Bankruptcy - only if you must

Deep in debt and don't know what to do or where to turn? Before you contemplate bankruptcy, you must get your information together before you decide on any course of action and carefully consider your options.

Under the United States Constitution, Article 1, Section 8, 'The Congress shall have the power'To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States.' Cases are handled in bankruptcy courts in the 94 United States and U.S. Territories judicial districts.
The purpose of bankruptcy law stated by the Supreme Court in 1934 is to give an honest debtor a start over without worrying about previous debt. Under Title 11 of the United States codes, there are six kinds of bankruptcy case:
Chapter 7 - The simplest and easiest bankruptcy proceeding, it is usually called straight or liquidation bankruptcy. It can be used by individuals and businessmen.
Chapter 9 ' This is for municipalities.
Chapter 11 ' This is most often used by businesses, but it can be used by individuals
Chapter 12 - This is used by fishermen and family farmers
Chapter 13 - It is a bankruptcy in which debts are reorganized but not forgiven. It is used both by businesses and also by people who have a regular source of income.
The process of bankruptcy is determined by the Federal Rules of Bankruptcy Procedure (Bankruptcy Rules) and the local rules of each bankruptcy court. Most of the details of a bankruptcy case are handled away from the court. Under chapter 7, 12, 13, and sometimes chapter 11 bankruptcy; administrative details are handled by the trustee appointed to the case, and you will not even see the bankruptcy court. In chapter 11, all you have to do is appear at a meeting of your creditors. Chapter 13 bankruptcy may require a meeting with the bankruptcy judge to confirm debt repayment plans.
Individuals most commonly used chapter 7 and chapter 13 bankruptcy. Under chapter 7, all your assets are transferred to an estate managed by a trustee appointed by the U.S. Trustee Office who then pays your creditors. Under chapter 13, a debt repayment plan is created and debts are paid over a three to five year period.
Not all debts can or will be discharged under bankruptcy. It varies according to the chapter of the Bankruptcy Code. When a debt is discharged, it means you don't have to pay the debt. Once it is discharged, the creditor cannot take any form of action to collect the debt. The length of time it takes to get debts discharged depends on the type of bankruptcy filed for. A chapter 7 bankruptcy is the quickest. Since other chapters include a payment schedule, the time varies accordingly.

Bankruptcy is definitely the last think you want to do to straighten out your finances. If you can't figure out any other solution to get out of debt, investigate the different chapters of bankruptcy and determine which will affect you the least and benefit you the most.

It sounds like you have a bad credit situation and clearly you need help. It's available at this indepth website www.badcreditovercome.com

Credit Guide

Bad Credit Scams

If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:

• companies that want you to pay for credit repair services before they provide any services.
  
• companies that do not tell you your legal rights and what you can do for yourself for free.
  
• companies that recommend that you not contact a credit reporting company directly.
  
• companies that suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.
  
• companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
  

You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.
Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.

[Extracted from the FTC website on Credit Reports]

Don't be afraid of your creditors - talk to them

Contact your creditors immediately if you’re having trouble making ends meet. Tell them why it’s difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level. Don’t wait until your accounts have been turned over to a debt collector. At that point, your creditors have given up on you.
Dealing with Debt Collectors: The Fair Debt Collection Practices Act is the federal law that dictates how and when a debt collector may contact you. A debt collector may not call you before 8 a.m., after 9 p.m., or while you’re at work if the collector knows that your employer doesn’t approve of the calls. Collectors may not harass you, lie, or use unfair practices when they try to collect a debt. And they must honor a written request from you to stop further contact.

[From the FTc Publication "Knee Deep in Debt"]

Credit Repair Scams

The Warning Signs

If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:

• companies that want you to pay for credit repair services before they provide any services.
  
• companies that do not tell you your legal rights and what you can do for yourself for free.
  
• companies that recommend that you not contact a credit reporting company directly.
  
• companies that suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.
  
• companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
  

You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.
Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.

The Truth

No one can legally remove accurate and timely negative information from a credit report. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost. According to the Fair Credit Reporting Act (FCRA):

• You’re entitled to a free report if a company takes adverse action against you, like denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft.
  
