Destroy Debt Blogs

How to file for bankruptcy? Should I file bankruptcy?

Fri, 20 Nov 2009 03:02:46 GMT

You be in debt a big amount of money. Definite, bankruptcy is an alternative to acquire rid of the debt but how do you be familiar with when to file? Have you been asking over yourself assured questions akin to: Am I qualified? Do I be obliged sufficient money? Does it make the most sense for my position or is there another choice I should know about?

For persons, two main forms of bankruptcies stay alive, Chapter 7 and Chapter 13, equally of which require credit counseling. Chapter 7 is straight bankruptcy and occupies selling the debtor's non excused assets to pay off the debt. It is tougher to file, due to the means test. Chapter 13 is a refund plan by a debt limit and is greatest for debtors with a accepted income to pay off their debts through.

The reply to threat what time should I file for bankruptcy question is to file for bankruptcy when you've tried all other options. Since bankruptcy embarrass on your credit report and does take a certain shame with it, don't immediately file for bankruptcy when you are obliged money.

Perform file for bankruptcy if you:

Be obliged an impossible amount of money that your earnings is not matched for, have combine loans, spoken to credit organization and still think as even if you don't have any other options.
Think your only alternative is to use money from retirement plans. Early on leaving from retirement accounts can create you answerable for taxes and fine which may not be dischargeable.
Are in risk of having wages decorate, and don't wish for wages to be decorated.
Have huge medical bills that carry on producing or would get a extended time to pay off. These are liberation in bankruptcy.
Have previously attempted working spare hours, scaling back your financial plan, and selling property to pay off the debt.

Apply Here to File For Bankruptcy

In detail, do not file for bankruptcy if you:

Are worried on your credit. Bankruptcy preserves stay behind on your credit for up to 10 years.
Require good credit for a employment. Bankruptcies humiliate on your credit report if a probable employer does a credit check.
Desire no one to expose. Bankruptcy is open record.
Are filing to acquire rid of allowance and support, learner loans, smashed driving judgments, or debts from scam. These kinds of debts are not removing by bankruptcy.
Are youthful, just having yourself as a needy, have a little debt, and have money that can be useful to the debt.

Most people who file for bankruptcy tend to be older with several debts that add up to a large amount of money, have a small cash reserve, and are filing due to divorce, job loss or medical bills. If you find yourself meeting some of these characteristics, get in touch with a tax professional who can help you explore whether bankruptcy is the right option for you.

"Bad Credit Habits": How To Avoid High Fees

Thu, 19 Nov 2009 09:28:21 GMT

Individuals with problematic credit histories often suffer unfairly from high mortgage, insurance, and car loan rates. On top of that, they have difficulty getting approved for credit cards. The whole situation can get extremely frustrating. Frequently, I get emails from consumers wondering what they can do to rebuild their credit. The first thing I tell them is to get a credit card designed for people with bad credit. The second thing I tell them is written in bold: READ THE FINE PRINT.

There are only a limited number of credit cards for individuals with bad credit. At first glance, many look the same. They all help build and rebuild your credit by reporting to the major credit bureaus on a monthly basis. They all provide you with the Visa or MasterCard you need to make many purchases. And they are all necessary evils that can save you thousands of dollars in mortgage and car loan rates in the future. However, you must read the fine print before applying for one of these credit cards, as they often charge high yearly fees, set-up fees, and even monthly fees. Here, I will examine a few examples of charges current “bad credit” credit cards bury in the fine print. Of the three major cards I will examine, only one stands out as consumer-friendly.

“Bad Credit” Credit Card #1: This credit card charges a very low interest rate for an unsecured credit card. However, your first fine print glimpse reveals that there is a one time setup fee of $29. Not too bad. So far, since the next charge is a one time fee of $95. So far, we’re up to $124 in expenses. That’s got to be it, right? No. Add in another $48 for the annual fee and $6 per month in account maintenance fees. That’s brings the cost of your new credit card to $244 the first year, and $120 each additional year. This is no small change, and a card such as this should be considered only if you cannot be accepted for a better unsecured credit card for bad credit.

