer annually. This article discusses the free report as well as repairing your credit report once you have your credit file on hand. Colorado, Georgia, Maine, Massachusetts, Maryland, New Jersey and Vermont always had a right to one free report per bureau each year. But now this same benefit is available in every state - one FREE credit report from each of the three major national credit bureaus every 12 months.
Additionally, consumers may be entitled to a free report under certain other conditions, such as having been denied credit, insurance or a job within the past 60 days. You're also entitled to a free report if you think your report is inaccurate due to fraud.
But under the new law, Equifax, Experian and TransUnion have an online site where you can get a free report at Annual Credit Report. There is also a toll-free phone number: 877-322-8228. Finally you can write to P.O. Box 105281, Atlanta, GA 30348-5281. Yahoo News suggests: "If you do use the postal address, it's best to print and mail in a completed online request form. You can't get your report unless you answer questions on the form." There is also information available through Federal Trade Commission.
Once you have your report, what do you look for?
Here are some basic things you should check on your report. Go through your entire report entry by entry. Have the credit agency legend by your side in order to verify coding compliance. Have also a paper and pencil to annotate any item you find in error. Go slowly!
Don't assume your personal information is correct. You could be viewing information from someone else's report with just a simple error such as: first name misspelled, missing Jr./Sr., erroneous address, bad zip code, wrong employer, or any other incorrect personal data.
Insure marital information is correct. Are accounts listed as "joint" really joint?
Is the report in compliance with court settlements? Outdated information is normally considered to be any item older than 7 years except for bankruptcy, which is usually 10 years.
Closed accounts should not be listed as open. Accounts you closed should reflect, "Closed by consumer". Otherwise it can be assumed that it was closed by the creditor-- not good.
Accounts should not appear twice even in different sections.
Incorrect histories such as late payments, a credit entry you do not recognize, a pre-marital debt of your current spouse, or other such items need your attention.
Are there missing reports that would be beneficial to show a good history, and are profiles, credit limits, and balances correct?
A former correction to your credit file that has since disappeared should be brought to the agency's attention.
You might want to note that each bureau offers credit ID fraud called safeguard services, but for fees. For example TransUnion offers "ID Fraud Watch". For $10.95 each quarter, you get a credit report every three months and $25,000 of identity theft insurance.
____________________________________
Additionally you can purchase a credit score for a fee by contacting one of the nationwide consumer credit reporting companies.
Equifax
Experian
TransUnion
You can also purchase a credit score when you request your free annual credit report through Annual Credit Report
____________________________________
Final Comments: One final point which I am often asked. If a collection company sells your account to another collection agency, can you get the first one get deleted, or will it just show as a zero balance
Reporting depends on who owns the account there are several directions this can take:
If the original creditor still owns the account but assigns the debt to a collection company then both get to report on that account listing.
If the original creditor retracts the collection and re-assigns it to a new collection agency then both original creditor and the 2nd collection agency can report but the first one must remove their listing off of the credit report.
If the original creditor sells the debt to a collection agency then the creditor will report zero balance / sold to another lender, and the collection agency will report.
If that collection agency assigns a debt to another collection agency then it is allowable for both to report the account listing, but if they take back that account then that assigned collection agency must remove their reporting.
Now if that collection agency sells the debt to another collection agency they get to keep their reporting on the report since they owned the account at one time, and the new collection agency picks up on the reporting.
So the difference is if your account is assigned or sold
Article Source: http://www.content.onlypunjab.com
 |
Things You Did Not Know Hurt Your Credit
By: Bobby Zangrilli
As one would expect, the most important causes of credit success or failure will always be payment history and total debt owed. Although together these factors account for about 65 percent of your credit, there are several other aspects of your credit report that lenders look at to determine your credit-worthiness. Many of these factors are not obvious even to the most intuitive of minds. Here are 5 of the most overlooked factors that influence your credit.
1. The number of recent inquiries on your credit report. To most people this is not self-evident, but to lenders it makes perfect sense. If you have a lot of recent inquiries from lenders who are looking to determine your credit worthiness, then chances are you may be overextended and short of cash.
2. The proportion of your balances to their credit lines. If you’re maxed out on your credit cards, then lenders may consider it a sign of one of three things: a) you’re overextended and relying on your credit to make ends meet; b) you’re addicted to credit and overuse your credit lines; or c) both.
3. Closing credit card accounts. Closing an account has the effect of lowering the credit limit on your credit report. Since you no longer are charging anything to that account whatever your current balance is also happens to be the credit limit. This being the case the credit scoring companies only see that a consumer is utilizing 100 percent of the credit line, thus affecting your credit negatively per point number 2.
4. Closing your oldest credit card account. Closing accounts affects your credit negatively, but since the impact is relatively minimal, it may be a necessary step to help get your finances under control. If you’re forced to make a decision about which account to keep open (assuming they have the same interest rate and fees), you should always hang on to the oldest account. The length of your credit history is actually about 15 percent of your score, and having an account with some longevity can be a big boost.
5. Enrolling in a debt counseling service. The only way to maintain a positive credit picture is by paying your bills on time and in full every month. Any time you seek outside assistance in managing your finances whether through credit counseling or debt negotiation, future lenders will be inevitably turned off. Unfortunately, there is no way to get around it since your enrollment is reported to the credit bureaus by your creditors, not by the debt management company. This is a source of debate, but to be conservative, you should assume that you won’t be credit worthy until you’ve established some positive credit history after completing your program. I know the last sentence sounds a bit contradictory. After all, how can you rebuild your credit history if no one will extend you credit? The answer is simple: gas cards and secured credit cards. These are very easy to obtain, and on top of that, you’re debt free. A lot of lenders will gladly extend small amounts of credit to someone who has income and no other financial obligations. Depending on the lender, it might take some time to qualify for the bigger loans, more specifically, a mortgage.
As one would expect, the most important causes of credit success or failure will always be payment history and total debt owed. Although together these factors account for about 65 percent of your credit, there are several other aspects of your credit report that lenders look at to determine your credit-worthiness. Many of these factors are not obvious even to the most intuitive of minds. Here are 5 of the most overlooked factors that influence your credit.