• Each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — is required to provide you with a free copy of your credit report, at your request, once every 12 months.
  The three companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report. To order, click on annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You can print the form from ftc.gov/credit. Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time. For more information, see Your Access to Free Credit Reports at ftc.gov/credit.
  Otherwise, a consumer reporting company may charge you up to $9.50 for another copy of your report within a 12-month period.
  
• You can dispute mistakes or outdated items for free. Under the FCRA, both the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under this law, contact the consumer reporting company and the information provider.

[From the FTC. ]

Credit Guide at http://www.badcreditovercome.com, a resource site for anyone suffering from bad credit problems.

A Fresh Start

Personal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far reaching. People who follow the bankruptcy rules receive a discharge — a court order that says they don’t have to repay certain debts. However, bankruptcy information (both the date of your filing and the later date of discharge) stay on your credit report for 10 years, and can make it difficult to obtain credit, buy a home, get life insurance, or sometimes get a job. Still, bankruptcy is a legal procedure that offers a fresh start for people who have gotten into financial difficulty and can’t satisfy their debts.

There are two primary types of personal bankruptcy: Chapter 13 and Chapter 7. Each must be filed in federal bankruptcy court. As of April 2006, the filing fees run about $274 for Chapter 13 and $299 for Chapter 7. Attorney fees are additional and can vary.

Effective October 2005, Congress made sweeping changes to the bankruptcy laws. The net effect of these changes is to give consumers more incentive to seek bankruptcy relief under Chapter 13 rather than Chapter 7. Chapter 13 allows people with a steady income to keep property, like a mortgaged house or a car, that they might otherwise lose through the bankruptcy process. In Chapter 13, the court approves a repayment plan that allows you to use your future income to pay off your debts during a three-to-five-year period, rather than surrender any property. After you have made all the payments under the plan, you receive a discharge of your debts.

Chapter 7 is known as straight bankruptcy, and involves liquidation of all assets that are not exempt. Exempt property may include automobiles, work-related tools, and basic household furnishings. Some of your property may be sold by a court-appointed official — a trustee — or turned over to your creditors. The new bankruptcy laws have changed the time period during which you can receive a discharge through Chapter 7. You now must wait 8 years after receiving a discharge in Chapter 7 before you can file again under that chapter. The Chapter 13 waiting period is much shorter and can be as little as two years between filings.

Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments and utility shut-offs, and debt collection activities. Both also provide exemptions that allow people to keep certain assets, although exemption amounts vary by state. Note that personal bankruptcy usually does not erase child support, alimony, fines, taxes, and some student loan obligations. And, unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep property when your creditor has an unpaid mortgage or security lien on it.
Another major change to the bankruptcy laws involves certain hurdles that a consumer must clear before even filing for bankruptcy, no matter what the chapter. You must get credit counseling from a government-approved organization within six months before you file for any bankruptcy relief. You can find a state-by-state list of government-approved organizations at www.usdoj.gov/ust. That is the website of the U.S. Trustee Program, the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees. Also, before you file a Chapter 7 bankruptcy case, you must satisfy a “means test.” This test requires you to confirm that your income does not exceed a certain amount. The amount varies by state and is publicized by the U.S. Trustee Program at www.usdoj.gov/ust.

[Published by the Federal Trade Commission]

Credit Guide

The Not-A-Millionaire guide to financial security

Forget rich for a moment. Think solvent.

By Jeanne Sahadi, CNNMoney.com senior writer

June 15, 2006: 4:21 PM EDT

NEW YORK (CNNMoney.com) – Who doesn't want to be rich? But let's face it, getting rich gets hard very fast if one or more of the following conditions applies:

• You're not an investment banker or venture capitalist.

Top things to know Good debt vs. bad debt Three examples of good debt Borrowing for other expenses Loans to pay credit cards Managing your debt Getting your credit reports

Money Tools Savings calculator Get out of debt Ideal budget

• You're trying too hard to live like one.
• You went ahead and had the cutest darned kids.
• Like me, you persist in living in one of the highest-cost, highest-taxed places in the country.

