Thursday, May 27th, 2010
In part one in these series of articles I wrote about potentially shady debt consolidation schemes that you should be on the lookout for. Read on to find out more:….
Meanwhile, your creditors are going without being paid. Unluckily, while you are collecting that payment, you aren’t paying your bills and you may be sinking lower and lower into debt.Instead of taking this gamble check out a nonprofit credit counseling firm that may charge you only twenty dollars, if anything. Instead of billing the debtor, these counselors will typically get what is called a fair share percentage payment from your creditors after you have been paid.
Finally, and most importantly, DON’T invest your trust in the debt consolidation counselor who tells you that “We will handle everything. You should cease all communication with your creditors.” Even though the fact that the idea of not speaking to creditors and ignoring their mail sounds like a real load off of your back, ultimately, it is your debt and your credit score at hand. Never send in a change of address form directing all creditor mail to a debt settlement company. Read more...
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Monday, February 8th, 2010
With various accounts, debts, interest rates hitting you at once, your financial situation can very well seem intimidating. But if you follow this program you will find that there is an effective and safe way to manage your money.
The only thing this simple calculation needs the interest rates for each debt account. This is assuming that all debt accounts have the same tax liability, but if not, you can find your interest rate after taxes for this calculation.
Your first step is to put your debts in order; highest interest rate to lowest. You’ll most likely find credit cards at the top of this list. Retail credit cards offered by stores generally have the highest interest rates, so you might find this type of credit card on the top. Make sure that the rates did not fluctuate from the promotional rates that you originally signed up for. Card issuers can change your interest rates at any time. They are supposed to give warning, but you may not receive this warning.
Your home equity loans and your mortgage might be the next debts on the list. It’s crucial that you include every debt for which you make a monthly payment in your calculations. Student loans might be the last on the list. Read more...
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