“Bad Credit” Credit Card #2: This credit card charges a very high interest rate for an unsecured credit card. This can’t be good. But the setup fee is only $29. Maybe this card isn’t so bad. There is that pesky monthly maintenance fee of $6.50 per month which brings the cost of this unsecured credit card to $107. Maybe we’ve found a bargain. Not quite. The annual fee is a whopping $150. Yes, $150 every year. That not only brings the initial cost up to $257, but you will also pay $228 a year just to maintain the credit card. There has to be a better offer.

“Bad Credit” Credit Card #3: This credit card is available as both a secured and unsecured credit card, based on the issuer’s review of your credit history. The interest rate is average, even competitive. Now, the fine print reveals that there is a one time setup fee. However, based on your credit, this fee can be as low as $0 or as high as $49. So far so good, especially if your credit is not that bad. But, there must be a huge annual fee. Not exactly. The annual fee for a secured credit card is only $35, and for an unsecured credit card, this fee can be as low as $39 or up to $79. So far, the cost of this card ranges from $35 to $128. Now its time for the monthly maintenance fee. This one has to be huge. Or not. Its $0. That means the most you could possible be charged to obtain this credit card is $128, about half of what competing cards are charging.Clearly, there are substantial difference between “bad credi t” credit cards. Of the three offers we have examined, only one doesn’t take you to the cleaners. In fact, “bad credit” credit card #3 provides great value. All positive changes to your credit history and credit score will translate into lower loan rates, lower credit card interest rates, lower insurance rates, and ultimately, thousands of dollars in savings. The path to rebuilding credit has its costs, but in the long term, rebuilding your credit with a “bad credit” credit card is the fastest and most cost-efficient way to correct the often unfortunate circumstances that have damaged your credit in the first place.
For more information about Credit Repair log on to http://www.efixurcredit.

Fix Credit: Dispute Negative Info on Your Credit Report

Thu, 19 Nov 2009 09:23:05 GMT

You as a consumer have rights under the Fair Debt Reporting Act to dispute negative information contained in your credit report. You can dispute negative or falsified information on your credit report by writing a dispute letter to the credit bureau that contains the negative blemish. This can usually be done online as well, while youre reviewing your credit report. Free credit reports are available through sites like annualcreditreport.com and disputes are enabled through a simple click through feature per each entry on the report. Once a dispute letter has been mailed or submitted online the law then requires the credit reporting agencies to take action for the consumer by conducting an investigation of said issue.

With these easy to follow steps you can easily write an effective dispute letter to the credit bureau.

Obtain your credit report: You can obtain a free credit report once a year or if you have been recently declined credit. Annualcreditreport.com provides a truly free credit report that can accelerate the process of sending snail mail. I mean, it is 2009…Order a copy from all three major credit bureaus. Experian, Equifax, TransUnion.

Become Sherlock Holmes: Read through your report with a fine tooth comb…or a slow scrolling mouse…Look for falsified information that may indicate you have been a victim of identity theft. Check the history of revolving accounts for false details, negative statuses, and outdated remarks that may be eligible to be removed.

Specify the items in dispute. Be very specific as to what item youre referencing and as detailed as possible as to what the dispute involves. If you have to use snail mail, send a copy of the credit report along with your dispute, circling which mark is being referenced. Online users can take a screenshot of the online credit report.

Separate the masses: If youre disputing several items youll want to send the disputes individually. As tricky as credit can be you have to imagine the men behind the curtain arent over willing to make that extra effort and sift through pages of email gripes or a manila folder as thick as a bible pointing out mistakes their organization has posted. Make it easy on the credit bureau to review each dispute individually. This is more to your benefit than theirs, trust.

