Bad Credit Debt Consolidation

Posted by Admin | Uncategorized | Monday 8 March 2010 8:11 am

Are you afraid of bad credit? Then this article is perhaps for
all of you who feel bad credit is an issue. Let this be your
first step towards Consumer Credit counseling.

No doubt there are numerous bad credit personal loans but
hunting for a secured loan for bad credit is highly opportune.
Having a perfect credit card debt is an idealized conception.
More than one million borrowers last year failed to meet credit
standards last year. You must have read about perfect credit but
it is exceedingly improbable that you might have found someone
with perfect credit.

Bad credit personal loans are optimized for the benefit of the
loan borrower. Bad credit loans are categorized into secured bad
credit loans and unsecured bad credit Personal loans.

A loan borrower becomes the contender for bad credit personal
secured loan only when he is equipped to place a guarantee for
the loan amount. You don?t have to be an expert to understand
bad credit personal secured loans. Basically homeowners are
eligible to secured personal loans for bad credit. Secured
personal loans for bad credit are secured on your property.

A secured personal loan for bad credit is reliant upon the
borrower providing the collateral to ensure payment. This
implies that if you have placed your car as the collateral, then
in case of non repayment the loan lender will take possession of
your vehicle. Default in case of secured personal bad credit
loans can lead to drastic consequences. You can even lose your
property. That is one statutory warning you need to concentrate
on while taking secured personal loans for bad credit.

Bad credit secured personal loan is relevant for you if you have
missed some payments on a previous loan, got into mortgage
arrears, had a County Court Judgement against you or problems
with your credit cards. Sometimes circumstances go out of your
control and lead to bad credit.

Before taking out bad credit personal secured loans try to
assess you credit report. A credit report gives an account of a
person credit history and is prepared by the credit bureau.
Lenders determine the credit worthiness of the loan borrower
using the credit report. Your credit report is not encouraging
that is obvious since you have bad credit. However, being aware
of your credit report will enable you to prevent yourself from
abuse at the hands of loan lenders. Bad credit personal secured
loans borrower who is honest about his credit status is highly
considered while providing loans.

Secured personal loans for bad credit enable you to take a loan
amount ranging from

Tips On Avoiding Credit and Charge Card Fraud

Posted by Admin | Uncategorized | Saturday 30 January 2010 10:24 am

Credit and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of fraud, it can occur in other ways. For example, someone may use your card number without your knowledge.

It’s not always possible to prevent credit or charge card fraud from happening. But there are a few steps you can take to make it more difficult for a crook to capture your card or card numbers and minimize the possibility.

Sign your cards as soon as they arrive.

Carry your cards separately from your wallet, in a zippered compartment, a business card holder, or another small pouch.

Keep a record of your account numbers, their expiration dates, and the phone number and address of each company in a secure place.

Keep an eye on your card during the transaction, and get it back as quickly as possible.

Void incorrect receipts.

Destroy carbons.

Save receipts to compare with billing statements.

Open bills promptly and reconcile accounts monthly, just as you would your checking account.

Report any questionable charges promptly to the card issuer.

Notify card companies in advance of a change in address.

Don’t:

Lend your card(s) to anyone.

Leave cards or receipts lying around.

Sign a blank receipt. When you sign a receipt, draw a line through any blank spaces above the total.

Write your account number on a postcard or the outside of an envelope.

Give out your account number over the phone unless you’re making the call to a company you know is reputable.

Reporting Losses and Fraud If you lose your credit or charge cards or if you realize they’ve been lost or stolen, immediately call the issuer(s). Many companies have toll-free numbers and 24-hour service to deal with such emergencies.

Five Things You Need To Know Credit Card Debt Settlement Services

Posted by Admin | Uncategorized | Wednesday 29 July 2009 8:57 pm

Credit card debt settlement is becoming increasingly popular. It’s no wonder, with more and more consumers racking up thousands of dollars in debt. However, credit card debt settlement isn’t always everything it’s cracked up to be. If you’re thinking about signing up with one of the many credit card debt settlement services out there, there are some things you really need to consider.

1. Understanding the Basics

First, let’s make sure you understand what credit card debt settlement is, and what it is not. Credit card debt settlement is not about your creditors writing off your debt without you paying another penny. With credit card debt settlement, you do have to pay a one-time lump sum and in exchange for this amount of money, your credit card company writes off your debt as being paid in full.

So how much will you have to pay? This all depends on how much money you owe and your personal financial situation. In most instances, the amount of a credit card debt settlement is somewhere between 30 and 50 percent of the original amount of the debt.

