How Did My Money Disappear?

Debt consolidators will work with your creditors in order to get an affordable monthly payment for you. You will then make a single payment to the debt consolidator. They will create an account for which these payments will be deposited. Your creditor's payments and their fee will be withdrawn from these accounts easily. All you will have to do is make the single monthly payment.
Many people are desperate to rid themselves of their accumulated debt. This is why they believe, whole-heartedly, that their deposits that are being made to a 3rd party will be safe under the FDIC insurance. Your debt consolidators will inform you of all this when you are looking to possibly sign-on with them. The only problem is that they will leave out the part that should the bank fail you will not actually be insured.
Debt consolidation companies do not generally have a very good reputation, and for good reason. Many of these so-called debt consolidation companies will seem to want to help you out and will set you up with this 3rd party account to make your deposits. The only problem is that most people run into issues with the debt consolidators not doing what they promised, them closing up shop and simply filing for bankruptcy. This leaves people wondering, "How did my money disappear?"
It can be devastating and rather frustrating searching for a way to find your money. Most people are only able to find a way after employing the help of legal representation. It is important to research your options first, but the only people who have found success have had to do it legally.
Trust company is a rather ironic name for these third party account guards. They will do whatever is in the best interest for them. When you discover that your money is not being distributed properly in-order to cover you debt you will most likely be rejected when you request to withdraw you funds from the trust company. They will claim that they are in charge of protecting both you and the debt consolidator and not just one of you as their reasoning.
Debt consolidation companies and trust companies that get involved with them know exactly what they are doing when they create these accounts. They know that it will be easy to move on or avoid paying back these funds, or that they will be able to justify how much is owed to them in fees. They also know that it is unlikely that the customer will be able to afford the court costs associated with being able to sue their company in order to acquire their lost funds. This really makes almost the perfect scam.
How can this nightmare be avoided? The answer is simple. Don't get involved with a debt settlement company that requires you to send them money to deposit in a "trust" account!

Melvin R. Singleterry, owner of is a practicing attorney who specializes in Consumer Debt Law including credit card debt negotiation, debt reduction and debt settlement, and unsecured debt relief. Singleterry, who holds Bachelor and Master of Arts degrees from Oklahoma State University and a Juris Doctor from The University of Oklahoma, has practiced in both State and Federal Courts. He has been a trial attorney in both civil and criminal cases and has served as a Court Appointed Trustee in Federal Bankruptcy Court. His practice has included criminal law, corporate law, contracts, personal injury, family law, and consumer law, etc. He has represented consumers, corporations, banks and financial institutions.

Learning How To Be Responsible With Your Money And Get Rid Of Your Debt

What if:

You could get Free Money from Government Grants to get out of debt or to buy Real Estate.
Claim 100% legitimate Tax Deductions and get money back from Previous Years.
Arrange Credit Debit Consolidation for your credit cards and other unsecured debts.
Get Corporate Credit to get cash quickly.
Get Credit Restoration-improve your FICO score and clean up your credit report
Learn techniques for Online and Offline to earn money from home.

Perhaps you're thinking about a consolidation loan to eliminate your debt But taking out another loan to pay off your existing debt is not the best option. Here are some useful tips to pay off your debts without taking out a consolidation loan.

1. Formulate a budget to curb your unnecessary expenses.

But first, review your way of handling income and expenses. If you have incurred a large amount of debt, then try to save a considerable amount from your income to pay it off. Curtail unnecessary spending, particularly if you have a flamboyant lifestyle. Otherwise, you will not achieve financial freedom.

2. Prepare a list of your debts and calculate the total amount you owe to your creditor(s).

Add the penalty charges to the principal balance to calculate the exact amount you owe. Pay off your high interest debts first so that you can save money on the interest rate. Once you eliminate these loans, you can start working on paying off your low interest debts.

3. Credit cards are designed to lure you into spending more money than you have, and push you further into debt.

If you use cash, then you will be forced to spend within your means.

4. Be serious in paying off your debts.

If you do not pay consistently and with as much money as you can afford above the set amount for each monthly payment, the accruing interest on the outstanding amount will make the overall debt increasingly unaffordable. Therefore, it is advisable to pay off your debts as quickly as possible. Open a savings account and set aside a portion of your income each month for paying off your debts.

5. Negotiate with the creditors to lower the amount of debt you owe.

Contrary to what you may believe, you can talk with your creditors regarding your financial situation and make a proposal regarding settling your debt. If your creditor refuses your offer, then mention the possibility of declaring bankruptcy. If you file for bankruptcy then the creditor will not be able to retrieve the owed amount, and may be more amenable to accepting your offer.

Each of the above mentioned tips will help you avoid taking out a consolidation loan. Above all, establishing and maintaining good saving and spending habits will allow you to pay off your loans and avoid creating new ones.

How Parents Can Help Their Children Become Financially Literate

If you are a parent and you are looking for information that you and your spouse can use to teach your children on how they can become financially literate, then you have found the right article. Below, we have discussed three pointers that you can use in training your kids to handle their personal finances. We believe that by employing the following tips, you can have the assurance that your children will grow up to become responsible and financially stable individuals.

Pointers for Training Your Kids

• Teach your children how to come up with a budget. One of the most important lessons that you need to teach your kids is how to come up with a personal budget. To do this, you need to have sufficient and accurate information about the finances of your household. Determine how much cash you and your spouse earn and list down all the expenses that your family has incurred for the past month. Then demonstrate to your children how you allot funds to cover each expense. You can do this using the "envelop method" - where you will mark each envelop with the items that you spend cash on and place the funds that you have allocated for each household expense inside each envelop.

After this, you can then ask your kids to do the same with the allowance that they receive each week. This way, they will have the opportunity to apply the concepts and techniques that you have imparted to them.

• Stress the importance of saving up for the future. Stress to your youngsters the value of saving up for their future. Try to explain to them how you were able to finance an urgent need, such as a medical emergency, by means of your personal savings account. This way, they can understand why it is important for them to set aside funds from their weekly allowance so that they can have and use cash in case of emergencies.

Another strategy that you can use to encourage your kids to save is by letting them save for the items or gadgets that they wish to buy and use. Resist the urge to buy your kids all the things they want and instead let them figure out how they can acquire the items they need through the wise management of their finances. In so doing, you can train them to think analytically and to value and handle their personal finances in the most responsible way they can.

• Sign them up for student credit cards. You can also decide to let your children use and manage student credit cards or prepaid card accounts. After all, these card programs can serve as excellent tools in training your youngsters to manage cash and even lines of credit.

Still, before you sign them up for student credit cards, you need to spend considerable amount of time discussing with them the concepts involved in managing lines of credit. Make sure that you explain how credit cards work, what interest charges are all about, and how their credit card activities can affect their credit history. This way, you can equip them with the right information that can help them become responsible and financially literate individuals who are sure to succeed in life.

Credit Management 101: Repair Your Bad Credit Score

It is now a reality that you have to face - you need to repair that bad credit score! It might be because of too many or too high an amount of loans you have applied for just to satisfy your wants and lifestyle. Or, you may have overused your credit cards because of impulse buying.

If you are looking for ways to repair your bad credit score and want to know more on credit management, continue reading this brief article.

1) If you have borrowed money, start settling what you owe. You have to pay back your debt. You must to face the fact that you need to follow a debt management program. You can start by paying your existing debt and stop creating more debt. One way of starting a good credit standing - face your financial obligations! Be a debt-free person immediately.

2) Stop splurging too much through swiping your overly tired credit card. You have to live only according to your means. Do not spend on what you cannot afford. Before long you will notice, you are on the path to financial recovery. Your bad credit days will be over and debt will be just a thing of the past.

3) Account where your money goes. You really have to follow a system that will monitor all your spending. You have to show yourself where you have spent your hard earned money. This is one of the best ways of knowing if you are living within your means or you are spending beyond what you can afford. In order for you to start living with a good credit score, you have to live within the basics or essentials that you can afford.