1. The number of recent inquiries on your credit report. To most people this is not self-evident, but to lenders it makes perfect sense. If you have a lot of recent inquiries from lenders who are looking to determine your credit worthiness, then chances are you may be overextended and short of cash.
2. The proportion of your balances to their credit lines. If you’re maxed out on your credit cards, then lenders may consider it a sign of one of three things: a) you’re overextended and relying on your credit to make ends meet; b) you’re addicted to credit and overuse your credit lines; or c) both.
3. Closing credit card accounts. Closing an account has the effect of lowering the credit limit on your credit report. Since you no longer are charging anything to that account whatever your current balance is also happens to be the credit limit. This being the case the credit scoring companies only see that a consumer is utilizing 100 percent of the credit line, thus affecting your credit negatively per point number 2.
4. Closing your oldest credit card account. Closing accounts affects your credit negatively, but since the impact is relatively minimal, it may be a necessary step to help get your finances under control. If you’re forced to make a decision about which account to keep open (assuming they have the same interest rate and fees), you should always hang on to the oldest account. The length of your credit history is actually about 15 percent of your score, and having an account with some longevity can be a big boost.
5. Enrolling in a debt counseling service. The only way to maintain a positive credit picture is by paying your bills on time and in full every month. Any time you seek outside assistance in managing your finances whether through credit counseling or debt negotiation, future lenders will be inevitably turned off. Unfortunately, there is no way to get around it since your enrollment is reported to the credit bureaus by your creditors, not by the debt management company. This is a source of debate, but to be conservative, you should assume that you won’t be credit worthy until you’ve established some positive credit history after completing your program. I know the last sentence sounds a bit contradictory. After all, how can you rebuild your credit history if no one will extend you credit? The answer is simple: gas cards and secured credit cards. These are very easy to obtain, and on top of that, you’re debt free. A lot of lenders will gladly extend small amounts of credit to someone who has income and no other financial obligations. Depending on the lender, it might take some time to qualify for the bigger loans, more specifically, a mortgage.
Article Source: http://www.content.onlypunjab.com
Robert Zangrilli is the CEO of Franklin Debt Relief. FDR's "New Deal" program is able to reduce the amount that clients owe through debt settlement and debt negotiation. |
Identity Theft: Count the Ways
I received an e-mail message from "Paypal" not too long ago. The e-mail stated that PayPal needed me to update and verify my security information for their database. I didn't. One of the sentences in the e-mail read:
"Complete the necessary verification tasks within 5 days, or your account might get temporarily suspended."
That didn't sound like the PayPal I've been doing business with for several years. The grammar of "your account might get temporarily suspended" raised an alarm bell. Also the logo while quite professional looked odd.
But the obvious giveaway was knowing Paypal would never contact me at an e-mail address I never gave them. I could have become a victim of a technique called phishing. Just another form of identity theft.
The effort criminals put into stealing your identity staggers the imagination.
With Phishing, also called brand spoofing, criminals set up phony but legitimate looking websites then spam you with e-mail like the one described above in the hopes of catching a percentage of Internet users. No reputable business will ever ask for your personal information via e-mail information.
Phishing just became a parent to a newborn child called "pharming". Hackers plant phony information into DNS servers. This allows them to match domain names with the database of IP addresses maintained by various web hosting companies. In other words, you type in a web address, press enter and get rerouted to bogus websites where identity thieves are waiting to grab any of your information.
2003 saw identity thieves target Ebay account holders; this year it's Paypal's turn, but any company with a database of information remains a target.
Choicepoint, a veritable clearinghouse for the insurance industry, finds themselves trying to explain how identity thieves tapped into their system to defraud 145,000 customers across the U.S. Investigators in California place that number closer to a half a million.
The hackers apparently used previously stolen identities to apply for and receive business licenses then bought information from ChoicePoint whose database totals 19 billion public records.
The FTC estimates that this year alone identity theft will cost the business community 4.2 billion dollars and 8 billion by the end of 2006.
Easy access to computers provide more chances for identity theft but the majority of cases according to the Better Business Bureau happen offline. Mail fraud public spying known as "shoulder or telephone scams that target the elderly surfing" contribute greatly to this epidemic.
Unfortunately senior citizens face another threat known as the "sweetheart scam" in which a criminal offers to run errands or do chores around the house for the express purpose of taking control of the victim's finances.
Taking control of someone's finances can also happen in a restaurant, department store or any legitimate place of business. When a clerk swipes your card twice without your knowledge then stores the information for later use, this is known as skimming. Often the clerk will make a duplicate card with your info to go on a buying spree or sell it on the black market. The illegal selling of credit card information as you might have already guessed is big business.
Identity theft has forced many financial institutions to revamp their ATM's due to criminal rigging. A person uses the ATM but after putting in the pin# the machine keeps the card. Usually when the person goes to report it, the thief strikes, taking card, pin # and most importantly the victim's identity.
The methods of madness can include something simple like going through your trash known as dumpster diving or an elaborate hoax similar to the one reported by the Associated Press.
A family in the Pacific Northwest posed as tax preparers and used stolen identities to go on buying sprees across several states that included million dollar homes and luxury vehicles. According to authorities, since the thieves stole the social security # of children as well as adults, the damage won't be fully known until these young people start applying for credit later on.
Law Enforcement officials believe the next step with this criminal outfit involved applying for health care positions. Hospitals and doctor offices provide a wealth of personal information. Perfect for Identity thieves
These methods, along with old fashioned robbery, show why identity theft according to the Department of Justice maintains its ranking as the number one and fastest growing crime in the US for 5 consecutive years. Unfortunately, it will maintain that status for the near future.
Copyright © 2005 Daryl Campbell
About Daryl: Daryl Campbell owns and operates WintheMarket.com. Identity theft can be devastating. Restoring your good name can be overwhelming and costly. If identity theft happens, you need more that do it yourself information. Let the experts do the work for you. For free information go to http://digbig.com/4cmcg now.