Being financially secure, however, isn't out of the question. And once you achieve that, you've laid the groundwork for living well.

In fact, there's no point thinking about rich until you figure out how to get – and stay – solvent.

Solvency doesn't have anything (or at least not much) to do with how much you make. Any financial planner will tell you they've had high-income clients who, given free rein, spend themselves into the ground.

Broadly speaking, solvency means being able to meet your financial obligations. How solidly solvent you'll be depends on how you define "meeting your financial obligations." You may be able to pay the minimum on your credit card bill, but being able to pay off the whole balance every month reduces your financial risk.

For long-term solvency, though, you'll need more than just enough to pay your bills today. You'll need protections in place to keep you solvent when a costly crisis hits.

Otherwise, "solvency can be very fleeting," said USAA certified financial planner June Walbert.

To make sure you're the only thing fleet-of-foot in your life, here are four ways to lay a solid financial foundation.

Build a cushion

For life's pricey annoyances, there isn't MasterCard. There is an emergency fund.

It's a hassle to build if you don't have one, but you'll be glad you did next time your transmission sputters or your boss hands you a pink slip.

Walbert recommends setting up a high-yielding money market account dedicated exclusively to emergency money.

To fund it, besides curbing spending where you can, you might deposit:

• A bonus or financial gift from a relative

• A small amount from your paycheck every month – ask your employer to direct deposit it.

• Money you get back from a flexible spending account, a transportation reimbursement account or an insurance claim.

• An extra paycheck. If you're paid every two weeks, you'll get 26 paychecks a year. So in some months you'll get three instead of two. If your fixed monthly expenses don't change, you might be able to set aside one paycheck a year.

Live on less than you make

Earmark at least 10 percent of your gross income for retirement savings – which can be invested pre-tax in a 401(k) at work or in other tax-deferred savings vehicles.

Then live on 90 percent of your take-home pay and bank the rest for shorter-term savings goals like a down payment or vacation.

If you can swing it (it will be harder to do in areas with high housing costs - I know, I live in New York), don't let your debts (including mortgage or rent, credit card bills, loan payments, etc.) exceed 36 percent of your gross income, less if possible.

Adopt a pay-go, pay-off strategy

With a few exceptions, don't charge more than you can afford to pay off in full every month. Ideally, the only debt you should carry from month to month should be mortgage debt and student loan debt, the interest on which may be deducted on your tax return and which represent investments that can pay off later (your home and your education).

For new college grads who can't afford to pay outright to furnish their first place, Walbert suggests asking the furniture store if there is a 0-percent interest policy for one year. Then be sure to pay off the entire amount charged before the year is out. Otherwise, you'll get hit with deferred interest.

Pay off high-interest credit card debt as soon as possible, diverting some of the money earmarked for savings if need be to do it, Walbert said. It makes little sense, she noted, to pay 15-plus percent interest on credit card debt when you're only earning between 4 percent and 8 percent on your savings.

Take cover

A health crisis can be a fast lane to debt if you don't have health insurance. But so, too, can long periods of disability unless you have disability insurance.

At a minimum, you want to have short-term disability benefits covering 100 percent of your gross pay for three months, and at least 60 percent to 70 percent of your pay for longer term disability. (This is typically what employers provide for their employees.)

If you're the main breadwinner in your family, Walbert suggests bumping up your long-term disability payments as close to 100 percent of your pay as possible. (Insurers aren't likely to offer policies that cover the full 100 percent, she said.)

As for life insurance, if you're the main breadwinner and have young kids, you might consider getting a term life policy – which is less expensive than whole life -- worth 7 to 10 times your annual salary, or whatever your calculate your kids will need to get them through college and what your surviving spouse will need until then and thereafter.

For car owners, Walbert recommends liability insurance on top of collision insurance for your car. Liability protects you in case you injure someone and wreck their vehicle.

And for renters, she recommends renters' insurance, which can cover the cost of your assets and liability in case someone injures himself in your home.