4) You need to search for ways to can increase your chances of earning more money. You can have part-time jobs or home business that you can do during your spare time. For instance, you can do writing jobs as part-time that will not hamper your regular working hours.

5) Discuss your options with your creditors. This is one of the challenging aspects of learning credit management. It is best to speak and discuss with them. Do not belong to debtors who keep on hiding from their creditors. If you let your creditors feel your presence and you are not running away from them, they will understand your situation. It will show that you are willing to pay but still figuring out how. There's a big difference between someone who is willing to pay but having a hard time to pay, compared to someone who is not willing to pay.

Things To Consider Before Choosing A Credit Card Debt Relief Program

Debt is an integral part of our lives. It is important to manage these debts at an earlier stage. If you do not manage your finances efficiently, you would find yourselves neck deep into debts. Once you get into serious debts, it becomes difficult to get your financial status onto the right track. However, it is not the end of the road. Today, you can opt for a good credit card debt relief program and efficiently negotiate with your credit agencies for a debt settlement program.

A credit card debt relief agency is a company which has expertise in analyzing your credit issues. These debt counselors offer the right strategy to negotiate with your credit agencies to come up with an amicable repayment plan. However, with thousands of credit card debt relief agencies available in the market, it is not easy to choose the right agency for your financial needs. Moreover, there are several scam agencies which try to steal your hard earned money. Here are few things to consider while choosing the best credit card debt relief company for your financial crisis management.

Firstly, the credit card debt relief agency should be registered with the association of debt settlement companies, TASC. This is a trustworthy organization which is carrying out its operations from a long time. Secondly, check the history of the company which is offering the debt settlement program. Go online and check the company's website so that you can understand the company's work history, work nature and other services. Managing your credit issues is very crucial from your point of view. So make sure that the company you choose has a good track record.

Thirdly, search for positive reviews of the company. You can read these reviews on the internet. Make sure that there are no negative complaints from the previous customers. Fourthly, compare the payment terms of each company. Some of them charge upfront fees while others charge you on a monthly basis. Making an upfront payment can be risky at times, as you don't know how much debt would be reduced. However, if the company has a good reputation in dealing with debt issues in an efficient manner, you can go ahead and make an upfront payment. Getting out of debts is not an instant process and you need to be patient. Act wisely and choose the best debt relief agency to come out of your debts in an efficient manner.

A Financial Guide for Welcoming the New Year With a Bang

Are you interested to know which important financial activities you need to do before the year 2011 ends? If you are, then we suggest that you read the remainder of this piece. Below, we have discussed five important activities that you need to perform so that you can welcome 2012 with a bang!

What to do before 2012

• Order copies of your credit report. Contact the three credit bureaus and request for copies of your credit report. This way, you will have the chance to determine how much money you still owe your lenders and card issuers. At the same time, this activity will provide you the opportunity to validate the credit and payment transactions listed in your credit report.
In case you encounter erroneous or fraudulent items, then you need to file a letter of credit dispute with the firm that supplied you with the unreliable document. In so doing, you can alert the personnel of the credit reporting agency to investigate your claim and make the necessary changes to your credit records, especially if they discover that indeed they have committed mistakes in updating your credit file. Keep in mind that by having an error-free credit report, you can surely protect your financial prospects for the coming year.

• Settle your financial obligations. If you have the means, then we encourage you to pay off all your financial obligations before the year ends. Try to limit the funds you will spend this holiday season so that you can allocate more cash to retire your outstanding debt. This way, you can have a clean slate by next year which can help you qualify for affordable lines of credit.

• Establish a savings fund for 2012. Since we do not have the ability to predict what will happen in the future, it is a good practice to prepare funds for the coming year. You can do this by setting aside funds from your annual bonus and putting it directly to your personal savings account. This way, you will have the means to finance an urgent need, even without applying for a credit account.

• Come up with a better financial plan for the New Year. If you think that your budget for 2011 was too lax, then you may need to spend some time tweaking your budget for 2012. Examine very closely your income and monthly expenses. Consider each item and look for expenses that you can cut down so that you can allocate more funds for important bills and purchases. After doing this, you can soon develop an excellent financial plan that will serve as your guide in handling your finances next year.

• Set realistic short- and long-term financial goals. You can also benefit from setting realistic financial goals for 2012. Consider what financial milestones you would like to achieve next year. Are you planning to buy your first car? Are you looking forward to starting your own business? Do you have plans to start a family? Keep in mind that your short- and long-term goals will help modify your activities, especially the manner by which you manage your personal finances. This way, you can increase your likelihood of attaining the targets you have set for yourself.

How to Get Your Credit Counseling Certification

The average American household has over $14k in credit card debt, and with some of those Americans their credit card debt is in the six-to-high-five figures, so it's no surprise that millions of individuals are finding themselves in a heap of credit card debt and are unsure what do with themselves. Obviously paying the minimum on their surmounting credit card debt is like putting a band aid on a hemorrhaging wound but most consumers have no idea in what they need to be doing as far as their credit card debt is concerned.

Due to the fact that the sheer number of those in trouble with credit card debt is growing, the demand for professionals that can help these consumers is growing simultaneously, therefore the outlook for those in the credit counseling field looks bright.

If you are looking to become a credit counselor getting your credit counseling certification is the first step in that process. Credit counselors will get hired by multiple types of organizations, ranging from non-profits, to churches, to debt solutions organizations and the list goes on. Prospective employees should be leery of any organization that would hire them without a credit counseling certification, most credible credit counseling companies only hire candidates with a credit counseling certification.

Getting Your Credit Counseling Certification

Getting your certification is a pretty simple process, there are multiple organizations that offer these types of programs online and offer some sort of correspondence courses, but if you learn better by live course work than there are certification classes that you can enroll into. For most of those seeking to be credit counselors we will be taking our classes online, some programs have some sort of physical text books others are strictly through online coursework that you will be going over online and most programs do not last longer than 8 weeks. At the end of the 8 weeks, most certification programs offer an exam that you must pass before you receive a certificate, once you have passed your receive your official credit counseling certification and you can start your search to become a credit counselor.

Work as a credit counselor is very fulfilling and you see the fruits of your labor daily by helping the down-trodden and debt laden consumer out of financial crises. It's not easy work by any means, and sometimes credit counseling work can be disheartening due to the fact that there are going to be some people that you simply can not assist, but in the long run you are going to be able to help more people than you turn down and you can leave the office feeling like you've contributed something significantly positive to society.

Credit Card Debt - Stop Using Credit Cards If You Can't Handle It

Credit card debt is a major problem in the western world especially in America, people are caught up with making purchases that are not practicable as a result inviting their worst enemy - debt. Are you aware of families that have broken up or individuals going into depression because their debts accumulated to a point where their paycheck couldn't even cover the interest rate?

In order not to become a victim and even if you are one, this article is aimed at exposing you to ways of managing your debts to establish a strong financial standing.

In a situation where you find yourself really deep in debt the solution should be to refrain from using your credit cards to make purchases or better still stop spending, stop piling up debts for yourself. You ought to stop spending when you know that you don't have the cash at hand. With access to credit cards it is relatively convenient for people to splurge today not realizing the financial burden they will have to face in coming days. Even if you have to use credit cards, let it not be something you use often but once in a while, mainly for emergencies.

Another important method in financial planning that people often fail to undertake is creating a budget plan. For you to really be free from credit card debt you need to create a budget plan. Drawing up a plan helps you to draw a line between your wants and your needs and also between your needs and your means. This plan will help you get your priorities right, and will help reduce frivolous spending. Allowing your budget plan to work for you changes your way of thinking and spending and this will help you lead a responsible life of financial freedom. It will also help you identify those areas of your sending habit that are wasteful and unnecessary.

What is Credit Card Debt Counseling?