Friday, January 5, 2007
Tips for selecting a debt management service provider
In the present world for many customers to get out of debt can be treated as the need of the hour. More and more customers are finding themselves in debt and wondering what debt does to their money. Debt management service providers will help you to overcome your debt by offering several measures such as structured repayment program, counseling, education and advocacy with your bill collectors and so on. In frustration, many customers turn to a debt management program or service that promises to get them out of debt quickly and painlessly.
If you select the service of a wrong debt management service provider you will land in trouble because this will result in higher debts, late fees and even legal action from your creditors. If you want to get best results out of the service of a debt management service provider you have to select the best suited service provider. Experts recommend that you seek out companies that offer the following:
Experience of the company
The debt management service provider that you select should have enough experience in providing solutions to problems related to debt. The company officials must be able to properly understand your problem and should be able to formulate multiple options for overcoming your problem. You have to make sure that the company you approach is having reasonable satisfied clients.
Reliability of the service
A good company will always be truthful to you. They will advise you if you need to declare bankruptcy. A truthful debt management service provider will not charge for certain services like photocopying costs, applications, or for simple advice. Every company official associated with you problem should be proficient at what they do in solving your debt problem.
Economical value
The services of a debt management service provider should be economical. You should be quoted a price that is affordable and is reasonable. Before finalizing the service you have make sure that no additional charges, hidden fees are charged. Its always advisable to arrive at a conclusion with the regarding the financial aspects of the service that you are receiving.
Continuation of the service provider
Before choosing a debt help company to work with you has to analyze its existence. It's always better to seek the service of an experienced company rather than that of a company that is comparatively new. Before fixing the service of a company find answers for questions like how long they have been in business?, where are their offices situated? is it possible to visit the offices? etc.
Education of the counselors/staff
The education of the counselors of is a major factor that requires attention while selecting a debt help service provider. The counselors should know each and every aspect of finance. It is even better if the education is recent. If you are selecting a company that encourages their employees to take course and education upgrades are especially likely to be both helpful and professional enough to help you in overcoming your debt related problems.
Status of the business/company
The debt help service provider that you select should have a good standing with Better Business Bureau and with customers. If many customers are unsatisfied and many complaints have been filled against a debt help company its advisable to avoid it, because it shows that the company is not fulfilling the requirements of its customers.
Every one who is having a debt related problem wants to overcome it as early as possible. There is no harm is seeking the service of debt help service providers but the result of their service depends on how good these companies are. By following the above points it is possible for you to find out the best suited debt management service provider
.
Author Description
Charles Philip who is the webmaster of the financial site http://www.creditreportkb.com wrote this article exclusively for providing wholesome information on debt management. He also wrote an another site http://www.debtleap.com to give the complete information on debt management types, debt management services, debt consolidation, debt management tips, debt management solution, debt management program, free debt management advice. Further this site helps to find best debt consolidation services and the advantages of debt consolidation loans.
If you select the service of a wrong debt management service provider you will land in trouble because this will result in higher debts, late fees and even legal action from your creditors. If you want to get best results out of the service of a debt management service provider you have to select the best suited service provider. Experts recommend that you seek out companies that offer the following:
Experience of the company
The debt management service provider that you select should have enough experience in providing solutions to problems related to debt. The company officials must be able to properly understand your problem and should be able to formulate multiple options for overcoming your problem. You have to make sure that the company you approach is having reasonable satisfied clients.
Reliability of the service
A good company will always be truthful to you. They will advise you if you need to declare bankruptcy. A truthful debt management service provider will not charge for certain services like photocopying costs, applications, or for simple advice. Every company official associated with you problem should be proficient at what they do in solving your debt problem.
Economical value
The services of a debt management service provider should be economical. You should be quoted a price that is affordable and is reasonable. Before finalizing the service you have make sure that no additional charges, hidden fees are charged. Its always advisable to arrive at a conclusion with the regarding the financial aspects of the service that you are receiving.
Continuation of the service provider
Before choosing a debt help company to work with you has to analyze its existence. It's always better to seek the service of an experienced company rather than that of a company that is comparatively new. Before fixing the service of a company find answers for questions like how long they have been in business?, where are their offices situated? is it possible to visit the offices? etc.
Education of the counselors/staff
The education of the counselors of is a major factor that requires attention while selecting a debt help service provider. The counselors should know each and every aspect of finance. It is even better if the education is recent. If you are selecting a company that encourages their employees to take course and education upgrades are especially likely to be both helpful and professional enough to help you in overcoming your debt related problems.
Status of the business/company
The debt help service provider that you select should have a good standing with Better Business Bureau and with customers. If many customers are unsatisfied and many complaints have been filled against a debt help company its advisable to avoid it, because it shows that the company is not fulfilling the requirements of its customers.
Every one who is having a debt related problem wants to overcome it as early as possible. There is no harm is seeking the service of debt help service providers but the result of their service depends on how good these companies are. By following the above points it is possible for you to find out the best suited debt management service provider
Author Description
Charles Philip who is the webmaster of the financial site http://www.creditreportkb.com wrote this article exclusively for providing wholesome information on debt management. He also wrote an another site http://www.debtleap.com to give the complete information on debt management types, debt management services, debt consolidation, debt management tips, debt management solution, debt management program, free debt management advice. Further this site helps to find best debt consolidation services and the advantages of debt consolidation loans.
Shopping Online? Here Are Some Ways To Save!
Pete Glocker
Probably everyone by now has at least heard about eBay
or Amazon
, right? These companies are still capturing the majority of the e-commerce market among other sites such as Walmart.com
and for you technology buffs, Buy.com
, Circuitcity.com and Bestbuy.com. All of these sites of course generate large revenues in online retail.
E-tailers: Shopping Comparisons
Sites like Shopzilla.com, Pricegrabber.com and Consumerclub.com actually will give you the best deal by comparing the prices of major retailers like Sports Authority, Target, Macys, Barnes & Noble and JC Penny. A major goal of Consumerclub.com is to offer consumers the best deals and make the shopping experience easy. Instead of spending the time of researching every site for the best deals, try one of these online comparison sites. They will do all the work for you and find you the best deal.