(USAA, it should be noted, sells insurance products. But Walbert does not and recommends clients shop around for the best policy.)

---------------------

Jeanne Sahadi writes about personal finance for CNNMoney.com. For comments on this column or suggestions for future ones, please e-mail her at everydaymoney@cnnmoney.com.

The Not-A-Millionaire guide to financial security

Forget rich for a moment. Think solvent.

By Jeanne Sahadi, CNNMoney.com senior writer

June 15, 2006: 4:21 PM EDT

NEW YORK (CNNMoney.com) – Who doesn't want to be rich? But let's face it, getting rich gets hard very fast if one or more of the following conditions applies:

• You're not an investment banker or venture capitalist.

Top things to know Good debt vs. bad debt Three examples of good debt Borrowing for other expenses Loans to pay credit cards Managing your debt Getting your credit reports

Money Tools Savings calculator Get out of debt Ideal budget

• You're trying too hard to live like one.
• You went ahead and had the cutest darned kids.
• Like me, you persist in living in one of the highest-cost, highest-taxed places in the country.

Being financially secure, however, isn't out of the question. And once you achieve that, you've laid the groundwork for living well.

In fact, there's no point thinking about rich until you figure out how to get – and stay – solvent.

Solvency doesn't have anything (or at least not much) to do with how much you make. Any financial planner will tell you they've had high-income clients who, given free rein, spend themselves into the ground.

Broadly speaking, solvency means being able to meet your financial obligations. How solidly solvent you'll be depends on how you define "meeting your financial obligations." You may be able to pay the minimum on your credit card bill, but being able to pay off the whole balance every month reduces your financial risk.

For long-term solvency, though, you'll need more than just enough to pay your bills today. You'll need protections in place to keep you solvent when a costly crisis hits.

Otherwise, "solvency can be very fleeting," said USAA certified financial planner June Walbert.

To make sure you're the only thing fleet-of-foot in your life, here are four ways to lay a solid financial foundation.

Build a cushion

For life's pricey annoyances, there isn't MasterCard. There is an emergency fund.

It's a hassle to build if you don't have one, but you'll be glad you did next time your transmission sputters or your boss hands you a pink slip.

Walbert recommends setting up a high-yielding money market account dedicated exclusively to emergency money.

To fund it, besides curbing spending where you can, you might deposit:

• A bonus or financial gift from a relative

• A small amount from your paycheck every month – ask your employer to direct deposit it.

• Money you get back from a flexible spending account, a transportation reimbursement account or an insurance claim.

• An extra paycheck. If you're paid every two weeks, you'll get 26 paychecks a year. So in some months you'll get three instead of two. If your fixed monthly expenses don't change, you might be able to set aside one paycheck a year.

Live on less than you make

Earmark at least 10 percent of your gross income for retirement savings – which can be invested pre-tax in a 401(k) at work or in other tax-deferred savings vehicles.

Then live on 90 percent of your take-home pay and bank the rest for shorter-term savings goals like a down payment or vacation.

If you can swing it (it will be harder to do in areas with high housing costs - I know, I live in New York), don't let your debts (including mortgage or rent, credit card bills, loan payments, etc.) exceed 36 percent of your gross income, less if possible.

Adopt a pay-go, pay-off strategy

With a few exceptions, don't charge more than you can afford to pay off in full every month. Ideally, the only debt you should carry from month to month should be mortgage debt and student loan debt, the interest on which may be deducted on your tax return and which represent investments that can pay off later (your home and your education).

For new college grads who can't afford to pay outright to furnish their first place, Walbert suggests asking the furniture store if there is a 0-percent interest policy for one year. Then be sure to pay off the entire amount charged before the year is out. Otherwise, you'll get hit with deferred interest.

Pay off high-interest credit card debt as soon as possible, diverting some of the money earmarked for savings if need be to do it, Walbert said. It makes little sense, she noted, to pay 15-plus percent interest on credit card debt when you're only earning between 4 percent and 8 percent on your savings.

Take cover

A health crisis can be a fast lane to debt if you don't have health insurance. But so, too, can long periods of disability unless you have disability insurance.