This is a program that enlists the help of a professional debt counselor whose role is to help you negotiate your debt with the credit card company with regards to possibly reducing your current credit balance. They also help you improve your financial management ability to ensure that you put an end to your debt cycle. Before you decide to go with a particular debt counseling program, you must do your due diligence and research because there are a lot of fraudulent companies out there looking to prey on your desperate situation.

The internet is a good place to start because it's free and you get access to a number of reputable agencies to choose from. The first thing you want to be aware of is your credit score because this will determine your future credit standing. You can get a free debt analysis online these days, so make a decision today to get out of debt.

Debt Settlement Vs Credit Counseling

If you are having a hard time to make payments towards your debts, then it's time for you to look for debt relief. Two most common debt relief options for indebted people are debt settlement and consumer credit counseling. But many people get confused when it comes to choosing between these options. It is worth mentioning that choosing debt settlement or credit counseling would depend on your debt situation. Let's discuss it in detail.

What is debt settlement?

In a debt settlement process, you negotiate with your creditor to reduce the principal balance. You would need to pay a lump sum to the creditor in return. Note that your creditor won't even consider you for settling your debt if you have not defaulted on the loan.

Why should you settle your debt?

You would save a lot of money with a successful settlement. Most debtors save 50% or even more, especially when they hire professional services.

Since you need to make one or few payments to the creditor, you become debt free quite fast. In fact, the process of settling your debt is a faster process than debt consolidation and even bankruptcy.

Disadvantages of debt settlement

The problem with settling debt is that it can reduce your credit rating considerably. Of course, it is possible to rebuild your credit over a period of time. Also, the creditors may sue you during the settlement process. All settlement companies will advice you to stop making payments to the creditors so that the creditors agree to negotiate debt. In such a situation, the creditors can initiate legal action against you (though most lenders won't).

Understanding consumer credit counseling

If you are not too comfortable with your current payment plan, you can approach a credit counselor to negotiate a better payment plan on your behalf. The agency would negotiate interest rates and monthly payment with the lenders. It is also called debt counseling.

Pros and cons of consumer credit counseling

A good thing about credit counseling is that it won't bring down your credit score. Nonetheless, debt counseling won't help you if you are looking for a fast solution. Counseling services essentially stretches the repayment period to lower the monthly installments.
What's the right option for you?

With debt settlement, you save a lot of money. If you opt for debt counseling, you will end up paying more than your original debt. But debt counseling can be a better choice if your debt situation is not acute. This is because it won't affect your credit rating. If you are immersed in debt, settlement is your right option.

How to Improve FICO Scores on Your Own

As a certified debt elimination specialist, one of the most common concerns I encounter from my clients is with regards to their individual FICO scores. In this day and age it is not an exaggeration to state that this simple three digit number truly dictates ones financial future so therefore such concern is merited indeed. Lately a common inquiry from these clients is whether I can suggest a good credit score counseling service so that they can be provided with a detailed appraisal of their credit situation. With that information in hand they could then initiate a plan to either maintain a high credit score or improve it if necessary.

The good news is you don't have to hire anyone to accomplish what you can easily do on your own. To illustrate let's examine the case of one such client of mine who we'll refer to as "Sally".

About four years ago "Sally" purchased her first home. Back then she recalls that her three credit scores ranged from around 730 up to 750.

Since that purchase she has not missed or even been tardy on any of her mortgage or credit card payments.

"Sally's" concern stems from the fact that over the past several years she has opened six new credit cards so that she could take advantage of the low introductory interest rates and the other perks that came with them.

Her basic question centered on whether she should close these six relatively new credit card accounts. While how FICO scores are computed is a closely guarded secret, my experience is that opening a new credit card account will result in about a three point debit. While by itself this minor 3-point "ding" is rather insignificant on its own, it should be pointed out that if you open several accounts in a short period of time like "Sally" did, the damage can be multiplied significantly.

However, you can "stop the bleeding" so to speak by handling this new credit responsibly by simply making your payments on time and never using more than 30% of your available credit line. In fact, if you want to repair this "wound" quickly and possibly even improve your score then never exceed 10% of your credit line.

I also insisted to "Sally" that if she truly wanted to perk up her scores she should refuse to accept any more offers to open new accounts, no matter how low the rate or how attractive the incentives. Most importantly I shared with her that she shouldn't close any of the six accounts she was concerned about because doing so would probably do more harm than good.

Most importantly however I shared with "Sally" that if indeed she was using her credit as responsibly as she indicated then she probably has very little if anything to worry about, especially since she wasn't planning on any large purchases such as a new car or a move to a new home anytime soon. But "Sally" admitted that as a teacher she's used to grading others and really wanted to know what her credit score "grade" was so that she could establish a benchmark.

With her goal clearly defined I advised "Sally" that she should ignore all those radio, TV, and Internet advertisements regarding this type of service because it's a well-known industry "secret" that the bureaus themselves provide these services with scores that are, more often than not, nowhere close to the same FICO scores that are used by most lenders.

Therefore, to get the truest perspective of ones standing with the credit bureaus I recommend MyFico.com. To the best of my knowledge, MyFico.com is the only place where you can buy your actual FICO scores from all three major credit bureaus.

Last I looked this service will cost about $50 but along with your scores you'll also receive the three actual credit reports along with "reason codes" that informs you as to what's hurting and helping your scores.

The bottom line is simple: By using your credit responsibly as illustrated above and utilizing the MyFico.com service if you so desire, like "Sally" you'd be able to enjoy the security and peace of mind of knowing exactly where you stand in the eyes of any potential lender.

Important Questions To Ask A Credit Counselor

When struggling with financial hardships finding professional advice can be difficult. There are plenty of credit counseling agencies that claim to offer services that best suit the customer, when their mission is to sell you a service you do not need. It is important to obtain credit counseling services from a reputable agency that provides unbiased service geared towards the client. To ensure you obtain financial advice from a trustworthy company, check to see if the company is recommended by The United States Trustee Program. They provide credit counseling and debt management resources that can help you make an informed decision. There are several questions you should ask your credit counselor when seeking debt management advice.
Does your company meet the requirements of the law? New laws require anyone filing for bankruptcy to attend a credit counseling service from a nonprofit credit counseling agency. Some agencies misrepresent themselves as nonprofit agencies, if they are legally considered nonprofit they will meet Section 501(c)(3) of the Internal Revenue Service Code. It is also a good idea to check with the Better Business Bureau to make sure they are an accredited company.
What services does your company offer? It is important to find a company that offers many debt management services, such as credit counseling courses, budget counseling, debt negotiations, savings and debt management courses. Be suspicious of any company that offers a debt management plan as the highest priority service, as these often result in being locked into a repayment plan without considering all the options available. In addition, watch out for companies that guarantee they can erase your negative credit history. Debt management services can only put you on the track to catching up on late payments, which will repair your credit over time.
What are the qualifications of your credit counselors? Credit counselors are not salesman. They are providing a service to evaluate your financial situation and review debt management options. Credit counseling agencies should employ educated professionals that obtained their credentials outside of the agency. Be wary of any company that trains their employees "in-house". A professional credit counselor should hold a licensure as a certified public accountant, lawyer or certified financial planner.
How much will your services cost me? Many organizations are funded through government money or contributions by clients. At times, there are small fees for certain credit or debt management courses. Inquire about the cost of these services in advance. Ask if there are any initial or recurring fees, and get a quote in writing. Do not utilize services from any company that refuses to help because you cannot pay.
What options are available for me? A credit counselor should review all of your debt management options with you and be able to answer any questions you may have. Determine which credit counseling solution best suits your current financial needs. Credit counseling services have lots of free information that can provide you with guidance through your financial hardship. Consider the details surrounding your financial troubles, such as the amount of income lost, how long the financial hardship is expected to last and whether there are any funds available to repay creditors. Some credit counselors may suggest a debt management plan, which outlines the terms of repayment with your creditors. Make sure you can meet the terms and conditions of the repayment plan. Don't agree to the plan if you cannot afford to pay for it in a timely manner. Other options may need to be considered if you don't have the financial means to repay your debt in a timely manner. If you are considering bankruptcy, contact a qualified bankruptcy attorney to begin the process to determine if bankruptcy is right for you.