Take Advantage on Shipping Deals
Most of the major online retailers offer discounted shipping or even free shipping if you buy a certain product or spend a certain amount of money. Also, after Thanksgiving heading into the holidays, many online retailers will offer free shipping and giftwrap services.
Check Coupon Sites
Check sites like Valpak.com, Coolsavings.com and Eversave.com. These sites offer all kinds of discounts to major retailers. Coolsavings.com offers up to 30 percent off on groceries and travel. You can even print out coupons and drive to the retailer to purchase merchandise. These sites also offer freebies and free samples of products that are not on the market yet.
Try Overstock.com
Overstock.com is an online retailer that has partnerships with many brand-name companies. Their relationships with these companies allow them to purchase product at huge discounts. Overstock.com takes advantage of the products that the major manufacturers overestimate for their yearly sales. Overstock.com buys those products at below wholesale price. Also, Overstock.com takes advantage of stores that are moving or downsizing. If this is the case, these products that the stores don't want will be sold to Overstock.com also at a below wholesale rate. Then they pass their discounts to the consumers. The site claims it can save you up to 80 percent every day, which is true after looking at a deal for iPod/mp3 speakers normally listed at $59.99, selling for $12.95, which is a savings of 78 percent. .
Is Online Shopping Now Safer?
The answer to the question is yes. It is now safer to shop online. According to an article on AllBusiness.com, e-commerce is actually much more secure than real-world commerce. When you leave your credit card receipt on a restaurant table or give your credit card number to a telephone operator, you're accepting the risk that things you didn't order might appear on next month's bill. Yet when you enter a credit card number on a reputable e-commerce site, you're sending it over a secure connection to a server that's accessible only to authorized personnel and protected against even the most determined intruders. Just make sure you shop with a reputable company that verifies that payment button is encrypted. Many sites will have padlock emblems verifying this. Pay Pal, which is a payment system made most popular from eBay, has state-of-the-art encryption that protects your information from cyber thieves. You don't have 100 percent protection while shopping online, but your odds are not as great being a victim of identity theft as you are lead to believe.
Pete Glocker is employed in the Education and Charitable Services Department at Debt Management Credit Counseling Corp. (DMCC), a 501c(3) non-profit charitable organization located in Boca Raton, Florida. Pete graduated from Florida Atlantic University with a BA in Multimedia Journalism and is an experienced web producer for Tribune Interactive products Sun-Sentinel.com and SouthFlorida.com. DMCC provides free financial education, personal budget counseling, and debt management plans to consumers across the United States. Debt management plans offered by DMCC help consumers relieve the stress of excessive debt by reducing credit card interest rates, consolidating and lowering monthly payments, and stopping collection calls and late fees. DMCC financial counselors can be reached for free education materials, budget counseling and debt management plan quotes by calling 866-618-DEBT or by visiting www.dmcccorp.org. Pete Glocker can be reached by email to pete@dmcccorp.org.
Probably everyone by now has at least heard about eBay
, right? These companies are still capturing the majority of the e-commerce market among other sites such as Walmart.comE-tailers: Shopping Comparisons
Sites like Shopzilla.com, Pricegrabber.com and Consumerclub.com actually will give you the best deal by comparing the prices of major retailers like Sports Authority, Target, Macys, Barnes & Noble and JC Penny. A major goal of Consumerclub.com is to offer consumers the best deals and make the shopping experience easy. Instead of spending the time of researching every site for the best deals, try one of these online comparison sites. They will do all the work for you and find you the best deal.
Take Advantage on Shipping Deals
Most of the major online retailers offer discounted shipping or even free shipping if you buy a certain product or spend a certain amount of money. Also, after Thanksgiving heading into the holidays, many online retailers will offer free shipping and giftwrap services.
Check Coupon Sites
Check sites like Valpak.com, Coolsavings.com and Eversave.com. These sites offer all kinds of discounts to major retailers. Coolsavings.com offers up to 30 percent off on groceries and travel. You can even print out coupons and drive to the retailer to purchase merchandise. These sites also offer freebies and free samples of products that are not on the market yet.
Try Overstock.com
Overstock.com
Is Online Shopping Now Safer?
The answer to the question is yes. It is now safer to shop online. According to an article on AllBusiness.com, e-commerce is actually much more secure than real-world commerce. When you leave your credit card receipt on a restaurant table or give your credit card number to a telephone operator, you're accepting the risk that things you didn't order might appear on next month's bill. Yet when you enter a credit card number on a reputable e-commerce site, you're sending it over a secure connection to a server that's accessible only to authorized personnel and protected against even the most determined intruders. Just make sure you shop with a reputable company that verifies that payment button is encrypted. Many sites will have padlock emblems verifying this. Pay Pal, which is a payment system made most popular from eBay
Pete Glocker is employed in the Education and Charitable Services Department at Debt Management Credit Counseling Corp. (DMCC), a 501c(3) non-profit charitable organization located in Boca Raton, Florida. Pete graduated from Florida Atlantic University with a BA in Multimedia Journalism and is an experienced web producer for Tribune Interactive products Sun-Sentinel.com and SouthFlorida.com. DMCC provides free financial education, personal budget counseling, and debt management plans to consumers across the United States. Debt management plans offered by DMCC help consumers relieve the stress of excessive debt by reducing credit card interest rates, consolidating and lowering monthly payments, and stopping collection calls and late fees. DMCC financial counselors can be reached for free education materials, budget counseling and debt management plan quotes by calling 866-618-DEBT or by visiting www.dmcccorp.org. Pete Glocker can be reached by email to pete@dmcccorp.org.
7 Tips For A Stress-Free Tax Season
Robin Lakes
For many Americans, April 15th is the most stressful day of the year. The date when federal taxes are due can strike fear into the hearts of the most stoic taxpayers. Writing that yearly check to Uncle Sam can be quite distressing, especially if you find you owe more than you thought you would. What can be especially troubling is that the stress can stay with you, year in and year out.