At a minimum, you want to have short-term disability benefits covering 100 percent of your gross pay for three months, and at least 60 percent to 70 percent of your pay for longer term disability. (This is typically what employers provide for their employees.)

If you're the main breadwinner in your family, Walbert suggests bumping up your long-term disability payments as close to 100 percent of your pay as possible. (Insurers aren't likely to offer policies that cover the full 100 percent, she said.)

As for life insurance, if you're the main breadwinner and have young kids, you might consider getting a term life policy – which is less expensive than whole life -- worth 7 to 10 times your annual salary, or whatever your calculate your kids will need to get them through college and what your surviving spouse will need until then and thereafter.

For car owners, Walbert recommends liability insurance on top of collision insurance for your car. Liability protects you in case you injure someone and wreck their vehicle.

And for renters, she recommends renters' insurance, which can cover the cost of your assets and liability in case someone injures himself in your home.

(USAA, it should be noted, sells insurance products. But Walbert does not and recommends clients shop around for the best policy.)

---------------------

Jeanne Sahadi writes about personal finance for CNNMoney.com. For comments on this column or suggestions for future ones, please e-mail her at everydaymoney@cnnmoney.com.

I promise you

…That you can get a mortgage with bad credit. And this despite an adverse credit score.

But don’t kid yourself, it’s not easy and you must approach it as a job. First off, take a good hard look at your credit score. There are plenty of sites online offering free credit reports. Get yours right away. Without it, you are flying blind. Make sure there are no adverse situations shown which are downright wrong and get them corrected. No, it’s not impossible to get correction but this is one more excellent reason to change your ways and start keeping accurate records and saving all supporting paperwork.

OK – so you’re going to apply for new credit. Stop! For a few months, don't open or close any more accounts. If you do, you will lower your score. Work on debt reduction and if you can, transfer some of your balances to existing accounts with lower interest rates.

To give yourself the best shot, keep all payments up to date, maximize cash or near cash assets and endeavor to improve income. Even a recent bankruptcy can be dealt with in this manner and overcome with a solid paln and hard work over time. So get started!

For the most part, you will need six months cash reserves for getting a no down payment loan. The lower your debt-to-income ratio is the better.

Last but not least, get the right online lender to take your application. Here you need to do a lot of homework. Ask the lender for references and follow them up by calling people that have dealt with this lender. Rates and fees charged for below prime home loans vary widely. The only way to find the best deal is to be diligent about your online homework. Get a number of quotes to make adequate comparison.

The estimates that you receive should include closing costs and fees involved. You must understand everything about the structure of the loan before acceptance.

The most important factor is not getting approved but what you will pay. Make sure that you consider all available options, including the down payment, if any. Lenders are more than willing to work with your situation, regardless of your credit history but the field is not without a good sprinkling of “shysters”. So watch your back and be diligent! You owe it to yourself to use caution.

Tim Moss

The Credit Guide who publishes key data for those with high debt who

want to straighten out their finances at http://www.badcreditovercome.com

Organize to be effective!

Suddenly, the word “finances” has become a regular part of our

speech. We as a society and as individuals are learning the

importance of finance and monetary strategy as it applies to our personal lives.

The role played by money has become more and more important as we

realize that we can no longer afford to let the chips fall where they may.

The organization of our financial resources has become key to successful

money management. Grappling finally with the root causes of our bad credit status, we can see for the first time what has to be done to extricate ourselves from the clutches of the unscrupulous.

The best way to begin organizing your finances is by creating and keeping an effective budget. Two important concepts here – keeping track of your money – the sources of income and timing of income, the targets of spending and its timing and an effective system of controls over spending. A disorganized mess will contribute to your rating as a bad credit risk and will prevent you from a methodical correction of your situation. Not only that but even bad credit loans will not be available to help in the process.

Before you do anything else devise a list of categories of both income and expense.