The Lee Law Firms aims to help local residents resolve their debt issues and achieve a financially healthy future. They provide high quality legal representation that helps lower monthly debt payments, and stop wage garnishment, foreclosures, calls from creditors and repossessions. The Lee Law Firm bankruptcy attorneys have many years of experience in all aspects of Chapter 7 and Chapter 13 Fort Worth Bankruptcy.

The Best Way to Repair Your Credit

You have a legal right to credit repair, guaranteed by the Federal Fair Credit Reporting Act. This law was approved to correct and counteract the misdeeds of the credit reporting bureaus. More complaints are filed against credit bureaus than against any other kind of business.

The credit bureaus have declared war against credit repair firms. They pass judgment on them in the media and they send out literature that is biased against credit repair to everybody they think is getting assistance in repairing their credit. Credit reporting bureaus, like any other type of corporate entity, are mainly concerned with shielding their profits. Following up on the complaints of consumers costs them money. Since the credit reporting bureaus will do anything they can to stop consumers from progressing with the credit repair procedure, you, as a consumer, need to do whatever you can to shield your own interests.

Credit reporting bureaus would like you to think that you can quickly and easily repair your own credit because they recognize that you won't ever be able to yield the same results by yourself as you might with professional help. The forms and web pages they give you to use are created to be unproductive because the bureaus do not want you to succeed in repairing your credit.

When you talk to employees of the credit bureaus or credit grantors, you will undoubtedly be told that all negative entries MUST appear on your report for 7 1/2 years before they are automatically taken off. However, the law does not say that. The law only says that negative entries CAN remain on your credit report for UP TO 7 1/2 years. The fact is that the credit bureau or the credit grantor can decide to take off any negative entry at any time. In fact, tens of thousands of negative items are removed every day.

Most big credit repair companies are staffed by costly attorneys. Their only job is to send out letters about your case to the credit bureaus. You are charged on a monthly basis for this, so there is little incentive for the attorneys to rush the process. It could take years to see results from these corporations.

Simply paying off a debt won't make the negative entry vanish from your credit report. However, there is a correct procedure for paying off debts, including collections and past due accounts. It is possible to have your negative entry updated to positive status by making this a condition of acceptance of your payment.

Even a few negative items can be destructive to your credit report for the reason that they will maintain a strong, downward pull on your credit score which is the number lenders use to accept or deny credit to would-be borrowers. These items HAVE TO be taken off your report if your credit score if it is to progress into positive territory. With even a few negative items on your report, you will pay a MUCH higher rate of interest on your loan, if you get the loan at all. While certain items are more difficult to get erased than others, there is no type of negative item that has not been repaired.

Credit bureaus will try to discourage you from trying to repair your credit by telling you that even if you are successful in removing a negative item, it will just re-appear on your credit report later. The fact is that the law now requires the bureaus to notify you in writing if they make a decision to re-report any item that has been deleted. Since this law has been in place, there has been a big drop in the re-reporting of negative items because the bureaus recognize that by doing this, they may be exposing themselves to costly lawsuits.

Finally, you should NEVER try to repair your credit report by applying for a new Social Security number. This is extremely illegal and may send you to jail. Also, avoid filing bankruptcy as this will be destructive to your credit rating in the future. Every single credit item you attach to your bankruptcy will be marked "included in bankruptcy." Because so many items will end up containing the word "bankruptcy," it now will be very difficult to erase them all. Bankruptcies remain on your credit report for ten years if not successfully deleted before then. By filing bankruptcy, you've just made it a whole lot more difficult to re-establish good credit.

Improve Your Financial Situation With Debt Counselling

Managing and budgeting your finances can be just straight up daunting and a nightmare. It always seems like more is going out than what's trickling in when it comes to money. As with anything though, and though it's hard to admit, there's always somebody who can manage things more efficiently than you can and that's why there are debt counsellors.

Some people are more organised and frugal with their money and can easily balance payments such as credit cards, bank loans, auto loans, medical bills and mortgages. Those are the people with excellent credit ratings usually and are able to be obtain more credit down the road. However, not everyone can manage it quite as well and that's how we find ourselves in the midst of a financial disaster with debts adding up and we spend money that we simply don't have. This can haunt us and our credit ratings, making it nearly impossible to gain more credit because we're already too far in over our heads. It happens and that's life. To help start with a fresh, clean slate takes a lot of work and sometimes when we are so overwhelmed, we find ourselves looking to others for assistance who are experts in helping us to rebuild our record and have stronger credit ratings.

Debt counselling can usually be obtained from a non-profit organisation but make sure they are what they say! Some agencies are actually out for profit only and can turn your finances upside down, putting you in the midst of an even worse financial disaster. These for-profit credit counsellors may promote themselves by offering outrageous promises and upfront fees are sometimes just out for the money rather than to help you and before you know it, you are scammed. And often, the money that you paid in to obtain their services initially just disappeared into thin air and you are nowhere near closer to financial stability. They may not even be experts at financial advice, just good at reeling people in and trapping them. Look out for bad reputations and suggestions they give you that seem a little shady.

Non-profit agencies do usually provide the advice they were intended to. They will help you to re-establish your finances through a long and organised process. Improved credit won't happen overnight. It could take years of steady payments but you will soon be able to learn the discipline it takes to stand on your own two feet. Instead, be patient and listen to their advice when making financial decisions and payment plans. So, obviously, steer clear of anyone that promises an easy, convenient way out of your financial burden.

High quality debt counselling services not only offer one-on-one customisable advice based on your particular needs, but also may offer classes and other materials to educate yourself on better money management and eliminating current debts and will teach you how to form a budget and stick to it, keeping in mind your recurring payments with creditors and lenders. This will eventually enable you to make these decisions for yourself for the rest of your life, giving you the capability to make sound financial plans and anticipate positive outcomes. The education that they provide you will not be a simple fix but will instead, provide you with the information you need down the road to continue to proceed with confidence when dealing with your debts and budgets all on your own.

How Did My Money Disappear?

Debt consolidators will work with your creditors in order to get an affordable monthly payment for you. You will then make a single payment to the debt consolidator. They will create an account for which these payments will be deposited. Your creditor's payments and their fee will be withdrawn from these accounts easily. All you will have to do is make the single monthly payment.

Many people are desperate to rid themselves of their accumulated debt. This is why they believe, whole-heartedly, that their deposits that are being made to a 3rd party will be safe under the FDIC insurance. Your debt consolidators will inform you of all this when you are looking to possibly sign-on with them. The only problem is that they will leave out the part that should the bank fail you will not actually be insured.

Debt consolidation companies do not generally have a very good reputation, and for good reason. Many of these so-called debt consolidation companies will seem to want to help you out and will set you up with this 3rd party account to make your deposits. The only problem is that most people run into issues with the debt consolidators not doing what they promised, them closing up shop and simply filing for bankruptcy. This leaves people wondering, "How did my money disappear?"

It can be devastating and rather frustrating searching for a way to find your money. Most people are only able to find a way after employing the help of legal representation. It is important to research your options first, but the only people who have found success have had to do it legally.

Trust company is a rather ironic name for these third party account guards. They will do whatever is in the best interest for them. When you discover that your money is not being distributed properly in-order to cover you debt you will most likely be rejected when you request to withdraw you funds from the trust company. They will claim that they are in charge of protecting both you and the debt consolidator and not just one of you as their reasoning.

Debt consolidation companies and trust companies that get involved with them know exactly what they are doing when they create these accounts. They know that it will be easy to move on or avoid paying back these funds, or that they will be able to justify how much is owed to them in fees. They also know that it is unlikely that the customer will be able to afford the court costs associated with being able to sue their company in order to acquire their lost funds. This really makes almost the perfect scam.