But for many people, the stress begins long before the filing deadline. It may occur as early as December when the tax forms first arrive in the mail. Or it may happen when your W-2 form comes across your desk at work. It may happen when you hear about tax season on television. Even getting your yearly interest statement from your bank might be enough to put you over the edge.
You may know some people who seem completely relaxed when tax time rolls around. It seems that they have everything in order, and they have little to worry about. For such people, tax day seems to be a virtually stress-free experience. You'll find them whistling through the hallways at work while you're hunched over your calculator, wondering whether you can pay your tax bill.
You need to realize that you can handle the stress of tax season without going ballistic. However, this means that you must be pro-active when it comes to handling your taxes. A little bit of planning can go a long way to reducing your taxes, and your stress level.
To begin with, it could help you immeasurably if you seek the services of a financial planner. He or she can help you to take control of your finances, which can reduce your stress level considerably. Also, the financial planner can help you to employ certain strategies which will enable you to reduce your tax bill.
Next, you have to seriously consider whether it will do you any good to do your taxes yourself. While figuring out your own tax bill can give you a feeling of control, it can also increase your stress level tremendously. Therefore, you might seriously consider hiring a tax accountant to handle the stress of your taxes. While such a move will not eliminate your stress entirely, it can seriously reduce it.
Keeping folders of all the documents you need for filing your taxes can also lessen your stress. If you keep the folders current throughout the year, you will not be in a mad rush at tax time to find the papers you need to file your return. You might consider color-coding the folders for easy reference.
Also, keep the folders in a central location. While a filing cabinet might be the best solution, you might also consider a hope chest, an end table, or a desk drawer. And be sure to keep all your records for at least three years in case a question arises about your return later on.
Another strategy for reducing your stress is putting an end to procrastination. While it might be tempting to wait until the last minute to file your taxes, it only increases your stress level. If you file your taxes long before the due date, you can rest easy when April 15th rolls around. You might be amazed at how much easier it is to deal with tax season when you've done some advanced planning.
If you find yourself facing a large tax bill, chances are you will feel stress, no matter what time you file. Therefore, you might consider opening a savings account specifically earmarked for taxes. This way, you can save for tax day throughout the year. Another option is to increase your withholding on your weekly paycheck so that you don't have such a huge bill to pay at the end of the tax year.
There is no reason to become overly stressed over taxes. They are a natural part of American life, the means by which the government is able to function. If you take a few pro-active steps, you can significantly reduce tax-related stress. It may be hard at first to break old habits. However, once you do, you might be amazed at how relaxed you feel when April 15th rolls around.
Robin Lakes currently specializes in helping people resolve their problems and complaints, and achieve a sense of well-being in their busy, stress-filled lives. She has an extensive background in research, education and writing, and is currently the staff writer for Livet, Inc. Visit http://www.livetinc.com/ to get tips on improving the quality of your life, resources on solving problems, and information on when and how to file complaints successfully.
For many Americans, April 15th is the most stressful day of the year. The date when federal taxes are due can strike fear into the hearts of the most stoic taxpayers. Writing that yearly check to Uncle Sam can be quite distressing, especially if you find you owe more than you thought you would. What can be especially troubling is that the stress can stay with you, year in and year out.
But for many people, the stress begins long before the filing deadline. It may occur as early as December when the tax forms first arrive in the mail. Or it may happen when your W-2 form comes across your desk at work. It may happen when you hear about tax season on television. Even getting your yearly interest statement from your bank might be enough to put you over the edge.
You may know some people who seem completely relaxed when tax time rolls around. It seems that they have everything in order, and they have little to worry about. For such people, tax day seems to be a virtually stress-free experience. You'll find them whistling through the hallways at work while you're hunched over your calculator, wondering whether you can pay your tax bill.
You need to realize that you can handle the stress of tax season without going ballistic. However, this means that you must be pro-active when it comes to handling your taxes. A little bit of planning can go a long way to reducing your taxes, and your stress level.
To begin with, it could help you immeasurably if you seek the services of a financial planner. He or she can help you to take control of your finances, which can reduce your stress level considerably. Also, the financial planner can help you to employ certain strategies which will enable you to reduce your tax bill.
Next, you have to seriously consider whether it will do you any good to do your taxes yourself. While figuring out your own tax bill can give you a feeling of control, it can also increase your stress level tremendously. Therefore, you might seriously consider hiring a tax accountant to handle the stress of your taxes. While such a move will not eliminate your stress entirely, it can seriously reduce it.
Keeping folders of all the documents you need for filing your taxes can also lessen your stress. If you keep the folders current throughout the year, you will not be in a mad rush at tax time to find the papers you need to file your return. You might consider color-coding the folders for easy reference.
Also, keep the folders in a central location. While a filing cabinet might be the best solution, you might also consider a hope chest, an end table, or a desk drawer. And be sure to keep all your records for at least three years in case a question arises about your return later on.
Another strategy for reducing your stress is putting an end to procrastination. While it might be tempting to wait until the last minute to file your taxes, it only increases your stress level. If you file your taxes long before the due date, you can rest easy when April 15th rolls around. You might be amazed at how much easier it is to deal with tax season when you've done some advanced planning.
If you find yourself facing a large tax bill, chances are you will feel stress, no matter what time you file. Therefore, you might consider opening a savings account specifically earmarked for taxes. This way, you can save for tax day throughout the year. Another option is to increase your withholding on your weekly paycheck so that you don't have such a huge bill to pay at the end of the tax year.
There is no reason to become overly stressed over taxes. They are a natural part of American life, the means by which the government is able to function. If you take a few pro-active steps, you can significantly reduce tax-related stress. It may be hard at first to break old habits. However, once you do, you might be amazed at how relaxed you feel when April 15th rolls around.
Robin Lakes currently specializes in helping people resolve their problems and complaints, and achieve a sense of well-being in their busy, stress-filled lives. She has an extensive background in research, education and writing, and is currently the staff writer for Livet, Inc. Visit http://www.livetinc.com/ to get tips on improving the quality of your life, resources on solving problems, and information on when and how to file complaints successfully.
