Consolidation Options For People With Poor Credit by Melanie Mathis

Struggling with bad debt can cause some people to panic and resort to wrong actions. Drastic decisions are often unwise and being in stress can make anyone vulnerable to tricks and scams. Therefore, when confronted with a problem such as bad debt, a person needs to step back and analyze the problem from afar. Before making any decision, ask yourself, what is the real root of my debt problem? What has led me to this kind of problem? Yes, people get stuck in debt for various reasons and finding the perfect solution varies from one situation to another. In this article, let's discuss some of these credit repair solutions that you may consider. Debt Consolidation Options Debt consolidation is usually recommended for people with multiple debts. By consolidating debts with a loan, the continuous accumulation of debt can be stopped right away. However, bear in mind that as a borrower, you still have an obligation to your debt consolidation lender. Being consistent with your payments is a must to completely recover from bad debt. It is interesting to note that debt consolidation loan is not interest free. You also need to find a debt consolidation lender that offers a reasonable interest rate. Some companies may claim to offer debt consolidation loans yet impose high rates to their clients. These companies do not offer real help. They're only out to make money. This is why consumers must do extensive research and comparison before signing up for consolidation.

A debt consolidation loan is usually a secured loan. This means the borrower is required to submit collateral. Remember that acquiring a secured loan puts your property on the line. You can't afford to make another mistake or you could end up losing your home to your lender.

Therefore, before consolidating, you need to be prepared to take on your repayment obligations until the end of your loan's term.

The Importance of a Budget Plan

Successful debt consolidation largely depends on how you handle your day-to-day finances. Creating and following a budget plan is crucial to be able to keep up with your monthly loan payments. How can create an effective budget plan?

A budget plan will only work if you can follow it in a long term. Therefore, make sure that the plan you made is a realistic one. Debt repayment should be on top of your priority but you should also consider your needs and the needs of your family. IF your present income isn't enough to cover for all your costs, you may need to find a second job for additional support.

See to it that the amount of your monthly debt consolidation payment is something you can keep up with until your loan is completely paid off. Avoid loans with a variable interest rate where your monthly loan payments can change or increase at any time during your repayment term.

About the Author

About the Author Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended Debt Consolidation Companies. Copyright 2009.

Five Sercrets to Improve and Maintain Good Credit by Jason Pollington

I will provide you with 5 basic very important steps to repair and maintain good credit.

#1) Never make the minimum payment on your credit cards!!!

Don't fall into this trap! Once you get into this habit it will be very difficult (if not impossible) to get out of. If you paid a minimum payment (roughly around $250) on a total of $10,000 in credit card debt with and average interest rate of 9.99% it will take approximately 20 years to pay the debt off and paying an extra $5,000 in interest. The solution is to add an additional $100 a month to the minimum payment. It will not only save you about $3,500 of interest, you will also pay off the debt in less than 3 years. Obviously if you cannot afford to pay an extra $100 on top of your minimum payments you just have to pay what ever you income situation allows you to pay. Essentially you will save a ton of money on interest, and will be debt free a lot sooner.

#2) Trim the fat!!!

What I mean by "Trim the Fat" is keep five trade lines open and close any other remaining trade lines. Here is what you should have… Example: a mortgage, a car loan (if needed), and 3-4 credit cards. The credit cards you should keep are ones with low interest rates, can earn reward points, and preferably credit card companies that have good customer service departments. Try to stay away from the ones that charge an annual fee. I've found that credit cards from your personal credit union or bank are optimal because you can manage them easier and do it with free online banking.

#3) It is good to use credit, just Don't abuse it!!!

By making purchases and paying it off at the end of the month to avoid interest and finance charges. A good rule of thumb is to try and keep the balance below 33% of the limit. That way your credit score will stay in good standing and your payments won't get out of control. It will also allow you to stay away from the credit trap. So if your limit is $1,000 keep you balance under $330 if possible.

#4) Debt consolidation and Consumer Credit Counseling is Bad News!!!

No matter how good the sales pitch is stay away from it. It doesn't repair your credit or improve your score; on the contrary it actually lowers your score. I would recommend going to a Debt Settlement company to negotiate your balances and interest rates for you. That would ultimately lower your outgoing payments and your total debt. That in turn raises your credit score as well. I would shop around first because it could be pricey.

#5) Dispute, Dispute, Dispute!!!!

There are hundreds of millions of social security numbers issued in America. There are only three major credit bureaus (Equifax, Trans Union, and Experian) to collect all of our data and credit information. They are bound to make mistakes and errors on your credit report. The only way to remove them is to dispute them in writing to the creditor and all three credit bureaus. The trick is to send a letter with a return receipt to the creditor and all three bureaus. The Federal Fair Credit Reporting Act allows 30 days for them to respond back. If the bureaus can't verify your debt in that time frame then it will be permanently removed from your credit report.