How can this nightmare be avoided? The answer is simple. Don't get involved with a debt settlement company that requires you to send them money to deposit in a "trust" account!

Melvin R. Singleterry, owner of is a practicing attorney who specializes in Consumer Debt Law including credit card debt negotiation, debt reduction and debt settlement, and unsecured debt relief. Singleterry, who holds Bachelor and Master of Arts degrees from Oklahoma State University and a Juris Doctor from The University of Oklahoma, has practiced in both State and Federal Courts. He has been a trial attorney in both civil and criminal cases and has served as a Court Appointed Trustee in Federal Bankruptcy Court. His practice has included criminal law, corporate law, contracts, personal injury, family law, and consumer law, etc. He has represented consumers, corporations, banks and financial institutions.

Funding An LLC - 4 Facts About Raising Capital For Your LLC

More and more people are starting to realize the importance of the small business. There is a new business entity that many of those individuals are considering as the foundation on which their company is to be built. Unfortunately, due to the relatively recent arrival of this business entity, many individuals aren't especially familiar with the limited liability company (LLC) and are often worried about finding an LLC. In this article, we'll discuss 4 facts about funding your LLC.

It is first important for us to realize that the entity to which we refer is a relatively flexible form of business. It easily blends various elements of both the partnership corporate structures. It is actually a legal form of the company that enables those individuals who are part of that entity to limit the extent of their liability. This liability is limited for each of the owners, at least in the vast majority of the jurisdictions in the United States. It is also important to realize that LLCs do not have to be organized for profit.

Individuals often incorrectly identifiy this entity as a limited liability corporation. However, LLC stands for "limited liability company." This is an unincorporated entity. Of course, like a corporation, the LLC does share the ability of a corporation to limit the liability for each of the individuals involved. In addition to its simplicity, this form of entity provides the ability to have "pass-through income taxation. Due to its flexibility, it is often much easier for a single owner to own and operate such an entity.

However, as is true with any business entity, it is important to understand that the liability offered is not complete. No individual will be relieved from "personal" liabilities. Furthermore, courts can and sometimes will "pierce the veil"of either a corporation or LLC if fraud is suspected.

Now let's discuss the facts about raising capital to fund your LLC. Naturally, the easiest way to raise capital to fund your project is to have other individuals join the LLC with you. Those individuals who would become part of that venture would contribute either cash or sweat equity, customarily, as a means of becoming a part of this particular group. The amount of liability borne between each of the individuals in that venture is customarily limited to the amount of their investment initially.

A second way in which an individual may seek funding is to look for investors who are interested in pursuing either the same or similar projects. In fact, it is not uncommon for individuals to get involved with joint ventures in an effort to assist those in a particular industry.

A third way in which individuals are able to fiund their LLC' is to look for any government grants that may be available to encourage individuals in that particular industry assist in furthering the government's goals. It is often helpful to seek advice from individuals at a local university who are familiar with grant proposals. This author would encourage you to steer clear of those online-specialist swho state that they will get you a grant for a specified fee.

A fourth way to obtain the capital that you seek is to perform services that will generate cash in exchange for the services rendered in a very rapid manner. Of course, this would be contingent on the industry in which you are involved. However, individuals who get involved in various endeavors (e.g., real estate), are often able to engage in such things as obtaining hard money loans to assist them for a short period of time and then findi individuals who are willing to actually purchase the property/product at issue.

There are in fact numerous ways in which individuals are able to find funding for their LLC. We have merely scratched the surface in this article. If you are in need of further assistance, you're encouraged to contact the Senior Corps of Retired Executives (SCORE). Another source of funding and assistance is the Small Business Administration.

Bank Credit Officers Increase Business

A credit officer plays a significant role in increasing the business of a bank. First of all, it is important to understand the job role. The loan officers, help companies and individuals get credit from the bank for various purposes. Start-ups, individuals and SME, need to be screened to ensure they qualify for the loan. Their backgrounds need to be checked for credit defaults. When a company needs start-up capital, or a running factory wants to buy more machines, they prepare the application with the help of the loan officer, who co-ordinates with supervisors to get the loan approval. The officer follows the bank's policy and procedures to ensure the high quality of the lending portfolio.

Another way a credit officer helps grow business is by calculating Allowance for Loan and Lease Loss Reserve for the bank's portfolio. In case the bank has had a sizeable profit, the credit officer can increase the total of the amount of money that falls in the lendable category.

Banks usually sell credit for the following:

House Purchase & Renovations
Cars
Machinery & Equipment
Education Loans
Small Business Start-ups
Personal Loans

A loan officer helps in the growth process of a bank by properly reviewing large loans before these are forwarded to the Loan Committee. At this stage, if the evaluations of the loan officer are accurate then the bank will make a profit on the sale, and vice versa.

Proper coordination with fellow workers and being a productive part of the team will help increase credit lending activity. Increased communication and understanding with bank management result in faster approvals on loan applications.

After a client calls or walks in with a loan requirement, it is the loan officer who takes the preliminary information and guides the client regarding various aspects linked with the process. The officer advises on various payment schedules and gathers required financial information. During this meeting client discloses assets that can be used as collateral. For personal loans, an employed person's salary works as collateral. Required documents are checked to ensure the client has the ability to pay back the loan in required installments.

Acquiring a loan is sometimes a complex process. The banks have stringent rules and a bank officer makes the process easy on the clients by providing guidance and support. With new banking loans in the offing, the credit departments get busy. Accuracy in evaluation of the loan application helps a bank grow in terms of revenue. Making easy and payable payment schedules will ensure that the loan is paid back in time thus making a profit for the bank.

The banking sector caters to clients at all levels of economic activities. The loan facility helps bring prosperity to individuals, as it increases economic activity. In the micro-finance sector there is still room for growth. For small and large businesses, introduction of invoice factoring and invoice discounting as a credit facility can help increase growth rate.

All in all, a credit officer can play an effective role in increasing the business of a bank, by performing all his duties in a diligent manner. Abiding by policy and procedures, making accurate evaluations and keeping increased communications with members of the team and clients will help the bank grow at a faster pace.

Hints To Find a Quality Debt Counsellor

Getting out of debt can be quite overwhelming and the last thing a person needs to worry about is whether or not their debt counsellor is actually going to help them or dig you into a deeper hole. Here are some important tips to make sure you that you made a wise choice by going with a debt counsellor rather than just filing bankruptcy or working out a settlement with your credit companies.
It's important to check out that they're a reputable company through the Better Business Bureau and it will help you gain some confidence in your decision. This is not a guarantee because they are one-sided with their information, only having access to filed complaints. If they're a new company, they may not have any cases against them. Nonetheless, this is the best place to start your search for a credible debt counsellor.
The other way to search out reputable debt counsellors is through word of mouth from previous clients. If they are confident in their service, the counselling company will not mind providing you information about their prior clients. Beware though, it could be false or inaccurate information. If they are actually a reputable company, there should be a release form that will allow them to provide you with information about other clients' experiences.
If the debt counselling company is near your neighbourhood, you may even have acquaintances that have used their services. Also consider background checking the company through the Attorney General's Office to ensure that the company you are considering has not done anything illegal or against the requirements of good standard business practices.
One hint: if the debt counselling centre is not willing to provide you with prior information about their successes and references, it is best to just move on and find a service centre that is willing to cooperate. Sometimes this gesture of refusal to provide references could mean they have something to try to cover up. Look for someone that is cooperative, honest and straightforward about their previous clients.
Another tip is to use the Internet search capabilities to find a debt counsellor. If a company has a poor reputation, more than likely, you can uncover information through a forum, blog, or social network. People often set up websites for the sole purpose of being able to post complaints about a company. But they can actually be quite helpful. Don't go based on one negative rating, but if there's a collection of poor ratings, consider another company. These people are more than likely ranting online because they were in fact treated poorly by a debt counselling business.
Use these tools wisely, but more than likely, if you are seeking out debt counselling, you probably don't have money just to throw away toward some fly-by-night business that may get you in deeper than you already are. Do whatever it takes to protect yourself against someone trying to scam you or promise you results that they can't accomplish. Keep in mind that if they really are a fly-by-night type of business, you won't be able to take them to court to collect damages if their company has dissolved.
Choose a company that will work in your best interest, is cooperative, has a great rapport with previous customers, has a record of those clients and truly is in the business with the sole mission to help you rather than rob you.