Credit Repair Myths Exposed
Jim Eastman
If you’ve done any searching on the Internet for information pertaining to “Credit Repair”, you’ve no doubt found that there’s a great deal available. Unfortunately, there’s also a lot of misinformation as well.
Let’s take a look at some of the most common misstatements
You’ll come across and examine them in detail.
MYTH #1 “Credit repair doesn’t work!”
While it’s true that credit repair is more “art” than “science” that’s not to say it doesn’t work. If you undertake to repair your bad credit score, there’s never any guarantee you can restore it to “perfect” status. But sometimes you can, and in almost every case you can at least affect some improvement in your credit score, and often major improvement at that!
First of all, credit reports for the most part are filled with errors. While there seems to be no general agreement, it’s estimated that anywhere from 1/3 (Attorney General of NY) to as many as 90% (Charles Givens Organization) of credit reports contain errors.
Removal of erroneous negative information alone will go a great way toward improving your credit score. But there’s more to the story, which brings us to myth #2.
MYTH #2 “Negative information that can be verified cannot be removed”
This is one of those statements that are “almost” true, but taken literally is misleading. As is often the case, the inclusion (or exclusion) of one seemingly small word makes the difference in a truthful statement, and one that’s not (or not necessarily) accurate.
Let’s take an analogy. Suppose it’s the middle of summer, and your grass has grown unusually high. Let’s also suppose that you own a lawn mower, it’s in good working condition, and has plenty of gasoline in the tank.
Now let’s say that you’re sitting on your couch and say to yourself “My grass will get cut today because I “CAN” go outdoors anytime and cut it.”
So will your grass get cut? Not necessarily! Just because you “can” go outdoors and cut your grass doesn’t mean it’s going to get done. You can repeat this statement to yourself all day long, but your grass isn’t going to get cut until you actually go outside and DO it!
Likewise, because a negative item on your credit report “can” be verified doesn’t mean it will be. According to the Fair Credit Reporting Act, a credit bureau must investigate and verify “within a reasonable period of time” any item in your credit report that you dispute. If the “information is found to be inaccurate or can no longer be verified, the consumer reporting agency shall promptly delete such information.”
Now in this context “can be verified” clearly means verified by the credit bureau’s investigation of the item, and the “reasonable period of time” has been established (by subsequent rulings) to be 30 days. So if the credit bureau doesn’t complete its investigation of the disputed information within 30 days, or if for some reason the creditor fails to respond and verify the information, by law the disputed data must be deleted from your credit file.
MYTH #3 “Credit repair agencies are all scams”
It’s true that there ARE a good many unscrupulous credit repair agencies. But there are also some corrupt police officers, lawyers, and politicians. Yet we don’t label all members of these professions as “corrupt.”
If you’re looking for help to repair your bad credit you do need to be careful and “do your homework” when selecting an agency. There are many honest credit repair companies that are not “scams.” But beware of any who make promises as to results!
As stated above, it’s not always possible to restore your bad credit history to perfect status, and no one should be making any promises to that effect. Beware of any company that does! And while an agency will in all likelihood be able to improve your credit score, if any agency makes this promise, be sure it’s accompanied by a money back guarantee. Otherwise, look elsewhere. And don’t forget to ask for references and follow up on them.
MYTH #4 “You have to hire a credit repair agency or lawyer to fix your credit”
Going back to the analogy above, you can always hire someone else to cut your grass (or to do just about anything else) for your. And if fixing your own credit seems an intimidating task, you might prefer to hire a credit repair company to do it.
But it’s not really necessary that you do. First of all, credit repair agencies aren’t cheap. You can expect to pay anywhere from $2,500 to $5,000 or more. Plus, you’ll be paying a high fee for something you can just as well do for yourself, which brings us to myth #5.
MYTH #5 “It’s too difficult or complicated to fix your own Credit”
A credit repair company isn’t going to do anything for you that you can’t do for yourself! Credit repair isn’t rocket science. It involves writing letters to credit bureaus and to creditors. If you’re able to write a letter, put a stamp on it and mail it, you’re able to repair your own credit.
“Given the proper knowledge, you can fix your own credit”
This statement IS true! You’re entirely able to repair your own credit, given the proper knowledge. And given the proper knowledge, you can fix your own car, repair your own plumbing, or for that matter perform brain surgery.
While fixing your own credit is relatively simple and straightforward, you do have to know how to go about it. Essentially it involves getting a copy of your credit report and writing letters to the 3 major credit bureaus disputing negative information in your file.
But there’s a right way and a wrong way to do it. In fact even some of the high priced credit repair agencies get it wrong, which brings us to myth #6.
MYTH #6 “You improve your credit score by getting all the negative items on your credit report removed”
It’s possible to get all the negative items on your credit report removed and actually see you credit score go DOWN as a result! The reason? Your credit score depends on a number of factors, one of which is the length of your credit history. In some cases, you’re better off to NOT remove some negative items on your report, especially if they involve a few late payments in the distant past, but show timely payments during recent years.
While the “nuts and bolts” of credit repair is beyond the scope of this report, there are a number of sources of good information online. If you have bad credit, there are 3 major points you should keep in mind:
1. If you have a bad credit history, it can (and probably will) cost you many tens of thousands of dollars in higher loan interest over the years, as you’ll be charged much higher rates than you would be with good credit. If your credit is really bad, you may not be able to get a loan at all!
2. The situation isn’t hopeless! In almost every case you CAN improve your credit score. You can easily do it yourself or find a reputable agency to do it for you. But in any case, GET IT DONE!
3. If you choose to repair your own credit (recommended) there are good books and eBooks available that can walk through the process. Get hold of one and get started NOW!
==============
About the Author
Jim Eastman is the support contact for ErasingBadCredit.com. Anyone wanting to repair their own credit can get valuable advice by signing up for the FREE mini-course at http://www.erasingbadcredit.com.