Play nice: CAPPING every word isnt going to come off as cordial. As upset as you may be that you have erroneous marks on youre credit its best not to express yourself as a demanding impatient tyrant. Make your dispute personal and professional. Be polite. They can –read- your smile, lol.

Just the facts maam: Were not writing novels here. These are dispute letters. A definitive, professional, polite, one to two liner dispute per item. You have your goal, stick to it and lay out the facts. Point out the errors and request corrections and confirmations.

This is America! Keep in mind that you have the right to dispute marks on your credit report. Credit bureaus are required to investigate your dispute and can take up to 30 days to research and reply with the outcome of the investigation.

Follow up: Upon completion, you will receive a letter or copy of your credit report that shows their findings from the review. Should you not receive a response after 30 days send another letter reminding them of their obligation to respond and satisfy your submitted dispute. If you do not receive a reply thereafter your next step is to contact the FTC and file a formal complaint against the credit bureau. In the few cases where it escalates to contacting the FTC the disputed items are usually removed immediately for negligence and lack of evidence to support the negative mark.

More Help: If youre credit report looks like gibberish a non-profit credit counseling agency will usually review your report with you for free over the phone, via email, or in person should the service be local. Contact our certified credit counselors at our BBB Rated A+ non-profit credit counseling agency for a free review of your credit report and more helpful information to get your credit back on track. We help people fix credit scores and reduce debt through free financial information and debt elimination programs. Get on the road to financial freedom with Freedom Debt Management, 800-905-1563.

6 Things You Should Know About Loan Modification Scams

Thu, 19 Nov 2009 04:15:37 GMT

1. A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may pocket your money and do little or nothing to help you save your home from foreclosure.

2. A company /person guarantees they can stop a foreclosure or get your loan modified. Nobody can make this guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies will only promise they will try their very best to help you.

3. A company/person advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. The minute you have trouble making your monthly payment, contact your mortgage lender.

4. A company pressures you to sign paperwork that you haven’t had a chance to read, and you don’t fully understand. A legitimate housing counselor would never pressure you to sign a document before you had a chance to read and understand it.

5. A company claims to offer “government approved” or “official government” loan modifications. They may be scam artist posing as legitimate organizations approved by or affiliated with, the government. Contact your mortgage lender first. You lender can tell you whether you qualify for any government programs to prevent foreclosure. And, remember, you do not have to pay to benefit from government-backed loan modification programs.

6. A company/person you don’t know asks you to release personal financial information online or over the phone. You should only give this type of information to companies that you know and trust, like your mortgage lender or a HUD-approved counseling agency.

Consumer Rights Against Unfair Collection Practices

Tue, 17 Nov 2009 07:59:54 GMT

Education is empowerment. The pen is indeed mightier than the sword and knowing your rights against harassing collection calls could not only save you stress and aggravation, but possibly some pocket change.

If you’ve ever been late with a credit card payment you understand how aggravating collection calls can be. Most of these cold call collectors make minimum wage with high commissions for payments they receive from consumers by making idle threats and sometimes falsifying information, exaggerating the severity of the delinquency and the consequences to follow. Most consumers don’t realize this though and think that the threats are real and their tactics are legit, mostly due to inflicted guilt and fear for already being late in the first place. So how can you tell when a collector has extended their power against your rights as a consumer and is breaking the law? Well, by research! But were going to make it real easy for you with these easy basic guidelines to look for and understand when dealing collection calls and creditor harassment and your rights under the Fair Debt Collections Practices Act (FDCPA).

First and foremost, a collector may only contact you at a time reasonable and convenient for you. An assumable acceptable time frame is considered between 8am and 9pm. You shouldn’t be receiving calls to collect on a debt before then or after. To further, if a collector calls you and you advise them that -this is an inconvenient time- they must abide by said advisement and adjust their tactics accordingly. In addition, during working hours you can advise a collector that you cannot receive calls at work. After this has been documented with your verbal advisement, additional efforts made during your business hours is in violation of your rights under the FDCPA.

