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Get out of Debt Options

September 20, 2008 · Leave a Comment

What choices do I have for Debt Reduction? DEBT CONSOLIDATION Entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan. Source: Wikipedia. There are actually several different methods that fall under this category. The over all goal is to consolidate all your debt into one payment you can afford. This can be done with a loan, using equity lines, credit counseling or through Bankruptcy. Be very careful with these methods as some will devastate your Credit Rating. Read more... [Read the full story]

Debt Blog

Scumbag Debt Collectors, Part 11

October 14, 2009 · Leave a Comment

Start Filing Complaints Check to see if debt collectors are required to be licensed in your state. If so, find out how to complain to the state agency that regulates them. I live in Arizona, and debt collectors are required to be licensed. If there are laws requiring a debt collector to be licensed and you can’t find the debt collector on the list of licensees in your state, they are breaking the law. Use this to your advantage when filing complaints! I recently had an issue with an abusive debt collector calling me for someone in my family. I told the guy to stop calling and he became verbally... [Read the full story]

Videos

Dave Ramsey Debt FREE!!! Spoof

September 20, 2009 · Leave a Comment

DEBT SNOWBALL or DEBT ROLL-UP

September 20, 2009 · Leave a Comment

The overview for this program is you pay more a month than your monthly minimum on one debt while you stay current on all your other debts. You start applying the extra money every month to the smallest balance, and once that balance is paid off you apply all the money from that debt to the next largest balance. This will create a snowball effect in paying off your debt. It is very important that you pay the minimum on all other debts to keep all your accounts in good standing and not create more debt by paying late fees. How it works: You must stop using all your credit cards. If you do not do... [Read the full story]

Credit Repair

Should You Pay for Credit Repair?

September 28, 2009 · Leave a Comment

Do repair companies do anything you can’t do yourself? Watch this video from MSN Money: http://articles.moneycentral.msn.com/video/default-ap.aspx?cp-documentid=6c26df5b-fbba-4fea-948f-316126c59f79 Read More →

Credit Score

What Makes Up a Credit Score?

September 20, 2009 · Leave a Comment

Fair Isaac Corporation uses 22 pieces of data collected from the three major credit bureaus to produce a FICO score (your credit score) with the lowest possible score of 300 and 850 as the highest possible score. There are 5 weighted categories used to determine your score. • Payment history 35% • Debt 30% • Length of Credit history 15% • New Credit 10% • Types of Credit used 10% The two largest factors in obtaining a high credit score is to make sure you pay on time and keep your debt load low. The sad reality is only 13% of all Americans have a FICO score above 800. This means most... [Read the full story]

Debt Reduction Options

DEBT SNOWBALL or DEBT ROLL-UP

DEBT SETTLEMENT or DEBT NEGOTIATION

You make an offer to your lender to pay off 30% to 50% the current balance you owe. This is pre-collection agency. This process can take 6 months or more and it’s not for the weak of heart. How it works: So let’s say your monthly payment is $400 a month on a balance of $4000. You stop making the $400 a month payment to the bank and instead you put... [Read more of this review]

DEBT CONSOLIDATION

There are actually several different methods that fall under this category. The over all goals are to consolidate all your debt into one payment you can afford. This can be done with a loan, using equity lines, credit counseling or through Bankruptcy. Be very careful with these methods as some will devastate your Credit Rating. How it works: 1. Borrowing... [Read more of this review]

Do Nothing

1. Ignore the situation By ignoring the situation you are let your credit go down in flames! In the future you will have a hard time getting a car loan, mortgage or even renting an apartment. You will pay more money for the exact same item than people with good credit. Read More →

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