Give this some thought before accepting a predetermined list from one of the bookkeeping software or services. They’re OK but you need to construct a plan for your spending broken down by your primary segments not someone else’s. You will have a good starting point for each budget category if you start tracking what you currently spend. Look at your checkbook stubs. What? You haven’t balanced your checkbook in a while? Then start there even before you make the budget. In doing so you will gain a better appreciation of just where the money is really going. More importantly, you are beginning to convert your bad credit history to good credit.

It’s human nature. As soon as you track how much you spend you will inevitably recognize what’s been happening and begin an automatic curbing of the outgo.

You need to know everything about the flow of your money and get ready to rethink what you have been considering essential. You have to be the master of all this. You can’t send the partner out on a shopping expedition without a detailed plan and agreed to limits.

Here are some rules of thumb for the wise use of limited resources:

• 35% - Housing - Spend no more than 35% of net income on

housing which includes mortgage or rent, utilities, insurance, RE taxes and home maintenance.

• 20% - Transportation - Spend no more than 20% of net income on transportation. That includes car payments, auto insurance, licenses, maintenance, gasoline (currently a big ouch for all of us) and parking.

• 15% - Debt – You are probably over this one but no more than 15% of net income should go on all consumer debt: student loans, retail installments contracts, credit cards, personal loans and other loans or lease agreements.

• 10% - Savings - Save at least 10% of income throughout your working life.

(this should be an integral part and foundation of your plan)

• 20% - Other - Spend no more than 20% of net income on all other expenses: food, clothing, entertainment, child care, and medical expenses.

To help you get your finances more organized it is important to incorporate some useful tools that will make everything you do concerning your finances easier. These

will help you overcome the normal challenges that face people when they try to keep a budget. Using personal financial management tools, (many are free or shareware), will

make your budgeting a lot easier. You don’t have to have accounting training to use these and you only need a commitment and a personal discipline to get your self back on track.

You know what – after a few weeks of this, you’ll be mighty pleased with yourself and the family as you recognize the benefits of getting your financial affairs in good day to day working order.

Good luck!

Credit Guide

Big Brother is watching you!


Read today in the new York Times: More than a third of American companies with 1,000 or more workers say they employ people to read through other employees' outbound e-mail. And nearly half of those companies regularly go through outbound e-mail in search of rule-breaking, according to a recent survey of 294 companies done by Forrester Consulting for Proofpoint, a maker of e-mail security products.

You need eyes in the back of your head

Credit Guide

WARNING! What will they try next...?

Suzi Turner of Spyware Warrior tells of emails received following a scan of her computer at one of the anti-virus sites. They looked like this:

Advertisement

Dear Valued Customer:

Thank You for using Active Scan.

During the process of scanning your computer, we discovered:

0 viruses found

0 files infected

This means your computer is in serious danger. You are running a risk of losing vital information or infecting other computers to which you connect. However, if you act quickly, these problems can be avoided.

To prevent these kind of risks (vendor's name removed) offers a solution that eliminates all threats that could affect your PC.

Please don't fall for this kind of idiocy! Whatever next?

Credit Guide

There is help out there!

[These links are for UK Borrowers only] [US debtors - yup we'll cover you next!]

Here are resources to help you in your quest to deal with the crushing load of debt that is dragging you down. Start right now by calling the National Debt Line - telephone based free advice on dealing with debt issues. This website also has an extensive list of links to organisations which may be able to help. You can call them free on 0808 808 400.

Debt Related Websites

• Debt Advice Bureau - useful commercial information about debt issues.
• FCL Debt Clinic - reputable advice from an organisation linked with a range of Citizen's Advice Bureaux, Employers, and Trade Unions.
• A few debt statistics at Compare Personal Loans.
• Debt Zone - useful advice on debt related issues, including warnings about financial services such as hire purchase, loans, and credit cards.
• Debt Questions - a very useful question and anwer based site about debt issues.

Credit Guide

All kinds of information at this site http://www.badcreditovercome.com

An excerpt from Bad Credit Mortgage Lenders - Finding An Online Lender, an article by Carrie Reeder

....Today, the internet makes applying for a bad credit mortgage easy and convenient. Before, savvy buyers had to contact several lenders by phone or in person to request quotes. This process was time consuming and exhausting. Through online mortgage lenders, your application is immediately reviewed and approval notifications are provided within hours.

