to Negotiate Debt Obligations with Creditors
Offer a lump sum payment to settle the debt and
ask the creditor to remove the negative entry from your credit
report. For example, if you owe $10,000 of credit card debt and
offer to settle for 65%, you would pay the creditor $6500 and
he would remove the negative entry from your credit report...
Debt Collection Practices Act (FDCPA) - Consumer Credit Protection
The Fair Debt Collection Practices
Act (FDCPA) was initiated in 1978 as a statute of law
under the Consumer Credit Protection Act (CCPA).
It was voted as Law by the Congress to protect consumers from
harassment by debt collectors. When original creditors sell their
accounts receivable to debt collectors, it is often reported that
consumers are harassed to an extreme extent by debt collectors.
Harassing phone calls to their homes, workplaces as well as on
their cell phones was the case.
to Create a Debt Consolidation Plan
If you owe various different creditors small to huge sums of money
and find it difficult to keep track of each minimum monthly payment
and interest rates, it would be in your best interests to consolidate
under a debt consolidation loan that offers lower monthly interest
rate and lower monthly payments. Instead of having to pay for
example 5 different creditors, you will have to focus on making
1 monthly payment each month and reduce your debt.
» 4 Ways
to Successfully Control Debt
If your credit card company charges you
an interest rate in the 13% - 15% range, shop for other credit
card companies that offer lower interest rates. If you have been
a loyal customer to your credit card company for many years but
have not seen a reduction in the interest rates charged, try to
negotiate a deal with them to lower interest rates. Advise them
that you have been a loyal customer to them for many years, but
what are you getting from this loyalty?
» Credit Cards
Can Help Make You Fat
You probably think that's a rhetorical
statement but it's true, credit and debit cards can help in making
you fat. Most Americans know that high calorie fast foods can
cause weight gains pretty quickly, infact 30% of Americans are
considered obese. What's more, when you hop into the nearest McDonalds
and have a bunch of credit cards in your wallet, it's easy to
stick out the plastic to purchase those fries and burgers.
» Top 10 Causes
3DebtConsolidation.com would NOT exist
if there were no such thing as consumer debt. Peoples' lives would
be a lot less stressful and we would have less bankruptcies every
year. In this article, we will describe the top 10 causes of debt
that if avoided, will help you live a debt & stress free life
and achieve your American dream.
does Debt Collection Turn into Harassment?
I have a problem with debt collection agencies.
Debt Collection agency #1 calls me claiming i owe them $200, so
i dispute that debt and ask for a debt
validation letter. They do not respond to my debt validation
request, instead sell my debt to Debt Collection agency #2 and
this whole pattern repeats itself. Every 5-6 months, i have to
send out a debt validation letter to each of these collection
agencies costing me lots of money and time. Is this called debt
harassment and what can I do to put a stop to it?
» Carnival of Do It Yourself Debt
Welcome to the June 30th, 2007 edition
of the Carnival of Debt Consolidation. In this post, we highlight
14 superb blog posts related to Debt & Credit, Finance &
Investments & Personal Finance.
Credit Scores Can Save Money on Mortgages, Home Equity Line of
Credit & Auto Loans
"What if you could invest that money
in a simple mutual fund that covered the entire stock market and
left it until you were approaching retirement?" Historically
these funds have earned on average 10 percent per year. Investing
even $100 per month of money saved, thanks to a better score,
over the course of 40 years adds up to over $559,500."
Scores - Determining Your CreditWorthiness
These days, it's not just loan lenders
that check your Credit Score. Employers look at their potential
employees' credit scores in the pre-screening process. Even landlords
and insurance companies have got in the habit of checking Credit
scores of their potential customers. If you have a low credit
score, you are considered a high risk to lenders and have lesser
chances of being granted credit. If you are indeed granted credit,
you will have to pay higher fees, higher interest rates, etc.
Big Bankruptcy Bloopers
Failure to Disclose any Past
Bankruptcies: When you're going through the court
proceedings, be sure to disclose any previous bankruptcies you
may have declared. If you don't, the Judge will check the US Bankruptcies
Database and easily find out that you have previously declared
it, and this will make matters even worse for you.
» Carnival of Do It Yourself Debt
Welcome to the June 16th, 2007 edition of the Carnival of Debt
Consolidation. In this post, we highlight 9 superb blog posts
related to Debt & Credit, Retirement, Loans & other Personal
Card Balance Transfers Checklist
If you would like to transfer your credit
card debt from one card to another (also known as credit
card balance transfer) but do not know how to go about
it, use the following checklist to help you make a smooth transition
without having to pay any hefty fees or interest. Firstly, get
a copy of your old credit card's most recent bill and agreement,
as well as the new credit card's agreement form.