The author gives South African advice on finding debt counselling.

Hard Decisions and Smart Credit

We all make choices each day, decisions to take action, or to not take action, and even determining not to decide. Perhaps we don't want to consider long term ramifications of having questionable credit score after which down the road, it is inevitable that circumstances, while making themselves known to us, can be a defining moment. That moment while you say to yourself "Why didn't I care for this when I had the opportunity?" or "It might had been so easy and I chose not to take care of it."

If you are somebody who's letting time make a decision while you're going to get your credit repaired, you just might be setting yourself up for failure, disappointment, and misdirected anger. So, here you're reading this article and hoping for suggestion to take care of your credit score. Maybe you're hoping for a miracle, or most likely you're hoping it is going to all just pass away. It's not going away on its own, and the miracle is that you now have an easy tool to make use of to finally get your credit rating simply the place you will need it.

When massive choices and big commitments (buying a house or beginning your own business as a sole proprietor, for example) are in your future, the decisions you're making now will decide how much of a problem you care for later. Your choices now will decide which path you're going to take, the path of least resistance or the path of a lot of hassles and disappointments.

Go ahead, map out a plan for your self and observe the steps defined in this website. Plan on doing one thing every week, or every two weeks, or every day. It doesn't matter how you map out your plan because it's your plan, it is your life and it's your credit, so profit from this excellent device and just keep targeted for your goal.

An essential thing to bear in mind is to do something that matters everyday. Every little step takes you toward your big goal. As long as you are doing something that matters everyday then you're going to in the end get to your goal. If you don't seem to be moving ahead then you are moving backwards. Where you are in lifestyles is a chain of choices that you simply made. Imagine if you made productive and positive movements that matters on a regular basis of your life. Where could you be today? An example of a step could be to refinance your home so that you decrease your monthly mortgage payment each and every month. This one step can have a very long impact for your lifestyles because you must make a mortgage payment each month.

When it involves difficult decisions and good credit, perhaps the decisions are not so tough. Ask yourself if the decision that you're making will move you forward towards your objective of monetary peace or take you backwards. The decision is yours so make a decision in order to be a good idea to you for the long run.

Questions to Consider Before Applying for a Credit Card Program

Before you start shopping for an affordable credit card program, we encourage you to read the rest of this article. In the succeeding paragraphs of this piece, we have enumerated three important questions that you need to ponder on before you decide to apply for and take out a certain line of credit.

Three Questions to Think About

• Can I afford it? Before you sign up for a credit card - or for any credit program, for that matter - you need to consider first whether or not you can afford it. To do this, you should take your time examining your personal finances - your income, monthly expenses and your disposable income. After all, these three factors will determine if you have sufficient funds that you can allocate not only for paying back the purchases and bills that you will eventually charge on your line of credit, but also the fees and interest that will be imposed on your card account.

Should you discover that your personal finances can easily cover your monthly charges, then we give you the go-signal to apply for the credit card that you wish to use. Otherwise, you may need to postpone your plans until you become more stable, financially

• Am I qualified to manage a line of credit? You also need to determine the requirements imposed on the line of credit that you wish to take out. This way, you can check whether or not you will qualify for the credit card that you intend to apply for.

Remember that most card issuers today consider the financial capability, as well as the credit standing of their prospective cardholders. They use these factors to effectively screen their credit applicants and to easily identify who among their potential borrowers are worthy enough to receive the lines of credit they need.

With this information in mind, you can gauge your likelihood of being granted the credit card you need by examining your financial capability, as was discussed above. After this, you also need to order copies of your credit report so that you can determine what your current credit score is. At the same time, this activity will give you the chance to check if there are errors or outdated entries in your credit file that might possibly prevent you from qualifying for the card account that you wish to use.

• Is the card issuer accredited by the federal or state government? You also need to run background checks and personal investigations on your prospective card issuers. This is important for you to gain insights on the legitimacy of the operations of the firms that you intend do business with, as well as their working relations with their past and current cardholders. By employing this tip, you can boost your chances of finding a credit organization that is not only accredited by the federal or state government, but one that can also cater to your specific needs and preferences.

All About Debt Counseling Programs

No one really wants to have debts. It is financial situations (bad of course) that find many people estranged in debts they would surely not been able to get themselves out of. To many people, debts are an unavoidable evil. Sometimes, people find themselves in debt because they either spent their money frivolously and they have to get their lives moving by taking debts. Others (who are the majority) find themselves in circumstances that call for extra money which must come from taking debts. Whichever the circumstances, all these people need debt counseling. They need someone to show them how to spend according to their budget and most importantly, how to get themselves out of debt.

Debt counseling is all about instilling discipline into a person's spending habits. It is tailored in such a way that it makes all people with debts understand that debt is a symptom and not a problem. The person is also made to understand that to tackle it, he/she must reduce his/her spending habits and also find a way out to stop borrowing more and instead, concentrate on repaying more. At the end of the day, it is all about sacrifice to the debt owner's side. Debt counseling programs specialists also do a thorough check up on the debt owner's accounts so as to see the exact kind of advice that he/she deserves.

Some people are entangled in very bad debts such that to repay them, they need to have all their year's earnings dedicated to them. Others have debts they can surely not explain where they came from. The latter is the most worrying because they spend more than they are earning which means that at the end of the day, they might find themselves in a debt spiral which can be so hard to get themselves out. To be able to help such people and all debt owners alike, debt counseling programs advocate for a 'no borrowing to get out of debt approach'.

This is a very effective method as it not only streamlines the debt owner's spending habits, it also makes sure that if he/she makes attempts to borrow, it will be at cheaper rates and not rates that will become problematic for him/her to settle. Such people can highly benefit from getting loans say from friends who would not give very tough paying conditions. In such cases, there is hardly no interest to be re payed and if there is, it is definitely in small manageable amounts which the debt owner can no doubt repay.

Debt counseling programs provide the debt owner with advice which if taken, can help a great deal. For instance, they advice on effective communication between the lender and the debt owner. This makes both parties understand one another which is a positive step towards effective debt repayment. Other options include looking for grants from the various organizations that offer this kind of help to people with big debts or better still getting interest free social loans to help in repaying the debt. All said and done, debt counseling programs have and will continue offering refuge to debt owners who need a helping hand in resettling their debts.

Don't Get Talked Into Using A Bad Credit Repair Agency

It can be very seductive to hear someone tell you that they can solve all your debt problems if you just sign your name on the dotted line. And that is the large part of the allure of credit repair agencies that operate across the U.S.

Unfortunately, when it comes to delivering on their promises, credit repair agencies have a less than stellar reputation. In fact, at one time, their collective reputation was so bad that the federal government had to create the Credit Repair Organization Act in an effort to control some of the more egregious acts that these companies were engaged in.

Specifically, the act sets up certain rules that these agencies must abide by in order to stay on the good side of the law. Since it has been enacted it has not eliminated all of the shenanigans of the agencies, but for the most part it has helped to protect consumers from many of the deceptive advertising practices of the past.

One nice feature of the law is that these agencies cannot take any payment from you before they have actually performed work on your behalf. Also, the law provides for a cooling off period after signing the contract. You have three days to change your mind and nullify the contract if, after you think it over, you decide that it is not for you.

Many of these credit repair agencies have superior salespeople, and it's not unusual for one to convince you to sign a contract in the midst of the sales person telling them all the good things that will happen to them if they do.