Advantages of Bad Credit Mortgage Financing

Bad credit is not a life-long curse. Those who are determined to improve their credit rating can do so by applying for new lines of credit, and establishing an excellent payment history. If you are looking to purchase a new home, now's the time to begin fixing your credit....


Read the rest of this article and many more at www.badcreditovercome.com

Bad Credit Second Mortgages


This post is by Rebecca Game, Founder of Digital Women:


Many business owners fall on hard times at one point or another in their business career, or even prior to owning a business. Instances like this may occur due to medical bills or because of smaller bills that have become difficult to pay on time, or even pay at all. Whatever the reason, credit scores are affected by hard times and the inability to pay bills on time.

A good way to recover is to consider a bad credit second mortgage loan. Home ownership and home equity are required in order to qualify for a bad credit second mortgage. If you haven't borrowed any money against the home for several years, you probably have enough equity to qualify for a bad credit second mortgage loan. While the process for getting a bad credit second mortgage loan may be difficult, the payoffs can be extremely advantageous.

Advantages of a Bad Credit Second Mortgage Loan

- A bad credit second mortgage loan can offer lower interest rates on high interest bills. If credit card bills are something you contend with every month, a bad credit second mortgage loan can offer a lower interest rate. Monthly payments on a bad credit second mortgage are generally lower than what you'll pay on high interest bills.

- Financing a bad credit second mortgage loan offers a "break" from payments. It is generally true that when you finance a bad credit second mortgage loan, you have a 30-day period of no payments on the loan. This can be of tremendous assistance, especially if the loan is used to pay off other bills. Consult with your lender to verify.

- The interest may be tax deductible. Ask your lender and tax preparation consultant to verify, but the interest on your bad credit second mortgage loan may be deductible on federal income taxes.

Disadvantages of a Bad Credit Second Mortgage Loan

- Interest rates are high. Because the lender will view you as a high risk, interest rates tend to be higher on bad credit second mortgage loans than on loans for those with good credit ratings. If the loan is used to pay off bills, consider the all facts. For example, the interest on the bad credit second mortgage loan is lower than high interest credit cards, allowing you to pay off the amount owed much faster.

- Obtaining a bad credit second mortgage loan can be a time consuming and exhausting task. Financial institutions are leery of working with individuals and businesses with bad credit, thus, obtaining a bad credit second mortgage can be very difficult.

Bad Credit Second Mortgage Loans: Where To Start

1. Check your credit scores with the three credit reporting agencies: Equifax, Transunion, and Experian.

While you may be able to obtain your credit report at no charge, there may be a fee involved to have your credit report mailed to you. If your scores are above 550, chances are fairly good that you'll be able to obtain a loan. Individuals with credit scores that are lower than 550 may have added challenges in finding a financial institution to approve a bad credit second mortgage loan.

If your credit scores are below 550, review your credit reports carefully. Request errors on the reports be removed. Work to resolve outstanding bills. Bring payments current on existing bills.

2. If you've continuously worked with a financial institution over the years, apply with that institution first for your bad credit second mortgage.

If the bank or financial institution knows you well as a customer and understands your circumstances, they may approve your bad credit second mortgage loan.

3. Consider a mortgage broker for obtaining a bad credit second mortgage loan. A mortgage broker, or mortgage agency, will be able to review your application and have access to hundreds of different lenders willing to approve a bad credit second mortgage loan. A mortgage agency or broker will also be able to tell you your credit scores, and if they're too low to get a loan, they will be able to advise you on how to bring the scores up so that your bad credit second mortgage loan can be approved.

Most importantly, be patient. Lenders need time to consider high-risk loans. Plan on two to three months or longer to obtain a bad credit second mortgage loan. Keep the advantages in mind, and continue to build your credit scores.

About the author:

Rebecca Game is the founder of Digital Women ®, an online community for women in business. A 30 year entrepreneur, dedicated to helping other women.



There are more answers for those with troubled credit at http://www.badcreditovercome.com

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