Is Your Credit Card Debt Too High?
You know your credit card debt is too
high when you have to spend more than 20% of your take-home pay
towards paying off the interest + original principal balances
on your credit cards. You must think of it in terms of your take-home
pay, because that is the amount you actually have to spend (after
paying off taxes). John Ventura, a Principal at Center for Consumer
Law (University of Houston Law School) quotes, "If you are
not able to pay a credit card off within 12 months, which means
making a lot more than the minimum payment, then you are not financially
sound in your financial dealings. You have too much debt."
Dark Sides of Debt Consolidation
With the lowest record interest rates
seen in decades, it is economically feasible for a person deep
in debt to consolidate all of his debts into 1 single monthly
payment at a lower interest rate. This is what debt consolidation
essentially does. However, that is NOT all you need to be debt
free, you have to do a lot more. You have to focus on saving up
more money by lowering your monthly expenses and accelerating
the debt repayment process.
» Can Debt
Negotiation Ruin Your Credit?
Beware of any debt negotiation companies
that promise to reduce your debts by "50%" by negotiating
lower interest rates and lower monthly payments from creditors.
This is because most of these debt negotiation companies will
charge you enormously high fees and will ruin your credit just
to get their job done. What's more, any settlement that you receive
on your debts (any debt forgiveness) will also become taxable
income for you!
Between Good Debt and Bad Debt
About 40% of people in America are renters.
Now here's what's surprising. Bach says, "The average renter
has a median net worth of $4,000, and the average homeowner has
a median net worth of about $150,000." And what's the best
time to borrow a mortgage loan? Now! Why? Because of low interest
mortgage loans (5% - 6%, 25 year fixed mortgages) or home refinance
loans using your home
equity line of credit.
I Tear Apart My $300 Limit Credit Card - The Worst Credit Card
I was in a financial crisis in the earlier
stages of my life that pretty much ruined my credit. In an effort
to rebuild my credit history, i took out a $300 limit credit card
that has a $6.50 monthly fee and an Annual usage fee of $150.
The interest rate charged on this credit card was a whopping 25%!
I want to cancel this credit card immediately, but if I do this,
my credit score will be negatively impacted? Remember, the point
of me taking out this credit card is to rebuild my credit history!
My question therefore is, should I cancel the card immediately,
or wait till its fully paid off and then cancel this?
I Pay Off my Debt or Save Up for a Down Payment on a House?
My spouse and myself are working very hard
to pay off our current credit card debt by atleast 80% and then
build up a good solid down payment for the purchase of our first
home. We currently owe over $25,000 in credit card debt, student
loans and auto loan debt. My question to you is, should we focus
on paying off this big debt first before buying our house, or
should we just make the minimum monthly payments on the debt and
build up a larger down payment?
of Debt Consolidation, Types of Debt Consolidation Loans, Pros
& Cons & Zero Percent Debt Consolidation Loans
Over the last decade, we have seen very
low interest rates that entice many consumers to take on many
different forms of debt consolidation loans (see below) to pay
off their existing debt. These types of debt
consolidation loans range from Home Equity Lines of credit
to Zero Percent Credit Card debt etc. The goal of these debt consolidation
loans is to take multiple monthly payments that have high interest
rates into 1 low monthly payment with a lower interest rate.
Ways to Achieve Debt Elimination - Debt SnowBall Elimination Method
Dave Ramsey introduces the idea of a Debt
SnowBall Elimination Method in his book, The Total Money
MakeOver. With the Debt SnowBall method, you ignore the
Annual Percentage Rates (APRs) on your debts when determining
which debt to pay off. Instead, you sort your debts from the lowest
to the highest, an example is shown below:
Way to Eliminate Credit Card Debt - No It's Not Debt Consolidation
The fastest way for you to eliminate
credit card debt is to eliminate the big profit generator
for credit card companies, and that is, late credit card payment
fees and over-the-limit fees. Yes that's right, did you know that
in the fiscal year 2006, 31% of the the credit card industry's
profits or operating income came from late payment fees and over-the-limit
credit card fees?