In truth, a credit repair agency is rarely needed. Anything a credit repair agency can do, you can do just as well on your own. But it takes hard work and a lot of negotiation with creditors. Many consumers flock to credit repair agencies because they simply hate dealing with creditors and they hate negotiating.

If you are one of these people, then it can be well worth it to deal with an agency. Just be sure that the company that you are dealing with has a good reputation and is honest with you about what it can do.

Before signing with any agency, you should do two things. Contact the office of the Attorney General in your state to satisfy yourself that they have no legal actions against them. And, ask the agency for references of people with whom they have worked to reduce debt. And call these references to find out their experience with the company.

Credit Repair Companies - How To Find a Legit Service

Offers of a fast fix can be very enticing, but too many credit repair companies will promise this in their advertising and not fulfill their end of the bargain. As a result, many have earned a bad name. First and foremost, anything they can do, you can do as well. They can save you a great deal of time and stress; however, it is up to you to determine if the financial cost is worth the time and stress savings.

If you choose to use one of these businesses, there are a few legal technicalities of which you need to be aware. These will also help you to determine if the company is legitimate. First, you must be provided with a copy of the "Consumer Credit File Rights and Obligations" prior to signing a contract. Further, they must give you a written contract that specifically states your rights and obligations. This includes the fees and total cost, a detailed description of the services they have promised to provide, as well as the time frame in which they will work to achieve these results.

While the profession has earned a bad name, there are legitimate businesses out there. One way you can tell if they are legitimate is that they will never ask for you to pay for their services up front. The Credit Repair Organizations Act (CROA) says that they are not allowed to require payment prior to completion of the services they have promised. They also will clearly outline your rights, as well as inform you of the services they provide that you can do for free for yourself. They will never recommend that you do not contact any of the reporting bureaus directly. They also will never tell you that they can get rid of all of the negative information in your report, even if it is correct, or advise you to dispute all of the information in your file, regardless of its accuracy.

Further, some organizations that are not legitimate are even going so far as to ask their customers to commit fraud. They will advise you to invent a new financial identity by requesting an Employer Identification Number (EIN). They will then have you request your report using the EIN, instead of your Social Security Number. This is illegal because it is a federal crime to lie on an application, as well as to obtain an EIN under false pretenses. You can be prosecuted even though you were advised to complete these actions by a representative of the business.

If you choose not to use a professional, you might want to consider a counseling organization. Many are non-profit, but may still charge for their services. They can provide counseling concerning managing your debt, as well as budgeting, the very things that have most likely led you to need their services in the first place.

A Vitally Important Piece of Advice to All Women

Really? Vitally important? And what can this most important piece of advice be? Get your own credit rating established! I learned this the hard way when I got divorced after 23 years of marriage. Recently one of my clients -who is going through a divorce-was shocked when she was told she had no credit history. I now ask every woman who is in my coaching practice if she has established her own personal credit history.

Many women who married young and then find themselves single sixteen or twenty or more years later, find that they have no credit history if their credit card has been an extension of their husband's. Even if the woman was in charge of paying the bills, the monthly statements or the mortgage payment, it's the husband's credit rating that gets credited, not hers.

When this woman applies for her own credit card, it may be denied "because she has no credit history." Or she may be offered a "secure" pre-paid card, until she establishes her own credit. This card may be limited to $500.00 dollars and it might be a year before she is given a "real" one.

It is very convenient to have a joint bank account and have a credit card that is an extension of your husband or partner. No one wants to think of their relationship ending, but it does happen. Even if you have a wonderful relationship, and it is not ending, it is wise to have your own bank account and a credit card in your own name: you can subscribe to a magazine or put the gym membership on your card and pay it religiously when the statement comes in.

We live in a credit economy as opposed to a cash economy. You might want to start your own business or it might just be important that you feel in control of your own finances. Many of the discussions a couple have around money centers on one of them -A) spending more on personal items than the other -B) who then feels resentful and unhappy. One possible solution is that A and B each keep a predetermined amount of their income for personal use, and pool the rest. This amount is kept in their personal account and can be used with their personal bank card. Everything else is paid through the joint account and with the joint credit cards.

You are liable for the debt on your shared credit card, so you might as well be liable for your own credit rating. If you are interested in working through the emotional component of your money, finance and abundance issues, give me a call or send me an email.

© 2011 Patzia Gonzalez

Patzia Gonzalez-Baz has a Psychotherapy and Life Coaching practice in Newmarket, On; she specializes in using EFT, Emotional Freedom Techniques, to treat relationship issues, emotional components of pain, shock after a medical diagnosis, anger, anxiety, phobias, love pain, divorce; money, finance and blocks to abundance, as well as stressful changes in life, work or family. Patzia coaches clients from all over the world using Skype.

Free Debt Counseling

Everybody has had to use a credit card for something in their lives. Some individuals use their credit cards for emergencies only; others use their credit cards more freely. There is over $2.41 trillion in consumer debt in America and most of that debt is from credit cards. The average American household has over $15k in credit card debt, and there is a whole group of consumers that are way over their heads in credit card debt. Countless American consumers are dealing with unmanageable credit card debt and may feel like they have nowhere to turn.

Fortunately for these Americans there are many non-profit organizations that offer free tools, resources and advice to any consumer that are in trouble with their debts. These non-profit agencies that offer free debt counseling have been around since the 1950s and have saved numerous households from bankruptcy and from the grip of credit card debt.

What is Debt Counseling?

Debt counseling at its core is simply financial education. The original goal of the NFCC (National Foundation for Credit Counseling) was to spread financial literacy throughout the US in order to help consumers stay out of debt and bankruptcy. Now a day's credit counseling can go beyond educating consumers; now counselors are involved in analyzing a consumer's debt, setting up a sensible budget, and negotiating lower interest rates and fee waivers with creditors

What You Can Expect from Debt Counseling?

Always conduct your due diligence and make sure that you have found a credit counselor that has an excellent BBB (Better Business Bureau), outstanding customer reviews or testimonials and is an organization that you feel comfortable with. Once you have found a credit counselor that you like, you can expect a debt counselor to ask you a lot of questions in regards to your income, expenses and credit card debt. You are going to receive a great deal of information, resources, education and tools to help you find out how you got into debt, how to get out of debt and how to successfully set up a budget.

Your first session is also going to involve your counselor analyzing your financial situation. You should gather up three months worth of credit card bills, banking statements and reoccurring monthly bills. Be prepared to give your credit counselor all your information so they can properly assess your financial situation.

After your first counseling session, your counselor should be able to ascertain whether a counselor can help you or not. If the counselor feels that he or she can help your situation he is going to suggest that you enroll in their DMP (debt management plan).

The DMP

The debt management plan is used by credit counselors to assist in the reduction of debt for a consumer; it is utilized as a tool to help the counselor and consumer negotiate debt with a creditor. Once a consumer is enrolled in a debt management plan creditors will be contacted by the counselor to declare that they are enrolled in a DMP and the negotiation for lower interest rates, fee waivers and overall debt reduction can take place. A good credit counselor can lower an individual's debt load anywhere between 20%-to-50% and depending on the size of the debt can have the entire debt paid off in two to three years.

Even though the debt counseling is free, there is a suggested donation every month while enrolled in the debt management plan. It shouldn't be more than $75 a month but is well worth the investment, and on average the debt management fee is normally around $50.

Financial Independence

The goal of credit counseling is to educate the American consumer on personal finance and how to rid themselves of debt and give them the tools and resources to help them avoid ever getting in debt again. The road to financial independence is not going to be easy, you are going to need discipline, commitment and determination in order to succeed but that is a small sacrifice you're going to have to make to become financially independent.

Negotiating With Your Credit Card Company

Negotiating with Creditors

For some people zero is a beautiful number, especially when it used to describe the dollar amount of what you owe in credit card debt, but to get to that auspicious number it's going to take a lot of hard work and sacrifice.