Skip tracing. This is when a collector uses outside information obtained from third parties in an effort to establish contact information. In no instance are they permitted to disclose to family member, friends, neighbors, etc WHY they are calling or demean you in any way .

The degree of harassment is broad but there are certain limits to their efforts in accordance with your rights. Oppressive or abusive behavior, the threatening of violence or criminal acts, and use of profanity and obscenities are violations of the Act.

A collector must identify to you their name OR name of employer, reason for the call and your Mini-Miranda rights before going into the collection effort. An example of what the Mini-Miranda act should sound this:

This is an attempt to collect a debt. Any information will be used for that purpose. If you dispute the validity of this debt you have 30 days to notify us of such

If you are not provided the Mini-Miranda at the beginning of the call the collector is quite possibly in direct violation under the Act. Kindly get their name, company name, and any other information you can to document and advise that they are violation of your rights under the FDCPA.

Collectors are not permitted to provide falsified or misleading statements in an effort to collect a debt. Mass produced collection letters not reviewed by an attorney prior to mailing are considered false and deceptive. False affiliations such as claims of being an attorney or connected to the government or IRS are also violations.
You always have the option to dispute the debt as well in the initial contact. Request they send written documentation to validate the debt. They then are required to send proof of the debt within ten business days. Upon receipt, you are entitled to dispute the debt in writing within 30 days. If they cannot provide proof of the debt within the allotted time it can then be disputed directly to the credit bureau for removal off your credit report.

Having your debts managed by a debt consolidation company can also stop harassing phone calls, creditor fees, and fix credit over time. For more information on how you can protect yourself from harassing collection tactics email me or visit our website. We’re a non-profit credit counseling organization recognized by the BBB as an A+ business. To speak to our certified credit counselors call 800-905-1563.

Build Your Credit Without Using Credit

Tue, 10 Nov 2009 04:23:57 GMT

Getting a decent rate on a mortgage or car loan depends on having a good credit score. Even rental applications or employment is contingent on credit. The ladder is to pay out the wazoo in down payments, security deposits, etc. While you need a good credit history to make your mark with the creditors, you don’t need plastic to do so. Start improving your credit without using credit. Take these steps in building your credit score without actually using credit and learn what to watch for in the future to avoid damaging your credit you’ve worked hard to build.

ONE: Check out a credit union for a secured loan. A secured loan, or shared-secured loan, is backed by money you place in a credit union savings account or certificate of deposit. Credit unions are usually easier to work with than the big banks as they take into account more than just your credit score when applying for a loan. They also look at things like a good checking history or that youre making an effort to deposit money into savings. Make sure the credit union you choose is reporting to all three major credit bureaus. Some credit unions only report to one of the three in an effort to save money.

TWO: Peer-to-peer loans. No, this is not about going fishing. Social lending sites like Prosper and Lending Club connect interested borrowers with individual investors. In this, investors bid on the borrowers applications and attempt to offer the lowest, most competitive interest rates to win the deal.

THREE: Getting schooled? Apply for a federal student loan. Being a student can be advantageous to your credit score if executed properly. Federal student loans do NOT require credit checks. The stipulation is that you have to be at least a part time college student and have submitted an application for Federal Student Aid. Stafford loans have a fixed interest of 6.8 percent and they do not inquire on your reason for financial need. Once the loan hits repayment mode, your on-time payments will help boost your score.

FOUR: Piggy back your partner. Become an authorized user on someone elses credit card. Once added, their history with that specific account is usually imported to yours with the 3 big bureaus. Pick someone who has decent credit or this could turn around and affect you negatively. Youll want to choose someone who has an account that has less than 1/3 of the balance due at all times and pays on time consecutively each month. All your asking is to become an authorized user, not actually use the card or receive a duplicate of the card for purchases.