If you’ve done any searching on the Internet for information pertaining to “Credit Repair”, you’ve no doubt found that there’s a great deal available. Unfortunately, there’s also a lot of misinformation as well.
Let’s take a look at some of the most common misstatements
You’ll come across and examine them in detail.
MYTH #1 “Credit repair doesn’t work!”
While it’s true that credit repair is more “art” than “science” that’s not to say it doesn’t work. If you undertake to repair your bad credit score, there’s never any guarantee you can restore it to “perfect” status. But sometimes you can, and in almost every case you can at least affect some improvement in your credit score, and often major improvement at that!
First of all, credit reports for the most part are filled with errors. While there seems to be no general agreement, it’s estimated that anywhere from 1/3 (Attorney General of NY) to as many as 90% (Charles Givens Organization) of credit reports contain errors.
Removal of erroneous negative information alone will go a great way toward improving your credit score. But there’s more to the story, which brings us to myth #2.
MYTH #2 “Negative information that can be verified cannot be removed”
This is one of those statements that are “almost” true, but taken literally is misleading. As is often the case, the inclusion (or exclusion) of one seemingly small word makes the difference in a truthful statement, and one that’s not (or not necessarily) accurate.
Let’s take an analogy. Suppose it’s the middle of summer, and your grass has grown unusually high. Let’s also suppose that you own a lawn mower, it’s in good working condition, and has plenty of gasoline in the tank.
Now let’s say that you’re sitting on your couch and say to yourself “My grass will get cut today because I “CAN” go outdoors anytime and cut it.”
So will your grass get cut? Not necessarily! Just because you “can” go outdoors and cut your grass doesn’t mean it’s going to get done. You can repeat this statement to yourself all day long, but your grass isn’t going to get cut until you actually go outside and DO it!
Likewise, because a negative item on your credit report “can” be verified doesn’t mean it will be. According to the Fair Credit Reporting Act, a credit bureau must investigate and verify “within a reasonable period of time” any item in your credit report that you dispute. If the “information is found to be inaccurate or can no longer be verified, the consumer reporting agency shall promptly delete such information.”
Now in this context “can be verified” clearly means verified by the credit bureau’s investigation of the item, and the “reasonable period of time” has been established (by subsequent rulings) to be 30 days. So if the credit bureau doesn’t complete its investigation of the disputed information within 30 days, or if for some reason the creditor fails to respond and verify the information, by law the disputed data must be deleted from your credit file.
MYTH #3 “Credit repair agencies are all scams”
It’s true that there ARE a good many unscrupulous credit repair agencies. But there are also some corrupt police officers, lawyers, and politicians. Yet we don’t label all members of these professions as “corrupt.”
If you’re looking for help to repair your bad credit you do need to be careful and “do your homework” when selecting an agency. There are many honest credit repair companies that are not “scams.” But beware of any who make promises as to results!
As stated above, it’s not always possible to restore your bad credit history to perfect status, and no one should be making any promises to that effect. Beware of any company that does! And while an agency will in all likelihood be able to improve your credit score, if any agency makes this promise, be sure it’s accompanied by a money back guarantee. Otherwise, look elsewhere. And don’t forget to ask for references and follow up on them.
MYTH #4 “You have to hire a credit repair agency or lawyer to fix your credit”
Going back to the analogy above, you can always hire someone else to cut your grass (or to do just about anything else) for your. And if fixing your own credit seems an intimidating task, you might prefer to hire a credit repair company to do it.
But it’s not really necessary that you do. First of all, credit repair agencies aren’t cheap. You can expect to pay anywhere from $2,500 to $5,000 or more. Plus, you’ll be paying a high fee for something you can just as well do for yourself, which brings us to myth #5.
MYTH #5 “It’s too difficult or complicated to fix your own Credit”
A credit repair company isn’t going to do anything for you that you can’t do for yourself! Credit repair isn’t rocket science. It involves writing letters to credit bureaus and to creditors. If you’re able to write a letter, put a stamp on it and mail it, you’re able to repair your own credit.
“Given the proper knowledge, you can fix your own credit”
This statement IS true! You’re entirely able to repair your own credit, given the proper knowledge. And given the proper knowledge, you can fix your own car, repair your own plumbing, or for that matter perform brain surgery.
While fixing your own credit is relatively simple and straightforward, you do have to know how to go about it. Essentially it involves getting a copy of your credit report and writing letters to the 3 major credit bureaus disputing negative information in your file.
But there’s a right way and a wrong way to do it. In fact even some of the high priced credit repair agencies get it wrong, which brings us to myth #6.
MYTH #6 “You improve your credit score by getting all the negative items on your credit report removed”
It’s possible to get all the negative items on your credit report removed and actually see you credit score go DOWN as a result! The reason? Your credit score depends on a number of factors, one of which is the length of your credit history. In some cases, you’re better off to NOT remove some negative items on your report, especially if they involve a few late payments in the distant past, but show timely payments during recent years.
While the “nuts and bolts” of credit repair is beyond the scope of this report, there are a number of sources of good information online. If you have bad credit, there are 3 major points you should keep in mind:
1. If you have a bad credit history, it can (and probably will) cost you many tens of thousands of dollars in higher loan interest over the years, as you’ll be charged much higher rates than you would be with good credit. If your credit is really bad, you may not be able to get a loan at all!
2. The situation isn’t hopeless! In almost every case you CAN improve your credit score. You can easily do it yourself or find a reputable agency to do it for you. But in any case, GET IT DONE!
3. If you choose to repair your own credit (recommended) there are good books and eBooks available that can walk through the process. Get hold of one and get started NOW!
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About the Author
Jim Eastman is the support contact for ErasingBadCredit.com. Anyone wanting to repair their own credit can get valuable advice by signing up for the FREE mini-course at http://www.erasingbadcredit.com.
Credit Report -- 5 Secrets Credit Bureaus Don’t Want You to Know
The credit bureaus wield a great deal of power over your financial and personal life. But they're hoping you don't learn these 5 secrets that will empower you to fight back!