As of July 11th, 2011 the national unemployment rate was at 9.2% and many economic experts are claiming that we are still in a recession so you mix that in with the rising consumer credit card debt in America that could spell trouble for a lot of US consumers. The average US citizen had around $14k in credit card debt, but on the high end there are millions of Americans that are suffering from excessive credit card debt so that journey to zero has become a tough one to start on.

Creditors don't especially like it when their customers start calling, and start trying to negotiate lower interest rates, and having fees waived but it's better than dealing with a charge off. Most credit card companies will try to avoid a charge off at all costs, because that directly affects their bottom line and does not look good to their investors or whoever is in charge of their books. The charge off is the last thing that a company wants to deal with, so even though don't exactly encourage consumers calling and trying to negotiate lower interest rates or getting their fees waived it's better than the alternative, which is a charge off, which is a credit card company's nemesis.

It Never Hurts to Ask

Jeff Palmer was trying to launch a marketing consulting startup, and he was racking up thousands of dollars in credit card debt to get the business of the ground, but once the credit crunch hit around 2009 his interest rates went up to above 20%. This rise in interest rates was making his financial situation almost completely unmanageable so he called the issuer to negotiate better terms for his debts. The creditor agreed to lower his interest rates down to 6%, but only if he agreed to close his accounts. He told the issuer that he would think about it but a week later B of A called him and said that they would lower it to 0% if Jeff agreed to close the accounts. Jeff jumped on this opportunity immediately, but if he never tried to inquire about better terms in the first place he would never had the chance to get a better deal.

A recent report just released showed that about 3 million people successfully negotiated better terms for their debt. So there is a growing trend of customers taking charge of their own financial futures by negotiating lower interest rates, waived fees, and better overall terms for their debt.

Time is of the Essence; Act Early

In this current economic downturn more and more creditors are striving to help their consumers when they get into a pinch, but you must act quickly. If you have a 30 day late on your debts, and you feel that your debt is becoming unmanageable it's important that you act quickly and contact your creditor to negotiate some sort of deal. Remember, these companies hate charge-offs and that's the absolutely last thing a creditor wants to do.

Many bigger creditors, like American Express, actually have a program in place to help with re-payment's of delinquent accounts (as do many other creditors), and many times, accounts will receive some sort of modification in favor of the consumer if you act quickly in the early stages of delinquency.

A consumer should be made aware of the down-side of a modification because some of these modifications can show up on a credit rating and can be viewed as blemish on a consumer's credit report. Especially if you are in the late stages of a delinquency, like a 90 or 120 day late, and a creditor forces the borrower to close the account that can be very damaging to your credit report.

So it's very important that you weigh out all your options and asses how much trouble you're in financially before you start negotiating with these companies.

CCC is an organization of accredited credit counselors who are very skilled at the art of negotiation with credit card companies. So if you feel that a professional credit counseling agency might be needed feel free to contact them immediately.

The Credit Card Trap - 2 Things to Watch For

Do you know how much the credit industry makes per year and; more importantly, how they make this money? The answers may surprise you, unless you're one of the few people who actually can understand the fine print. The banks and card-issuers take in early $170 billion before expenses, three-quarters of which comes from the steadily-rising interest rates they charge us for not paying off the credit each month. In short, if everybody paid their credit-bills on time, the industry couldn't subsist on the remaining billions of dollars, a sizable fraction coming from the late fees and overdraft charges so many of us incur.
While the above charges are understandable - and even acceptable, as the cost of doing business - there are a few other credit-card practices that should leave you indignant. Did you know that...
1 - If you bank at the same place from which you got your credit card, and you end up defaulting on your credit balance at some point, the bank can possibly extract money from your account to pay off the presumably unrelated credit-card balance (presumably as in, you didn't sign up for that option). Usually their claim to be able to do this is in the legal mumbo-jumbo fine print that requires a magnifying glass and a law degree to decipher, so your best bet is simply to be mindful: call the bank and ask the representative direct questions. You don't ever want to give them this ability, so beware.
2 - This one I like to call the "Grace-period change-up", in reference to my favorite sport, baseball. The worst part of the change-up is the reasoning behind it; or, rather, what it seems the credit card company is trying to accomplish by doing it. If you have say 29 days to pay off your credit card bill before interest is applied, and you've been consistently paying off all your balances on time, some credit companies will change the grace period from 29 suddenly to 25, often before you are aware of it. The devious thing is that this never/rarely happens to people who consistently pay interest by carrying their balance month-to-month. It's almost like the credit companies are trying to trip you up. No; it's exactly like they're trying to trip you up! You've been a responsible customer (and thus, a bad customer) and aren't gaining the company any money. With this one, you must call and demand that they return the grace period to its previous figure - trust me, it works. You could also just avoid the companies that engage in this practice.
Taking Control of the Reigns
Navigating the credit card industry can be time consuming for most of us, as we have working lives unrelated to it. Thankfully, there are just a few overarching rules about which to be mindful, and the rest of the stuff will more or less fall into place. Never hesitate to pursue any nagging questions by directly calling a bank representative; being informed is absolutely the best way to go to take control of your finances.

Solving Your Personal Debt Crisis

Have you financially over-extended yourself to the point where you can no longer keep up with your debt? Perhaps you have lost your well-paying job and are now trying to live on unemployment benefits. You have been running yourself ragged trying to locate another job, but the opportunities are few. You may have to settle for employment that pays you a fraction of what you used to earn, and you know you just can't make it on those lower wages. Meanwhile, your creditors are calling and demanding payments that you just don't have. No amount of explaining is getting you anywhere-they simply want their money, and they will continue to call and harass you until you do something about it.
Can you work with these creditors on your own? Well, you can certainly try, but chances are you really won't make much progress. You don't have the training or the expertise needed to deal with these people, and many creditors are quite adept at intimidating those who owe money. Your best option is to let a professional credit counselor speak on your behalf, and you can do this once you decide to take your financial troubles to a credit counseling agency. This service will be able to accomplish far more, and in a much shorter time than you would should you attempt it on your own. If you have debt that is more than you can handle, a credit counselor can help reduce it for you by negotiating a lower rate of interest.
Once the counselor has evaluated your situation, he or she will discuss what options you have, and how you can begin to get your debt and other obligations under control. It may be suggested that a debt management program is the best way for you to go. What this means is that all your unsecured debt can be consolidated into one sum, and you would be required to make one payment each month that will be dispersed equally to each creditor. Unsecured debt would include all your credit cards, any personal loans, credit accounts at department stores, and any medical bills you may have. This does not include your home mortgage payments or vehicle loans you may have, or anything else you have supplied collateral for.
Participating in the debt management program means that your credit counselor will negotiate a lower rate of interest for you which will result in a lower, more manageable payment. Most of the money you pay right now goes toward interest, which is why it takes literally forever to pay off that credit card debt. Once most of your payment is applied to the principle, the payoff time is greatly reduced. Many people become free of this debt in as a little as three to five years. That's not bad considering you might have been paying for thirty years at minimum payment rates. Of course, all situations are different, and this program may not be the one for you. Your counselor will have other options and suggestions should the debt management program not fit your needs.
If you do choose this particular program, you must be informed that your overall credit scores may be adversely affected to some degree. It may also result in a negative result if you try to get additional credit while you are in the program, apply for a vehicle or home loan, or obtain some other type of financing. It is better to stick with the confines of your budget, make your monthly payment, and wait until the program is finished and you are debt free before you try to rebuild your credit. Your personal counselor will explain all the details to you before you make the decision to participate. He or she will go over in detail all the stipulations and benefits of a debt management program, and then leave the final decision to you. If you come to the conclusion that this really is your best option, the counselor will then contact your creditors to let them know that you are entering into the program, negotiate on your behalf, and make arrangements for you to set up an account to make the monthly payment that is due. This really is a great way for people to pay off their debt and know that they will be financially free in a very short number of years.