Mistakes Not to Commit when Dealing with Debt Collection Agencies
Debt collectors are nasty when it comes
to collection of debts. They will call you late at night or at
work, will send you unpleasant letters and make your life a living
hell. You can make this even more worse by committing any of the
It Yourself Debt Reduction
If you are committed to reducing your debts
and are willing to cut down on unnecessary expenses, it is indeed
very possible to succeed in what's called a "Do It
Yourself Debt Reduction" plan. Why do you need to go out and pay debt counselors
or credit counselors big hefty fees when you can reduce your debts
on your own? In this page, we will articulate the steps required
for a successful debt reduction plan:
Important Credit Card Terms or Terminology You Need to Know
When you sign up for a new credit card,
the issuer will make you sign pages and pages of documents with
sophisticated financial and credit card jargon that you probably
have no idea about. Don't worry, in this page, we will define
13 common credit card terms that you will find in almost any credit
card agreement. Therefore, before you sign that next credit card
agreement, do read all the fine print and ask questions if you
do not understand a term!
Crucial Debt Reduction Mistakes
Humans beings are impatient. Just like
the process of losing weight, many people try to rush through
their tasks of debt reduction and make costly crucial mistakes
that ruin their entire debt reduction or debt management plan.
In this article, we will explain those 10 debt reduction mistakes
that you should avoid:
Signs Indicating You Need Credit Counseling or Debt Help
Just like losing weight, some people will
be successful in debt reduction all by themselves. However, there's
many other people who need the help of a personal trainer, or
a professional credit counselor to be precise. Here are 15 signs
indicating you need help from a professional credit counseling
to Improve Your Credit Score - 4 Basic Things
To get good mortgage loan terms, you need
to have a credit score in the 700 - 720 range. The expected national
average is 723 according to Fair Isaac. What's the best way to
increase your credit score in the short term? The best way is
to pay off any high debt balances on your credit cards which could
increase your credit score by a whopping 60 - 80 points overnight!
Off Your Student Loans Early: Is It Worth It?
"If a student borrower who has received
a loan described in subparagraph (A) or (B) of section 428(a)(1)
dies or becomes permanently and totally disabled (as determined
in accordance with regulations of the Secretary), then the Secretary
shall discharge the borrower’s liability on the loan by
repaying the amount owed on the loan."
Your Home Equity Line of Credit
Using the equity built up in your home,
you can get lots of credit made available to you from many lenders,
in whatever possible way you want to use it. Furthermore, the
interest rate at which you achieve this home equity line of credit
is usually a lot lower than credit card debt & other sources
of financing. Also, the interest payments that you make are tax-deductible
under certain circumstances.
Faith Estimate of all Closing Costs in Mortgage Loan Applications
Your debt lender is required to provide
you with a good faith estimate of all the closing costs you will
have to pay for within 3 days of your initial mortgage or other
loan application. Here is a list of the type of fees you will
have to incur upon closing of your mortgage loan application:
Hidden Traps Debt Lenders Use to Rip You Off & How to Avoid
The PrePayment Penalty: This penalty applies
if you pay off a large portion of your loan (the principal amount)
or the entire loan, within a short period of time. Many borrowers
like to pay off their loans with minimum interest paid, but lenders
obviously want their own interest revenue as well.
of Your Credit Rating & FICO Score
Upon borrowing money and taking out credit,
you are promising to pay back to the lender the original principal
you borrowed + some interest fees after a certain period of time.
How likely is it that you will pay back this debt you owe? To
determine this, the FICO score was developed.
Money & Repair Your Credit History by Suing Credit Bureaus
& Debt Collectors
In the table that follows, we list the type of collection
agencies or credit bureaus that you can sue, why you can sue them,
the appropriate supporting law and the monetary value of the punishment
of Debt Settlement, Advice & Tips, Debt Validation & Tips
on Debt Negotiation
Thus when negotiating a debt settlement, do NOT offer
more than 20% of the original debt owed.
a Payday Loan v/s Borrowing from a Line of Credit v/s Cash Advance
on a Credit Card
Have you ever wondered what the difference between these 3
items is? Which one is the cheapest option, and which one is the
most expensive? We will compare the total costs of borrowing from
each of these 3 sources.
Loan Fees, Charges
These service fees cost 10-35% of the original loan amount
or $10-35 for every $100 borrowed. Therefore, a $500 payday loan
could result in $50-175 in service fees.
Look at Payday Loans (Quick Cash Advances)
A quick cash advance (also known as a payday loan) is a short-term
loan borrowed that will help you cover your short term cash flow
problems while you wait for your paycheck at the end of the month.