Credit Report -- 5 Secrets Credit Bureaus Don’t Want You to Know
If you've ever applied for a loan or credit card, chances are your lender acquired and examined a copy of your credit report before deciding whether or not to grant you credit.
Your "Credit Report" is a record of your credit history and it's prepared by agencies called "Credit Bureaus", or "Consumer Reporting Agencies." These are private organizations and have no affiliation with the United States (or any) government. There are 3 major credit bureaus in the United States (2 in Canada) and their names are Experian, Equifax, and Trans Union.
Did you know that credit reporting is a multi-billion dollar a year industry? It's true! The credit bureaus are for-profit organizations that generate billions of dollars in revenue each year from selling copies of credit reports to creditors and mailing lists.
Your credit report affects more than your financial life. It could affect your education, career, and even your relationships. Your credit report is used not only by lenders and creditors, but also by auto, life, and home insurers, future employers, and even some educational institutions. It affects the interest rates you'll pay on everything!
So as you can see, your credit report can have a critical impact on many facets of your life. For example, because of a bad credit report you could be forced to pay tens of thousands of dollars MORE in loan interest over the life of your home mortgage. This is no exaggeration!
Since the credit bureaus prepare and distribute your credit report to lenders, they clearly wield a great deal of power over both your financial and personal life. But it would be a grave mistake to be intimidated by them, or to think that you have no choice but to live with the negative effects of a bad credit report.
In fact, there's plenty you can do!
Always remember; Knowledge is power! There're a few facts the credit bureaus would rather you don't know. Let's take a look at them, and you'll see why.
1. Credit reports are filled with errors!
It will probably astonish you to learn the percentage of credit reports that contain errors. While there seems to be some disagreement, estimates range from 1 out of every 3 (on the low end) to as high as 90%! Here's a "run down" on error estimates.
Percentage of Credit Reports Than Contain Mistakes
Attorney General of NY 1/3
Consumers Union 48%
US Congress 1/2
Charles Givens Organization 90%
So no matter who you believe, it's clear that way too many credit reports have errors. So even if you think you have good credit, it might be well worth your while to get a copy of your credit report and take a careful look at it.
2. The law is on your side!
In 1972 Congress passed the Fair Credit Reporting Act (FCRA) to curb abuses by the credit bureaus. The FCRA is the governing federal law on the issue of credit reporting.
Under the FCRA, you have the right to dispute negative information in your credit report. The credit bureaus then have 30 days to verify the disputed information with the creditor. If they cannot (or do not) verify the disputed information within 30 days, it must be deleted from your credit report.
3. Even accurate data in your credit report must be deleted if it's not verified.
If you've done any research into credit repair you've no doubt run across statements to the effect of "Negative data in your credit report that is accurate cannot be removed." As stated above, the FCRA stipulates that any disputed information must be verified within 30 days, or it must be deleted. The "burden of proof" (in a manner of speaking), is on the credit bureaus.
4. Credit repair DOES WORK in most cases!
You'll hear all kinds of opinions as to whether "credit repair" (i.e. efforts to improve your credit report) can be successful. The truth is, credit repair doesn't always work perfectly. But in almost every case the process of credit repair will result in at least SOME improvement in your credit score, and most often that improvement is substantial. So credit repair does work!
Now you may be wondering why repairing your credit score would be of any concern to the credit bureaus. After all, don't they make money by compiling and distributing credit reports regardless of whether those reports are negative or positive?
Well, yes they do, BUT...they also make money (a GREAT DEAL of money) selling names of people with poor credit, to creditors who have a specific interest in those people.
So why would some creditors want to bother with people who have poor credit? Because they know they can charge higher interest rates to those people, because the "bad credit risks" have no choice but to pay those exorbitant rates or forgo credit altogether!
Besides, investigating disputed information costs the credit bureaus time, manpower, and money. They have nothing to gain, and plenty to lose, when people take the initiative and dispute negative information on their credit report.
5. It's perfectly legal to hire third party help to repair your credit.
There are plenty of "Credit Repair Agencies" who will help you repair your credit. But if a credit bureau even suspects you're using such an agency, it's likely they'll try to discourage you from doing so. In some cases they'll even go so far as to send you a letter stating that use of such agencies is illegal.
Such statements are (to put it as politely as possible) garbage! In fact there are laws that regulate such agencies. Now laws don't exist to regulate illegal activity, except to ban it! When was the last time you saw laws that regulate what cocaine dealers must do to operate within the law?
Once again, repairing a bad credit report just isn't in the best interest of the major credit bureaus. But unless you happen to be the CEO of one of those bureaus, the most important question as far as you're concerned is "What's in MY best interest?"
First of all, get a copy of your credit report and examine it. You can get a free copy of your report at http://www.annualcreditreport.com/.
Secondly, take steps to improve your credit report. You can go about it in one of two ways.
1. Hire third party help.
If repairing your own credit report sounds too intimidating, there are plenty of credit repair agencies that will do it for you. But if you take this approach, there are three things you need to know.
First, they're not cheap. Expect to pay from $2,500 to $5,000 for an attorney or $795 to $2,000 or more for a credit repair agency. Secondly, they don't always do it right! Some will manage to get the negative data on your credit report removed while actually doing damage to your "credit score" (a calculated number used by creditors to evaluate you credit worthiness.) Finally, many are outright scams!
That's not to say you shouldn't hire third party help. If you do your "home work," ask for references, and carefully select a reputable credit repair agency, you'll be much better off than if you had done nothing. Still, if you're willing to do a little work, there's a much better alternative.
2. Repair you own credit report.
Anyone can fix their own credit report. If you can write a few letters, address, stamp, and mail them you can repair your own credit. There are plenty of good books
Bad credit will cost you many thousands of dollars and limitless anxiety. Even if you have fair credit, fixing your credit could still save you thousands in interest payments over the years.
Get a good book
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About the Author
Jim Eastman is support contact for ErasingBadCredit.com. For more information on repairing your credit report, visit http://www.erasingbadcredit.com/ for a free mini-course on credit repair.
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