FIVE: Co-signing. Four and five depend on relying on others so don’t go burning bridges or chasing waterfalls. Make sure these are solid relationships like a parent or spouse. A co-signer can help you lock into a loan you may have been denied for applying by yourself. In a co-signee arrangement, both parties are equally responsible for the debt. Make sure payments are made timely and consecutively to ensure a positive increase to your score on a monthly basis.

SIX: Pay to play. Establishing a secured credit card is now getting into actually using credit. If youre anti plastic and just looking to build your score, opt out of this option and save yourself a paragraph. Secured cards require you to make a deposit with the bank equal to the amount of credit youre looking to deposit. Some banks will allow you to receive a secured credit card for only $200 while others require a bit more to play the game. Youre basically taking your money and creating a credit account equal to the amount invested and paying interest on purchases. Some creditors will convert the account to a regular line of credit after 9 months or a year of positive paying.

SEVEN: The Charge card cha cha. Charge cards like American Express require the account holder to pay the balance in full every cycle. If you already have good credit and are simply trying to keep it going in that direction this is a positive way to ensure youre doing just that without having to use credit cards. If you have little self control you may want to think twice about charge cards.

Using these guidelines can keep you out of the credit loop while still playing the game. If you have already incurred credit debt it’s a good idea to pay it down asap and restructure your spending habits whereas the use of credit becomes obsolete.

Non-profit debt consolidation companies like Freedom Debt are around to provide consumers budget help and debt solutions. By consolidating your credit you can payback what you owe at reduced fixed interest rates, allowing your balances to drop faster than paying minimums at high rates. For more help on how to improve your credit or for a free budget counseling session or debt analysis contact one of our certified credit counselors by visiting our website freedomdm.org or calling, 800.905.1563. Were here to help.

My Plan to live Debt-Free - Progress Report - November 2009

Sat, 07 Nov 2009 04:13:34 GMT

Here is the current status:

Total Credit Card Limit = $7700.00 / Current Balance Owed = $7535.00 / Current % Debt = 97%

Yes, the current balance owed is up, however there were some hiccups. One being my health insurance has not sent my EOB this month to get reimbursed for my co-pays, I have had to use my cards for gas and food. I called yesterday to have them fax it over, which they did not. I will need to follow thru next week. However, with that amount reimbursed, I can put half of it towards this debt. Another hiccup is that my boyfriend accidently uploaded a Mal-ware program and I had to purchase a Mal-Ware remover, because the program I had did not catch it. NOTE: Do NOT use Trend... they are the worst. And the final hiccup, I did not pay attention to one of the cards was due the annual fee - $59.00 (OUCH!!!!!!!) Oh well -- this tells me a few things...

1) I need to be more dilligence

2) I need to monitor my cards better

3) I need to revisit my budget and see where my downfalls are.

Not a good month, but I am not discouraged. I am still hopefull. I have faith that I will suceed. I am not going to berate myself. I refuse to do that. I got myself into this mess - I can get out of it!

Non-Profit Debt Solutions With Certified Credit Counselors

Wed, 04 Nov 2009 02:25:28 GMT

Currently, the average consumer has a credit card with a credit line of at least $4000 and about a quarter of Americans admit to maxing out at least one credit card. Obviously, people are in need of simple solutions to sooth the burdens of being buried in debt. A non-profit debt consolidation program can very well be the answer most consumers can look to and afford for debt relief.

The average consumer today carries about 3-5 credit cards, each with their own outstanding balance, creditor terms and fees, due dates, and varied billing cycles. A non-profit debt consolidation organization negotiates these terms with each individual creditor to reduce interest rates, stop late, past due, over limit fees, and usually a lower monthly payment. In obtaining the best rates for the account holders, the non-profit org consolidates all the accounts into one monthly payment and the account holder then sends one payment each month to their consolidation agency.

This allows the consumer the following benefits:

Convenience of one monthly payment with a due date specified by the client.

A reduction in interest to a lower, fixed rate so that the debt can be paid back within a five year time frame, allotting the majority of the monthly payment each month to be applied to the principle balance versus the creditor fees.