If your debt is $3,000 you can expect to pay somewhere between $900 and $1,500 in a credit card debt settlement. That isn’t, however, written in stone. In rare instances a settlement can be as little as 5 percent of the balance or as much as 95 percent.

2. Want Some Pie In The Sky?

At this point in time, credit card debt settlement probably sounds good. I mean, who wouldn’t want to pay off their debt with just a fraction of what they owe? Unfortunately, it’s not always as easy as the credit card debt settlement companies say it is.

First and foremost, a credit card debt settlement service can’t promise you anything until they have it in writing from your creditors. In fact, some debtors don’t even qualify for credit card debt settlement, so a company giving you promises without some in-depth analysis is a big red flag. If you call XYZ Debt Settlement and they tell you they can get your bills paid off for 20 percent of what you owe, you’d better hang up the phone and call someone else.

A legitimate credit card debt settlement service will be up front about the fact that unless they have pre-arranged debt settlement agreements with your creditors, they won’t be able to quote you any firm numbers until they have negotiated on your behalf.

3. The Credit Factor

Credit card debt settlement can (and probably will) affect your credit. That doesn’t, however, mean that it’s going to affect it negatively.

If you’ve had pretty good credit up until now and you don’t have many late payments in your credit history, your credit score may take a dive after you arrange for credit card debt settlement. That being said, if you have many outstanding accounts in default with numerous late payments, credit card debt settlement can actually help improve your credit score.

4. You Need The Cash

Before you get all gung ho about credit card debt settlement, remember that the money has to come from somewhere. When you negotiate a credit card debt settlement, in most cases the credit card company is going to expect the amount you negotiate in full.

If you owe $3,000 and you settle for $1,000, you’d better have that $1,000 on hand to give to the credit card company. If you don’t yet have that $1,000 yet, don’t negotiate your settlement until you do.

I always suggest scraping together enough money to cover fifty percent of the balance owed. If your settlement ends up being less, keep that extra money in savings or use it to pay down other debts. If the credit card company wants more, tell them you’ll send them what you have and ask if you can pay off the rest of the settlement over 90 days.

5. The Fee Issue

When it comes to credit card debt settlement services, you are going to pay a fee for the services they provide. Considering that most consumers can’t negotiate a debt settlement as well as some of the reputable services, the fee may well be worth it.

That being said, if a credit card debt settlement service asks you to send them a fee up front and before they have actually settled your debt, don’t fall for it. Unfortunately, there are some scams out there and when someone wants you to send them money without any guarantee on their part, it’s usually a rip off.

While credit card debt settlement can be a bit time consuming, confusing and sometimes even stressful, it is a great alternative to bankruptcy. If you find yourself in the position of no longer being able to pay your bills, a credit card debt settlement may indeed be the solution you’ve been looking for.

Credit Card Debt Settlement Letter

Posted by Admin | Uncategorized | Tuesday 28 July 2009 11:02 am

A credit card debt settlement letter can be a worthwhile option to pursue in the quest to eliminate debt. But what exactly is this type letter and will it be useful for you?

For starters, let’s discuss what it’s all about.  As it sounds, it is essentially just a letter that is mailed to your creditor (whether it is a bank or credit card company) requesting that they lower the amount of outstanding debt that you (the debtor) owe.  Typically, the debtor will make an offer that they will be willing to pay in full (although it is not unheard of to settle on a monthly payment plan) which is lower than the actual outstanding amount they owe.  Often times, the creditor will then make a counter offer somewhere in between the original debt settlement amount and the actual amount owed.  Once an agreement is reached, the debtor then pays the negotiated amount in the time frame agreed upon.

This may sound too good to be true, so how does it work?  Lending institutions such as banks and credit card companies exist for one purpose which is to make money.  When they receive credit card debt settlement letters, they see it as an opportunity to collect money which otherwise they may never see.  For example, if the debtor goes into bankruptcy, the card company will probably never be able to collect the money they are owed.  By responding to the request in the letter letter, they are essentially a negotiating with the debtor.  After all, some money is better than no money at all in their eyes.

There are some caveats to writing this letter that should be mentioned here as well.  Many people in significant debt opt to communicate through an attorney rather than directly contacting a creditor.  The benefits to this, despite the obvious fees involved, are that the attorneys are very familiar with all of the legal and tax implications associated with debt settlement.  For instance, they know that difference between the original amount owed and the amount settled upon is considered taxable income by the IRS.  Anyone considering sending a letter would be wise to at least consider consulting with a debt or tax attorney first.

Finally, there are those who would make the case for calling your creditor rather than writing.  Calling allows you to make direct contact with the company, with no worries about the letter being lost or placed in the trash can.  Whatever you decide, be sure to research all of your options prior to drafting and sending a credit card debt settlement letter.