My Mission is to help as many people (with GOOD motives and intentions) build, and maintain wealth using financial strategies that have already been tested and proven. To learn more about how you can receive this financial education and how to build wealth visit one of my websites below. God bless!

www.turnkeywealthplan.com or www.millionairemindsetacademy.com

About the Author

Hello My Name is Jason Pollington, I am a 27 Year old Entrepreneur. I am married to a wonderful woman and have 2 beautiful little girls. I grew up with 5 brothers (no sisters) in San Diego, CA. Family and God is everything to me. I am also very passionate of what I do and my mission to assist as many people with good motives and intentions to build, and maintain a lifetime of wealth.

Consolidate your credit card Debts by Jeff

Involving some basic charges, a credit card is nothing but a small plastic card used for borrowing. One of the most popular means of borrowing money, this medium has, over a point of time, seen a big hike in its usage. Something, which in turn, has given rise to one of the biggest debt issues, popularly known as credit card debt.

The above-mentioned phenomenon generally takes place when a person has many credit cards and is unable to pay his creditors in the due course of time.

In such a scenario, all credit card debts could be solved only when one would consolidate their debts. The following is a list of reasons which will make it beneficial for you to give the concept of credit card debt consolidation a serious thought:

1. All issuers of credit card ask the consumer to pay annual fees for the use of the card. When a person owns multiple credit cards, he has to pay a high rate of annual fees. In this situation, if one will consolidate his debts, he will be saved from paying such an annual fee because an issuer knows it is not easy to get new clients.

2. When credit card debts with high interest rates are consolidated into a single credit card debt, you end up paying multiple creditors with less interest rate and you end up getting financial benefits.

3. You are definitely going to end up with a bad credit rating if your credit card debts are building up and you are unable to pay them off.

4. Credit card issuers also pay you if you consolidate all your debts into one credit card debt consolidation loan.

If you too have been carrying credit cards and believe it's about time to consolidate debts, you can find a whole lot of financial information on the Net. A premier lending agency such as Australian Lending Centre can be of major help in this regard. The financial portal offers great advice and tips on how to consolidate debts and secure your future in the best way possible.

About the Author

Jeff Minton is a financial expert who possesses vast knowledge on how one can consolidate debts. As a part of the Australian Lending Centre team, he can advice you on the basics of debt consolidation. To know more about this offering, please visit http://www.alcdebtconsolidation.com.au.

Simple Ways to get rid of your Credit Card Debt by Jeff

Eliminating your credit card debt or credit repair does not mean you have to hire an expensive credit repair service. In fact, to fix your credit, you need not do anything; you can just go ahead, and do it for free! However, it is not an easy task, despite all the promises made by those who give out professional services in this regard.

Getting Rid of Bad Credit
Firstly, do not sign a contract or commit yourself to an expensive credit repair service. Don't go ahead and buy books or software which give easy advice towards fixing your credit. Instead, just go ahead and focus on these three simple and free steps towards getting rid of bad credit.

Step One
Go to the root of the matter and run all your credit reports. Any consumer has the option wherein he can have, at his disposal, three major reporting agencies for getting a free report. Even if a credit application has been denied recently, you can still ask for a report at that point and time.

Step Two
After summarizing the situation, it is time to progress to the next level. Take your cards, snip them and throw all of them out of the window. Close all these accounts and don't sign for any more cards till your credit comes in the green once again. Try not to add any more debt as it will further complicate matters.

Step Three
In the final step, try and repair all bad credit. Eliminating any credit card debt will take the longest and involve a lot of toil and sweat. This step will also require a concrete plan of action as compared to the other steps. Debt consolidation is one of the most effective options for credit repair. Seek advice from a trustworthy professional and consolidate all your credit card debts into one single loan. In doing so, you will definitely be able to handle your finances in a better manner.
To conclude, you can just about do your own credit repair and eliminate your credit card debt by following the above-mentioned simple steps. Taking stock of the situation, emptying up your coffers, and working on the phones can take care of all your issues. Better still, you can go on to major financial sites such as Australian Lending Centre and get a far better idea on how to cope up with the debt situation.

About the Author

Jeff Minton is a financial expert working with Australian Lending Centre. The site offers vast amount of information and expert advice that can surely enable anyone to eliminate his or her credit card debt. To know more, please visit http://www.australianlendingcentre.com.au.

Debt Consolidation Can Be Your Life Preserver in a Sea of Debt by Dee Power

The recession isn't slowing down and darker days may be ahead before there is any significant brightening on the horizon. Unfortunately many families won't be able to wait out the storm as a result of higher credit card debt, plummeting real estate values, and rising unemployment rates. Estimates put credit card debt at nearly $10,000 per household and the total consumer debt at $30,000 per household. Combined with a downward spiral in the value of investment or retirement portfolios it's no wonder the outlook is gloomy. Struggling to make monthly payments adds tremendously to the stress many people are under, and for many, there seems to be no solution in sight. Fortunately, those struggling to keep their head above water do have several options including debt consolidation.

Debt consolidation is simply when a new loan is obtained that is used to pay off unsecured debts. In most cases the new payment amount is significantly less than the individual payments to all the different creditors resulting in some breathing room.