Relief from harassing collection calls and creditor harassment.

Re-aging of accounts |certain creditors only |after a specified amount of time so the consumer can begin to report current |if they were past due | without paying the additional late fees.

Consecutive timely monthly payments to help improve credit rating over time.

A true non-profit organization begins their consultation with a free budget counseling session outlining and assessing your debt to income ratio on a monthly basis and reviewing assets versus liabilities. Some creditors require this information for enrollment in a consolidation program and others even base the interest reduction on said information. A non-profit agency usually receives better rates with the creditors on behalf of their clients as creditors acknowledge the educational process of the consultation and appreciate the non-profit ensuring a client not only understands their financial obligations, but ensures the programs success with the budget analysis, qualification process.

The mission of a good non-profit is not to charge you exorbitant fees for their services, but to get you out of debt and provide free educational information to ensure consumers do not make the same mistakes in the future. Remember that class in high school about how to manage credit card debt? Neither do we, because it didnt and still does not exist to this day. The American consumer is only partial to blame, so dont be too hard on yourself. And remember, you certainly are not alone in this credit debt debacle.

Here are a few good tips when shopping for a debt consolidation service.

Check the company out on the Better Business Bureau. You can usually search for a business by zip then name of the organization.

Are they listed with the BBB?

What is their BBB rating?

Do they have complaints?

What type of fees do they charge for their service?

Does the first payment go out to the creditors? Every payment less their nominal monthly fee should go out as received and cleared from client.

How much is the monthly service fee? This really should not exceed an average maximum of $5 per account enrolled.

Are there any pre-payment penalties if you are able to pay the debt off early? The answer should be no.

Are there cancellation fees? A true non-profit usually will not charge a fee for cancelling before completion but most creditors take it as an opportunity to reinstate your original rates, justifying it as a program default.

Debt consolidation is a great solution to getting out of debt and maintaining a positive credit score. However, consolidation is not for everyone. You have to be ready to stop spending on your accounts; credit cards are closed once they are enrolled in the program so spending on them is no longer an option. In addition, most creditors require that all accounts be enrolled into the program less one major credit card for emergencies. No, your Victoria Secret card cannot be left out for emergencies lol.

Good non-profits require their credit counselors to be certified and maintain their certification for continuing education as creditor guidelines and state practice regulations change frequently. They are also usually affiliated with an organization like ISO or AADMO. A true non-profit will also offer free budget help and a free debt consultation without any consumer commitment until they fully understand the program and recognize the potential savings to come with the enrollment. For more information feel free to call 800-905-1563 or visit our website, http://www.freedomdm.org

We are doing a research on facebook

Wed, 04 Nov 2009 02:07:34 GMT

We are doing a nationwide research on debt related problems. Will appreciate your help, if you can forward it to all your friends. http://www.facebook.com/pages/Debt-P...h/192570612068
We will also discuss about this community on our press releases.
Thanks for your help.

Free Financial Literacy Guide

Fri, 30 Oct 2009 03:45:39 GMT

We're offering our free financial guide by Fannie Mae to anyone who wants to verify their name and address to be mailed the free financial booklet. Your information will not be sold or used for any other reason.

Knowing and Understanding Your Credit is a 28 page financial guide to help consumers better understand their monthly finances and effective credit management. It provides credit report review advice and a mini financial addendum to help assess and create a household budget.

Our non-profit org is dedicated to helping consumers get out of debt and provide free financial information to anyone interested in betting their financial situation or is looking to improve their credit to purchase a home or vehicle in the next five years.

Please email me your name and mailing address for your free copy of Knowing and Understanding Your Credit to be mailed out with no obligation or further contact unless requested otherwise. Again, this is a free booklet and your information will not be sold or used for continued marketing efforts.

Freedom Debt Management, Helping America Become Debt Free One Household At A Time.

Cordially,

Michael Brazier
E: mikeb@freedomdm.org
P: 561.362.3029
F: 561.362.9130