If the new debt consolidation loan is secured on real property, a home for example, the interest rate may be substantially less than credit card interest rates resulting in even more of a break in monthly payments.

Many families think that bankruptcy is their only option to get out of debt, not realizing that with the new more stringent bankruptcy laws they may not even qualify. And in any event the bankruptcy stays on their credit record for seven years.

Debt settlement, another option for getting out of debt, is negotiating with creditors to accept as payment in full a lesser amount than the principal amount owed. But this is not the ideal solution for most consumers. The downside to debt settlement is twofold. Until the debt has actually been paid the debtor can still be pursued for payment and taken to court. In addition the fact that the debt hasn't been paid in full will be reported to the credit bureaus and can damage the debtor's credit score.

A debt consolidation program combined with closing the paid off credit card accounts and other consumer debts, reducing household spending and sticking to a realistic budget can put most debtors back on track. But it is important for those in financial difficulty to be proactive and not just wait and hope that the times will get better. The implementation of debt consolidation programs can help consumers plug the leaks in their financial ship and set sail for a more prosperous future--and an end to financial related stress.

About the Author

Find out more about debt consolidation and debt management. Dee Power has co-authored several nonfiction books including Business Plan Basics, Inside Secrets to Venture Capital and Attracting Capital From Angels There is hope to get out of debt.

Free Debt Grants to End a Financial Storm

Every year the federal government provides debt relief for individuals with debt grants. These programs allow families to obtain the financial resources they need in order to pay down credit cards and avoid bankruptcy.

This is in no way new. Federal grant programs have been in existence for decades now, but since the credit crunch and near collapse of Wall Street, these bailout programs have been receiving media attention. Now consumers are wondering how they can cash in from the over $700 billion dollars in bailout money the government is providing.

But the first question that may come to mind is why does the government bother providing debt grants? Why on earth would they care about helping people out financially?

The answer is simply because it is in their best interest. When individuals foreclose on their homes, file for bankruptcy, or even have a hard time paying the minimum balance on their credit cards, the economy suffers.

The money that consumers cannot pay back has to go somewhere. Credit card companies, for example, have to write off the bad debt as a loss, which is then reduces the amount of tax they have to pay. That streams down to tax loss flowing into government hands, which then flows back into less money that is spent on the economy.

Public schools suffer, road and bridge repair suffers, low income housing funding is reduced, and the list goes on. The inability for Americans to meet their debt payments can have a major, catastrophic impact on the American economy.

The governments solution is simply to take a loss up front by providing free grant money in order to prevent further damage.

By giving money to those who are in danger of defaulting on their loans, the federal government is able to eliminate the chance of what could be a major economic problem.

For consumers, this is a great way to become debt free without having to worry about any consequences. Debt grants is essentially free money that never has to be paid back. As long as you use the cash to get out of debt, the government will never ask you to repay the money.

The government, however, doesn't advertise these programs, which is why most Americans do not even know that debt grants exist. Those who do know about them don't necessarily know where to go to find them.

The process is fairly straight forward and simple. First you need to find out what grant programs are available and how much funding you are eligible receive from these programs. From there, you submit an application and wait for a response.

Since the government is mandated to give this money away, there is a relatively good chance that you will receive some funding. In many cases there is more money available than applicants requesting debt grants, so nearly by default you will be awarded free grant money.

You can find these programs at local, state and national federal agencies, and there are many non-profit organizations that run similar programs to help people get out of debt. Start with your local government office or City Hall to find out what is available for you to receive. From there, you can contact your state and national agencies. There is no limit as to the number of grants you can apply for and receive, so you can increase your chances and the number of checks you are sent by applying for multiple grant programs.

free grant money
informarmation on how to find and apply for government grants

By Austin Warty
Published: 12/29/2008

Debt Reduction: Controlling Spending Habits

Everyone has been in debt at one time or another. Nowadays, many families live in debt constantly, making payment after payment on balances that never seem to diminish. Faced with these rising debts, people are coming up with more and more creative ways to deal with them. Some people avoid paying their creditors, in hopes that they will go away. Others form companies that they can then use to borrow more money. For those who want to face up to their obligations and be responsible about reducing or eliminating debt from their lives, the Web is a good place to look for information.

There are literally hundreds of web sites providing different types of help, for people with a small amount of debt who want to avoid inflating it, or for others swimming in debt, barely keeping their heads above water. There are useful articles about the psychological side of debt reduction, such as how to get yourself in the right frame of mind to attack your debt head-on. Practical and no-nonsense articles about negotiating with credit card companies, dealing with collectors, reducing the interest on outstanding debts, and controlling spending habits can help keep debts from escalating out of control.

Many web sites offer nifty tools such as mortgage calculators, tax estimators, and loan planners that help visitors with the number crunching and budgeting required to reduce or eliminate outstanding debts. Perhaps the most important feature of the many web sites dedicated to debt reduction is the fact that they help visitors overcome their feelings of frustration and guilt associated with their debt. Many sites also provide visitors with a sense that debt is a problem that can be attacked and solved, given the right tools and information.
By Buzzle Staff and Agencies
Published: 7/4/2000